FSG 53 Solicitation Feedback Industry Day Questions & Answers.pdf

Source Selection Information – See FAR 2.101 and 3.104 For Official Use Only

FSG 53 Performance-Based Acquisition Support Strategy SPE4A5-20-R- 0150 Industry Questions and Answers. Answers are in red.

Alternative Basket

References: Section L.11.2 and Appendix A-Pricing and Total Evaluated Price (TEP) Model

Section L.11.2 indicates that “The TEP Pricing Model includes the following tabs:

Alternative List Pricing: DLA-provided historical pricing with input for optional percentage increase/decrease”

The version of the Appendix A-Pricing and Total Evaluated Price (TEP) Model file currently posted does not contain the Alternative List Pricing tab(s). Please advise.

To be added via amendment.

Evaluation Criteria

Reference: Section M.1.1

Section M.1.1 contains the partial sentence “and Past Performance Factors will be of equal importance.”

Please provide the completed sentence to clarify the Government’s intent.

Technical and Past Performance Factors will be of equal importance.

Evaluation Criteria

References: Section M.1, Section M.1.1 and 52.212-2 EVALUATION – COMMERCIAL ITEMS (OCT 2014) FAR [page 38 of the SF1449 – Main Solicitation].

Section M.1 indicates “A competitive Source Selection Trade-Off will be used”

Section M.1.1 states “Prospective offerors are forewarned that a proposal meeting solicitation requirements with the lowest price may not be selected if award to a higher priced proposal is determined to be the best value to the government.”

However, Section M.1.1 states: “In the trade-off decision the remaining non-price factors (Technical and Past Performance), when combined, will be significantly less important than price.”

Page 38 of the solicitation (52.212-2 EVALUATION – COMMERCIAL ITEMS (OCT 2014) FAR) states “Technical and past performance, when combined, are significantly less important than price”

If the combined Technical and Past Performance evaluations are significantly less important than price, it appears that the evaluation criteria for this solicitation is more closely aligned with a Lowest Price Technically Acceptable (LPTA) methodology. Please clarify the Government’s intended evaluation criteria for this solicitation. FSG 53 Performance-Based Acquisition Support Strategy SPE4A5-20-R-0150

In the trade-off decision the remaining non-price factors (Technical and Past Performance), when combined, will be significantly less important than price.

Transition

Reference: Section C

Section C.2.2 states “At the beginning of the Transition Period, the Contractor shall be ready to support Core, Extended, and Alternate item orders from DLA.”

Section C.2.1 states “The Contractor will conduct a kickoff meeting at DLA Aviation, Richmond within the first 30 calendar days of the Transition Period to discuss the gap analysis (Section 2.3(c)) and detail the proposed Transition Plan, including key milestones and timelines for completing Transition Plan deliverables.”

Section C.2.8 states “During the Transition Period, the Contractor shall complete the following system interface and integration activities and become operational in the IT systems outlined below.”

Given the timeline context of C.2.1, C.2.8, and other requirements of C.2.0, please clarify the phrase “At the beginning of” as stated in C.2.2.

At the beginning of signifies the effective date, which is the beginning of the Transition Period.

CLIN Structure

Given the current solicitation structure, it is assumed that all costs associated with transition and on-going management of this performance-based contract will be included in the line item material pricing provided in Appendix A.

Therefore, please confirm that the resulting award will be based on an “all or nothing” methodology for the entire population of 215,838 NIINs.

Yes, all or nothing, for the entire population.

DLA Current Performance

References: Section C.7.3.1

What is DLA’s current performance (material availability) on the core, extended and alternative market baskets?

Core: 89% MA

Extended: 93% MA

Buy Back Clause

Reference: Section C.9.1,2,3

The current buy-back clause results in low likelihood of inventory buyback, creating considerable risk for the contractor. Is it the government’s intent to have minimal to no buy-back?

The Government is committed to buyback a minimum of 6 months of actual demand with an option to increase to 12 months.

