N00421-16-R-0073_Amendment_0004m.docx

N00421-16-R-0073

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION A - SOLICITATION/CONTRACT FORM

The following have been modified:

AMENDMENTS

AMENDMENT 0004 Changes:

The changes are noted with the Questions and Answers below.

QUESTIONS AND ANSWERS (As of 07 March 2019)

Question 1: Does the Government desire change bars or strikeouts for changes to the Cost Volume or a complete resubmission of the volume without markings?

Answer: Offerors shall resubmit the entire Cost Volume without markings. Change bars or strikeouts will not be accepted.

Question 2: Please confirm that offerors should include the cost of OT and Danger pay applicable to the directed hours in their Labor CLIN as part of the total evaluated CPFF.

Answer: Offerors shall include the cost of any Overtime and/or Danger Pay premiums as part of the total evaluated CPFF. As stated in Section L, Part 3, Paragraph 3.3(h), Offerors are to provide an H-clause to address if an Overtime premium and/or Danger Pay premium will be used and if so, what the premium rate will be.

Question 3: Please clarify whether offerors should assume that the cost for DBA Insurance premiums is assumed to be an ODC within the government provided plug values, or should be included in the CPFF Labor CLINs.

Answer: The cost for DBA Insurance premiums is assumed to be an ODC.

Question 4: The hours in this table sum to 505,440, not 537,600. Please clarify the government estimate for this work.

Answer: Section L, Part B, Section 3.8.2 has been updated to reflect the correct amount of hours. The total number of hours across all Ordering Periods is 505,440.

Question 5: There is a significant impact of the changes in Amendment 0003 which require adequate time to receive inputs from team mates, incorporate all changes and new requirements into our response while continuing to ensure that the response presents maximum value and minimal risk to the customer. This revised response also again requires preparation and delivery of hard copy volumes. Therefore we request a two week extension to the due date for the revised proposal response.

Answer: The proposal due date will be extended to 21 March 2019 at 2PM EST.

Question 6: Amendment 0003, Section L.3.3(c) Direct/Indirect Rates states that "the Offeror shall propose in compliance with the current hourly rate set forth in the Department of Labor Wage Determination as applicable." Is this requirement still applicable given that Amendment 0003 removed the Wage Determination and the Service Contract Act clauses?

Answer: Section L, Part B, Section 3.3(c) has been updated to remove the above statement. Wage Determinations are not applicable to this contract.

Question 7: In Amendment 0003, Section L.3.3(f) was removed; however, numbering for the remaining sections of L.3.3 was not updated. Will the Government update the Section L numbering or allow offerors to mark this section as "Reserved" so that proposals can conform with the one-to-one numbering requirement of Section L.

Answer: Section L, Part B, Section 3.3 has been updated to mark what was previously paragraph (f) and paragraph (g) as Reserved.

Question 8: Section L.3.3(g) removed the requirement for a Professional Employee Compensation Plan; however, FAR 52.222-46 Evaluation Of Compensation For Professional Employees FEB 1993 is still included by reference. Is a Total Compensation Plan still required?

Answer: Clause 52.222-46 Evaluation of Compensation for Professional Employees has been removed.

Question 9: The Labor Hours Table in Section L.3.8.2 totals to 505,440 instead of the RFP estimate of 537,600 Hours. Will the Government please provide an updated Labor Hours Table to reflect 537,600 Hours?

Answer: Section L, Part B, Section 3.8.2 and Section B, 5252.211-9503, Level of Effort (Cost Reimbursement) (NAVAIR) (Dec 2012) have been updated to reflect the correct amount of hours. The total number of hours across all Ordering Periods is 505,440.

Question 10: Section L.3.8.3 on page 109 indicates that offeror’s are to propose CONUS effort at 120 hours per position and OCONUS effort at 12 hours per day and 7 days per week or 84hrs per week per position. The table in this section provides the CONUS and OCONUS hours for each category. Based upon the instructions there seems to be inconsistency in the hours between the number of positions in CONUS and the positions in OCONUS. As an example, for the Electronics Technician Maintenance I in year 1, there are 5 positions in CONUS (600 total/120 ea), however OCONUS shows 4.37 positions (18,000 total/84 hrs per wk/49 wks). Would the Government please clarify how the OCONUS hours are calculated in the table based upon the 84 hour work week?

