DVT SIR - DRAFT Section B - Supplies or Services and Prices Costs - Clean.pdf

PART 1 – SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

Screening Information Request (SIR) 693KA8-23-R-00001

B-1 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

B.1 General

The Distance Measuring Equipment (DME), Very High Frequency Omnidirectional Radio Range (VOR), Tactical Air Navigation (TACAN) (DVT) Sustainment Contract is a Single Award, Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract for the personnel, facilities, development, qualification, acquisition, and implementation of the DMEs, VORs, and TACAN Systems as set forth in Section C, Statement of Work (SOW). The Contractor must provide, in accordance with (IAW) issued Delivery Order (DOs)/Task Orders (TOs), all Systems, ancillary items, personnel, and facilities necessary to perform the requirements on an IDIQ basis.

B.2 Base and Optional Ordering Periods

The Contract has a five year-base ordering period and three 5-year optional ordering periods, for a total of 20 years if all options are executed. DOs/TOs may be issued at any time during the base and/or option period. The specific performance periods will be specified in the DO/TO and may include option periods. For more details, see Section F, Deliveries or Performance.

The Contract Line Item Number (CLIN) and Sub CLIN structure for this contract is provided in Table B-1 below. All efforts under this Contract will be ordered and invoiced in accordance with this CLIN/Sub CLIN structure and performed in accordance with the Statement of Work and individual DOs/TOs.

For each CLIN/Sub CLIN, the “x” denotes the Ordering Period and the following three digits identify the type of work (e.g., 0001 is Program Management in the Base Period, 1001 is Program Management in the first Option Period, etc.).

The CLIN/Sub CLIN structure for each DOs/TOs issued under the contract will be set up at the time of issuance of the DO/TO. DOs/TOs issued under this contract will be awarded using various contract types, depending upon the requirement(s).

B-2 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

Table B-1 – Generic Contract Line Item Structure

CLIN Sub

CLIN1

Contract Line Item Number (CLIN) Description Ceiling Amounts2 x001 Program Management To be determined at task order level x002 Requirements, Design, and Development To be determined at task order level x002D Production Materials – DME To be determined at task order level x002CV Production Materials – CVOR To be determined at task order level x002DV Production Materials – DVOR To be determined at task order level x002T Production Materials – TACAN Transponder To be determined at task order level x003 Test & Evaluation To be determined at task order level x004 Training To be determined at task order level x005 Development Materials – First Articles (4xDME, 4xCVOR, 4xDVOR, 4xTACAN Transponder)

To be determined at task order level x006 Production Materials To be determined at task order level x006D Production Materials – DME To be determined at task order level x006CV Production Materials – CVOR To be determined at task order level x006DV Production Materials – DVOR To be determined at task order level x006T Production Materials – TACAN Transponder To be determined at task order level x007 Production/Implementation To be determined at task order level x007D Production/Implementation – DME To be determined at task order level x007CV Production/Implementation – CVOR To be determined at task order level x007DV Production/Implementation – DVOR To be determined at task order level x007T Production/Implementation – TACAN Transponder To be determined at task order level x008 Logistics To be determined at task order level x009 RESERVED To be determined at task order level x010 RESERVED To be determined at task order level x011 Operations & Maintenance (F&E) To be determined at task order level x012 Spares (F&E) To be determined at task order level x013 Operations & Maintenance (OPS) To be determined at task order level x014 Spares (OPS) To be determined at task order level x015 Travel NTE x016 Other Direct Costs (ODC) NTE x017 Fee To be determined at task order level

All DOs/TOs will use one or more of the above CLINs, but individual DO/TO CLIN substructure will be based upon the specific requirements of the DO/TO.

The ceiling and funding allocations between CLINs on DOs/TOs are estimated distribution values that are not to be exceeded without the approval of the Contracting Officer (CO). The Government reserves the right to realign funding between CLINs via modification.

1 Sub CLINs are established for the purpose of separating the DVT Systems.

2 These are estimated costs that are not to be exceeded without the prior approval of the Contracting Officer.

B-3 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

B.3 Indefinite-Delivery/Indefinite-Quantity (IDIQ)

a) The Contract is structured and administered by the rules of DO/TO contracts, specifically, DO/TO awards issued against the Contract will be placed using the procedures described in Section G – Contract Administration Data.

b) The types of DOs/TOs issued against the Contract may include Cost Reimbursement, Time and Materials (T&M), Labor-Hour (L-H), or Firm Fixed Price (FFP) CLINs, in accordance with Acquisition Management System (AMS) Procurement Guidance T3.2.4, Types of Contracts, and as outlined in Section G, Contract Administration Data, and Section I, Contract Clauses.

c) IDIQ, Blanket Purchase Agreements and Letter Contracts are not permissible DO/TO types under the Contract. Orders for which DVT Systems and ancillary support services outcomes are not the principal purposes are not permissible DO/TO types under the Contract.

d) DOs/TOs may include options as defined in AMS Procurement Guidance T3.2.4, Types of Contracts.

