Solicitation QSDLA-K9-10-0001-N Amendment 3 Q A Final.doc

SOLICITATION NO. QSDLA-K9-01-0001-N

AMENDMENT THREE – QUESTIONS AND ANSWERS

Attached is Amendment Three to Solicitation No. QSDLA-K9-10-0001-N. This amendment consists of Questions and Answers. It also includes attachments of the slide presentation that was given at the November 2, 2009 pre-proposal meeting and a list of attendees at the meeting.

NOTE: THE CLOSING DATE FOR RECEIPT OF PROPOSALS REMAINS UNCHANGED. PROPOSALS ARE DUE ELECTRONICALLY BY 4:15 P.M. CENTRAL STANDARD TIME, DECEMBER 8, 2009. OFFERS NOT SUBMITTED ON AMENDMENT TWO SHALL BE CONSIDERED NON-RESPONSIVE AND REJECTED. THERE ARE NO CHANGES TO AMENDMENT TWO.

Q: Will samples of the items be provided from GSA to compare quality and fit for use?

A: No. Complete descriptions of the items consistent with descriptions GSA currently uses for supply items will be provided during the sourcing process.

Q: Is there a specific quality surveillance plan GSA would like us to follow or do we utilize our own with approval?

A: You will utilize your own quality surveillance plan with approval. Your plan should be consistent with current ISO standards.

Q: Will we need to accept all forms specified in 4.F.1 for orders or will one type be designated such as e-mail etc.

A: Orders will be placed through the Federal Supply System; those orders are normally issued electronically or via fax at several intervals during the day.

Q: Will the cost for suppliers submitting samples of product and packaging be part of the program management fee or as part of the product pricing?

A: Offerors need to consider these possible costs in determining their pricing proposal. They will not be reimbursed separately.

Q: Paragraph 4.H. Payment – 2nd paragraph, 2nd sentence “Payment will not be made until performance is certified by the COTR.” What elements define this and how is this conducted?

A: On monthly sourcing services, the COTR will certify that the required reports were submitted and are complete. In circumstances of delivered product, the COTR will obtain verification of shipment or delivery (as applicable) of product in conformance with the accepted sourcing proposal. Once this is done, this certification will be provided to our finance office to instruct them to make payment.

Q: Is there incoming inspection for quantity, quality, delivery and cost etc.?

A: The contractor is fully responsible for providing product in accordance with the accepted sourcing proposal. The Government will take necessary steps to verify these issues prior to certifying invoices for payment.

Q: Paragraph 5.0 – Source Management Metrics – How is the 3% discrepancy rate calculated? For example is it based on line items, orders, quantity of items?

A: The rate will be calculated by dividing the number of verified discrepancies by the number of orders.

Q: Can we get a copy of the slides from the conference?

A: The slides are posted with this amendment.

Q: Will we be receiving feedback related to quality/performance directly from the customer or via a GSA contact?

A: GSA is responsible for feedback to you.

Q: Will products require MSDS sheets or something equivalent from the local manufacturers and will we coordinate the qualification to product engineers or will GSA coordinate?

A: This issue will be dealt with on a case by case basis during the sourcing process.

Q: Need to clarify “The solicitation has been modified to add two additional pricing requests. The first is a fee to be paid upon the receipt of acceptable sourcing results and the second is a transaction fee based on monthly volume.” Are these fees in addition to the monthly program management fee?

A: See the schedule provided in Section B on page 3 of the solicitation. There is a monthly program fee, a source acceptance fee, and a transaction fee that will vary depending on the number of orders per month.

Q: A significant expense to the contractor is the cost of money. It is unlikely that any vendor of these products will make a shipment without cash in advance of shipment or a substantial advance payment. If there is a delay in shipment from the time the order is placed, the contractor could conceivably be out funds for as much as 60-90 days, especially on FOB destination shipments. Assuming cost of money at approximately 2% per month, this could become a substantial cost. Therefore, in our response is it acceptable for us to quote a transaction fee that is a percentage of the cost of the material that is being procured? This would vary based on your response to the meaning of acceptance, payment process below.

A: It is not acceptable to propose a percentage of cost on this item. The purpose of the fees are to provide incentive for the awarded contractor to successfully locate sources and provide some compensation for any necessary order management, not to provide financing for products. We currently anticipate few, if any, FOB destination shipments.

Q: In summary, in order for the contractor to provide the expected level of service, we need to understand the costs we will incur, not only for procurement, compliance with quality, but the raw cost of money involved. Depending on manufacturing time, method of shipment, delays in product acceptance, the contractor could be out several million dollars for as long or longer than 90 days. We need to recover the cost of those funds accordingly. I have read the minutes of the meeting and understand that this issue was mentioned, however, a definitive answer is not apparent.

We need clarification on the payment process and related terminology. FOB origin means that title to the goods transfers to the consignee when the material is turned over to a common carrier. Will the contractor be able to bill the government at the time the goods are turned over to the carrier or will the billing process be delayed until the Government’s customer actually receives and approves the product? Please see Page 42 of the RFQ, (n) “Title. Unless specified elsewhere in this contract, title to the items furnished under this contract shall pass to the Government upon acceptance, regardless of when or where the Government takes physical possession.”

A: FOB terms will be determined during the sourcing process on each item. However, as stated earlier, few, if any FOB Destination orders are anticipated. In situations where FOB Origin is agreed to during the sourcing process, the contractor will be able to bill upon acceptance by the Government.

Q: Does a cover page, table of contents and list of figures count toward the 15 page limit (Factor One on page 73)?

A: No

Q: Does past performance count toward the 15 page limit?

A: No Q: Will a list of attendees at the November 2 meeting be posted?

A: The list of attendees is posted with this amendment.