Solicitation QSDLA-K9-10-0001-N Amendment 2final.doc

Solicitation No. QSDLA-K9-10-0001-N, Amendment 2

SOLICITATION NO. QSDLA-K9-10-0001-N

AMENDMENT TWO – CHANGES

Attached is Amendment Two to Solicitation No. QSDLA-K9-10-0001-N. Changes are noted below:

1. The Trade Agreements Act does not apply to this solicitation since it is for services in support of military operations overseas. Therefore, all references to the Trade Agreements Act are removed from the solicitation.

2. Additional Pricing items have been added. The contractor is now requested to propose in addition to their proposed monthly program fee, proposed pricing for each successful proposal provided and accepted by the Government, and a transaction fee based on the number of monthly transactions under the contract. See Section B for details.

3. Performance Metrics have been added to the Statement of Work. See the section entitled “Performance Metrics” within the Statement of Work for details.

4. A typographical error has been corrected on page 6 of the Statement of Work. In the top paragraph, Exhibit 6 has been changed to Exhibit 5.

5. A typographical error has been corrected on page 10, under Daily Status Reports. The report elements have been corrected to being defined in Paragraph 4.G. The report itself has been changed to a weekly report.

6. Paragraphs (g) and (h) of Clause 52.212-1, Instructions to Offerors has been changed to reference the method of award clause of this solicitation to eliminate any ambiguity.

7. Page 32: Routine delivery time to Afghanistan has been changed from 21 to 45 days.

8. Page 4: The title “Statement of Work” is changed to Performance Work Statement.

9. The addendum to Clause 52.212-1 is changed to state that offers whose proposals are not responsive to the solicitation, fail to furnish the required information, or reject terms and conditions of the solicitation shall not be invited for an oral presentation and will be rejected.

Note: The closing date for receipt of proposals was changed to December 8, 2009 in Amendment One. This closing date remains unchanged in Amendment Two.

THIS AMENDMENT REPLACES ALL PAGES OF THE ORIGINAL SOLICITATION NO. QSDLA-K9-0001-N AND AMENDMENT ONE. OFFERS NOT SUBMITTED ON THIS AMENDMENT SHALL BE CONSIDERED NON-RESPONSIVE AND REJECTED.

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, & 30

REQUISITION NUMBER

N/A

Amendment 2 October 16, 2009

7.

FOR SOLICITATION

INFORMATION CALL(

a. NAME

Lorene Clerihew

b. TELEPHONE NUMBER (No collect calls) 817-574-2541

8. OFFER DUE DATE/

December 8, 2009 at 4:15 p.m.

9. ISSUED BY CODE

10. THIS ACQUISITION IS

11. DELIVERY FOR FOB

DESTINATION UNLESS

BLOCK IS MARKED

12. DISCOUNT TERMS

( UNRESTRICTED

Minimum: Net 30 Days

GSA, Federal Acquisition Service

Acquisition Branch (QSDLA-T6)

( SET ASIDE 100% FOR

SMALL BUSINESS

819 Taylor Street, Room 6A00

Fort Worth, TX 76102-6114

( HUBZONE SMALL BUSINESS

( 8 (A) ( 13a. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

$7.0 Million

14. METHOD OF SOLICITATION

( RFQ ( IFB ( RFP

15. DELIVER TO CODE

16. ADMINISTERED BY CODE

To be shown on each order issued under any contract resulting from this solicitation.

17a. CONTRACTOR/ CODE

FACILITY

18a. PAYMENT WILL BE MADE BY CODE

OFFEROR

NAME AND ADDRESS

CODE

See Block 15.

TELEPHONE NO.

FAX NO. DUNS

EMAIL ADDRESS:

IS CHECKED ( SEE ADDENDUM

25. ACCOUNTING AND APPROPRIATION DATA

See Block 15

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

( 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4, FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ( ARE ( ARE NOT ATTACHED.

( 27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ( ARE ( ARE NOT ATTACHED.

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN 1 COPIES

TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS SET

( FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL SHEETS SUBJECT TO

TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.

29. AWARD OF CONTRACT: REFERENCE _________ _ OFFER

DATED _____________________. YOUR OFFER ON SOLICITATION (BLOCK 5)

( INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

HEREIN, IS ACCEPTED AS TO ITEMS: See attached continuation page(s) beginning on page 2.

32a. QUANTITY IN COLUMN 21 HAS BEEN

( RECEIVED ( INSPECTED ( ACCEPTED AND CONFORMS TO THE

33. SHIP NUMBER

CORRECT FOR

CONTRACT. EXCEPT AS NOTED

PARTIAL

FINAL

42a. RECEIVED BY (Print)

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

42b. RECEIVED AT (Location)

42c. DATE REC’D (YY/MM/DD)

42d. TOTAL CONTAINERS

Do not complete Blocks 19 through 24, see schedule of supplies/items/services in the products/services attachments.

