2011-02-10 Amd 0006.pdf

NSN 7540-01-152-8070 30-105 STANDARD FORM 30

(REV. 10-83)PREVIOUS EDITION UNUSABLE Prescribed by GSA

FAR (48 CFR) 53.243

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

See Block 16C

4. REQUISITION/PURCHASE REQ. NO.

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE

DEFENSE ENERGY SUPPORT CENTER

SP0600 7. ADMINISTERED BY (If other than Item 6)

CODE

8725 JOHN J. KINGMAN ROAD, SUITE 3830

FT. BELVOIR, VA 22060-6222 FAX (703) 767-8506

John Hildreth/DLA Energy/EB/john.hildreth@dla.mil

PHONE (703) 767-9399 P.P. 8.2

8. NAME AND ADDRESS OF CONTRACTOR (NO., street,city,county,State,and ZIP Code)

X

9a. AMENDMENT OF SOLICITATION NO.

SP0600-09-R-0806

9b. DATED (SEE ITEM 11) 12 Feb 2009

10a. MODIFICATION OF CONTRACT/ORDER NO.

10b. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[ X ] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [] is extended, [X] is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning __1__ copies of the amendment;(b) By acknowledging receipt of this amendment on each copy of the offer submitted; or(c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A. I2.05 CHANGES-FIXED PRICE (AUG 87)

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: FAR 43.01 OTHER (Specify type of modification and authority) E. IMPORTANT: Contractor [ ] is not, [ x ] is required to sign this document and return __1__ copies to the issuing office.

13. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter w

See following pages

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME OF CONTRACTING OFFICER

Wanda M. Hanshaw

15B. NAME OF CONTRACTOR/OFFEROR

BY

(Signature of person authorized to sign)

15C.DATE

SIGNED

16B. UNITED STATES OF AMERICA

BY

(Signature of Contracting Officer)

16C.DATE SIGNED

February 10, 2011

SP0600-09-R-0806

Minot AFB, ND Amendment 0006

The purpose of Amendment 0006 to RFP SP0600-09-R-0806 is to update the following: a) Correct Block 3 of Standard Form 33 included in Amendment 0005 to read SP0600-09-R-0806;

b) Under Section B.2. Notices and Reservations, Section B.2.4.8. is deleted in its entirety and replaced with the most current version; c) Section B.4.3 Fixed Price Economic Price Adjustment Proposal Schedule B.3 is deleted in its entirety and replaced with the most current version; d) Section B.6.7 Economic Price Adjustments Index Methodology is deleted in its entirety and replaced with B.6.7 Service Charges for Schedules B-3: Fixed Price with Economic Price Adjustment; e) Section C.1 Precedence is deleted in its entirety and replaced with the most current version; f) Section C.6.2 Right of Access is deleted in its entirety and replaced with the most current version: g) Section J List of Attachments; is updated with the most current version;

h) Section L.4.5 SubFactor 5: Financial Strength is deleted in its entirety; i) Section L.6.2 Alternate Proposals and Exceptions to Terms and Conditions is deleted in its entirety and replaced with the most current version; Section L.7.5 Detailed Instructions for Price Proposal is deleted in its entirety and replaced with the most current version; Section M Evaluation Factors for Award is deleted in its entirety and replaced with the most current version.

Accordingly Solicitation SP0600-09-R-0806 is amended as follows:

1. Block 3 of Standard Form 33 included in Amendment 0005 is corrected to read SP0600-09-R- 0806.

2. Under Section B.2. Notices and Reservations, delete Section B.2.4.8 in its entirety and replace with the following:

B.2.4.8 Offerors are required to submit Technical Proposal, Price Proposal, Past Performance, and Contract Documentation as outlined in Section L of the solicitation. Offerors are also required to submit a fully completed SF 33. Offerors must acknowledge receipt and acceptance of all amendments to the solicitation. This may be done by both signing and returning the amendment immediately after issuance, or by written acknowledgment of receipt and acceptance as part of the proposal submission package. In accordance with Section L, any exceptions and assumptions must be stated with specificity and separately matrixed.