Answer: Section L, Part B, Section 3.8.2 has been updated to reflect the correct amount of hours. The CONUS requirement for Ordering Year 1 for Electronics Technician Maintenance, II has been increased to 840 hours and for Electronics Technician Maintenance, III has been increased to 960 hours. The requirement remains that 120 hours per person shall be used CONUS for training prior to deployment.

Question 11: Given the extensive changes to cost/price in Amendment 0003 and the imminent receipt of answers to questions, will the Government provide an extension to March 22nd to allow offerors sufficient time to update pricing, cost narrative, and to facilitate subcontractor sealed packages?

Answer: The proposal due date will be extended to 21 March 2019 at 2PM EST.

AMENDMENT 0003 Changes:

The following changes were made within the solicitation.

The proposal due date is 13 March 2019 at 2pm EDT.

Questions answered in Amendment 0001 and Amendment 0002 shall be disregarded. Offerors shall submit any questions to Amendment 0003 no later than 04 March 2019. The Government intends to respond to all timely questions received within three business days after the question submission deadline.

There are no changes to the Technical and Past Performance requirements in this solicitation. If there are any changes to the Technical volume, Offeror’s shall resubmit the entire Technical Volume. If there are any changes to the Past Performance volume, Offeror’s shall resubmit the entire Past Performance volume. Change pages are not authorized. The Government will use the release date for Amendment 0003 as the basis for recency determinations during Past Performance evaluations. If there are no changes to the Technical, Past Performance, and/or Cost proposals, the Offeror shall state: “The Offeror acknowledges Amendment 0003. There are no changes from the [Technical, Past Performance, and/or Cost] proposal submitted on [date], and the Government should utilize that submission for evaluation.”

Section A, Items 2 and 3 have been removed. This contract will not require Wage Determinations.

Section C, Paragraph 8.3 has been updated to indicate that security clearance requirements shall be met 60 days after Task Order award.

Section C, Paragraph 12.1 has been updated to include a statement that SCA Codes are to be used for labor category descriptions, but are not held to SCA regulations and pay requirements.

Section B, B-1 Composite Rates has been updated to include a statement that Overtime and Danger Pay will be calculated using a Contractor-provided H-clause for both Overtime and Danger Pay. The Period of Performance was also updated.

Section F has been updated to revise the Period of Performance.

Section F, 5252.211-9507 has been updated to include that the period of performance for the contract will continue 60 months after contract award.

Section I has been updated to remove clauses 52.222-4, 52.222-17, and 52.222-42.

Section J has been updated to remove Attachment 07, Wage Determinations.

Section L, Part 3, Paragraph 3.3(c) has been updated to state that the contract resulting from this solicitation will have CPFF CLINs for labor and COST CLINs for ODCs. Offerors shall not deviate from this pricing approach. Inclusion of a completion bonus or award fee, or anything similar to that, will render an Offeror’s proposal unawardable.

Section L, Part B, Paragraph 3.3(f) and 3.3(g) have been removed. Section L, Part B, Paragraph 3.3 has been re-lettered.

Section L, Part 3, Paragraph 3.3(h) has been updated to instruct Offeror’s to provide an H-clause to address if an Overtime premium will be used and if so, what the premium rate will be. Offeror’s shall address the Overtime rate in their proposal as well.

Section L, Part 3, Paragraph 3.7 has been revised.

Section L, Part 3, Paragraph 3.8.2 has been updated to notify Offeror’s that the Danger Pay rate for Afghanistan is 35% of the direct labor rate, if the Offeror chooses to apply Danger Pay. Offeror’s shall provide an H-clause to address if Danger Pay will be used and if so, to which hours the Danger Pay rate applies.

Section L, Part 3, Paragraph 3.8.2 has been updated to reflect a change in OCONUS and CONUS labor hour requirements. An additional employee shall not be proposed for solely CONUS work. Danger Pay has been removed from the Labor Hours Table, as it shall be used at the discretion of the Offeror. The Offeror shall provide an H-clause to explain how Danger Pay was applied to the proposed rates as well as to Overtime. The separate line for Overtime hours has been removed. The total number of hours for each position is broken out as CONUS and OCONUS. Offeror’s are also notified that for each position, each employee is expected to work a total of 120 hours CONUS and 12 hours a day, 7 days a week when OCONUS.

