SPE8EH-16-R-0001_Amendment_0003.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 SPE8EH 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

SPE8EH16R0001

X

2016 MAY 12

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).

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

CONSTRUCTION & EQUIPMENT (FES)

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

PAGE OF PAGES

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.

CONTINUED ON NEXT PAGE

Questions & Answers: Fire & Emergency Services Equipment TLS Program SPE8EH-16-R-0001

1.) There are 26 equipment categories and a total of 100 items that the government is requesting that, “Offered unit prices shall be FOB Destination end unit prices for all locations worldwide. Prices must be submitted as one fixed price that includes all transportation costs.” In addition, the government provided a historical list of where previous purchases came from but cautions the Offeror that this is not a true indicator of future orders or locations and that new locations can be added by the government during the base and option periods of the FFP IDIQ contract.

Given that transportation costs are a function of weight and volume of the shipment as determined by the quantity of items being shipped, and the distance from the origin to the destination, why is the government requesting that transportation costs be included in the FFP Ceiling Price for each end item for the base and option periods when the government cannot determine either the quantity of items to be shipped for each line item, or the shipping destination/s to the Offeror? This approach would appear to disadvantage the small business by introducing shipping cost risk that could be avoided by having FFP Ceiling Prices for each line item and allowing the TLS contractor to separately bill the DLA Troop Support Center for each shipment. Would the government consider this as an alternative?

In this business scenario and model the Government must have some realistic way to evaluate and establish a baseline price. The shipping locations are based on actual usage data for the current generation of the F&ESE TLSP, so the Government is providing a realistic environment for Vendors to project transportation costs. Granted the Vendors will have to assume some risk when pricing items on an FOB Destination basis with transportation included, but under this business model the Government is seeking to award contracts to experienced integrators that have established worldwide transportation and logistics capability. Further, the items and quantities on the Price Evaluation List (PEL) are also based on usage data from the current F&ESE TLSP, so again the Government has provided a realistic environment for any potential offeror to submit a legitimate price proposal in response to this Solicitation that will be used for price evaluation.

Since the Government is asking offerors to submit price proposals that are valid for five (5) years in a Firm Fixed Price scenario, offerors should take into account possible price increases from suppliers for items with regards to material costs, packaging, labor, G&A, and other inflationary type adjustments coinciding with transportation.

- Answer: This approach has been tested and proven successful for Small Businesses as the current generation of the F&ESE TLSP is entirely supported by Small Business integrators. The established logistics footprint with key transportation carriers and freight forwarders is an expected characteristic for potential offerors.

2.) Fill-Rate requirement is 95% (quantity delivered versus quantity ordered for a particular line item) and 90% on-time delivery fill rate (quantity delivered on-time versus quantity delivered). Delivery requirements are Routine 30 days or less; Urgent 72 hours or less; Emergency 24 hours or less. In order to meet both the Fill-Rate and On-Time delivery Fill-Rate the TLS contractor would need to order and hold inventory for all 100 items listed on the PEL. Given the guaranteed minimums for the base and option periods, how does the government realistically expect the TLS contractor to meet these metrics when the government cannot provide either order rates, order quantities or order destinations? The amount of inventory that the TLS contractor would need to hold in order to meet the 90% on-time delivery fill-rate for routine, urgent and emergency orders would probably exceed the minimum guarantees for the base period and option periods. How does the government plan to ensure that these requirements do not cause unnecessary financial hardship on its small business TLS contractors? Does the government expect its small business TLS contractors to bear the financial burden of laying in inventory to support the 95% line item fill rate and the 90% on-time delivery fill rate?

- Answer: Any decision to hold inventory is a business decision that the potential offeror will need to make and that offeror will have to bear all risks associated with that decision.