3. Section B.4.3 Fixed Price Economic Price Adjustment Proposal Schedule B.3 is deleted in its entirety and replaced with the following:

B.4.3 Fixed-Price Economic Price Adjustment Proposal

Amendment 0006

SCHEDULE B-3

Payment by the Government for Utility Services

MINOT AIR FORCE BASE, NORTH DAKOTA

Utility Systema

CLINS

SUPPLIES/SERVICES

MONTHLY SERVICE

CREDIT/CHARGE

Utility Services Charge (see B.6.1 and B.7.2) The Contractor shall provide utility services in accordance with Section C, Descriptions, Specifications, and Work Statement.

b

Monthly Credit as Payment for Purchase Price. (see B.6.2)

$______________ Monthly Credit

_______________ # of months

_______________ Interest Rate

TOTAL FOR CLIN 0001:

Initial System Deficiency Corrections / Connection Charges (See B.6.3 and B.7.4 (Schedule 3). This amount should not be included in the price offered for CLIN 0001.)

$ Varies

See Schedule 3

Recoverable Portion of Purchase Price (See B.6.4 and B.7.5 (Schedule 4). This amount should not be included in the price offered for CLIN 0001.)

$ Varies See Schedule 4

Transition Period (See B.6.5 and B.7.4 (Schedule 3). This amount should not be included in the price offered for CLIN 0001.)

See Schedule 3 a Utility system to be filled in by the Offeror. A B-2 must be completed for each utility system offered. Utility systems are shown in Schedule A paragraph B.3, Systems to be Privatized.

b The Offeror should enter the Utility Services Charge, as computed in Schedule 1 (see B.7.2). See B.6, Economic Price Adjustment Price Index Utility Privatization.

NOTE:

The Purchase Price, Recoverable Portion of the Purchase Price, interest rate and amortization period are proposed by the Offeror.

Amendment 0006

4. Section B.6.7 Economic Price Adjustments Index Methodology is deleted in its entirety and replaced with the following:

B.6.7 Service Charges for Schedules B-3: Fixed Price with Economic Price Adjustment B.6.7.1 CLIN 0001 – Utility Services Charge The Utility Services Charge is the fully built up monthly charge to the Government for provision of utility services, including operations and maintenance and renewals and replacements (Schedules 1-2) (see B.7.2 and B.7.3). Prices proposed for CLIN 0001 identified in Schedules 1-2 shall be based on expected price levels during the first year of operation. The effect of price inflation costs incurred in years subsequent to the first year of operation will be considered as part of the Economic Price Adjustment identified in B.6.1.1, Economic Price Adjustment – Price Index Utility Privatization.

B.6.7.2 ECONOMIC PRICE ADJUSTMENT – PRICE INDEX UTILITY PRIVATIZATION

(DESC B.19.40 OCT 2003)

(a) The Contractor warrants that the contract prices do not include any amounts to protect against increases covered by this clause.

(b) DEFINITIONS. As used herein,—

(1) Base price means the price for the Utility Services Charge under CLIN 0001 as identified in the contract Schedule B-2. For the first Economic Price Adjustment, the Base price shall be the original awarded Utility Services Charge. For subsequent annual Economic Price Adjustments, the Base Price for each Adjustment shall be the Utility Services Charge in effect immediately prior to that adjustment.

(2) Index means the Consumer Price Index for all Urban Consumers (CPI-U) reported in the publication, “Consumer Price Index – CPI,” published by the U.S.

Department of Labor, Bureau of Labor Statistics Midwest urban; CUUR0200SA0, CUUS0200SA0 (CONSUMER PRICE INDEX – ALL

URBAN CONSUMERS; ALL ITEMS; NOT SEASONALLY ADJUSTED),

A region map can be viewed at http://www.census.gov/geo/www/us_regdiv.pdf]

(3) Base index is the CPI-U annual Regional Average Index for [USER NOTE: Insert the index selected for (b)(2) above] as follows:

(i) For the first Economic Price Adjustment, for calendar year ______.

[NOTE: This will be filled in at contract award to reflect the last full calendar year for which the index is/will be available at the time that final proposal revisions were due.]

(ii) For subsequent annual Economic Price Adjustments, the Base Index shall be the “Current Price Index” utilized in calculating the immediately preceding Economic Price Adjustment.

(4) Current price index is the CPI-U annual Regional Average Index for [USER NOTE: Insert the index selected for (b)(2) above] for the last full calendar year immediately preceding the year in which the annual adjustment occurs, with adjustments effective on the anniversary of the Contract Start Date.

(5) Adjustment amount shall be the product of the rate of change from the base index to the current index, multiplied by 100 percent of the base price.

(6) Adjusted price means the sum, rounded to two decimal places, of the base price plus the instant adjustment amount.

