A4 SPE4A520R0150 Section L Instruction to Offerors.pdf

SPE4A5-20-R-0150 Amendment 4

Source Selection Information – See FAR 2.101 and FAR 3.104

For Official Use Only

Section L - Instructions, Conditions, and Notices to Offerors

SECTION L INSTRUCTIONS, CONDITIONS AND NOTICES TO OFFERORS

FAR 52.212-1 INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS (JUN 2008)

(TAILORED)

(a) North American Industry Classification System (NAICS) code and small business size standard.

FSG 53 will be a contract for supplies corresponding to NAICS Code 332722. This U.S. industry comprises establishments primarily engaged in manufacturing metal bolts, nuts, screws, rivets, and washers, and other industrial fasteners using machines, such as headers, threaders, and nut forming machines. The size standard in number of employees associated with NAICS Code 332722 is 500 employees.

(b) Submission of offers. Submit signed and dated offers to the following point of contact. See Block 14 of Standard Form 30 (SF 30) for amended date and time.

VIA MAIL: DLA AVIATION

ATTN: Tracy Ruland, Strategic Acquisition Directorate, Bldg. 46, 202-24 8000 Jefferson Davis Highway Richmond, VA 23297-5770

The outside envelope must be marked as follows:

NOTE: TO BE OPENED BY ADDRESSEE ONLY

(c) Restriction on disclosure and use of data. Offerors that include in their proposals data that they do not want disclosed to the public for any purpose, or used by the Government except for evaluation purposes, shall --

(1) Mark the title page with the following legend:

This proposal includes data that shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed -- in whole or in part -- for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this offeror as a result of -- or in connection with -- the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government’s right to use information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in sheets [insert numbers or other identification of sheets];

and

(2) Mark each sheet of data it wishes to restrict with the following legend:

Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

For Official Use Only

L.1 Proposals for each portion of the acquisition will be evaluated in terms of both price and other evaluation factors in accordance with the evaluation criteria contained in this solicitation. Offerors should thoroughly read and understand the terms and conditions contained in the solicitation. Failure to provide any information requested in the solicitation may result in proposal rejection by the Contracting Officer and thus, preclude it from any further consideration for contract award. Offerors shall ensure that the information contained in their proposal is factual, accurate, and complete. If the Government accepts the offer, it will contractually bind the contractor to the terms and conditions of the solicitation.

FAR 52.212-1, INSTRUCTIONS TO OFFERORS (ADDENDA)

This Section L is intended to supplement the provision at FAR 52.212-1. In the event of a conflict, this Section L will take precedence.

L.2. Minimum Acceptance Period The period of acceptance of offers in FAR 52.212-1(c) is extended from 30 calendar days to 180 calendar days.

L.3 Communications Between the Government and Offerors Prior to Closing

L.3.1 Communications are exchanges between the Government and offerors. Communications prior to proposal submission may occur for the purpose of clarifying elements of the solicitation. They will be conducted as follows:

L.3.1.1 Requests for clarification, questions and/or information concerning this solicitation shall be submitted in writing via electronic mail to the following:

Primary: Tracy I. Ruland, Contracting Officer Email: Tracy.Ruland@dla.mil Subject: Solicitation SPE4A5-20-R-0150

Secondary: Randall H. Dortch, Alternate Contracting Officer Email: Randall.Dortch@dla.mil Subject: Solicitation SPE4A5-20-R-0150

L.3.1.2 Offers should be sent via mail to the following contact. See Block 14 of the SF 30 for amended date and time.

DLA AVIATION

ATTN: Tracy Ruland, Strategic Acquisition Directorate, Bldg. 46, 202-24 8000 Jefferson Davis Highway Richmond, VA 23297-5770

The outside envelope must be marked as follows:

NOTE: TO BE OPENED BY ADDRESSEE ONLY

For Official Use Only

The Government will acknowledge receipt within 5 business days. Offerors not receiving an acknowledgement within 5 business days should assume the request was not received and resend.

The Government assumes no responsibility for delay or loss of correspondence.

L.3.1.3 Request(s) for clarification and/or information concerning this solicitation shall include the appropriate solicitation reference (i.e. section, page, and/or paragraph), contractor question and contractor point of contact information.