3.) Competing future delivery orders among the various TLS contractors using Reverse Auction. By having the ceiling price include the F.O.B. destination end item price to include transportation, the government will cause an unintended consequence that is neither beneficial to the government or its TLS contractors. Since in

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SPE8EH16R0001-0003

a Reverse Auction, the lowest bidder wins, the consequence of using a reverse auction is that a reasonable margin on the item and the transportation costs that are embedded in the price are both eroded causing financial stress to the TLS Contractor. Since neither the government nor the TLS contractor can predict future events that may impact the price of fuel and thereby the cost of transportation, it is conceivable that under the government’s acquisition strategy it will potentially place its small business TLS contractors in severe financial stress in order to fulfill the TLS contract. What means or mechanisms will the government offer, use , or put in place to decouple transportation prices from the end item Ceiling Price, in the event there is a major escalation (more than 5%) in transportation costs during the base and option periods of the contract?

- Answer: Reverse Auction has proven an effect methodology for competing requirements, especially for items that may have had a price reduction based on various economic producer price index adjustments that may not have been realized by the Government in the Firm Fixed Price scenario. It is the resultant awardee’s responsibility to include all necessary risk when submitting prices during the Reverse Auction process. The Government will not be making any Economic Price Adjustments for any resultant contract.

4.) Customer Support and Technical Support- The solicitation states that the TLS Contractor must have Customer Support available 24/7 and “technical experts” available M-F 7:00am – 5:00pm local Philadelphia time. Will the Offeror be compliant to the solicitation if it uses subcontractors to meet and fulfill this requirement?

- Answer: Yes, provided they are readily available or accessible as the Solicitation requires.

5.) Customer Visits - Are these visits made to the TLS contractor facility? If so, costs are minimal to the TLS Contractor. If these are TLS contractor visits made to end-user sites all around the world then costs to TLS contractor are significant. How does Government plan to reimburse TLS Contractor for their travel expenses? The pricing sheet, Attachment 1 of the solicitation, does not request or provide a place for the travel costs to be captured. Since this is a FFP IDIQ contract how does the government want TLS contractor travel expenses to end-user sites all around the world quoted in its response to the solicitation?

- Answer: Customer visits are not required under the F&ESE TLSP, but as part of a general marketing concept it would behoove an awardee to interact with the worldwide customer base of DLA as a part of normal business practices. The Government will not reimburse any travel costs for an awardee.

6.) Evaluation Criteria- The government states, “the non-price evaluation factors (past performance and technical merit) are considered to be significantly more important than price. Past performance shall be considered more important than technical merit. Given the scope of the solicitation, would the government consider providing an extension of 30 days for proposal submissions?

- Answer: No, the Government does not anticipate providing an extension.

7.) On Attachment 2, you indicate the number of lines that historically shipped to specific zip codes. Can you provide a list of those line items and quantities for each of those items?

- Answer: No, this information is not available for public dissemination and not necessary for proposal submission.

8.) With regards to the Pricing References in the Non-Price section of the SOW:

SOW Section B.1.e:The solicitation indicates that “Volume I shall consist of the Non-price proposal, which must be devoid of all reference to cost or price.” However, there are a number of instances in the solicitation for non-pricing (i.e., Technical) requirements where pricing is addressed, as follows:

SOW Section 9d: “All TLS Contractors fill out the following information in identified spreadsheet fields:

“TLS Contractor’s name, delivery order number, job order number (if necessary), document number, delivery

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site, date of order, itemized list of supplies included in the shipment, quantity ordered, quantity shipped, burdened unit price and any special instruction shall be enclosed with each shipped order. The line item number(s) used in the order and confirmation will be duplicated on the packing slip. The prices shown on the packing list/slip must be identical to the order price ” This is for delivery orders.

SOW Section 16.b.4: “Ensure all purchase orders are based on authorized requisitions and include a complete and accurate history of purchase transactions to support vendor selected, price paid, and document the subcontract/purchase order files which are subject to Government review” Data we require to be available.