Are progress payments offered in this solicitation? No

If NSN's are covered under ITAR's, will they also be considered commercial? Yes

If the successful contractor is a small business and uses 100% small businesses, with the contractor be eligible for incentives? Yes

Where is the Industry Day to be held that the contractor is to hold during the Transition Period?

To be negotiated.

Who currently has this contract? This is a new requirement.

Section L, Page 12, Paragraph L.11.4: The price proposal shall contain the offeror’s executed clauses and provisions and the information at L.7, but the format for proposals chart references Volume 5, Solicitation and All Appendixes. Shall offerors include the solicitation and amendment fill-in within Volume 4 Price or a separate Volume 5?

L.11.4 will be deleted due to the explanation in L.7 as to the submission of the Volumes.

Section C, Page 30, Paragraph 10.5: Are offerors required to submit a Surge and Sustainment Plan via WICAP with proposals?

See SF 1449, Procurement Note L19.

Section L, Page 11, Paragraph L.11.2: Economical order quantities (EOQs) for items in the Core and Extended baskets shall be included in offeror’s proposals. How shall offerors submit the proposed EOQs and on what attachment? There is currently no template in the solicitation to propose EOQs for each NIIN.

Offerors must quote TEP for qty proposed. An EOQ spreadsheet will be added. EOQs will be evaluated and negotiations may be conducted to determine if a change will be made to the quantity listed in the TEP model.

Section L, Page 11, Paragraph L.11.2: Economical order quantities (EOQs) for items in the Core and Extended baskets shall be included in offeror’s proposals. Will Total Evaluated Price be calculated using the unit cost for the proposed EOQs?

No, unless through negotiation the EAD is modified to reflect the EOQ.

Section L, Page 11, Paragraph L.11.2: Offeror’s price proposal shall consist of percentage adjustment of DLA historical unit prices for items in the Alternative basket. How shall offerors submit the proposed percentage and on what attachment? There is currently no template in the solicitation to propose percentages for Alternative items. Also, please provide the DLA historical pricing for each NIIN that the proposed percentage would be applied to.

To be added via amendment.

Section L, Page 6, Paragraph L.9.2.3: Offerors shall accept or change Production Lead Times (PLTs) in Appendix B. How shall offerors submit the proposed PLTs and on what attachment?

There is currently no template in the solicitation to propose changed PLTs.

Offerors may use the Appendix B file to submit proposed PLTs for the Extended and Alternative baskets. Download the Appendix B Excel file and utilize Column F of Tabs “1-Extended Basket PLTs” and “2-Alternative Basket PLTs” to input the PLTs.

Section C, SOW:

a. SOW 2.2 - In the event delivery order(s) placed during the Transition Period were not filled at the start of the three-year base period, performance metrics outlined in Section 7.0 will apply.

Correct.

b. SOW 7.4 - DLA will track Contractor performance upon contract award, however, during the 180-day Transition Period, disincentives will not be applied.

Disincentives will become applicable for orders created on the first day of contract performance, after the 180-day Transition Period has ended.

c. Please confirm that orders are placed during the Transition Period and not filled are not measured against the performance metrics nor included in the disincentive calculation.

Correct, metrics and disincentives will not apply until the beginning of the base period (day after transition period ends).

Section C, SOW:

d. SOW 7.3.1 - Contractor performance of the Extended and Alternative basket shall be measured by On Time Delivery (OTD).

e. SOW 7.4 - Performance metrics will apply to all items in the Core and Extended baskets as outlined.

Will amend solicitation to add Alternative to this sentence.

f. Please clarify if any performance metrics apply to the Alternative basket.

Yes, 7.4 will be updated to include Alternative.

Section C, Page 16, Paragraph 7.5: If DLA owes the Contractor, a delivery order will be issued to the Contractor, in accordance with a service-type contract line item number (CLIN), for the monetary amount mutually agreed upon in the bilateral modification. Please provide an example or instance when DLA would owe the Contractor in relation to the performance metrics.

If the contractor’s small business performance yielded an incentive amount that exceeded the contractor’s disincentives for the period.

g. SOW 7.1 - For administrative purposes, 12-month performance periods will be established for the 3-year base period and the two, 3-year option periods.

h. SOW 8.2 - The Contractor shall provide spend data documentation supporting their utilization of small business for each three-month performance period.

i. Please clarify the performance period for performance metrics and small business metrics, is it 12 or 3-months?