(c) It is hereby agreed that—

(1) The prices payable under this contract shall be subject to a prospective annual adjustment, which will be accomplished promptly following publication of the applicable index.

http://www.census.gov/geo/www/us_regdiv.pdf�

Amendment 0006

(2) Adjustments to the base price shall be determined by calculating the percentage of change from the base index, as stated in paragraph (b)(3) of this clause, to the current price index, as defined in paragraph (b)(4) of this clause. Adjustments to the base price shall not be compounded.

(3) Adjustment calculations under this clause are exemplified below.

Assume:

Index Northeast urban; CUUS0100SA0, CUUR0100SA0 (CONSUMER PRICE INDEX –

ALL URBAN CONSUMERS; ALL ITEMS;

NOT SEASONALLY ADJUSTED)

Base Price $10,000 per month Current Index 229.306 (2008 Annual) Base Index 220.512 (2007 Annual)

Calculate rate of change ((current index – base index) ÷ base index) from the index:

((229.306 - 220.512) ÷ 220.512) = .0398 or 3.98%

Calculate the adjustment amount (index rate of change x base price):

.0398 X $10,000 = $398.00

Calculate the adjusted price (base price plus adjustment amount):

$10,000 + $398 = $10,398.00 per month

(d) The Contracting Officer shall obtain the current Price Index and calculate the adjusted price.

(e) Adjustments pursuant to this clause shall be made by contract modification showing the calculation of the adjusted contract unit price and specifying its effective date.

(f) No adjustments shall be made unless the total change in the contract amount for the Utility Services Charge exceeds $500.00.

(g) Notwithstanding any other provisions of this clause, no increase(s) in a contract unit price applicable to any annual period of contract performance shall cumulatively exceed the base price for such item by more than 10.00% (ten percent) of the base price for such item.

There shall be no percentage limit on downward adjustments under this clause.

(h) In the event--

(1) Any applicable index is discontinued or its method of derivation is altered substantially; or

(2) The Contracting Officer determines that an index consistently and substantially fails to reflect market conditions --the parties shall agree upon an appropriate substitute index and the Contracting Officer shall modify the contract to specify use of such substitute index for determining price adjustments hereunder. The contract shall be modified to reflect such substitute index, effective on the date the index specified in the contract begins to consistently and substantially fail to reflect market conditions. Failure to agree on an appropriate substitute or adjustment shall constitute a dispute under the DISPUTES clause of this contract.

(i) The Contractor shall include a statement on the final invoice that amounts invoiced under this contract reflect all applicable decreases required by the clause

(DESC 52.216-9F54)

Amendment 0006 B.6.7.3 Economic Price Adjustment Alternate Index Methodology If Offerors propose an alternate index or indices to Section B.6, Economic Price Adjustment Price Index Utility Privatization, Offerors shall specify (insert) the Government published index or indices they propose as a price adjustment mechanism in B.6.1.1, subparagraph (b)(2), (3), and (4) and provide the revised B.6.1.1 clause in full text. Offerors shall explain why the index proposed was selected, comprehensively describe the working of the price adjustment mechanism including the timing of adjustments and the composition of the base, and provide a sample calculation under B.6.1.1 (c)(3).

5. Section C.1 Precedence is deleted in its entirety and replaced with the following:

C.1 Precedence In accordance with FAR 52.215-8, any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order: (a) The Schedule (excluding the specifications) and any Preamble; (b) Representations and other instructions; (c) Contract clauses appearing in the solicitation or contract; (d) Contract clauses incorporated by reference; (e) Other documents, exhibits, and attachments; and (f) The specifications. Additionally, the terms and conditions of Sections A through K, including the Section J Attachments, shall take precedence over any inconsistent provisions contained within portions of the Contractor’s proposal incorporated in or made Exhibits to the Contract. Exceptions not specifically identified by the Contractor in their proposal in accordance with the requirements of Section L of the solicitation and expressly accepted by the Contracting Officer in writing shall not be deemed to be part of the Contract and shall not be binding on the Government.

