SPE30019R0076 0002 Complete Amendment.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO.

See Block 14

4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

6. ISSUED BY CODE SPE300 7. ADMINISTERED BY (If other than Item 6) CODE

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

CODE FACILITY CODE

SPE30019R0076

X

2020 MAR 30

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

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

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.

1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

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:

12. ACCOUNTING AND APPROPRIATION DATA (If required)

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.

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).X

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

E. IMPORTANT: Contractor is not, X is required to sign this document and return 1 copies to issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

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

NSN 7540-01-152-8070

Previous edition unusable

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

16B. UNITED STATES OF AMERICA15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

(a) By completing Items 8 and 15, and returning

DLA TROOP SUPPORT

DIRECTORATE OF SUBSISTENCE

700 ROBBINS AVENUE

PHILADELPHIA PA 19111-5096

15C. DATE SIGNED 16C. DATE SIGNED

D. OTHER (Specify type of modification and authority)

3. EFFECTIVE DATE

See Attached Continuation Sheet(s).

(X)

CHECK ONE

9A. AMENDMENT OF SOLICITATION NO.

9B. DATED (SEE ITEM 11)

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

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

CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED:

CONTINUED ON NEXT PAGE

PAGE 2 OF 3 PAGES

SPE30019R0076 - 0002

SUPPLIES/SERVICES:

MFR. CAGE: 3RFQ3 P/N: SEESOW

ITEM DESCRIPTION:

CAGE/PN: 3RFQ3 / SEESOW

PUBLIC RFQ HQ DLA PROCUREMENT

SYSTEMS

CAMERON STATION

ALEXANDRIA VA 22304-6100

USA

Phone: (703)274-786

NO EXCEPTION DATA

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT .

0001 CAGE/PN: 3RFQ3 1.000 EA $ ________________ $ ________________

SEESOW

Institutional Feeding Div-Philadelphia

PRICING TERMS: Firm Fixed Price

QTY VARIANCE: PLUS 0% MINUS 0%

Destination

PREP FOR DELIVERY:

PKGING DATA-QUP:001

SHALL BE PACKAGED STANDARD IN ACCORDANCE WITH ASTM D 3951.

All DLA Master List of Technical and Quality Requirements take precedence over ASTM D3951.

Mark and label all packaging and packing in accordance with MIL-STD-129.

The Unit of Issue (U/I) and Quantity per Unit Pack (QUP) will be as specified in the contract/purchase order.

PARCEL POST ADDRESS:

FOR TRANSPORTATION SEE DLAD DLAD PROC NOTE C19. FOR FIRST DESTINATION TRANSPORTATION SEE DLAD PROC NOTE C20 AND

CONTRACT

FREIGHT SHIPPING ADDRESS:

GOVT USE

External External External Customer RDD/ ITEM PR PRLI PR PRLI Material Need Ship Date .

0001 1000080997 0001 N/A N/A N/A N/A

CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED: PAGE 3 OF 3 PAGES

SPE30019R0076 - 0002

Attachments

List of Attachments

File Name Description ATTACH_Market_Basket_

SPV Korea Market Basket

R0076 00 ATTACH_Statement_of_W ork_0002 SPV Korea SOW 0002

FINAL.pdf ATTACH_Amendment_000

SPV Korea SPE300-19-

R-0076-0002

SPE300-19-R-0076 Amendment 0002 Subsistence Prime Vendor Korea

This amendment contains four sections.

Section I contains revisions (adds/changes/deletions) to the solicitation requirements.

Section II contains revisions (adds/changes/deletions) to the solicitation Attachment 1, Statement of Work (SOW) requirements.

Section III contains revisions (adds/changes/deletions) to the solicitation Attachment II, Market Basket spreadsheet.

Section IV provides answers to questions which were submitted in reference to the solicitation.

Section V contains DLA Internet Bid Boards System (DIBBS) proposal instructions.

NOTE: The answers in Section IV are provided for clarification purposes only and do not change the solicitation requirements. In the event of any discrepancy between the answers provided in Section IV and the solicitation documents, the solicitation documents will take precedence.

Section I – Solicitation Revisions

1. On page 38, insert the following clauses by reference:

CLAUSE NUMBER TITLE/DATE

FAR 52.223-03 Hazardous Material Identification and

Material Safety Data (FAR) DFARS 252.223.7001 Hazard Warning Labels(DFAR)

Section II – Statement of Work Revisions

1. On page 1 of Attachment, Statement of Work, revise the second paragraph as follows:

All offers are required to be uploaded to the DLA Internet Bid Boards System (DIBBS).

Please visit the DIBBS website to submit your proposal: https://www.dibbs.bsm.dla.mil .

2. On page 72 of Attachment, Statement of Work, revise the second bulleted paragraph as follows:

Once the new Prime Vendor and the incumbent Prime Vendor have agreed upon the products that will be purchased, the new Prime Vendor shall pick-up those products from the incumbent Prime Vendor’s primary warehouse facility for inspection and acceptance.

https://www.dibbs.bsm.dla.mil/

3. On page 110 of Attachment, Statement of Work, revise paragraph ii. as follows:

The warehouse facilities must have sufficient lighting, an adequate number of cameras located inside and outside for complete surveillance, security fences and locking devices. The warehouse facility must have a security system that alerts management of a breach of entry.

