Amendment 3 - Section L.doc

CONTENT OF PROPOSALS (SUPPLIES OR SERVICES)

PART A GENERAL INSTRUCTIONS

1.0 GENERAL

The Offeror is required to submit sufficient information concerning the following areas to enable Government personnel to fully ascertain capabilities of the Offeror to perform the requirements. The proposal must be sufficient in detail and scope to permit evaluation and provide the evaluators a clear understanding of the Offeror’s capability to meet or exceed the defined elements as required by the solicitation.

All proposals must clearly and convincingly demonstrate that the Offeror has a thorough understanding of the requirements, associated risks and is able, willing and competent to devote the resources necessary to meet the requirements, and that the Offeror has valid and practical solutions for all requirements and potential risk areas.

Offeror must respond to all requirements of the solicitation and not alter or rearrange the solicitation. The Offeror has the burden of proof to demonstrate compliance with all the evaluation factors and or sub-factors identified in this solicitation. The Offeror is advised that the Government may incorporate into the final contract enhancing features included in the Offeror’s proposal deemed beneficial to the Government. With the exception of the Price/Cost volume, no cost or pricing information should appear in any volume. Alternate proposals are not acceptable.

In presenting material in the proposal, the Offeror is advised that quality of information is more important than quantity. Clarity, brevity, and logical organization should be emphasized during proposal preparation. The Offeror is responsible to present enough information to allow the Government to evaluate the proposed work effort, support, and approach, as well as the price/cost proposal without opening discussions. Statements that the prospective Offeror understands, or can and/or will comply with, the specifications, and paraphrasing the requirements or parts thereof without supporting information are considered inadequate by the Government, and may render a rating of unacceptable. For the purpose of this solicitation, relevance is defined as something that has a logical connection with the matter under consideration. Such aspects of relevance include the type of effort (e.g., development, production, repair), the type of requirements (e.g., weapon systems, information systems, engineering services, scheduled depot maintenance), service similarity, service complexity, contract type, contract dollar value, the division of the company that will perform the work, and degree of participation by principal subcontractors, team members, or critical team members. Recency is defined as performance within 5 years of the date of this proposal submission.

The Offeror must include any data that illustrates the adequacy of the various assumptions, approaches, and solutions to problems. Failure to address a specific factor or sub-factor clearly may be considered a deficiency. There is no need to repeat information in more than one volume if an overlap exists; the detailed information must be included in the most logical place and summarized and referenced in other areas. Unnecessarily elaborate brochures or other presentation materials beyond that sufficient to present a complete and effective proposal is neither necessary nor desired.

The Offeror is expected to comply with all requirements of the RFP. The Government advises the Offeror that taking exception or deviating from any term or condition of the RFP may make an offer unacceptable, and the proposal un-awardable, unless the RFP expressly authorizes such an exception or deviation with regard to that specific term or condition. The Government may consider any exception or deviation to any term or condition of the RFP that is not expressly authorized by the RFP to be a deficiency.

Throughout these instructions, a “principal subcontractor” is defined as a subcontractor who provides at least 20% of the proposed total price/cost (excluding the Offeror’s profit/fee), for the contract. “Team member” is defined as those entities that make up a joint venture or any other partnership or teaming arrangement formed for the purpose of responding to this solicitation. “Critical team member” is defined as those entities of the Offeror that perform a critical function in the performance of the resulting contract, whether it is technical or financial, and/or that have important roles in any high or medium risk areas identified in the Offeror’s proposal.

2.0 PROPOSAL FORMAT

Written proposals must be formatted using a Times New Roman 12 pt normal font (no reduction permitted), single-spaced with 1-inch margins all around, and formatted for standard 8.5 x 11 inch paper. All pages should be numbered with section and page numbers. When foldout pages are used they must not exceed 11 x 17 inches and will be counted as 1 page. Drawings may be provided separately and may be any size but should be folded to approximately 8.5 x 11 inch standard size and will count as 1 page. Graphs shall be presented in no smaller than a 10 pt font and should contain a grid, which allows values to be read directly from the graph to the same accuracy that a 10 x 10 to the ½ inch grid provides. Graphic resolution should be consistent with the purpose of the data presented.

