N0002417R2316_Amendment_0002_.docx

N0002417R2316

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION L - INSTRUCTIONS, CONDITIONS AND NOTICES TO BIDDERS

The following have been modified:

L-9 PROPOSAL REQUIREMENTS

A. PROCESS

Submission Requirements

The Government must receive all copies of the Offeror’s proposal by the time and date specified in Block 9 of Standard Form 33. Additional guidance is provided in the Section L clause L-7, SPECIAL PROPOSAL RECEIPT REQUIREMENTS (NAVSEA) (APR 2015) (MODIFIED) (AUG 2016).

The Offeror shall mark submitted items for mailing and/or delivery as shown below:

Department of the Navy Naval Sea Systems Command

SEA 02234

1333 Isaac Hull Ave., SE Washington Navy Yard DC 20376-0001

RFP N00024-17-R-2316 (UNCLASSIFIED)

Attn: John Sullivan /Rickeyea Singleton Phone: (202) 781-1899 / (202) 7814093

DO NOT OPEN IN MAIL ROOM

Telegraphic offers, facsimile offers, or offers submitted electronically will not be considered. Unless otherwise directed by the Contracting Officer, telegraphic, facsimile, or electronic communications, modifications of offers, or withdrawals of offers will not be considered. Use of USPS for proposal delivery is not advised.

Amendments

Solicitation information and amendments will be made available to the public through FedBizOpps, at www.fbo.gov. Offerors should monitor the FedBizOpps page for this solicitation for amendments and responses to bidder’s questions.

Communications with NAVSEA

Offerors may use the Bidder’s Questions Form provided as Attachment S-1 to submit questions regarding the RFP. Completed Bidder’s Questions Forms shall be submitted by email to John Sullivan and Rickeyea Singleton, at john.j.sullivan3@navy.mil and rickeyea.singleton@navy.mil. To be considered complete, a question must include all information requested in the Bidder’s Questions Form (date, citations, etc.). Only complete questions submitted to both addressees, using Attachment S-1, will be addressed.

Responses to all bidders’ questions received in a timely manner will be made publicly available on FedBizOpps. Therefore, the Navy reserves the right to modify or sanitize the bidders’ questions (including instances of proprietary information); however, Offerors are responsible for ensuring sensitive or proprietary information in their bidders’ questions is clearly identified. At its discretion, the Government may accept and respond to questions up to the solicitation’s closing date and time; however, offerors are advised that questions received more than 20 days after this solicitation’s issue date may not receive a response.

B. GENERAL PROPOSAL GUIDANCE

Comprehensive responses to the requirements of this Request for Proposals (RFP) are required to enable the Government to evaluate the Offeror’s understanding of the stated requirements and the Offeror’s capability and approaches to accomplish them. The contents of the Offeror's proposal will be the primary basis for evaluating the merits of the offer. Accordingly, the Offeror is responsible for providing a sufficiently specific, detailed, and complete proposal that demonstrates a thorough comprehension of the requirements of this solicitation and the ability to perform in accordance with the requirements of the contract resulting from this solicitation.

General statements that the Offeror understands a problem or requirement, or that the Offeror will comply with the terms of the RFP, are insufficient. The proposal must explain the manner in which the Offeror will comply with the requirements of the solicitation.

The Offeror's proposal and this solicitation, as amended but excluding Sections L and M, and all solicitation attachments (completed as necessary) -- will constitute the offer and will indicate the Offeror's unconditional assent to the terms and conditions of this solicitation. Objection to any of the terms and conditions of this solicitation may constitute a deficiency, making the offer unacceptable.

Cross References

Cross-referencing within a proposal volume is permitted where its use would conserve space without impairing clarity. If the Offeror includes a cross-reference in the proposal, the lowest practicable section reference shall be used.

Each volume shall be written as a standalone to the greatest extent possible, minimizing the amount of cross-references to the other volume.

Restriction on Disclosure and Use of Data

Offerors must identify any data in their proposal that is not to be disclosed to the public, or is to be used by the Government for evaluation purposes only. Such data shall be marked in accordance with FAR 52.215-1(e). Page(s), paragraph(s), and/or sentence(s) containing such data must be specifically identified.

C. PHYSICAL FORMAT REQUIREMENTS AND LIMITATIONS

Each proposal must be submitted in accordance with the instructions herein, and nonconformance with the specified required content may constitute a deficiency and/or be cause for rejection of the proposal.

Each proposal to this solicitation must consist of two (2) volumes, submitted as follows:

VOLUME

TITLE

PAGE LIMIT

ORIGINALS

PAPER

COPIES

CDs

The proposal shall be valid for no less than 270 days from the date of RFP closing.

Volumes I and II shall be separately bound. Each volume shall have a cover page clearly identifying the solicitation number, Offeror’s name and address, submission date, volume number and title, and whether the volume is the original or a copy.

Each volume shall begin with the following:

1. Title Page, in accordance with FAR 52.215-1 subsections (c)(2) and (e)(1);

The remainder of each volume shall follow the same general order and organizational structure as provided in the “Proposal Outline” sections below.

Each page of the Offeror’s proposal shall be labeled with the Offeror’s name and the solicitation number, except for the Offeror’s signed cover page to this solicitation and any amendments, which shall be submitted on plain paper exclusive of any additional markings.

