Questions_and_Answers__2_11_Jan_2019.pdf

FA822419R0012

F-35 IN LINE CHILLER AND AUTO WINDING HOSE REELS

QUESTIONS AND ANSWERS #2

11 January 2019

1- Please define the payment terms for CLIN’s 0004, 1001, 2001, 3001, and 4001. According to FAR 52.216-7, Allowable Cost and Payment, the contractor would be reimbursed for actual payment for items or services purchased directly for these CLINS. It also makes reference to establishing an indirect cost rate, which would include all indirect expenses, G&A, management labor, financing, etc. Will indirect costs be added to direct costs to determine overall “cost”, meaning the “fixed-fee” we are bidding should contain no overhead or miscellaneous costs?

ANSWER: Correct, The estimated cost for the CLIN’s would include both estimated indirect and direct costs which is the estimated cost and the fixed fee is to be stated separately and will exclude any indirect/direct costs. The fixed fee is typically based on the estimated costs.

Proposals must include the realistic total estimated cost and a fixed fee. Ex. “Estimated Cost:

$__ Fixed Fee: $_______ Total Line item cost: $__________”

2- Please elaborate on how the government intended to make an award based on “Lowest Price

Technically Acceptable”. Will the winning bidder be determined by the sum total of all base bid and bid option CLIN’s? Does the “estimated cost” play any factor in the decision, or it is based on the “fixed fee” only?

ANSWER: Pricing will be evaluated on Total Evaluated Price which includes all firm fixed price

CLIN’s, and CPFF CLIN’s which includes both estimated cost and fee. Estimated cost and fixed fee will both be stated then added together for calculation in the Total Evaluated Price or “Total

Proposed Price” for the base year and all options. See revised Section L. Cost realism will be used to evaluate the CPFF CLIN’s to ensure proposed costs are realistic for the work to be performed and reflect a clear understanding of the requirements IAW FAR 15.404-1(d).