AMD 0005 Questions Answers - HC108424R0005 FINAL.pdf

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Defense Commissary Agency (DeCA) Retail Price and Promotion Optimization Tool
Solicitation number
HC108424R0005
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This document describes a federal contract solicitation for the Defense Commissary Agency (DeCA) to implement a cloud-based retail price and promotion optimization tool. DeCA operates commissaries worldwide for the Department of Defense and needs a Software as a Service solution to analyze product details, determine effective price points, and understand customer needs and behaviors. The goals are to provide DeCA personnel with a retail optimization tool that interfaces with its Enterprise Business Solution product catalog to help set prices and meet patron needs. The Defense Information Systems Agency is the contracting agency. The solicitation number is HC108424R0005 and responses are due by the date specified in the solicitation.

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Amendment 0005 RFP Attachment (PWS, QASP, Clauses, etc..) Section/ Paragraph/ Text

Page Number Question/Comment/Recommendations Government Response

PWS Prior Task Orders 74 Is this a completely new requirement or is there an incumbent? If the latter, please provide the incumbent contractor name and contract/task order number.

Yes. This is a new completely new requirement with no incumbent.

PWS 6.3 76 Does this tool need to be FedRAMP and/or Impact Level 4 compliant? See PWS tasks 6.4 & updated 6.4.7 in red font.

PWS Is the EBS System Oracle EBS, No, DeCA EBS does not use any Oracle applications.

PWS

Data Structure and Optimization Parameters: How should the tool manage different regions with distinct pricing strategies, considering regional competition and margin requirements? See updated PWS task 6.2.17 in red font.

PWS

KVI and Special Programs: Could you clarify the criteria for KVIs and their impact on pricing strategies, especially regarding competitor pricing and margin limitations? See updated PWS task 6.2.5.1 in red font.

PWS

Product Grouping and Price Family Dynamics: How are price families determined and managed, particularly concerning parent-child relationships and regional pricing variations? See updated PWS task 6.2.18 in red font.

PWS

Import and Export Functionalities: Are there specific formats or templates for importing data into the system and exporting optimized pricing for integration with DeCA EBS? See updated PWS tasks 6.1, 6.2.1 and 6.2.2.

PWS

Forecasting and Impact Analysis: Could you provide more details on preferred forecasting models for predicting sales, margin impacts, and competition savings? See updated PWS task 6.2.2.1 in red font.

PWS

Visibility and Reporting Requirements: What visibility level is required for different user roles, and how should the tool facilitate this? See updated PWS task 6.2.9.4 in red font.

PWS

Multi-Level Approval Workflow: What specific workflow features or functionalities are needed to support the approval hierarchy before finalizing optimized retails? See updated PWS task 6.2.19 in red font.

PWS

Historical Data and Reporting: How should the tool archive and report on historical pricing decisions? See updated PWS task 6.2.7.3 in red font.

PWS

Elasticity and Competitor Data Utilization: Can you elaborate on the role of competitor data and elasticity in the pricing optimization process? See updated PWS task 6.2.20 in red font.

PWS

Data Ownership and Security: What measures are expected to ensure the security and proprietary control of data?

DeCA's proprietary information such as costs, margins, business strategies are expected to be secured as CUI.

RFP - HC108424R0005 - Question & Answers

PWS

Budget and Pricing: Is there a predefined budget range for this project, and are there any cost limitations or guidelines for the solution’s development and implementation? No.

PWS

Change Management: Could you detail the expected change management processes, especially how changes to the project scope or technology should be communicated? See PWS task 6.3.3 and 6.7.1

PWS

Post-Development Support: What are the expectations for post-development support and maintenance, and are specific SLAs or maintenance schedules required? See PWS task 6.7 - Lifecycle Sustainment.

PWS

Performance Metrics: What KPIs and metrics will be used to assess the solution's success, and how frequently will these evaluations occur? See PWS 7 Performance Standards.

PWS

DeCA EBS Integration Capabilities: Does DeCA's Enterprise Business Solution (EBS) provide an Application Programming Interface (API) to facilitate integration with the retail price and promotion optimization tool? If so, could you provide details on the API specifications, including available endpoints, authentication methods, and data exchange formats?

See updated PWS tasks 6.1, 6.2.1 and 6.2.2 At present, DeCA does not foresee a need for development of an API for live data to the price optimization tool.

PWS

Technical Documentation for DeCA EBS API: Is there technical documentation available that outlines how to integrate with the DeCA EBS API, including guidelines on usage, rate limits, and security protocols? We seek to ensure our solution aligns with DeCA's IT policies and optimizes data synchronization and real-time access.

See updated PWS tasks 6.1, 6.2.1 and 6.2.2. At present, DeCA does not foresee a need for development of an API for live data to the price optimization tool.