CDs shall be CD-ROM or DVD-ROM formatted and all documents, spreadsheets, databases, or other data submitted must be compatible with Microsoft Word, Microsoft Excel, or submitted as searchable PDF files. The CDs shall follow the same format and organizational structure as the paper copy, with major sections in separate labeled directories. The CDs must contain information identical to the paper copy. All spreadsheets shall contain the formulas used to derive each value, including links to other spreadsheets included in the submission, as appropriate.

In the event that any portion of the proposal is written by someone who is not a bona fide employee of the Offeror, a certificate to this effect shall be signed by a responsible officer of the Offeror and shall show the person's name, employment capacity, the name of his firm, the relationship of that firm to the Offeror's, and the portion of the proposal written by that person.

Format instructions applicable to Volume I

Volume I shall not include any cost or pricing data/information. Any page with cost or price information will be removed in its entirety and may not be evaluated.

A page is defined as one side of a sheet of paper measuring 8 ½ by 11 inches. Any paper larger than 8 ½ by 11 inches is considered a foldout. Each foldout shall be counted as one page, and Volume I shall contain no more than five foldouts. Narrative material in the proposal shall be single-spaced, with 12 point Times New Roman typeface and one inch margins.

Material submitted in excess of the stated page limitation will not be evaluated. The Volume I page limit does not include cover pages, title pages, tables of contents, lists of illustrations, tab pages, resumes, glossaries of abbreviations and acronyms, man-power loading charts, teaming agreements, or the craft/trade staffing plan.

If there are any discrepancies between the hardcopy and the CD version of Volume I, the hardcopy will govern.

Format instructions applicable to Volume II

Hard copies and CDs of Volume II (Cost) must be submitted in sealed envelopes, separate from Volume I (Non-Cost). There is no limitation on foldouts in Volume II (Cost). Each section and subsection shall be identified and tabbed for easy identification.

If there are any discrepancies between the hardcopy and the CD version of Volume II, the CD will govern.

D. VOLUME I – NON-COST PROPOSAL OUTLINE

In addition to the title page, table of contents, and glossary, Volume I shall be organized as follows:

1. Section I: Management

2. Section II: Facilities/Production Capabilities

3. Section III: PSA Execution

4. Section IV: Past Performance

Note 1: The subsection headings, tabs, and bullets below are for organizational purposes only. They are not separately weighted or rated, and are not subfactors.

Note 2: For the purpose of Volume I, a “major subcontractor” is defined as any subcontractor that provides 20% or more of the proposed labor or has a formal teaming agreement signed with the Offeror. If the Offeror has teaming agreements in place (either formal or contingent) that will be utilized in execution of this contract, those teaming agreements shall be provided for review in the non-cost proposal.

Vol. I, Section I: Management

Tab A: Program Management

Provide an integrated comprehensive description of the Offeror’s program management organization depicting authority, functions, and responsibilities for quality assurance, material procurement, and conduct of test and trials. The Offeror shall summarize any current or proposed work sharing and/or teaming agreements that will require the Offeror to subcontract/team with a specific subcontractor for work efforts covered by the contract resulting from this solicitation. The Offeror shall provide a copy of each teaming and/or work sharing agreement. Provide details on the cost and Earned Value Management systems that will be in place to support CDRL requirements.

For the prime and major subcontractors (if applicable), provide: 1) a master program schedule integrating the key design, material ordering, production, test, trials and completion events for both an 8 week and 14 week plus one day availability (if option CLIN 0101 is exercised); 2) plans to integrate subcontractor support into the overall effort, using clear and concise statements of defined roles and responsibilities; and 3) resumes of prospective program managers and other individuals who will comprise the program management team. Resumes are to include the name, education, and work experience of each these individuals. Identify any labor agreements that expire during the stated PSA period of performance, and contingency plans for labor strikes. Provide the ratio of journeymen to apprentices.

Describe the organization and processes proposed to be in place to support availability certification efforts in accordance with Commander, Navy Regional Maintenance Center (CNRMC) letter 4700-091 (Surface Ship Availability Work Certification and Completion Requirements).

Tab B: Quality Assurance

Describe the proposed quality assurance organization, including personnel experience/qualifications, in relation to other PSA organizations, including Program Management, Production, Shipbuilder PSA on-site reps, Navy Ship’s Force, and SUPSHIP/NSA personnel. Describe the same for all major subcontractors and integration of subcontractors’ quality assurance programs. Describe the approach that will be used to verify completion of all PSA work in each compartment and the turnover of each compartment to Ship’s Force during the PSA.

Tab C: Subcontracts

Provide a comprehensive description of the roles and responsibilities of each major subcontractor, including whether any subcontractors will be required to augment the prime contractor’s personnel to support the effort, and if so, in what areas or trades, and what level of training or experience will be required for the increased workforce. Provide the ratio of journeymen to apprentices for each major subcontractor. Provide the plan to integrate and familiarize all subcontractors to the prime Contractor’s PSA execution philosophy and strategy. Lastly, describe the extent of participation of small business concerns and historically black colleges or universities and minority institutions.

Tab D: Material Procurement

For the prime and all major subcontractors, describe the approach to procuring material in support of the PSA, and how emergent Contractor Furnished Material (CFM) requirements will be handled during the PSA. Describe the processes the prime and major subcontractors will use to identify and report outstanding Government Furnished Material (GFM) and CFM that will not support the master program schedule. Describe the process and facilities to manage, store and issue Government Furnished Equipment (GFE).