B.4 Maximum Contract Limitation

DOs/TOs may order vastly differing quantities under differing Tasks and Labor Categories (see AMS Contract Clauses 3.2.4-16, Ordering (October 2019) and 3.2.4-20, Indefinite Quantity (October 2019)), but in no event will the aggregate value of all DOs/TOs issued against this contract exceed $_TBD for all Periods.

B.5 Guaranteed Minimum Quantity of Work

The Government guarantees that it will order at least $100,000.00 of work (the “Minimum Guaranteed Value”) during the term of this contract (the “Minimum Order Guarantee”). The Government has fully met the Minimum Guarantee once the aggregate dollar value of the DOs/TOs placed on this contract equals or exceeds the Minimum Guaranteed Value. The Government has no obligation to issue DOs/TOs to the Contractor beyond the minimum guaranteed amount. The exercise of any optional ordering periods does not reestablish the contract minimum guaranteed amount.

B.6 Contract Pricing

The following section describes pricing requirements for Cost Reimbursement, T&M/ L-H, and FFP CLINs. DOs/TOs may have multiple CLIN types.

B.6.1 Cost Reimbursement Pricing

All cost-reimbursement type TOs provide for payment of allowable incurred costs. These

B-4 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

contracts establish an estimate of total cost for the required work and establish a ceiling that the Contractor may not exceed (except at its own risk) without the CO’s approval. Cost-reimbursement contracts are appropriate when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed-price contract.

All work performed on a Cost Reimbursement basis will be priced IAW the Contractor’s accounting policies and procedures. For Cost Reimbursement work, the Contractor will provide complete supporting schedules identifying all applicable direct and indirect rate estimates building up to the DO/TO cost. Contractors should submit their most recent Defense Contract Management Agency– or other Government Agency–recommended provisional or forward pricing indirect billing rates, if available. Contractors without audited rates must propose indirect rates IAW AMS Contract Clause 3.3.2-1, FAA Cost Principles. The fee, if applicable, will be negotiated for each DO/TO, based on the work required. There will be no fee allowed on other direct costs.

AMS Procurement Guidance T3.2.4 provides for payment to the Contractor of a negotiated fee that is fixed at the inception of the contract. The fee is a fixed dollar amount. For cost plus fixed fee Level of Effort (LOE), the fee is determined by the LOE performed. The fixed fee may vary by a predetermined amount or percentage of the total fixed fee available based on the LOE, but not cost incurred. The fixed fee does not vary with the actual cost of the contract but may be adjusted as a result of changes in the scope of work performed under the contract.

If the DO/TO is incrementally funded, the CO will identify in all awards and modifications the portion of funding allocated to the fee.

B.6.2 Time and Materials/Labor-Hour Pricing

a) Ceiling Rates for T&M and L-H Work

Attachment J--, Labor Rate Tables for Time and Materials/Labor Hours, specifies the maximum fixed hourly rate that the Contractor may charge under T&M and L-H work under this Contract. All work performed on a T&M or L-H basis will be subject to the maximum labor rates set forth in Attachment J--. The labor rates in Attachment J-- reflect fully burdened hourly rates for each labor category and will apply to all direct labor hours regardless of whether the labor hour is expended by the Contractor or by one of its subcontractors. The labor rates in Attachment J-- include direct labor and all applicable indirect costs, such as fringe benefits, overhead, General & Administrative, and fee/profit. These fixed hourly rates are ceiling (maximum) rates the Contractor and their subcontractors may charge the FAA for each labor category in each given performance year. The Contractor may elect to propose lower hourly rates on a DO/TO-by-DO/TO basis.

The rates in Attachment J-- are based on the Contractor’s established accounting practices for recording uncompensated overtime. These practices are reflected in the table.

B-5 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

b) No Change to Rates if Subcontractors are Added or Deleted

The fixed hourly labor rates in Attachment J--, Labor Rate Tables for Time and Materials/Labor Hours, represent the ceiling (maximum) hourly rates the Contractor may charge the FAA for each labor category in each given performance year. The fixed hourly labor rates in Attachment J-- will not change after the contract award, even if the Contractor removes a subcontractor or adds a new subcontractor to its team.

c) Government versus Contractor Sites

The following describes Government and Contractor Site Rates:

1. Government Site Rates: Government site rate must be used when a Contractor employee is located at a government site full time.

2. Contractor Site Rates: Contractor site rate must be used when a Contractor is located at a Contractor site full-time. The Contractor should identify its practice for charging overhead for employees who telework full time. This should be placed at the end of the Contractor Site Rates.

d) Hours on T&M/L-H Task Orders

For T&M– or L-H–type TOs, the quantity of hours ordered from each labor category will be specified as deliverable hours billable at the ceiling rates specified in Attachment J--, Labor Rate Tables for Time and Materials/Labor Hours, or at lower rates, if proposed by the Contractor, for the DO/TO. The CO may authorize adjustments between labor category quantities of up to 10 percent within the established task labor ceiling price.

Reimbursement under the contract is governed by AMS Contract Clause 3.3.1-5, Payments Under Time-and-Materials and Labor-Hour Contracts (October 2021).

