RHRP-II Attachment 1A.docx

RHRP RFP, Attachment 1A – Instructions and Examples

Offerors shall submit a technical and Price proposal as instructed in Section L. Attachment 2 provides examples of how tiered pricing structures within Attachment 1shall be implemented. The dollar values used within Attachment 2 are hypothetical and do not represent any price expectation or guidance from the Government.

1.0 Tiered Pricing Structure

A tiered pricing structure exists for a number of line items within Attachment 1. The purpose of the tiered pricing structure is to seek lower prices with increased volume. The first example of tiered pricing structure is “PHA & Focused Exam – Group Event”. Within this section of Attachment 1, USAR sub-section identifies tier 1, tier 2, and tier 3. A picture of these three (3) line items is provided below:

2.0 Response Examples

The purpose of the following examples is to provide guidance to vendors on how to respond to the tiered pricing structure that is found in multiple sections of Attachment 1.

2.1 Example 1 – USAR, PHA Group Events

The first example is a response to Attachment 1 line items:

· USAR, PHA, group event, tier 1

· USAR, PHA, group event, tier 2

· USAR, PHA, group event, tier 3 These are the same line items shown in the picture within 1.0 Tiered Pricing Structure. The process that is utilized to develop pricing for USAR, PHA, group event, tier 1 is as follows. The Government will purchase a minimum of the PHAs. The fixed unit price provided by the vendor in response to Attachment 1 must be “per service”. For example, if the line item fixed unit price for tier 1 is $10 and the Government orders 35 PHA exams, the total price for the event is $10 * 35 = $350. If the line item fixed unit price for tier 1 is $10 and the Government orders 40 PHA exams, the total price for the event is $10 * 40 = $400. The Government will evaluate the Offeror’s fixed unit price.

USAR, PHA, group event, tier 2 provides the same service but at a higher volume ordered by the Government than tier 1. For example, if the line item fixed unit price for tier 1 is $10, the expectation is that the line item fixed unit price for tier 2 will be a lower price. If the fixed unit price for tier 2 is $9 and the Government orders 41 PHA exams, the total price for the event is $9 * 41 = $369. If the fixed unit price for tier 2 is $9 and the Government orders 80 PHA exams, the total price for the event is $9 * 80 = $720.

USAR, PHA, group event, tier 3 provides the same service but at a higher volume ordered by the Government than tier 2. For example, if the line item fixed unit price for tier 2 is $9, the expectation is that the line item fixed unit price for tier 3 will be a lower price. If the fixed unit price for tier 3 is $8 and the Government orders 81 PHA exams, the total price for the event is $648. If the fixed unit price for tier 3 is $8 and the Government orders 100 PHA exams, the total price for the event is $8 *100 = $800.

2.2 Example 2 – USAR, PHA Group Events with “Cancellation” or “No-Show” The definitions and instruction for “cancellation” and “no show” can be found within section C.2.2.1.6.

Attachment 1 includes line items for PHA group event cancellation and no-show. The second example provides direction on how PHA groups will be priced if a cancellation and/or no-show occurs.

The Government orders 41 group event PHA exams (making it tier 2) with a fixed unit price of $9. The expected price is $9 * 41 = $369. Prior to the event, the Government cancels 2 of the PHA exams which lowers the order to 39. In this case, the Government will pay the PHA group event cancellation fee that is proposed by the Offeror. The appropriate cancellation fee line item found within Attachment 1 is depicted below. If the cancellation fee is $2, the Government will pay $2 * 2 = $4 for this example. Additionally, the cancellation of 2 PHA exams lowers the volume into tier 1. Therefore, the total price of the event in this example is ($10 * 39) + ($2 *2) = $394.

The Government orders 41 group event PHA exams (making it tier 2) with a fixed unit price of $9. The expected price is $9 * 41 = $369. At the conclusion of the event, there is a total of two (2) no-shows. In this case, the Government will pay the PHA group no-show fee that is proposed by the Offeror. The appropriate no-show line item found within Attachment 1 is depicted below. If the now show fee is $4, the Government will pay $4 * 2 = $8 for this example. Additionally, the no-show of 2 PHA exams lowers the volume into tier 1. Therefore, the total price of the event in this example is ($10 * 39) + ($4 * 2) = $398.

It may be the case that a PHA exam group event occurs in which both cancellations and no-shows occur. For example, if the Government orders 41 group event PHA exams (making it tier 2) with a fixed unit price of $9, the expected price is $9 * 41 = $369. If at the conclusion of the event, there are two (2) cancellations and two (2) no-shows, the Government will pay the PHA group cancellation fee and the no show fee that are proposed by the Offeror. If the cancellation fee is $2 and the no-show fee is $4, the Government will pay ($2 * 2) + ($4 *2) = $12. Additionally the cancellation of two (2) exams and the two (2) no-shows lowers the volume into tier 1. Therefore, the total price of the event in this example is ($2 * 2) + ($4 *2) + ($10 * 37) = $382.

2.3 Example 3 – USAR, PHA Group Events with Increase in Services Once the Group Event voucher and/or authorization letter have been approved, the Government may request an increase in the quantity of services. For example, if the Government orders USAR, PHA Group Event with a quantity of 40, the Government may request an increase in the quantity less than 14 calendar days prior to the scheduled Group Event date. The vendor will have the right to accept or decline the increase. However, the vendor must provide a response within 24 hours of the Government request. For example, if the Government requests an additional 10 USAR, PHA Group Event services (in addition to the previously approved Group Event quantity of 40), the vendor may accept or decline, but the vendor must provide the response within 24 hours. Section C.2.2.1.9 provides additional instruction on Scheduling Group Events. Further, if the vendor accepts the additional 10, the tier of performance will shift from tier 1 to tier 2. Any additional changes within 14 calendar days prior to the scheduled Group Event date are subject to a cancellation and/or no-show fee.

2.4 Example 4 – Overlapping Tiered Services

The Government may order more than 1 type of tiered service for a specific Service member. For example, the Government may order both a USAR, PHA Group Event service and a “Dental Exam, Comprehensive Oral Evaluation, Group Event” (found within Attachment 1) for a particular Service member. In such a situation, it is expected that the Service member will receive both services. If the planned services for that Service member are canceled, the Government will pay two cancelation fees. In the aforementioned example, the Government will pay a cancellation fee for both USAR, PHA Group Event and Dental Exam, Comprehensive Oral Evaluation, Group Event. If the planned services for that Service member are a “no-show”, the Government will pay two no-show fees. In the aforementioned example, the Government will pay a no-show fee for both USAR, PHA Group Event and Dental Exam, Comprehensive Oral Evaluation, Group Event.

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