Tab E: Test and Trials

For the prime and all subcontractors, describe the approach to ensure production work is complete in order to support AEGIS Light Off (ALO)/Start Combat Systems Testing milestone/key event, in accordance with NAVSEA SI 009-117. For the prime and all subcontractors, describe the approach to ensure production work is completed by the PCD milestone/key event in accordance with NAVSEA SI 009-43 to allow Ship’s Force uninhibited access for training and move aboard. Discuss the plan to prepare for and execute a two day Sea Trial event, including the assistance to be provided to the Government for key milestones that are precursors to Sea Trials such as ALO, PCD, LOA, Dock Trials, and Fast Cruise. This description shall include a process for the correction of all PRT deficiencies prior to the completion of PSA.

Vol. I, Section II: Facilities/Production Capabilities

The contractor shall provide the following to support the execution of the DDG 114 PSA. Describe your facility plan for accomplishing the DDG 114 PSA pierside at Naval Station Everett, WA. In addition, due to limited laydown areas for the possible pier assignments A2, A4, B1, B3 the Contractor shall identify alternate location facilities if adequate space is not available on the assigned pier. When Contractor capacity is not available, identify subcontracting effort for facilities that are necessary. The facility plan shall address, at a minimum, the following:

· Offices for the Contractor’s Program management Organization.

· Production Shops.

· Identify secure, controlled environment facilities available for combat systems and electronics equipment.

· Warehouse/storage facilities to accommodate pre-positioning and long lead time material.

· Crane and transportation services.

· Power, compressed air, water, and sewage for PSA industrial effort and for Government and Contractor office facilities.

Develop and provide manpower loading charts (for prime and subcontractors) to execute the DDG 114 PSA for CLINs 0001, 0002, and, if the options are exercised, CLINs 0004 and 0101 (CLIN 0003 not applicable) and all other firm and anticipated work (by hull for Navy work and by major category for other work) depicting proposed manning from start of availability to completion with consideration given to all other firm and anticipated work. Provide a manning plan with a brief explanatory narrative to describe the ability to handle the PSA.

Provide a craft/trade staffing plan during the timeline for DDG 114 PSA performance including actual and projected workload; shifts; staffing levels and manhours.

For proposal preparation purposes, the offerors shall assume that the following will be provided for the execution of the DDG 114 PSA:

· One of the following piers and berths will be assigned for the DDG 114 PSA execution at NAVSTA Everett. Alpha Pier (berth 2 or 4) or Bravo Pier (berth 1 or 3).

· Services (power, potable water, sea water, waste water, compressed air) for the ship and PSA industrial effort on the DDG 114.

· Disposal of solid/liquid hazmat generated during the PSA via PWC.

A base map with the pier names is attached here to as Attachment S-6.

Vol. I, Section III: PSA Execution

Work items included in Attachment S-8, are very similar in scope to specific work items that will be completed during each PSA, provide a deck plate execution plan not to exceed 2 pages. The deck plate execution plan shall include the following: production plan, schedule, anticipated execution challenges, risk mitigation plan, and plan to address environmental issues/concerns.

RALPH JOHNSON (DDG 114) is expected to receive its full application of Passive Counter Measure System (PCMS) tile during the new construction period, however a small amount of repair and or re-application may be necessary due to normal wear and tear or new topside equipment installation. The offeror shall provide the following information regarding their experience with PCMS tile installation and repair:

· Specifics on who will conduct the installation of PCMS material, whether it will be the prime or a subcontractor. Include the name of the organization who will conduct the installation, date of most recent certification, and number of personnel currently certified and recognized by the PCMS ISEA, Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD).

· The Offeror's experience in installing and/or repairing PCMS tile on previous availabilities. Provide examples of previous ships and square footage of PCMS tile that the proposed PCMS installation organization has accomplished.

· Care and protection requirements that will be implemented for PCMS tile that was installed during new construction, as well as PCMS tile that will be installed during the PSA.

Vol. I, Section IV: Past Performance

The Government intends to evaluate two aspects of each offeror’s past performance: relevance and performance. The first is an evaluation of how relevant a recent effort accomplished by the offeror is to the effort to be acquired through this solicitation. Emphasis shall be placed on industrial efforts with significant work package growth that demonstrates the Offeror's ability to successfully accomplish large, dynamic, and intense availabilities within the ships’ homeport while demonstrating schedule flexibility and the ability to manage complex issues. The Government considers the following to be recent/relevant: Any work on Cruise (CG), Destroyer (DDG), Landing Helicopter Assault (LHA), Landing Helicopter Deck (LHD), Landing Platform/Dock (LPD), or Littoral Combat Ship (LCS) Post Shakedown Availabilities (PSAs), Selected Restricted Availabilities (SRAs), Extended SRAs (ESRAs), Drydocking SRAs (DSRAs), Extended DSRAs (EDSRAs), Phased Maintenance Availabilities (PMAs), or Drydocking PMAs (DPMAs) and Fitting Out Availabilities (FOAs), performed within the three years prior to RFP release. Any work not listed in the aforementioned is considered not relevant and will not be evaluated.

The second aspect of the Government’s past performance evaluation is how well the contractor performed on the contracts. The Government intends to evaluate the following elements of performance: management, schedule, technical (quality of product) and cost. As part of this evaluation, the Government intends to review Contractor Performance Assessment Reporting System (CPARS) reports and information (within PPIRS), and any other existing past performance information on relevant contracts.