L.3.1.4 No information concerning this solicitation or requests for clarification will be provided in response to offeror-initiated telephone calls. All such requests must be made in writing and submitted to the above addresses. Inquiries will be answered in writing and provided to all potential offerors on https://beta.sam.gov, Contract Opportunities. Changes, if required, will be made via formal amendments to the solicitation. However, because of response time, requests may not be answered if received by the above addressee within seven (7) days of the due date for offers as specified in this solicitation.

L.4 Intent to Award without Discussions The Government intends to select the best-value offeror without conducting discussions; therefore, the offeror’s initial proposal should contain the offeror’s best terms for all evaluation aspects outlined in this requirement. The Government reserves the right, however, to conduct discussions if the Contracting Officer later deems it necessary to communicate with offerors subsequent to receipt of proposals.

L.5 Discussions

L.5.1 In accordance with FAR 15.306(d)(2), the objective of discussions is "to maximize the Government's ability to obtain best value, based on the requirement and the evaluation factors set forth in the solicitation.” If the Contracting Officer determines that discussions are necessary due to a proposal weakness, deficiency, uncertainty or other issue which must be addressed before award, discussions will be conducted, either orally or just in writing. Discussions will be held with only those offerors determined to be within the competitive range.

L.5.2 Competitive Range Determination The Contracting Officer will establish a competitive range comprised of the most highly rated proposals based on the ratings of each proposal against all evaluation criteria. The Contracting Officer reserves the right to further reduce those offerors selected for the competitive range for purposes of efficiency pursuant to FAR 15.306(c)(2).

L.5.3 Discussions will be accomplished in a timely manner via the most efficient/economical means.

Where discussions are applicable, Evaluation Notices (ENs) will be provided to the offeror identifying areas of proposal deficiency, weakness, uncertainty or lack of clarity. Offerors shall respond to ENs during discussions in accordance with guidance provided by the Contracting Officer.

L.5.4 Once discussions have concluded offerors will be afforded an opportunity to revise their proposals and will be requested to submit proposal revision(s) to the Government. Upon completion of evaluation of all proposal revision(s), the Government will select the offeror representing the best overall value to the Government.

For Official Use Only

L.6 Preparation of Proposals An Offeror’s proposal shall be prepared and authored by a person or persons regularly employed by the offeror. The proposal should state the name of each person contributing to the authorship of the proposal, the person’s position within the offering firm, the portion(s) of the proposal the person wrote or contributed to, and the position the person will hold in relation to the proposal should the proposal be awarded. The proposal should be prepared simply and economically, and must be clear, legible, practical, specific, and complete, as described in the format and instructions below. No samples or descriptive literature are to be specially prepared for submission with your proposal.

L.7 Format for Proposals

L.7.1 Proposals shall be submitted in five volumes. Four written proposals shall be submitted for Cyber Security, Technical, Past Performance, and Solicitation and Amendments in loose-leaf binders as outlined below. One electronic proposal shall be submitted for Price via Compact Disc (CD).

Offerors shall attach a binder cover sheet to the outer cover of each volume, which clearly identifies each volume by number, name, and copy number (i.e., Volume 1, Cyber Security, copy 2 of 4), solicitation number, date of submission, and the offeror's name. This information shall also be placed on the edge of the binder where it can be seen when placed in a vertical position in a storage cabinet.

VOLUME DESCRIPTION PAGE

LIMITS

NUMBER OF

COPIES

1 Factor I: Cyber Security 1 Original + 4 2 Factor II: Technical Note: Resumes not counted towards page limits

Original + 4

• Tab A: Program Management 10

• Tab B: Program Execution 30

• Tab C: Quality System 10

• Tab D: Small Business Commitment Plan 10 3 Factor III: Past Performance 20

Note: Copies of Contracts do not count towards page limit

Original + 4

4 Factor IV: Price N/A CD (See L.7.5) 5 Solicitation and all Amendments N/A

L.7.2 The Offeror's proposal shall be prepared on standard 8.5 x 11-inch paper using Times New Roman font style at no smaller than 11-point in size (exception: 8-point font size is acceptable for tables, charts, graphs and figures). The proposal pages shall be printed double-sided (with each side counting as a page toward the page limit as indicated in the table above), numbered, and punched with a 3-hole punch along the left margin. The offeror must ensure that printed area is readable.