Section III – Market Basket Revisions

1. Line item 34 is replaced as follows:

890501E626240 HAM, W/NAT JUICES, BNLS, FZN, CURED & HARDWOOD

SMK, 4/6-12 LB EA, N#505

Section IV – Questions and Answers

Question #1: With the travel restrictions currently in place with COVID-19, would DLA consider an electronic submittal rather than a physical delivery?

DLA Response: Please see Section II, paragraph 1 of this amendment.

Question #2: Will smaller text size (less than 12pt font) be allowed for graphics and tables?

DLA Response: -All graphics must be clear and legible. All text in tables must adhere to the submission guidelines.

Question: Market Basket items #63 – Potato Red and #64 – Potato White are currently designated with distribution category 15 – CONUS FF&V LB. We understand potatoes are difficult to source locally in Korea, however, we want to ensure this is the proper designation (CONUS) for these items.

DLA Response: Yes, these items were correctly assigned to distribution category 15 CONUS

FF&V LB.

Question #3: In the Item Quote Sheet, Point A and Point B both request pricing. Point A refers to FOB pricing and Point B refers to Pricing with exceptions. Are the suppliers required to fill-in both A and B or just the one that is applicable? Subsequently, are the suppliers required to fill both point D (Final Product price without exception) and point E (final Product Price with exception) or just the one that is applicable?

DLA Response: Mark only the applicable field for Point A or Point B. In addition, only fill the applicable field for Point D or Point E.

Mark only the applicable fields for Point D or Point E

RFP Reference Page 138 - Customers.

Question #4: Is DLA able to provide any volume indication on a per unique customer location basis? Or, at a minimum, on a per region basis within Korea? Please provide estimated annual volumes per delivery location.

DLA Response: Estimated annual demands will not be given for individual customer locations or regions.

Page 63. Procurement Note L09 Reverse Auction (OCT 2016)

Question #5: DLA may use a number of price analysis techniques and procedures to ensure they obtain a fair & reasonable price. While they are not limited to the following excess means to obtain a price reduction is excessive and unnecessary:

(i) Comparison of proposed prices received in response to the solicitation. Normally, adequate price competition establishes a fair and reasonable price. FAR 15.403-1(c)(1)) states:

(c) Standards for exceptions from certified cost or pricing data requirements—

(1) Adequate price competition.

(i) A price is based on adequate price competition when—

(A) Two or more responsible offerors, competing independently, submit priced offers that satisfy the Government’s expressed requirement;

(B) Award will be made to the offeror whose proposal represents the best value where price is a substantial factor in source selection; and

(C) There is no finding that the price of the otherwise successful offeror is unreasonable. Any finding that the price is unreasonable must be supported by a statement of the facts and approved at a level above the contracting officer.

Given the above, why would DLA use the process of Reverse Auctioning? Offerors spend significant time developing offers and calculating prices given the limited information provided.

All the risk falls on the potential awardee and after DLA has determined that competition exists and prices are fair and reasonable, the decision to impose a reverse auction only undermines the extraordinary efforts taken by the offerors to submit an offer that meets the extreme requirements of DLA and the Services while ensuring a reasonable profit is attainable based on the high risk of the resultant award.

Would DLA consider removing this provision from the solicitation?

DLA Response: In accordance with 15.407-90(a)(1), “The contracting officer must consider using reverse auctions in solicitations for competitive procurements valued above the micro-purchase threshold.” The use of reverse auction will not be removed from the solicitation.

Question #6: Starting on Page 70 of the solicitation

III. CONTRACT IMPLEMENTATION PHASE

Please clarify who will be required to deliver the Incumbent’s stock to the new Prime Vendor’s facility?

DLA Response: Please see Section II paragraph 2 of this amendment.

Question #7: Please confirm the new Prime Vendor will be able to inspect the Incumbent’s stock at the Incumbents facility before delivery to the new Prime Vendor facility.

DLA Response: Please see page 71 bulleted paragraph 2 of the Statement of Work.

Question #8: On page 72 of the solicitation states…

III. CONTRACT IMPLEMENTATION

iv. All Government Furnished Material (GFM), that meets minimum contractual requirements shall be delivered by the incumbent Prime Vendor to the new Prime Vendor’s warehouse(s).

GFM product shall be cataloged by the new Prime Vendor at a $0 product price and the applicable distribution price for GFM in accordance with this section and ultimately delivered to customers under the resulting contract.

Will the reduced distribution fee stated in the contract implementation (50%) be utilized for GFM for the ramp-up period as well?

DLA Response: As referenced in the Statement of Work on Page 72 Section III paragraph iv, “GFM product shall be cataloged by the new Prime Vendor at a $0 product price and the applicable distribution price for GFM.” The incumbent Prime Vendor will receive payment based on the cataloged price for GFM.

Question #9: Page 81 of the Solicitation references:

What is the mode of DTS transportation (via air or ocean) for FFV?

DLA Answer: As referenced in the Statement of Work on Page 81, paragraph 6, all FF&V containers are shipped to the port over ocean.

