Am 01 RFA-517-11-000004.docx

November 1, 2011

Subject: Amendment 01 to Request for Proposals 517-11-000004 (RFP No. SOL-517-11-000004) “Caribbean Basin Security Initiative Monitoring & Evaluation Services”

The purpose of this letter is to amend Request for Proposals SOL-517-11-000004 “CBSI M&E Services” submitted on October 11, 2011. This amendment includes a few revisions, including deliverables and proposed contract type. The question and answer period for this RFP is now closed.

Concerns regarding this amendment must be submitted by e-mail to Ms. Ayana Angulo, Acquisition & Assistance Specialist at aangulo@usaid.gov.

Thank you for your consideration to this USAID initiative.

Sincerely, Ayana W. Angulo Acquisition & Assistance Specialist USAID/Dominican Republic

COVER LETTER

Closing Date changed from “November 4, 2011” to “November 18, 2011”.

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B2. CONTRACT TYPE

Replace the following text: “Fixed Price Incentive Firm Target” with “Fixed Price Incentive Successive Targets”.

B3. TARGET COST, TARGET PROFIT, CEILING PRICE, INITIAL SHARE RATIO

Change the title of section B.3 from “TARGET COST, TARGET PROFIT, CEILING PRICE, SHARE RATIO” to “TARGET COST, TARGET PROFIT, CEILING PRICE, INITIAL SHARE RATIO, FIRM TARGET PROFIT CEILING, FIRM TARGET PROFIT FLOOR”

Replace all of the text in this section with the following:

“(a) The initial target cost for the performance of the work required under this contract, exclusive of profit, if any, is $___________. The initial target profit, if any, is $__________. The initial target price (including target profit) is $________________.

(b) The firm target profit ceiling is $_________. The firm target profit floor is $___________.

(c) The initial share ratio above target cost is __%/__%. The initial share ratio below target cost is __%/__%.

(d) The contract ceiling price is $___________.

B4. CONTRACT LINE ITEM (CLIN) STRUCTURE

Remove the table column entitled “UNIT COST”.

Add table columns entitled “TARGET COST, TARGET PROFIT, TARGET PRICE”.

Remove Deliverable: “Plan to identify ‘balloon effects’ across the region.”

Renumber deliverables 0012 – 0017.

B5. FINAL PROFIT AND FINAL COST

Replace the text in this section with the following: “

C4. DELIVERABLES AND REPORTS REQUIRED

· Move deliverable #2 “Plan to identify any balloon effects (as a result of CBSI interventions) across the region as a result of success/failure of a particular activity.” to the end of the description of deliverable #1 Monitoring & Evaluation Framework and Comprehensive Plan.

· Requirements for Evaluation Reports:

Add “(including balloon effects)” to f) Findings (including balloon effects)/Conclusions/Recommendations. (17-20 pp)

· #12 Quarterly Limitation on Payments Statement: Replace “FAR 52.216-16” with “FAR 52.216-17”.

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H10. AUTHORIZED GEOGRAPHIC CODE

· Replace the first two sentences of the first paragraph with the following text: “The authorized geographic codes for procurement of goods and services under this solicitation are 000 (United States), 517 (Dominican Republic), 532 (Jamaica), 504 (Guyana), and 538 (Caribbean Regional) subject to the requirements in Section H.2 above. Additionally, based on the authority of the November 24, 2010 Blanket Waiver, local procurement from the cooperating country is authorized in an amount up to $5 million of commodities and services per USAID contract.”

PART II – CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I3. Replace Clause “52.216-16 INCENTIVE PRICE REVISION—FIRM TARGET (OCT 1997)” with “52.216-17 INCENTIVE PRICE REVISION – SUCCESSIVE TARGETS (OCT 1997)” and add full text of clause:

(a) General. The supplies or services identified in the Schedule as Items 001 through 0017 are subject to price revision in accordance with this clause; provided, that in no event shall the total final price of these items exceed the ceiling price of ________ dollars ($ __________________). The prices of these items shown in the Schedule are the initial target prices, which include an initial target profit of ___________ [Contracting Officer insert percent of] percent of the initial target cost. Any supplies or services that are to be --

(1) Ordered separately under, or otherwise added to, this contract; and

(2) Subject to price revision in accordance with this clause shall be identified as such in a modification to this contract.