For Official Use Only

L.7.3 Proposals shall be neat, indexed/cross-indexed and logically assembled. All pages of each part shall be appropriately numbered and identify the solicitation number. To facilitate ease of reference in correspondence and meetings, offerors shall use a page numbering system. Consecutive page numbering within tabs is preferred; e.g., Page A-5 identifies Tab A, Page 5. In addition to the specific requirements for each proposed part, the offeror shall provide whatever other narrative or supporting materials (matrix, charts, or graphics) considered necessary for the government to fully understand the proposal. Indexes, matrixes, acronym lists (i.e., proposal reference materials) are not subject to the page limitations identified at L.7.1.

L.7.4 Each proposal volume shall begin with an executive summary. While executive summaries are not subject to the page limitations at L.7.1, each proposal volume executive summary is limited to two double-sided (four) pages.

L.7.5 Price proposal (original only) shall be submitted on a separate CD. All CDs shall be readable on an IBM PC-compatible system running Microsoft Office 2007 or later. Each CD shall be clearly labeled and each label shall state the offeror’s name, solicitation number, date of submission, and the proposal volume (name and number) contained on the CD. If more than one CD is required for a volume, the CD shall be labeled as CD "x" of "y" (i.e., CD 1 of 2). The Price Volume shall be submitted in Microsoft Excel utilizing the TEP submission (Appendix A) to the solicitation.

L.7.6 If there are any discrepancies between the electronic version and the hardcopy version submitted in response to this solicitation, the hardcopy version will take precedence.

L.7.7 For document control purposes, all proposal revisions provided after the receipt of the initial proposal shall be submitted as change pages on blue-colored paper with each page identified by revision number or date as well as by page number. This in no way affects the rules for acceptance of late submissions, modifications, revisions or withdrawals of offers contained in FAR 52.212-1(f).

L.8– Factor I – Cyber Security (Volume 1)

The proposal shall address, at a minimum, the offeror’s adherence to the following:

The primary goal of the proposal submission for the Cyber Security factor is for the offeror to agree to adhere to the government’s requirements in accordance with Defense Logistics Acquisition Directive (DLAD) Part 4, Administrative Matters Subpart 4.73-Safeguarding Covered Defense Information and Cyber Incident Reporting. This factor will ensure that the Contractor acknowledges their ability to follow and comply with all National Institute of Standards and Technology (NIST) policies of the FSG 53 acquisition. Furthermore, this factor will confirm that the Contractor agrees that at the time the Department of Defense (DoD) imposes the new Cybersecurity Maturity Model Certification (CMMC) process, that they will comply with the policy and secure the required certification, regardless of the potential that the new policy may not require active DoD contract holders to comply.

The Government reserves the right to review contract NIST compliancy, which may require additional documentation during contract performance.

For Official Use Only

L.9 Factor II – Technical (Volume 2)

The primary goal of the proposal submission for the Technical factor is for the offeror to demonstrate that its proposed approach will satisfy the government’s requirements. The Technical factor includes four subfactors: Program Management, Program Execution, Quality System, Small Business Commitment Plan. The offeror shall address the elements listed below for each subfactor to provide the government with assurances that the offeror’s approach will satisfy the government’s performance requirements and provide seamless FSG 53 support for DoD customers.

L.9.1 Subfactor One - Program Management

The primary goal of the proposal submissions relating to Program Management is to demonstrate the offeror has an adequate management infrastructure (to include personnel, processes and general program-level) in place to support the requirements of the solicitation. The proposal shall address the management structure by detailing at a minimum, the below requirements.

L.9.1.1 Describe the offeror’s corporate structure identifying the responsibilities of the offeror and all critical subcontractors relating to the management and oversight of the contract. A "critical subcontractor" is defined as any subcontractor, team member, or consultant (at any tier) designated by the prime contractor as being necessary to the performance management and operational oversight activities in performance of the resulting contract (i.e., from contract award to contract end/exit).