6. Section C.6.2 Right of Access is deleted in its entirety and replaced with the following:

C.6.2 Right of Access This Installation is an operating military installation that is closed to the public and is subject to the provisions of the Internal Security Act of 1950, 50 U.S.C. § 797, and of 18 U.S.C. § 1382. Access to the Installation is subject to the control of its Installation Commander and is governed by such regulations and orders as have been lawfully promulgated or approved by the Secretary of Defense or by any designated military commander. Any access granted to the Contractor, its officers, employees, Contractors of any tier, agents, and invitees is subject to such regulations and orders. This Right of Access is subject to all regulations and orders currently promulgated or which may be promulgated by lawful authority as well as all other conditions contained herein. Such regulations and orders may, by way of example and not by way of limitation, include restrictions on who may enter, how many may enter at any one time, when they may enter, and what areas of the Installation they may visit, as well as requirements for background investigations, including those for security clearances, of those entering.

The Contractor is responsible for the actions of its officers, employees, Contractors of any tier, agents, and invitees while on the Installation and acting under this Right-of-Access.

In the event all or any portion of the Premises shall be needed by the United States or in the event the presence of the Contractor’s property shall be considered detrimental to governmental activities, the Contractor shall, from time-to-time and upon notice to do so, and as often as so notified, remove or relocate its property to such other location or locations on the Premises as may be required by the contracting officer or authorized representative, and in the event the Contractor’s property shall not be removed or relocated within ninety (90) days after any aforesaid notice, the Government may cause the same to be done. Any removal or relocation of the Contractor’s property at the direction of the Government under this Section shall be at the Government’s expense.

Amendment 0006 The Contractor further recognizes that the operation, construction, installation, repair, and maintenance of the utility system on the Installation may be subject to requirements and approvals not ordinarily imposed by civilian authorities, including, but not limited to, compliance with the National Environmental Policy Act of 1969, as implemented. The Contractor agrees to abide by all applicable regulations.

The Contractor shall neither transfer nor assign this Right of Access nor any interests or rights there under without the prior written consent of the Government. No transfer or assignment of the Contractor’s rights or interests under this Right of Access shall occur except in connection with the Government’s recognition of a successor in interest to this contract under FAR Subpart 42.14.

C.6.2.1 Condition of the Premises The Contractor is granted access to the Premises in an “as is, where is” condition without any warranty, representation by the Government concerning the condition of the Premises, or obligation on the part of the Government to make any alterations, repairs, improvements, or corrections to defects whether patent or latent. At such times and for such part of the Premises as the Installation Commander may determine, the Government and the Contractor, hereinafter referred to as the “Parties,” will prepare and sign a Physical Condition Report to reflect the condition of the Premises prior to the Premises being disturbed by the activities of the Contractor. Such Report shall be used by the Government upon the expiration or termination of this Contract to determine whether the Contractor has fulfilled its obligations to maintain and restore the Premises to the condition required by this Right-of-Access.

C.6.2.2 Alteration of Premises If the Contractor’s property located on the Premises intrudes into airspace subject to regulation under the Federal Aviation Regulations or their Air Force counterparts, such property shall be operated, constructed, installed, repaired, and maintained in conformance with such regulations.

C.6.2.3 Government Access Nothing in the Contractor’s Right-of-Access shall be interpreted as interfering with or otherwise limiting the right of the Government and its duly authorized officers, employees, Contractors of any tier, agents, and invitees to enter upon the Premises for any lawful purpose.

C.6.2.4 Other Grants of Access This Right-of-Access is subject to all outstanding easements, rights-of-way, leases, permits, licenses, and uses for any purpose with respect to the Premises. The Government shall have the right to grant additional easements, rights-of-way, leases, permits, and licenses, and make additional uses with respect to the Premises. Provided however, that the Government shall not grant any such additional easements, rights-of-way, leases, permits, licenses, or uses which will, as determined in the sole discretion of the Government, unreasonably interfere with the Contractor's use of the Premises under this Right-of-Access.

C.6.2.5 Restoration of Premises On or before the date of expiration or termination of this Contract, the Contractor shall vacate the Premises, remove all of its equipment, fixtures, structure, property and improvements of whatever nature from the Premises and restore the Premises to a condition satisfactory to the Installation Commander without additional expense to the United States Government. Such restoration shall include, if applicable, removal of contamination caused by the Contractor. The Contractor may, upon receipt of the prior

Amendment 0006 written consent of the Government, which consent shall not be unreasonably withheld by the Government, abandon in place any buried conduits, pipes, duct banks, tubes, or wires (Underground Abandoned Utilities), provided that (i) the nature, location, and depth of such Underground Abandoned Utilities are known to the Contractor and shown on the Contractor’s records, and (ii) the Underground Abandoned Utilities neither contain any environmental contaminant nor pose an environmental or safety hazard.