Each Offeror has the opportunity to provide in its proposal any information regarding its past performance on previous efforts that it would like the Government to consider. Such information may be in the nature of:

· Information which the Offeror considers essential to the Government’s evaluation.

· Explanatory information of substandard or poor performance and the corrective actions taken to prevent a recurrence.

· Examples of availabilities the Offeror has led as a prime contractor where subcontractors comprised 30% or greater of the work force.

The Government reserves the right to determine the relevancy of past performance information and to verify statements and representation made in an Offeror’s proposal. Each instance of past performance provided must be in sufficient detail to enable the Government to do an evaluation in accordance with Section M, and include points of contact to enable the Government to contact persons outside of the Offeror’s organization with knowledge of the Offeror’s Past Performance on that effort.

The Offeror must provide the same past performance information requested above for each major subcontractor.

E. VOLUME II – COST PROPOSAL OUTLINE

In addition to the title page, table of contents, and glossary, Volume II shall be organized as follows:

Section I: Cost Information I-1: Prime Contractor Cost Exhibits I-2: Prime Contractor Estimating Rationale/Cost Proposal Narrative I-3: Subcontractor Cost Data I-4: Other Data Section II: SF 33 Solicitation Set/Model Contract

The order of presentation in the Offeror’s proposal volume shall correspond to the ordering of the appropriate subparagraph discussed below.

Vol. II, Section I: Cost Information

The contractor shall provide all cost information enclosed in a sealed envelope marked “PROPRIETARY INFORMATION NOT TO BE PUBLICALLY DISCLOSED”.

There is no page limitation for Volume II. The cost proposal file provided on CDs shall not be in the "read only" format. The cost proposal shall be contained in one Microsoft Excel file, which shall not be linked to any external data sources. All cells containing derived data shall be presented together with the formulas used to derive the data so that the formulas may be viewed when the cell is selected. The first page of the volume shall be in accordance with FAR 52.215-1, Instructions to Offerors Competitive Acquisition.

The Offeror’s proposal is presumed to represent its best offer to the solicitation. The Navy will analyze the Offeror’s proposal using (but not limited to) cost analysis and cost realism analysis techniques, in accordance with FAR 15.404. Any inconsistency, whether real or apparent, between proposed performance and cost shall be explained in the proposal. For example, if the intended use of new and innovative production techniques is the basis for an abnormally low estimate, the nature of these techniques and the impact on cost shall be fully explained. Any significant inconsistency, if unexplained, may be grounds for rejection of the proposal, or result in the Government adjusting the projected costs to the Government upwards during the cost realism analysis. The burden of proof as to cost credibility rests with the Offeror.

Offerors must round all numbers to the nearest dollar and eliminate rounding errors from their proposals. If Facilities Capital Cost of Money (FCCM) is proposed, the Offeror must submit a completed DD Form 1861, Contract Facilities Capital Cost of Money, in Volume II. If FCCM is not proposed, it shall not be an allowable cost under the contract, and FAR 52.215-17, Waiver of Facilities Capital Cost of Money, will be inserted by the Navy at contract award.

Cost Proposal Assumptions

In order to promote fair and consistent pricing for this procurement, each Offeror must reflect certain assumptions in their cost proposals. Failure to comply with these assumptions may result in the determination that the proposal is non-responsive to the Solicitation and may be grounds for rejection of the proposal.

(a) Instructions for Proposing Fee. The Offeror shall propose a base fee between 0% and 3% (the base fee cannot exceed 3%). The Offeror shall propose an award fee between 0% and 7% (award fee cannot exceed 7%). Fee percentages are to be applied to total cost exclusive of FCCM, if any.

(b) CLINs 0001 and 0101 are completion type. Offers are to submit proposals on the basis of the solicitation’s scope of work.

(c) CLINs 0002, 0003, and 0004 are level of effort (LOE) type. Offerors shall submit proposals on the basis of the LOE hours and material costs outlined in the following table. Offerors shall include any additional indirect burdens (such as G&A), to reflect the Offeror’s accounting system and proposed cost, in addition to the required material dollar amounts for each CLIN listed below and details must be supplied in Attachment S-2.

Assumptions for LOE CLINs

Each CLIN

(d) Historical Production Labor Mix. The Historical Production Labor Mix is the Government estimate of the labor mix required to complete the work for the LOE CLINs 0002, 0003, and 0004. The Government developed this estimate based on historical experience with similar, successfully performed contracts. As such, offerors should note that, while their proposal labor mixes may reasonably deviate from the historical production labor mix, the Government will consider the proposed labor mix and any supporting documentation in its evaluation. The Government will evaluate the labor mix according to the offeror's specific technical approach, but offerors that deviate from this historical production labor mix bear the burden of demonstrating that their labor mix will meet the Government's requirements with their proposed technical approach. Under no circumstances will the Government consider offers whose proposed Section B deviate from the total number of hours listed in Section B of this solicitation for any LOE CLIN.