(Attach Additional Sheets as Necessary)

AUTHORIZED FOR LOCAL REPRODUCTION

SEE REVERSE FOR OMB CONTROL NUMBER AND PAPERWORKSTANDARD FORM 1449

(10-95)

(LOCAL DEVIATION)

BURDEN STATEMENT

Prescribed by GSA - FAR (48 CFR) 53.212

NOTICE TO OFFERORS:

THERE WILL BE A PRE-PROPOSAL MEETING TO DISCUSS THIS SOLICITATION ON

NOVEMBER 2, 2009 AT 1:00 PM. THE MEETING WILL BE HELD AT THE FOLLOWING LOCATION:

GSA, FEDERAL ACQUISITION SERVICE

2200 CRYSTAL DRIVE, ROOM L-1303

ARLINGTON, VA 22202

THE PRE-PROPOSAL MEETING WILL DISCUSS THE FOLLOWING TOPICS:

1. INDUSTRY INPUT REGARDING PERFORMANCE METRICS

2. INDUSTRY INPUT REGARDING THE BEST COMPENSATION/PRICING STRATEGY FOR THESE SERVICES.

3. DELIVERY STRATEGIES

4. ANY OTHER QUESTIONS OR CONCERNS INDUSTRY WOULD LIKE TO HAVE ADDRESSED

ATTENDANCE TO THIS MEETING IS NOT MANDATORY IN ORDER TO SUBMIT AN OFFER, BUT THOSE NOT IN ATTENDANCE AT THE MEETING SUBMIT A PROPOSAL AT THEIR OWN RISK.

TO RSVP FOR THE MEETING, PLEASE CONTACT ELAINA CLEMENTS AT 817-574-2661.

ALL PROPOSALS SHALL BE EMAILED TO lorene.clerihew@gsa.gov.

AMENDMENT 2 NOTE: SEE PREPROPOSAL MEETING TRANSCRIPT ATTACHED

PART I- CONTINUATION OF SF 1449

SECTION B: SCHEDULE OF SUPPLIES AND PRICE LISTS

The offeror shall provide a proposed monthly program fee to cover the tasks associated with the sourcing task. In addition, the offeror shall provide a proposed fee to be paid upon the acceptance by the Government of each sourced product or associated group of products (A product is defined as a stand alone NSN or group of related NSNs with only minor differences such as size or unit of issue). Finally, the offeror is requested to propose a transaction fee to cover the costs of managing orders for product issued. The cost for any product purchased under the order management task shall be invoiced at the actual cost, with no additional mark-ups for fees.

MONTHLY PROGRAM FEE PROPOSAL

Proposed Fee for Base year of the Contract:

$__________/Month Proposed Fee for Option Year 1:

Proposed Fee for Option Year 2:

Proposed Fee for Option Year 3:

Proposed Fee for Option Year 4:

ACCEPTANCE AND TRANSACTION FEE PROPOSAL

Proposed Source Acceptance Fee $ __________ Per Accepted Source

Proposed Transaction Fee $__________/Order 0-10 Orders Per Month

$__________/Order 11-50 Orders Per Month

$ __________/Order 51-99 Orders Per Month

$__________/Order 100+ Orders Per Month

SECTION C: PERFORMANCE WORK STATEMENT

PERFORMANCE WORK STATEMENT

SOUTH CAUCASUS AND CENTRAL AND SOUTH ASIA (SC/CASA) SOURCING FOR US FORCES AFGHANISTAN

1. BACKGROUND

The General Services Administration (GSA) is the supplier of choice to both Federal civilian and military consumers of office supplies, tools and hardware, house wares, cleaning products, and computer products. GSA presently purchases these items in the United States for export to military units deployed to Afghanistan. In cooperation with the Department of Defense (DoD), GSA’s goal is economic and expeditious sourcing of these items closer to the actual consumption by the end customer. GSA is looking for a contractor with expertise in sourcing and logistics management to supply the common consumable items for shipment to the U.S. Government activities in Afghanistan.

Key contractor responsibilities under this performance based acquisition include:

· Identifying and proposing potential sources capable of timely and expeditiously providing common consumable products addressed in Exhibit 1 and Exhibit 5.