Section M, Part B, Paragraph 3.1.1 has been updated to reflect that the Government may use historical and current rates on Government contracts when conducting a cost realism analysis.

Section M, Part B, Paragraph 3.5.1 has been deleted. This section has been renumbered.

Section M, Part B, Paragraph 4.0 has been updated to state that the evaluated cost/price of the six-month period will be calculated using the Government’s MPC of the final year of the ordering period.

SECTION L - INSTRUCTIONS, CONDITIONS AND NOTICES TO BIDDERS

The following have been modified:

SECTION L

L – [1] CONTENT OF PROPOSAL (SERVICES) (20 NOV 2017)

PART A GENERAL INSTRUCTIONS

1.0 GENERAL

The Offeror must respond to all requirements of the solicitation and not alter or rearrange the solicitation. The Offeror is advised that the Government may incorporate any portions of the Offeror’s proposal into the resulting contract.

In presenting material in the proposal, the Offeror is advised that quality of information is more important than quantity. Clarity, brevity, and logical organization shall be emphasized during proposal preparation. Statements that the prospective Offeror understands, can comply with, or will comply with, the specifications, and paraphrasing the requirements or parts thereof without supporting information are considered inadequate by the Government, and may result in assessing weaknesses and/or deficiencies.

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 subfactor clearly may be considered a deficiency. Unnecessarily elaborate brochures or other presentation materials beyond that sufficient to present a complete and effective proposal is neither necessary nor desired.

The Government advises the Offeror that taking exception or deviating from any term or condition of the RFP may result in the assessment of a deficiency to the proposal.

Throughout these instructions, a “principal subcontractor” is defined as a subcontractor who provides at least 15% of the proposed total labor hours, for the contract or provides one or more Key Personnel. “JV Team member” is defined as one of the entities that make up a joint venture (JV) formed for the purpose of responding to this solicitation.

Questions: Offerors may submit questions requesting clarification of solicitation requirements by emailing the contract specialist at lauren.anderson@navy.mil. It is required that all questions be received within 10 calendar days of the date this solicitation is issued.

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 and table 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. Graphic resolution, including such data as tables or charts, should be consistent with the purpose of the data presented.

The Offeror will provide one complete copy of the proposal to the Procuring Contracting Officer (PCO) as electronic files fully compatible with Microsoft 2010 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

The Offeror must present proposal information in a manner that facilitates a one-to-one comparison between the information presented and this Proposal Instruction. Proposal information must be structured such that its Volume/paragraph number matches the Proposal Instructions Volume/paragraph number provided in section “Part B Specific Instructions” to which it is responding, although the Offeror may add lower tier subparagraphs. The Offeror must provide reasons it will not provide information for a particular paragraph. The proposal information instructions are structured by paragraph numbers where first, second, third, and fourth parts correspond to the volume, section, and element, etc., in the Offeror’s proposal.

Each volume of the proposal shall be submitted as one original and additional copies as specified in the table below. The table below supersedes the copies requested in Block 9 of the Standard Form (SF) 33. 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 limits for each volume, if any, are also specified in the table below. Any pages submitted exceeding the page limit will be disregarded and will NOT be evaluated.

Proposal Organization and Page Recommendations:

1 Original;

3 Paper Copies;

1 Electronic Copy

Understanding of the Work -Sample Task

20 pages

3 Paper Copies;

1 Electronic Copy

3 Paper Copies;

Annex # 1

1 Paper Copy;

Each volume shall contain the following information:

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)

Volume 1 Technical Example: Para 3.1 Note: This column shall address all paragraphs in Sections xx and xy of the SOW/PWS.

Volume 1 Technical

Volume 1 Technical

4.0 PROPOSAL SUBMISSION:

Clearly mark all packages with the solicitation number. The submission date for all Volumes shall be no later than the date and time specified in Block 9 of the SF 33 of the RFP.