HISTORICAL PRODUCTION LABOR MIX

(e) Historical Utilization of Overtime. Offerors may assume that 23,925 labor hours (15% of the total LOE) of overtime will be necessary in performance of LOE CLINs 0002, 0003, and 0004. Offerors may further assume that these labor hours for overtime should be proportionally applied across the LOE CLINs and the Historical Production Labor Mix. For example, CLIN 0002 would contain 21,300 labor hours of overtime and the "Shipfitters" trade would contain 1,704 labor hours of overtime.

The Historical Utilization of Overtime is the Government estimate of the overtime required to complete the work for the LOE CLINs 0002, 0003, and 0004. The Government developed this estimate based on historical experience with similar, successfully performed contracts. As such, offerors should note that, while their proposed overtime may reasonably deviate from the historical utilization of overtime, the Government will consider the proposed overtime and any supporting documentation in its evaluation. The Government will evaluate the overtime according to the offeror's specific technical approach, but offerors that deviate from this historical utilization overtime bear the burden of demonstrating that their labor mix will meet the Government's requirements with their proposed technical approach. Under no circumstances will the Government consider offers whose proposed Section B deviate from the total number of hours listed in Section B of this solicitation for any LOE CLIN.

Note that other solicitation instructions pertaining to overtime are still applicable even if offerors adopt the government's historical utilization of overtime estimate. For example, offerors are required to address overtime in their cost proposal narrative as required under "Vol. II, Section I-2: Prime Contractor Estimating Rationale/Cost Proposal Narrative".

Vol. II, Section I-1: Prime Contractor Cost Exhibits

The required contents of the Cost Volume are identified below. The order of presentation in the Offeror’s proposal volume shall correspond to the ordering of the appropriate subparagraph discussed below.

The Offeror shall submit the following cost exhibits, utilizing the Excel file templates provided as Attachment S-2 to the solicitation (see Section J). The Offeror shall identify each cost exhibit, follow the prescribed format, include all requested information, and sequentially number the pages as appropriate. The instructions for each of the required cost exhibits are provided below.

Summary of Attachment S-2 Cost Exhibits

(a) Instructions for Attachment S-2 Exhibit L001 – Total Proposal Contract Value Summary

(1) This cost exhibit displays the Offeror’s proposed price by specified elements of cost over the life of the contract for all priced CLINs (CLINs 0001-0004 and 0101) by Government Fiscal Year (GFY), and cumulative proposed contract value. Each Offeror must provide this cost exhibit for their total contract/proposal value. All subcontractor costs must also be included in the Offeror’s (prime contractor) Exhibit L001. Each subcontractor must be separately listed, regardless of subcontract value. The total price amount for the prime contractor (including subcontract prices) must equal the cumulative total price proposed for the Section B CLINs that require Offeror pricing (0001-0004 and 0101). The specific cost elements shall be adjusted to reflect the Offeror’s accounting system and proposed costs.

(2) The element identified as “Direct Labor” should show only the proposing Offeror’s direct labor cost (i.e., not include subcontractor labor). All Subcontractor costs shall be included in the “Subcontractors” section of this exhibit.

(3) The elements identified as Subcontractor costs must exactly equal the cumulative bottom lines from Attachment S-2 Exhibit L001 submitted by the Subcontractor(s).

(b) Instructions for Attachment S-2 Exhibit L002 – CLIN Pricing Summary

This cost exhibit displays the Offeror’s proposed labor hours and total price (cost plus fee) for each Section B CLIN requiring cost and pricing information (CLINs 0001-0004 and 0101). Subcontractor labor hours and pricing must be included in the Offeror’s (prime contractor) pricing included in this cost exhibit. The total labor hour and total dollar price amounts shown in this exhibit must equal the cumulative total shown in Exhibit L001.

(c) Instructions for Attachment S-2 Exhibit L003 – CLIN Cost Element Breakdowns

(1) The Offeror must provide a separate Exhibit L003 for each Section B CLIN requiring Offeror pricing (CLINs 0001-0004 and 0101).

(2) This cost exhibit displays the Offeror’s proposed price by specified element of cost for each CLIN. The Offeror is required to complete this cost exhibit for each priced CLIN and shall NOT refer to any other portion of the cost proposal to meet this solicitation requirement. The total value for each CLIN must equal the CLIN value provided in Exhibit L002, as well as the Section B pricing proposed in the model contract. The Offeror shall clearly label the specific CLIN number with applicable GFY for each L003 cost exhibit submitted. Subcontractor costs must also be included in the Offeror’s (prime contractor) cost exhibit. Each Subcontractor must be separately listed, regardless of subcontract value. If FCCM is not proposed, it shall not be an allowable cost under the contract.

(3) The element identified as “Direct Labor” shall show only the proposing Offeror’s direct labor cost (i.e., not include subcontractor labor). All Subcontractor costs shall be included in the ‘Subcontractors’ section of this exhibit.

(4) The elements identified as Subcontractor costs must exactly equal the cumulative bottom line totals from Attachment S-2 Exhibit L003 submitted by the Subcontractor(s).

(d) Instructions for Attachment S-2 Exhibit L004 – Historical/Proposed Rates Summary Schedule.

