SOL-OAA-16-000131_Questions_ _Answers.pdf

QUESTION AND ANSWERS ON SOL-OAA-16-000131

1.Page 3: The selected BPA holders must be able to perform all activities specified in the scope of work in support of USAID programs including storage of the RUTF/ RUSF units so that they will be available for immediate delivery upon issuance of a written contract or order.

Page 3 (Description): The essence of this agreement is to have a contractor produce, store, and deliver the RUTF/ RUSF for the United States Agency for International Development, Office of Food For Peace upon award of Purchase Order.

If stocking is not required under the proposed BPA, does the storage refer specifically to the time between the award of the contract and the time of delivery? Storage for an undetermined amount of time for an undefined quantity poses a significant risk to suppliers. Is there a limit on the amount of time and quantity of product that will be required to be stored in the suppliers’ warehouse?

Based on historical precedence, we propose that a time cap should be put on the storage requirement. For example, the supplier can offer a fixed period of storage which is guaranteed to the government, after receipt of a written contract, which are included in the contract price.

However, if the government requests product to be stored beyond the agreed upon storage period, incremental storage fees, based on quantity, will apply.

Answer: Stocking of RUTF /RUSF in anticipation of award of Purchase Orders is not required under this solicitation, however potential contractors may produce commodity in anticipation of Purchase Orders. Storage costs associated with producing commodities in anticipation of Purchase Order will be for the contractor’s account. The government will allow contractors opportunity to provide a proposal for a fixed period of storage which is guaranteed to the government.

2. Page 3 (Background): USAID intends to procure nearly all of its RUTF/ RUSF through this

BPA.

Under which circumstances will RUTF/RUSF be procured beyond the BPA? Which other procurement options are to be considered in combination with the BPA?

Answer: The government anticipates using this BPA to purchase nearly all of RUTF/RUSF.

However since this BPA is not a requirements contract, the government may purchase RUTF/RUSF from other vendors as necessary.

3. Page 3 (Description): RUTF/ RUSF delivered under this BPA shall conform to the latest USAID RUFs Single Specification attached to this solicitation or otherwise specified in any modification the Contracting Officer requires in writing.

We understand that a supplier will be able to still use grandfathered old specification stocks of raw materials, under the BPA with a waiver (because procurements of RUTF were so low in 2016, we still have significant stocks). Can you please describe the waiver process in more detail? Should we include details about these grandfathered supplies in our proposals?

Answer: If justification exists that old stock raw material could not be exhausted because of low production activity, such stocks can be used with corresponding waiver.

4. Page 3 (Description): This agreement does not require the contractor to produce and store commodities in anticipation for award. However RUTF/RUSF may be produced and stored at the contractor/ vendor’s facility until the government issues a purchase order for immediate release.

We understand that products can be produced and stored in anticipation of award; however, this will be at the supplier’s risk. It is very risky for a producer to hold USAID branded stock;

however, they may choose to do so if it is advantageous to the government. Is USAID branded stock considered to be preferable over commercially branded stock? Will proposals which offer an earlier lead time be favored more highly by the government? Does the consideration of lead time vary depending on the needs of the specific Purchase Order? Under which circumstances will commercially product be accepted? For products which are urgently requested, will commercially branded RUTF/RUSF be considered? Will commercial stock that contains some non-U.S. source origin ingredients be acceptable with a waiver for situations in which non- USAID branded product is being procured?

Answer: USAID requires markings identified in the attached “USAID Marking Instructions published on January 7 2016”. USAID may accept commercially branded products if specified in an individual BPA call. Purchase orders will specify whether USAID branding is required for cartons or individual sachets or both as well as whether the branding information must be printed directly on the packaging. Marking and branding arts must be approved in writing by USAID.

Other packaging requirements must comply with Sections 6 and 7 of USAID RUFs Single Specification.

Purchase Orders through a BPA call will follow the procedures identified in section # 20 of the solicitation. The requirements, evaluation criterial, and relative importance of the evaluation criterial will be identified in each BPA call.