Offeror shall hand carry or submit proposals via United States Postal Service (USPS) or through a commercial carrier. Proposals hand carried or sent via commercial methods shall be delivered, attention Kristen Ferro and /or Lauren Anderson to the address below.

Naval Air Systems Command Code: AIR-2.5.1.2.10 (Lauren Anderson) Address: 47060 Liljencrantz Road, Building 433 Patuxent River, MD 20670 Solicitation Number: N00421-16-R-0073

Proposals submitted via USPS shall be delivered, Attention Kristen Ferro and /or Lauren Anderson, to:

Naval Air Systems Command Code: AIR-2.5.1.2.10 (Lauren Anderson) 21983 Bundy Road, Building 441 Patuxent River, MD 20670 Solicitation Number: N00421-16-R-0073

Offeror shall not submit proposals by facsimile or electronically via email.

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 3 Cost/Price.

Each box shall 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 notice of any changes and additional information provided by the Government for the solicitation, please go to www.FedBizOpps.gov.

PART B SPECIFIC INSTRUCTIONS

Cost or pricing information shall only appear in the Price/Cost volume.

1.0 VOLUME 1: TECHNICAL

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:

· Understanding the Work

· Management Approach

· Workforce

1.1 Understanding of Work/Sample Tasks

The Offeror shall provide a written response to the sample task provided below. The Offeror’s response should assume that all sample tasks would be issued as Term Level of Effort (LOE). The response shall include everything identified within the tasks and proposed capability to perform the requirements of the Statement of Work tasking:

Sample Task

Subject: Operation and Maintenance Support for the C41 Systems in support of Code 4.11.4 SCMS Division.

Background: The Naval Air Warfare Center Aircraft Division (NAWCAD) Special Communications Mission Solutions (SCMS) Division has been tasked to provide quick reaction response to a request for the operation and maintenance support for the C4I systems on a fleet of 600 fielded Special Operations Forces (SOF) vehicles to include: heavy, medium, and light vehicle platforms.

To support this tasking, SCMS requires the contractor to provide operation and maintenance support including inspecting, troubleshooting, modifying, and testing the current state of vehicle C4I operations and correcting discrepancies of the supported sponsor. Providing this support requires personnel to be forward deployed to the United States Central Command (USCENTCOM) Area of Responsibility (AOR), with two (2) hub locations. One location has 200 vehicles and supports operations in Afghanistan, the second supports 400 vehicles in Kuwait and surrounding countries within the region. Field Service Representatives (FSR) will be moved from the hub location to Forward Operating Bases (FOB) for permanent or temporary assignment as needs dictate. Transportation from the hub locations within the AOR will be government provided. The duration of this task will be 24 months and the work schedule for Contractor Support Services (CSS) personnel will be 12 hours a day, 7 days a week. The contractor has 90 days from the issuance of a task order to meet the Government’s required staffing level at the FOB. This 90 day period from task order issuance to “boots on the ground” supporting C4I systems includes a Government provided 40 hours of specialized system training and mandatory Government deployment qualifications.

The contractor shall staff each hub with one lead FSR to support the specific region. The contractor shall provide initial staffing of eight (8) FSR’s in the Afghanistan region and twelve (12) FSR’s in the Kuwait region. After 12 months at this staffing level, the requirement will “plus up,” or be modified to require an additional FSR to report to the hub in Afghanistan and two (2) FSR’s to the hub in Kuwait. The contractor has 60 days to complete the “plus up” requirement.

The Offerors response to the sample task shall include anything identified within the sample task description and include the following information and follow this outline:

1.1.1 Team - Identify the contractor team members participating in the sample task; and if applicable, describe the roles and responsibilities of any subcontractors, and/or JV team members required to perform the work.

1.1.1.1 Explain your methodology for obtaining, tracking and providing the initial qualified personnel for deployment.

1.1.1.2 Describe the team’s organizational structure that supports the deployment of contractor personnel overseas.

1.1.2 Assumptions - Detail all assumptions (as applicable) relative to the sample task and your technical approach to ensure full understanding of your response by the Government.

1.1.3 Technical Approach - Provide a detailed description of the technical approach including a step-by-step procedure and methodology which would be used in accomplishing the task.