SOW Section 16.b.5: “Establish and maintain adequate documentation to provide a complete and accurate history of purchase transactions to support vendors selected and prices paid;

SOW Section 16.b.8: “Evaluate price, quality, delivery, technical capabilities, and financial capabilities of competing vendors to ensure fair and reasonable prices;”

Would the government clarify whether bidders are required to address these requirements in the non-pricing volume without mentioning price or cost, or will the instructions be modified to approve the mention of price or cost in the Non-Price Volume?

- Answer: These references to price, specifically mentioned here, are with regards to requirements post award. These are not requirements of an offeror’s proposal. All price information asked for in the above references is regarding delivery orders under a resultant contract, and information that the awardee must maintain during contract performance.

9.) To be consistent with procurement standards, would government allow the use of 10-point font for tables and 8-point font for graphics as long as the graphic is legible?

- Answer: Yes, 10-point font for table and 8-point font for graphics are acceptable providing it is legible.

10.) Does the government consider the double-sided to count as a single page or two pages towards the overall 100 page count?

- Answer: It will count as two (2) pages.

11.) To be consistent with procurement standards, would government confirm that the cover page of each volume and its table of contents are considered outside of page limits?

- Answer: Yes, it will be considered outside of the page limitation.

12.) How many RFQs were submitted per day last year?

- Answer: The estimate for number of RFQs sent out to the current TLS Vendors last year for the F&ESE TLS Program is between 0 and 30 per day. This range accounts for demand slowdown as well as when demands significantly increase, such as toward the end of the Government’s fiscal year. Any awardee must be prepared to handle fluctuations in demand during contract performance.

13.) .77 Under Price Proposal Evaluation Criteria #1 says “Only the supply items on the Price Evaluation List or acceptable alternates which are commonly offered by all of the offerors under consideration will be used to determine an offeror’s Total Evaluation Price.” Does this mean that no alternates will be evaluated against the requested PEL items, but in order for an alternate to be evaluated in the TEP, all offers would have to propose that same alternate item?

- Answer: No, all acceptable alternate items will be evaluated against the requested PEL items. For an alternate item to also be considered in the TEP, the line item needs to be commonly offered. This means that all offerors must submit an acceptable offer for either an alternate item or an exact item for that specific

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line item. Note that in the event that an offeror proposes an acceptable alternate and the exact item, the Government will use the lower priced item for price evaluation purposes.

14.) g 39 of the solicitation included DLAD 52.217-9017 requiring that Contractors solicit bids from at least two independent firms and keep all records for orders where the Contractor’s purchasing system was used to determine competition or justify that prices are fair and reasonable. Please explain any scenarios where this might be necessary during contract performance?

- Answer: As stated in the aforementioned clause, the Contractor is required to provide "access to all records and information pertaining to those items or services for which the Government is relying on the Contractor's purchasing system to determine that competition was obtained or to justify that prices are fair and reasonable. The Contractor shall maintain records subject to this clause for not less than 3 years after the contract final payment."

As stated in the solicitation, "All orders over the micro-purchase threshold will be competed among all awardees pursuant to the fair opportunity requirements of FAR 16.505(b), except the Government reserves the right to direct orders to a particular source under urgent circumstances, to meet contractual minimums, or to provide economy and efficiency as a logical follow-on to an order already issued in accordance with FAR 16.505(b)(2)."

Therefore, the preponderance of orders will be determined fair and reasonable by the Contracting Officer based upon competition amongst the F&ESE TLS Program contract holders. However, there may be cases (such as the exceptions to the fair opportunity requirements at FAR 16.505(b) or other urgent situations such as disaster relief, humanitarian assistance, etc.) where the Government will rely on the Contractor's purchasing system to determine that competition was obtained or to justify that prices are fair and reasonable.

Please note that the contractor is required to certify that all "items and services were competed or prices are justified as fair and reasonable in accordance with the requirements of FAR 15.4" and are required to maintain documentation to support this assertion for all purchases made under the F&ESE TLS Program as stated in DLAD 52.217-9017(e).