Spend data for each 12 month performance period. Amendment will adjust 8.2.

j. SOW 9.1 - In the event of Government-initiated deletion of items or end of contract support, the Government will purchase residual and committed inventory up to 100% of the actual demand experienced in the six (6) months preceding buyback implementation.

SOW 12.0 - The Government reserves the right to purchase residual inventory and committed inventory up to 100% of the actual demand experienced in the 12 months preceding pipeline restocking implementation. However, the Government is only bound to purchase up to six (6) months of inventory.

k. Please clarify if the Government is bound to purchase up to six (6) months of inventory or the actual demand experienced in the six (6) months preceding buyback implementation at the end of the contract.

The Government will only be bound to purchase residual and committed inventory up to 100% of the actual demand experienced in the six (6) months preceding buyback implementation.

Section C, Page 13-14, Paragraph 7.2.3 – Please provide the rationale for implementing a disincentive if the Contractor exceed the 95% Performance Metric? Why is the Contractor not given an incentive when performance metrics are exceeded? The disincentive for exceeding the performance metric will encourage the Contractor to hold additional safety stock which will result in increased unit prices.

Please provide specific input as to the performance metrics based on industry standards to reduce costs while improving performance.

Reference: Core Basket - Core item NIIN 003071896, PIN,STRAIGHT, HEADED, appears on Appendix C list but not on the Core list in Appendix A. Please clarify if this item is to be included?

Only items in Appendix A are included in the requirement.

Reference: NIIN, 011730334, BOLT, CLOSE TOLERANC and NIIN, 014113857, BOLT, CLOSE TOLERANCE - Both of these NIINs are included in the Extended List in Appendix A, but have no data listed in Appendix C.

011730334 and 014113857 have been removed from the solicitation. Appendix A (TEP model) has been updated to match Appendix C.

Please confirm the NAICS code. The SF1449 lists NAICS 332510 but page 5, FAR 52.204-8 lists NAICS 332722. The NAICS is 332722.

Please provide the following data for the Core and Extended baskets. This data is required to determine stocking requirements and associated costs.

l. Requisition history for each NIIN

Core requisitions to be posted via amendment.

m. Current inventory on hand for each NIIN

The SOH for any of the baskets is not included in any of the Matrixes (Quality, Tech, Packaging, Inspection). Core requisitions to be posted via amendment as appendix I Current inventory on hand to be posted as appendix J

Section L, Page 5, Paragraph L.7.5 – Do all proposal volumes need to be submitted electronically on a separate CD, or only the Price Volume?

Only the price volume should be submitted via CD.

Section C, Page 4, Paragraph 1.1.1 - The CD requirement for TDD standards is based on DLAD 11.402-90, Time Definite Delivery (TDD) standards. Please confirm the TDD standards exclusions within DLAD 11.402-91 apply to Core items.

TDD standards exclusions within DLAD 11.402-91 do not apply to Core items.

Section L, Page 8, Paragraph L.9.4.1 - All Offerors (both large and small businesses) are required to provide a Small Business commitment proposal. 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. Offerors must 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). Is the total contract value considered 100% small business if the Prime is a Small Business? Does the Prime’s participation, as a small business, count toward the minimum 25% commitment? Also, does the Small Business Prime’s participation count towards the incentive to scale to 60%?

Yes, the total contract value is considered 100% if the prime is a small business. The prime’s participation counts towards the 25% commitment. The small business prime’s participation counts towards the incentive scale. The incentive scale proposed will be evaluated for affordability per Section M.4.2.4.

See file SPE4A520R0150 SF1149.pdf

DLA Collaboration Folders (C-Folders), p. 3

The web address provided, https://pcf1.bsm.dla.mil/cfolders, is non-responsive. Should it be https://pcf1x.bsm.dla.mil/cfolders/?

Both websites are accessible. C-Folders are also accessible through the DIBBS homepage under the Technical Data section with the link: DLA Collaboration Folders (cFolders).