PWS

Support and Assistance for API Integration: In the event of API integration, does DeCA offer technical support or assistance to address potential challenges or questions that may arise during the development and implementation phases of the project?

See updated PWS tasks 6.1, 6.2.1 and 6.2.2. At present, DeCA does not foresee a need for development of an API for live data to the price optimization tool.

Appendix B – DeCA Sample Optimization Data

Tab - Data – Column AE Tab – Optimization Rules – Column C

Appendix B – Data tab – column AE references pricing region, references multiple values, while Appendix B – Optimization Rules tab -column C references lower 48, OCONUS and AK, HI for Optimization. Please provide confirmation whether the scope of the Price Zones is to be optimized based on pricing region/ lower 48, OCONUS and AK, HI, or a different number See updated PWS task 6.2.19.1 in red font.

PWS

Appendix B – Data Sample Optimization

Section 6.1.2 Tab – Optimization Rules – Row 14 and Row 22 75

Appendix B – Optimization Rules – Row 14 and 22 reference Future Cost.

Please provide guidance and/or an example of how the government would like respondents to utilize future cost from a workflow perspective in a price optimization. See updated PWS task 6.2.2.1 in red font.

PWS Section 6.1.2 75

This requirement states “The retail price and promotions optimization solution will be customizable without added technical support”. Please provide guidance on the types of customizations and/or personalization that the government anticipates being provided by respondents See updated PWS task 6.2.9 in red font.

PWS Section 6.1.15 75

This requirement states “the product should be scalable across product categories” based on this requirement is the intended scope of a price optimization intended to be possible at multiple levels of the product hierarchy, inclusive of optimization the of multiple categories in within a single set of objectives? See updated PWS task 6.2.15 in red font.

PWS

Attachment 1 – CLIN Pricing Worksheet

Section 6.1 Tab – CLIN Summary – CLIN x001 – Software Subscription 75

Please provide guidance on the planned and expected number of end-users expected to access the Price Optimization solution. See updated PWS task 6.2.7.2 in red font.

RFP

Item D – Page 47 Task 3 – Page 76 and 77 47, 76, 77

The RFP states “(D) If the Contractor intends to use an external cloud service provider to store, process, or transmit any covered defense information in performance of this contract, the Contractor shall require and ensure that the cloud service provider meets security requirements equivalent to those established by the Government for the Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline (https://www.fedramp.gov/resources/documents/) and that the cloud service provider complies with requirements in paragraphs (c) through (g) of this clause for cyber incident reporting, malicious software, media preservation and protection, access to additional information and equipment necessary for forensic analysis, and cyber incident damage assessment. Does this provision allow respondents to propose an alternative to the FEDRAMP requirement and remain in compliance with the RFP? See updated PWS task 6.4.7

RFP

Item 3 - Page 25 Item 11 - Page 21 FAR 52.212.4 – Page 1 and Page 14

25, 21, 1, The RFP states (1) (page 25) “In response to this RFP, no terms, conditions, or assumptions will be entertained. If terms, conditions, or assumptions are included in a proposal, the proposal may be excluded on grounds that it failed to comply with the RFP’s instructions; and (2) (page 21) “If the offer is not submitted on the SF 1449, include a statement specifying the extent of agreement with all terms, conditions, and provisions included in the solicitation. Offers that fail to furnish required representations or information or reject the terms and conditions of the solicitation may be excluded from consideration.”

Consequently, any deviations from the stated RFP terms and conditions aren’t permissible

Yes, the Contracting Officer will allow the Contractor to submit tailored language for review. However, there is no guarantee the revised language will be accepted.

However, the RFP includes FAR clause 52.212-4 “Contract Terms and Conditions--Commercial Products and Commercial Services” (NOV 2023) and the associated FAR prescription states: “The clause at 52.212-4, Contract Terms and Conditions-Commercial Products and Commercial Services”:

This clause includes terms and conditions which are, to the maximum extent practicable, consistent with customary commercial practices and is incorporated in the solicitation and contract by reference. The contracting officer may tailor this clause in accordance with 12.302 “Tailoring of provisions and clauses for the acquisition of commercial products and commercial services”. 12.302(a) states that contracting officers may tailor FAR 52.212-4 to adapt to the market conditions for each acquisition, within the limitations of this subpart. While 12.302(b) identifies the subparts that are not tailorable, other subparts are tailorable as long as it is consistent with customary commercial practice for the item being acquired.

That said, the Contractor desires to submit certain permissible tailoring language to FAR 52.212-4 consistent with its commercial practices. Will DeCA allow such tailoring in the RFP response which, by FAR guidance, shall be by addenda to the solicitation and contract?”

RFP Item 7 - Proposal Due Date 26

Based on the level of work required to submit a complete and comprehensive response would DITCO consider an extension of the Due Date to Friday 1 March 2024.

