Global Advisory_RFP_SECTIONS_B_-_M - Final Draft.docx

Table of Contents

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 OVERVIEW

The Department of State’s (DOS), Bureau of African Affairs, Office of Regional Peace and Security (AF/RPS) and Bureau of Political-Military Affairs, Office of Global Programs and Initiatives (PM/GPI) and Office of Security Assistance (PM/SA) have ongoing needs for Professional Support Services to provide advisory and reporting services globally with a focus on Sub-Saharan Africa. Weak or non-existent security sectors represent significant obstacles to sustainable development and democracy. The development of professional partner nation security forces rooted in the rule of law and accountable to civilian oversight are critical to reducing threats to the United States. Legacy services performed under AF Advisory I (Contract ID: SAQMMA16R0197) and PM/GPI (Contract ID: 19AQMM19R0193) will be consolidated into a new IDIQ: Global Advisory, which is the subject of this contract.

As further defined in Section C, the Contractor shall, under the Global Advisory contract, provide Professional Support Services that will include but will not be limited to the following activities:

1. Provide advisory services to Host Governments, security force units, security organizations in OCONUS locations, as defined at the Task Order level;

2. Provide Site Coordinator Services, to monitor and observe Contractors and grantees at locations to be determined at the Task Order level;

3. Provide logistical pre-deployment and support services and life-support for all personnel performing under this contract;

4. Provide detailed reports to AF and PM, as required by Data Deliverables at the Task Order level;

5. Assist AF and PM in planning and facilitating conferences, workshops, and other engagements;

6. Provide qualified professional service employees to meet the mission objectives of AF and PM.

B.2 TYPE OF CONTRACT

(a) This is an indefinite-delivery, indefinite-quantity (IDIQ) contract, as defined in Federal Acquisition Regulation (FAR) 16.504 (Indefinite-Quantity Contracts).

(b) This contract is for non-commercial items.

(c) Specific tasks or work to be performed will be identified at the task order level. (Note: Because the Government anticipates that the majority of performance under the contract will be for services, “task order” is used predominantly throughout this contract. However, the Government reserves the right to issue delivery orders, also. Where a contract term or condition references “task order,” such term or condition shall also apply to “delivery order.”)

(d) The Government intends to utilize firm-fixed-price (FFP), as defined in FAR 16.202, task orders to the maximum extent practicable. However, the Government reserves the right to issue task orders utilizing any of the contract types, or a combination thereof, authorized by FAR part 16 (Types of Contracts).

(e) If a task order will be performance-based, as described in FAR subpart 37.6 (Performance-based Acquisition), its requirements will be conveyed and administered at the task order level.

(f) This is a non-personal services contract, as defined in FAR 37.101. Inherently governmental functions, as described in FAR 7.503 or by the ordering agency, are prohibited under this contract. The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. The Contractor shall manage its employees and guard against any actions that are of the nature of personal services or give the perception of personal services. The Contractor shall notify the Contracting Officer immediately if it perceives any actions that constitute personal services. This contract shall not be used to perform any inherently governmental functions.

B.3 MINIMUM AND MAXIMUM CONTRACT QUANTITIES

(a) The Government shall meet the contract minimum, as defined in FAR 52.216-19. The contract minimum quantity will be $25,000 (inclusive of all direct costs, indirect costs, and profit/fee) per IDIQ contract. The minimum quantity shall be considered satisfied when the Contractor receives $25,000 in task order performance during the life of the IDIQ contract. Each IDIQ contract will be funded with $25,000 at award to avoid any Anti-deficiency Act (31 U.S.C § 1341) violation.

(b) The Government shall meet the contract minimum ordering as defined in FAR 52.216-18. The minimum ordering quantity will be at least one (1) task order within the performance period of the IDIQ. Task order responses shall comply with task order instructions to be eligible for award. This determination will be at the discretion of the Contracting Officer. The exercise of a contract option or extension period does not re-establish the minimum ordering quantity. If the Contractor has not received at least one (1) task order, the Contractor has a maximum of 60 calendar days after the expiration of its contract, or termination for the Government’s convenience, to request the minimum quantity in writing from the Contracting Officer. Termination for cause eliminates the Contractor’s entitlement to the minimum quantity.