The Offeror will provide one complete copy of the written proposal to the Procuring Contracting Officer PCO as electronic files fully compatible with Microsoft Office 2000 and for information not supported by MS Office products, with the latest Adobe Acrobat reader on a CD-ROM. The Offeror will ensure that the Price/Cost Volume is provided on a separate CD-ROM. Each CD-ROM is to be labeled for content and the Offeror’s name. If a discrepancy exists between the original paper copy of the proposal and the disk copy, the paper copy will take precedence.

3.0 PROPOSAL CONTENT AND VOLUMES

Each volume of the proposal shall be submitted as one original and additional copies as specified in the table below. All volumes of the original proposal shall be delivered to the address provided in Section 4.0 prior to the closing date/time stated in this solicitation Page limitations for each volume if any, are also specified in the table below; title and table of contents pages do not count towards page limit. Proposal pages beyond the specified maximum limit will not be reviewed as part of the evaluation.

Information submitted as an Annex to the proposal includes manuals, specifications, plans, procedures, and policies that exist as an official document of the company or facility, as well as other information requested in Part B Specific Instructions. Annexes do not have page limitations. The authorized Annexes are summarized in the table below.

1 Original / 7 Copies

Each volume shall contain the following information:

· Cover and title page

· Title of proposal and proposal number as applicable

· Offeror’s name, address and POC

· RFP number

· Proposal volume/book number

· Copy number

· Table of Contents (The table of contents must provide sufficient detail to enable easy location of important elements)

· Use tabs and dividers

The Offeror shall submit a Cross Reference Matrix (CRM) for the Technical Volume, similar to the example below, to help ensure that all solicitation requirements are addressed and to facilitate the evaluators’ review of the Offeror’s proposal. The CRM should be a single integrated matrix and cross-reference the proposal volumes and paragraphs to specific RFP requirements, as well as other parts of the proposal that contain relevant information. The Offeror’s CRM may be identical to the example below or revised such as to add columns to indicate the page number on which information may be found, identify where other relevant information in the proposal is located, or provide other comments. The CRM does not count against any of the proposal page limitations.

EXAMPLE OF A CROSS REFERENCE MATRIX (CRM)

Note: This column shall address all paragraphs in Sections xx and xy of the Performance Specification

Volume 2 Technical

Volume 2 Technical

4.0 PROPOSAL SUBMISSION:

Clearly mark all packages with the solicitation number. The submission date for the original proposal shall be no later than the date and time specified in Block 9 of Standard Form 33 of the RFP. However, Offeror shall also submit copies of Volume (3) Past Performance information in paragraphs 3.1 and 3.2 and Volume I, Executive Summary “Offeror’s Summary Table”, 1.0 (ii) one week (or another time frame as deemed appropriate for the instant requirement ) prior to the submission date/time specified in Block 9 of Standard Form 33 of the RFP.

Offeror shall submit proposals via United States Postal Service or through a commercial carrier using the address provided below. Offeror shall not submit proposals by facsimile or electronically via email.

Naval Air Systems Command

Code: AIR-2.5.1.7.3.4(John Bohner – Contracts Specialist)

Address

Solicitation Number: N00421-11-R-0055

Hand carried proposals may be delivered to the address above, attention (PCO) and/or (Specialist).

5.0 PROPOSAL PACKAGING:

The Offeror shall package the proposal volumes in cartons or equivalent packaging containers in the most efficient manner possible grouping like volumes to the maximum extent possible. Each container shall be single person portable. One container shall include all Original Proposal volumes including the original/signed documents submitted as part of Volume 1 Executive Summary.

Each box should include a packing slip detailing the contents to include the volume number, title, and copy number. Also, each box should be stamped or marked “For Official Use Only” and “Source Selection Information – See FAR-2.101 and 3.104”.

6.0 CLASSIFIED DATA

All proposals must be UNCLASSIFIED

7.0 SOLICITATION CHANGES

For any changes and additional information for the solicitation please go to website:

http://www.fbo.gov

PART B SPECIFIC INSTRUCTIONS

1.0 VOLUME 1: EXECUTIVE SUMMARY

Note: This volume shall not contain any reference to cost or price aspects of the offer.

The purpose of the Executive Summary is to provide the evaluators with an overview of the Offeror’s proposal and strategy. The Offeror shall include the following in this volume:

i. A concise abstract of the Offeror’s strategy for each of the technical and past performance evaluation criteria contained in the solicitation.

ii.