As posted on DIBBS on 2/7/19, “DLA has enhanced its Joint Certification Program (JCP) registration and validation procedures. Selected National Stock Numbers (NSNs) will require additional permissions to access the associated technical data.” Which of the NSNs for this solicitation, if any, require these “additional permissions” to access the technical data in DLA cFolders?

This information is not visible to vendors.

Procurement Identification Description (PID), p. 3

The solicitation states: “Insert (copy and paste) text for the PID information here.” Will DLA be providing the PID data for all of the items in the Target Population?

Appendix C contains PID data in the form of Quality Matrix and Packaging Matrix and Tech/Supply Matrix. The information in these matrixes supply the PID. Within Appendix C are the Quality, Technical, Packaging, and Industrial Matrixes for each basket.

Clauses Added To Part 12 by Addendum

FAR 52.204-14 Service Contract Reporting Requirements (Oct 2016) and FAR 52.204-15 Service Contract Reporting Requirements for Indefinite-Delivery Contracts (Oct 2016), p. 11.

These clauses apply to service contracts, not supply contracts; therefore can DLA remove these clauses from the solicitation?

These clauses are included in 52,212-5, however, are not checked for inclusion.

FAR 52.211-16 Variation in Quantity (Apr 1984), p. 14.

Can the Government identify which NIINs are subject to the terms of this clause and the permissible increases and decreases?

None of the items are subject

Government property clauses: DFARS 252.211-7007 Reporting Of Government-Furnished Property (Aug 2012); FAR 52.245-1 Government Property (Jan 2017); FAR 52.245-9 Use And Charges (Apr 2012); DFARS 252.245-7001 Tagging, Labeling, And Marking Of Government- Furnished Property (Apr 2012); DFARS 252.245-7002 Reporting Loss Of Government Property (Apr 2012); DFARS 252.245-7003 Contractor Property Management System Administration (Apr 2012); DFARS 252.245-7004 Reporting, Reutilization, And Disposal (Dec 2017), p. 21 and 30.

What material will the Contractor acquire or will the Government furnish to the Contractor that will have to be managed as Government property under the contract? Section C does not describe any requirement to manage Government property.

The Quality Matrixes for all three baskets that are a part of Appendix C call out items requiring GOVT TOOL, GOVT MATL, GOVT PROP, and GOVT PROP/TOOL/STE in Columns W,X,Y, and Z, respectively. Further discussion will occur at industry day.

FAR 52.211-11 Liquidated Damages - Supplies, Services, or Research and Development (Sep 2000), p. 21.

What is the charge for liquidated damages per day of delay and will this amount be charged in addition to the late order disincentive?

No charge applies, performance disincentives will account for any delays.

FAR 52.216-19 Order Limitations (Oct 1995), p. 21.

The fill-ins are not completed. Can the Government provide the maximum order value per item, maximum order value for a combination of items, and minimum time span allowed for a combination of orders from the same ordering activity that together call for amounts that exceed the order maximums?

Min: 1 (or applicable EOQ), Max: 999,999,999 (look at demand)

DFARS 252.225-7001 Buy American and Balance Of Payments Program—Basic (Dec 2016) and DFARS 252.225-7001 Buy American and Balance Of Payments Program—Basic (Dec 2016), Alt I (Dec 2016), p. 26.

Since this acquisition covers end products subject to the Trade Agreements clause (see DFARS 225.401-70) and exceeds the clause’s dollar threshold for applicability can the Government remove DFARS clause 252.225-7001 from the solicitation and replace it with DFARS 252.225- 7021 Trade Agreements—Basic (Sep 2019)?

Clause 252.225-7001 will be deleted and replaced with 252.225.7021 via amendment to the solicitation.

Part 12 Provisions

FAR 52.225-12 Notice Of Buy American Requirement - Construction Materials under Trade Agreements (May 2014), p. 50.

Can the Government remove this provision since it only applies to solicitations for construction?