5. Page 3 (Description): As RUTF and RUSF are standard configuration commodities, which are purchased by other government and non-governmental entities, any balance of RUTF/ RUSF remaining in storage at the end of this agreement shall be retained by the contractor, without obligation by USAID, at the end of the BPA agreement period of performance. RUTF/RUSF may not be sold to other organizations with the USAID logo on either the cartons or the individual sachets without specific written approval from the USAID Contracting Officer.

For suppliers, USAID branded RUTF and RUSF are not standard configuration commodities, as they cannot be purchased by other government and non-governmental entities without exceptional approval from the government. What is the process for approval and would USAID allow suppliers to sell USAID-branded products directly to UN agencies or international NGOs?

Under what circumstances?

Answer: The Contracting Officer will make a determination on a case by case basis upon request made by the contractor. In general this request may be approved if the USAID branded commodity is intended to be used as part of a USAID program.

6. Page 3 (Authorized Geographic Code): The authorized geographic code for procurement of goods and services under this BPA is Code 000.

Can you please define the meaning of Code 000?

Answer: The Authorized Geographic Code 000 means United States of America.

7. Page 4 (Pricing): The Contractor guarantees that the prices specified in this BPA, are the maximum prices that shall remain firm and shall not be increased during the entire term of the agreement period, provided however that in the event that the Contractor is able to offer the Government a discounted price, the unit prices shall be reduced for specific Purchase Orders.

The proposed regulation imposes a ceiling price, which inhibits free market bidding over time by instituting a price cap. Because our product includes raw materials which highly fluctuate in price over time, it is not realistic to ask suppliers to give prices out for 4 option years. Ingredient pricing, and therefore final product pricing can be accurately forecasted for no more than 1 year out. We propose the following solutions be considered as alternatives:

• Allowing for negotiation of a fixed price for a set period of time, such as 3 months, 6 months or 1 year (for example, the UNICEF model is for 12 months). Under this model there would not be competitive bidding at every call forward, but instead best price offered at every re-negotiation.

• Reverting to a sealed bid model, like the Kansas City/USDA model, where no ceiling is dictated and free market fluctuations are enabled. Ideally, multiple factors (i.e. price, past performance, lead time, service) should be taken into account.

• Allowing a price range to be proposed for the BPA.

• Allowing suppliers to submit a revised price for each option period when the government determines that it will be exercised.

Answer: Contractors are allowed to provide revised price proposals for each individual BPA call. The government will allow vendors opportunity to provide a revised price proposal prior to exercising each option period.

8. Page 4(11): The remaining shelf life of any delivered RUTF/RUSF shall be at least 20 months from the date of delivery.

Page 8 (Shelf Life): Unless specifically authorized in writing by USAID Contracting Officer, products must be of fresh production e.g., less than 4 months old at the time of delivery.

Suppliers cannot be responsible to maintain the risk of shelf life expiration if they are required to store the product for an undetermined amount of time after the PO is placed. Suppliers can only guarantee the requested 20 months of remaining shelf life at origin at the time the PO is placed.

If the storage time and quantity is detailed in the PO, suppliers can incorporate the cost of storage into their bid, and/or plan production to ensure a just in time delivery can be made.

Answer: The remaining shelf life of any delivered RUTF/RUSF shall be at least 20 months from the date of issuance of Purchase Order.

9. Page 4(13): The contractor shall prepare or make available standard shipping documents (packing lists, certificates of origin, etc.) to permit the government or its agent or transport company to export and transport the RUTF/RUSF from the country of origin.

Can USAID provide an exhaustive list of standard required shipping documents plus any country specific documents for each PO according to the requested destination?

Answer: The government will provide the requested list in specific BPA calls.

10. Page 4(14): As specified in individual transactions, items are to be made available FOB Origin, unless otherwise agreed in writing between the parties.

Does USAID have a mechanism for evaluating lowest landed cost, if a supplier offers multiple different delivery options? Having a mechanism for this could provide significant advantage to the government. Will the cost of transportation be considered in conjunction with the commodity cost, or will the transportation contract be awarded after the commodity supplier is contracted?

Answer: Currently cost of transportation is not considered. The government may use lowest landed cost model in awarding POs. Individual BPA calls will identify all evaluation requirements including a lowest landed cost model if instituted.