(b) Definition. “Costs,” as used in this clause, means allowable costs in accordance with Part 31 of the Federal Acquisition Regulation (FAR) in effect on the date of this contract.

(c) Submitting data for establishing the firm fixed price or a final profit adjustment formula.

(1) Within ___________ [Contracting Officer insert number of days] days after the end of the month in which the Contractor has completed draft scopes of work for all mid-term, impact, and performance evaluations, the Contractor shall submit the following data:

(i) A proposed firm fixed price or total firm target price for supplies delivered and to be delivered and services performed and to be performed.

(ii) A detailed statement of all costs incurred in the performance of this contract through the end of the month specified above, in the format of Table 15-2, FAR 15.408 (or in any other form on which the parties may agree), with sufficient supporting data to disclose unit costs and cost trends for --

(A) Supplies delivered and services performed; and

(B) Inventories of work in process and undelivered contract supplies on hand (estimated to the extent necessary).

(iii) An estimate of costs of all supplies delivered and to be delivered and all services performed and to be performed under this contract, using the statement of costs incurred plus an estimate of costs to complete performance, in the format of Table 15-2, FAR 15.408 (or in any other form on which the parties may agree), together with --

(A) Sufficient data to support the accuracy and reliability of the estimate; and

(B) An explanation of the differences between this estimate and the original estimate used to establish the initial target prices.

(2) The Contractor shall also submit, to the extent that it becomes available before negotiations establishing the total firm price are concluded --

(i) Supplemental statements of costs incurred after the end of the month specified in subparagraph (1) of this section for --

(A) Supplies delivered and services performed; and

(B) Inventories of work in process and undelivered contract supplies on hand (estimated to the extent necessary); and

(ii) Any other relevant data that the Contracting Officer may reasonably require.

(3) If the Contractor fails to submit the data required by subparagraphs (c)(1) and (2) of this section within the time specified and it is later determined that the Government has overpaid the Contractor, the Contractor shall repay the excess to the Government immediately. Unless repaid within 30 days after the end of the data submittal period, the amount of the excess shall bear interest, computed from the date the data were due to the date of repayment, at the rate established in accordance with the Interest clause.

(d) Establishing firm fixed price or final profit adjustment formula. Upon the Contracting Officer’s receipt of the data required by paragraph (c) of this section, the Contracting Officer and the Contractor shall promptly establish either a firm fixed price or a profit adjustment formula for determining final profit, as follows:

(1) The parties shall negotiate a total firm target cost, based upon the data submitted under paragraph (c) of this section.

(2) If the total firm target cost is more than the total initial target cost, the total initial target profit shall be decreased. If the total firm target cost is less than the total initial target cost, the total initial target profit shall be increased. The initial target profit shall be increased or decreased by _____ percent (see Note 2) of the difference between the total initial target cost and the total firm target cost. The resulting amount shall be the total firm target profit; provided, that in no event shall the total firm target profit be less than ___________ percent or more than ________________ percent [Contracting Officer insert percents] of the total initial cost.

(3) If the total firm target cost plus the total firm target profit represent a reasonable price for performing that part of the contract subject to price revision under this clause, the parties may agree on a firm fixed price, which shall be evidenced by a contract modification signed by the Contractor and the Contracting Officer.

(4) Failure of the parties to agree to a firm fixed price shall not constitute a dispute under the Disputes clause. If agreement is not reached, or if establishment of a firm fixed price is inappropriate, the Contractor and the Contracting Officer shall establish a profit adjustment formula under which the total final price shall be established by applying to the total final negotiated cost an adjustment for profit or loss, determined as follows:

(i) If the total final negotiated cost is equal to the total firm target cost, the adjustment is the total firm target profit.

(ii) If the total final negotiated cost is greater than the total firm target cost, the adjustment is the total firm target profit, less _______________ percent of the amount by which the total final negotiated cost exceeds the total firm target cost.

