Amendment_3_-_SEAM_Questions_and_Answers_Part_3.docx

NNJ16567749R - Specialized Engineering, Aeronautics, and Manufacturing Amendment 3

SEAM Questions and Answers Part III Please see the document titled Amendment 1 – SEAM Questions and Answers Part I for questions 1 – 16 and Amendment 2 - SEAM Questions and Answers Part II for questions 17 – 61 at FedBizOpps.gov

PRICE – VOLUME II

62a.Are we permitted to use our commercial published catalog rates as the fully burdened rates?

The Government does not prohibit Offerors from using commercial published catalog rates. Offerors are free to use any source(s) of data to develop their proposed fully burdened rates per NASA Standard Labor Category (SLC), as long as, the rates are realistic.

62b.If so, does the government still require information regarding direct labor costs and salary specified in TC(b) even though this information is not directly tied to our commercial published rates?

Yes, Offerors are still required to complete the TC(b) in accordance with the RFP requirements, along with TC(a). The Government uses the information in the Compensation Templates to verify the Offeror’s responsiveness to FAR 52.222-41, Service Contract Labor Standards, and their general understanding of labor relations requirements.

63. The term ‘composite labor rate’ is used multiple times throughout the RFP and we would like to request clarification on the definition of ‘composite’. The term composite could simply be a generic term for ‘team’ or ‘overall’ rates, or it could be a literal mathematical requirement to develop a composite rate. If it is the latter, several team members could possibly become uncompetitive because the resulting contract ceiling rates would be lower than their rates.

The “composite labor rate”, when referring to the Contract Fully Burdened Rates (FBRs), are the blended rates per NASA Standard Labor Category (SLC) for each proposed Task Category. These blended rates encompass the prime and all subcontractors’ direct labor, associated indirect and profit rates per year. While task orders in the future may be negotiated below the Contract FBRs, it is the Offeror’s responsibility to ensure that the price proposed for the contract (inclusive of all subcontractors and profit) are adequate to perform all the contract requirements.

RESPONSIBILITY CONSIDERATIONS –VOLUME III

64. With respect to part-time employees, does the availability of Health & Welfare services which meet the $4.27 per hour requirements satisfy the government under the rules of WD 2015-5233, where the part-time employee’s hourly wage exceeds the minimum standard by a factor equal to or greater than the minimum wage standard plus an additional $4.27, if the employee chooses not to elect those services offered and realize that value of the unelected health and welfare services in the paid wage?

Part time non-exempt service employees are entitled to a proportionate share of Health and Welfare benefits that are due to full time employees. “SCA makes no distinction between temporary, part-time, and full-time employees. In the absence of an expressed limitation on a wage determination, wage and fringe benefit requirements apply equally to all such employees.” [29 C.F.R. § 4.165(a)(2)]. However, part-time employees need only be provided with a proportionate amount of the vacation and holiday fringe benefits due full-time employees. (29 C.F.R. § 4.176.)

Contractors are required to provide each non-exempt employee with the minimum Health and Welfare benefit, regardless of whether the employee elects the fringe benefits that are offered by the contractor. Reference the 2015 Department of Labor, Prevailing Wage Resource Book, Chapter 14, “SCA Wage Determinations”: http://www.dol.gov/whd/recovery/pwrb/Tab14.pdf “ODD-NUMBERED wage determinations (e.g., 2005-2011) apply to most SCA contracts. These wage determinations require the contractor to satisfy the health and welfare fringe benefit requirements on a “fixed cost” per employee basis. Compliance must be calculated using all hours paid for (including paid time off) up to 40 hours a week, 2080 hours a year, and the contractor must meet the minimum fringe benefit requirement as specified by the wage determination for each individual employee.”

Also reference the Department of Labor, Field Operating Handbook at: (http://www.dol.gov/whd/FOH/FOH_Ch14.pdf) “(d) Some H&W and pension plans contain eligibility exclusions for certain employees. Also, employees receiving benefits through participation in plans of an employer other than the contractor or by a spouse’s employer may be prevented from receiving benefits from the contractor’s plan because of prohibitions against “double coverage.” While such exclusions do not invalidate an otherwise bona fide plan, the employees excluded from participation in the plan must be furnished equivalent bona fide FBs or be paid a cash equivalent payment during the period they are not eligible, or choose not to participate in the plan. An employee who desires to opt-out of the contractor’s health plan must demonstrate that his or her other coverage specifically prohibits double coverage in writing. [See 29 C.F.R. 4.175(c).] As a contractor, you are reminded to document the employee’s request for opting out of coverage.

65. Although plug hours were provided, wouldn't anticipated task order dollars also be required to populate Attachment J.6, Small Business Subcontracting Tables, which requests a breakdown of the Offeror's proposed goals by small business category, expressed in terms of both a percent of TOTAL CONTRACT VALUE and a percent of TOTAL PLANNED SUBCONTRACTS?

Reference paragraph 1 page L-30 of the RFP.

As indicated in RFP, Section J Attachment J.6, Small Business Subcontracting Table the Offeror’s proposed goals should be derived/expressed using the Total Contract Value, as referenced in RFP Section L.15.3 (A) $49,500,000. The Offeror’s derived goals are for planning purposes. The Task order dollars should not be used in deriving the Subcontracting Goals for Attachment J.6.