PACTS_II__Draft_RFP_Questions_and_Answers_-_FOR_FBO_POSTING_April_30_2014.pdf

U.S. Department of Homeland Security Washington, DC 20528

April 30, 2014

Interested Vendors:

Re: PACTS II Draft Request for Proposal (RFP) Questions & Answers

The Department of Homeland Security (DHS) Office of Procurement Operations (OPO), Enterprise Acquisitions Division (EAD) issued the Program Management, Administrative, Operations, and Technical Support Services (PACTS II) draft Request for Proposal (RFP) with the hope of receiving questions and comments which would enable DHS to issue a more refined solicitation. DHS also requested questions and comments to the draft RFP at the PACTS II Industry Day sessions held Thursday, April 10, 2014 and Friday, April 11, 2014. The questions, comments, and Government responses provided during the two-day event were combined with those received through the April 17, 2014 deadline for industry comments on the draft RFP.

Attached to this letter are the consolidated listing of all relevant questions and comments along with the respective Government responses. In many cases, several questions addressing the same issue have been combined. Because many of the questions and answers may change, DHS is not bound to the answers to any questions it provides to any potential Offerors. It is the sole responsibility of potential Offerors to read and adhere to the provisions and instructions of the final RFP.

Please continue to monitor www.fbo.gov (FedBizOpps) for any updates to or additional information on the PACTS II program.

Please continue to forward any correspondence regarding PACTS II to include questions to PACTSII@hq.dhs.gov .

We appreciate the SDVOSB community and their interest in the PACTS II program.

Sincerely, LaShonda Keith Contracting Officer Office of Procurement Operations mailto:PACTSII@hq.dhs.gov

April 30, 2014 1 of 31

Question # Page No. Section Paragraph Question Government Response

1 Industry Day B.1 "Will the government consider set aside for other SB categories along with SDVOSB" No. PACTS II is a 100% SDVOSB set-aside.

2 2 B.1 B.1 Section B.1 on page 2 states that "Operations (OS) (i.e. clerical)" work is included in Functional Category 1.

However, all other references to OS services in the RFP state that it is part of Functional Category 2. Please confirm that OS is included in FC 2.

Yes, Operations (OS) is included in Functional Category 2. The Government will revise Section B.1 of the RFP for clarity.

3 2/116 B.3.1 (a)

Request DHS include both straight time and overtime rates for Service Contract Act (SCA) covered labor categories in contract ceiling rate schedules. There was significant confusion on the part of Contracting Officers issuing task orders during PACTS as to whether the contract ceiling rates included overtime premium charges. Vendors should be requested/allowed to provide ceiling rates for both straight time and overtime.

While it might seem all vendors would simply use 1.5X the straight time ceiling rate, not all vendors use that calculation when computing fully burdened overtime rates so requesting two separate rates provides the government with a clearer picture of anticipated actual cost for SCA covered services. Also a separate rate approach prevents the inclusion of this cost in the straight time ceiling rates (vendors would be forced to this approach to reduce their risk if only a single rate is provided) which would inflate the cost of all hours when the premium should only be paid on incurred approved overtime hours.

No. The section states, "If overtime is required for Wage Determination applicable labor categories at the TO level, overtime will be compensated in accordance with the Service Contract Act." The section will be revisited to consider providing additional clarity, but both straight time and overtime rates for Service Contract Act (SCA) covered labor categories will not be included.

4 2 B.3.1 Will the contract have a provision that addresses the addition of a labor category, which is required to support a TO requirement, that does not appear on the Government Labor Category Table and/or its Ceiling Labor Category Rate Table?

Yes, this is considered the Ancillary Labor located in B.3.1 (d). This ancillary labor shall not exceed more than 10% of the total price of the TO for each applicable TO period.

5 4 B.3.1 (d) {Ref § iv.}The Government references "Ancillary Labor." Please provide examples of Ancillary Labor. Ancillary labor is an other direct cost to capture incidental services for which there is not a labor category specified in the contract. See the definition located in Section B.3.1(d) of the RFP.

6 3 B.3.1 (a) Are any positions subject to SCA? Potentially. See SCA clauses in section I.2. The application of SCA requirements would be determined at the task order level.

7 4 B.3.2 "What is Type Tos" Fixed-Price (FP) Type contracts (Task Orders under the IDIQ) are defined in their various types under FAR 16.2.

8 General C.1 Any restrictions on equipment sales, through this vehicle. This is a service contract with minimal Other Direct Costs.

9 6 of 116 C.1 What other types of vehicles and contracts that will be used to support TO requirements and how would that impact TO distribution?

No other "types of vehicles and contracts" will be used to support TO requirements other than the PACTS II Task Orders under which the requirement is awarded.

10 General C.1 Why did DHS decide not to separate technical and engineering services into a separate functional category? An analysis of the historical usage of PACTS indicated this was the most appropriate approach.

11 Industry Day C.1.1 There is scope for Management & IT on multiple DHS multiple award contracts. What level of $ work does DHS expect to award to FC1 for management also IT related?"

PACTS II is for non-information technology (IT) support services. The $1.5B ceiling is for all orders issued under both Functional Categories.

