2009 09 23 Columbus Industry Preproposal Conference.ppt

Defense Energy Support Center Columbus AFB, Mississippi Industry Preproposal Conference Jim Shillingford Sept 23, 2009

Overview

Purpose of the RFP Privatize the Electric, Water, and Wastewater Utility Systems at Columbus Air Force Base, Mississippi

Notes:

1. Purchase of the Commodity is not Included in the RFP

2. Selection of Contractor will be Based on Best-Value Determination

3. Government Privatizes if the Long Term Benefit Exceeds the Long Term Cost

4. Government Reserves the Right Not to Award the Contract

RFP Contents

Type of Contracts

The Government may award:

Type of Contracts (con’t)

Type of Contract (con’t)

Grouping

The Submittal

Note: For Hardcopy…Provide a Separate Binder for Each Volume for Each Utility System

The Four Volumes - Volume I -Technical Proposal Technical Proposal has 5 key elements:

Service Interruption/Contingency and Catastrophic Loss Plan Operations and Maintenance Plan/Quality Management Plan Initial System Deficiency Corrections and Initial Renewals and Replacements Plan Operational Transition Plan Financial Strength

The Four Volumes Volume II- Past Performance

Volume II- Past Performance (con’t)

Volume III- Contract Documentation

Volume III- Contract Documentation (con’t)

The Four Volumes Volume IV- Price Proposal Price Proposal consists of 4 sections:

Section 1 – Price Schedule B-1, B-2, B-3 or B-4 Section 2 – Price Proposal, Introduction & Pricing Assumptions Section 3 – Standard Estimating Methodology Section 4 – Cost Risk Assessment

The Four Volumes Volume IV- Price Proposal (con’t) Section 1 – Price Schedule B-1, B-2, B-3 or B-4

Price Schedule Data Sheet Common Mistakes:

Price Schedule Data Sheet 1 – Utility Service Charge (B.7.2)

Not Indicating Exactly How You Computed Your Operations and Maintenance Costs (Manpower, Materials, Transportation, Supplies, Etc)

Not Explaining How You Used the Price Data Shown in Schedule 2 to Mathematically Derive Your Monthly Charge for Renewals and Replacements

Price Schedule Data Sheet 2 (B.7.3)– Renewals & Replacements (50 yr schedule)

Not Including Each Inventory Line Item (Reference Table 1 of the Utility Specific Section J) in Schedule 2

Not Providing a Price for the Renewals & Replacements of Each Inventory Line Item in Each Year it is Replaced

Price Schedule Data Sheet 3 (B.7.4) – Initial System Deficiency Correction/Connection Charges/Transition Period

Not Including the Each Government Recognized System Deficiency (Reference Section J.X.11) that You Intend to Accomplish

Not Realizing Monthly Payments for a Specific Project will not Begin Until Specific Project is Complete and in Service

Price Schedule Data Sheet 4 (B.7.5) – Recoverable Portion of Purchase Price.

Not Realizing the Net Present Value of the Recoverable Portion of the Purchase cannot exceed the Net Present Value of the Purchase Price

Price Schedule Data Sheet 5 (B.7.6) – Proposal 50 yr Charges to Government

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 list of cost items (appearing in Section L.7.5 ) 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.

Section 2 – Price Proposal, Introduction and Pricing Assumptions

In this section the offeror discusses:

Section 2 – Price Proposal, Introduction and Pricing Assumptions

In this section the offeror :

Provides the breakdown of their proposed Utility Service 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

Section 3 – Standard Estimating Methodology

In this section the offeror:

Summarize it’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

In this section the offeror:

Submit a risk analysis that identifies price risk areas and the recommended management approach to mitigate/control the impact of those price risks on the overall success of the program.

The format of this analysis shall be IAW the format provided in Section L.7.5 of the solicitation.

Evaluation Process

(con’t) Technical Capability and Risk are further broken out into the following subfactors:

Technical Capability

Basis for Award Basis for Contract Award

IAW 10 U.S.C. 2688, award can only be made if the long-term economic benefits exceed the long-term costs.

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.

Basis for Award

If it is determined that the long-term economic benefits outweigh the long-term economic costs a BEST VALUE decision will be based upon the following evaluation criteria:

Technical Capability, Past Performance, and Risk are of approximately equal importance. Socioeconomic Plan is somewhat less important than Technical Capability, Past Performance and Risk. When combined, Technical Capability, Past Performance, Risk, and Socioeconomic Plan are significantly more important than Price. Technical Capability and Risk will be evaluated at the subfactor level. Under Technical Capability, Subfactors 1, 2, 3, 4, and 5 are of approximately equal importance. Under Risk, Subfactors 1, 2, 3, and 4 are of approximately equal importance.

Technical Library/Site Visits Contents of Library

Availability of Copies: Will be provided to all offerors that successfully complete the DD Fm 2345 certification process.

Contact Nikki Yarrington, 703-767-8456 to Schedule Library/Site Visits, if needed

Escort Requirements: Yes

Installation Access Requirements: Yes

Milestones

DESC Points of Contact

Nikki.Yarrington@dla.mil