Offeror Summary Table: The Offeror shall complete the table below. The Offeror should include all subcontractors and team members who will be involved with the performance or management of the program work and should list all sites where the work will be performed. If a teaming or subcontracting arrangement is proposed, identify the work share, distribution elements, and ratios that each contractor will perform using the table below. Also provide a definition of the legal relationship between the entities if it is other than a Prime/subcontractor relationship.

Contractor Name

(Indicate Prime, Team Member or Sub)

ii. Signed SF33 for basic solicitation and each amendment

iv. Signed Representations, Certifications and Acknowledgements or On-Line Representations and Certifications Application (ORCA) reference v.

Affirmation of no Exceptions, Deviations or Waivers

2.0 VOLUME 2: TECHNICAL

Note: This volume shall not contain any reference to cost or price aspects of the offer.

2.0.1 The Offeror shall provide all information and data required to conduct a thorough and complete technical evaluation. The Offeror shall address the following in the proposal:

The offeror shall provide the following information:

2.1 Workforce

2.1.1 Workforce Qualifications Spreadsheet. The offeror shall complete the attached Workforce Qualifications spreadsheet (Attachment P1) for each current, contingent, and prospective hire employee proposed under this effort. All contingent hires (key and non-key) shall have a letter of intent submitted under Volume 4. The letter of intent is a separate written agreement signed by the potential employee(s) to work for the offeror effective at Contract award. Subcontractors and team members shall provide this information either separately or included in the prime contractor’s submission of this document.

The following definitions apply to section 2.1.1: A “contingent hire” is an individual who has committed, under a signed letter of intent, to being employed by the offeror if the offeror is awarded the Contract. A “prospective hire” is an individual that the offeror has committed to hiring if the offeror is awarded the Contract whose identity may not be known until after Contract award.

Note: The offeror is forewarned that it may receive a weakness if it proposes the predominance of a labor category or Performance Based Statement of Work (PBSOW) section tasking using prospective or contingent hire employees and fails to adequately address the manner in which it proposes to mitigate the risk and the evaluation team deems this a risk to successful performance.

2.1.1.1 Labor Category Information: The offeror shall submit labor category titles, functional responsibilities and labor qualifications for all key and non-key labor categories required for this Contract and that meet the minimum qualifications stated in Section C. The labor category title shall be consistent throughout the proposal. Functional responsibilities shall include the principal duties to be performed under that labor category on the prospective Contract. Labor qualifications shall include experience and/or education requirements for all required labor categories.

2.1.1.2 Key Labor Categories: The offeror shall submit a list of the required key labor categories and applicable personnel. This list shall meet the minimum criteria stated in Section C.

2.1.1.3 Workforce Hour Matrix.

2.1.1.3.1 The offeror shall provide a breakdown of hours for each individual labor category required for the base and each option period of performance. The offeror must submit a labor category breakdown that covers the completion of the tasks in the PBSOW in Section C of the solicitation in accordance with the format in the Workforce Hour Matrix (Attachment P2). Subcontractors’ and team members’ information shall be included under the prime contractor’s submission. Rationale for the required labor categories and hours and mix of personnel, as identified in Attachment P2, shall be provided in a narrative.

2.1.1.4 Key Personnel Resumes.

For Key Personnel provide a resume of the work assignments, training, etc., that demonstrates the experience and specialized qualifications of each key person proposed (Multiple resumes may be required for (KEY) Labor Categories that have more than 1920 hrs/year). Resumes shall contain, at a minimum, the following information:

Employee name

· Years of employment experience in chronological order including description of duties/ responsibilities

· Current position, title and employer

· Educational history

· Institution name, degree or certification earned, and year for all degrees or certifications earned

· Current level of security clearance and status (final, interim, or pending)

2.1.2.2 The Government may check educational background to verify degrees or certifications received.

2.2 Understanding of the Work

2.2.1 Performance Based Statement of Work Approach:

2.2.1 Performance Based Statement of Work Approach:

2.2.1.1 Provide a written narrative of the offeror's proposed understanding and capability to perform the requirements of the PBSOW. EXCLUDE PBSOW sections 5.5 and 5.8 in this written narrative.

The narrative shall include the elements set forth below:

2.2.1.1.1 Provide a description of the approach to complete the tasking, including procedures and methodology (if applicable to the task) which would be used in accomplishing each task.