Question #10: Is there any exemption under the Korea SOFA for customs clearance, for these specific items?

DLA Response: While there are some exemptions in place for imported food in support of the US Military, the local government retains the right to inspect the material for bug/infestations.

Any exemptions to import do not waive the right of the Korean Government to inspect shipments.

Question #11: Please provide the MOA for the GOCO Facility.

DLA Response: The MOA referenced on pages 101 and 105 of the Statement of Work will be provided to offerors by request through e-mails.

Question #12: Once the MOA is received, may we submit additional questions regarding the GOCO facility?

DLA Response: DLA does not anticipate answering additional questions. The deadline for questions was April 8, 2020.

Question #13: On Page 109 the Food Defense Plan is required within 60 days of award;

however, on page 119, Paragraph a. it states one can be requested anytime during the evaluation of the solicitation? “DLA may request a copy of a firm’s Food Defense Plan at any time during the evaluation of the solicitation.”

Please confirm when it is required to supply of Food Defense Plan?

DLA Response: The awardee is required to submit a Food Defense Plan within 60 days post award, however, it may be requested by the Contracting Officer at any time during the phase of the proposals

Question #14: The solicitation includes the following sections as it relates to a 300% surge factor:

Page 91-92 L. SURGE AND SUSTAINMENT

2. DLA defines surge as the ability to ramp up quickly to meet early requirements normally needed within the first 45 days of a contingency. Sustainment is defined as the ability to sustain an increased pace throughout the contingency(s) for six months or longer. The spectrum of possible contingencies includes major theatre and smaller scale contingency operations.

Examples of various contingencies are as follows:

Joint Chiefs of Staff (JCS) Logistics Exercises – The Contractor must have the ability to support short term surges in demands, which may increase three times the pre-surge average weekly demands (based on an average of the most recent 52 week period). There may be occasions where large increases in quantity will be necessary for short periods of time and on short notice. A surge situation is defined as an increase in military feeding of 300% of peacetime demand for a period of up to 30 days. Rarely, there is sufficient advance notice as to when exercise surges will occur. The Contractor will be required to meet the surge demand in the normal contractual lead times. For the resultant contract from this solicitation the Contractor will be required to have the ability to sustain surges of 300% of pre-surge demand levels for 30 days without advance notice. If, for example, an item has a pre-surge demand of 100 cases per week, the Contractor is expected to be able to support 300 cases per week for 30 days during the surge period.

Page 100-101 G. AIRLIFTS

Airlifts to support customer requirements in Korea are not anticipated. The Prime Vendor is required to stock sufficient quantities of product to meet all Korea customer demands. If an item with an established demand is not properly managed by the Prime Vendor, a not-in-stock situation occurs, and the item is projected to be out of stock for more than 21 days, the Prime Vendor will be required to airlift product at its own expense.

I. FILL RATE/SUBSTITUTIONS/EXCEPTIONS

This section has the following note included on page 149: NOTE: If the demand for a specific item over the last 30 days exceeds 300% of the Prime Vendors AMD for that item from all customers, exception V01 may apply.

What is the difference between a Surge and an Unanticipated Demand? A Joint Chiefs of Staff (JCS) Logistics Exercise involves the movement of significant numbers of troops creating increased demands which are not immediate whereas an unanticipated demand for a period of 30 days must be based on some unique factor. With the lead time in a “properly managed” supply chain, DLA has created an unattainable requirement of supporting a 300% demand increase and not be in a “not-in-stock” for less than “21 days”. The only exception DLA provides in on fill rate if the demand exceeds 300%, not at 300% or less such as 295% and so on. With the current lead time to support Korea, a “properly managed” supply chain will be in a “not-in-stock” for a period greater than “21 days” thus requiring the SPV to airlift product at the Prime Vendors expense without the ability to recover these costs.

DLA Response: In accordance with page 87, paragraph 3, “The contractor will be required to have the ability to sustain surges of 300% of pre-surge demand levels for 30 days without advance notice. If, for example, an item has a pre-surge demand of 100 cases per week, the contractor shall be able to support 300 cases per week for 30 days during the surge period.” It is the responsibility of the Prime Vendor to include all costs associated with the contract in the distribution prices.

Question #15: Page 104-105. VII. INVENTORY AND WAREHOUSE MANAGEMENT

A. WAREHOUSE MANAGEMENT

4. The Government will not reimburse the Prime Vendor for expired or excess inventory during the life of the contract or after the contract has expired. Exceptions to this rule must be incorporated into the contract via contract modification.

If exceptions are not permitted under the submission of this offer, how can exceptions be incorporated into the contract?

DLA Response: In the aforementioned language, exceptions refer to post-award circumstances which must be mutually agreed to by the Prime Vendor and Contracting Officer. Any post-award exceptions to the contract will be accomplished through a contractual modification.

Question #16: Page 105 B. GOVERNMENT FURNISHED MATERIAL –

OPERATIONAL RATIONS

3. Any contractor MUST agree to incorporate all provisions of the Memorandum of Agreement (MOA) between the J-4 Headquarters, United States Forces Korea (USFK) and the DLA Troop Support Philadelphia dated September 2014. This MOA can be provided to offerors. All information in this solicitation pertaining to the GOCO facilities takes precedence over the MOA.