The Contractor may also, upon receipt of the prior written consent of the Government, which consent shall be granted in the Government’s sole discretion, abandon in place all or part of any of the Contractor’s other above grade or below grade equipment, fixtures, structures, property and improvements (Other Abandoned Utilities). In the event of a dispute between the Contractor and the Government over whether certain of the Contractor’s equipment, fixtures, structures, property and improvements should be characterized as Underground Abandoned Utilities or Other Abandoned Utilities, such equipment, fixtures, structures, property and improvements shall be deemed to be Other Abandoned Utilities for purposes of this Contract.

C.6.2.6 Liability for Damages Any interference with the use of or damage to any real or personal property under the control of the Government incident to the exercise of the rights and privileges granted to the Contractor under this Right of Access shall be promptly corrected by the Contractor to the satisfaction of the Installation Commander.

If the Contractor fails to promptly repair or replace any damaged property after being notified to do so by the Installation Commander, the Government may repair or replace such property and the Contractor shall be liable to the Government for the costs of such repair or replacement.

C.6.2.7 Fire Protection

C.6.2.7.1 The Contractor shall enter into a Memorandum of Understanding (MOU) with the Base Fire Department for fire protection of all facilities included in the purchase of the utility system. The MOU shall be completed during the transition period and a copy provided to the Contracting Officer.

C.6.2.7.2 The Contractor shall abide by Base fire protection requirements. The utility system purchased by the Contractor includes facilities. These facilities may or may not include fire alarm systems. Where required by federal, state, or local regulation, the Contractor shall maintain in the fire alarm system for all facilities owned and operated by the Contractor. The Contractor shall permit Fire Department personnel access to their facilities to perform fire inspections and emergency response.

Amendment 0006

7. Section J-List of Attachments make the following changes.

a. Delete Table J.1.1 in its entirety and replace with the following:

TABLE J.1-1

Installation- and Utility-Specific Attachments to RFP

RFP Attachment

Installation

Utility System

JA1 Minot AFB, North Dakota

Electric Distribution

JA3 Minot AFB, North Dakota

Water Distribution

JA4 Minot AFB, North Dakota

Wastewater Distribution

b. Delete Attachment J45 Legislative Authority in its entirety and replace with revised Attachment JA45 Legislative Authority (10 USC § 2688).

c. Re-number the following Section J Attachments:

Attachment J38 – Federal Equivalents is renumbered as JA38 – Federal Equivalents;

Attachment J39 – Past Performance Information is renumbered as JA39 – Past Performance Information;

Attachment J40 – Example of FP-PPR is renumbered as JA40 - Example of FP-PPR;

Attachment J41- Subcontracting Plan is renumbered as JA41- Subcontracting Plan;

Attachment J42 – Bill of Sale is renumbered as JA42 – Bill of Sale;

Attachment J43-1 Electric System Training Requirements is renumbered as JA43-1 - Electric System Training Requirements;

Attachments J43-3 Water System Training Requirement is renumbered as JA43-3 - Water System Training Requirement;

Attachment J43-4 Wastewater System Training Requirements is renumbered as JA43-4 - Wastewater System Training Requirements;

Attachment J44- Wage Determination is renumbered as JA44 - Wage Determination.

8. Under Section L.4, delete Subfactor 5: Financial Strength in its entirety.

Offerors are advised that financial capability will be addressed as part of the Government’s responsibility determination in accordance with FAR Part 9.

9. Section L.4.5 Subfactor 5: Financial Strength is deleted in its entirety.

Amendment 0006

10. Section L.6.2 Alternate Proposals and Exceptions to Terms and Conditions is deleted in its entirety and replaced with the following:

L.6.2 Alternate Proposals and Exceptions to Terms and Conditions The Government encourages the submission of alternate proposals, which add value when compared with the requirements in the RFP. If submitting an alternate proposal, provide a rationale explaining the advantages of the alternate proposal to the Government.

In addition, exceptions may be taken to individual terms and conditions of the RFP. Exceptions taken to individual terms and conditions of the RFP shall be clearly identified. Each exception shall be specifically related to each paragraph and/or specific part of the RFP to which the exception is taken.

Provide a rationale in support of the exception, explaining its effect in comparison with the original requirements of the RFP. This information shall be provided in the format and content of the table below.

Unless included in this volume in the required format, no exceptions to terms and conditions will be assumed and any resultant contract will incorporate the terms and conditions of the RFP.