12 6 C.1.1

We urge DHS to consolidate the Functional Category (FC) approach for PACTS II. This approach would be beneficial to both government and industry for several reasons. (1) Because of the similarity in services, many task orders will encompass work applicable to both FCs; (2) The encouragement of teaming allows SDVOSBs to put together credible teams to cover all services areas, (3) As SDVOSBs mature under PACTS II, their capabilities will expand increasing the likelihood they'd bid on broader task orders; (4) Removing the FC approach will maximize competition and benefit DHS to ensure they procure the most qualified services at a fair price; and (5) DHS will greatly reduce the number of proposals (and pages) for evaluation since many vendors are expected to submit proposals for both FCs. Will DHS consider this approach for the final RFP?

No. PACTS II will be solicited under two separate Functional Categories.

13 Industry Day C.1.2 "Do you expect the volume & scope of tasks orders on PACS II to be similar in volume, scope + [value] as

PACS I"

PACTS II has a broader scope than the first generation PACTS program, as it includes additional types of services. The ceiling value of PACTS II program is the same as that of the first generation PACTS.

PACTS II

Draft RFP HSHQDC-14-R-00009

Questions and Answers

April 30, 2014 2 of 31

PACTS II

Draft RFP HSHQDC-14-R-00009

Questions and Answers

14 6 C.1.2

Functional Category 2 (Administrative and Operations Services) is currently being solicited under NAICS 561110 with size standard $7 million. It is of our understanding that any capable SDVOSB, holding the prerequisites necessary to be competitive on this solicitation (capabilities, past performance, technical understanding), will not qualify under this size standard. Has the Government considered changing the NAICS code for FC 2 to one with a $14 million threshold? The current NAICS 561110: Office Administrative Services is the ONLY Administrative Support NAICS code with the $7 million threshold. Further, of the three

(3) paragraphs that describe the general scope of work under FC2, only one (1) of them applies to NAICS 561110:

First paragraph, C.2.2 - Administrative and Operations Services. The Contractor shall provide day-to-day office administrative support services, such as financial planning; billing and recordkeeping; and personnel.

NAICS 561110 applies, as per it's SBA description:

This industry comprises establishments primarily engaged in providing a range of day-to-day office administrative services, such as financial planning; billing and recordkeeping; personnel Second Paragraph, C.2.2 - Additionally, the contractor shall provide a range of business operations support services to include letter drafting; document editing or proofreading; typing, word processing or desktop publishing; and other secretarial services, answering telephone calls and relaying messages to clients, postal and mailing services and one or more other office support services, such as facsimile services, and word processing services.

NACIS 561110 does NOT apply as these services are not found in its SBA description. The following NAICS codes (with $14 million thresholds) do apply, as per their SBA descriptions:

561410: Document Preparation Services - This industry comprises establishments primarily engaged in one or more of the following: (1) letter or resume writing; (2) document editing or proofreading; (3) typing, word processing, or desktop publishing 561421: Telephone Answering Services - This U.S. industry comprises establishments primarily engaged in answering telephone calls and relaying messages to clients.

Third Paragraph, C.2.2 - Court Reporting and Stenotype Services. The Contractor shall also provide verbatim reporting and stenotype recording of live legal proceedings and transcribing subsequent recorded materials and any other business support services for example address bar coding services, bar code imprinting services, and mail presorting services.

NACIS 561110 does NOT apply as these services are not found in its SBA description. The following NAICS code (with $14 million thresholds) does apply, as per its SBA descriptions:

The NAICS will remain as presented in the draft RFP. Per FAR 19.102(d) of the Size standards. "When acquiring a product or service that could be classified in two or more industries with different size standards, contracting officers shall apply the size standard for the industry accounting for the greatest percentage of the contract price." The DHS has elected to designated the dominant NAICS for each FC in accordance with this guidance.

15 6 C.1.2

Please clarify the following sentence: "While the SOW identifies two (2) Functional Categories, the suites of resulting contracts are intended to satisfy a full range of related requirements but will not preclude the use of other vehicles and contracts to meet specific needs." What "other vehicles and contracts" is the government referring to?

PACTS II will be “mandatory for use with limited exceptions”, in accordance with Management Directive 060-01, to ordering activities to fulfill DHS requirements for program management, administrative, operations, and technical support services. If the TO CO determines another vehicle is more suitable to meet a requirement, he/she has an opportunity to submit a request for a waiver to not solicit under PACTS II. Specific requirements/needs will be further identified and defined at the TO level. It will be up to the TO CO to determine if the mission needs fit what is offered in the Functional Categories of PACTS II.

16 6/116 C.1.3

Please clarify if the "commercially available tools" referred to in this section are tools to be provided by the PACTS II Program Office (DHS) or are tools DHS anticipates prime awardees to provide. If the latter, please clarify the types of tools DHS anticipates vendors will provide (for example, SharePoint? web portals?) and specific data DHS desires access to.

The use of commercially available automated tools on processes and metrics that support TO management are encouraged to achieve the objectives. The tools will be provided by the Contractor.