May the bidder submit additional questions, after we receive the MOA?

DLA Response: DLA does not anticipate answering additional questions, the deadline for questions was April 8th, 2020.

Question #17: May we conduct a safety inspection prior to taking possession of the facility and what are the processes and timelines for required repairs, etc?

DLA Response: DLA will provide dates for a GOCO tour at a later time. Please keep in mind, due to the Department of Defense’s COVID-19 travel restrictions, the tour will likely occur after initial proposals are submitted.

Question #18: In regards to the following question:

12. The incinerator at the BSC is not available for use by the Prime Vendor. Use of the attendant services (e.g. trash) at the GOCO facilities are limited to the contractor’s performance at the GOCO facility.

If the incinerator was paid for and installed by DLA as GFM, why can’t the SPV utilize the DLA owned incinerator for disposal of unsafe product? This could reduce disposal fees.

DLA Response: As stated on page 107 paragraph 12 of the Statement of Work, “The incinerator at the BSC is not available for use by the Prime Vendor. Use of the attendant services (e.g. trash) at the GOCO facilities are limited to the contractor’s performance at the GOCO.”

Question #19: Who will be responsible for the disposal of the GFM located at the GOCO Facility? The Prime Vendor or the Government?

DLA Response: Please see the 3rd paragraph on page 94 of the Statement of Work.

Question #20: On pages 105 & 106 of the solicitation states:

Should there be overflow and GFM is required to be stored at the Prime Vendor’s facility, does the Prime Vendor get further consideration for the costs of storage at the Prime Vendors facility?

DLA Response: All costs associated with the Statement of Work should be built into the offered distribution prices including the potential storage of GFM at the Prime Vendor’s commercial warehouse.

Question #21: Would DLA please provide the annual volume of GFM?

DLA Response: Historical annual demand shows a history of approximately 19,000 modules per year. Please note this is only an estimate and can change

Page 116 IX. QUALITY CONTROL, QUALITY ASSURANCE AND INSPECTIONS

5. Security Considerations/Protection / Food Defense

Under subparagraph a. it states in part: “DLA may request a copy of a firm’s Food Defense Plan at any time during the evaluation of the solicitation.” Yet on page 109 it states that: “The plan must be submitted to the Contracting Officer within 60 days after contract award to be reviewed for acceptability.” Which requirement is applicable and when is the Food Defense Plan required to be submitted?

DLA Response: Please see Question #13.

Question #23: In regards to the following language:

143 D. ORDER CANCELLATION

In the first paragraph it states in part: Customers may cancel orders up until 12 noon of the day prior (local Korean time) to RDD, and no restocking charges shall apply.

Restocking charges will be applied for cancellations after 12 noon of the day prior to the RDD on orders over $10K.

What is the size of the average order in Korea? How was the $10K limit developed?

DLA Response: Orders vary greatly in sizes. It is at the Government’s discretion to make decisions regarding all aspects of the contractual requirements.

Question #24: In regards to the following language:

H. MANAGEMENT REPORTS

Why are all required reports not listed under this section such as the Weekly Status Report detailed on page 83 of the solicitation? This should cover all required reports so there are no questions as to what is required under the solicitation and resultant contract and all cost elements are clearly identified.

DLA Response: Please see the Statement of Work, page 154 Section H for a list of required reports.

Question #24: In regards to the following language:

Pages 105 & 106 of the solicitation state:

“The warehouse facilities must have sufficient lighting, an adequate number of cameras located inside and outside for complete surveillance, security fences and locking devices. Guards for static security shall be utilized.”

Please confirm if DLA requires the prime vendor to have static guards 24/7?

DLA Response: Please see Section II paragraph 3. of this amendment.

Question #24: On page 84 of the solicitation it states.

E. DIRECT VENDOR DELIVERIES WITHIN KOREA

Customers under this solicitation may require direct vendor deliveries for certain items (e.g., FF&V, water, bakery, soda, etc.) from approved local Korean sources. The Prime Vendor shall sub-contract with the approved Korean source(s) to fulfill these direct vendor delivery requirements.

When the Prime Vendor utilizes sub-contractors to perform direct vendor delivery services to the customers under this solicitation, the following price formula shall apply:

Contract Unit Price = Product Price + 50% of the Distribution Price

Categories 6, 7, 8, 9, 10, 11, and 12 are subject to this pricing. This reduction will be accomplished by reducing the existing distribution price category by 50% and submitting an 832 Price Change that reflects the reduced price. It will be the Prime Vendor's responsibility to notify the Contracting Officer if the subcontractor changes and is no longer a direct delivery.

DLA Response: Due to base access issues, it is not a common practice for locally sourced items to be delivered directly. In the event that direct deliveries are required, it is the Prime Vendor’s responsibility to coordinate with the Contracting team. Likewise, it is the Prime Vendor’s responsibility to notify the Contracting team when direct deliveries cease.

Question #24: Because there are multiple items that fall under these specified distribution categories where some of the items may be delivered direct and others would be stored in the Prime Vendor’s facility. How would the Prime Vendor be able to distinguish and invoice DLA on the different distribution fees should the entire fee be reduced by 50%?