15.) ill the Government consider purchasing items that a TLS contract holder uses a sub-contractor to manufacture?

- Answer: If the TLS contractor has any ownership interest in a subcontractor manufacturer, an item manufactured by that subcontractor will not be purchased under this program. This would not allow for fair opportunity amongst all TLS contract holders.

16.) In what capacity would DoD EMALL be incorporated into the performance of this program?

- Answer: It is possible that the Government may determine that DoD EMALL will become the method of choice for day-to-day operation of the F&ESE TLS Program (as opposed to Bidwiser, KO Portal, etc.) for Delivery Order competition on a Post Award basis. At this time, there is no plan in place to implement this change;

however the Government may make this change at any time. If this change were to take place, F&ESE TLS Program contract holders would be given sufficient time and training in order to make the transition.

17.) Will awardees be given specific regions in which to compete?

- Answer: No, this generation of the F&ESE TLS Program provides worldwide support. Any resultant awardees would compete for all Delivery Orders, regardless of the delivery location.

18.) Can you please provide details regarding the Contractor Code of Business Ethics and Conduct and flow down clauses during performance of this contract?

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- Answer: Details regarding the Contractor Code of Business Ethics and Conduct can be found in the Caution Notice paragraph 15, FAR 3.1002(a) and FAR 52.203-13. Section 16 of the Statement of Work provides details on the ways in which the TLS Contractor’s purchasing system must meet the needs of flowdown clauses; it must “Ensure that all applicable purchase orders and subcontracts contain all flowdown clauses, including terms and conditions and any other clauses needed to carry out the requirements of the prime contract.” In addition to the clauses listed in FAR 52.212-5, all sourcing restrictions included in the RFP must flowdown to subcontractors. The Government will not be engaged in a contract with the TLS Vendor’s subcontractors;

therefore the TLS Vendor is responsible for any violation of these sourcing restrictions or any other provision or clause included in the TLS Vendor’s contract. The TLS Vendor is responsible to ensure that any and all clauses, terms, and conditions included in its contract flowdown to the subcontractor in order to carry out the requirements of the prime contract.

This requirement will apply to any and all items purchased from an awardee during the life of the contract, regardless of the exact contractual relationship between the prime and subcontractor (purchase order, contract, etc.).

19.) Please define how the offeror must provide 24/7 support, as stated in the Statement of Work.

- Answer: The exact nature of the organizational structure that the offeror determines is the best method of providing the support required under section 5 of the Statement of Work is the business decision of the offeror.

20.) Please confirm that no items manufactured by an awardee will be purchased under the F&ESE TLS Program.

- Answer: That is correct, no items manufactured by an awardee will be purchased at any time under the F&ESE TLS Program.

21.) If an awardee assembles a kit, but does not manufacture the items included in the kit, would it be purchased under the F&ESE TLS Program?

- Answer: If a kit is only sold by one specific awardee, or if the kit includes an item manufactured by an awardee, the kit will not be purchased under the F&ESE TLS Program.

22.) What are some of the ways in which the Government would discover that, for example, a subsidiary of an awardee were manufacturing items purchased under the F&ESE TLS Program?

- Answer: The Government will be engaging in constant market research during the life of the F&ESE TLS Program. Additionally, the Government will depend on the awardees, as they compete with each other for delivery orders, to report any improper business relationships, including a manufacturer that is owned (in whole or in part) by an awardee.

23.) Could you please identify where the “Special Instructions” section is in the RFP?

- Answer: This section is located in the Addendum to FAR 52.212-1.

24.) Please confirm that this contract is for F.O.B. Destination to include OCONUS locations.

- Answer: All items being procured on this contract will be on an F.O.B. destination basis. With the exception of CENTCOM locations, all awardees will be responsible for transportation to the customer’s location.

25.) How do we handle errors on the PEL such as discontinued items, lack of description, or incorrect part numbers?