17 Industry Day C.2 "With Scoss Being Removed from PACTS, what is anticipated to be the predominant service line and office/Agency w/in DHS to use PACTSII?"

There is no anticipated predominant DHS component for use of PACTS II.

April 30, 2014 3 of 31

PACTS II

Draft RFP HSHQDC-14-R-00009

Questions and Answers

18 7 C.2

In c.2.1 Functional Category 1 (FC1) - Program Management and Technical - NAICS code 541611: Program Management Services (Administrative Management and General Management Consulting Services and Process, Physical Distribution, and Logistics Consulting Services), you couple your description of DHS support services needs with the words "consulting" and "consultants." 1.) Are the Contractor-provided services for this FC1 section: a) pure consulting services, which will report directly to and will have full management by Government executives / supervisors, or b) are these services, for which the Contractor will have the responsibilities to mange the program(s) that fall under these FC1 sections, to manage their specified tasks / requirements, and to mange the Contractor's assigned personnel? and 2.) Please expand on the description given in Attachment J-9 Labor Category Overview table for the Contractor's Contract-level Program Manager and the Contractor's Task Order Project Manger roles. For example, are these roles expected to locate onsite / offsite and how do they fit within the your answer to question 1.) above?

The contract requirements will not include inherently governmental or personal services. The contractor will be providing support to government personnel in meeting DHS mission objectives. The Government's labor category descriptions for the Contract-level Program Manager and the Task Order Project Manger remain unchanged. The specific requirements at the TO level will dictate the onsite/offsite needs contractor personnel.

19 Industry Day C.2.1 "Does environmental remediation include actual asbestos removal and tasks like removal of contaminated dirt, e.g. large construction efforts?"

Construction services are applicable to FAR PART 36 requirements and will not be procured under PACTS II.

20 Industry Day C.2.1

"Section C of Draft RFP, section C.2.1 : Environmental, Technical & Other Scientific Consulting Services" --" Under the description for "Technical Services", there is a very broad description of "Environmental" services required under the SOW. Will the government more definitively specify required environmental services? For example, the SOW refers to "environmental law", which can include required expertise / experience in a vast array of laws to include CERCLA, RCRA, SARA, NEPA, EPCRA, TSCA, and more. In order for bidders to properly propose, more clearly defined requirements would be beneficial to bidders and the government alike.

The scope of work on the PACTSII IDIQ level is intentionally broad in nature. Definitive/specific requirements within the scope of PACTS II will be identified and defined at the TO level.

21 Industry Day C.2.1 "Please provide examples of the scope of work and labor categories used for environmental engineering and support related tasks of past and current contracts you expect to use on PACTSII"

Specific requirements will be identified and defined at the TO level.

22 7-8 C.2.1

One of the requirements under "Environmental, Technical & Other Scientific Consulting Services" is sanitation or site remediation consulting services. This is a very specialized area of expertise and does not appear to correlate to the overarching PACTS requirements. To the best of our knowledge, there were no task orders under PACTS I related to this. Would the government please consider removing this requirement since it more closely aligns to other DHS vehicles. If not, how important is it that our team shows relevant experience to this requirement in the "Experience" volume?

PACTS II has a broader scope than the first generation PACTS program. The services will not be removed. The Contractor shall furnish the full range of solutions and services necessary to meet the scope of the requirement of this contract and individual TOs issued under it. The Offeror shall describe its Experience and detail its specific experience conducting work of the same and/or similar nature to that described (for the applicable FC) in RFP Section C, Statement of Work. Refer to RFP section M.4.1 Factor 1: Experience. This evaluation will focus on the breadth and complexity of the efforts, and the degree of relevance to the proposed Functional Category.

23 7 C.2.1 "Services under this functional category may also include ? When will potential supplier know if these are required"

Specific requirements will be identified and defined at the TO level.

24 7 C.2.1 What % of task orders are expected to fall in each of two main Functional Areas of Program Management Services and Technical Services?

The data is not available to provide an estimate of the % of task orders expected to fall in each of the two main Functional Areas of Program Management Services and Technical Services.

25 7 C.2.1 1st and 2nd Includes "process, physical distribution and logistics" in paragraph 1 under Administrative Management and General Management Consulting Services, and as the heading for paragraph 2. Are you looking for the same services under both requirements or is this an error in paragraph 1?

The section will be revisited for possible clarity. The services are under FC1 Program Management Services.

26 7 and 8 C.2.1 4th

States "…the control of environmental contamination from pollutants, toxic substances, and hazardous materials, identify problems (e.g., inspect buildings for hazardous material), measure and evaluate risks, and recommend solutions. Provide expertise support in areas, such as air and water quality, asbestos contamination, remediation, and environmental law. Also provide sanitation or site remediation consulting services." Is this requirement for studies and analysis and general office type work or is the requirement for construction/destruction work involving heavy equipment for removal of decontaminated earth, asbestos from buildings, etc.?

Construction services are applicable to FAR PART 36 requirements and will not be procured under PACTS II. The requirement covers management and consultant type services. Specific requirements will be identified and defined at the TO level.

