Solicitation Questions with Answers Round 3_Final.pdf

Post-Solicitation Industry Questions Round 3

Question 1: Can you release to industry example scenarios that support your math for these two factors that define the two factors. Can you please provide a couple of scenarios, one where the price increases and one where the price decreases?

Answer: As indicated by the FP-EPA CLINs of Section B of the solicitation, the Government will review, alongside the contractor, within 30 days after award for first order and at least 30 days prior to awarding any future order the price per ton of both Nickel and Copper. If in that review, the price for nickel is $32,581 per ton or $10,000 per ton for copper, an increase of 5.1% from the Government provided numbers for nickel and copper by the ton. This would trigger a price revision to increase (or decrease as shown in example below) the material price using the new Copper and Nickel prices per ton.

The EPA clause would then be activated and allow a material price adjustment up to 25% from the revised material price.

As another example, if the price of Nickel was to drop to $29,400 per ton or if the price of Copper was to drop to $9,000 per ton, the material price would be reduced.

Question 2: To ensure the prime contractor is performing the majority of the work, rather than subcontracting out 70% of the total contract value, is the small business goal of 65% intended to be of the total “subcontract” value or total “contract” value? Please clarify.

Answer: The solicitation has been amended to say 65% of subcontract value in Section L 4.3.

Question 3: We are aware of classified machining/manufacturing steps near the end of the BSS production process. Can these steps be added to the requirements for this RFP?

Answer: The Government is not adding the classified steps required near the end of the Bearing Support Structure process to this solicitation.

Question 3: Section E/Page 25 - FAR 52.246-11 (Higher-Level Contract Quality Requirement): This FAR clause is a “fill-in” for the Contracting Officer. What will be higher-level quality requirement fill-in be for the resultant BSS contract for FAR 52.246-11(a)?

Answer: The solicitation has been amended to update FAR 52.246-11 and add ISO 9001 as the higher-level quality requirement.

Question 4: Section B/Pages 2-9, Section I/Page 48 - FP-EPA CLINs and EPA clause. Regarding the raw materials (nickel and copper), what indexes are these tied to within the “Producer Price Index” portal (i.e. U.S. Labor Bureau of Labor Statistics webpage: https://www.bls.gov/ppi/)? Please advise.

Answer: The Government utilized the London Metal Exchange prices for nickel and copper prices.

Question 5: Solicitation Section I 52.216-4, Post-Solicitation Industry Questions, the Government states for the FFP EPA CLINs ABs stated in Section 4.4.6, the Offeror shall burden the Government provided material amount with its indirect rates, which includes escalation, as appropriate. The Contractor wants clarification if we may propose escalation onto the $7.5M material cost as appropriate for the inflationary and market considerations. Please advise.

Answer: The solicitation has been amended to update Section L 4.4.6 to allow for escalation to be added on the Government provided numbers for Years 2-5.

Question 6: Solicitation Section I 52.216-4, Contractor believes the Government should include the EPA

– 52.216-4 Labor and Materials for the inflation of labor and other materials. The Economic Price Adjustment 52.216-2 Standard Supplies supports the nickel and copper market. However, the current market conditions are very volatile and the additional 52-216-4 EPA Labor and Materials would provide Government and Contractor risk mitigation for other material factors.

Answer: The Government is not open to adding 52.216-4 on this solicitation.

Question 7: Solicitation Section I 52.216-4, Please confirm that FFP EPA SLIN price revisions will be applicable to the entire burdened value of all materials in the SLIN up to 25% of the material value.

Please confirm that no price adjustment will be allowed when nickel and copper prices are less than 5% changed from the initial Government provided values. (For example, if fuel or labor costs embedded in the $7.5M increases more than 5%, but nickel does not increase then the FFP EPA would be activated at all.)

Answer: The FFP EPA SLIN price revisions will be applicable to the entire burdened value of all materials up to 25% of the material value. Also, no price adjustment will be allowed unless the nickel or copper prices change by 5% (increase or decrease).

Question 8: Section B, The cost sharing ratio between Government and Contractor is 50/50. Contractor believes the Government should take a higher share of risk for this complexity and market factors for the FPIP.

Answer: As the FPIF CLIN is only applicable to the first year of this solicitation, the Government is maintaining the 50/50 share ratio.

Question 9: Section I, The Contractor believes the (c) (1) The aggregate of the increases in any contract unit price under this clause shall not exceed 25 percent of the original contract unit price. The NTE percentage should be higher at 50% or above in the extreme market fluctations for the contractor to mitigate extreme risk from nickel and/or copper price increase as direct cost before the application of the indirect burdens, as approporiate escalation. We believe the Government should reconsider the FFP EPA NTE percentage for extreme market fluctations.

Answer: As the Government will be relooking at prices 30 days after award for the first order and 30 days prior to issuing any future orders, the risk is lowered on the contractors. Based on that the 25% remains for clause 52.216-2.