N00019-10-R-0069-0003.doc

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION F - DELIVERIES OR PERFORMANCE

The following have been added by reference:

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

The following have been modified:

1) XX62AD (duplicated numbering) --> changed to XX62AE

2) Added SLINs AG-AK to 1640

3) 0505 (duplicated) -- changed to 0507

4) Revised CLINs 1528, 1550

5) NAS Fallon CLINs revised to “reserved”

1/21/2011

under/Amendment 0003)

SECTION L - INSTRUCTIONS, CONDITIONS AND NOTICES TO BIDDERS

The following have been modified (See yellow highlights):

L-1 PROPOSAL INSTRUCTIONS

PART B SPECIFIC INSTRUCTIONS

5.0

VOLUME 5 – PRICE

5.1 Volume Content

a. This Volume shall contain the information requested below and shall include a copy of Exhibit B with the Contract Line Item (CLIN) and Sub-CLIN (SLIN) Unit Prices and for evaluation purposes, the Total Prices filled in (Supplies and/or Services and Prices and/or Costs) using the estimated quantities value in the solicitation and the instructions below. Offeror's labor classifications should cross-reference to Department of Labor (DOL) wage determination classifications. In addition, the Offeror shall provide a percentage breakdown of the Contractor indirect costs and burdens added to the Government estimates for any and all Cost Reimbursable CLINs in Exhibit B of this document.

b. All price and price supporting information shall be contained in Exhibit B and the price/cost proposal. No cost or pricing information shall be included in any other non-price volumes including cover letters. Offerors are responsible for submitting sufficient information to enable the Government to fully evaluate their price/cost proposal.

c. The following is a list of the RFP Price Attachments that the Offeror shall utilize to provide cost information as required for this Volume:

RFP Price Attachment 113 Prime Contractor Cost Summary

RFP Price Attachment 114 Subcontractor Cost Summary

d. The proposal provided by the Offeror shall be constructed in the following format and shall contain all data/information applicable to the entire contract to include all contract options.

Section 1 – Proposed Price/Cost

Section 2 – Contractor Rates

Section 3 – Firm Fixed Price (FFP) CLINs

a) Ground Rules and Assumptions

b) Contract Price for Fixed Price Labor

RFP Price Attachment 113 Prime Contractor Cost Summary

RFP Price Attachment 114 Subcontractor Cost Summary

c) Other Cost Impacts for Fixed Price Labor

Section 4 – Labor Hour (LH) CLINs/SLINs

b) Contract Price for Labor Hour Labor

c) Other Cost Impacts for Labor Hour Labor

Section 5 – Cost Reimbursement (CR) CLINs/SLINs

a) Ground Rules and Assumptions

b) Contract Cost for Cost Reimbursement CLINs/SLINs

c) Other Cost Impacts for Cost Reimbursement CLINs/SLINs

Section 6 – Cost Plus Fixed Fee (CPFF) CLINs

b) Contract Cost for Cost Reimbursement CLINs

c) Other Cost Impacts for Cost Reimbursement CLINs

Section 7 – Evaluated Price

5.2 Ground Rules and Assumptions:

a. As this is a competitive acquisition with adequate price competition anticipated, the price documentation requested is not considered cost or pricing data and shall not be certified in accordance with FAR 15.406-2. Should adequate price competition not exist after receipt of proposals, the PCO reserves the right to obtain cost or pricing data pursuant to FAR Part 15.

b. The cost of general purpose items required to conduct normal business operations shall not be considered allowable Other Direct Charges in the performance of this contract. The following types of general purpose costs required to conduct normal business operations are not directly reimbursable: the cost and associated costs for telephones and telephone charges (except for project-related telephone charges for performance of this contract which, per contractor's DCAA-approved accounting system, may be directly reimbursed under communication expenses), modems, typewriters, reproduction machines, word processing equipment, personal computers, computer software, Internet access charges, facsimile machines, commercial carrier charges, pagers, and other general purpose office equipment and office supplies.

c. The burden of proof for price credibility rests with the Offeror. The Offeror shall provide an explanation of all ground rules and assumptions that affect the price estimates. Any apparent imbalances in the pricing, high or low proposed prices as compared to historical data, or any other anomalies should be fully explained. Topics to be addressed include, but are not limited to, investments, programmatic variables (e.g., inflation/escalation, location, make/buy decisions, prime/subcontractor relationships, and business base concerns), etc.

