31Jan08.doc

QUESTIONS AND ANSWERS

RFP FA8530-08-R-21758

31 Jan 08

Question: Regarding Clause H-910, how will the average subcontractor rate be established? Will it be a linear average for all subcontractor rates per category, or will it be a weighted average based on those rates and the contractor identified percentages of work share among all subcontractors? Also, do the prime contractor rates play into this average?

Answer: This clause is being revised via RFP amendment to be released in the immediate future, to state as follows: “Prime contractors will not be allowed to add additional F2AST subcontractors in any labor category in which the proposed labor rates exceed the median F2AST subcontractor labor rate that was incorporated at initial contract award for that particular labor category for that particular prime contract.

Question: What is the correct methodology for determining the average F2AST Subcontractor Labor Rate Incorporated at initial contract award for a particular labor category? (Reference Clause H-910; page 29 of 110). Is it a standard average as shown below?

Subc1 Subc2 Subc3 Subc4

Lbr Cat XYZ

$100 $50 $60 $150 = $360/4 = $90 average rate

Or does the Labor Weighted Distribution in the "Prime Contractor Pricing Submission - Attachment 9" affect the calculation? If so please explain. Lastly, the Prime Contractor" rate is not included in the calculation, correct?

Answer: As stated in the answer provided above, the average will not be used. The Government will use the median subcontractor labor rate. The labor weighted distribution will not be used in this calculation. The Prime Contractor’s rate will not be included in the calculation of the median rate.

Question: How is the “average F2AST subcontractor rate” calculated? Does it consider the Labor Workload Distribution Percentages?

Answer: See answer provided above.