Work under these CLINs/Sub CLINs will be performed as prescribed by the DO/TO. For purposes of this provision, labor hours are defined as actual work hours exclusive of vacation, holidays, sick leave, and any other absences.

Only those labor categories indicated in Attachment/Section J-- will be charged to this contract. The functional descriptions, education, and experience requirements for these labor categories are provided in Section J--.

Hours estimated in a DO/TO are based upon the Contractor working a 40-hour work week. IAW Contract Clause AMS 3.3.1-5, if no overtime rates are provided in Section J, and they are required for overtime work that is approved in advance by the CO, then overtime rates will be negotiated. If Section J provides rates for overtime, the premium portion of those rates will be reimbursable only to the extent the overtime is approved by the CO, Contracting Officer Representative (COR)/Task Order Representative (TOR) in writing in advance.

B-6 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

e) Materials

Materials are defined in AMS Procurement Guidance T3.2.4, Types of Contract.

Indirect costs allocated to any direct materials and other direct costs must be proposed consistent with the Contractor’s accounting practices.

The cost of general-purpose items required for the conduct of the Contractor’s normal business operations are not allowable direct materials in the performance of DOs/TOs under this contract. See also Section G and Section H for additional limitations on materials and mandatory support documentation. Profit or fee is not allowed on materials under a T&M–type TO.

f) Travel (All Order Types)

All Contractor travel must be authorized in the DO/TO and specifically approved by the CO or COR/TOR in writing before travel commences. The Contractor will be reimbursed for travel expenses IAW FAA policy and AMS Contract Clause 3.3.2-2, Reimbursement for Travel and Subsistence (April 2010), and as prescribed in Section G.11, Travel. Profit or fee is not allowed for travel costs. Indirect costs may be applied to travel IAW the Contractor’s usual accounting practices.

B.6.3 Firm Fixed Price (FFP) Pricing

For FFP-type DOs/TOs, the quantity of each item or labor category ordered will be multiplied against the rate listed in Attachment J--, or as negotiated for the DO/TO. The cumulative extended total of all items ordered will define the FFP for the DO/TO.

B.7 Rate Refreshment

The labor rates in Attachment J--, Labor Rate Tables for Time and Materials/Labor Hours, are fixed for all Contract Operating Periods; however, the Contractor may propose new labor rates before the CO exercises an option period. The Government will review these proposals and determine if the revised rates are reasonable and in the best interest of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into Attachment J--.

B.8 Additional Labor Categories

Additional labor categories under Attachment J--, Labor Categories Descriptions, are not anticipated. However, given the dynamic nature of the SOW and the duration of this Contract, emergency or unforeseen circumstances may necessitate the addition of labor categories throughout the period of performance. Additional labor categories may be proposed by the Contractor or the Government. These labor categories must be determined to be reasonable and necessary by the Government to perform the work required by the Contract. These labor

B-7 | P a g e S e c t i o n B

“This contract may contain information considered sensitive unclassified information (SUI) and would merit protection from unauthorized disclosure under 5 U.S.C, Section 552(b)(4). No information shall be released except as authorized by the Contracting Officer.”

categories must be added at the Contract level, not the DO/TO level. The CO will also perform a scope determination to ensure that the additional labor categories are within the scope of this Contract before modifying the Contract to include those additional labor categories.

Additional labor categories may not be added at the TO level. Any labor rates invoiced or otherwise charged by the Contractor that are not IAW the agreed-upon labor rates on Attachment J-- of the Contract may be subject to rejection at the TO level at the CO’s discretion.

B.9 Labor Subject to the Service Contract Labor Standards (SCLS)

In accordance with AMS T.3.6.2.A.9, Service Contract Labor Standards (January 2022), all contract labor categories supporting the DVT requirement correspond to bona fide executive, administrative, or professional employees, who will perform professional services generally exempt from the SCLS. The DVT base contract does not include all applicable flow-down clauses for labor categories subject to the SCLS.

If the principal purpose of a task order is to furnish services in the United States through the use of service employees and to the extent that any labor is subject to the SCLS and within scope of a DVT task order and the DVT contract, the Contractor must identify the applicable labor categories and Occupational Codes and apply wages in accordance with AMS 3.6.2-28, Service Contract Labor Standards (October 2020). The Contracting Officer will identify such work under a separate CLIN on the order and include in the task order the applicable Wage.

Determination and the most recent version of all appropriate AMS clauses, including AMS 3.6.2- 28, Service Contract Labor Standards (October 2020), AMS 3.6.2-46, Paid Sick Leave Under Executive Order 13706 (January 2022), and AMS 3.6.2-47, Minimum Wages for Contractor Workers Under Executive Order 14026 (January 2022).

B.10 Work Outside the Continental United States (OCONUS)

It is anticipated that there may be DOs/TOs under this contract that may require work OCONUS (e.g., Alaska, Hawaii, etc.). If work is performed at a FAA/Government facility outside the United States, the onsite fully burdened rates located in Section J-- will be used. If the work is performed at a Contractor facility, the offsite fully burdened rates located in Section J-- will be used.

END OF SECTION B