Would DLA provide a separate distribution fee category for direct deliveries?

DLA Response: DLA will not provide a separate distribution fee category for direct deliveries.

Question #24: Due to the current ongoing COVID-19 global pandemic, that has caused lockdown measures across more than 90% of US States, severe reductions and restrictions in international air travel, including 14-day quarantine requirements for international arrivals into South Korea and subsequent social distancing measures in public places, we respectfully request an indefinite extension to the current due date of 21 May 2020 for Solicitation SPE300-19-R- 0076, in order to comply with the associated restrictions and assist in preventing the spread of the virus.

At present it is not possible, practical or safe for any bidders to carry-out the necessary in-country reconnaissance requirements to engage with local providers of warehousing, transportation and LMR. Furthermore, it is not currently clear when such travel restrictions will be lifted and it will become safe and prudent to begin such reconnaissance activities. Without the ability to carry out thorough reconnaissance, bidders will not be able to develop competitive concepts of operation for this Solicitation, therefore providing a distinct and unfair advantage to the incumbent contractor or locally based bidders.

We would request that the government consider restarting the planned Solicitation period to allow for 7-8 weeks for bidders to prepare bids, from the point that travel restrictions are removed in the US and Korea and it becomes safe for US citizens to travel freely

DLA Response: DLA Response: DLA requires that all of their Prime Vendors be capable of fully supporting requirements at all times including contingency, acts of God, and pandemic.

Amendment 0001 extended the response date to June 4, 2020. Please see the amendment for more details.

Question #24: Given the length of the Statement of Work and the complexity of the contract, we request an extension to the question deadline. Can you provide an extra 10 days to submit questions?

DLA Response: Amendment 0001 extended the response date to June 4, 2020. Please see the amendment for more details.

Question #24: During the period of time at the beginning of the contract where the new contractor is delivering product purchased from the incumbent, are we charging the product price we paid to the incumbent, our quoted price submitted with our proposal, or some other price?

DLA Response: On page 74, per the Procurement Note Economic Price Adjustment – Actual Material Costs for Subsistence Product Price Business Model, “Product Price” is the most recent DLA Troop Support MPA price or the most recent manufacturer, grower or private label holder commercial price per unit to the Contractor, exclusive of standard freight. Page 71 states, “…Products shall be sold to the new Prime Vendor at the “Product Price” as defined by Defense Logistics Agency Directive Procurement Note Economic Price Adjustment – Actual Material Costs for Subsistence Product Price Business Model)…The new Prime Vendor shall request and obtain supporting invoice documentation from the incumbent contractor for all items purchased for traceability and price verification purposes.” Page 72 states, “All products purchased by the new Prime Vendor at the “Product Price” as defined by Procurement Note Economic Price Adjustment – Actual Material Costs for Subsistence Product Price Business Model shall be used to establish fully functional catalogs under the new contract and provide initial support to the customers under the terms and conditions of the new contract.” Therefore, the new Prime Vendor would charge the product price supported by the invoice documentation from the incumbent contractor for all items purchased from the incumbent to provide initial support to the customers under the terms and conditions of the new contract.

Once the incumbent product is depleted, the new Prime Vendor must follow instructions on page 160, paragraph V which states, “Final negotiated prices shall become the baseline catalog prices at the time of the first order.”

Question #24: Is there a best practices software that Prime Vendors are using to communicate with STORES or a list of preferred softwares? If so, can you please provide us with the name or names?

DLA Response: Per the STORES Catalog Vendor Guide that was attached to the solicitation, “The recommended browser is Microsoft® Internet Explorer©.” How a vendor chooses to communicate with STORES is a vendor’s business decision.

Question #25: It is our understanding that we will not get a list of contracted suppliers and items (MPA, Indefinite Delivery Type Contracts) until after the contract is awarded. Based on that, when conducting our market basket we will be identifying supplier for each item and may select suppliers that are not parties to one of the contracted agreements with the government. We may then need to switch suppliers during the implementation period. Is our understanding correct? Also, please explain to us how that process works, what the timing of it is, and how that impacts our catalogue price.

DLA Response: Per paragraph number 3 section H on page 85, “The Prime Vendor will be required to establish commercial agreements with the MPA holders for all MPA items cited for cataloging during the ramp-up phase of the contract.” Also paragraph 5 of that same section states that, “The new MPA product prices shall be updated on the contractor catalog during the scheduled catalog update that immediately follows receipt of the new product into the Prime Vendor’s inventory.” Therefore, the product prices would be updated on the catalog during the scheduled catalog update in the implementation phase if you receipted any MPA items as a result of commercial agreements with MPA holders you established during the implementation phase (ramp-up/ramp down).

Question #26: The Solicitation page 138 (SPE30019R0076.LTC_PID0002.PDF) includes the following paragraph regarding Customers: Please note that Republic of Korea includes surrounding islands such as Jeju Island. It is the responsibility of the Prime Vendor to ensure product arrives to all delivery locations in good condition.

• CONUS means “Contiguous Unites States” or “Conterminous United States” and does not include “Hawaii” and “Alaska” because they are non-contiguous to mainland USA.