RFP Exceptions

RFP Document

Paragraph/Page

Requirement/Portion

Rationale

SOW, RFP Model Contract, etc.

Applicable page and paragraph numbers

Identify the requirement or portion to which exception is taken

Justify why the requirement will not be met or discuss reasons why not meeting the Government’s terms and conditions might be advantageous to the Government

11. Section L.7.5 Detailed Instructions for Price Proposal is deleted in its entirety and replaced with the following:

L.7.5 Detailed Instructions for Price Proposal Table of Contents The Table of Contents shall specify, by page number, the location of information requested in these instructions.

Section 1 – Price Schedule B-1 or B-2

• Include a completed copy of the Price Schedule B-1 or B-2 as appropriate and in accordance with Section B.

• Include completed copies of Price Schedule Data Sheets (1, 2, 3, 4, and 5) as appropriate and in accordance with Section B.

Schedule 5

Provide a 50-year statement of proposed billings to the government in constant (real) dollars. At a minimum, Schedule 5 should include the following cost items on an annual basis for each of the 50 years. If a shorter contract period is proposed, the schedule need only address the number of years proposed for the contract.

System Purchase Price Credit System Purchase Price Recovery Operations and Maintenance Expense – Schedule 1 General and Administrative Expense – Schedule 1 Renewals and Replacement Expense – Schedule 1 Initial System Deficiency Correction Costs – Schedule 3 Transition Period Costs – Schedule 3 Other costs and/or credits proposed by Offeror – from applicable Schedule Non-Federal Taxes and Fees – Schedule 1 Federal Tax – Schedule 1 Total Annual Payment by the Government

All values shown on Schedule 5 should be documented in the Offeror’s Proposal and the derivation of same should be provided in the Offeror’s Pricing Proposal and supporting documentation. It is preferred that documentation for Schedule 5 be provided in Microsoft Excel format with internal workbook logic intact. Such documentation should not require links to documents not provided as part of the Offeror’s Proposal.

• Include completed copy of Section C.11.3.3 identifying inspection charge rates, if any.

• Include request and justification for Deviation from Contract Cost Principles pursuant to the DoD Class Deviation signed August 13, 2007, if any.

Section 2 - Price Proposal, Introduction, and Pricing Assumptions

• The Offeror shall provide the breakdown of their proposed Utility Services Charge or Applicable Tariff Charge proposed in the appropriate Schedule B. In particular the Offeror shall differentiate between the operation and maintenance costs and renewals and replacements. This information shall be provided in a separate Schedule 1 for each utility system included in the proposal.

• The discussion of pricing methodology must explicitly show the Offeror’s calculation of each CLIN.

• If wastewater treatment facilities are being conveyed, Offerors submitting a wastewater proposal shall comply with the requirements set forth in Section JA4.1.13. Wastewater proposals must clearly state whether the Offeror proposes to own and operate the Wastewater Treatment Plant (WWTP) as either a Federally Owned Treatment Works (FOTW), a Publicly Owned Treatment Works (POTW), or a privately owned treatment works. Offerors proposing to own the WWTP as a privately owned treatment works must address the factors set forth in Section JA4.1.13. Offerors are advised that in order to maintain the applicability of the domestic sewage exclusion (DSE), the Government prefers to convey the WWTP to an entity that will operate it as a POTW. Section JA4.1.13 also provides for submission of alternative proposals to address these environmental concerns.

• Assumptions regarding price inflation in the first two years of operation and their effect on cost of service for each CLIN must be explicitly described.

• All assumptions, scope limitations, and/or price proposal “qualifiers” shall be addressed and explained for each CLIN. Assumptions are requested and will be considered by the Government solely for evaluation purposes. Unless identified as an assumption in the Assumptions matrix below and expressly accepted by the Contracting Officer, Amendment 0006 assumptions will not be deemed to be a part of any resulting contract and will not form the basis for any pricing adjustments.

Pricing Assumptions

Document

Paragraph/Page/

CLIN

Assumption

Rationale & Effect

Pricing Proposal, Technical Proposal, etc.

Applicable page and paragraph numbers within the referenced document

State the Assumption and the pricing/work to which it applies.

Justify why the Assumption is necessary and what effect the Assumption will have on current and/or future pricing.