27 7 C.2.1 1 Although the Functional Category only has one NAICS code, the services described are associated with different NAICS codes. When the government intents to issue TO for these specific services, would they be issued under the associate NAICS?

The stated NAICS (either 541611 or 561110) for the applicable FC will be associated to the TO, and no other NAICS will be identified. Each TO will identify the Functional Category of the work to be performed.

28 9 E.3

Will the Government, in its use of automated tools and/or testing of deliverables, such as documentation review and validation, provide key words/phrases/components that the software will search out? Search tools, while efficient, can at times fail to pick up alternate phrases/words that convey the required answer/deliverable.

The nuances of any automated tools used for testing of the deliverables will be as specified at the TO level by the TO Contracting Officer Representive (COR) or by the TO Contracting Officer Representive (COR)

29 10 E.3 2 Suggest reducing government acceptance and comment period to ten (10) business days. Unless otherwise agreed to by the parties (unless otherwise negotiated), the Government will provide written acceptance within thirty (30) business days from receipt of the deliverable.

April 30, 2014 4 of 31

PACTS II

Draft RFP HSHQDC-14-R-00009

Questions and Answers

30 Industry Day F.7

"If a prime recertifies as other than small midway through the contract, will they be off ramped?" Ref. FAR 52.219-28 Post-Award Small Business Program Rerepresentation. Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification) as a result of a novation, or a merger or acquisition that does not require a novation. The Contractor will no longer be eligible for task order awards once the CO is notified of the change in status. Future option periods will not be exercised. Natural growth of the Prime as a result of increased sales would not impact the contractor's ability to compete for task orders under PACTS II. The RFP will be revised.

31 Industry Day F.7 "When will recertification be required? Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification ) as a result of a novation, or a merger or acquisition that does not require a novation.

32 Industry Day F.7 If a Prime exceed a NAICS ceiling during an option year is it still eligible to serve as a prime on future option years?

Natural growth of the Prime as a result of increased sales would not impact the contractor's ability to compete for task orders under PACTS II. The RFP will be revised.

33 Industry Day F.7 "At the end of base period, is recertification of NAICS size what is required? " Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification) as a result of a novation, or a merger or acquisition that does not require a novation.

34 16 of 116 F.7 F.7 NOTE Please clarify in writing what happens if an awardee's size status changes due to organic growth based on PACTS II TO wins - and modify the NOTE in par F.7 accordingly.

Natural growth of the Prime as a result of increased sales (organic growth) would not impact the contractor's ability to compete for task orders under PACTS II. Natural growth of a SDVOSB will not require re-representation (recertification). The RFP will be revised .

35 16 of 116 F.7 F.7 NOTE

Please clarify the size status re-certification process and periods for awardees. Will SAM annual Reps/Certs fulfill the process?

Ref. FAR 52.219-28 Post-Award Small Business Program Rerepresentation. Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification) as a result of a novation, or a merger or acquisition that does not require a novation. The Contractor will no longer be eligible for task order awards once the CO is notified of the change in status. Future option periods will not be exercised. Natural growth of the Prime as a result of increased sales would not impact the contractor's ability to compete for task orders under PACTS II. The RFP will be revised.

36 16 F.7 F.7 NOTE

The solicitation states that "If an awardee's size status changes from a SDVOSB as a result of merger, acquisition, or size status recertification at the time of contract option period the contract option will not be exercised." However, at Industry Day vendors were told that it is the intent of DHS that the size status recertification could trigger the off-ramp provision only if the change in size status was due to mergers or acquisitions versus "organic" growth (i.e. due to the award of task orders under PACTS II or other contract vehicles held by the prime) during the term or period of performance for the PACTS II contract. Please clarify in the written solicitation whether primes must re-certify at the end of the base period and each subsequent option period and are subject to off ramping if they are no longer small under the applicable NAICS ONLY as the result of acquisition activities (purchase of a company by the prime awardee resulting in growth above the NAICS threshold or purchase of the prime awardee by another company resulting in a three year avg above the NAICS threshold)

Ref. FAR 52.219-28 Post-Award Small Business Program Rerepresentation. Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification) as a result of a novation, or a merger or acquisition that does not require a novation. The Contractor will no longer be eligible for task order awards once the CO is notified of the change in status. Future option periods will not be exercised. Natural growth of the Prime as a result of increased sales would not impact the contractor's ability to compete for task orders under PACTS II. The RFP will be revised.

37 16 F.7 F.7 NOTE

"If an awardee’s size status changes from a SDVOSB as a result of merger, acquisition, or size status recertification at the time of contract option period the contract option will not be exercised." Please clarify, should an SDVOSB size status change during the 5 year period, will the SDVOSB be removed from the PACTS II vehicle? At what frequency will PACTS II awardees be required to recertify - annually?

Ref. FAR 52.219-28 Post-Award Small Business Program Rerepresentation. Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification ) as a result of a novation, or a merger or acquisition that does not require a novation. The Contractor will no longer be eligible for task order awards once the CO is notified of the change in status. Future option periods will not be exercised. Natural growth of the Prime as a result of increased sales would not impact the contractor's ability to compete for task orders under PACTS II. The RFP will be revised.