Accordingly, logistical cost from mainland to those non-contiguous locations becomes much higher than the one within the CONUS.

• Borrowing the same concept, CONKOR means “Contiguous Korea” and does not include “Jeju island.” Accordingly, the logistical cost of shipping to Navy customers at Jeju island becomes 3-5 times higher than the one within CONKOR.

• Also, we expect there will be increasing orders from Navy ships form Jeju island during the next contract.

In this regards, we cordially request DLA to consider to add one (1) additional distribution fee category (logistical fee) for Jeju island.

DLA Response: Paragraph number 2 on page 79 states, “At no time during the life of this contract will additional money be paid for transportation, customs, certificates, etc. The offered Distribution Prices, must cover all costs associated with deliveries to any customer in this solicitation.” An additional distribution fee category for Jeju island will not be added.

Question #27: Is an OCONUS offeror with prime vendor experience as prime allowed to bid when it is a subsidiary from a registered and recognized CONUS small business company?

DLA Response: This is a business decision for the offeror to make. Interested firms should reach out to other agencies, such as, the Small Business Administration with any questions regarding eligibility.

Question #28: Is the CONUS past performance of a CONUS small business company weighted the same as when the offerors this past performance is gained through its OCONUS affiliated or subsidiary company with OCONUS prime vendor experience (either as prime or sub)?

DLA Response: Interested firms should reach out to other agencies, such as, the Small Business Administration with any questions regarding eligibility.

Question #29: Can a foreign company with PV experience as a prime without a legal seat in the USA be registered as a Small Business company?

Question #30: Can a foreign company with less than 500 employees bid on this solicitation?

Question #31: What is the key driving factor to have a small business set aside criteria in place for OCONUS solicitation? In particular when taking into consideration that only the purchasing and loading of the foodstuff is done in CONUS and where all physical handling, storage and distribution done is in OCONUS e.g. 95% of the cost to be recuperated with the distribution price is an OCONUS cost over which OCONUS taxes are being paid.

DLA Response: This solicitation was set aside in accordance with FAR 19.502-3(b)(1).

Question #32: Can a local Korea company with experience in supply chain management, warehousing and food distribution with or without specific knowledge of the Prime Vendor program but with significant local experience in Korea bid on this contract as an offeror without being disqualified due to the Small Business set aside criteria?

DLA Response: Interested firms should reach out to the Small Business Administration with any questions regarding eligibility.

Question #33: What is the delivery frequency for ships (i.e. estimated number of ships serviced per month or year), estimated/average number of pallets per delivery, as well as delivery location?

DLA Response: While the frequency of visiting ships cannot be provided, below gives you the estimated percentage of sales by customer service type:

Service % of Total Sales

Air Force 20.28% Army 74.82% Coast Guard 0.17% Marine Corps 1.37% Navy 3.31% Others 0.05%

Question #34: The solicitation SPE300-19-R-0076 has much in common with another DLA Solicitation, SPE300-20-RSPVK. Will the Government please clarify whether these are the same opportunity or different requirements. If they are different, will the Government please explain the differences between these two programs?

DLA Response: DLA requires that all of their Prime Vendors be capable of fully supporting requirements at all times including contingency, acts of God, and pandemic. Amendment 0001 extended the response date to June 4, 2020. Please see the amendment for more details.

Question #35: Under solicitation SPE300-19-R-0076 the Government provided no advance notice of small business set-aside or other restrictions to Full and Open competition. Large businesses and foreign entities that can provide significant value to DLA on this program have been excluded from competition with no prior notification, preventing them from developing effective teaming solutions to compete for this requirement. Was it the Government’s intent to exclude large businesses and foreign entities from participation? Will the Government provide a 60 day extension to allow time for large business and foreign entity offerors to form teams and enhance competition on this procurement?

DLA Response: This solicitation was set aside in accordance with FAR 19.502-3(b)(1). The deadline was extended to June 4th, 2020. Please see amendment 0001.

Question #36: The release of solicitation SPE300-19-R-0076 on 30 March has created a significant disadvantage for the Government in the midst of the global COVID-19 pandemic.

U.S. military installations in the Republic of Korea have been essentially locked down since the beginning of March, with extensive restrictions to base access preventing the normal operation of logistics supplies and services throughout the country. International shipping and freight forwarding operations have been impacted by availability of containers, labor, and customs clearance, and global fuel prices and stock markets have all been impacted by the volatility of the health crisis. Food suppliers in CONUS and across the INDO-PACOM region have shifted their production lines to meet temporary but dramatically altered consumer demands, and the impact on all aspects of supply chain planning and pricing has created a perfect storm in which the ability to obtain long term supply chain and subsistence item pricing is significantly impacted.

The result of all these conditions for DLA is the unrealistic and unreliable nature of subsistence plans, pricing, and operational risk with the current timing of the acquisition; under these conditions, the incumbent contractor possesses an unusually unbalanced advantage that prohibits adequate competition. We request a delay of at least 60 days for submission of offers (to 20 July) to allow offerors to account for short term price volatility in their pricing models, and to allow sufficient time to receive quotes from INDO-PACOM regional vendors who are currently operating in a severely restricted capacity.