• Offerors shall discuss and quantify to the extent practicable other possible long-term costs and benefits to the United States, if the conveyance affects separate contract relationships, particularly for commodities. To the extent long-term costs and benefits require the cooperation of a third party (e.g., an upstream utility that owns the exclusive physical means to deliver electrical energy, natural gas or water supplies to an installation), the Offeror shall discuss their proposed methodology for cooperation and provide copies of any written agreements or representations.

Section 3 - Standard Estimating Methodology Summarize Offeror’s standard estimating system as it pertains to this acquisition. For Offerors proposing Cost Accounting Standards (CAS) compliant accounting systems as a Uniform System of Accounts (USOA): state whether or not your Disclosure Statement has been determined adequate by the cognizant Government ACO. If determined adequate, provide date of approval. Identify any outstanding CAS violations; provide status/action being taken. If exempted from submitting a CAS Disclosure Statement so state, and identify the reason for the exemption.

Section 4 - Cost Risk Assessment Submit a risk analysis that identifies cost risk areas and the recommended management approach to mitigate/control the impact of those cost risks on the overall success of the program. Use the sample format below:

Cost Risk Area

Mitigation

Explain the cost risk element

Explain plans to mitigate

12. Section M Evaluation Factors for Award is deleted in its entirety and replaced with the following:

SECTION M

Evaluation Factors for Award

M.1 Basis for Contract Award In accordance with 10 U.S.C. §2688, utility privatization award can only be made if (1) the long-term economic benefit of the conveyance to the United States exceeds the long-term economic cost of the conveyance to the United States, and (2) the conveyance will reduce the long-term costs of the United States for utility services provided by the utility system concerned. These criteria must be met for each separate utility system.

A contract will be awarded to the Offeror who is deemed responsible in accordance with FAR 9.1, whose proposal meets the criteria described in the above paragraph, and whose proposal is determined to represent the best value to the Government based on the evaluation factors listed below. The lowest priced proposal may not necessarily receive the award; likewise, the highest rated technical proposal may not necessarily receive the award.

M.2 Evaluation Factors and Subfactors The four evaluation factors are Technical Capability, Past Performance, Risk, Socioeconomic Plan and Price. The evaluation factors and subfactors are as follows:

Factor 1: Technical Capability: The four subfactors are approximately equal to each other in terms of importance.

Subfactor 1

: Service Interruption/Contingency and Catastrophic Loss Plan: Will be evaluated for the degree to which it ensures an appropriate, efficient and effective response to service interruptions and contingencies and catastrophic system losses.

Subfactor 2

: Operations and Maintenance Plan/Quality Management Plan: Will be evaluated for the degree to which it ensures appropriate, efficient and effective operation and maintenance of the utility system(s) and a superior level of quality.

Subfactor 3

: Initial System Deficiency Corrections/Upgrades/Connections and Renewals and Replacements Plan: Will be evaluated for the degree to which it supports the long-term ability of the utility system(s) to provide utility service(s).

Subfactor 4: Operational Transition Plan: Will be evaluated for the degree to which it will ensure an effective and efficient transition.

Factor 2: Past Performance: Will be evaluated based on the degree to which current and previous (within the past 5 years) contract efforts indicate the probability of the Offeror successfully accomplishing

Amendment 0006 contract requirements throughout the performance period. The currency and relevancy of the information, source of the information, context of the data, and general trends in Offeror’s performance will be considered.

In the case of an Offeror without a record of relevant past performance or for whom information on past performance is not available, the Offeror will not be evaluated favorably or unfavorably on past performance. However, a higher rating may be achieved if the Offeror proposes management personnel who have a successful record of performance on relevant and recent contracts, or if a proposed subcontractor (who will be performing a significant portion of the work) has a "very good" or better performance history on relevant and recent contracts.

Offerors are advised that the Government may use information gained from any source known to the Government to evaluate past performance, provided such information is recent (within the past 5 years).

However, the Government reserves the right to only consider the Contractor’s performance under Government or DLA Energy contracts. If any past performance information provided by the Contractor is utilized in evaluating the Offeror’s proposal, a past performance questionnaire will be utilized to contact references and rate proposals.

Factor 3: Risk: Will be evaluated using the following Subfactors, which are approximately equal in importance to each other.

Subfactor 1:

Performance: Proposals will be evaluated on the degree to which award of a contract would present a risk of degradation of the quality of utility service(s).

Subfactor 2

: Assurance of Long-term Price and Service Stability: Proposals will be evaluated on the degree to which long-term price and service stability are enhanced as a result of regulation by an independent federal, state or local regulatory authority with jurisdiction over the applicable utility service.