L.9.1.2 Provide resumes of key personnel. Resumes will not be counted toward the page limit in L.7.1. List and describe all key personnel (including subcontractor personnel) that are essential to the successful management and oversight of this effort. Describe the qualifications of key personnel to demonstrate their understanding and experience in working with and/or supporting the government maintenance process. Describe what roles and responsibilities of those personnel will have with respect to managing this effort. Specifically identify the Program Manager with overall responsibility for the program in ensuring performance to the solicitation requirements and the minimum qualifications of this position.

L.9.1.3 Describe the Offeror’s information and data systems, connectivity and capabilities to meet all performance requirements; how its information technology (IT) will be used in performance of the contract; how it will process EDI orders from receipt to complete fulfillment to meet TDD standards and meet the packaging marking, and shipping requirements for the Core population; how it will process EDI orders from receipt to complete fulfillment to meet On-Time Delivery (OTD) requirements for the Alternative baskets; and how its IT systems can/will adapt based on fluctuating demands to maintain seamless customer support.

L.9.1.4 Identify how the offeror is financially capable of supporting the requirements either at present or by detailing its efforts to secure finances accordingly.

L.9.2 Subfactor Two - Program Execution

The primary goal of the proposal submissions relating to Program Execution is to demonstrate how the offeror’s execution approach will successfully operate Program support and to provide assurances

For Official Use Only that the offeror’s approach will satisfy (or exceed) the performance requirements. The proposal shall, at a minimum:

L.9.2.1 Provide Contractor Transition Plan in accordance with SOW, Section 2.3.

L.9.2.2 Provide a plan to execute the supply chain functions for the Core population as identified in the SOW, Section 10.1.

L.9.2.3 Accept or change Production Lead Times (PLTs) in Appendix B. The Core Basket is subject to Time Definite Delivery (TDD) shipment requirements. Describe the offeror’s approach for overseeing the program to ensure it meets the Government’s required delivery objectives as well as meeting the Customer Direct Availability (CDA) and OTD metrics required in the SOW.

L.9.2.4 Describe the offeror’s approach for Customer Support Services to include responsiveness to customer (both DLA and Services) inquiries.

L.9.2.5 Describe the offeror’s approach for development and optimization of its Supply Chain Management (SCM) system.

L.9.2.6 Identify potential supply chain risks to meeting the specific performance standards and provide an approach(es) to mitigate each risk identified.

L.9.3 Subfactor Three - Quality System

The primary goal of the proposal submissions relating to its Quality System is to demonstrate that the offeror has the systems necessary to meet the performance standards while ensuring the quality and conformance of the items supplied. The proposal shall address at a minimum, the below requirements:

L.9.3.1 Provide a description of the offeror’s quality system and assurance process to ensure it procures and provides items from approved sources, provides items that meet the requirements of the drawings and specifications, and prevents counterfeit material from entering the supply chain. The proposal must include a copy of its current quality standard.

L.9.3.2 Describe how the offeror will ensure product conformance as well as ensuring criteria standards for testing, inspection and marking are met for commercially sourced items in compliance with the materiel technical requirements specified herein to include maintaining, obtaining, and substantiating Critical Safety Item (CSI) manufacture, testing and inspection data and documentation, when applicable.

L.9.3.3 Commercial warranty provisions and return/exchange program for incorrect or defective component items.

L.9.3.4 Describe the offeror’s obsolescence management program for managing the loss, or impending loss, of manufacturers or suppliers and its resources and approach for providing the government with information regarding any known obsolescence issues and additionally, assistance it will provide to the government in establishing obsolescence solutions.

For Official Use Only

L.9.3.5 Describe the offeror’s process to ensure Configuration Control is maintained in accordance with the solicitation requirements and its established processes to work with the Administrative Contracting Officer (ACO) to process deviations and waivers, as appropriate.

L.9.4 Subfactor Four - Small Business Commitment Plan

All Offerors' (both large and small businessess) proposals are required to submit a Small Business Commitment Plan Document (SBCPD) that will describe the extent of commitment. The offeror’s proposal will describe the extent of the commitment to small business concerns, how it will track orders with small business at the order level, how the offeror will demonstrate and achieve the required minimum of 25% small business commitment metric and how the offeror will implement an incremental incentive scale to achieve up to 60% small business participation.

L.9.4.1 All Offerors (both large and small businesses) are required to submit a SBCPD. Offerors shall propose the level of commitment to small businesses (as a small business prime and/or first tier small business subcontractors) in the performance of the acquisition.