d. The Government is not soliciting any investments. However, in order to properly assess the proposed price that appears low due to a corporate decision proposed by the Offeror to absorb costs, e.g. lower than usual burdens or rates, the Offeror shall propose a clause which specifically states the fiscal adjustment and identifies the Offeror’s liability. This clause shall be incorporated into the contract and shall be contractually binding clause.

e. The Offeror shall prepare and submit the cost/price proposal narrative substantiation and rationale in MS Office 2003 Word format and any numerical data in a Microsoft Excel 2003 format on CD-ROM. Files received in a format other than requested are unacceptable. Portable Document Format (PDF) is not acceptable, except when provided in addition to Microsoft Word or Excel formats. Numerical data presented in MS Office format must not be pictorial (i.e. pasted as a picture out of a MS Excel file) and show formulas when presented in MS Excel as applicable. The proposal shall be unprotected and unlocked, with formulae intact to show mathematical operations.

5.3 Price/Cost Proposal Instructions:

Section 1 - Proposed Price

The Offeror shall include a copy of Exhibit B with the Contract Line Item (CLIN) and Subcontract Line Item (SLIN) Unit Prices and the Total Prices filled in by the Offeror using the quantities in the solicitation and the instructions below. Exhibit B prices shall be provided separately in one (1) digital data copy in Microsoft Excel format on CD-ROM media. Exhibit B total prices shall be the product of the provided estimated quantity and the proposed unit price.

Section 2 – Contractor Rates

Offeror shall provide rate information used in the proposal in this section. Due to the proprietary nature of company rates, this information may be presented separately for each Offeror and principal subcontractor.

Direct Rates: The Offeror shall provide the most current direct labor rates, for both the Offeror and the principal subcontractors that are in effect at the time of proposal submission. The Offeror shall use and submit Forward Pricing Rate Agreements (FPRAs), Collective Bargaining Agreements (CBAs), and Area Wage Determinations (AWDs) if applicable, in pricing the Price Volume. The Offeror shall identify whether the labor rates proposed are FPRAs, CBAs, AWDs, ACO/DCAA recommended rates, or Offeror proposed rates. The Offeror shall propose in compliance with the CBAs and AWDs (Attachments 4 through 8) current hourly rate set forth in the Department of Labor Wage Determinations, and shall not be escalated for adjustments under the Service Contract Act.

Indirect Rates: The Offeror shall identify the indirect rates, for both the Offeror and the principal subcontractors, used in the proposal. The Offeror shall identify whether the indirect rates proposed are FPRAs, CBAs, AWDs, ACO/DCAA recommended rates, or Offeror proposed rates. The Offeror must provide a schedule which contains the proposed burden rates by year for material, direct labor overhead, General and Administrative expense, and any other applicable burden applied to direct cost elements. In addition, provide summary-level definitions for each major indirect rate account, explaining what costs are included in each overhead pool. The indirect accounts may include, but are not limited to, engineering overhead, manufacturing overhead, general and administrative (G&A), material handling overhead, and Cost of Money (COM).

Cost to Sell Equations: The Offeror shall submit the methodology used to transfer the cost data (i.e., direct labor hours) into a sell cost to the Government (i.e., fully burdened with fee). This includes the sequence in which indirect rates, profit, etc. were applied to direct costs to determine the sell cost. Include the base against which each of the overhead pools is applied in this description.

Section 3 – Firm Fixed Price (FFP) CLINs

a. Ground Rules and Assumptions for Fixed Price CLINs

The Offeror shall provide an explanation of all ground rules and assumptions that affect the cost estimates.

b. Contract Prices for Fixed Price CLINs/ SLINs

The Offeror shall show reasonableness and consistency between the Maintenance Management Approach and Price Volumes. Demonstrate that the unit prices and the total evaluated price are reasonable and are commensurate with the work required by the solicitation and the technical and management approaches identified in the Maintenance Management Approach volume of the proposal. Offeror's labor classifications should cross-reference to Department of Labor (DOL) wage determination classifications.

Provide the proposed cost for each CLIN/SLIN using RFP Price Attachments 113 and 114. The Offeror shall identify the proposed costs by CLIN/SLIN and by Work Center using RFP Price Attachments 113 and 114. When applicable, the Offeror shall utilize the same manning information proposed in Annex B, RFP Manning Attachment 112, contained in the Maintenance Management Approach volume. Any inconsistency between promised performance and price should be explained in the proposal as well as any appearance of unbalanced pricing.

c. Other Cost Impacts for Fixed Price Labor

Identify and substantiate, in the Offeror’s own format, other cost adjustments that may impact the proposed cost not previously identified.