Yes

FAR 52.215-20 Requirements For Certified Cost Or Pricing Data And Data Other Than Certified Cost And Pricing Data (Oct 2010) and DFARS 252.215-7010 Requirements For Certified Cost Or Pricing Data And Data Other Than Certified Cost Or Pricing Data—Basic (Jul 2019), p. 52.

Can the Government remove these provisions since this solicitation is a competitive acquisition for commercial items? Are offerors required to furnish certified cost or pricing data with their proposals or if not what cost or pricing information must offerors furnish other than the information required by Section L to the solicitation?

No, we may request Data Other Than Certified Cost and Pricing Data, but we are not asking offerors to submit certified cost and pricing data with their proposal.

Section C

See file SPE4A520R0150 Section C Statement of Work.pdf

C.2.1 Transition Period, p. 5

The 6-month transition period is too short for a program of this magnitude and there is no contract CLIN to cover contract costs before the program reaches the full performance level.

The solicitation has no mechanism for offerors to price fixed costs required to support this program during the initial period of low and uncertain demand.

Request additional input for cost and time impacts.

Can the Transition period be extended to a minimum of one year and a Transition Fee CLIN be added for offerors to price estimated contract costs that will be incurred during the Transition period or until demand is stabilized and the contract is fully operational?

Request additional input for cost and time impacts.

With regard to the statement, “In the event the Contractor cannot become fully operational within the Transition Period, the contract will be subject to termination for convenience at no cost to the Government...”, can the Government affirm that the contractor will nonetheless be allowed to recover reasonable costs incurred in performance of work during the Transition Period in accordance with FAR clause 52.249-2, Termination for Convenience of the Government (Fixed Prices)?

We do not intend to permit cost recovery when termination for convenience is exercised in the event the contractor is not fully operational.

C.2.2 Transition Order Fulfillment, p. 5

Since the Contractor needs to use the Transition Period in order to establish the systems (including IT system interfaces with VSM and EDI), facilities, equipment, materials, and personnel to begin to receive orders under the contract, should the first statement be revised to state that the Contractor shall be ready to support Core, Extended, and Alternate item orders from DLA at the end of the Transition Period but may support orders on an individual NIIN basis at the Contractor’s discretion before the end of the Transition Period?

The Government’s intent is to provide orders for the contractor to fill on the first day of the contract. The Government assumes the contractor will have the ability to receive EDI orders from DLA at the start of the contract as EDI is an industry best practice. Please provide more detail on the downside of providing the orders to the contractor on the first day of the transition.

C.2.2 states: “In the event delivery order(s) placed during the Transition Period were not filled at the start of the three-year base period, performance metrics outlined in Section 7.0 will apply”. However, C.7.2 states: “Disincentives will become applicable for orders created on the first day of contract performance, after the 180-day Transition Period has ended.” Can the Government confirm that the late order disincentive will not apply to any order issued during the Transition Period?

The late order disincentive will not apply during the transition period. Once the transition period ends, all open orders and all future orders will be subject to the metric and applicable disincentives.

To allow for production lead times (PLTs), including the initial PLTs for Core NIINs, can the sentence in C.2.2 be revised to state, “In the event delivery order(s) placed during the Transition Period were not filled at the start of the three-year base period or by the applicable PLT date, whichever occurs later, performance metrics outlined in Section 7.0 will apply”?

The average PLT for the Core population is approximately 6 months. Therefore, the Government anticipated that industry would utilize the transition period to begin stocking any Core items on which it anticipated demands to meet TDD requirements immediately following conclusion of the transition period. Please provide additional specifics on the necessity for a full PLT prior to meeting TDD standards. If the Government were to drawdown inventory, then await a full PLT delivery for a Core item, it could be in a backorder position.

C.7.0 Performance Metrics, p. 10

Contract metrics and disincentives are inordinately stringent, especially for a first generation program of this magnitude, and substantially above DLA’s current performance for these NIINs.

Has DLA considered how these new metrics and disincentives will drive proposed prices higher and how comparing DLA’s current unit cost to proposed fixed unit prices will not provide an appropriate comparison and may not show the cost savings DLA needs to justify awarding the program?