The Government provided an extension to March 8, 2024 at 12:00 CST.

Regarding the solicitation HC108424R0005, we seek clarification on the pre-award testing process outlined for the retail price and promotion optimization solution. Could you please provide detailed guidance on how prospective contractors are expected to prepare for this testing? Specifically, we are interested in understanding if the testing is anticipated at the algorithm level or requires a demonstrable prototype, and what criteria or scenarios will be used to evaluate our solution's compliance with Appendix A. See updated PWS task 6.2.16.2 in red font.

PWS

Additionally, we seek guidance on the methodologies preferred for predicting and optimizing pricing within the proposed solution. Specifically, should we adhere to predefined guidelines/rules/formulas derived from historical data, or is the application of machine learning algorithms expected? If machine learning is recommended, could you please specify any preferred models or approaches?

There are currently no predefined guidelines / rules / formulas derived from historical data.

RFP Receive an extension to submit this proposal, until March 8, 2024?

Yes, The Government has granted an extension to March 8, 2024 at 12:00 CST.

RFP 24

Page 24 says response to Technical/Management (volume II) is 50 pages, but page 26 says 20 pages

The page limit is 50 pages and the file size of each document shall not exceed 20 MB. FAR 52.212-2(1) updated to 50 pages.

PWS 6.8

Cyber Security Compliance and NIST requirements, can we develop the processes to meet the requirements during the implementation? See updated PWS task 6.4.7, 6.8.4 and 6.8.5

PWS

12. Section 508 Accessibility Standards Where are the standards? What is ICT? What do chapters 4,5,6 refer to?

Information and communication technology (ICT) Standards are to ensure information and communication technology is accessible and usable by individuals with disabilities. Chapter 4 Hardware, Chapter 5 Software and Support Documentation and Service.

PWS 6.3.1 Who is paying for hosting? Does the contractor manage hosting? See PWS task 6.4 Fedramp compliant.

PWS

Who and how many people currently decide on the price rules and changes? Is this done centrally or do local stores have own authority over (some) prices?

There are currently 6 people on the DeCA Pricing team that contribute to the final determination of the DeCA price rules and changes. The store ability to change retails is established within DeCA's current Enterprise Business System (EBS), as opposed to the pricing optimization tool.

PWS

Can you describe your current pricing workflow and how you generally want to change it in the future? What are your short term and long-term goals in that regard? See PWS task 6.2.19.2 in red font.

PWS

How are cost zones, retail price zones and store zones currently determined/defined and what is the resulting number of stores / store zones with individual pricing (for the same items) at the moment? See PWS task 6.2.17.1

Referring to the last question: Should this existing structure also be changed/optimized, e.g. to provide more granular price optimization with smaller store clusters or individual stores? If yes, what is the planned timeline for such changes? No, this structure is not expected to change.

PWS

How many SKUs does a store have? Do all stores have the same (or similar) assortment or are there differences between the different regions, within and outside of the US? See PWS task 6.2.3.2.

PWS How many sales transactions take place each day in one store?

DeCA supports 235 stores. Sales volume will naturally vary from one store to the next. For high-level reference, DeCA is 'mid-pack' in terms of the top 100 food retailers in North America: https://progressivegrocer.com/pg-100-ranking-top-food-retailers-north-america

PWS

What is the approximate distribution between fast and slow movers in the assortment?

The top 40th percentile of movement within the category would be considered a fast mover. All remaining units would be considered a slow mover.

PWS

Is the pre-award testing listed in Appendix A that which is described in Appendix B?

Appendix A contractor will need to meet the Salient Criteria listed and for Appendix B lists the pre award testing.

PWS

When is the test described in Appendix B going to be carried out? After the awarding and signature of contracts, as a PoC?

First the contractor will need to meet the Salient requirements on Appendix A and Appendix B will be performed pre-award.

PWS

Competitor/Market data is provided in the test case (appendix B) but not mentioned in the RFP. Can we assume that such data will be provided by DECA and should be considered in the final deployment as well?

Yes, Competitor Market data will be provided by DeCA and imported into the tool.

PWS

Promotions are mentioned at a high level but not further described in the requirements or test case. Could you please elaborate to what extend a solution should provide promotion optimization functionality and what your plans and timeline is to include those in the pricing process?

Contractor needs to include their promotion solution and reference PWS task 6.6.1

PWS

The PWS states that the solution must integrate with NCR’s EBS Power HQ full item product assortment catalog. Is there an existing API or integration service in Power HQ that will facilitate this integration effort?

DeCA does not foresee a need for development of an API for live data to the price optimization tool.

See updated PWS task 6.2.1 and 6.2.2, for the technical information on how to integrate into DECA EBS interfaces.

PWS

Program Analyst Support - is support for the specified daily time period limited to working days, Monday thru Friday, less U.S. federal holidays? See PWS task 6.3.1.