2.2.1.1.2 Identify any areas that may impact successful performance based on the offeror's knowledge of the work.

2.2.1.1.3 Implementation plan that includes:

2.2.1.1.3.1 Manpower utilization to maintain an optimum level of support

2.2.1.1.3.2 Quality assurance plan to monitor performance based metrics

2.3 Management Plan

2.3.1 Offerors shall address in sufficient detail the following:

2.3.1.1 Proposed management roles of the offeror’s proposed workforce for this Contract

2.3.1.2 Proposed lines of responsibility, authority, and communication through which the tasks will be managed

2.3.1.3 Procedures to be taken to ensure quality and cost control

2.3.1.4 Plan for early identification and resolution of problems; and

2.3.1.5 Identification of potential performance risks and proposed risk mitigation strategies

2.3.2 Offerors shall present in sufficient detail the following:

2.3.2.1 Prime Contractor shall detail how the subcontractors will be managed to ensure cohesive integration into the overall management approach;

2.3.2.2 Description of the integration of the teaming partners into the overall management approach and how the offeror will leverage their strengths to increase value to the customer through technical leadership, quality assurance, and process improvement;

2.3.2.3 Which knowledge and skills the offeror will be acquiring through each subcontract, the level of subcontract effort expected;

2.4 Transition Plan: The services under this solicitation are vital to the Government and must be continued without interruption. The offeror is required to submit a written narrative delineating a transition plan based on a 30 day transition period after award, which ensures a smooth workplace changeover from an incumbent. The plan should take into consideration the following elements as well as any additional elements deemed necessary by the offeror:

2.3.4.1 Work Turnover. The offeror shall provide a plan of action to effectively transfer tasked work that is in process at the expiration of the current contract from the incumbent to the successful offeror.

2.3.4.2 Training. The offeror shall provide a plan of action to implement personnel training needed during the transition period to ensure continuity between the services provided by the incumbent and the successful offeror.

2.3.4.3 Risk Mitigation Strategies. The offeror shall provide a plan of action to mitigate contract performance risks encountered during the transition period.

2.3.4.4 Security Requirements to include OPSEC, facility clearances and base access. The offeror shall provide a plan to implement the required security clearances and physical access requirements of the contract during the transition period so that service is not interrupted.

2.3.4.5 "With reference to the “pending” implementation of Executive Order #13495, the Executive Order states “the order is effective immediately and shall apply to solicitations issued ON OR AFTER THE EFFECTIVE DATE FOR THE ACTION TAKEN" by the FAR Council. To date, the FAR Council has taken no action to implement this clause."

3.0 VOLUME 3: PAST PERFORMANCE

3.1 General

In Attachment P4, Past Performance Matrix, the Offeror shall identify any contracts performed within five years of this proposal submission date which contains efforts similar to those performed by Offeror, Offeror’s principal subcontractors, and critical team members in solicitation. e.g., tasks, complexity, contract type, contract dollar value, etc. Commercial contracts may be included. List the contracts from the most relevant to the least relevant. In general, recent performance will be considered more relevant than older performance. When possible, these contracts should include at least five of the most relevant contracts for the prime contractor, five of the most relevant contracts for each critical team member, and two of the most relevant contracts for each principal subcontractor (as defined in Paragraph I, General Instructions).

If proposing as joint venture/single legal entity (JV/SLE), the Offeror should provide the five past performance references for the JV/SLE. If less than the five past performance references are available for the JV/SLE, each member of the JV/SLE should individually submit the five references in addition to their JV/SLE references.

For each contract identified, provide contract data, relevancy, past performance, and systemic improvement information as described below. Demonstrate the relevancy of the Offeror’s, and if applicable, the Offeror’s principal subcontractors’ or critical team members’ past performance and systemic improvements with respect to the solicitation requirements. For each past performance problem identified, describe the status of the systemic improvement efforts and, where applicable, demonstrate the impact that the systemic improvement effort had on resolving the problem such that it would not reoccur.