(c) The Government shall meet the contract maximum as defined in FAR 52.216-19 The maximum quantity for the IDIQ’s period of performance, including any extension(s), shall be any quantity or combination of supplies and services not exceeding $1,500,000,000 (inclusive of all direct costs, indirect costs, and profit/fee). The maximum quantity is cumulative among all contracts. Any order issued during the effective period of this contract and not completed within that period shall be completed by the Contractor within the time specified in the order. The contract shall govern the Contractor’s and Government’s rights and obligations with respect to that order to the same extent as if the order were completed during the contract’s effective period; provided, that the Contractor shall not be required to make any deliveries under this contract after [insert date].

B.4 NOT-TO-EXCEED (NTE) FULLY-LOADED HOURLY LABOR RATES

(a) This section applies to labor-hour arrangements (i.e., task orders or line items in a task order), the time portion of time-and-materials arrangements, and when negotiating the fixed price under fixed-price arrangements.

(b) The following table displays the negotiated not-to-exceed (NTE) fully-loaded hourly labor rates for a 48-hour workweek:

CLIN

Labor Category

Base Year

(c) The labor category description for each labor category identified in Sections B.4(b) and (c) is located in Section H.7.

(d) The negotiated NTE fully-loaded hourly labor rates are in United States currency.

(e) The negotiated NTE fully-loaded hourly labor rates apply only to individuals who have legal status to work in the United States of America (e.g., United States citizens, United States resident aliens, and individuals with permits showing authorization to work in the United States).

(f) Fully-loaded hourly labor rates for host-country/local nationals and third-country nationals, if applicable, will be negotiated at the task order level.

(g) Each negotiated NTE fully-loaded hourly labor rate consists of an unloaded hourly labor rate, any labor-related direct costs (e.g., direct fringe benefits, direct bonuses), applicable indirect costs, and profit amount. It does not include any other costs.

Any other costs that are part of the Contractor’s established compensation plan and consistent with FAR part 31 shall be allocated as an ODC (other direct cost) (under fixed- price and cost-reimbursement arrangements) or as a Material (under time-and-materials arrangements) at the task order level. Examples of such costs, if applicable, that shall be allocated as an ODC or Material, are post hardship differential pay and danger pay.

(h) Any costs included in the negotiated NTE fully-loaded hourly labor rates shall not be charged elsewhere under this contract.

(i) At the task order level, the Government will specify and/or allow the Contractor to propose the labor categories required for a given task order’s performance. Contract-specified categories shall be used when applicable.

(j) At the task order level, the Contractor will be given an opportunity to propose fully-loaded hourly labor rates that match or are lower than the respective negotiated NTE fully-loaded hourly labor rates. The Contractor will be paid only at fully-loaded hourly labor rates that are equal to or are less than the respective negotiated NTE fully-loaded hourly labor rates.

(k) The fully-loaded hourly labor rates awarded as part of an individual task order will apply only to that task order.

(l) The fully-loaded hourly labor rates awarded as part of an individual task order will also apply to any equitable adjustment to the task order.

(m) The following describes the normal workweek for Contractor and subcontractor employees:

1) A normal workweek falls within a consecutive seven-day period.

2) The negotiated NTE fully-loaded hourly labor rates apply to a normal workweek of 48 hours.

3) A normal workweek of 48 hours is based on performance of eight hours per day multiplied by six days per week.

4) A normal workweek of 48 hours applies to performance outside the continental United States (OCONUS).

5) If the normal workweek for an individual task order differs from a 40-hour or 48-hour normal workweek, both parties will negotiate labor rates based on the normal workweek for the individual task order. Such negotiated rates will apply only to that task order, unless additionally negotiated into the contract.

(n) The negotiated NTE fully-loaded hourly labor rates apply only to the labor categories specified in Sections B.4(b) and (c). Any additional labor categories will be specified and their associated labor rates will be negotiated at the task order level. Additional labor categories and associated labor rates awarded for an individual task order will apply only to that task order, unless additionally negotiated into the contract.

(o) For labor-hour arrangements and the time portion of time-and-materials arrangements, the Government will pay the awarded fixed fully-loaded hourly labor rate and only for performed labor that meets the labor qualifications specified in the contract and/or individual task order.