11. Page 5(16): USAID may accept commercially branded products if specified in an individual BPA call. Purchase orders will specify whether USAID branding is required for cartons or individual sachets or both as well as whether the branding information must be printed directly on the packaging.

Under which circumstances will commercially branded products be accepted? Will the supplier be aware of USAID’s position to accept commercially branded product at the time of the solicitation? What options for branding will be considered which do not require direct printing of the USAID brand? Can examples be shared?

Answer: The government may require commercial branding when there are security concerns in a specific program/country. The need for unbranded/commercial branding will be identified in a BPA call.

12. Page 5(17): The initial BPA is for a period of 12 months with four one-year option periods.

Will suppliers have the opportunity to revise prices for each extension period?

Answer: Contractors are allowed to provide revised price proposals for each individual BPA call. The government will allow vendors opportunity to provide a revised price proposal prior to exercising each option period

13. Page 5(20): If more than one firm is selected for this BPA, the Contracting Officer will provide each firm a fair opportunity to be considered for individual purchase order in accordance with FAR 8.4

What is considered a fair opportunity? Upon which criteria are bids evaluated at the time an individual PO is placed?

According to FAR 8.4, the following criteria should be considered in addition to price. What is the relative importance of each of the criteria?

(i) Past performance.

(ii) Special features of the supply or service required for effective program performance.

(iii) Trade-in considerations.

(iv) Probable life of the item selected as compared with that of a comparable item. (v)

Warranty considerations.

(v) Maintenance availability.

(vi) Environmental and energy efficiency considerations.

(vii) Delivery terms.

Can a delivery period be shared at the time of every Call, so that suppliers have indication of the expected/acceptable lead time until delivery?

Answer: The Contracting Officer will provide fair notice of the intent to make a purchase, including a description of the supplies to be delivered and the basis upon which the selection will be made to all contractors offering the required supplies, and afford all contractors responding to the notice a fair opportunity to submit an offer and have that offer fairly considered. The relative importance of the selection criterial will be determined on individual BPA calls.

14. Page 5 (Purchase Orders): Purchase Order Forecasting will be issued quarterly and will be based solely on amounts confirmed through signed agreements with implementing partners. This will give suppliers a much more concrete idea of what USAID plans are for the quarter.

This proposed forecasting would be a significant improvement over the previous 2 years.

Forecasting from USAID is essential to ensure that suppliers can respond in a timely manner to USAID requests. In past experience, POs were issued immediately upon signature of contracts.

Quarterly forecasts are only useful when agreements are signed at least one quarter in advance of the need for product. Does USAID intend to sign contracts with distributing partners at least one quarter in advance of their procurement?

Answer: The decision on how awards will be signed has not been made.

15. Page 5 (Purchase Orders): Factor such as (but not limited to) price, past performance on prior task orders issued outside and under this BPA (quality of deliverables/ services/ timeliness, and cost control), socio-economic status and potential impact on other orders paced with the contractor (e.g. capacity issues) may be considered in determining award of individual task orders.

What is the relative weight of each of the factors? Will this be different for each PO?

Answer: The relative weight/importance will be determined before issuance of each BPA call and may be different for each BPA call in line with FAR part 15.304

16. Page 6 (Invoices): The BPA holder will prepare and submit invoices to USAID. Invoices shall be paid at delivery time of commodities to the government.

Timely payment is critical to facilitate our continued operations. The holding cost of inventory in storage is highly variable as we have no commitment from the government related to the requested time the product is expected to be in storage. Will each Call detail specific quantity and length of time which the product is requested to be in storage?

Answer: See # 21(Invoicing) in solicitation. The government will allow for invoicing of commodity once the appropriate COA has been approved by the Contracting Office.

(e)

17. Page 11 (Basis for award): The government intends to make one or more awards after discussion with offerors within the competitive range.

How is “competitive range” defined?

Answer: USAID will evaluate all proposals in accordance with 15.305(a), and, if discussions are to be conducted, establish the competitive range. Based on the ratings of each proposal against all evaluation criteria, the contracting officer will establish a competitive range comprised of all of the most highly rated proposals.