PWS

The PWS states that the SaaS solution is required to be FEDRAMP/Moderate, does this infer Impact Level 2? See PWS tasks 6.4 & updated 6.4.7 in red font.

PWS

Although the PWS requires FEDRAMP/Moderate, would SaaS delivery by secure private cloud (software and cloud provider) accredited to NIST 800- 171 and 181 standards be acceptable? See PWS tasks 6.4 & updated 6.4.7 in red font.

Based on the previous question, can the solution offered go through the accreditation process during system implementation? See PWS tasks 6.4 & updated 6.4.7 in red font.

PWS

During system implementation does DeCA desire all training courses to be conducted on site vs. virtually? See PWS task 6.5.1

PWS

This paragraph suggests that an over the shoulder training capability is available to users at the time of need. Can you provide an estimated number of monthly hours for this service?

DeCA is unable to measure unknown system training requirements but encourages industry to provide a best estimate for maximum 25 users, not to exceed 40 hours per month.

PWS

"Deliverable - PWS Task 6.4.5, last column, states that DeCA requires five (5) business days to review and approve final training materials. Is this five (5) days prior to the timeframes outlined in the Due Date column?"

Yes. The 5 business days is based on having training materials ready for user testing. The final materials are due prior to predeployment end-user training.

See Deliverable PWS task 6.5.5 & 6.5.5.1

PWS

The Table that outlines the deliverables for this paragraph states that failover testing is required. During which test event does DeCA intend failover testing to be done or is it a separate test event?

Updated PWS task 6.6.9 deliverable to remove "Fail Over".

PWS Does Operational Test and Evaluation Testing include user testing? See PWS task 6.6.17

PWS

Is it DeCA's intent to conduct a TRR before and after IT&E, DT&E 1 and 2, Security testing and Operational Test and Evaluation? See PWS tasks 6.6.12, 6.6.13,66.14.6.6.15 & 6.6.17

PWS

This paragraph states that the Contractor shall make changes to configuration of their solution when directed by the Government Program Manager. Is it the Government's intent to have the prime contractor perform all configurations and system administration or will the contractor be working with designated DeCA system administrators to perform these functions? See PWS task 6.6.9 - failover has been removed.

PWS Technical

Can you provide a description of the DeCA’s Enterprise Business Solution

(EBS)

1.a Is it Oracle EBS ?

1.b What type of integration (API) interfaces (i.e. REST, SOAP, Streaming, etc.) does the system have ?

No, DeCA EBS does not use any Oracle applications.

DeCA does not have the technical information on how to integrate DECA EBS interfaces.

PWS Technical

What is the expected result/format of the DeCA data for presentation to the End User ?

Will it always be the format of the Data set provided ? See PWS task 6.2.7.1

PWS Technical

Is the expectation that the SaaS solution will perform some type of Predictive Analysis on the retrieved data Set retrieved from DeCA ? Can you provide the Formulas required for Analysis ? See PWS task 6.2.2.1

PWS Technical

Can you provide more detail for the following Salient Requirements:

“Rule based price scenarios with manual override.” (Are these fixed algorithms, or is the expectation the offeror will recommend the scenarios, or will it be a collaborative effort?

“Ability to utilize product grouping and category specific parameters” Based on a review of the Data Tab provided, can you explain the formula for the different Rules required for Transformation/Analysis of the core Data set(i.e.)

Optimization Priority 1CompetitionLower 48, OCONUS

Programs 3EDLP All Regions

Price Family 5Retail EndingsAll Regions

See updated PWS task 6.2.11 & 6.2.12 Rule based and Product Grouping

“Interface with enterprise business systems and/or import and export capabilities.” Can you please provide more detail on the types of expected interfaces and export capabilities.

“Scalable across product categories, regions, and countries.” Are you requesting a multi-lingual solution? If not, please provide the degree in which the Scalability should be implemented.

“Pricing optimization with a promotional component capable of leveraging historical demand and financial information to generate demand forecasts based on optimization results.” Can you please describe the Historical Data and the expected Optimization Scenarios? Do you have Optimization algorithms or do you want the Offeror to recommend the different Scenarios.

If the latter, can you please provide data set examples?

“Customizable without added technical support.” What elements of the SaaS solution is expected to be Customizable without Technical Support?

“Parameters are easily accessible to create necessary dashboards.” Can you provide examples of the parameters/flexibility of the ability to create Dashboards ?

PWS Pricing

Is the expectation associated with this line item:

0003 - FEDRAMP Cloud and Services

To account for the effort to integrate the SaaS solution with the FEDRAMP Environment, or is it for the SaaS solution to be audited for compliance ? See PWS tasks 6.4 & updated 6.4.7 in red font.

File details come from the government source that posted it. Updated .