DLA utilized industry standards for hardware in setting the performance metrics along with disincentives. Please provide additional details regarding the hardware industry performance standards.

C.7.4 Application of Metrics, p. 16

Can the Government confirm that one production lead time (PLT) will be allowed for Core NIINs (counting from the initial order placement date) before the CDA metric and late order disincentive are applied?

The solicitation does not currently contemplate allowing a one PLT for Core NIINs prior to applying the CDA metric and late order disincentive. Please provide additional rationale and industry standard.

C.10.3.1 Item Descriptions, p.24

C.10.3.1 states: “All materials delivered under this contract shall be provided in strict compliance with the applicable Procurement Item Description (PID) requirements.” Will DLA be providing PID requirements for all NIINs in the solicitation or are all applicable PID requirements contained within Appendix C?

All applicable PID requirements are captured in Appendix C. If there is information missing from Appendix C, please let us know, and we will pull and provide the applicable PID requirements.

C.10.3.2 Source Control or Qualified Products List, p. 24

Which items (NIINs) require QSLM/QSLD or can you point out where it is indicated in Appendix C?

Items with AMSC codes B, C or T require QSLM/QSLD. This information is found in Appendix C, Technical Tab, column E for each market basket.

C.10.3.8 Product Quality Deficiencies & Supply Discrepancies, p.27

The process described in C.10.3.8 appears to require the Contractor to interact directly with DLA’s customer and WebSDR, bypassing the DLA Product Specialist. Is this the Governments intent?

Further discussion will occur at industry day

C.10 states: “The Contractor shall utilize VSM to coordinate all shipments for all NSNs in the entire target population.” C.10.3.8 states: “The Contractor shall be responsible for picking up and correcting or replacing any material requiring correction or replacement, and for delivery of conforming goods to the customer.”

Does the Contractor subcontract to a commercial carrier or other agent to pick up material requiring correction or replacement from a deployed unit then ship corrected or replacement material to the unit, or will VSM and Government transportation be used to pick up material requiring correction or replacement then ship corrected or replacement material?

Further discussion will occur at industry day.

C.10.3.9 Warranty and Item Returns, p. 28

C.10 states: “The Contractor shall utilize VSM to coordinate all shipments for all NSNs in the entire target population.” C.10.3.9 states: “The Contractor shall accept Item Returns for shipping errors, damage or loss upon delivery within 30 days of date of delivery when Item Returns have been reported within 10 days of the delivery date.”

Further discussion will occur at industry day.

Given the application of FOB Origin terms in the contract and use of VSM and Government transportation for all shipments, the Contractor has no liability for damage or loss of material following pickup by the Government’s carrier. Therefore, with Item Returns, how will the Contractor be reimbursed for costs of replacement material and associated shipping costs for material damaged or lost in shipment by the Government’s carrier?

For item returns that are due to a product defect or another reason covered under the warranty, the contractor will be responsible for the cost of providing the appropriate remedy.

Section H

See file SPE4A520R0150 Section H Special Contract Requirements.pdf

EPA Indices, p. 1

The EPA Indices used for all NIINs except O-rings are stock price and commodities futures indexes, which are extremely volatile and do not directly relate to end item prices. For example, from 2014 to 2015 the NYSE American Steel Index decreased by 36.3% and from 2016 to 2017 it increased by 42.4%. Will the Government consider alternative indexes (e.g. producer price indexes) that instead measure market price changes of applicable finished goods?

Following contract award, should the contractor or contracting officer find that any of the EPA indices consistently and substantially fail to reflect market conditions, can the parties negotiate an appropriate and comparable substitute?

Request recommendation of appropriate and comparable substitute.

Section L

See file SPE4A520R0150 Section L Instructions to Offerors.pdf

L.6 Preparation of Proposals, p. 3

Where is this contributor information to be placed in the proposal submission? As an Appendix in Volume 5?

Yes, that is acceptable.

L.9.2.1, p. 6

Due to the detail needed for the Contractor Transition Plan per SOW Section 2.3, and considering the criticality of the document in forming part of the awarded contract, can the Contractor Transition Plan be submitted outside the proposal page count as an Appendix to Volume 2?