(p) For labor-hour arrangements and the time portion of time-and-materials arrangements, labor hours for each labor category will be paid at the same awarded fixed fully-loaded hourly labor rate regardless of whether the individual performing the labor works (either as an employee or consultant) for the prime contractor or a subcontractor.

(q) For labor-hour arrangements and the time portion of time-and-materials arrangements, the Government will pay the awarded fixed fully-loaded hourly labor rates multiplied by the respective actual incurred hours that the Contracting Officer determines allowable, pursuant to FAR 52.232-7 (Payments under Time-and-Materials and Labor-Hour Contracts).

(r) For labor-hour arrangements and the time portion of time-and-materials arrangements, if a Program Manager, who normally works in the continental United States under a 40-hour normal workweek, is temporarily on task order assignment outside the continental United States where the normal workweek is 48 hours, the Government will pay a maximum of 48 actual incurred hours per week for the Program Manager’s OCONUS performance as long as the Contractor compensates the employee for all actual incurred hours. Payment of the OCONUS performance shall be made at the NTE fully-loaded hourly labor rate or a discount of the NTE fully-loaded hourly labor rate negotiated in this section for a 48-hour normal workweek; the specific rate shall be negotiated at the task order level. This paragraph’s methodology shall also apply to any future labor category for which labor rates are negotiated for multiple workweeks.

(s) For labor-hour arrangements and the time portion of time-and-materials arrangements, the Government will pay the negotiated fixed fully-loaded hourly labor rate minus ___% (to be inserted at contract award) attributable to profit for those hours the Contractor incurs when replacing or correcting services or materials [reference FAR 52.246-6 (Inspection – Time-and-Material and Labor-Hour)].

(t) For arrangements when payment is made not based on actual costs incurred (e.g., firm-fixed-price), each awarded fully-loaded hourly labor rate will be fixed for the period of performance to which it applies, regardless of whether the rate applies to a performing prime contractor or subcontractor employee who has legal status to work in the United States of America, who is a third-country national, or who is a local national. The Government will not consider a request for equitable adjustment or claim associated with a desired change to such rate.

(u) For direct labor costs under arrangements when payment is made based on actual costs incurred (e.g., cost-reimbursement arrangements, materials portion of time-and-materials arrangements, and progress payments based on costs under fixed-price arrangements), the Government will pay the actual incurred unloaded hourly labor rates multiplied by the respective actual incurred hours, subject to the Contracting Officer’s allowability determination, pursuant to FAR 31.201-2 (Determining Allowability).

(v) Government payment of indirect costs under cost-reimbursement arrangements, materials portion of time-and-materials arrangements, and progress payments based on costs under fixed-price arrangements is described in Sections B.5 and B.6.

B.5 PROVISIONAL BILLING INDIRECT COST RATES

(a) This section applies to cost-reimbursement arrangements (i.e., task orders or line items in a task order), materials portion of time-and-materials arrangements, and any progress payments based on costs under fixed-price arrangements.

(b) The following table displays the negotiated provisional billing indirect cost rates:

Indirect Cost Rate Description Negotiated Provisional Billing Indirect Cost Rate

Allocation Base

Contractor Fiscal Year Period

To be inserted at contract award

(c) The Contractor may recover, if consistent with FAR subpart 31.2 and the Contractor’s established (or disclosed, if contract is Cost Accounting Standards-covered) cost accounting practices, allowable indirect costs.

(d) Only the Contractor's indirect cost rates are identified above.

(e) The Contractor shall be reimbursed:

1) only the indirect cost rate descriptions identified in the table unless prior written approval was obtained by the Contractor’s cognizant Federal agency official (CFAO); and

2) at the negotiated provisional billing indirect cost rates until revised billing indirect cost rates or final indirect cost rates have been established by the Contractor’s CFAO.

(f) After any additional (other than just a name change) indirect cost rate description has been approved in writing by the Contractor’s CFAO, negotiation of provisional billing indirect cost rates and ceiling indirect cost rates associated with such description will occur after the CFAO has issued his prior written approval of such description.

(g) If any revised billing indirect cost rate or final indirect cost rate(s) established by the Contractor’s CFAO exceeds this contract’s respective ceiling indirect cost rate (see Section B.6), the Contractor shall be reimbursed at the contract’s ceiling indirect cost rate.