38 N/A F.7 N/A

Please clarify re-certification requirements for teaming partners/subcontractors under PACT II. Will teaming partners/subcontractors be required to re-certify at the end of the base period and each option period thereafter and have their small business status "re-set" based on that re-certification OR will teaming partners/subcontractors retain their status as certified at award throughout the PACTS II period of performance (the more common approach in federal contracting).

Guidance concerning a SDVOSB re-representation requirement for the partner within the SDVOSB JV or for the subcontractor that represented itself as a SDVOSB at time of proposal offer will be provided in the revised RFP.

April 30, 2014 5 of 31

PACTS II

Draft RFP HSHQDC-14-R-00009

Questions and Answers

39 17/78 F.7 N/A

Page entitled "Overview of PACTS II Procurement, cont’d" in Industry Day presentation slide deck. Please clarify if bidders must re-certify at the time of submittal of proposal amendments requested by the government.

This could have significant impact on bidders who are close to the NAICS threshold and submit a bid prior to a fiscal year end for the company who are then required to amend their proposals and re-submit after a protracted period of proposal evaluation. For example, it is not unreasonable to believe evaluation will continue past 12/31/14 (12/31 is a common fiscal year end for private industry) and if amended proposals are requested in Feb 2015, otherwise qualified vendors could no longer be qualified if forced to re-certify. PACTS II is a costly and time consuming undertaking for industry, eliminating vendors qualified at original proposal submittal because of the governments evaluation process seems both unfair and ill-advised in terms of the government getting a highly qualified pool of vendors. Please reconsider the requirement to re-certify with amended proposals.

Notice to the government of the change in status to other than an SDVOSB is required within 30 days of the Contractor's re-representation (recertification ) that is a result of a novation, or a merger or acquisition that does not require a novation. Natural growth of the Prime as a result of increased sales would not impact the contractor's ability to compete for task orders under PACTS II. The RFP will be revised .

40 6 F.9 C.1.2 Scope

“The services provided under PACTS II will support DHS on a nation-wide basis. The Contractor shall furnish the necessary labor personnel and materials (equipment, facilities, travel, and ancillary labor) required to satisfy the TO requirements.” Will the locations associated with the scope of nation-wide basis (impacting pricing, retention, and recruiting) be identified in the Final DHS PACTS II RFP or when Task Orders Requests are issued?

Specific requirement, needs, locations will be identified and defined at the TO level.

41 17 F.10 Are subcontractors required to create the required web pages? The Government's Industry Partner is the Contractor (Prime) to which the contract was directly awarded. Please refer to Section H.6 of the solicitation.

42 18/116 F.10

Section F.10 says the first Prime Contractor Performance Requirements/Subcontracting Report is due "No later than thirty (30) calendar days after the first 12 months of contract award." while F.13 says "The submission is due to the PACTS II Program Manager, and shall be submitted via e-mail no later than thirty (30) calendar days after the end of each six (6) month period. The start of the first six (6) month period is the date of contract award." The latter implies the first report is due within 30 days of the end of the first six months of contract performance while the former clearly states the first report isn't due until 30 days after the first year. Please clarify the due date of the first report.

The Government will revise Section F.10 of the RFP for clarity.

43 Industry Day F.13

"Does at least 50% of the labor have to be prime or can this be fulfilled by an SDVOSB sub?" In accordance with to FAR 52.219-27(d)(1), a service-disabled veteran-owned small business concern agrees that in the performance of the contract, in the case of a contract for services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other service-disabled veteran-owned small business concerns. Therefore, the SDVOSB Prime's and all other SDVOSB subcontractor personnel for contract performance contribute to meet the 50% requirement.

44 Industry Day F.13 Can a combination of SDVs meet the 50% Requirement? The SDVOSB Prime's and all other SDVOSB subcontractor personnel for contract performance contribute to meet the 50% requirement.

45 Industry Day F.13

"Is the 50% SDVOSB of personnel cost requirement based on Task order by Task order or over the life of the contract?"

The requirement of at least 50 % of the cost of personnel for contract performance performed by an SDVOSB concern requires reporting each task order, for each reporting period identified in RFP section F.13 - PACTS II primes will have to meet the requirement for each reporting period. The performance will be reported to and monitored by the PACTS II Program Manger with the submission of the Attachment J-2 PACTS II Subcontracting Report.

46 Industry Day F.13

"SDVOSB's need to provide 51% of personnel under set-aside - currently What does the proposed regs suggesting SDVOSBs will need to provide 51% of total Costs?"

At least 50 percent of the cost of personnel for contract performance will be spent for employees of the SDVOSB Prime or employees of other SDVOSB concerns on the Offeror's team. The question is referencing limitations on subcontracting found at http://www.gpo.gov/fdsys/pkg/FR-2013-10-02/pdf/2013-22064.pdf (on pages 61115/61116 ). The requirements of this RFP are in agreement with the current regulations.

47 Industry Day F.13 "Does the prime have to do 51% of the work or can the 51% requirement be spread among subcontractors that are also SDVO"

The SDVOSB Primes and all other SDVOSB subcontractor personnel for contract performance contribute to meet the 50% requirement.