This cost exhibit shall display a summary of both historical and proposed direct rates, indirect rates, and escalation rates utilized in the proposal. Historical rates must be provided for all Contractor Fiscal Years (CFY) from 2013 through current (where the Offeror provides CFY rates for a CFY that is not complete, the Offeror shall indicate what time period this CFY data represents). Proposed rates must be provided for each Government Fiscal Year (GFY) covered by the proposed pricing. At a minimum, the rates shall include: each individual direct labor rate proposed; direct labor escalation rates; each fringe rate proposed; each labor overhead rate proposed; G&A rate proposed; material and/or subcontract burden proposed, each FCCM rate proposed; and material escalation rate proposed. The specific rates in this exhibit should be adjusted to reflect the Offeror’s accounting system and cost proposal pricing methodology. The rates provided in this exhibit for each GFY proposed must be the exact rates utilized in pricing Section B CLINs and as displayed within Exhibits L001 and L003.

(e) Instructions for Attachment S-2 Exhibit L005 – Indirect Expense Schedules

The Offeror must include a separate set of indirect expense schedules for each proposed indirect rate included in the proposal (for example: labor overhead; G&A; fringe; material overhead; etc.) along with the distribution base amount for indirect expense allocation. The Offeror shall provide historical indirect expense schedules for all CFYs from 2013 through current (where the Offeror provides CFY rates for a CFY that is not complete, the Offeror shall indicate what time period this CFY data represents), and the projected indirect expense schedule for each GFY covered by the proposed pricing. These schedules must be consistent with the historical indirect rates provided within Exhibit L004.

Vol. II, Section I-2: Prime Contractor Estimating Rationale/Cost Proposal Narrative

The Offeror shall fully explain the estimating rationale on which its proposal is based including full supporting rationale. Full supporting rationale includes both numeric projections and a complete and clearly written explanation. The burden of proof for cost credibility rests with the Offeror.

The basis for the Offeror’s cost proposal, regardless of the contracting approach, shall be thoroughly explained, including bases, rates, and methodology used to generate the proposal, and such information that applies to any subcontracts. Offerors are required to provide all data necessary for complete analysis of proposed cost estimates. The data elements below represent a minimum list of such data elements and are not exhaustive. The Offeror shall submit any additional data, supporting schedules or substantiation that will facilitate the Government's evaluation of the proposal.

The Offeror shall provide a narrative that addresses the following areas:

(a) Direct Labor Hour Narrative

(1) For each CLIN where the Navy is not directing the proposal of a specific level of effort (0001 and 0101), the Offeror shall provide the basis for the number of labor hours proposed. Explain the labor hour estimate for each CLIN, the rationale for that estimate, and an explanation of how historical hours for identical or similar tasks relate to the estimates, including explanation of differences.

(2) For each CLIN, briefly explain the function(s) to be performed, and the type of labor to be utilized. To the extent various functions are to be performed within each CLIN, explain the mix of labor categories proposed for the effort.

(b) Direct Labor Rate Narrative

The Offeror shall provide the rationale, including all relevant calculation (to include apportionment method used to generate GFY rates using CFY-based rates) and/or weightings, used for development of each proposed direct labor rate provided in Cost Exhibits L001, L003, and L005. If proposing a composite rate, provide rationale and support for the composite rate.

The Offeror shall address the extent that FPRA rates were utilized, and explain any differences between FPRA rates and proposed rates. The Offeror shall address consistency between proposed direct labor rates and the historical direct rates for same or similar efforts.

The Offeror shall address the rationale of the proposed direct labor escalation rate(s), by GFY.

Overtime - If the price/cost estimate includes overtime premium, Offerors shall furnish the following information:

(i) The dollar amount of overtime premium included in the proposed price/estimate;

(ii) The reason why the use of overtime is necessary;

(iii) The specific operations and categories of personnel which will have to work overtime;

(iv) The estimated number of hours of overtime to be required for each operation;

(v) The estimated period of contract performance during which the overtime will be required; and

(vi) Historical data supporting use of overtime on identical or similar efforts;

(vii) Whether the overtime, if performed, will adversely affect the performance of other Department of Defense contracts and if so, the contract numbers and the contracting activities involved.

(viii) A detailed explanation of how overtime premiums are accounted for in the Contractor’s rate structure.

(ix) Whether any of the exceptions listed under FAR 52.222-2(a)(1)-(4) are applicable.

(c) Material Cost Narrative

Material costs shall include all subcontract efforts to be performed on a Fixed Price basis.

For each CLIN where the Navy is not directing the proposal of a specific material amount (CLINs 0001 and 0101), the Offeror shall provide the rationale and all relevant calculations for the proposed material costs. Explain the calculation of material costs and the rationale for each estimate. Provide explanation of how historical material costs for identical or similar tasks relate to the estimates, including explanation of differences, if any.

The Offeror shall address the rationale of proposed material escalation, if any, by GFY.

(d) Indirect Rates and Business Base

The Offeror shall provide the rationale used for development of each proposed indirect rate, including FCCM, for each GFY. All Offerors shall clearly state their accounting-system defined CFY (e.g., starts on DD-MM and concludes on DD-MM) and apportionment method used to generate GFY rates using CFY-based rates (for example, if an Offeror’s CFY 2011 runs from September 1, 2010 thru August 31, 2011, in order to convert rates from CFY 2011 to GFY 2011, the Offeror would apportion 11/12 from CFY 2011 and 1/12 from CFY 2012). The Offeror shall address the extent that FPRA indirect rates were utilized, and explain any differences between FPRA rates and proposed rates.

The Offeror shall clearly explain the application of each indirect rate (e.g., the proposed G&A rate is applied to direct labor costs and labor overhead costs). The Offeror shall address consistency between proposed indirect rates and the historical indirect rates for same or similar efforts.