Check the applicable size and categories for the PRIME offeror only -- Check all applicable boxes:

{ } Large Prime { } Historically Black Colleges or Universities and Minority Institutions (HBCU) or { } Small Business Prime; also categorized as a { } Small Disadvantaged Business (SDB) { } Woman-Owned Small Business (WOSB) { } Historically Underutilized Zone (HUB Zone) Small Business { } Veteran Owned Small Business (VOSB) { } Service Disabled Veteran Owned Small Business (SDVOSB)

(1) Describe the extent to which such firms are specifically identified in proposals.

• Provide a listing of proposed subcontractors with their specific names, Commercial and Government Entity (CAGE) code, and respective socio economic categories to the extent they are known.

(2) Address the extent of commitment to use such firms (enforceable commitments such as long term agreements are to be weighted more heavily than non-enforceable ones).

• Describe the extent of commitment to use small businesses. Provide a listing of all small business subcontractors and types of commitments if any are in place for this specific acquisition, such as, written contract, purchase order, exclusivity arrangements, joint venture and mentor-protégé.

• Provide a description of the efforts your company will make and implement to assure that small business concerns and socio-economic categories - veteran-owned small business; service-disabled veteran-owned small business; HUBZone small business; small disadvantaged business; or a women-owned small business concern will have equal opportunity to compete for subcontracts under any resulting contract.

• Provide the name and title of the individual principally responsible for ensuring company support to such firms.

For Official Use Only

(3) Identify the complexity and variety of the work small firms are to perform.

• Describe your current and planned proposed range of services, supplies, and any other support that will be provided to you by small business and socio-economic categories.

• Provide a Listing of principle supplies/services to be performed by Small Businesses. Be as specific as possible, reference to Statement of Work (SOW) paragraphs as applicable to identify the variety and complexity of work small businesses are to perform.

(4) Address the realism of the proposal.

• All Offerors shall submit a detailed plan to meet the commitments proposed, along with the supporting business case rationale. Provide adequate justification for lack of small business participation and for any proposed percentages below the Government target Small Business commitments.

• Justifications must include sufficient discussion of how efficient and effective contracting performance, nature of supplies, availability of small business subcontractors, cost, delivery, any actions taken to increase unmet commitments, and/or any other relevant information supports a sound business case.

• Describe any future plans your company has for developing additional subcontracting opportunities for all categories of small business concerns during the contract performance.

• Specify what type of performance data you will accumulate and provide to the Contracting Officer regarding your support of small business and socio-economic categories during the period of contract performance.

(5) Address past performance of the offerors in complying with requirements of the clauses at FAR 52.219-8, Utilization of Small Business Concerns, and 52.219-9, Small Business Subcontracting Plan.

• When subcontracting possibilities existed on the contracts submitted by the offeror in the Past Performance Volume 3, address whether or not the offeror awarded subcontracts to small business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns to the fullest extent consistent with efficient contract performance. If utilizing small businesses in current or prior contracts was not practicable, the Offeror shall explain why. Provide any information substantiating the Offerors track record of utilizing small business on past contracts in detail. Include at a minimum, the two (2) most recent Summary Subcontract Reports

(SSR).

(6) Identify the extent of participation of such firms in terms of the value of the total acquisition.

Specify what proportion of your proposal, as a percentage of dollars, will be subcontracted to small business and socio-economic categories.

• Provide the total combined percentage of work to be performed by both large and small businesses (include the percentage of work to be performed both by Prime and Subcontractors):

Total Contract Value (TCV) : $____________________ Dollar Value of your Participation as a Prime Contractor: $_____________

Total Percentage planned for Large Business(es) % = $ __________

Total Percentage planned for Small Business(es) % = $ _________

NOTE: When combined, Large and Small Business totals must equal 100%.

Identify the percentage of work performed by Small Businesses that qualify in multiple socio-economic categories that may be counted in each category. The sum of all percentages need not equal 100%. All percentages shall use Total Contract Value as a baseline.

Provide adequate rationale if socio-economic entity commitments are not met. Offerors are cautioned against only acknowledging a commitment is not met, if applicable. Adequate rationale includes specific reasons why a commitment is unmet and any actions being taken to increase any unmet commitments.