(h) The Contractor shall make no change to its established (or disclosed, if contract is Cost Accounting Standards-covered) method of classifying or allocating indirect costs without the prior written approval of the Contractor’s CFAO.

(i) The Contractor’s fiscal year period is the period used by the Contractor for cost accounting purposes.

B.6 CEILING INDIRECT COST RATES

(a) This section applies to cost-reimbursement arrangements (i.e., task orders or line items in a task order), materials portion of time-and-materials arrangements, and any progress payments based on costs under fixed-price arrangements.

(b) The following table displays the negotiated ceiling indirect cost rates:

Allocation Base Contractor Fiscal Year Period

To be inserted at contract award

(c) The negotiated ceiling indirect cost rates will be compared to the respective established final indirect cost rates, and the Government shall pay the lesser of the negotiated ceiling indirect cost rates and the respective established final indirect cost rates. See Section B.5(g) for the other usage of the negotiated ceiling indirect cost rates.

(d) If the Government uses the quick-closeout procedure provided in FAR 52.216-7 (Allowable Cost and Payment), the Government will not pay indirect cost rates that exceed the respective negotiated ceiling indirect cost rates.

B.7 TRAVEL COSTS

(a) Travel under this contract is defined as Contractor air and ground transportation, lodging, meals and incidental expenses, and passport/visa costs.

(b) Except as otherwise provided herein, the Contractor shall be paid its allowable travel costs in accordance with FAR 31.205-46 (Travel Costs).

(c) Travel costs are authorized for travel beyond a 50-miles’ radius of the Contractor employee’s local place of performance (official duty station) whenever work is required to be accomplished at a remote work site.

(d) Local travel shall be processed as follows:

If the Government requires a Contractor employee to work an entire normal work day at a site other than the employee’s local place of performance (official duty station) and the radius between the two locations is within 50 miles, travel costs are generally allowable, but only for any difference in costs between the employee’s normal daily commuting expense and commuting expense resulting from the most economical means of transportation available to the employee after considering: any physical or medical needs of the employee; and mission requirements.

1) Payment for time associated with such travel is unallowable.

2) If the Government requires a Contractor employee to work part of a normal work day at a site other than the Contractor employee’s local place of performance (official duty station) and the radius between the two locations is within 50 miles, all travel costs are generally allowable, but only for those costs resulting from the most economical means of transportation available to the employee after considering: any physical or medical needs of the employee; and mission requirements.

For this section, “part of a normal work day” is one in which the employee arrives at the start of his normal work day to his local place of performance (official duty station) and departs at the end of his normal work day from his local place of performance (official duty station). An example is an employee having to attend a meeting at a Department of State site in the middle of the work day.

Payment for time associated with such travel is generally allowable as long as such time is counted as part of the employee’s normal work day.

3) If the Government requires a Contractor employee to work part of a normal work day at a site other than the employee’s local place of performance (official duty station) and the radius between the two locations is within 50 miles, travel costs are generally allowable, but only for any difference in costs between the employee’s normal daily commuting expense and commuting expense resulting from the most economical means of transportation available to the employee, after considering: any physical or medical needs of the employee; and mission requirements.

For this section, “part of a normal work day” is only one of the following:

(a) one in which the employee arrives at the start of his normal work day to his local place of performance (official duty station); or

(b) one in which the employee departs at the end of his normal work day from his local place of performance (official duty station).

An example is an employee having to attend an all-morning local meeting and returning afterwards to his local place of performance (official duty station).

Payment for time associated with going from the employee’s local place of performance (official duty station) to a site other than the employee’s local place of performance (official duty station) is generally allowable as long as such time is counted as part of the employee’s normal work day.

Payment for time associated with returning from a site other than the employee’s local place of performance (official duty station) to the employee’s local place of performance (official duty station) is generally allowable as long as such time is counted as part of the employee’s normal work day.

(e) No travel costs (or associated labor time during travel) shall be allowable for regular commuting or telecommuting beyond (or within) a 50-miles’ radius of the Contractor’s local place of performance (official duty station).