Please provide the anticipated additional pages you anticipate would be needed for a thorough response.

L.9.2.3, p.6

Where can offerors propose initial Production Lead Times (PLTs) for Core NIINs? The initial PLT applies to the first order placed for a NIIN under the contract to allow time for initial production and stocking of each NIIN once demand for the item is initiated.

Request additional information pertaining to need for initial PLTs for ramp up.

L.9.3.1, p.7

The solicitation states: “The proposal must include a copy of its current quality standard.”

What is meant by “its current quality standard”? Should offerors submit a copy of their ISO 9001 certification referenced in C.10.3.7, their Quality Management System Manual, or something else? Can this documentation be submitted outside the proposal page count as an Appendix to Volume 2 or 5?

Requesting a copy of current certification along with applicable process to ensure quality. How many pages would be needed for a complete response?

L.9.4.1(5), p. 9

The solicitation states: “Include at a minimum, the two (2) most recent Summary Subcontract Reports (SSR).” Can the SSRs be submitted outside of proposal page count as an Appendix to Volume 2 or 5?

Yes, the SSRs may be submitted as an appendix to Volume 2.

L.9.4.1(6), p. 9

How is the Total Contract Value (TCV) to be calculated for the Small Business commitment proposal?

Utilize the TEP

L.9.4.1(6), p. 10

The solicitation states: “… Offerors are required to submit a subcontracting plan….”

Can the Small Business Subcontracting Plan be submitted outside of proposal page count as an Appendix to Volume 2 or 5?

Yes, that is acceptable.

L.11.2, p. 11

Where does Contractor include EOQ’s in pricing? How are EOQ’s evaluated, and how are they used to calculate the TEP?

A separate attachment will be provided to indicate EOQs. EOQs will be subject to negotiation.

If the EOQ is found to be the optimal quantity for purchase, the Government may choose to amend the EAD in the TEP to reflect the EOQ through negotiations. If not, the Government may proceed at the price and EAD as proposed in the TEP, while also including the improved EOQ quantity and pricing in the final award.

Where can offerors find Alternative List Pricing and where can offerors propose percentage increases or decreases to Alternative List Pricing? Appendix A does not include any Alternative List Pricing or place to propose percentage increases or decreases.

To be provided.

How is the offeror’s proposed percentage increase decrease to Alternative List Pricing used in calculating the TEP? The TEP calculation in Appendix A does not include any value for Alternative List Pricing.

To be provided.

Section L 11.2 references an “All or None provision” in the solicitation. Where is that provision?

Section L.11.2 will be amended to remover the word provision. Offerors are required to quote all items.

L.11.5, p. 12

It is not commercially possible for offerors to submit proposed prices and confirm or propose different production lead times for nearly 21,700 Extended basket NIIINs within any reasonable timeframe. Can DLA use an alternative pricing methodology for the Extended basket NIINs?

What time frame would be possible to bid 21,700 NIINs? What population could be bid in 120 days for the Extended basket? What criteria would you recommend for extended basket items to be discreetly priced and what criteria would you recommend for extended basket items to be priced using the alternative pricing methodology? Would the criteria depend on the EAD?

L.11.6, p. 11

DLA did not provide historical price or demand for Alternative basket NINs. When will this information be provided and what will be the basis for the historical prices when provided (e.g.

SUP, MAUC, last acquisition price)?

To be provided

Will contract prices for Alternative basket NIINs be subject to economic price adjustments like the Core and Extended basket NIINs? Will historical Government prices for Alternative basket NIINs be made current for contract pricing purposes by applying economic price adjustments to them?

Alternative pricing will be subject to EPA. Alternative basket NIINs will be adjusted by applying economic pricing adjustments to present day.

Due to the infrequency or lack of demand for Alternative basket NIINs and sheer quantity to evaluate for proposing percentage increases/ decreases, can the Alternative basket be excluded from the total evaluated price and be supported post-award on a spot buy basis only?

The alternative basket will be posted. Please review and provide additional feedback.

