Q A 12 Jan 12.doc

Questions and Answers B-1 Advance Radar/Electronic Warfare Test Station (ARTS)

Request for Proposal (RFP) FA8533-11-R-31160

12 January 2012 The following questions have been received in the WR-ALC/GRVKBB, Major Programs Contracting Office on the above ARTS requirement. The questions as well as the applicable answers are provided below for assistance to all potential offerors for the greater understanding of the Government’s requirement.

Question 1: As a result of Amend 0003, will the Government be issuing a revised Section B to fully include the added SubCLINs 0005AC and 0005AD and to correct the ELIN reference and the units of issue?

Government Response: The Government does not intend to issue a revised Section B. Offerors shall include the pricing of SubCLINs 0005AC and 0005AD within Amendment 0003. As noted on all three amendments, each one is to be signed and returned with the offeror’s proposal. The changes incorporated via amendments to the RFP will be included within the resultant contract.

Question 2: The current payment terms appear to be in severe tension with both the FAR Part 12 “Commercial Item” provisions and those sections of the FAR applicable to non-commercial item procurements. In response to a previous question, the Government stated in its 16 Dec 11 Questions and Answer posting the following:

“The “Interim Payment” clause on page 137 of the solicitation was written in accordance with the guidance in FAR 32.104 relative to performance based payments in commercial contracts.”

Notably, however, by its own terms, Subpart 32.1, which includes section 32.104, applies only to non-commercial items and is labeled “Non-Commercial Item purchasing Financing.” It cannot therefore serve as the basis of the payments clause.

Government response: The company asserts that the Government's reference to FAR 32.1 in the "Questions and Answers" regarding the payment clause (posted to the FBO on 16 December 2011) was in error. The company's assertion is incorrect. The "Interim Payment" clause in RFP FA8533-11-R-31160 adheres to the requirements in FAR 32.2, Commercial Item Purchase Financing in both intent as well as content. Note that the policy of FAR 32.2 allows for the techniques and procedures from non-commercial subparts to be utilized with commercial contract financing.

Per FAR 32.202-1(a), "It is the responsibility of the contractor to provide all resources needed for performance of the contract. Thus, for purchases of commercial items, financing of the contract is normally the contractor's responsibility. However, in some markets the provision of financing by the buyer is a commercial practice. In these circumstances, the contracting officer may include appropriate financing terms in contracts for commercial purchases when doing so will be in the best interest of the Government." After extensive consideration, the Government determined commercial contract financing, and thus the procedures in FAR 32.204, to be in the best interest of the Government. As such, the Government exercised its authority per FAR 32.202-1(c) which states the Government may adapt techniques and procedures from the non-commercial subparts for use in implementing commercial contract financing arrangements. The non-commercial financing technique utilized in the drafting of the Government-specified commercial interim payment clause is the performance-based payments technique discussed in FAR 32.104(d) and FAR 32.10.

The "Interim Payment" clause in the subject RFP was specifically written and tailored to the B-1 ARTS requirement, and serves to assist both the contractor and the Government. By means of the clause, the contractor is afforded the opportunity to receive periodic payments while adequate security is provided to the Government via the performance measurements identified therein. There will be no change to the "Interim Payments" clause in the RFP nor, correspondingly, to the "Evaluation Basis for Award" provision to allow the proposal and negotiation of financing terms.