Questions_and_Answers_to_DRAFT_RFP.pdf

Questions and Answers to “DRAFT” RFP

1. Ref -Solicitation HTC711-14-R-C003 PWS, Section 1 Scope of Contract page 3 of 21; The PWS states work will take place in Continental U.S. + other destinations,(i.e. Mexico, Canada, or Puerto Rico . The synopsis states Continental U.S. and other locations (Alaska, Puerto Rico and Canada) Can you confirm which is correct?

A: Locations can include Alaska, Mexico, Canada, or Puerto Rico

2. Ref Solicitation HTC711-14-R-C003 PWS, Section 2 General Requirements sub sec (a) page 3 of 21; DOD approved by AMC, either FAA part 135 or 121 certified; Can a 121 certified cargo carrier bid on 135 certified cargo CLIN's?

A: Any carrier with a contract can offer on requirements if the carrier has a fair, reasonable and realistic NTE rate for the aircraft or aircraft category offered.

3. Ref Solicitation HTC711-14-R-C003 Section Addendum to FAR 52.212-1 page 20 paragraph 12 sub (a)(2);

proposal due date 4:00pm CDT 25 April 2014, will this date be extended?

A: We do not anticipate that the proposal due date will be extended.

4. Ref Solicitation HTC711-14-R-C003 Section IV Pricing Proposal sub (a) page 23; will the NTE also be applied to the ferry miles as with USTRANSCOM Expansion missions?

A: Carriers Not-to-Exceed Rate (NTE) should include all the miles to include ferry miles.

5. Part I – Business Proposal (g)- What is the purpose of providing documentation of CARB Approval? Our understanding is that you cannot be awarded contracts until you are approved. Are you planning a change to the rules?

A: Civil Reserve Airlift Board (CARB) documentation is required to provide proof a carrier has been approved by the CARB. A non-approved carrier will not be awarded a contract until they have been CARB approved. For a non-approved carrier, the government must find, based on the data (contained in Appendix 5, 6, & 7) submitted in its proposal, that an offeror can reasonably achieve DoD certification within 6 months of the closing date.

6. Part IV – Pricing Proposal- What is the purpose for providing the Pricing Matrix (NTE Provision) and how does USTRANSCOM intend to use it?

A: The NTE pricing matrix will be used to determine a Total Evaluated Price (TEP). Also, contracted NTE rates will be used to compare individual offered prices at the Task Order Level to determine price is within the NTE rate.

NTE rates will be determined fair, reasonable and realistic at the IDIQ level.

6a. Will USTC define the specific terms (fuel price, ferry component, origin/destination, load factor, seasonality, etc.) under which NTE rates are to be established and provided?

A: USTC will not define specific terms. NTE rates need to include any factor the individual carrier would consider when planning to fly at the individual mile segments. However, pegged fuel price $3.73 stated in TRANSFAR clause 5552.216-9001 should be used to determine the cost of fuel.

7. What are the benefits or consequences of having a High NTE or Low NTE?

A: A High NTE rate may lead to an unfair, unreasonable and unrealistic price causing an offeror to not receive a contract. A Low NTE may lead to an unfair, unreasonable and unrealistic price meaning the carrier may not fully understand the requirements. The offeror will be held to the contract NTE and task order bids will be compared on individual requirements. This may lead to a carrier operating at a loss on the task order or unable to offer on task orders.

8. How will you make a comparison of actual circumstances with respect to an individual actual flight and the NTE that is provided?

A: The NTE rate will be compared to the offer on the individual requirement on a per mile basis. (Example: Trip cost $100,000 / 1,000 total miles flown = $100/per mile vs. the NTE rate on file)

9. What is the logic of averaging two different aircraft type NTEs?

A: Averaging the NTE rate for FAA Part 121 carrier aircraft will be used only to calculate a Total Evaluated Price (TEP). The average price is for evaluated purposes only.