48 Industry Day F.13 "If large businesses can join the team, can they respond to all/any tasks w/prime (SDVOSB)? There is no prohibition to large companies being subcontractors under PACTS II. The RFP specifies at least 50 percent of the cost of personnel for contract performance will be spent for employees of the SDVOSB concern or employees of other SDVOSBs.

49 18 F.13 1 F.13. refers to “cost” in determining the at least 50% going to personnel costs of an SDVOSB. Please confirm if this personnel "cost" is direct labor only or fully burdened labor.

The 50% of personnel cost that must be performed by a SDVOSB is the fully-burdened labor.

April 30, 2014 6 of 31

PACTS II

Draft RFP HSHQDC-14-R-00009

Questions and Answers

50 N/A F.13 N/A

Request the government consider revising the policy stated at Industry Day sessions to allow teaming revisions post award (see page 57/78 of posted Industry Day slide deck). One of the keys to SDVOSB company (both prime and sub) and DHS success (defined as significant work executed by SDVOSB firms) on the PACTS vehicle was the requirement to use only originally proposed team companies. Please remember the calls the PACTS Program Office fielded from large firms whose work was moved to PACTS demanding the "right" to be added to the teams to allow them to retain "their" work. If that had been allowed, the amount of work executed by SDVOSB primes and subs on PACTS would have been far less. The PACTS contract approach, no post award teaming additions, protected SDVOSB primes and their team companies from pressure from large companies to add them and let them do the work. The benefit of that approach to keeping to the letter and intent of PACTS and PACTS II (recognizing and using the capability available in the SDVOSB community) can not be understated.

The RFP specifies at least 50 percent of the cost of personnel for contract performance will be spent for employees of the SDVOSB concern or employees of other SDVOSBs. Large company subcontractors will not count towards the at least 50% requirement.

51 Industry Day G.2.3

"Will contract PM be allowed to also be bid on individual TO's as TO PM?" No. Contract and TO management is a mandatory element for all TOs issued under the PACTS II contract. The Contractor’s Program Manager is responsible for overall contract performance and shall not serve in any other capacity under this contract. This position shall not be separately billed to this contract or under individual TOs.

52 20 G.2.3 Is the Contractor's Program Manager expected to work onsite, offsite or split between the two? What is the percent of time spent onsite, offsite or split between the two?

The Contractor's Program Manager is not required to be onsite. However, there may be times that the Contractor's Program Manger would be required to attend any meetings onsite. There is no percentage of onsite or offsite time.

53 20 G.2.3 In the statement "The Contractor’s Program Manager is responsible for overall contract performance and shall not serve in any other capacity under this contract", does this preclude the individual from performing direct-billable work on a PACTS II TO performing a role other than the Contract PM?

Correct. The Contractor’s Program Manager is responsible for overall contract performance and shall not serve in any other capacity under this contract.

54 20 & 76 G.2.3

This section states “The Contractor’s Program Manager is responsible for overall contract performance and shall not serve in any other capacity under this contract. This position shall not be separately billed to this contract or under individual TOs.”

Support of this position will have to be billed in Contractor’s overhead indirect rate. The Labor Category qualifications for this position require a very experienced professional, whose cost will be significant. As a SDVOSB with a 3-year average revenue of less than $7M, including this cost in the indirect rate may make the SDVOSB uncompetitive in pricing. Would it be more cost-effective to bill a portion of this position’s time directly to the TOs; or, have the Contract Program Manager work as a Project Manager, where practical on a TO, as many TOs do not require a fulltime Project Manager?

Further, maintaining this dedicated contract position places an undue financial hardship on a SDVOSB, if it is not the recipient of TO awards or if awards are not large enough to sustain this overhead position.

We respectfully request DHS review and reconsider/revise this contract requirement?

The Contractor’s Program Manager is responsible for overall contract performance and shall not serve in any other capacity under this contract. This position shall not be separately billed to this contract or under individual TOs.

55 Industry Day G.4 "Recommend you provide the minimum Direct Productive hours for each task order." Specific requirements will be identified and defined at the TO level.

56 Industry Day G.4 "What's task order process and timeline?" The TO Ordering Procedures can be found at Section G.4 of the solicitation. Processes and timelines will be determined at the TO level by the TO Contracting Officer.

57 Industry Day G.4 "What is the anticipated turn-around time for Task Order proposals?" The timelines for TO proposal submissions will be identified and defined at the TO level.

58 General G.4 What will be the process for releasing Task orders? Email, Web portal, etc.? The TO Ordering Procedures can be found at Section G.4 of the solicitation. Processes and timelines will be determined at the TO level by the TO Contracting Officer.

59 Industry Day G.4.1 "Will all TO's be offered for bid by all contract holders" The Task Order Contracting Officer will provide all awardees within the applicable Functional Category a “fair opportunity” to be considered for each Task Order, unless an exception applies.

60 Industry Day G.4.1

"Do winners have to bid a percentage of task orders?"

PACTS II contract holders are not required to submit a proposal on a specific percentage of solicitations.

