N6449818R0027_Amendment_3.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

30-105-04EXCEPTION TO SF 30

APPROVED BY OIRM 11-84

STANDARD FORM 30 (Rev. 10-83) Prescribed by GSA

FAR (48 CFR) 53.243

See Page Tw o for RFP Question and Answ er Number 32

1. CONTRACT ID CODE PAGE OF PAGES

J 1 2

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16C. DATE SIGNED

BY 28-Jun-2018

16B. UNITED STATES OF AMERICA15C. DATE SIGNED15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip Code) X N6449818R0027

X 9B. DATED (SEE ITEM 11)

23-May-2018

10B. DATED (SEE ITEM 13)

9A. AMENDMENT OF SOLICITATION NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offer is extended, X is not extended.

Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:

(a) By completing Items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN

REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

10A. MOD. OF CONTRACT/ORDER NO.

2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO.(If applicable)

6. ISSUED BY

3. EFFECTIVE DATE

28-Jun-2018

CODE

NAVAL SURFACE WARFARE CENTER PHILA

CODE 02311, HEATHER RHOADS

215-897-1131, HEATHER.RHOADS@NAVY.MIL

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112

N64498 7. ADMINISTERED BY (If other than item 6)

4. REQUISITION/PURCHASE REQ. NO.

CODE

See Item 6

FACILITY CODECODE

EMAIL:TEL:

N6449818R0027

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

The following items are applicable to this modification:

SUMMARY OF CHANGES

The purpose of Amendment 3 is to:

1) Answer vendor RFP question number 32 as shown below under RFP Questions and Answers.

Questions 1‐31 were answered in Amendment 1 and Amendment 2.

RFP Questions and Answers 32

32. Offerors will be evaluated on the extent small businesses are identified in the performance of the contract, and the nature of the Offeror's commitment to use such firms. Per page 95 of 99 of the RFP, the baseline small business Minimum Quantitative Requirement (MQR) for small business is 40% of the total proposed contract value (not subcontracting dollars). Of the proposed 40% of the total contract value at least 25% shall be attributed to direct labor hours. Proposals that do not use the total proposed contract value as the base in any calculations contained in the SBPCD will be considered unacceptable. Note: The above small business participation goals represent the PCO's assessment of appropriate minimum participation (prime and 1st tier subs) expressed as a percentage of Total Contract Value (TCV).

Industry recognizes setting the MQR small business goal as a percentage of TCV is complex. We also understand the failure to achieve small‐business procurement goals remains a frustration and a challenge and are doing everything we can to achieve these goals. Industry looks for the ("maximum practicable opportunity") to subcontract to small businesses. The extent to which the failure to meet goals has been primarily due to the unavailability or lack of qualified small businesses. Historical performance has shown the services that are required under this contract are outside the scope of many small‐businesses. Procurement goals as benchmarks is not very helpful under these circumstances. For example, if an offeror meets the 25% of TCV labor threshold and applies all of the ODCs to small businesses, the small business utilization would not meet the required 40% of TCV. Given that ODCs utilization generally correlates to labor utilization, the above MQR require offerors to allocate roughly 40% of the labor costs to small businesses, which is much higher than the Navy wide targets.

Where NSWCPD has been able to attain or exceed its overall goals are within the 336611 NAICS code for ship building and repairing. The DoD's fiscal year 2018 subcontracting goal is 33 percent. Based on the recent NSWCPD Industry Day in 2018, NSWCPD's FY 2017 Obligations was $647M of which $197M went to SBs, primarily NAICS 336611, and equated to 30.5% therefore we see the 40% MQR on TCV as unrealistic especially for services under NAICS 541330 Engineering Services.

Request that the government reconsider and lower the MQR to 20% which is what it has been under SEAPORT‐e which has been what the predominance of the contracts NSWCPD has issued over the past 20 years.

ANSWER: These numbers were agreed upon and provided to NSWCPD by SBA, DASN and NAVSEA 02 so we are not able to change them.