10. Is the NTE intended to be adjusted as Fuel Prices Change?

A: NTE is adjusted in accordance with the GII rate stated under Instruction to Offerors - Part IV-Pricing. Proposed NTE rates should use the Fuel Pegged Rate of $3.73 stated in TRANSFAR clause 5552.216-9001.

11. On a go-forward basis, how will the bidding process be affected (by the Pricing Matrix/NTE) and how will the data provided influence it?

A: The NTE rate will be compared to the offer on the individual requirement on a per mile basis. (Example: Trip cost $100,000 / 1,000 total miles flown = $100/per mile vs. the NTE rate on file)

12. What is the definition of “Fair and Reasonable” as it relates to the Pricing Matrix/NTE?

A: The Government will perform a price analysis using one or more techniques set forth in FAR 15.404-1(b)(2) to determine prices are fair, reasonable and realistic. Realism of the NTE rates will be based on an evaluation of those rates to determine if the offeror clearly understands the requirements as demonstrated in its unique proposed approach.

13. If submitted rates are found to be Unfair and Unreasonable, will the carriers be afforded an opportunity to revisit rates and resubmit?

A: If NTE rate is considered unfair, unreasonable or unrealistic, and the government determines a competitive range and enters into discussions. At this point the offeror may have an opportunity to revise it pricing. Offeror should make its best price at the time of proposal. If the government receives enough offerors with fair, reasonable and realistic pricing which meet all the technical requirements and past performance criteria; the government may not go into discussions. All other carriers will not be afforded an opportunity to revise their prices or be eligible for award.

14. What is the basis for the Inflation Calculation you have made in the Pricing Matrix?

A: Inflation calculation is based off the Global Pricing Insight Index (GII). The index categories from GII will be for NAICS codes 481211, Nonscheduled Chartered Passenger Air Transportation, and 481112, Scheduled Freight Air Transportation.

15. Do you intend to adjust to actual inflation and Fuel Price variations?

A: Fuel Adjustments will be made in accordance with TRANSFAR clause 5552.2126-9006.

15a. What if we experience hyperinflation during the five year term?

A: Fuel Adjustments will be made in accordance with TRANSFAR clause 5552.2126-9006.

16. How will you take into account trips with multiple destinations when evaluating bids for these types of requirements against the Pricing Matrix? i.e. KGRK-KVCV-KTCM

A: Requirement will be compared on a per mile cost. Offeror will submit a total price to include all miles flown to determine a per mile comparison.

17. Will there be a PEG Fuel Price?

A: Fuel Pegged Rate of $3.73 stated in TRANSFAR clause 5552.216-9001

18. Paragraph (2) (a) refers to “A sample report format labeled, “Monthly Fuel Report Summary” is provided as an attachment to the contract.” We did not see any such attachment. Please provide an example of this sample report and an explanation of how any Economic Price Adjustment or fuel reconciliation would work.

A: A Monthly Fuel Report Summary will be attached to PWS and posted on FBO. This report will only apply to Task Orders 12 months or more in length.

19. What is the reasoning behind using the same reliability percentage for both Passenger and Cargo missions?

It appears that there is an intention to adopt the same delay criteria as found in the International Airlift Services agreement.

How do you justify basing the 3 month reliability percentage on only 10 or more missions? (2.3 d Carrier Performance) o Mathematically, it requires a carrier to have flown at least 19 missions to be able to achieve a 95% reliability level against one delay (18 ÷ 19 = 94.7%).

o If a carrier incurs 1 delay and needs to have operated at least 19 missions in the 3 month period to achieve 95%, why would they need to operate less than 10 to be evaluated on a “case by case basis”?

o Furthermore, why is 40 missions in a rolling-three month period not the proper threshold to go to a “case by case basis”?

A: Question will be addressed before release of final solicitation and highlighted in cover letter.

20. Item's #0005, 1005, 2005, etc for Part 121 Cargo, there appears to be a large variation for 1005 @ over 680K miles (quantity) vs. all the other ones @ 19,001 miles. Please confirm if this correct or a mistake.

A: This is a clerical error. The mileage on CLIN 0005,1005, & 2005 have been updated to reflect 19,001.