1.1.3.1 Identify the “work up time” activities from day 0 (when the Government issues the TO) to when the Offeror will have the initial 20 contractor personnel on-site at the hub location. Identify separately the work up time and strategy for the three (3) person “plus up” requirement to the hubs noted in the sample task.

1.1.3.2 Include a 24 month schedule for the rotation of personnel to include any vacations or other out of deployed location time

1.1.3.3 Identify a process for a quick reaction (out of cycle) rotation due to illness or injury to personnel.

1.1.3.4 Identify all non-personnel resources required.

1.1.3.5 Describe the process by which the Offeror will manage hardware and supply activities supporting the deployed contractor personnel, including but not limited to identification of material sources, coordination with sponsor and SCMS Government personnel, movement of materials from source to end user, and onsite material management.

1.1.4 Performance Risk Analysis - Identify contingent events inherent to the nature of the effort that could, if they were to occur, endanger satisfactory performance. Focus on critical events that are realistically likely to occur and that would pose serious problems (do not try to identify every event that could cause some minor difficulty).

1.1.5 Integrated Master Schedule - Provide a detailed schedule of events and briefly describe each activity with its inputs and outputs and the interrelationships and interdependencies among the activities for the sample task.

1.1.6 Tools - Identify the tools that the deploying team would utilize to perform the task.

1.1.7 Identify the process that will be used to track progress towards completion of task.

1.2 Management Approach:

The Offeror’s management approach shall address the following:

1.2.1 Overall Management Approach:

1.2.1.1 Adequacy of management and resources to support the technical requirements of the solicitation and ability to function as a viable and productive partner with the Government;

1.2.1.2 Procedures to be taken to ensure quality and cost control;

1.2.1.3 Plan for early identification and resolution of problems; and

1.2.1.4 Identification of potential performance risks and proposed risk mitigation solutions.

1.2.2 Usage of Teaming, Personnel, and Subcontractors: Offerors shall present in sufficient detail the following:

1.2.2.1 Description of the cohesive integration of the teaming partners, personnel, and subcontractors 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;

1.2.2.2 How and why selected subcontractor(s) were chosen, which knowledge and skills the Offeror will be acquiring through each subcontract, the level of subcontract effort expected.

1.2.3 Qualification, Recruitment, and Retention: Offerors shall present in sufficient detail the following:

1.2.3.1 Offerors shall describe their plan for hiring and retaining qualified personnel in all labor categories.

1.2.3.2 Description of how the Offeror will ensure personnel have the security clearances within the required timeframe, and that personnel meet the experience and education requirements as detailed in the personnel labor category descriptions.

1.2.4 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 60 day period after award that ensures a smooth workplace changeover from an incumbent with no loss of services and minimal loss of corporate knowledge. The plan should take into consideration the following elements as well as any additional elements deemed necessary by the Offeror:

1.2.4.1 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.

1.2.4.2 Quality Assurance. The Offeror shall provide a plan of action to ensure continuation of quality review processes during the transition period from the incumbent to the successful Offeror.

1.2.4.3 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.

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

1.2.4.5 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.

1.2.4.6 Data Transfer. The Offeror shall provide a plan of action for the efficient inventory and transfer of program data from the incumbent to the successful Offeror.

1.3 Workforce

Key Personnel Resumes

For all proposed current or contingent Key Personnel, the Offeror shall provide a resume of the work assignments, training, etc., that demonstrates the experience and specialized qualifications of each key person proposed. Each resume shall contain, at a minimum, the following information:

· Employee name

· Years of employment experience in chronological order including narrative description of duties and 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)

Offerors shall not propose prospective hires for any Key positions.The Government may check educational background to verify degrees or certifications received.

2.0 VOLUME 2: PAST PERFORMANCE

2.1 General

Sources of past performance evaluation information include information provided by the Offeror in response to the solicitation, information obtained from questionnaires, and any other sources available to the Government, including, but not limited to, the Past Performance Information Retrieval System (PPIRS), Federal Awardee Performance and Integrity Information Systems, Electronic Subcontract Reporting System, or other databases; the Defense Contract Management Agency; and interviews with Program Managers, Contracting Officers, or Fee Determining Officials.