The Offeror shall provide clear and complete rationale for all business base calculations and assumptions utilized for the proposed indirect rates. The rationale shall include basis, including calculations, for the Offeror’s total business base projections over the estimated contract period of performance, assuming all options are exercised.

(e) Contractor Systems Approvals and Issues

The Offeror shall address whether or not the following contractor systems have been approved by the ACO: accounting system, estimating system and purchasing system. Provide the date of most recent ACO determination that stated that the applicable system was approved. If the most current ACO review(s) determined that any of the above systems were not approved, provide a copy of the ACO’s determination, any additional pertinent details of the ACO’s finding, and any steps taken by the Contractor to address the ACO’s findings, as well as the ACO’s name, telephone number, and email address.

The Offeror must address: 1) any inconsistency between this proposal and the Offeror’s established estimating and accounting practices and procedures and FAR Part 31 Cost Principles; and 2) whether the Offeror is, or may be, in noncompliance with its Disclosure Statement; or whether any aspect of this proposal is inconsistent with the Offeror’s disclosed practices.

Additionally, the Offeror shall include a completed Attachment S-4, Compliance Checklist, and estimating system in Section I-2 of this volume.

(f) Assumptions

The Offeror shall specify and address their utilization of each of the assumptions dictated by the solicitation (i.e. “Cost Proposal Assumptions” under Vol. II, Section I: Cost Information).

(g) Contractor Award Announcement Information

The Offeror shall complete and include Attachment S-5, Contractor Award Announcement Information, in Section I-2 of this volume.

(h) Solicitation Amendment Acknowledgements

The Offeror shall complete Items 8 and 15 on the SF 30 of each Amendment that is issued. The completed amendments must then be submitted along with the Offeror’s cost proposal.

Vol. II, Section I-3: Subcontractor Cost Data

(a) The Contractor shall submit a complete listing of all proposed Subcontractors. This listing shall provide the following information for each subcontract, consultant, and inter-divisional transfer:

· Name of Subcontractor;

· Address, Telephone number, and Point of Contact;

· CAGE Code;

· Whether the Subcontractor is a Large or Small Business;

· Description of effort;

· Type of contract arrangement (fixed price; CPFF; CPAF, etc.); and

· Place of Performance (subcontractor facility, contractor facility, naval shipyard, etc.)

(b) For each cost type Subcontractor (regardless of cumulative subcontract value), and for any Subcontractor (regardless of contract type) with a cumulative value of greater than $700,000, the Offeror shall have the Subcontractor provide separate chapter-structured cost proposals with cost exhibits L001 through L005 that support the proposed Subcontractor pricing. Additionally, the Subcontractor must provide a copy of their most current forward pricing rate agreement (FPRA) or an approved provisional rate letter with the cognizant ACO or Defense Contract Audit Agency (DCAA). The Navy reserves the right to request additional supporting data, as required.

(c) For each fixed price (FFP, T&M, and Labor Hour, etc.) type subcontract valued at less than $700,000, the Offeror shall provide the following (the Navy reserves the right to request additional supporting data, as required):

· Brief description of scope of subcontract;

· The basis for using a fixed price subcontract;

· Discussion as to whether or not competitive bids will be solicited for proposed effort;

· Documentation showing that this subcontractor has been utilized on a fixed price basis for similar efforts on past availabilities (example: purchase order(s) issued);

· Historical data that supports the reasonableness of the fixed rate proposed (example: historical fixed rates proposed for similar efforts on past availabilities);

· Subcontractor quote/agreement that clearly identifies and supports the total Subcontractor labor hours and total subcontract price, by GFY and total subcontract amount, with a description of the subcontracted effort.

(d) Subcontractors may provide their required Subcontractor proposal submissions directly to the Government if they do not wish to provide the required information to the prime contractor. Subcontractor proposal submissions provided separately by a Subcontractor must be received by the time, date, and at the location specified in the solicitation. Regardless of whether or not a Subcontractor provides their submission directly to the Government, prime contractors are still required to provide the summary Subcontractor cost/price information in Exhibits L001 through L005 that is consistent (i.e., exactly matches) with the summary cost/price information included in the Subcontractors proposal submission.

(e) The Offeror shall provide, or have each subcontractor provide directly to the Navy, the following representations: 52.219-1, SMALL BUSINESS PROGRAM REPRESENTATIONS (OCT 2014).

(f) Failure of the Subcontractor to comply with all aspects of (b) through (e) above may render the proposal non-responsive and the Offeror may be removed from competition.

Vol. II, Section I-4: Other Data

(a) The Offeror must provide a copy of their most current Forward Pricing Rate Agreement (FPRA) or an approved provisional rate letter with the cognizant ACO or Defense Contract Audit Agency (DCAA).

(b) The Offeror shall provide any additional data, including historical data utilized and/or referenced in Subsections I-1 and I-2 of the cost proposal that the Offeror feels necessary to further establish cost credibility.

(c) The Offeror shall state in its proposal its cost accounting practice for allocating proposal preparation costs. The cost of preparing proposals in response to this RFP will not be allowable as a direct charge to any Government contract.