· Negotiating Price with the supplier/source

· Managing the supplier/source relationships, including order processing

· Ensuring timely delivery of quality product

GSA expects to achieve time and cost savings to customer agencies by reliance upon a shorter supply chain

2. DEFINITIONS:

Area Support Countries/Central Asian Countries are defined as: Afghanistan, Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, Armenia, and Pakistan. These countries shall be referred to as “Area Support Countries” for purposes of this request for proposal.

Contractor Sourcing Proposal. Exhibit 1 lists the consumable items GSA currently provides to Afghanistan. The Contractor Sourcing Proposal includes all the data outlined in Section 4, on the proposed supplier/source, the salient characteristics of the item, the pricing, the delivery plan etc.

Day/Daily – Calendar days.

Maximum Supply Potential: Maximum quantity for immediate fill with phased delivery for the balance of the order

Re-source – Finding an alternate supplier for the end item.

Source (noun) – Supplier. The company in the Area Support Country manufacturing, assembling, storing, or distributing the end item.

Source (verb) - Matching the current GSA item to an available commercial item from the Area Support Countries.

Sourced Item: Items manufactured or assembled in the Area Support Countries are preferred. Items manufactured or assembled elsewhere and stored/distributed within the Area Support Countries may be acceptable, at the discretion of the Contracting Officer.

3. CONCEPT GOALS

GSA’s goal is to obtain a contractor with the necessary expertise to locate, obtain, and manage supplier/source relationships within the Area Support Countries. These relationships will be utilized by the contractor to timely deliver quality products to GSA customers within Afghanistan. DOD customers within Afghanistan will have faster and more reliable supply lines as a result of this contract.

Exhibit 1 depicts product demand for Afghanistan for a recent 9-month period for orders of varying quantities. GSA anticipates that this contract may achieve products sales at a level of millions of dollars annually.

4. REQUIREMENTS

4.A. Period of Performance: One year from the date of initial award, with 4 additional option years. See Options Clause of the contract for additional information.

The contractor shall perform the following tasks under this contract:

4.B. Product Identification. The contractor shall research and identify products available within the Area Support Countries that match or are suitable substitutes for supplies GSA currently furnishes to Afghanistan, as shown on Exhibit 1. The contractor shall provide Recommended Suppliers/Sources to GSA for products on a regular basis

Beginning within 30 days of award, the contractor shall use the Product Listing Contained in Exhibit 1 to provide progress reports on sourced items. The objective will be to match as many of the items on Exhibit 1 to a locally available item as possible. In addition, GSA intends the contractor to source other common use commodity items in classes managed by GSA (Exhibit 5). The complete data on the item helps make up the “Contractor Sourcing Proposal.”

In identifying products the contractor shall:

Define the salient characteristics of the generally available commercial item that the source will supply. This will include an appropriate purchase description, standards/specifications associated with the product (European Standards or other International Standards, as appropriate), and applicable quality standards

As part of its work to source items, the contractor must be able to document that the supplier/source is positioned for success. The documentation on the supplier/source must be furnished to the Contracting Officer upon request. Positioned for success means:

· Is capable of shipping/delivering a substantial portion of the anticipated monthly volume at a reasonable price

· Meets an acceptable quality standard

· Is financially capable of performing

· Does not pose unreasonable risk

4.C . Sourcing Proposal Preparation. Prepare and submit an item sourcing proposal to the GSA Contracting Officer.

For each proposed sourced item the contractor sourcing proposal will include the following information:

1. Item Name

2. Item description

3. Source Name

4. Source Location

5. Location of Manufacturer

6. Business Data on Source (to be identified)

7. Source Monthly Capacity

8. Quality Standard

9. Sample Items (as requested

10. Explanation of how the items will be delivered to the specified location within Afghanistan. (In some cases, the Government may be willing to arrange for delivery.)

11. Minimum Order and Quantity

12. Maximum Supply Potential

13. Pricing Proposal for item. Product Pricing shall be provided as FOB Origin with transportation evaluated separately for the available options (i.e., delivery to Afghanistan, consolidation point, or FOB Origin, at the option of the Government). Capability to deliver to Afghanistan destinations is desirable, but may not be the most efficient option in all cases.

14. Price Analysis or Justification showing why the contractor believes the price is reasonable.

When requested by the Contracting Officer, also provide documentation showing the supplier/source is positioned for success.

In demonstrating that the supplier/source price for the item is reasonable, the contractor shall provide current pricing information, expected available competition, and price analysis/demonstration of price reasonableness. Competitive quotations shall be provided whenever possible and a lack of competition shall be documented. The contractor shall retain documentation of quotes obtained or unsuccessful efforts to obtain competitive quotes. GSA approval of product pricing includes an assessment of reasonableness of price. The Contractor shall propose how pricing information presented to GSA will support this determination. Example: evidence of market prices; or “most-favored” pricing; or in some cases examples of competitive quotes may be sufficient evidence of price reasonableness. Evidence that the price is competitive with GSA CONUS prices (plus delivery charges) may be an acceptable alternative.