The Offeror shall complete the Past Performance Information Form, found as Attachment P1, for each past performance reference performed within five years of the solicitation release date. The Offeror shall submit no more than five Past Performance Information Forms as the Prime Contractor, no more than two forms for each principal subcontractor, and/or no more than two forms for each JV team member. The Offeror shall submit written consent from its principal subcontractor(s) and JV team member(s) that will allow the Government to coordinate any past performance issues directly with the Offeror. If the Offeror does not submit the written consent, the Government will address any past performance issues directly with the principal subcontractor or JV Team member and the Offeror will forfeit the opportunity to participate in any related discussions. Consequently, for any principal subcontractor and JV team member that does not provide the written consent, the Offeror shall provide the name, address, phone number, and email address for the point of contact with whom the Government may address any past performance issues.

The primary source of past performance information will be PPIRS. If a Contractor Performance Assessment Report (CPAR) exists for multiple years for the same contract/order, all periods of performance within the recent period specified above, for that contract/order, will be used for evaluation. In the event a CPAR does not exist for a past performance reference, the Offeror shall submit a Contractor Performance Assessment Questionnaire (CPAQ), Attachment P2, to the Program Manager who is the Assessing Official. The Offeror shall include instructions for the Program Manager to send completed questionnaires to be received by the government prior to the proposal submission due date via e-mail to Lauren Anderson, Contract Specialist, at lauren.anderson@navy.mil or via fax number 301-995-1450, thereby allowing the customer approximately two weeks to complete their response. All CPAQs shall be provided to the Government concurrently with the Offeror’s proposal submission.

3.0 VOLUME 3: PRICE/COST PROPOSAL

-If subcontractors are proposed, they shall provide the same information required for the prime contractor, unless otherwise noted below.

3.1 Volume Content:

Contractor Name (Indicate Prime, JV Team Member, or Sub)

v. Guarantee the length of proposal validity (for at least 180 days after proposal submission).

(b) This Volume shall also contain 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 using the estimated quantities value in the solicitation and the instructions below. Section B prices shall be provided separately in one digital data copy in MS Office 2010 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.

(c) 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. Offerors are responsible for submitting sufficient information to enable the Government to fully evaluate their price/cost proposal.

3.2 Ground Rules and Assumptions:

(a) As this is a competitive acquisition with adequate price competition anticipated, certified cost or pricing data in accordance with FAR 15.403-1 is not required. 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. 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.

(b) 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.

3.3 Price/Cost Information:

Offerors shall submit their fully completed cost/price proposal utilizing the Cost Summary Format (Attachment P6). The spreadsheet shall be formatted on letter size (8.5 X 11) paper and shall be unprotected and unlocked, with formulas intact to show mathematical operations. The Offeror shall use the CLIN Summary tab to breakout total proposed costs by CLIN.

Complete Attachment P3, (Fully Burdened Labor Rates); detailing the fully burdened labor rates for all prime contractors and their subcontractor personnel. Fully burdened labor rates are defined as direct labor rates plus all applicable burdens, to include indirect rates, fee, and subcontractor pass-through costs where applicable. For subcontractor labor, the fully burdened labor rates shall be inclusive of any pass-through charges (e.g., subcontractor handling, fixed fee on subcontractor labor, etc.) applied by the prime contractor. Proposed fully burdened labor costs may be subject to the NAVAIR labor tripwire identified in Section M. Offerors that propose a fully burdened per employee labor cost exceeding the labor tripwire shall provide rationale in their cost proposal narrative section that justifies the reasonableness of the tripwire cost for the applicable employees.

(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, PWS, proposed effort, proposed manning levels, and 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 investments. However, in order for the Government to properly assess a proposed price/cost that appears low due to a corporate decision to absorb costs, e.g., lower than usual burdens or rates, the Offeror shall fully identify and explain any such investments.

