Atch_2_Market_Research_Questions_final.pdf

Application Support Center (ASC) Market Research

Question 1:

Based on the requirement of the DRAFT Performance Work Statement (PWS), and IAW FAR Part 16, which contract type

(fixed-price, time and material, labor hour, or cost reimbursement) would be most appropriate for each of the four

Other Direct Cost (ODC) categories and why?

The ODC categories are (ref PWS, para 9, pg C-22):

1. Facilities – (building lease, construction, repair, and utility costs) - 94% of ODCs

2. Travel – (transportation, lodging, meals, expenses, and incidentals, etc. ) - 1% of ODCs

3. Equipment – (televisions, telephones, copiers, scanners, safes, printers, etc.) - 1% of ODCs

4. Supplies – (latex gloves, hand wipes, hand sanitizer, FD-258 fingerprint cards, ink, office supplies, etc.) - 4% of

ODCs

Given the below approximate costs and statistics for 9 years’ worth of data and supporting graphs:

Costs 2007 2008 2009 2010 2011 2012 2013 2014 2015

Facilities $17,238,297 $19,494,775 $24,838,464 $22,006,150 $17,688,486 $15,748,854 $16,719,572 $16,994,652 $18,978,199

Travel $257,272 $33,820 $105,064 $600,000 $115,008 $81,864 $15,675 $19,948 $43,216

Equipment $135,222 $231,053 $279,902 $500,000 $128,235 $52,950 $26,289 $67,207 $154,553

Supplies $994,518 $997,203 $723,700 $1,212,000 $944,901 $780,776 $734,872 $704,841 $886,025

TOTAL $18,625,308 $20,756,850 $25,947,130 $24,318,150 $18,876,629 $16,664,444 $17,496,408 $17,786,648 $20,061,993

Statistics Minimum

Annual Cost Maximum

Annual Cost Range (Max -

Min) Min to Max

Spread Average

Annual Cost Standard Deviation

Coefficient of Variation

Facilities $15,748,854 $24,838,464 $9,089,610 58% $18,856,383 $2,911,177 15%

Travel $15,675 $600,000 $584,325 3728% $141,318 $187,441 133%

Equipment $26,289 $500,000 $473,711 1802% $175,046 $146,880 84%

Supplies $704,841 $1,212,000 $507,159 72% $886,537 $168,433 19%

TOTAL $16,664,444 $25,947,130 $9,282,686 56% $20,059,284 $3,162,364 16%

And assuming the below information:

1. Facilities

Known in advance:

Historical cost data

There are currently 77 Contractor-leased facilities with leases expiring on different dates/years.

Standard leases are used across all sites. The standard lease includes a 5yr base period and two 5yr option periods. Pricing is negotiated for the base and option periods and price escalation is included.

Which utilities are required (ex. electricity, water/sewer, garbage, janitorial, etc.)

Unknown in advance:

Number of new ASCs established each year or over a 5 year period of performance

Number of ASCs that will be closed each year or over a 5 year period of performance

Number of leases that will be terminated early and amount of lease termination fees that will be paid each year or over a 5 year period of performance

Number of leases that will be extended for additional months beyond lease terms each year or over a 5 year period of performance

Number of ASC relocations each year or over a 5 year period of performance

Number of COLO ASCs that will move to SA ASCs each year or over a 5 year period of performance

Number of ASCs that will be converted to mobile routes each year or over a 5 year period of performance

Cost of each ASC buildout, as they are site specific with respect to the amount of construction needed and cost of labor by geographic area

Number of ASCs which will require utilities each year or over a 5 year period of performance

Which specific geographic locations will require utilities each year or over a 5 year period of performance

Which parts of the season will require utilities for how many sites during each year or over a 5 year period of performance

Utility rates over a 5 year period of performance

2. Travel

Known in advance:

Historical cost data

Travel is used for ASC site location surveys, mobile routes, and for Tiger Team members to assist ASCs with processing surge volumes of applicants

Unknown in advance:

Amount (frequency and duration) of travel each year or over the 5 year period of performance

Travel locations each year or over a 5 year period of performance

Per diem amounts for a 5 year period of performance

3. Equipment

Historical cost data

Unknown in advance:

Amount of equipment purchased each year or over a 5 year period of performance

Which equipment will be purchased each year or over a 5 year period of performance

4. Supplies

• Historical cost data

Unknown in advance:

• Amounts of each type of supplies needed each year or over a 5 year period of performance.

Response:

Question 2:

Based on the DRAFT PWS requirements and current “ASC Price Template” (RFI Attachment 3), assume: USCIS schedules applicants to come in to District 1 fingerprinting centers at a rate of 6 per hour on the hour, the centers are open for 8 hours per day and for approximately 21 days per month, and there are a total of 18 fingerprinting machines at the 5 fingerprinting centers. Thus, the monthly capacity is 6 X 8 X 21 X 18 X 50% for biometric collection (the other 50% of capacity is used for identity verification) = 9,072 applicants per month (i.e. 100% biometric collection capacity). On any given month the number of applicants to be fingerprinted could range from 0 to 27,216. Please note that not all fingerprinting machines need to be staffed at all times as long as all scheduled applicants are processed at least the scheduled rate of 6 applicants per hour.

Under the current pricing structure, your company would be paid price band 0001AA on a monthly fixed price regardless of quantity and any applicant(s) over the quantity listed for band 0001AA gets paid out of the single applicant unit price band that includes the total monthly quantity. Using the example below, if there was a quantity in one month of 6,521 applicants, the contractor would get paid the fixed price amount in price band 0001AA and 4,466 (6,521 – 2,055) applicants at the unit price listed for price band 0001AC).

Question: Are the quantities in each of the price bands below, appropriate? If not, please provide suggested quantities and corresponding explanations.

Sample Historical Data for District 1 (monthly applicant quantities for biometric collection):

FY Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

14 3,868 3,647 3,544 3,420 3,371 3,815 4,364 4,781 4,483 4,218 4,461 4,490

15 4,583 4,004 4,010 4,395 4,308 6,521 6,971 5,396 4,985 4,755 4,561 4,420

District 1 price band structure is (also, shown in the ASC Price Template attachment):

Price Band Min Applicant Quantity

Max Applicant Quantity

Explanation

0001AA 1 2,055 Up to 50% of FY14 quantity

0001AB 2,056 4,919 Between 50% and 120% of FY14 quantity

0001AC 4,920 9,072 120% of FY14 quantity and 100% capacity

0001AD 9,073 18,144 Between 100% and 200% capacity

0001AE 18,145 27,216 Between 200% and 300% capacity

Response: YES or NO (please circle one)

If NO, please complete the below table:

Price Band Min Applicant Quantity

Max Applicant Quantity

Explanation

0001AA

0001AB

0001AC

0001AD

0001AE