4.D. Contracting Officer Approval. The GSA Contracting Officer shall approve or disapprove the Contractor Sourcing Proposal for an item listed in Exhibit 1 or for another common consumable item in a class managed by GSA (as listed in Exhibit 5). The Contracting Officer may require a sample of the item to be delivered to the Contracting Officer, to the Federal Acquisition Service Headquarters in Arlington, VA, or the a DOD activity in Afghanistan. This shall be provided at no additional cost. The purpose of the sample is to determine overall quality and acceptability. Any future substitution or re-sourcing must meet or exceed the quality of the accepted product.

If the Contracting Officer does not approve the sourcing plan, the contractor shall seek better pricing or identify other sources.

4.E. Re-Sourcing. At any time, The Government reserves the right to direct the contractor to reduce operations in one Area Support Country and increase operations in another or to find alternative sources within the same country.

Examples of situations when re-sourcing might be necessary include but are not limited to changing requirements due to efficiency issues, source performance, or changing demand. When re-sourcing is required, GSA shall only pay the contractor for items ordered, delivered, and accepted.

4.F. Order Management. Upon approval of the GSA Contracting Officer, the sourced item will be added to the GSA Supply System. At that point, GSA may begin to place orders with the contractor. Contractor is responsible for delivery either to destinations within Afghanistan or to consolidation points within nearby countries at the option of the Government. Items may also be picked up by the Government.

4.F.1. Ordering Process. After product approval, for ease of identification by the customer, a National Stock Number will be assigned. GSA will use the National Stock Number to place orders electronically with the contractor. Orders shall be placed via ANSI X 12 or XML transaction, e-mail, fax, or File Transfer Protocol (FTP) file transfer of the detailed information required for each purchase order accomplished under this contract It is the contractor’s responsibility to determine when and how to transmit the order to the source, whether to stock or store the item, or take other steps to ensure timely delivery and economic quantities. Delivery time requirements, reporting and monitoring all begin when GSA transmits the order to the contractor; not when the contractor passes it along to the source.

The Government will not bear any risk of loss of damage that may occur prior to delivery and acceptance in the Government location or by the approved Government carrier.

4.F.2. Specialized Product Requirements. Exhibit 2 addresses GSAs specialized requirements, including packing, packaging, marking, labeling, etc. Where necessary, the contractor may propose modifications to these specialized requirements to the GSA Contracting Officer, as part of the sourcing proposal.

4.G. Status. The Contractor shall be able to track and report status on all orders on a weekly basis. This shall include documenting timely delivery/shipment.

Reporting Status includes:

· Acknowledgement of order receipt

· Expected shipping date and origination point of the shipment

· Actual Shipping Date and Carrier

· Actual Delivery Date and Proof of Delivery, if applicable

Proof of delivery or shipment (as applicable) shall be presented to the Contracting Officer (or an authorized designee) before the items may be invoiced.

The Contractor shall maintain and operate a quality surveillance plan to oversee the performance of the source. This shall include periodic on site reviews. The results of the quality surveillance plan shall be documented in the contractor’s monthly source performance report.

At the time of delivery or shipment, all supplies furnished under this contract shall be free from defects in design or workmanship and shall be subject to the source’s best commercial warranty.

4.H. Payment. As addressed in Section, B, the Contractor shall invoice the established price for all items delivered and where proof of delivery has been provided to the COTR (or shipped with proof of shipment, as applicable). The Contractor shall be responsible for paying the source and must be able to demonstrate such payments have been made as requested by the Contracting Officer.

Payment on delivered or shipped items shall only be made for items in conformance with the terms and conditions of this contract. Payment will not be made until performance is certified by the COTR. The contractor shall accomplish invoicing for payment within the terms specified in the prompt payment clause. Invoicing instructions shall be provided by the Contracting Officer. Electronic invoicing is allowed, provided submissions meet the requirements specified in the Prompt Payment clause. All payment to the contractor shall be made in US dollars.

The contractor shall be responsible for paying all expenses necessary to provide delivery or shipment of required products in a timely manner.

4.I. Reports. The contractor is required to provide a series of reports on progress, accomplishments, and performance. The Contracting Officer may add additional reporting requirements at no additional charge. The following reports are required:

· Contractor Progress Reports

Frequncy. Monthly.

Distribution: Contracting Officer and COTR.

Beginning 30 days after award, the Contractor shall provide monthly progress reports on efforts to match the items in Exhibit 1 to locally available items.