(iii) If the total final negotiated cost is less than the total firm target cost, the adjustment is the total firm target profit, plus _____________ percent of the amount by which the total final negotiated cost is less than the total firm target cost.

(iv) The total firm target cost, total firm target profit, and the profit adjustment formula for determining final profit shall be evidenced by a modification to this contract signed by the Contractor and the Contracting Officer.

(e) Submitting data for final price revision. Unless a firm fixed price has been established in accordance with paragraph (d) of this section within ______ [Contracting Officer insert number of days] days after the end of the month in which the Contractor has delivered the last unit of supplies and completed the services specified by item number in paragraph (a) of this section, the Contractor shall submit in the format of Table 15-2, FAR 15.408 (or in any other form on which the parties agree) --

(1) A detailed statement of all costs incurred up to the end of that month in performing all work under the items;

(2) An estimate of costs of further performance, if any, that may be necessary to complete performance of all work under the items;

(3) A list of all residual inventory and an estimate of its value; and

(4) Any other relevant data that the Contracting Officer may reasonably require.

(f) Final price revision. Unless a firm fixed price has been agreed to in accordance with paragraph (d) of this section, the Contractor and the Contracting Officer shall, promptly after submission of the data required by paragraph (e) of this section, establish the total final price, as follows:

(1) On the basis of the information required by paragraph (e) of this section, together with any other pertinent information, the parties shall negotiate the total final cost incurred or to be incurred for the supplies delivered (or services performed) and accepted by the Government and which are subject to price revision under this clause.

(2) The total final price shall be established by applying to the total final negotiated cost an adjustment for final profit or loss determined as agreed upon under subparagraph (d)(4) of this section.

(g) Contract modification. The total final price of the items specified in paragraph (a) of this section shall be evidenced by a modification to this contract, signed by the Contractor and the Contracting Officer. This price shall not be subject to revision, notwithstanding any changes in the cost of performing the contract, except to the extent that --

(1) The parties may agree in writing, before the determination of total final price, to exclude specific elements of cost from this price and to a procedure for subsequent disposition of these elements; and

(2) Adjustments or credits are explicitly permitted or required by this or any other clause in this contract.

(h) Adjustment of billing prices.

(1) Pending execution of the contract modification (see paragraph (e) of this section), the Contractor shall submit invoices or vouchers in accordance with billing prices as provided in this paragraph. The billing prices shall be the initial target prices shown in this contract until firm target prices are established under paragraph (d) of this section. When established, the firm target prices shall be used as the billing prices.

(2) If at any time it appears from information provided by the contractor under subparagraph (i)(1) of this section that the then-current billing prices will be substantially greater than the estimated final prices, the parties shall negotiate a reduction in the billing prices. Similarly, the parties may negotiate an increase in billing prices by any or all of the difference between the target prices and the ceiling price, upon the Contractor’s submission of factual data showing that the final cost under this contract will be substantially greater than the target cost.

(3) Any adjustment of billing prices shall be reflected in a contract modification and shall not affect the determination of any price under paragraph (d) or (f) of this section. After the contract modification establishing the total final price is executed, the total amount paid or to be paid on all invoices or vouchers shall be adjusted to reflect the total final price, and any resulting additional payments, refunds, or credits shall be made promptly.

(i) Quarterly limitation on payments statement. This paragraph (i) shall apply until a firm fixed price or a total final price is established under subparagraph (d)(3)or (f)(2).

(1) Within 45 days after the end of each quarter of the Contractor’s fiscal year in which a delivery is first made (or services are first performed) and accepted by the Government under this contract, and for each quarter thereafter, the Contractor shall submit to the contract administration office (with a copy to the contracting office and the cognizant contract auditor) a statement, cumulative from the beginning of the contract, showing --

(i) The total contract price of all supplies delivered (or services performed) and accepted by the Government and for which final prices have been established;

(ii) The total cost (estimated to the extent necessary) reasonably incurred for, and properly allocable solely to, the supplies delivered (or services performed) and accepted by the Government and for which final prices have not been established;

(iii) The portion of the total interim profit (used in establishing the initial contract price or agreed to for the purpose of this paragraph (i)) that is in direct proportion to the supplies delivered (or services performed) and accepted by the Government and for which final prices have not been established -- increased or decreased in accordance with subparagraph (d)(4) of this section when the amount stated under subdivision (ii) of this section, differs from the aggregate firm target costs of the supplies or services; and

(iv) The total amount of all invoices or vouchers for supplies delivered (or services performed) and accepted by the Government (including amounts applied or to be applied to liquidate progress payments).