Section 4 – Labor Hour (LH) CLINs/SLINs

a. Ground Rules and Assumptions Labor Hour (LH) CLINs/SLINs

The Offeror shall provide an explanation of all ground rules and assumptions that affect the cost estimates.

b. Contract Price for Labor Hour CLINs/SLINs

The Offeror shall show reasonableness and consistency between the Maintenance Management Approach and Price Volumes. Demonstrate that the unit prices and the total evaluated price are reasonable and are commensurate with the work required by the solicitation and the technical and management approaches identified in the Maintenance Management Approach volume of the proposal. Offeror's labor classifications should cross-reference to Department of Labor (DOL) wage determination classifications as much as possible.

Provide the proposed cost for each CLIN/SLIN using RFP Price Attachments 113 and 114. The Offeror shall identify the proposed costs by CLIN/SLIN and by Work Center using RFP Price Attachments 113 and 114. When applicable, the Offeror shall utilize the same manning information proposed in Annex B, RFP Manning Attachment 112, contained in the Maintenance Management Approach volume. Any inconsistency between promised performance and price should be explained in the proposal as well as any appearance of unbalanced pricing.

c. Other Cost Impacts for Labor Hour CLINs/SLINs

Identify and substantiate, in the Offeror’s own format, other cost adjustments that may impact the proposed cost not previously identified.

Section 5 – Cost Reimbursement (CR) CLINs/SLINs

a. Ground Rules and Assumptions for Reimbursement (CR) CLINs/SLINs

The Offeror shall provide an explanation of all ground rules and assumptions that affect the cost estimates.

b. Contract Cost for Cost Reimbursement CLINs/SLINs

In MS Excel 2003 file entitled “Eval Section B” defined in Section 7 below , the proposed cost of CLINs/SLINs XX21-XX23, XX42-XX44, XX61, and XX62 shall be the Government estimated unit cost. For CLINs/SLINs XX22 and XX43, the Offeror shall provide a spreadsheet that clearly shows the total mark-up/burden rate, including the applicable subcontractor mark-ups/burdens, and the individual cost elements that make up the total mark-up/burden rate.

c. Other Cost Impacts for Cost Reimbursement CLINs/SLINs

Identify and substantiate, in the Offeror’s own format, other cost adjustments that may impact the proposed cost not previously identified.

Section 6 – Cost Plus Fixed Fee (CPFF) CLINs

a. Ground Rules and Assumptions for Cost Plus Fixed Fee (CPFF) CLINs

The Offeror shall provide an explanation of all ground rules and assumptions that affect the cost estimates.

b. Contract Cost for Cost Plus Fixed Fee (CPFF) CLINs

Provide the proposed cost for each CLIN/SLIN using RFP Price Attachments 113 and 114. The Offeror shall identify the proposed costs by CLIN/SLIN and by Work Center using RFP Price Attachments 113 and 114. When applicable, the Offeror shall utilize the same manning information proposed in Annex B, RFP Manning Attachment 112, contained in the Maintenance Management Approach volume. The Offeror shall substantiate the proposed CPFF with a detailed Basis of Estimate (BOE). Offerors shall provide their respective fee for each CLIN in their proposal.

c. Other Cost Impacts for Cost Plus CLINs

Identify and substantiate, in the Offeror’s own format, other cost adjustments that may impact the proposed cost not previously identified.

Section 7 - Evaluated Price:

For evaluation purposes, the Offeror shall submit a MS Excel 2003 file entitled “Eval Section B” which contains a complete Exhibit B, as it will be evaluated by the Government, in accordance with the definitions in this section. The Offeror shall sum up the proposed Total Evaluated Prices by contract quarter, and provide a total overall evaluation price using estimated quantities.

The evaluation will not bind the Government to purchase any of the options. The total evaluated price is the sum of the Base Quarter CLIN/SLINs and all corresponding Option CLIN/SLINs as defined below:

1. The Total Prices for Fixed Price CLINs XX02-XX05, XX25-XX28, XX46-XX51 is defined as the average of all SLINs’ extended prices within each respective CLIN.

Example calculation for fixed price CLINs XX02-XX05, XX25-XX28, XX46-XX51.

Evaluated Price = (Xa + Xb + Xc + Xd + Xe + Xf + Xg) / 7

Evaluated Price = (Xa + Xb + Xc + Xd) / 4

2. The Total Prices for Fixed Price CLINs XX19, XX40 and XX59 is defined as the average of the Option SLINs’ extended prices.

