Gov Response to Question 41211.pdf

Question #1 Reference: Reference: ‘RFP_Amend_0006’, ‘Section_L‐3_Amend_0006’, FAR 2.101, and FAR 16.601.a.

The Government has included a large amount of ‘Industrial and Transportation’ labor as a material line item in amendment 0006. We believe this approach was included based on the definition of materials in FAR 16.601.a, whereby “[s]ubcontracts for supplies and incidental services for which there is not a labor category specified in the contract.” In FAR 2.101, supplies are defined as “…ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories…”

FAR 16.601.a states that only supplies and incidentals for which there is no labor category should be billed as a material on T&M contracts. The Industrial and Transportation labor does not qualify as supplies based on FAR 2.101 cited above. Additionally, as the Government demonstrates based on the weighted distribution in the Section L‐3 attachment, these services make up the bulk of the labor hours and are therefore not incidental to contract support.

Please therefore confirm that, in accordance with FAR 16.601(a), Offerors will be allowed to develop labor categories for the Industrial and Transportation labor post-award using the loading factor included in our submission for that ODC element.

Answer:

FAR 16.601 describes and applies to Time‐and‐Materials (T&M) contracts. The preponderance of the work to be performed under this contract is anticipated to be Firm‐Fixed Price (FFP) and a less significant amount of work will be conducted as T&M. Industrial and Transportation labor includes but is not solely limited to shipyard labor. Other items such as transportation are anticipated to be performed by the subcontractor or interdivisional work transfer agreements (ITWA) under the category of Industrial and Transportation Labor.

The shipyard labor categories and work are not listed and will not be used for price evaluation purposes of the resultant IDIQ contract due to the geographical dispersion of various locations (CONUS and OCUNUS) necessary for the shipyard work to take place. Therefore, it is anticipated that the prime contractor shall select the subcontractor or ITWA on a competitive basis to the maximum extent practical in accordance with FAR 52.244‐5 Competition in Subcontracting upon the requirements being known and defined in each request for proposal for each task order. Any subcontractor or interdivisional transfer proposal should have the same level of details in their cost proposals that is provided by the prime contractor to include among other items labor rates and mix and quantity of labor subcontractor or interdivisional transfers based on the instructions in each task order RFP. On a task order basis, the Government would expect the Offeror to propose a price for labor as part of the prime’s proposal in the "industrial and transportation labor" category, ostensibly performed by a subcontractor or interdivisional transfer, and apply any applied factors that are part of the submission to the RFP for the resultant IDIQ contract.

Question #2 The Government’s response to question 1 above is a significant driver in the Offeror’s ability to produce a responsive Price Proposal.

Would the Government grant an extension of 7 calendar days depending on the date question 1 is answered?

Answer: Due to the turnaround time of the Government’s response, an extension will not be granted.