Answers_to_Prospective_Supplemental_Questions.pdf

Post-Amendment No. 02 Questions:

Question 1

Question 214 asked “are we correct that the required indicators that must be included are the 30 indicators listed in Section 3…?” USAID responded yes. However, under answer 215 USAID states that “offerors can include only those standard indicators from Attachment J.19 that are applicable to their approach.” These answers seem contradictory. Could USAID please clarify whether all 30 indicators must be included or not? Regardless, we respectfully request that USAID reconsider their decision not to increase the page limit for the ME&L plan. Some required indicators (e.g. GDP per capita) are likely to applicable to offerors’ approaches but do not necessarily measure NPSP performance and take away space from more meaningful custom indicators.

Answer 1

The statements in Answers 214 and 215 are not contradictory. The set of 30 standard indicators provided in Attachment J.19 remain the “universe” of applicable standard indicators. From that set, the offerors may choose a subset, as applicable and as appropriate for their technical approach, in addition to any other custom indicators that the offeror may deem relevant.

Question 2

Question 116 amends section L.9(b) to “require Offerors to use the average exchange rate between the Nigerian Naira and the U.S. dollar for the month of July.” Due to the current historically low value of the Naira compared to the Dollar, we are concerned that using a relatively narrow swath of data taken during a period of the currency’s multi-year low against the dollar creates significant currency risk in the event of a recovery over the course of the program. In light of this, would USAID be amenable to offerors budgeting for a currency contingency fund to be used in the event of a greater than 10% increase in the Naira’s value relative to the dollar? If not, can USAID provide assurance that during any competitive range negotiations, it will provide updated guidance on the exchange rate that will be made available to all offerors? Additionally, we have experienced reluctance from some USAID missions to issue budget modifications in light of major currency fluctuations and are concerned that this could be a risk to a program as high-profile as Power Africa. In light of this, could USAID certify at this point that a contract modification in the event of a more than 10% move in the exchange rate would be considered? For example, this could be as a budget modification to realign the exchange rate or a modification to pay all local staff in USD. We believe that a hedge against currency fluctuation or the provision of revised currency guidance at a later date is in both parties’ interest.

Answer 2

While USAID understands the offeror’s concern with regards to Naira’s value, we disagree with the conclusion. It is true that Naira’s value is at an historical low against the USD, but this is not due to its actual free-market fluctuations; rather it is due to the artificial fixed exchange rate historically in place and most recently removed. Therefore, USAID does not believe that the historical value of Naira before June 2016 is a realistic indication of where that value may end up in the next 5 years.

It is precisely due to these uncertainties (among others), however, that USAID has chosen to award a cost-reimbursement contract for the Nigeria Task Order (see FAR 16.301-2(a)(2)). As offerors realize, under a cost-reimbursement contract, the government takes on the bulk of such risks by fully reimbursing the cost of performance while compensating the contractor for certain costs of doing business, via the base and award fee (in this case).

Hence, a cost-reimbursement structure makes a “contingency” line item unnecessary and inappropriate. As a result, offerors are instructed to follow the guidance provided in the RFP and utilize the average exchange rate for July in order to estimate their local costs. If and when a budget re-alignment, due to unprecedented currency fluctuations becomes necessary, USAID will do so in coordination with the contractor, based on a thorough analysis of the circumstances at that time and the impact that the currency fluctuation has on performance.

Question 3

Please confirm that, per the standard definition, “Offeror” refers to prime offerors and not subcontractors.

That is, Answer 174 means that a small business may not bid as a prime contractor for a restricted (small business set aside) award and also as a prime contractor for an unrestricted award at the same time.

Question 3 (Restated)

More specifically, could USAID please confirm that a small business concern may submit a proposal as a prime Offeror for the small business set-aside award as well as be proposed as a subcontractor to a large business concern on an unrestricted proposal? By the same token, could USAID please confirm that a large business bidding on an unrestricted award may also be included as a subcontractor on a small business set aside offer led by a US small business?

Answer 3

Confirmed.