(f) Costs when using a privately owned vehicle (POV) for official travel are allowable provided that such costs do not exceed costs that would have resulted from use of other reasonable transportation methods (e.g., taxi, airplane, train). Reasonable associated costs, such as tolls and parking fees, are also generally allowable.

(g) When traveling in a POV for official travel, the Contractor shall be paid mileage costs at a rate that does not exceed the POV mileage rate established by the Internal Revenue Service.

(h) Costs for car rentals for official travel are allowable pursuant to the following:

1) such rentals are consistent with good business practice;

2) such costs do not exceed costs that would have resulted from use of other reasonable transportation methods (e.g., taxi, airplane, train); and

3) such costs do not exceed the actual cost of renting a compact automobile (maximum of one automobile for four Contractor personnel), unless extenuating circumstances (e.g., excess baggage) require other arrangements and Contracting Officer approval is obtained.

Reasonable associated costs, such as tolls and parking fees, are also generally allowable.

(i) The Government will pay the Contractor, for other than FFP task orders and under the applicable labor category CLIN(s), for each Contractor employee’s travel time to or from authorized work locations as long as the following are met:

1) Payment of travel time described herein is in accordance with the Contractor’s established travel policy.

2) Travel time begins no earlier than two (2) hours prior to the scheduled departure time and concludes upon arrival to the initial destination point (e.g., airport) at the place of performance.

3) The Government will not pay for a Contractor employee’s time spent in layovers that are for the convenience of the Contractor employee or Contractor.

4) The Government will not pay more than eight (8) hours per day per Contractor employee for travel time.

5) The Government will not pay for a Contractor employee’s travel time that is outside the employee’s regular working hours.

6) The Government will not pay for a Contractor employee more than the number of hours in the employee’s normal workweek. “Number of hours” includes productive time hours, travel time hours, and paid time off hours (e.g., sick, vacation, holiday).

7) “Productive time hours” consist of hours that, other than travel time hours, directly benefit the contract.

8) Exceptions must be authorized in advance and in writing by the Contracting Officer.

(j) The following items concern passports and visas:

1) The Contractor shall be responsible for ensuring that all personnel who will be required to travel outside the United States have a current and valid U.S. passport.

2) The Contractor shall be responsible for obtaining any visas required for travel to foreign countries under this contract.

3) The Contractor’s costs for obtaining and maintaining passports and/or visas will be generally allowable, but the Contractor shall pro-rate equitably such costs if they will benefit cost objectives (e.g., contracts) other than this cost objective.

4) The Government will not reimburse the Contractor for travel expenses when travel is cancelled or modified as a result of the Contractor’s failure to obtain a visa, and where the Government has determined that such failure is due to the action or inaction of the Contractor.

5) The Government will not reimburse the Contractor for the use of private visa procurement services provided by a third party.

(k) Costs for travel that has been modified or cancelled are not allowable unless such modification or cancellation was caused by the Government or otherwise beyond the control of the Contractor.

(l) Pursuant to FAR 47.402, 47.403, and the Fly America Act, the Contractor shall use a U.S.-flag air carrier service unless an exception exists. If such conditions exist under a fixed-price arrangement (i.e., task order or line item in a task order), the Contractor shall submit with its task order proposal a memorandum explaining why it does not intend to use a U.S.-flag air carrier service. Inclusion of such costs in the awarded fixed-price is contingent upon Government acceptance of such explanation.

If such conditions exist under arrangements when payment is made based on actual costs incurred (e.g., cost-reimbursement arrangements, materials portion of time-and-materials arrangements, and progress payments based on costs under fixed-price arrangements), the Contractor shall submit with its voucher a memorandum explaining why it did not use a U.S.-flag air carrier service. Reimbursement is contingent upon Government acceptance of such explanation.

B.8 POST HARDSHIP DIFFERENTIAL PAY AND DANGER PAY

Post Hardship Differential Pay and Danger Pay, which are forms of incentive compensation, will not be allowable under the Global Advisory IDIQ. Contractors assumes a risk to their personal security for potential Task Orders under this IDIQ which should be reflected in the price proposal submitted to the Government.

B.9 DEFENSE BASE ACT (DBA) INSURANCE

(a) DBA Insurance costs are unallowable for performance in the United States.