DLA Response: DLA requires that all of their Prime Vendors be capable of fully supporting requirements at all times including contingency, acts of God, and pandemic. Amendment 0001 extended the response date to June 4, 2020. Please see the amendment for more details.

Section V – DIBBS Proposal Instructions Vendors are now able to upload offers and submit additional documents for open RFPs/IFBs/Other RFQs.

Unless prohibited by the solicitation, DIBBS electronic upload is the preferred method of proposal submission. You may use this screen to upload a completed offer and all associated documents. The offer must be signed and completed in its entirety in accordance with the solicitation requirements. Do not select submit until all associated documents are added. No data will be saved unless the offer is submitted. Once submitted, documents may be added, but not removed.

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No.

52.212-1, 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in the solicitation.

Reference FAR 15.208(a), which states "Offerors are responsible for submitting proposals, and any revisions, and modifications, so as to reach the Government office designated in the solicitation by the time specified in the solicitation. Offerors may use any transmission method authorized by the solicitation (i.e., regular mail, electronic commerce, or facsimile). If no time is specified in the solicitation, the time for receipt is 4:30 p.m., local time, for the designated Government office on the date that proposals are due."

NOTE: if the ability to upload proposals is unavailable for any reason, this does not constitute an acceptable reason for a late bid. Please refer to your solicitation for other acceptable submission methods.

Once logged in, you will be able to submit an offer in response to a solicitation found on the RFP search screen by selecting the “Offer” icon. The button will only be selectable for vendors who are logged onto DIBBS. If not logged in yet, DIBBS will take you to the log in screen.

Selecting the Offer icon above will take you to the Upload Offers window

The Upload Offers window contains the following sections:

1. Upload Document for Submission – This section allows the vendor to upload documents.

2. Uploaded Documents Pending Submission – This section contains documents that have been uploaded, but not yet submitted as part of the offer.

3. Submitted Offer – This section contains all files that have been submitted as a part of the offer.

Use this screen to upload a completed offer and all associated documents. The offer must be signed and completed in its entirety in accordance with the solicitation. Do not select submit until all associated documents are added. No data will be saved unless the offer is submitted.

Once submitted, documents may be added, but not removed.

Refer to the solicitation for all offer submission requirements including the exact time specified for the receipt of offers.

Description: You can use up to 60 characters to describe each file uploaded. Characters include alphas, numerics, blanks and special characters. Only one file may be uploaded at a time. The Description is a mandatory field.

Note: Uploaded files are not saved until the Submit button is selected.

File Name: DIBBS will allow vendor file names up to 60 positions not including the extension.

If the file name is too long, DIBBS will display an error message that the file name is too long.

Acceptable file extensions for file name: “.doc", ".docx", ".jpg", “jpeg”, “.tif”, “tiff”, “.gif”, ".pdf", ".rtf", ".txt", ".xls", or".xlsx", If not one of these file extensions, DIBBS will display an error message that the file type is not allowed.

If the file size is over 10 MB for a single file, DIBBS will display an error message that files must be less than 10 MB.

**File names cannot contain spaces

The vendor-supplied file name cannot be used more than once for the same offer. If you submit a file name in a previous session, you will not be allowed to use the same name in the current session.

The only acceptable special characters are: hyphen (-) and underscore (_).

Document Contains Offer

This checkbox allows you to select a document that contains your offer.

Reset Button

The Reset button will return all fields in the Upload Document for Submission area.to a blank.

Upload Button

The Upload button will move the document from the Upload Document for Submission area to the Uploaded Documents Pending Submission area. If you navigate away from DIBBS without clicking the Submit button, uploaded documents will not be saved. All of the documents that the vendor intends to submit should be uploaded before selecting the Submit button.

Uploaded Documents Pending Submission

Button Definitions

Remove – The Command column contains a Remove button for each file.

NOTE: Only files that have not been submitted can be selected for removal.

Date – This is the system supplied date/time that the attachment was uploaded.

Description – This field contains the description with up to 60 positions which was entered in the Upload Section.

File Name – This field contains the vendor-supplied name of the file including its extension.

File Size – This field contains the system-supplied file size in bytes.

Contains Offer – This field contains a checkbox which indicates which document contains the offer. Each offer must contain one file that is checked as being the offer.

Uploaded By – This field contains the DIBBS user number and the name of the person who is uploading the files.

View – This column contains a View button for each file that was uploaded.

Vendor Number – This optional field will contain a vendor’s self-supplied offer number. The field may be up to 15 positons long. Acceptable characters are alpha-numerics and hyphens.

Submit – Selecting Submit submits the offer. During the submit process, you will be prompted to select one file that contains the offer. DIBBS will display a printable page confirming that the offer has been received.

When an offer is submitted more than once, selecting a new file as the offer is optional. There is no option to delete any submitted document, but you can submit a revised document. The file name cannot be exactly the same.

Remove – When the Remove button is selected, files checked for removal will be removed and the screen will be refreshed. Only documents that haven’t been submitted may be removed.

Cancel – When Cancel is selected, DIBBS will not save any uploaded files and will return the user back to the previous DIBBS page.