Example: Victory Prop Mgmt. (WOSB and SDVOSB) performing 2%; and Williams Group (SDB, HubZ and WOSB) performing 3%. Results equate to: SDB 3%; HubZone 3%; WOSB 5%;

SDVOSB 2%; VOSB 2%;). SDVOSBs are also VOSBs automatically; however VOSBs are not automatically SDVOSBs.

Percentage of TCV Dollar Value Small Disadvantaged Business % $__________ HUB Zone Small Business % $__________ Woman Owned Small Business % $__________ Service Disabled Veteran Owned SB % $__________ Veteran Owned Small Business % $__________

HBCU /MI % $__________

* Separate from the Small Business Commitment Plan Document, other than U.S. Small Business Offerors are required to submit a subcontracting plan meeting the requirements of FAR 52.219-9 and DFARS 252.219-7003 (or DFARS 252.219-7004 if the Offeror has a Comprehensive subcontracting plan). Other than U.S. Small Businesses must submit acceptable subcontracting plans in order to be eligible for award.

L.9.4.2 Describe how small business commitment will be tracked at the order level.

L.9.4.3 Describe how the offeror will achieve the required minimum of 25% small business commitment in performing the contract and the mitigation of risk to avoid not achieving the 25%.

L.9.4.4 Describe how the offeror will identify techniques that will be used to aggressively pursue small business commitment during contract performance, such as industry days, notices in commercial publications, and similar efforts.

L.9.4.5 Provide an incremental incentive scale to achieve up to 60% small business participation.

L.10 Factor III – Past Performance (Volume 3)

L.10.1 The offeror shall describe the extent of its own present/past experience similar to the proposed contract requirements and, if the offeror’s experience is not sufficient to provide enough past performance information, provide the experience of any significant partner, joint venture, critical

For Official Use Only subcontractor, etc., who will be performing the proposed contract and the subsequent performance under the similar contract.

L.10.2 The offeror shall provide a list of relevant contracts limited to four (4), commercial or government, performed within the last three (3) calendar years from the date the solicitation is issued.

For each contract, the offeror shall provide a copy of the contract, point of contact, address, current telephone number and email, type of contract, total contract value, average dollar value of the contract per annum, period of performance, a listing of the items and/or services provided and a description of the contractor’s responsibilities and performance under the contract. In addition, for each contract cited, the offeror shall provide the following:

L.10.2.1 the average number of orders processed and averaged number of line items delivered weekly, based on the latest yearly reporting period.

L.10.2.2 the metrics measured during contract performance and the offeror’s performance history against those metrics.

L.10.2.3 a list of any problems, discrepancies or challenges (i.e., late shipments, shortages, overages, damage, defects, mis-shipments, customer dissatisfaction, etc.) experienced for the contracts reported and include a brief description of how the offeror resolved the issue.

L.10.2.4 any awards, distinctions, or certifications received (and dates) based on performance. Such awards or certifications may include private sector awards or certifications.

L.10.2.5 the extent of any past performance in providing contingency and/or S&S support.

L.10.3 The offeror shall provide a narrative report for all of the contracts provided. The narrative report shall detail the offerors performance in relation to:

• Program management;

• Program execution;

• Quality control system; and

• Small Business Commitment Plan

L.10.4 The government may obtain and use past performance information from sources other than those identified by the offeror including government automated systems (e.g., Supplier Performance Risk System (SPRS) and Contractor Performance Assessment Reporting System (CPARS)).

L.11 Factor IV – Price (Volume 4)

L.11.1 Offerors shall provide a price proposal utilizing the TEP Excel Worksheet (Appendix A) which is enabled with fill-in capability. The TEP must be submitted on a separate compact disc (CD) at the time of proposal submission. The CD must be labeled with the solicitation number, offeror’s name, date of submission and the proposal volume.

For Official Use Only

L.11.2 The offeror’s price proposal shall consist of:

(1) the offerors’ discrete unit prices for each item in the Core basket to include the price reduction percentage and the proposed management fee,

(2) the offerors’ proposed management and throughput fees in relation to the DLA historical unit prices for items in the Alternative basket,

(3) the transition fee for the transition period,

(4) optional offeror rebates, and

(5) Ecomonical Order Quantities (EOQs) and pricing, if applicable, for items in the Core and

Alternative baskets submitted on a separate Excel worksheet within Volume 4 and noted with a “Y” on respective TEP tabs if provided.