For contracts that have CPARS Reports that are more than six months old, e.g., the completion date is more than six months before the due date for this Past Performance Volume; the Offeror will forward a copy of the CPARS Update Questionnaire (Attachment P7) to that contract customer’s Program Manager. For all contracts identified which do not have CPARS Reports the Offeror will forward a copy of the Past Performance Questionnaire (Attachment P5) to that contract customer’s PCO, Administrative Contracting Officer, and Program Manager. All questionnaires shall be forwarded within two weeks from the RFP release date with enough lead-time so that responses can be received by the Government concurrent with the Government’s receipt of the Offeror’s Past Performance information submitted as per paragraph 4.1 and 4.2 The Offeror shall include instructions for the customers to send completed questionnaires within two weeks of its receipt via e-mail to John Bohner – Contracts Specialist, at Email john.bohner@navy.mil or via fax number (301) 757-8959, thereby allowing the customer approximately 2 weeks to complete their response. This submittal information is provided at the top of the questionnaires to facilitate the Offeror’s effort in meeting these instructions. The Offeror shall not conduct follow-up actions with regard to this questionnaire. The Government will ensure that the customers have received and will respond to the questionnaires. The Government may send any other questionnaires as necessary.

The Offeror shall provide written consent from their principal subcontractors and critical team members that will allow the Government to coordinate their Past Performance issue(s) with the Offeror. If the Offeror does not submit such written consent, then the Government will address any past performance issues directly with the principal subcontractor or critical team member and the Offeror will forfeit the opportunity to participate in any related discussions. Consequently, for any principal subcontractors and critical team members that do not provide such written consent, provide a point of contact (name, address, phone number, and email address) with which the Government may coordinate these issues and obtain any responses as needed.

The Government may use information other than that provided by the Offeror in their proposals to evaluate past performance. The Government may use Past Performance information obtained from sources other than those identified by the Offeror. The Past Performance Information Reporting System (PPIRS) will be the primary method used to evaluate Past Performance. It is incumbent upon the Offeror to explain the relevance of the data provided. The Government has no duty to search for data to cure the problems it finds in the information provided by the Offeror. The Offeror has the burden of providing thorough and complete past performance information.

(a) Contract Data

Provide all the information identified below separately for each contract. Additionally, provide this information electronically as a separate file on CD-ROM, which contains Offeror’s Past Performance proposal in a Word Table in the format depicted below:

Relevant Contract Data

Prime (P), or Sub (S)

1 – Place of Performance should be the same as being proposed in this solicitation. If different please include an explanation.

2 - CPARS (yes/no) - CPARS completion date - on DOD PPAIS (yes/no) (Indicate whether or not any CPARS have been completed and identify the last CPARS completion date and if it is currently on DoD PPAIS)

3 Recency-Efforts performed within the last five years.

4 - Relevancy – Provide a concise assessment of the degree of relevancy that each contract identified has to the solicitation; identifying tasks and/or aspects of the effort undertaken on the contract that are relevant to the program. Also provide the Offeror’s assessment of the relevancy of the contract in terms of one of the following ratings: Very Relevant (V), Relevant (R), Somewhat Relevant (S), or Not Relevant (N) where:

Past Performance Relevancy Ratings

(b) Relevancy -The Offeror shall explain what aspects of the contract are deemed relevant to the proposed contract. At a minimum, identify key or critical tasks of the solicitation and indicate the relevancy of the “past performance” contract to these tasks. Also identify where contract performance took place and provide rationale why it is relevant to the solicitation if the location is different from where the related effort is proposed to take place.

(c) Past Performance Information-The Offeror shall provide a brief description of performance in delivering quality products in each of the following areas: 1) meeting technical requirements, i.e., the quality of technical performance, e.g., performing analysis, design, testing, etc., 2) meeting schedule requirements, i.e., schedule performance, e.g., on time or late delivery, modification of original schedules and reasons for any changes, etc., 3) controlling contract cost, i.e., cost performance, e.g., on time or late delivery, modification of original schedules and reasons for any changes, etc., and 4) managing the contracted effort, i.e., program management, e.g., cooperation with customer, subcontract management.

(d) Systemic improvement Information-Identify those systemic improvement actions taken to resolve past problems. Describe the techniques, elements, and tools used to correct problems and, if applicable, how these techniques, elements, and tools will be used during this contract.

Earned Value (If applicable): Provide earned value data generated for that contract, such as Cost Performance Report Format I, with variances, Cost Performance Index, and Schedule Performance Index. Identify if there were any Over Target Baselines or restructures, and how performance data was impacted. For CPARS data, explain significant differences between earned value measure and CPARS rating, e.g., Exceptional CPARS rating under Schedule and SPI of 0.85.