18. Page 12 (Submission of Proposals): The proposal must also list the company’s Tax Identification Number (TIN), Data Universal Numbering System (DUNS), and Small Business Filing Status, if applicable.

Is any preference or set aside given to small businesses or any other category?

Answer: This solicitation is unrestricted. Full and Open Competition.

19. General: In order to offer the best proposition to the government, a clear understanding of the terms and conditions of the BPA is critical. We appreciate the opportunity to pose questions to USAID. At the close of the question period, can USAID offer a meeting in person or via phone with suppliers to debrief and provide further explanation to the written responses?

Answer: The government has provided all interested parties the opportunity to ask questions.

The government does not intend to have a follow up meeting. There will be a discussion between the government and Contractor(s) when the Contracting Officer establishes a competitive range .

20. Will a reasonable shipping period be specified or provided at the time when a call for RUF is made so the supplier can determine if storage expense should be included in their calculation of costing/offered price?

Answer: Stocking of RUTF /RUSF in anticipation of award of Purchase Orders is not required under this solicitation, however potential contractors may produce commodity in anticipation of Purchase Orders. Storage cost associated with producing commodities in anticipation of Purchase Order will be for the contractor’s account. The government will allow contractors opportunity to provide proposal for a fixed period of storage which is guaranteed to the government.

21. If the shipping period is specified in the call and if the corresponding purchase order does NOT ship within the specified shipping period, not due to any fault of the supplier, will the supplier be paid/reimbursed by USAID for storage charges incurred from the latest specified shipping date until the order actually ships?

https://www.acquisition.gov/far/html/Subpart%2015_3.html%23wp1088903

Answer: Contractor may provide storage cost structure in BPA call proposal for storage beyond the anticipated storage period identified in a BPA call.

22. In the solicitation, firm fixed pricing is requested by 9/26/16 for the base period which spans 1/1/2017 through 12/31/2017 and 4 individual twelve month option periods beginning 1/1/18 and ending 12/31/21. As you know commodity prices can be volatile and can change rather quickly.

Therefore, is it reasonable to ask suppliers to provide firm fixed pricing for RUF for 4 option year periods beyond the base period when RUF’s are manufactured using commodities with potentially volatile prices?

Answer: Contractor(s) are allowed to provide revised price proposald for each individual BPA call. The government will allow vendors the opportunity to provide a revised price proposal prior to exercising each option period.

23. In the RFP, section 32, section C, sub-section Rejection of Unrealistic Offers it states: “The Government may reject any proposal that is evaluated to be unrealistic in terms of program commitments, including contract terms and conditions, or unrealistically high or low in cost/price when compared to Government estimates….”

Are there government estimates that are available that can be shared with suppliers for pricing of

RUF?

Are there government estimates that can be shared with suppliers for future prices of commodities used in the production of RUF such as, peanuts, canola oil, sugar, maltodextrin, non-fat dry milk, and vitamin blends, for 2018, 2019, 2020 and 2021?

If reasonable and reliable estimates are not available, can a mechanism be included whereby suppliers may revise pricing for option periods as a particular option period approaches (ie: Sept 30, 2017 last date to revise pricing offered for 2018 option period)?

In UNICEF’s RFP for Long Term Agreements for the supply of RUTF they recognized the difficulty of forecasting prices beyond a year and made a provision to allow suppliers to revise/re-confirm prices offered for option periods as the start of a particular option period approached.

Answer: Independent Government Estimate will not be shared with potential contractors. The government does not have future prices of commodities used in the production of RUF such as, peanuts, canola oil, sugar, maltodextrin, non-fat dry milk, and vitamin blends, for 2018, 2019, 2020 and 202

24. Can a supplier’s proposal be rejected based on the pricing offered pertaining to the 4 option periods considering the language included in the RFP sub-section Rejection of Unrealistic Offers in the RFP? Specifically, that offers can be rejected that are deemed “unrealistically high or low cost/price when compared to Government estimates”.

Answer: The Government reserves the right to reject any proposal that is determined to be unrealistic based on program commitments, including contract terms and conditions, or unrealistically high or low in cost/price when compared to Government estimates.