The TEP Pricing Model includes the following:

1. Guide to Pricing Template

2. Submission Checklist: Confirms completeness of required pricing data

3. Transition Period

4. Total Evaluated Price: Calculation of all required pricing data into one TEP (ten-year calculation)

5. 1a) Core List Pricing: Discrete unit price and optional price reduction for each item as well as overall management fee for each of the nine (9) years and if EOQs are provided with the proposal

6. 1b) Core List Discounts: Optional annual volume-based rebate and/or other rebate as described by offeror

7. Alt List Pricing: DLA-provided historical pricing with columns to annotate if EOQs are provided as well as inputs for management fee for each of the nine (9) years and throughput fee

Calculation of the final TEP will be based on the Projected Demand for each of the nine years of the contract as shown in the TEP pricing model including the transition, management, and throughput fees as well as any quoted price reductions, rebates / discounts.

Failure to submit a price for each item for the first year of the contract may result in an unacceptable price proposal and thus, the offeror may not be considered for award.

L.11.3 The Government reserves the right to request additional supporting price data (i.e., data other than certified cost or price data) in accordance with FAR 15.403-3, if needed, in order to evaluate price proposals and ultimately, arrive at a fair and reasonable price determination.

L.11.4 Core Basket Pricing

NSNs in the Core basket shall be priced on a discrete, item by item basis. As items are FOB (Freight on Board) Origin, freight shall be excluded from the unit price. The items shall be fixed price with Economic Price Adjustment (EPA). Unit prices are valid for twelve months and shall be adjusted annually due to changes in the defined indexes. See Section H, 1.0 ANNUAL ECONOMIC PRICE

ADJUSTMENTS.

Contractors may propose a management fee for the Core Basket of items to cover the fixed costs of managing this material. Additionally, Contractors may propose a price reduction percentage that they expect to reach each year on behalf of the DLA, with the exception of first year of the three-year base period. Note, the Contractor may propose a price reduction applicable to the entire FSG53 population or to specific NIINs or categories of NIINs.

Unit pricing beyond the first year of the three-year base period shall be calculated by the Government on a discrete NIIN by NIIN basis, through the use of seven indexes for the remainder of the contract as described in Section H, 1.0.

The Contractor will provide EOQs and EOQ pricing for the Core Basket, where available, as a separate Excel spreadsheet to ensure the Government is able to take advantage of quantity based discounts in case there is a dramatic shift in customer demand. EOQs are highly suggested for items with Estimated Annual Demand (EAD) of 1.

L.11.5 Alternative Basket Pricing

Unit prices for NSNs in the Alternative basket shall be calculated utilizing the provided DLA historical price and the Contractor’s proposed throughput fee, which represents variable costs associated with managing these items. Contractors may propose a management fee for the Alternative basket of items to cover the fixed costs of managing this material.

The Contractor shall accept the DLA historical unit price for each NIIN. The contractor will provide EOQs for the Alternative Basket, where available, as a separate Excel spreadsheet to ensure the Government is able to take advantage of quantity based discounts in case there is a dramatic shift in customer demand. EOQs are highly suggested for items with EAD of 1.

L.11.6 Volume-Based Tier Rebates:

On the Total Evaluated Price (TEP) Pricing Excel Worksheet, Appendix A, Contractors are requested to propose an annual (12-month period) volume-based tier rebate structure for nine years of contract performance related to the Core basket. Volume-based rebates will not be proposed for the transition period.

The rebate will be given to the DLA in the form of a line of credit. The Contractor will be responsible for tracking and reporting this data, subject to DLA audit.

e.g., DLA spends $XX and gets back XX% as a cash rebate (e.g., DLA spend $5m, 1-2% rebate)

Tracking and reporting details should be updated bi-annually and provided to DLA accordingly. DLA reserves the right to update which details must be provided as part of this tracking and reporting initiative.

L.11.7 Other Rebates:

On the TEP Pricing Excel Worksheet, Appendix A, Contractors will be allowed to propose any additional rebates.