Award Fee (If applicable): Provide a summary of the award fee available and earned for each evaluation period over the past three years of an on-going contract, or last three years of a completed contract (both in dollars earned and percentage of available award fee received).

Small Business Concerns Participation Goals (if applicable): Note whether the contract met or exceeded small business, small disadvantaged business, small business HUB Zone, veteran-owned small business, service disabled veteran owned small business, women-owned small business participation and subcontracting goals.

3.2. Past Performance Data Requirements

Provide all the information identified below separately for each contract. Provide a summary of the Customer’s Points of Contact in a MS Word Table using the format below which is illustrated with an example. Include an electronic copy of this table in MS Word on a CD.

1. Offeror’s Name (Prime, Principal Sub, or Critical Team Member, JV/SLE, JV/SLE Member)

1. Contract #,

4. Offeror’s Role (e.g., prime or sub)

2. Questionnaire # __ Sent?

3. For Subs - Agreement to allow Coordination with Prime?

Point of Contact’s Name;

Phone Number, Fax Number and

E-mail address

4. Prime

2. Questionnaire #1: - Sent 5/4/05

3. N/A

Al (PM)

444-444-4444, fax 555-555-5555, Al@RYP

1. CPARS: No

2. Questionnaire #2: - Sent 5/4/05

3. N/A Sue (PCO)

333-333-3333 fax 222-222-2222

Sue@RTP

1. CPARS: No

2. Questionnaire #3: - Sent 5/4/05

3. N/A Joe (ACO)

111-111-1111 fax 888-888-8888

Joe@ RYP

4. Sub

2. Questionnaire # 1: - Sent 5/4/05

3. N/A Sue (PCO)

333-333-3333 fax 222-222-2222

Sue@AB

4. Prime

2. Questionnaire: - Not Sent

3. Agreement: Yes Sue (PCO)

333-333-3333 fax 222-222-2222

Sue@NNB

In this volume, identify contracts, or those portions of a contract, whose performance is within five years of this proposal due date and contain efforts similar to those efforts (e.g., end product or service, contract tasks, contract type, contract dollar value, etc.) required by this solicitation for the Offeror, the principal subcontractors, critical subcontractors, and JV team members.

Additionally, Past Performance information shall be related to contracts, or those portions of a contract, whose performance is within five years from the proposal due date.

The following conditions result in a Not Relevant assessment:

· Contracts from an entity that does not have a defined proposed role and responsibility will be assessed as Not Relevant.

· Contracts from a different physical location (e.g., with different CAGE code/DUNS) than the entity proposed in the roles and responsibility table will be assessed as Not Relevant.

· Contracts that involve little or none of the scope and magnitude of effort and complexities required by this solicitation will be assessed as Not Relevant.

· Contracts, or those portions of a contract, whose performance is older than five years from the proposal due date will be assessed as Not Relevant.

Offerors are advised that contracts assessed as not relevant by the Government will not be considered in the Past Performance assessment.

4.0 VOLUME 4: PRICE/COST PROPOSAL

4.1 Volume Content:

(a) This Volume shall contain the information requested below and shall include a copy of Section B with the Contract Line Item (CLIN) and Sub-CLIN 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. If applicable, Offeror's labor classifications should cross-reference to Department of Labor (DOL) wage determination classifications as much as possible. In addition, the Offeror shall provide a percentage breakdown of the Offeror’s indirect costs and burdens added to the Government estimates for any and all Cost Reimbursable CLINs in section B. Section B prices shall be provided separately in one digital data copy in MS Office 2000 Excel format on CD-ROM media. Within all Excel spreadsheets, the Offeror shall use formulas and functions to the maximum extent possible and avoid using output type “value only” cells. If links are utilized, supply those referenced files. Spreadsheets shall not be protected.

(b) All price/cost and price/cost supporting information shall be contained in section B and the price/cost proposal. No price or pricing information shall be included in any other technical volume including cover letters. Offeror are responsible for submitting sufficient information to enable the Government to fully evaluate their price/cost proposal.

4.2 Ground Rules and Assumptions:

(a) As this is a competitive acquisition with adequate price competition anticipated, any price/cost documentation requested shall not be certified cost or pricing data in accordance with FAR 15.406-2. However, in the event that adequate price competition does not exist after receipt of proposals, the Government reserves the right to request additional cost or pricing data as necessary from both the Offeror and subcontractors and may conduct negotiations with the Offeror, pursuant to FAR Part 15.403-4, in order to ensure a reasonable and realistic price/cost. Further, the Offeror may be required to provide a Certificate of Current Cost or Pricing Data prior to award, pursuant to FAR 15.406-2. Offeror shall acknowledge the requirement to provide additional cost or pricing information and certify the data prior to award if/when requested by the Government.