25. Please explain/clarify the meaning of the term “socio-economic status” referred to on page 5, section 20, of the RFP, “Factors such as (but not limited to price, past performance on prior task orders issued outside and under this BPA (quality of deliverables/services/timeliness, and cost control) socio-economic status …”.

Answer: The term socio-economic status has been removed from the solicitation.

26. On page 7, section 23, it states that “Any stock material acquired under previous RUTF/RUSF specifications (CID and CRD) can be used with waiver and with corresponding FFP written approval in a case by case basis provided that the purchase of such material was done before the awarding of this BPA.”

If at this time, a supplier has not completed validation of the single micronutrient blend is it reasonable for the supplier to expect a USAID waiver and FFP written approval to use up any stock material purchased prior to award of this BPA?

Answer: If justification exists that old raw material stock could not be exhausted because of low production activity, and its impact in validating single RUF specification, such stocks can be used with a corresponding waiver.

27. What is the planned award date of this BPA?

Answer: December 2016

28. Included in the USAID Commodity Specification for RUF dated 12/21/15 in section 3, it is stated that “The paste shall not show evidence of oil separation…”

And in Section 9 it indicates, “Since RUF has high lipid content, and there might be a slight oil separation, gentle kneading of the pouches is recommended prior to opening.

Kneading of the RUTF and RUSF pouches was always required and reference to kneading the pouch prior to use is illustrated on the pouch.

Is RUF evaluated for oil separation, texture, etc, prior to or after kneading the pouch?

Answer: The first instance (no oil separation) is referring to product at manufacturing site (production) while the second reference is made at consumption point.

29. How often will audits be required during the period 1/1/2017-12/31/21

Answer: Prior to any award of Purchase Order, suppliers should have demonstrated sound quality and food safety programs, through written quality programs and a letter expressing their commitment to the highest quality and food safety standards through the provision of appropriate supplier’s Certificate of Analysis (CoAs). The USG usually carries out comprehensive audits annually, as well as unannounced routine inspections. Suppliers are expected to have and use a system for ensuring release and delivery of conforming product.

30. Is the contracting officer exclusively responsible for awards made in connection with calls issued under a BPA?

Answer: Refer to the Federal Acquisition Regulation, including but not limited to part 1.602 (Contracting officers) and part 2.101 (Definitions) to better understand the responsibility of Contracting Officers in the US government.

31. Should we present our findings that using a single micro nutrient blend in the production of both RUTF and RUSF actually increases the cost of RUF.

Answer: USAID’s requirement of single micro nutrient remains unchanged.

32. Will any preference be offered to suppliers who meet the definitions of: a women owned business, small business, manufacturer located in a Hub-zone, or is the BPA unrestricted?

Answer: This solicitation is unrestricted. Full and Open competition

33. Is there a particular format/form for making a formal request to the contracting officer in connection with the BPA, calls issued in connection with the BPA, purchase orders issued in connection with the BPA?

Answer: There is no specific format/form for making a formal request to the contracting officer in connection with the BPA, calls issued in connection with the BPA, purchase orders issued in connection with the BPA

34. Does the contracting officer report to any agency, department, or superior? If so is there a flow chart, or contact list that can be provided?

Answer: Refer to the Federal Acquisition Regulation, including but not limited to part 1.602 (Contracting officers) and part 2.101 (Definitions) to better understand the responsibility of Contracting Officers in the US government.

35. In the solicitation on page 3 in the first paragraph it states that BPA holders must be able to perform all activities specified in the scope of work in support of USAID programs including storage of the RUTF /RUSF units so that they will be available for immediate delivery upon issuance of a written contract or order. Yet in section 2. On page 3 In bold print it states “This agreement does not require the contractor to produce and store commodities in anticipation for award.”

Please explain how a contractor would have goods for immediate delivery upon issuance of a written contract or order if the contractor did not produce and store commodities in anticipation of an award?

Answer: The sentence “including storage of the RUTF/RUSF units so that they will be available for immediate delivery upon issuance of a written contract or order” has been removed

Answer: Refer to the Federal Acquisition Regulation, including but not limited to part 1.602 (Contracting officers) and part 2.101 (Definitions) to better understand the responsibility of Contracting Officers in the US government.