Subfactor 3

: Cost Realism: A cost realism analysis will be performed in accordance with FAR 15.404-1(d)(3). Realism will be based on an evaluation of the information provided in support of the offered price to determine if the prices reflect a clear understanding of the requirements; are consistent with the various elements of the offer’s technical proposal; are not unbalanced; and are neither excessive nor insufficient for the effort to be accomplished. Reasonableness will be determined based on prices submitted by the competition, current market conditions, and comparison to the Government estimate, as appropriate.

Subfactor 4: Other possible long-term costs and benefits to the United States may be considered, especially if the conveyance affects separate contract relationships, particularly for commodities.

Factor 4: Socioeconomic Plan: Will be evaluated based on the degree to which an Offeror's proposal demonstrates the commitment to use, in performance of the offered requirements, Small Businesses (which include Small Businesses, Small Disadvantaged Businesses, HUBZone Small Businesses, Women-owned Small businesses, and Veteran-owned small businesses) and/or Historically Black Colleges/Universities or Minority Institutions (HBCUs/MIs).

NOTE: The Offeror’s proposal for socioeconomic support will be made a part of any resulting contract for use in determining how well the Contractor has adhered to its socioeconomic plan.

Amendment 0006 Factor 5: Price: The total evaluated price will be a consideration in the final source-selection decision.

For Price Schedule B-1, the total evaluated price (Price Schedule and Price Schedule Data Sheets, as applicable) will be the net present value of the stream of monthly payments the Government is expected to make to the Contractor over the 50-year contract period. Each monthly payment will be calculated by crediting the total monthly payment (the Applicable Tariffs including capital ISDCs/connection charge(s) and initial renewals and replacements and the recoverable portion of the purchase price expressed in the price proposal) by the purchase price CLIN 0001. Present values will be calculated using the discount rate specified in Appendix C of OMB Circular A-94 (current issue at the time proposals are due).

For Price Schedules B-2, B-3, and B-4, the total evaluated price (Price Schedules and Price Schedule Data Sheets, as applicable) will be the net present value of the stream of monthly payments the Government is expected to make to the Contractor over the 50-year contract period. Each monthly payment will be calculated by crediting the total monthly payment (the Utility Service Charge including applicable ISDCs and initial renewals and replacements and the recoverable portion of the purchase price) by the purchase price CLIN 0001. Present values will be calculated using the discount rate specified in Appendix C of OMB Circular A-94 (current issue at the time proposals are due).

M.2.1 Order of Importance for Evaluating Factors and Subfactors:

In accordance with 10 U.S.C. § 2688, authority to privatize a utility system is subject to the action being in the long-term economic interest of the United States Government. That is, the long-term economic benefits must outweigh the long-term economic costs for conveyance to occur (Section M, Comparison of Offered Prices with the Government Should-Cost Estimates). Before a best-value decision can be made, Offerors must comply with the basic economic test of 10 U.S.C. § 2688. Based on this result, the following factors and subfactors will then be evaluated.

Technical Capability, Past Performance, and Risk are of approximately equal importance.

Socioeconomic Commitment is somewhat less important than Technical Capability Past Performance and Risk. When combined Technical Capability Past Performance, Risk, and Socioeconomic Commitment are significantly more important than price. Technical Capability and Risk will be evaluated at the subfactor level. Under Technical Capability, Subfactor 1, 2, 3 and 4 are of approximately equal importance. Under Risk, Subfactors 1, 2, 3, and 4 are approximately equal importance.

M.3 Comparison of Offered Prices with the Government Should- Cost Estimate In accordance with 10 U.S.C. § 2688, authority to privatize a utility system is subject to the action being in the long-term economic interest of the Government. To determine whether that criterion is met, the Government will use the Schedule 5 for evaluation and economic analysis with federal taxes accounted for to develop a projected 50-year cash flow. Present values will be calculated at the discount rate specified in Appendix C of the Office of Management and Budget (OMB) Circular A-94 that is current at the time proposals requested herein are due.

The economic analyses conducted will be done in accordance with OMB Circular A-94, Department of Defense Instruction 7041.3, and DEPSECDEF Guidance on Utilities Privatization dated October 9, 2002.

Amendment 0006

13. Revised RFP provisions described in Item 7 a. and b. above are attached.

14. All other terms and conditions shall remain unchanged and in full force and effect.

B.6.7.3 Economic Price Adjustment Alternate Index Methodology