SeaPort-NxG_Q&A_3_APR_2018.pdf

SeaPort-NxG Q&A, 4.3.18

SeaPort-NxG Questions and Answers 3 April 2018

Q81. If the contractor system complies with NIST SP 800-171 and subsequent NIST/FIPS IT security requirements, will a third party organizational assessment or an authority-to-operate be required prior to any contractor award?

A81. No third party assessment or Authority to Operate will be required. Offerors will be required to certify compliance with DFARS 252.204-7008.

Q82. If a small business subsidiary of a large company bids on the MAC, can it have other small business subsidiaries from the same parent company as subcontractors?

A82. Since these companies share the same corporate entity as their parent company, they are considered affiliates. A subsidiary carries the same size standard as their parent company, so in this example, all of these entities would be considered large businesses. Also, as noted in A15, there will be only one MAC per corporate entity.

Q83. FAR Part 15-404 and DFARS Part 215.404 discuss the requirements for contract fee determination. The current Seaport-e base contract: i) sets a seemingly arbitrary fee limit on ensuing Seaport-e task orders for prime contractor labor, ii) establishes an arbitrary ceiling on pass-through that effectively limits the fee available on subcontractor performance, and iii) does this without taking into account the actual task order work to be performed. This determination was made nearly 15 years ago when the competitive landscape for talent, particularly in computer science and engineering, was quite different. What is the structured approach that the Navy will use to determine the fee on a task order by task order basis? Will it use the DFARS weighted guidelines approach? Will arbitrary limits be removed from the base contract? Will subcontractor fee continue to be restricted to that of the prime contractor notwithstanding the complexity of the subcontractor’s particular tasking?

A83. Because the task orders are subject to Fair Opportunity, the structured approach to profit analysis will not be used. The SeaPort-NxG MAC will contain maximum pass-through and fixed fee rate caps of 8% on CPFF type orders which are considered appropriate since, as stated in FAR 15.404-4, the contractor assumes the least cost risk in a cost-plus-fixed-fee level-of-effort contract/task order. The MAC maximum fee rate proposed for each task order by the prime contractor will flow down to all subcontractors/consultants included in the task order proposal.

Q84. There is a growing sense in industry that bids are becoming more and more disconnected from actual execution cost and fee. This has been especially true when offerors are left to choose which labor categories might apply to a body of work. In execution, contracts are very often not being worked consistently with the manner bid. Cost ceiling is being approached much earlier than originally contracted with fewer hours supplied. Are there any changes to Seaport-NxG to ensure that solicitations specify those labor categories that will actually be used for the work described?

A84. The SeaPort-NxG MAC will not contain labor categories. The CONOPS for SeaPort-NxG will encourage ordering activities to include the estimated labor mix and level-of-effort in their task order solicitations. Specific concerns regarding task order solicitations should be addressed to that ordering activity PCO.

Q85 Questions 58 and 63 address part of the small business industrial base issues that the Navy faces by selecting only one NAICS code for such a large and diverse body of work over such a long period of time. The Research & Development professional services industry base should be considered as well. SBA NAICS code size limits are defined as they are to promote competition at the level of company size pertaining to the actual work being contracted at the time of such a contract action. The NAICS codes selected for the OASIS contracting portfolio recognized this dilemma and used multiple NAICS codes in recognition of the range of work expected on the MAC vehicle. It permits the PCO to select an appropriate NAICS pool to solicit responses at the time the work is defined and the contract is needed. We are not advocating pools. What precludes authorizing multiple NAICS codes such as 541330 (base and individual exceptions), 541715, 541611, and others as necessary by modification to be used by the PCO at the time of task order solicitation?

A85. The definition of the NAICS code 541330 with the Military exception most appropriately covers the work to be performed under SeaPort-NxG. While there may be elements of a SeaPort-NxG task order statement of work that touch on other NAICS Codes (541715, 541611, etc.), the statement of work in its entirety is more appropriately classified under NAICS Code 541330.

Q86. Will the Navy please conduct an early on ramp in 2019 to allow existing SeaPort e holders to transition to SeaPort Next Gen without a gap? With SeaPort-NxG award in 1Q FY 2019 and SeaPort-e extension through December 2019, a potential prime can get the required Navy experience on Seaport-e but be precluded from winning a SeaPort-NxG IDIQ for another 5 years. This does not appear to be in the Navy’s best interest nor their intent. Having spent all the business development, capture and bid and proposal resources to support the Navy work, there will be a gap without starting the on-board process early in 2019 so that existing SeaPort-e holders can get an award right after the Seaport-e contract expires. We suggest starting the procurement process no later than April 2019 to assure award before Seaport e is shut down.

A86. A rolling admission is not planned for 2019 but will occur prior to the five year point. It should be noted that qualifying experience in direct support of the DoN is not limited to SeaPort-e. See A60 and A42.

Q87. My company is a service-disabled veteran-owned small business and the owner/President is a retired US Navy senior officer with extensive experience performing “work in direct support of the Navy” while on active duty during operational and Pentagon tours, etc.

During his time at the Pentagon, he specifically gained extensive experience in all areas of DON resourcing and budgeting. Also, the company has performed one job as a subcontractor for a prime on a contract with the US Navy Strategic Systems Program (within the last year).

The work was within one of the 23 functional areas that you identified. Will the owner’s Naval experience during his career, alone, allow the company to bid on Seaport-Nxg? If not, will the company’s work as a subcontractor on a US Navy Strategic Systems Program contract within the last year allow the company to bid on Seaport-Nxg?

A87. Experience of an employee does not qualify a company for an award but experience as a subcontractor may. See A7 and A17.

[END of 3 APRIL 2018 Q&A]