· Source Performance Reports Frequency. Monthly.

Distribution. Contracting Officer and COTR.

Beginning 30 days after the Contracting Officer accepts the first sourced item, the Contractor shall provide monthly accomplishment reports, including, at a minimum:

· List of Items

· Number of Transactions

· Value and Quantity sourced (by country and origin)

· Number of Transactions

· Value and Quantity Sourced (by country of origin)

· Manufactured/assembled

· Stored or distributed only

· Product Cost

· Freight Cost

· Fill Rate (Percent of Orders successfully delivered or shipped within specified time frames)

· Days from receipt of order to shipment

· Days from receipt of order to delivery, if applicable

· Percentage of timely shipments/deliveries

· Descriptive and quantification required for DOD records.

· List of outstanding orders and expected disposition.

· Performance Results by Source (results of the quality surveillance plan)

· Dollars Expended Reports:

Frequency: Quarterly Distribution: COTR.

Document total dollars expended under this program by country, by month, by year, and cumulative.

· Weekly Status Reports:

Frequency: COB Friday Distribution: COTR

Report Elements are defined in 4.G. Status.

Reports shall be provided in a narrative and spreadsheet format, as appropriate. Report shall be logically structured so as to provide the Government with the essential information in a manner that can be easily read and understood by various organizational levels.

Additional reports may be added, and data elements changed, as directed by the Contracting Officer.

4.J. Meetings: Within 30 days of initial award, the contractor shall meet with the Contracting Officer and other Government representatives with the purpose of insuring an efficient initiation of services under this contract. This meeting will be held in the Washington, DC area (details and agenda will be provided prior to the meeting). Contractor shall participate in coordination meetings/teleconferences as requested.

4.K. Key Personnel: As specified elsewhere in this solicitation, the contractor shall provide the Contracting Officer a listing of key personnel. These personnel are considered essential to the work being performed under this contract. Before removing, replacing, or diverting any of the specified personnel, the Contractor must (1) Notify the Contracting Officer at least 30 days in advance; (2) submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on this contract; and (3) obtain the Contracting Officer’s written approval The list of key personnel may, with the consent of the contracting parties, be amended from time to time during the course of this contract to add or delete personnel.

5.0 PERFORMANCE METRICS

This is a performance based acquisition. GSA’s goal is economic and expeditious sourcing of these items closer to the actual consumption by the end customer.

As shown in Exhibit 1, GSA has identified 112 common use consumable items. In evaluating contractor performance, GSA will look to the total percentage of these common consumables successfully sourced locally, compared to the total percentage of items (in dollars) supplied by GSA.

Successful performance means matching the current GSA item to an available commercial item from the Area Support Countries or indication after a thorough review to the Government that a product cannot be matched to an available item within the country.

Sourcing Metrics:

The contractor is required to present the contractor monthly progress report 100% of the time.

In addition, the contractor is required to successfully source at least 10 NSNs/Items per month.

Source Management Metrics

The contractor is required to present the complete and accurate Source Performance Report, Dollars Expended Report, and Weekly Status Reports, as described in Paragraph 4.I of the Performance Work Statement100% of the time.

The contractor is required to manage the accepted sources in such a manner that shipment (or delivery, as applicable) is conducted in a manner fully in conformance with the agreed upon timeframe 95% of the time.

Quality and Quantity conformance shall generate no more than a 3% discrepancy rate from the customer.

The Government reserves the right to all remedies legally available in the event that the contractor does not perform in accordance with these requirements.

List of Exhibits Exhibit 1 List of Top Selling Product for Afghanistan and Demand for Recent 9 Month Period (Oct 2008 – June 2009)

Exhibit 2 Specialized Product Requirements

Exhibit 3 Acronyms and Units of Issue Exhibit 4 – Military Standard 129 (Marking)

Exhibit 5 – Federal Supply Classes Managed by GSA EXHIBIT 1 – List of Top Selling Product for Afghanistan and Demand for Recent 9 Month Period (Oct 2008 – June 2009) Toner Cartridges

Sales for 1st nine months of FY2009: $2,651,297

Gloves

Sales for 1st nine months of FY2009: $1,905,440

NSN

Dinnerware and Flatware

Sales for 1st nine months of FY2009: $15,363,300

Copy Paper

Sales for 1st nine months of FY2009: $826,308

Paper Products

Sales for 1st nine months of FY2009: $7,354,874

Chemicals and Cleaners

Sales for 1st nine months of FY2009: $4,843,685

Bags and Liners

Sales for 1st nine months of FY2009: $2,944,520

Packing Materials

Sales for 1st nine months of FY2009: $4,525,912