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61 22 G.4.2 (b)

"Only One Awardee (Explain)" As Section G.4.2(b) states, all awardees within the applicable Functional Category a “fair opportunity” to be considered for each order in excess of the micro-purchase threshold, unless one of the following statutory exceptions as stated at 16.505(b)(2)(i), applies. (b) is one of the exceptions that apply. If the services are determined at the TO level to be so unique that only one PACTS II contract awardee is available to perform the services, then ONLY that awardee would be solicited to propose for the task order requirement.

62 23 G.4.3 Can a Contractor be awarded more than one Task Order project? If so, can it during the same Period of Performance?

Yes, a PACTS II contractor may have the opportunity to be awarded more than one Task Order during the same period of performance of another Task Order.

63 23 G.4.3 If a TO solicitation crosses PACTS II FC's, why wouldn't primes in both FC's be allowed to compete?

Otherwise, this presumes that the primes in the primary FC have the ability to deliver in both FCs.

Separate contracts are awarded for the two FCs. The TO CO will solicit under the FC that he/she determines has the dominant services of the requirement and is appropriate for the task order requirement.

64 Industry Day G.4.4 (f)

Past Performance Questionnaires [for Task Orders specifically] -will the Government respectfully consider CPARS past performance in lieu of individual past performance for each TORR? Our clients may find that constantly requesting individual past performance references to be bothersome/cumbersome."

The solicitation requirements for individual TOs will be established at the TO level.

65 27 H.2

The government states that the minimum guaranteed amount is $250.00. However, FAR 16.504(a)(2) states "To ensure that the contract is binding, the minimum quantity must be more than a nominal quantity, but it should not exceed the amount that the Government is fairly certain to order." For a contract vehicle that has an estimated value of $1.5 Billion, $250.00 is an extremely nominal amount. Suggest the government raise this amount to $10,000 so it is more than a nominal amount to ensure that the contract is binding. Since the minimum dollar value of a task order must exceed the Simplified Acquisition Threshold (currently $150,000), a higher guaranteed minimum seems reasonable.

The amount of $250.00 is more than a nominal amount as stated in FAR.504. This amount has been used as minimum guarantee in numerous DHS-wide vehicles, including the original PACTS.

66 30 H.11

Is there an limited timeframe in which the Contractor would need to notify the TO CO of any personnel changes/substitutions (i.e. 10, 30, 60 days etc.).

Section H.11 of the RFP will be revised for clarity. The number of days the Contractor would need to notify the TO CO of a substitution should be 15 days. "TO CO shall be notified in writing of any proposed substitution at least fifteen (15) days, or thirty (30) days if a security clearance is to be obtained, in advance of the proposed substitution".

67 40 H.14

DHS intends to electronically post the PACTS II contracts, including fully-burdened ceiling labor rates, to the DHS web site. This does not include Contractor proposals or any other proprietary information provided by Contractors relevant to TO performance or by Offerors in response to the PACTS II solicitation. This seems to be a contradiction in terms because the fully burdened labor rates are proprietary information. Can you clarify that you will be posting the ceiling contract amounts for each awarded TO rather than the labor rates?

The fully-burdened contract ceiling rates will be posted to the internal DHS website.

68 40 H.14 DHS intends to electronically post the PACTS II contracts, including fully-burdened ceiling labor rates, to the DHS web site. Please clarify if this is an internal website that no other contractor organization can access.

This is an internal DHS website which is not accessible to the general public or outside organizations.

69 31 H.15 For the purpose of the on-line proposal, will Offerors upload files or will there be a Q&A format? For example to respond to Volume IV/Section A, will we upload a 3 page document to respond or will we need to cut & paste our answer into a text box?

This has yet to be determined. Once the capability is implemented the processing procedures and information requirements will be written into the contract at the time such capability is implemented.

70 General H.16 Will DHS hold a Post Award Conference where DHS components can meet the PACTS II vendors? Please refer to Section H.16 Post Award Conference. The purpose of the post award conference is to aid both the

Contractor and the Government in achieving a clear and mutual understanding of all contract requirements and identify and resolve potential problems

71 31 H.17 H.17

"Explain" When necessary there maybe pre-proposal meetings or proposal discussions regarding understanding technical requirements. Any costs with attending a meetings (costs of travel, phone bill, conference set up) shall be an incidental service and not separately billed. The cost should be built into the company's overhead rate.

72 Industry Day H.18.2 "Is there a requirement for facility level clearance?" The base PACTS II contracts do not have a mandatory minimum requirement for facility clearances. Specific requirements will be identified and defined at the TO level.

73 32 H.18.2 H.18.2 Does having or not having a facility clearance affect an offeror's suitability for PACTS II award? The base PACTS II contracts do not have a mandatory minimum requirement for facility clearances. TOs may include security requirements based upon the nature of the planned efforts. In order to receive such work, Contractors (including Team members, if applicable) must be capable of receiving a facility clearance.

74 Industry Day H.18.3 "Will security clearances be handled only a TO Level" Yes, Security/Facility clearances will be handled at the Task Order Level.

75 Industry Day H.18.3 "At what point should Bidders submit personnel for DHS [access] clearance processing from DHS?" The TO COR would provide this notification. Specific requirements regarding clearances will be identified and defined at the TO level.