Vol. II, Section II: SF 33 Solicitation Set/Model Contract

The SF 33 Solicitation Set/Model Contract will be used to make award if an Offeror is the successful Offeror. For the purposes of completing this section, the Offeror shall use the conformed version of the RFP through the last amendment prior to the RFP closing date. The following guidance for completing the SF 33 Solicitation Set/Model Contract is for clarification only; the Offeror is ultimately responsible for ensuring that all requirements are met. The following are to be completed and provided in Volume II:

(a) Standard Form 33, “Solicitation, Offer and Award,” with blocks 12 through 18 completed by the Offeror. The representative who signs this form must be authorized to contractually bind the company providing the offer. Block 12 must indicate that the offer is valid for 270 days from the date for receipt of offers. For the purposes of completing this requirement, the Offeror shall use the conformed version of the RFP through the last amendment prior to the RFP closing date.

(b) Solicitation Amendment(s) (if any) – The Offeror shall submit a signed copy of each amendment’s SF-30 Cover Page.

(c) RFP Sections B through J - The Offeror shall submit Sections B through J with all appropriate information completed as required by the RFP. The following is a listing of the specific areas of the model contract that require Offeror completion:

(1) Section B - The Offeror shall complete the Section B pricing for CLINs 0001-0004, 0101. The offeror shall complete the fill-ins listed under the "PAYMENTS OF FEE (S) (COMPLETION) (NAVSEA) (MAY 1993)" and "DETERMINATION OF FEE (NAVSEA) (APR 2015)" clauses.

(2) Section C – The offeror shall complete the fill-ins as appropriate under “CONTRACTOR’S PROPOSAL (NAVSEA) (MAR 2001)” and “COMMAND INSPECTION OF BERTHING FACILITIES (NAVSEA) (OCT 1990)”.

(3) Section H – The offeror shall complete the total number of uncompensated man-hours in paragraph (b) under the “LEVEL OF EFFORT – ALTERNATE I (MAY 2010)” clause.

(4) Section I – The offeror shall include applicable fill-ins as appropriate under “PAYMENT FOR OVERTIME PREMIUMS (JUL 1990), “CERTIFICATION OF FINAL INDIRECT COSTS (JAN 1997)”, “SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS (NOV 2005)” and the “SUBCONTRACTS (OCT 2010)” clauses.

(5) Section J, Attachment J-4, SUBCONTRACTING PLAN, Offerors shall provide a compliant subcontracting plan as required by the solicitation.

(d) RFP Section K, “Representation, Certifications, and Other Statements of Offerors,”

Offerors shall complete all Representation and Certifications, including those required to be completed in SAM. Representations and certifications included in Section K shall be completed and included in the offeror’s proposal. If needed, additional pages, which shall be clearly marked with the provision number and title, may be included to provide the required information.

Additional Clarifying Information for Section K. The following is for clarification only; the Offeror is ultimately responsible for ensuring that all requirements of Section K are met.

(1) FAR 52.204-8, ANNUAL REPRESENTATIONS AND CERTIFICATIONS (APR 2016) and DFARS 252.204-7007 ALTERNATE A, ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2017):

a. Check the appropriate box in paragraphs (a)(1), (a)(2), and (b)(2).

b. As indicated in paragraph (c)(1) and (c)(2) of the provision, complete the indicated representations/certifications in SAM.

c. As indicated in paragraphs (d)(1) and (d)(2) of the provision, complete the indicated representations/certifications in SAM.

d. Complete paragraph (e) as appropriate.

(2) FAR 52.209-7, INFORMATION REGARDING RESPONSIBILITY MATTERS (JULY 2013) – Complete paragraph (b) and follow the instructions in paragraphs (c) and (d).

(3) FAR 52.222-56, CERTIFICATION REGARDING TRAFFICKING IN PERSONS COMPLIANCE PLAN (MAR 2015) – Submit the certification required by paragraphs (b)-(c).

(4) FAR 52.230-1, COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION (OCT 2015) – Complete paragraphs I, II, and III, as appropriate.

(5) FAR 52.230-7, PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE CHANGES (APR 2005) – Check Yes or No. If the Offeror checks “Yes,” follow the instructions in paragraphs (1) and (2).

(6) DFARS 252.204-7007 ALT A, ALTERNATE A, ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2015) – Complete as appropriate.

(7) DFARS 252.225-7010, COMMERCIAL DERIVATIVE MILITARY ARTICLE--SPECIALTY METALS COMPLIANCE CERTIFICATE (JUL 2009) – Follow instructions in paragraph (b).

(8) DFARS 252.227-7017, IDENTIFICATION AND ASSERTION OF USE, RELEASE, OR DISCLOSURE RESTRICTIONS (JAN 2011) – Complete as appropriate.

(9) DFARS 252.227-7028, TECHNICAL DATA OR COMPUTER SOFTWARE PREVIOUSLY DELIVERED TO THE GOVERNMENT (JUN 1995) – Complete as appropriate.

(10) K-1, ACCESS TO VESSELS BY NON U.S. CITIZENS (ACP) (NAVSEA) (MAR 1997) – Complete paragraphs (a) and (c) as appropriate.

(e) RFP Section L, “Instructions, Conditions and Notices to Bidders,” complete the following:

(1) Per FAR 52.204-7, SYSTEM FOR AWARD MANAGEMENT (OCT 2016), the Offeror shall enter, in the block with its name and address on the cover page of its offer, the annotation “DUNS” or “DUNS+4” followed by the DUNS or DUNS+4 number that identifies the offeror’s name and address…