(b) DBA Insurance costs are generally allowable for performance outside the United States, but only for covered Contractor and subcontractor employees. The following are covered Contractor and subcontractor employees:

1) United States citizens or residents;

2) Individuals hired in the United States or its possessions, regardless of citizenship; and

3) Local nationals and third country nationals where task order performance takes place in a country where there are no local worker’s compensation laws.

(c) In addition, DBA Insurance costs are generally allowable for performance outside the United States, but only when such costs accord with the terms of the Contractor’s DBA Insurance policy, law, and regulation.

(d) The Contractor’s DBA Insurance policy shall be with a carrier approved by the United States Department of Labor to provide DBA Insurance, or the Contractor shall be a self-insured employer authorized by the United States Department of Labor to provide DBA Insurance.

B.10 OVERTIME

(a) Overtime for other than FFP tasks orders, which are forms of incentive compensation, will be generally allowable. However, Government payment of such costs is contingent on the Contractor meeting all of the following requirements: The Contractor agrees to perform this contract, so far as practicable, without using overtime, particularly as a regular employment practice, except when lower overall costs to the Government will result or when it is necessary to meet urgent program needs [reference FAR 22.103-2 (Overtime – Policy)].

(b) Overtime is defined as time worked in excess of the number of hours in a normal workweek.

(c) “Number of hours” includes productive time hours, travel time hours, and paid time off hours (e.g., sick, vacation, holiday).

(d) “Productive time hours” consist of hours that, other than travel time hours, directly benefit the contract.

(e) “Travel time hours” consist of hours spent by the employee traveling to or from authorized work locations. See Section B.7(i) for further information.

(f) A normal workweek is defined in Section B.4(n).

(g) For fixed-price arrangements (i.e., task orders or line items in a task order), the Government will not pay for overtime.

(h) The following applies to cost-reimbursement arrangements and the materials portion of time-and-materials arrangements (task orders or line items in a task order):

1) Government payment for overtime must be authorized in advance of any Contractor employee’s performance of overtime and in writing by the Contracting Officer when the Contractor requests an overtime premium cost that exceeds $0.00. Such request shall be submitted in writing to the Contracting Officer and shall address each item under FAR 52.222-2(b) (Payment for Overtime Premiums).

2) Evidence showing the Contracting Officer’s approval shall be sent with each invoice on which overtime containing a premium cost that exceeds $0.00 is being billed.

3) Advance Government authorization for any Contractor employee’s performance of overtime is not required when the overtime premium cost does not exceed $0.00.

4) Unless advance authorization has been granted pursuant to Section B.10(h)(1), any Government payment for Contractor employee overtime will be made at the actual incurred straight-time hourly labor rate that the Contractor pays the Contractor employee and determined allowable by the Contracting Officer, pursuant to FAR 31.201-2 (Determining Allowability).

5) Government payment for overtime must not conflict with any Contractor uncompensated overtime policy or practice. If the Contractor has such a policy or practice, the Government will not compensate the Contractor for overtime costs in accordance with such policy or practice.

(i) The following applies to labor-hour arrangements and the time portion of time-and-materials arrangements (task orders or line items in a task order):

1) Government payment for overtime will be made at the fixed fully-loaded hourly labor rates negotiated in the task order.

2) When Government payment for overtime is made at the fixed fully-loaded hourly labor rates negotiated in the task order, such payment applies only to: a) Contractor employees exempt from the Fair Labor Standards Act (FLSA) and who perform overtime in the geographical areas applicable to FLSA; and b) all Contractor employees who perform overtime outside the geographical areas applicable to FLSA.

3) Advance Government authorization for any Contractor employee’s performance of overtime is not required when Government payment is at the fixed fully-loaded hourly labor rates negotiated in the task order.

4) Government payment for overtime for Contractor employees not exempt from the Fair Labor Standards Act and who perform overtime in the geographical areas applicable to FLSA will be made at fixed fully-loaded hourly labor rates (negotiated in the task order) that match or are less than the following NTE fully-loaded hourly labor rates:

NTE Fully-Loaded Hourly Labor Rates for Overtime under 40-hour Normal Workweek

CLIN

Labor Category

Base Year

See Labor Categories in B.4(b)

5) The premium portion of the fixed fully-loaded hourly labor rates negotiated in the task order will be reimbursable only to the extent that the overtime is approved in advance and in writing by the Contracting Officer [reference FAR 52.232-7(a)(8) (Payments under Time-and-Materials and Labor-Hour Contracts)].