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76 32-33/116 H.18.3 H.18.3

Section H.18.2 states "The base PACTS II contracts do not have a mandatory minimum requirement for facility clearances." However, Section H.18.3 states "In addition, all personnel performing work on-site at DHS facilities must obtain at minimum a SECRET clearance based upon an appropriate background investigation."

These statements are in direct conflict. Prime awardees without a SECRET Facility Security Clearance (FCL) will not be able to provide staff with SECRET personnel security clearances. Contractors without FCLs can not hold employee security clearances. Therefore, if all personnel working on-site at DHS require SECRET clearances then all prime awardees must have a minimum of a SECRET FCL. Please clarify the Facility Security Clearance requirement under PACTS II.

The base PACTS II contracts do not have a mandatory minimum requirement for facility clearances. Section H.18.3 will be revised for clarity.

77 33 of 116 H.18.3 H.18.3

Contractor Clearance and Access, “In addition, all personnel performing work on-site at DHS facilities must obtain at a minimum a SECRET clearance based upon an appropriate background investigation.”

Question: “Does the government confirm this is an actual requirement for this contract? Contractor employees on current Task Orders under PACTS I perform on-site work with DHS EOD and Suitability only. If resultant Task Orders under PACTS II require all employees to have at a minimum a Secret clearance, there is a potential for significant increase in costs for compliance. Additionally, some labor categories and qualifications found in Attachment J-9 do not seem to require a clearance level of Secret.”

H.18.3 will be revised for clarity. This does not effect Attachment J-9. Task Orders may include security requirements based upon the nature of the planned efforts which may include a Secret clearance.

78 42 H.18.3 All personnel performing work under the IDIQ and anticipated TOs will be required to obtain DHS Suitability prior to beginning work. Please clarify if all personnel includes support staff at the contractor's home office, including contract managers and invoicing, HR, and security staff.

Contractor employees that fall under overhead, with the exception of the Contract Program Manager would not be included. The requirement is for the contract task order direct labor support.

79 General H.18.3 Will all PACTS II awardees or Program Managers be issued DHS building badges upon award? See security process at section H.18.3. This will be determined at the Task Order Level.

80 Industry Day H.20 "Can PACSII winners be off ramped based on breaching NAICS Code thresholds from winning work? No.

81 Industry Day I.2 "will FC1 or FC2 contain SCA clauses?" See SCA clauses in section I.2. The application of SCA requirements would be determined at the task order level.

82 Industry Day I.2 "will there be an applicable Wage Determination for FC1 and/or FC2?" See SCA clauses in section I.2. The application of SCA requirements would be determined at the task order level.

83 Industry Day I.2 "Will contract mandate compliance w/ the service Contract Act (SCA)?" See SCA clauses in section I.2. The application of SCA requirements would be determined at the task order level.

84 35 I.2 N/A FAR Clause 52.204-11, American Recovery and Reinvestment Act - Reporting Requirements (JUL 2010).

Suggest deleting this clause since it is not anticipated that products and/or services will be funded under the American Recovery and Reinvestment Act of 2009.

The clause will remain. Will apply at task order level as deemed applicable by the TO CO.

85 36 I.2 N/A FAR Clause 52.216-16, Incentive Price Revision - Firm Target (OCT 1997). The contract types listed do not easily lend themselves to incentives. Suggest either deleting clause or adding additional explanation as to when incentives may be used and which types.

The clause will remain. Clause will apply at task order level as deemed applicable by the TO CO.

86 36 I.2 N/A FAR Clause 52.216-17, Incentive Price Revision - Successive Targets (OCT 1997). The contract types listed do not easily lend themselves to incentives. Suggest either deleting clause or adding additional explanation as to when incentives may be used and which types.

The clause will remain. Clause will apply at task order level as deemed applicable by the TO CO.

87 37 I.2 N/A FAR Clause 52.223-2, Affirmative Procurement of Biobased Products Under Service and Construction Contracts (SEP 2013). Suggest deletion of this clause as it is not expected that procurement of Biobased products will be done under this contract.

The clause will remain. Clause will apply at task order level as deemed applicable by the TO CO.

88 39 I.2 N/A

Clause 3052.216-71, Determination of Award Fee (DEC 2003) (For Award Fee Task Orders Only - If Applicable). The contract types listed do not easily lend themselves to using Award Fees. Suggest either deletion of this clause or adding additional language in the solicitation explaining when the use of Award Fees is contemplated.

The clause will remain. Clause will apply at task order level as deemed applicable by the TO CO.

89 39 I.2 N/A

Clause 3052.216-73, Distribution of Award Fee (DEC 2003) (For Award Fee Task Orders Only - If Applicable). The contract types listed do not easily lend themselves to using Award Fees. Suggest either deletion of this clause or adding additional language in the solicitation explaining when the use of Award Fees is contemplated.

The clause will remain. Clause will apply at task order level as deemed applicable by the TO CO.

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Questions and Answers

90 36, 81 I.2 Table

Question: Will the Government require a Cost build for rates from both prime and sub-contractors?