Question 4

In Section L.8(a), the technical proposal is given the following page limits:

Section Page limit Corporate Capability 25 TO No. 1 Contractor SOW 30 TO Management Plan 5 Tracking and Managing Results 3 Contractor Past Performance 5 Total 68

However, in Section L.8(b), the total number of pages was only raised to 60 total. Can USAID please clarify this discrepancy?

Answer 4

Amendment No. 3 will revise the page limitation to 68 to correct this discrepancy. USAID anticipates issuing Amendment No. 3 on Wednesday, August 10.

Question 5

In answer 49, USAID states: “USAID assistance and program-related procurements in Nigeria are exempt from host government taxes and duties. The exemption does not include personal income taxes and corporate taxes. As a result, all taxes and duties are considered unallowable under Task Order No. 1.” The limitations on personal and corporate taxes is at odds with our understanding of most bilateral agreements and has the potential to have a severe impact on project budgets. Could USAID clarify the level and degree of tax exemptions in place for Nigeria? Alternatively, could USAID provide the most recent bilateral agreement with associated standard provisions for review by offerors?

Answer 5

Answer 49 addressed this question. Corporate and personal taxes are never exempted under such bilateral assistance agreements.

Question 6

In section L.8.4, page 139, the page limit for Annex C has been increased from 30 to 40 pages. At the same time USAID has confirmed that the required contents are limited to CVs not to exceed 3-pages each on proposed task order Key Personnel, which in accordance with FAR regulations are limited to 5, and associated Letters of Commitment. Please confirm that the new limit is indeed 40-pages and if so please advise how Offerors may use this space. We believe the page limit may have been correct at its original limit, 30-pages or may need to be revised downward to 20-pages, and that the increase may have been the result of confusion with Annex F within this same section, and Annex C within section L.10.4, page 154.

Answer 6

Offerors may use this space in any way to present information it deems appropriate for an evaluation of its offer. Other offerors requested additional space in Annex C and the amendment accommodated those requests. Please remember that an Offeror need not provide 40 pages of content merely because it is authorized to do so by the terms of a solicitation.

Question 7

Reference: Q&A #59, “Amendment No. 2 clarifies that the offeror must submit Annex F (unrestricted offerors) or Annex C (restricted offerors)—in addition to Attachment J.12 (formerly Attachment J.53)— prior to the submission of the offer.” Could USAID confirm that section IX. Contractor Past Performance (not to exceed 5 pages) should be submitted by August 29th?

Answer 7

Confirmed.

Question 8

Q&As #59 & #106 state that Annex F should contain the past performance summary matrix (Attachment J.12, formerly Attachment J.53) and Contractor Performance Reports. However, Q&A #270 states, “Amendment No. 2 deletes the requirement for the submission of a Contractor Performance Report— Short Form and converts Attachment J.53 to Attachment J.12.” Could USAID confirm that offerors must include a past performance summary matrix and Contractor Performance Report—Short Forms in Annex F?

Answer 8

Contractor Performance Report—Short Forms are no longer required.

PLEASE NOTE THAT THE QUESTION AND ANSWER PERIOD HAS CLOSED. USAID HAS

ANSWERED THE ABOVE QUESTIONS AS A COURTESY TO PROVIDE PROSPECTIVE

OFFERORS ADDITIONAL INFORMATION TO STRENGTHEN THEIR PROPOSALS AND

CONFIRM THEIR TEAMING ARRANGEMENTS. UNLESS ABSOLUTELY JUSTIFIED, USAID

WILL NO LONGER RESPOND TO PROSPECTIVE OFFEROR QUESTIONS AT THIS TIME.

NEVERTHELESS, IT IS CLEAR THAT CERTAIN PROSPECTIVE OFFERORS HAVE

INVESTEDCONSIDERABLE RESOURCES AND THOUGHT TO DEVELOP OFFERS. USAID IS

VERY APPRECIATIVE OF THIS EFFORT AND LOOKS FORWARD TO A ROBUST

COMPETITION THAT WILL ULTIMATELY BENEFIT THE LIVES OF THE HUNDREDS OF

MILLIONS OF PEOPLE WHO DO NOT HAVE ACCESS TO ELECTRICITY IN AFRICA.