The Contractor’s request to the Contracting Officer for overtime approval shall identify the rationale for such request.

Evidence showing the Contracting Officer’s approval shall be sent with each applicable invoice.

6) The following is the premium portion of the negotiated NTE fully-loaded hourly labor rates in Section B.10(i)(4):

Premium Portion of NTE Fully-Loaded Hourly Labor Rates for Overtime under 40-hour Normal Workweek

CLIN

Labor Category

Base Year

See Labor Categories in B.4(b)

7) The premium portion negotiated in Section B.10(i)(6) includes applicable indirect costs and profit.

8) The premium portion of the fixed fully-loaded hourly labor rates negotiated in the task order will be commensurate with the discount, if any, of the NTE fully-loaded hourly labor rates negotiated in Section B.4(b). The following is an example:

Section B.4(b) NTE Fully-loaded Rate

(a) Fixed Fully-loaded Rate for Task Order

(b) % Discount

(c) = 1 – (b/a) Section B.10(i)(4) NTE Overtime Fully-loaded Rate

(d) Section B.10(i)(6) NTE Premium Portion of Section B.10(i)(4) NTE Overtime Fully-loaded Rate

(e) Premium Portion of Fixed Fully-loaded Rate for Task Order

(e) – [(c) x (e)]

9) Government payment of overtime will be made only if the Contractor compensates the Contractor employee for the employee’s overtime performance. While Contractor payment does not have to be at the unloaded hourly labor rate (and premium, if applicable) comprising the negotiated fixed fully-loaded hourly labor rate, Contractor payment of total dollars to the employee for the given workweek must reflect an amount that exceeds the compensation paid to the employee for a normal workweek.

B.11 FIXED PROFIT PERCENTAGES

(a) This section applies when profit is an applicable element (e.g., under fixed-price, labor-hour, and time portion of time-and-materials arrangements) and when:

1) proposing and negotiating new cost elements (e.g., new labor categories and other direct costs) in the contract or task order; and/or

2) changes (i.e., additions and/or deletions) in negotiated contract or task order pricing occur.

(b) Examples of this section’s applicability are when proposing and negotiating:

1) fully-loaded hourly labor rates for labor categories not already identified in the contract or task order;

2) fixed-price task orders;

3) fixed-price line items in a task order; and/or

4) equitable adjustments under fixed-price task orders or line items in a task order.

(c) The following are the negotiated fixed profit percentage(s):

1) Base Year:

2) Option Year 1:

3) Option Year 2:

4) Option Year 3:

5) Option Year 4:

6) Six-Month Option to Extend (see FAR 52.217-8):

B.12 FIXED fee PERCENTAGES

(a) This section applies when fee is an applicable element (e.g., under specific cost-reimbursement arrangements) and when:

1) proposing and negotiating cost elements already identified in the contract (e.g., existing labor categories and other direct costs);

2) proposing and negotiating new cost elements (e.g., new labor categories and other direct costs) in a task order; and/or

3) changes (i.e., additions and/or deletions) in negotiated task order pricing occur.

(b) Examples of this section’s applicability are when proposing and negotiating:

1) cost-plus-fixed-fee task orders;

2) cost-plus-fixed-fee line items in a task order; and/or

3) equitable adjustments under cost-plus-fixed-fee task orders or line items in a task order.

(c) The following are the negotiated fixed fee percentage(s):

1) Base Year:

2) Option Year 1:

3) Option Year 2:

4) Option Year 3:

5) Option Year 4:

6) Six-Month Option to Extend (see FAR 52.217-8):

B.13 FIXED FEE

(a) This section applies to cost-plus-fixed-fee task orders or cost-plus-fixed-fee line items in a task order.

(b) If, pursuant to FAR 16.306(a) (Cost-Plus-Fixed-Fee Contracts), changes in the work to be performed under the task order or cost-plus-fixed-fee line item(s) occur [pursuant to FAR 52.243-2 (Changes – Cost-Reimbursement)], the Government and Contractor will adjust the negotiated fixed fee by multiplying the applicable negotiated fee percentage [see Section B.11(c)] to the sum of the new estimated direct costs and applicable indirect costs.