(c) Direct/Indirect Rates: The Offeror shall submit Forward Pricing Rate Agreements (FPRAs) and Collective Bargaining Agreements (CBAs) as applicable for all proposed personnel. The Offeror shall identify whether the labor rates proposed are FPRAs, CBAs, AWDs, ACO/DCAA recommended rates (FPRRs), or Offeror proposed rates (FPRPs). The Offeror shall provide Defense Contract Audit Agency (DCAA) Information/Payroll Verification information as follows: A DCAA point of contact, with a current e-mail address, must be provided for the prime and each subcontractor. The Offeror and proposed subcontractors shall provide the most current DCAA Provisional Billing Rate Approval Letter, DCAA Final Billing Rate Approval Letter, and/or DCAA Forward Pricing Rate Agreement recommendation, payroll verification for currently employed proposed personnel, and any other information necessary to substantiate the rates proposed. 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. For contingent hires, the Offeror shall provide contingent offer letters outlining salary information for contingent hire employees. For any prospective hires for any non-key personnel, provide information to substantiate the rates proposed. All contingent hires shall have a letter of intent submitted under the Cost Volume. The letter of intent is a separate written agreement, inclusive of salary information, signed by the potential employee(s) to work for the Offeror effective at contract award. Any proposed consultants shall have a consultant agreement substantiating the rates proposed. If a composite rate or other pricing methodology (e.g. cost estimating relationships) is utilized, the Offeror shall demonstrate how those rates were developed. Subcontractors and team members shall provide this information either separately or included in the Offeror’s submission of this document.

The contract resulting from this solicitation will have CPFF CLINs for labor and COST CLINs for ODCs. Offerors shall not deviate from this pricing approach. Inclusion of a completion bonus or award fee, or anything similar to that, will render an Offeror’s proposal unawardable.

The following definition applies:

- A “contingent hire” is an individual who has committed, under a signed letter of intent, inclusive of salary information, to being employed by the Offeror if the Offeror is awarded the contract.

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. If DCAA has not reviewed the rate information for an Offeror or one of its subcontractors, the Offeror must submit a detailed justification of the proposed direct and indirect rates. The Offeror shall also provide documentation verifying that it has a DCMA approved Accounting System in accordance with DFARS clause 252.242-7006, or state that its Accounting System has not been approved by DCMA. Offerors shall provide the last three (3) years of actual indirect information.

(d) Except for FFP type of CLINs (e.g., CPFF, CPIF, or CPAF) under the solicitation, the Offeror shall fully disclose the buildup of cost/price of each CLIN.

(e) When completing the Cost Summary Spreadsheet (Attachment P6), the Offeror shall not utilize any fully burdened hourly rates when pricing the labor of its employees.

(f) Reserved.

(g) Reserved.

(h) Provide a narrative that addresses any assumptions made during the preparation of the cost/price proposal and discuss the basis for the cost elements listed below:

· Labor hours per labor category. For evaluation purposes, the Offeror shall propose the Labor categories/hours as outlined in paragraph 3.8.2 below.

· Direct labor rates by category. The Offeror is required to submit labor rates for all proposed current, contingent, and prospective hire individuals. If composite or category averages are proposed, provide a breakdown of how rates are developed. If necessary provide a narrative to describe derivation of labor rates, use of uncompensated overtime, pools to which indirect rates are applied, historical /provisional billing rates for indirect rates for the last 3 years and description, and amount of proposed other direct costs. If the Offeror requires the use of consultants in performance of the effort, the consultant cost shall be captured under the appropriate labor CLIN not the ODCs CLIN.

· Escalation on labor. Offerors, including subcontractors, shall address escalation for all Non-SCA labor categories, and shall provide rationale for the specific escalation rate used. Offerors that do not include escalation, or an explanation as to why it is not included, may be considered unrealistically low and may have their proposals adjusted by the Government to include escalation in the option periods.

· Overtime. Offeror’s shall provide an H-clause detailing how Overtime is applied to the specified labor categories. Offeror’s shall detail their cost build-up for Overtime in their proposal.

· Danger Pay. Offeror’s shall provide an H-clause detailing if and how Danger Pay is applied to the specified labor categories. Offeror’s shall detail their cost build-up for Danger Pay in the proposal.

· Indirect costs (e.g., Overhead, Fringe Benefits, General & Administrative (G&A), etc.)

· Information needed to explain the Offeror’s estimating practices

· Profit/Fee: Identify profit/fee rate and total amounts proposed and identify the various cost elements to which the profit/fee is being applied. Profit, Base, Award, and Incentive fee rates, as applicable in Section B, must be clearly distinguishable. Profit/Fee shall not be applied to ODCs.