3. The Total Price for Fixed Price and Labor Hour CLINs 0001, XX06-XX12, XX14-XX18, XX20, XX29-XX33, XX35-XX39, XX41, XX52-XX58, and XX60 is defined as the sum of the Offeror’s proposed total prices. The Total Price for each CLIN is equal to the sum of the extended price for the CLIN plus the extended price(s) for all relative SLINs. The extended price is defined as the proposed unit price or rate multiplied by the Estimated Quantity for that CLIN/SLIN.

4. The Total Price for Cost Reimbursable CLINs/SLINs XX21-XX23, XX42-XX44, XX61, and XX62 is defined as the Government Estimated Cost identified in Exhibit B. For evaluation purposes only for CLINs/SLINs XX22 and XX43, the Government will adjust the total estimated cost to include any proposed mark-ups/burdens.

5. The Total Price for the Cost Plus Fixed Fee CLINs XX13, XX34, and 0166 is defined as the estimated cost plus the proposed fee (dollar amount). For the sum of the CPFF CLINs, the evaluated cost will include the Offeror’s proposed cost or Government’s Most Probable Cost (utilizing the Offeror’s proposal dollar amount of fee), whichever is higher.

5.4 Use of Government Furnished Equipment:

If the Offeror proposes/requires the use of Government Furnished Equipment (GFE) or Government Furnished Information (GFI) not already identified in the PWS then the Offeror shall provide:

a.

A complete description of the required GFE/GFI including part number and serial number, if applicable b.

Where the GFE/GFI is to be located c.

The name, organization, complete address and telephone number of a cognizant Government point of contact d.

In the case of GFE/GFI accountable to other Government contracts, a copy of the correspondence authorizing use of such GFE/GFI on this contract e.

The monetary impact to the Offeror’s proposal if the proposed GFE/GFI is not provided as GFE/GFI f.

If none, so state

SECTION M - EVALUATION FACTORS FOR AWARD

The following have been modified (See yellow highlights):

M-1 FACTORS FOR AWARD

M-1

FACTORS FOR AWARD

II. SPECIFIC INFORMATION

A. Management AND Maintenance Approach

The Government will assess the Offeror’s Management and Maintenance Approach with respect to its compliance with the solicitation requirements and proposal risk associated with the Offeror’s approach. Emphasis will be placed on evaluation of the proposed Management and Support Approach, Manning, Performance Measurement Framework Metrics, and Quality Control Program Plan, at each site. The evaluation will also include an assessment of approaches the Offeror takes to maximize contract performance as proposed by their Management Information System, Subcontract Management, On-Site Component Repair, Supply Support, T-6 Stand Up plans for Corpus Christi, Transition (In to and Out of) full performance and strategy for utilizing Small Business, Women-Owned Small Business, HUB Zone Small Businesses, Veteran-Owned Small Business, Service-Disabled Veteran-Owned Small Business concerns and Historically Black Colleges/Universities and Minority Institutions (HBCU/MI) as well as its consistency with the proposed Small Business Subcontracting Plan (if applicable).

B. PAST PERFORMANCE

The Government will evaluate the Offeror’s, and (if applicable) its principal subcontractors’, critical subcontractors’ and team members’ demonstrated past performance in delivering quality products and services in each of the following areas: 1) meeting technical requirements, 2) meeting schedule requirements, 3) controlling contract cost, and 4) managing the contracted effort, on relevant similar programs to the T-34/T-44/T-6 CLS program. The currency and relevance of the information, source of the information, context of the data, and general trends in the contractor’s performance will be considered. Problems not addressed by the Offeror will be considered to still exist. However, consideration for discounting problems may be given when those problems are addressed through demonstrated systemic improvement. The degree to which the Offeror can demonstrate that it has successfully applied continuous systemic improvement to resolve past performance problems will be evaluated.

C. EXPERIENCE

The Government will evaluate the Offeror’s and (if applicable) its principal subcontractors’, critical subcontractors’ and team members’ demonstrated recent and relevant experience on the basis of its breadth, depth and similarity to the work required to meet the T-34/T-44/T-6 CLS program requirements. Each Offeror including its principal subcontractors, critical subcontractors and team members will be evaluated on the extent to which the Offeror obtained similar or otherwise recent and relevant experience on contracts or subcontracts performed for products or services similar in scope, dollar value, nature and complexity as those under this solicitation. Experience in the following areas will be evaluated: 1) Management, including Program Management and Subcontractor Management, 2) Aircraft Maintenance and Flight Operations T-34, T-44 and T-6 or similar type aircraft, 3) Depot Level work (Airframes and components, engines, and propellers), 4) Organizational/Intermediate level Aircraft Modifications, 5) Material and Supply Management, and 6) Component Repair.