21. Additionally, if the above is truly only 19,001 is this reflective of the historical opportunity of cargo operations planned for the future also. There just has not been much cargo business domestically.

A: The 19,001 miles is an estimated workload to reflect potential requirements.

22. How will this projected not-to-exceed rate be applied for future missions and application to ferry positioning on front/back side of those missions.

A: Reference answer #4

23. Section: Optional Form 336.

Item No.: 0002 (1002, 2002 and 3002).

Page: ??

Paragraph: Supplies / Services Fuel EPA Reimbursable. States that the Fuel EPA is only applicable to orders equal to or greater than twelve months, and refers to paragraph 10(d) in the PWS.

Is it correct then, that there is no FUEL EPA on any orders that are less than a year?

A: Yes. There is no fuel reimbursement for fuel for task orders less than one year. For adhoc missions the current cost of fuel should be included in bid at Task Order level.

24. Such that we can have a contract without any service schedule agreed to; no definite order amount; no idea of what may be ordered; and we are to determine the cost of fuel that we put into our Firm Fixed Price per mile; and not expect any adjustment for the potential fluctuating price of fuel that may occur; and take the entire risk of fuel prices for providing the service over such a long period of time. How does this work?

A:. This is an Indefinite Delivery Indefinite Quantity (IDIQ) contract. There is only a minimum guarantee and a maximum contract value. Estimated Order quantity is reflected in Attachment 2(FAA Part 121) & Attachment 2(FAA Part 135). The Fuel Pegged Rate of $3.73 stated in TRANSFAR clause 5552.216-9001 should be used to calculate the cost of fuel for the NTE at the IDIQ award. TRANSFAR clause 5552.2126-9006 includes Global Insight Index (GII) to account for the fluctuation in fuel. The Contracting Officer will adjust the NTE as appropriate using the GII rate at time of Option. This will help protect the contractor and government against significant market fluctuations. Actual cost of fuel is known at time of Task Order offers and should be considered in bid price.

25. Are the contracts that come out of this solicitation considered to be issued for a year or more, so the fuel EPA does in fact applies?

A: Only task orders more than 12 months will be allowed a monthly fuel adjustment in accordance with TRANSFAR clause 5552.2126-9006.

26. Does the contract come with zero orders, and whatever orders come throughout the contract term could be for single charters, that would then not allow cost collection by the airline under the fuel EPA for any fluctuating fuel prices above any pegged rate?

A: That is a true statement. Single charters will be competed for an all-inclusive price which will not allow for a fuel adjustment.

27. Why is a Multimodal Alternate included in this solicitation that appears to request charter pricing?

A: TRANSFAR 55552.216-9006-ECONOMIC PRICE ADJUSTMENT FOR SCHEDULED SERVICES –

MULTIMODAL ALTERNATE II (JUL 2013) is to adjust for market fluctuations and to establish automatic increase to each option year for evaluation purposes. The GII adjustment and processes are described within this clause.

28. Is it common for multi-model services to be used under this contract?

A: There are some instances where a carrier may have to use multiple modes of services to perform the requirements however this clause only applies the not-to-exceed rate and any GII adjustment to the NTC on the IDIQ contract.

29. If so, how is the prices offered in the bid;

or how does one come up with adding multi-model into this?

A: Individual requirements are solicited to contracted carriers in which offerors will know exact requirements to offer a price to that requirement.

30. Provisions clauses, Paragraph Addendum to FAI 52.212-1, Instructions to Offerors – Commercial Items. Page 19, Paragraph (1). Should the referenced paragraph be (b)(3)(i) instead of (b)(4)(i)?

A: The reference has been changed to (b)(3)(i).

31. Section: Proposal Preparation instructions Page: 21, Paragraph: Part I (g). Should this read “……approved DoD air carrier for cargo and or passenger service…..”, such that an air carrier could be just a cargo carrier or just a passenger carrier, or both?

A: This paragraph has been updated to reflect the suggested language change.