In such a case, applicable indirect costs will be calculated by multiplying the negotiated applicable provisional billing indirect cost rates (or established revised billing rates or final indirect cost rates, subject to negotiated ceiling indirect cost rates – see Sections B.5 and B.6) by the new estimated costs whose elements are included in the respective allocation bases identified in Sections B.5 and B.6.

(c) The negotiated fixed fee for each performance period will be paid in monthly installments by dividing the negotiated fixed fee for the performance period by the number of months in the performance period, minus the applicable withholding of a fixed fee reserve pursuant to FAR 52.216-8(b) (Fixed Fee).

However, full monthly payment is contingent upon the Contractor meeting the acceptable quality levels, measurable performance standards, or otherwise minimum task order requirements for the invoice period [reference FAR 16.306(d)(1) (Cost-Plus-Fixed-Fee Contracts)].

(d) If the Contractor has not met the acceptable quality levels, measurable performance standards, or otherwise minimum task order requirements for the invoice period, the Contractor will receive a pro-rata share of the monthly amount of the negotiated fixed fee for the month’s requirements to which the Contractor has met the acceptable quality levels, measurable performance standards, or otherwise minimum task order requirements for the invoice period.

(e) Any withheld fixed fee resulting from the Contractor not meeting the acceptable quality levels, measurable performance standards, or otherwise minimum task order requirements for the invoice period will be released to the Contractor when the Contractor completes the requirement(s). Commencement of such completion is predicated on the Government requiring the Contractor to perform the services again in conformity with task order requirements. FAR 52.246-5 (Inspection of Services – Cost-Reimbursement) provides additional information.

(f) The Contracting Officer is the ultimate Government authority in determining whether the Contractor has met the acceptable quality levels, measurable performance standards, or otherwise minimum task order requirements for the invoice period. Prior to making his determination, the Contracting Officer will consider input from the Contracting Officer’s Representative.

(g) “Total fixed fee,” as defined in FAR 52.216-8(b) (Fixed Fee), means “the fixed fee cumulative of all performance periods in the task order.”

(h) The task order will identify the total fixed fee, and the Contractor will be responsible for subtracting the appropriate amount on each invoice. The appropriate amount is the withheld amount (15% of the total fixed fee or $100,000, whichever is less) divided by the number of months in the task order period of performance, including option periods [reference FAR 52.216-8(b) (Fixed Fee)].

B.14 NOT-TO-EXCEED (NTE) UNIT PRICES FOR EQUIPMENT

(a) This section applies to the fixed price under fixed-price arrangements (i.e., task orders or line items in a task order).

(b) The following table displays the negotiated NTE unit prices (to be inserted at contract award):

CLIN

Description

Base Year

(see FAR 52.217-8)

(c) The descriptions of the direct equipment are located in Attachment F in Section J.

(d) The negotiated NTE unit prices are based on a quantity of one and otherwise as described in Attachment F in Section J.

(e) The negotiated NTE unit prices are in United States currency.

(f) Each negotiated NTE unit price consists of the equipment’s direct costs, applicable indirect costs, and profit.

(g) Any costs included in the negotiated NTE unit prices shall not be charged elsewhere under this contract.

(h) At the task order level, the Contractor will be given an opportunity to propose unit prices that match or are lower than the respective negotiated NTE unit prices. The Contractor will be paid only at unit prices that are equal to or are less than the respective negotiated NTE unit prices.

(i) The negotiated (or discounted negotiated) NTE unit prices will be paid regardless of whether the direct equipment is provided by the prime contractor, subcontractor, or other entity.

(j) The unit prices awarded as part of an individual task order will also apply to any equitable adjustment to the task order.

B.15 SELECTED CONTRACT LINE ITEM NUMBERS (CLINS) AND SUB-CLINS

(a) The following CLINs and sub-CLINs shall be used for the following respective descriptions at the task order level:

Direct Labor

X001

X002

X003

X004

X005

X006

X007

X008

X009

X010

X011

X012

X013

X014

X015

X016

X017

Other Direct Costs (ODCs)/Direct Materials

X100