D. PRICE

The Firm Fixed Price (FFP) CLINs (0001, XX02-XX09, XX16-XX20, XX25-XX31, XX37-XX41, XX46-XX55, XX58-XX60), the Labor Hour (LH) CLINs (XX10-XX15, XX32-XX36, and XX56-XX57), the Cost Reimbursable CLINs (XX22 and XX43), and the Cost Plus Fixed Fee (CPFF) CLINs (XX13, XX34, and 0166) shall be evaluated to determine if the CLINs are complete and contain no material imbalances. The CPFF CLINs shall also be evaluated to determine if they are realistic, reflect a clear understanding of the solicitation requirements, and are consistent with respect to the Offeror’s Management and Maintenance Approach. The LH and Cost Reimbursable CLINs (XX22 and XX43) shall also be evaluated for reasonableness. For FFP and LH CLINs, inconsistencies between the Management and Maintenance Approach and Price proposals may be assessed as proposal risk under the Management and Maintenance Approach factor evaluation. In its evaluation, the Government may use commercial published data, same or similar DoD contracts, Government estimates, industry standards, DCAA audit information, or other information as deemed appropriate by the Government. In addition, adjustments will be made for evaluation purposes to include all Government costs required to accomplish the Offeror’s proposed approach with the exception of those costs to the Government that are equal across all Offerors (e.g. additional Government-Furnished Equipment/Government-Furnished Information required by the Offeror to implement its approach). For CPFF CLINs, adjustments to the proposed costs based on the Government’s realism assessment may be made for evaluation purposes to determine the Most Probable Cost (MPC).

The evaluation will not bind the Government to purchase any of the options. The total evaluated price is the sum of the Base Quarter CLINs and all corresponding Option CLINs/SLINs as defined below:

1. The Total Prices for Fixed Price CLINs XX02-XX05, XX25-XX28, XX46-XX51 is defined as the average of all SLINs’ extended prices within each respective CLIN.

2. The Total Prices for Fixed Price CLINs XX19, XX40 and XX59 is defined as the average of the Option SLINs’ extended prices.

3. The Total Price for Fixed Price and Labor Hour CLINs 0001, XX06-XX12, XX14-XX18, XX20, XX29-XX33, XX35-XX39, XX41, XX52-XX58, and XX60, is defined as the sum of the Offeror’s proposed total prices. The Total Price for each CLIN is equal to the sum of the extended price for the CLIN plus the extended price(s) for all relative SLINs. The extended price is defined as the proposed unit price or rate multiplied by the Section B Estimated Quantity for that CLIN/SLIN.

4. The Total ceiling for Cost Reimbursable CLINs/SLINs XX21-XX23, XX42-XX44, XX61, and XX62 is defined as the Government Estimated Cost identified in Schedule B. For evaluation purposes only of CLINs/SLINs XX22 and XX43, the Government may adjust the total estimated cost for realism to include any proposed mark-up/burdens.

5. The Total Price for the Cost Plus Fixed Fee CLINs XX13, XX34, and 0166 is defined as the estimated cost plus the proposed fee (dollar amount). For the sum of the CPFF CLINs, the evaluated cost will include the Offeror’s proposed cost or Government’s Most Probable Cost (utilizing the Offeror’s proposal dollar amount of fee), whichever is higher.

III. DEFINITIONS

A. EVALUATION RATINGS AND RISK ASSESSMENT DEFINITIONS –

EVALUATION RATINGS DEFINITIONS

Compliance Ratings: The ratings reflect the Government's assessment of solicitation compliance and the expected results, based on the Offeror's proposed approach.

Rating

Definition

RISK ASSESSMENT DEFINITIONS

PROPOSAL RISK

Proposal Risk: The proposal risk assignments reflect the Government’s assessment of potential impact on schedule, cost, and performance based on implementation of the Offeror’s proposed approach.

Risk

Definition

PERFORMANCE RISK (for Past Performance and Experience)

Performance Risk: The performance risk assignments reflect the Government’s assessment of future performance based on past performance or experience.

Risk

Definition

B. OTHER EVALUATION DEFINITIONS -

1) Whether it is the type of cost generally recognized as ordinary and necessary for the work to be performed;

2) The contractor’s responsibilities to the Government.

(End of Summary of Changes)