· Other Direct Costs (ODCs) by specific cost element (e.g., Travel, Material, and NMCI). Reimbursement for Travel will be in accordance with FAR 31.205-46. If the Offeror proposes burdens on the Government provided ODC estimates, 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.

· When the Offeror elects to claim Cost of Money (COM) as an allowable cost, the Offeror must submit a COM form and show the calculations of the proposed amount.

3.4 Small Business (SB) Utilization Strategy:

All Offerors shall describe their strategies for utilizing SB Concerns in the performance of this contract, whether as a JV, teaming arrangement, or subcontractor to achieve a Government established Small Business Participation goal of no less than 23% of the total contract value. Small business Offerors should include themselves in addressing their strategies. Although the aforementioned stated goal represents the Small Business category, Offerors shall include goals for not only Small Business, but also for Small Disadvantaged Business, Veteran-Owned Small Business, Service-Disabled Veteran-Owned Small Business, HUBZone Small Business, and Women-Owned Small Business. All goals shall be presented in both dollars and percentages in relation to total contract value. This strategy is separate from, but shall be consistent with, the SB Subcontracting Plan, if such a Plan is required.

SB Subcontracting Plans: The Large Business Offeror shall provide its SB Subcontracting Plan conforming to the requirements of FAR 19.7 and DFARS 219.7. The Subcontracting Plan of the successful Offeror(s) will be reviewed and approved by the PCO prior to contract award. The successful Offeror’s approved Small Business Subcontracting Plan will be incorporated into the resultant contract.

3.5 Reserved

3.6 Use of Government Furnished Property:

If the Offeror proposes/requires the use of Government Furnished Property (GFP) or Government Furnished Information (GFI), then the Offeror shall provide:

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

· Where the GFP/GFI is to be located.

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

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

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

If no GFP/GFI is required, the Offeror shall so state.

3.7 Other Costs

The Offeror shall identify additional costs that would be incurred that have not been identified in the solicitation and describe in detail the performance that would cause these costs.

3.8 Government Furnished Information

3.8.1 ODCs

The Government's estimate for ODCs for the prime and all subcontract efforts, unburdened is listed below:

The Offeror shall utilize the above Not-to Exceed Amounts provided by the government for ODCs and include all applicable burdens. If it is the Offeror’s accounting practice to apply (and invoice for) burdens with regards to ODCs, then the Offeror shall propose the ODC amount plus the addition of the applicable burdens. If the Offeror chooses not to burden ODCs, then the Offeror shall propose an H-clause to identify this special term and condition. (NO FEE SHALL BE APPLIED TO ODCs).

3.8.2 Labor Hours

The Government estimate is 505,560 hours for the entire work effort. For evaluation purposes, the Offeror shall propose the labor categories/hours as outlined below. For proposal purposes, Offeror’s shall propose employees to work 12 hours per day, 7 days per week; however, actual hours will vary at the Task Order level. For each position, 120 hours of CONUS work will be required of each employee prior to beginning OCONUS efforts. For proposal purposes, if the Offeror chooses to propose Danger Pay, the Offeror shall base Danger Pay on a location in Afghanistan, which is 35% of the direct labor rate. Offeror’s shall provide an H-clause detailing how Danger Pay is applied to each labor category, if any, including whether it is applied to the base labor category and/or Overtime hours. Offeror’s shall also provide an H-clause detailing how Overtime is applied to each labor category, including any Overtime premium. For both OCONUS and CONUS positions, the SCA code is included only for informational purposes for the job descrition. Offeror’s shall separate proposed CONUS and OCONUS hours and/or rates in Attachment P6.

Estimated Annual Labor Hours

Total Hour(s)

505,560

3.8.3 Incumbent Information

The incumbent contractor is: BAE SYSTEMS 23481 Cottonwood Parkway California, MD 20619 The incumbent subcontractors are:

AVI Systems, Inc., BOSH Global Services, DRS Technologies, Inc., Global Services Corp, M.C. Dean, Inc., Sierra Management & Technologies, Inc.

The following have been deleted:

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