(2) Notwithstanding any provision of this contract authorizing greater payments, if on any quarterly statement the amount under subdivision (i)(1)(iv) of this section exceeds the sum due the Contractor, as computed in accordance with subdivisions (i)(1)(i), (ii), and (iii) of this section, the Contractor shall immediately refund or credit to the Government the amount of this excess. The Contractor may, when appropriate, reduce this refund or credit by the amount of any applicable tax credits due the Contractor under 26 U.S.C. 1481 and by the amount of previous refunds or credits effected under this clause. If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account consistent with the Progress Payments clause. The Contractor shall provide complete details to support any claimed reductions in refunds.

(3) If the Contractor fails to submit the quarterly statement within 45 days after the end of each quarter and it is later determined that the Government has overpaid the Contractor, the Contractor shall repay the excess to the Government immediately. Unless repaid within 30 days after the end of the statement submittal period, the amount of the excess shall bear interest, computed from the date the quarterly statement was due to the date of repayment, at the rate established in accordance with the Interest clause.

(j) Subcontracts. No subcontract placed under this contract may provide for payment on a cost-plus-a-percentage-of-cost basis.

(k) Disagreements. If the Contractor and the Contracting Officer fail to agree upon

(1) a total firm target cost and a final profit adjustment formula or

(2) a total final price, within 60 days (or within such other period as the Contracting Officer may specify) after the date on which the data required in paragraphs (c) and (e) of this section are to be submitted, the Contracting Officer shall promptly issue a decision in accordance with the Disputes clause.

(l) Termination. If this contract is terminated before the total final price is established, prices of supplies or services subject to price revision shall be established in accordance with this clause for

(1) completed supplies and services accepted by the Government and

(2) those supplies or services not terminated under a partial termination.

All other elements of the termination shall be resolved in accordance with other applicable clauses of this contract.

(m) Equitable adjustments under other clauses. If an equitable adjustment in the contract price is made under any other clause of this contract before the total final price is established, the adjustment shall be made in the total target cost and may be made in the maximum dollar limit on the total final price, the total target profit, or both. If the adjustment is made after the total final price is established, only the total final price shall be adjusted.

(n) Exclusion from target price and total final price. If any clause of this contract provides that the contract price does not or will not include an amount for a specific purpose, then neither any target price nor the total final price includes or will include any amount for that purpose.

(o) Separate reimbursement. If any clause of this contract expressly provides that the cost of performance of an obligation shall be at Government expense, that expense shall not be included in any target price or in the total final price, but shall be reimbursed separately.

(p) Taxes. As used in the Federal, State, and Local Taxes clause or in any other clause that provides for certain taxes or duties to be included in, or excluded from, the contract price, the term “contract price” includes the total target price or, if it has been established, the total final price. When any of these clauses requires that the contract price be increased or decreased as a result of changes in the obligation of the Contractor to pay or bear the burden of certain taxes or duties, the increase or decrease shall be made in the total target price or, if it has been established, in the total final price, so that it will not affect the Contractor’s profit or loss on this contract.

SECTION J - LIST OF ATTACHMENTS

Add the following attachments:

“ATTACHMENT 10 – DR At-Risk Youth Initiative RFA

ATTACHMENT 11 – Information Sheet on CBSI Projects to be Evaluated

ATTACHMENT 12 – Fixed Price Incentive Successive Targets Illustration”

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.3 52.216-1 TYPE OF CONTRACT (APR 1984)

Replace Fixed Price Incentive Firm Target to “Fixed Price Incentive Successive Targets”

(b) The Price Proposal must include the following information:

In the 4th bullet under this section, add the word “initial” in front of the word “target” throughout the paragraph.

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