(b) The cost of general purpose items required to conduct normal business operations will not be considered allowable Other Direct Charges. 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 Offeror shall provide sufficient information to support its price/cost as well as an explanation of all ground rules and assumptions that affect the price/cost estimates. Any apparent imbalances in the pricing, high or low proposed prices/costs 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.

4.3 Price/Cost Information:

(a) Reasonableness and Consistency between the Technical and Price/Cost Volumes. Demonstrate that the unit prices and the total proposed price/cost are reasonable, realistic, and commensurate with the work required by the solicitation and the technical and management approaches identified in the Technical Volume of the proposal. Show traceability with the CLINS, SubCLINs, the PWS, proposed effort, proposed manning levels, and the prices/costs. Refer to specific sections in the Technical Volume as needed to illustrate the consistency between the Price/Cost Volume and the Technical Volume. The Offeror shall explain any inconsistency between promised performance and price/cost, as well as any appearance of unbalanced pricing, in the proposal.

(b) "The Government is not soliciting any Offeror investments. However, in order to properly assess a proposed cost/price that appears low or decreases program costs due to a corporate decision to absorb costs (e.g., company investment or management challenge or a contribution of resources and/or equipment), the Offeror shall fully identify and explain any such investments. Additionally, the Offeror shall propose an H-clause that clearly identifies what equipment and/or material, and the associated data and data rights that are conveyed to the Government, and that also specifically states the fiscal adjustment(s) and identifies the Offeror's liability in Ground Rules and Assumptions”, and in “Terms & Conditions, Assumption and Exceptions or Deviations” of its proposal. This shall be a contractually binding clause."

(c) The Offeror shall identify the proposed prices/costs for each CLIN or SLIN as specified in Section B of this solicitation. The Offeror shall provide a fully burdened rate (i.e., "wrap-rate") for each CLIN/SLIN. The Offeror shall sum up the proposed Total Prices/Costs by contract year, and provide a total overall price/cost of the proposal using estimated quantities, and submit a complete Section B.

(d) Direct/Indirect Rates: The Offeror shall use and submit Forward Pricing Rate Agreements (FPRAs), Collective Bargaining Agreements (CBAs), and Area Wage Determinations (AWDs) if applicable. 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 current hourly rate set forth in the Department of Labor Wage Determination, and shall not include escalations for adjustments under the Service Contract Act.

(e) The Offeror shall provide a schedule which contains the proposed burden rates by year for material, direct labor overhead, General and Administrative expense, fee/profit and any other applicable burden applied to direct cost elements. The Offeror shall also state the number of hours used in determining an employee work year.

(f) Offeror's labor classifications should cross-reference to Department of Labor (DOL) wage determination classifications as much as possible. In addition, the Offeror shall provide a percentage breakdown of the Contractor indirect costs and burdens added to the Government estimates for the Cost Reimbursable CLINs in section B.

(g) All cost and pricing information shall be contained in Volume 4 only. Offeror’s shall submit their cost/price proposal utilizing the CLIN Breakout Spreadsheet (Attachment P6). The offeror shall submit a fully completed Attachment P6.

(h) Regardless of the type of CLINs (e.g., CPFF, CPIF, CPAF, or FFP) under the solicitation, offeror shall fully disclose the build up of cost/price of each CLIN.

(i)When completing P6, the offeror, (e.g., prime vendor) shall not utilize any fully burdened hourly rates when pricing the labor of its employees.

(j) If a subcontractor of the offeror utilizes fully burdened rates in its proposal to the prime, the subcontractor shall provide its own P6 delineating the build up of those rates to the Government.

(k) This requirement is a small business set-aside. The offeror shall provide a breakout to demonstrate how the prime contractor will perform at least 50% of the cost of contract for personnel; with its own employees for each period of performance in accordance with FAR clause 52.219-14. Cost of contract incurred for personnel includes direct labor cost, overhead that has only direct labor as its base, and the small business’s General and Administrative (G&A) rate multiplied by the labor cost.