Section M

See file SPE4A520R0150 Section M Evaluation Factors for Award.pdf

M.1.1 , page 1

Due to the magnitude and complexity of this program, selecting the offeror with requisite experience, capability, and resources is essential for program success. Accordingly, it seems that Technical and Past Performance factors, when combined, should be more important than price in the best value trade-off decision, not significantly less important. Will the Government reconsider?

The Government may consider additional information regarding rationale of relative importance of Technical and Past Performance factors, when combined. Please provide additional rationale.

Additional Questions Asked During Solicitation Feedback Industry Day 04 February 2020

Answers are in red

Product Item Description (PID)

Some PID’s are inaccurate. How will DLA manage items to ensure that PID data is accurate?

- DLA requests feedback from industry where there are discrepancies.

- Submit to Tracy.Ruland@dla.mil and CC Randall.Dortch@dla.mil

How will data be updated after contract award? If data changes it may affect prices.

- DLA will provide periodic data updates for items on the contract.

Given that there may be inherent issues that potential primes and their subs may not be familiar with, DLA is now asking current suppliers (who may not be asked to be a sub) to provide feedback on PID discrepancies.

- This effort is no different than tactical procurements where DLA issues a solicitation, PID discrepancies are identified by potential offerors and DLA updates/amends as necessary.

Posting of Solicitation (DIBBS)

DIBBS solicitation only reflects one item and does not point potential offerors to beta.sam.gov.

This has put some potential offerors 6-8 weeks behind.

- DLA will update SPE4A5-20-R-0150 to point everyone to the DIBBS site, however, DIBBS only holds the SF 1449 solicitation document. Full solicitation documentation and data are posted to beta.sam.gov, under Contract Opportunities.

Disincentive Structure

Is there currently a disincentive structure that is applied to this population of items?

- No, DLA currently requests consideration on individual orders when requirements are not met.

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Available Data for Forecasting

With this effort being LPTA where price will outweigh the Technical/Past Performance and offerors will need to build in cost in the unit prices to operate, what data is available for forecasting?

- DLA will provide requisition history, stock on hand, and backorder data.

- Additionally, DLA seeks input from industry as to what additional data is needed.

Economic Order Quantities (EOQ)

Opportunities exist for primes to provide EOQs Use of Small Businesses

Will you clarify that DLA stated that primes will be looked upon more favorably when they use their own “pool of small businesses” instead of building new relationships?

- DLA did not state that it will look favorably upon Primes who use their own small businesses, rather, DLA stated that it is seeking Primes to provide a plan that specifies their level of commitment to (growing) small business.

What oversight will be in place to ensure that small business goals are tracked appropriately?

What oversight will occur?

- Small business achievement will be tracked order by order. The contractor will provide a report to DLA of all orders and small businesses utilized for tracking. If the contractor is a large business, their subcontracting plan will also be monitored by DLA and DCMA.

Has there been any consideration to more significant disincentives for not meeting the Small Business Commitment metric.

- The SB disincentives were balanced with an incentive, and the intent is to promote small business utilization beyond the goal stated in the metric through this industry day as well as the industry day to be held by the awardee immediately following contract award.

Is use of eSRS required for large businesses?

- Yes

How is DLA promoting SB opportunities?

- Industry day, networking sessions with the primes, providing DLA SB historical sources to primes, providing the AMPL with SB mfg sources to primes, SB commitment plan requirements.

How is the SB commitment plan subfactor rated in the evaluation under Technical?

- The SB participation plan is rated equally to the other subfactors in the technical evaluation.

Items Currently on Long Term Contracts (LTCs)

With the Transition Period as a time for DLA to burn down inventory, what happens if there are items that are currently on long term contract (for 3-5 years)? Will option periods not be exercised?

- DLA will meet the minimum ordering requirements of LTCs in place, when the minimum requirements are exhausted, DLAs intent is to utilize the FSG 53 contract.

Transition

How will large businesses start the qualification process with SB given the short ramp up time for transition?

- DLA’s historical SB sources were provided to the primes. They will utilize their internal quality systems which are likely similar to the DLA quality requirements to qualify sources.