Details for Submitted Offer Documents Section:

Once the Submit button has been selected, the submitted documents are displayed under the Submitted Offer Documents section of the Upload Offer window. All submitted documents are read only.

Prior to the close date of a solicitation, you may submit additional documents

Accessing the Offer after logging off and back on:

You will see a new link called Offers/Search offers under Hot Links from the Welcome page when you first log in.

Click on Search Offers where you will be taken to a screen that allows you to search your previously submitted offers. Once found, you can update if desired by clicking on the Update Offer hyperlink.

You will be able to view offer until the offer is awarded or until 180 days after the solicitation closes.

If you are logged in and you search for an RFP that you have previously submitted an offer on, you will see a green check next to the word “Offer”

Subsistence Prime Vendor Republic of Korea

SPE300-19-R-0076 -0002

SF1449 - CONTINUATION SHEET

ADMINISTRATIVE DATA/DELIVERY SCHEDULE

CONTINUATION OF THE BLOCKS ON PAGE 1 (SF 1449)

BLOCK 8 (continued)

OFFER DUE DATE/LOCAL TIME: June 4, 2020, 12:00 NOON. US EASTERN TIME NOTE: “For offers from Joint Ventures or Partnerships, this solicitation and any amendments must be signed by each party to the Joint Venture or Partnership and must be submitted along with the offer. Only one originally signed copy of this solicitation document is required for submission.

All offers are required to be uploaded to the DLA Internet Bid Boards System (DIBBS). Please visit the DIBBS website to submit your proposal: https://www.dibbs.bsm.dla.mil .

BLOCK 9 (continued):

NOTE: Facsimile and E-mail Offers are not acceptable forms of transmission for submission of initial proposals or revisions to initial proposals submitted in response to this solicitation. As directed by the Contracting Officer, facsimile and e-mail may be used during discussions/negotiations, if discussions/negotiations are held, for proposal revision(s), including Final Proposal Revision(s).

BLOCK 17A (Continued):

OFFERORS: SPECIFY

CAGE CODE: __________________________________________________________________

TYPE OF OFFEROR: (Circle one) Individual doing business as a firm, Partnership, Corporation, Joint Venture, or Other (please explain)________________________________________ _________

FOREIGN BUSINESS: (Circle……YES – OR – NO)

PRIMARY COMPANY POC/NEGOTIATOR: _____________________________________________

PHONE #: __________________________________________ __________________________

E-MAIL ADDRESS: ______________________________________________________________

BLOCK 17B (CONTINUED)

REMITTANCE WILL BE MADE TO THE ADDRESS THAT THE CONTRACTOR HAS LISTED IN THE

SYSTEM FOR AWARD MANAGEMENT (SAM).

Offeror’s assigned DUNS Number: ________________________________________________________

AUTHORIZED NEGOTIATORS:

https://www.dibbs.bsm.dla.mil/

The offeror represents that the following persons are authorized to negotiate on its behalf with the Government in connection with this request for proposal. Please list names, titles, e-mail addresses, and telephone numbers for each authorized negotiator.

BLOCKS 19-24 (CONTINUED): Statement of Work

CAUTION NOTICE

NOTICE TO OFFERORS

The Government reserves the right to cancel this solicitation at any time. If this should occur, the Government will not be liable for any proposal preparation costs or any other costs that offerors may have incurred related to this solicitation.

In accordance with FAR 52.225-25, each offeror must certify that the offeror, and any person owned or controlled by the offeror, does not engage in any activity for which sanctions may be imposed under section 5 of the Iran Sanctions Act. Each offeror shall update its System for Award Management (SAM) certifications and/or by submission of an offer, make the above certification (See FAR 52.212-3, paragraph (o)).

DLA Troop Support Point of Contact:

Christina.Bennis@dla.mil and Donovan.Mahoney@dla.mil

CONTRACTOR CODE OF BUSINESS ETHICS (OCT 2015) DLA TROOP SUPPORT

FAR Part 3.1002(a) requires all government contractors to conduct themselves with the highest degree of integrity and honesty. Contractors should have a written code of business ethics and conduct within thirty days of award.

To promote compliance with such code of business ethics and conduct, contractors should have an employee business ethics and compliance training program that facilitates timely discovery and disclosure of improper conduct in connection with government contracts and ensures corrective measures are promptly instituted and carried out. A contractor may be suspended and/or debarred for knowing failure by a principal to timely disclose to the Government, in connection with the award, performance, or closeout of a government contract performed by the contractor or a subcontract awarded there under, credible evidence of a violation of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in title 18 of the United States Code or a violation of the False Claims Act (31 U.S.C. 3729-3733).

This solicitation or contract includes FAR clause 52.203-13 - CONTRACTOR CODE OF BUSINESS ETHICS AND CONDUCT; the contractor shall comply with the terms of the clause and have a written code of business ethics and conduct; exercise due diligence to prevent and detect criminal conduct; promote ethical conduct and a commitment to compliance with the law within their organization; and timely report any violations of federal criminal law involving fraud, conflict of interest, bribery or gratuity violations found in title 18 of the United States Code or any violations of the False Claims Act. (31 U.S.C. 3729-3733).