(l) Payroll verification shall consist of a form containing the title, direct labor rate, and a signed certification by an authorized representative of the company that the information contained in the form is correct. If any of the rates utilized by the offeror or any subcontractors differ from the DCAA information and/or payroll verification a justification shall be provided for the difference.

4.4 Use of Government Furnished Property:

(a) If the Offeror proposes/requires the use of Government Furnished Equipment (GFE) or Government Furnished Information (GFI) in addition to the equipment listed in Attachment 7, then the Offeror shall provide:

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

· Where the GFE/GFI is to be located.

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

· 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.

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

If none, so state.

4.5 Other Costs

The Offeror shall identify additional costs, that would be incurred that has not been identified in the solicitation and describe in detail the performance that would cause these costs. Also, describe any assumptions with regard to Government’s actions (e.g., providing resources whether it be equipment or people) that enabled the proposed price/cost to be lower and identify the amount by which it is lower.

AVMI Specific Cost Proposal Instructions:

1.0 All costs shall be contained in Section B and the cost proposal. Adequate substantiation is necessary for the Government to evaluate the Contractor’s estimate for realism, reasonableness and completeness. Proper presentation and adequate supporting documentation will ensure the cost proposal is efficiently evaluated and all assumptions are understood. The burden of proof for cost credibility rests with the Contractor.

2.0 Contractor Rates for Cost Reimbursement Labor (CLINs X001):

The contractor 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 contractor and subcontractor (if necessary). Show traceability to Attachment P-1 to ensure proper use of the rates.

2.1 Direct Rates: The contractor shall provide the most current direct labor rates, for both the contractor and any subcontractors (if applicable) that are in effect at the time of proposal submission. This includes the current direct labor rates from Forward Pricing Rate Agreements (FPRAs), Collective Bargaining Agreements (CBAs), and Area Wage Determinations (AWDs), if applicable. The contractor shall identify whether the labor rates proposed are FPRAs, CBAs, AWDs, ACO/DCAA recommended rates, or contractor proposed rates. The contractor shall propose direct labor rates to be in compliance with the current hourly rates set forth in the Department of Labor Wage Determination for the applicable labor categories. Payroll verification (by employee name) is required only for currently employed proposed personnel.

2.2 Indirect Rates: The contractor shall identify the indirect rates, for both the contractor and any subcontractors (if applicable), used in the proposal. The contractor shall identify whether the indirect rates proposed are FPRAs, CBAs, AWDs, ACO/DCAA recommended rates, or contractor proposed rates. If contractor proposed rates are used, provide substantiation for their calculation and the last three years of actual indirect rates. 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).

3.0 RESERVED

For purpose of your proposal, the following labor categories and associated hours should be used to calculate the proposed amount for this line item for each contract year. The Government will evaluate any Option to Extend in accordance with FAR 52.217-8/9 based on the value of Option Year III costs submitted as part of the proposal. Upon contract award the total number of proposed hours will be entered in the Level of Effort Clause contained in Section B of the contract.

TABLE 1 – AMENDMENT #3

Subtotal

China Lake

Pt Mugu

China Lake

Pt Mugu

Subtotal

Total

4.0 Other Direct Costs – Travel and Materials: CLINs X002 and X003 are cost reimbursable, with no fee. Any proposed mark-up/burden (indirect costs) for CLINs X002 and X003 including any subcontractor mark-ups/burdens (for example, outsourcing the procurement service associated with processing the orders for direct parts, repair parts, and/ or materials), shall be added to the Government’s estimated values identified below in establishing the total estimated price. Contractor mark-ups are limited to one subcontractor tier only. Contractors must clearly indicate the total mark-up/burden rate, including applicable subcontractor mark-ups/burdens, and the individual cost elements that make-up the mark-up/burden rate in their respective proposal. Fee/ Profit is not allowed in the cost reimbursement CLINs and shall not be included as part of the mark-up/burden rate. Unless other clauses in this contract limit the amount of burden allowed on cost-reimbursable items, the contractor shall be allowed its normal burdens in accordance with FAR 52.216-7, “Allowable Cost and Payment”.

The cost of general purpose items required to conduct normal business operations will 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.

In Section B, the contractor shall add their indirect costs and applicable burdens to the Government estimated amounts, shown below, to determine the proposed amount to be provided on the Estimated Cost line for each CLIN.

5.0 CLIN X004 is…