Question_&_Answer_7.11.17.docx

1) Question: I believe there is an issue with the Excel pricing model that is part of the proposal. My understanding is the intent of the model is to see how the price would increase over time (e.g. 3-5% increase per annum) and how the price should decrease with a greater volume purchased (e.g. 5% lower variable cost for 25 units rather than 5 units in a given year). However, the model is essentially taking a sum of each line item per year, as if you are purchasing 61 units (1 + 10 + 20 + 30) every year, for a total of 305 units over a five year period. The corresponding effect would be to blow the price way above the contract ceiling. I believe what you actually want is for this sheet to serve as a base table of pricing data and allows you to adjust parameters ("If we buy 5 units in year 1, 10 units in year 2, 12 units in year 3...") to then project what your actual costs would be.

Response: There is no error in the spreadsheet as it pertains to the question. The maximum quantity estimated by the Government under clause 5252.216-9506 in the solicitation will remain unchanged upon contract award, regardless of what the winning offeror proposes as far as total price. The basis for how the estimated maximum quantity and the total price proposed are derived is distinctly different and not directly related.

However, please note per section L, "The proposed unit prices in the xxxx PRICE MMDDYY.xlsx Price shall be the offerors intended Firm-Fixed-Price contract ceiling unit prices for each CLIN and range quantity." In conjunction with the aforementioned reference, please realize this is an Indefinite Delivery Indefinite Quantity contract; therefore the Government is unsure how much of any given product and when they will need to procure said products other than an estimate over five years. The Government is only obligated to procure the minimum guarantee.

Also per Section M the Government needs to determine fair and reasonableness of prices and check for unbalanced pricing among all line items, see section M for further specifics.

2) Question: Will the Government provide the software or is the vendor responsible for the software?

Response: The vendor is providing the software.