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- Answer: All issues with the PEL, as raised by potential offerors, will be assessed by the Contracting Officer. The Contracting Officer will make a determination regarding these issues, and any items that need to be adjusted will be addressed in an amendment to the RFP.

26.) How many NSNs are managed under the F&ESE TLS Program?

- Answer: When DLA accepted NSNs from the General Services Administration, nearly 200 NSNs were supported under the F&ESE TLS Program in order to provide the immediate service that the U.S. Forest Service needed for the Wildland Fire Program. Two years later, DLA is in a much better position to have many of these items on individual long term contracts direct with some manufacturers. About 100 NSNs are managed currently with the F&ESE TLS Program.

It may be determined by the Government at a later date that other NSNs shall be managed under the F&ESE TLS Program. Any awardees will be made aware of any significant changes and will have the opportunity to competitively quote on any requirements under this program.

27.) How will NSN quoting work under the F&ESE TLS Program, specifically with regards to the Wildland Fire Program requirements?

- Answer: If NSN items are purchased under the F&ESE TLS Program in support of the Wildland Fire Program, the NSNs must be commercial products and will be competed amongst the F&ESE TLS Program awardees in the same way as any other requirement.

28.) Does shipping to a DLA Depot/Distribution Point require the use of Vendor Shipment Module?

- Answer: Yes, shipping to a DLA Depot/Distribution Point (such as for CENTCOM requirements), does require the use of Vendor Shipment Module. However, for Orders issued for the purposes of being inventoried by DLA at one (1) of its worldwide Distribution Depots, then VSM is not required. Any details regarding VSM usage on a particular delivery order during contract performance will be provided with that RFQ, as all RFQs state a ship-to location.

29.) Will a fair and reasonable determination be made by the Contracting Officer by line item or by vendor?

- Answer: A fair and reasonable determination will be made by the Contracting Officer for every ceiling price for each awardee. Additionally, the Contracting Officer will make a fair and reasonable determination on every order during the life of the F&ESE TLS Program. The only exception is that the Government reserves the right to auto-award requirements at the lowest ceiling price submitted by the F&ESE TLS Program awardees that falls below the micropurchase threshold (currently $3,500) if it is determined that this process in the best interest of the Government. This process is not currently in use.

30.) Is Proof of Delivery required on all orders, or just those over $100,000?

- Answer: Proof of Delivery is required to be maintained by awardees on all orders under the F&ESE TLS Program.

31.) With regards to Factor II – Technical Merit, Discussion Topic 1 found in FAR 52.212-1, “The offeror shall address its ability to supply each of the 26 product types or categories listed in the Statement of Work under Scope and Items Covered. “ The description under section 1 of the Statement of Work, Scope, and the product categories contained in section 2 of the Statement of Work, Items Covered, differ slightly. Please explain on what the offeror should focus on.

- Answer: The Government has an expectation that experienced distributors and product experts will submit proposals for this solicitation. The Government will be evaluating the offeror’s ability to provide a wide diversity of items during performance. Offerors shall address their ability to supply each of the 26 product types or categories listed under Items Covered as well as the categories listed in the scope description.

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32.) Please review the Past Performance Criteria that must be submitted by the offeror.

- Answer: A description of the Past Performance Criteria that must be submitted by the offeror can be found in the Addendum to FAR 52.212-1, II. PROPOSAL INSTRUCTIONS, FACTOR I – PAST PERFORMANCE. Here, a description of how many and what type of contracts shall be submitted by the offeror is given, as well as a description of the 16 elements that offerors must submit for each contract ( (a) through (p) ).

33.) Please review the Technical Merit information that must be submitted by the offeror.

- Answer: Offerors must utilize the Addendum to FAR 52.212-1, II. PROPOSAL INSTRUCTIONS, FACTOR II – TECHNICAL MERIT and the Addendum to FAR 52.212-2, II. TECHNICAL MERIT in order to determine what must be submitted by the offeror for Technical Merit. The offeror is responsible for providing adequate information to satisfy the requirements located in these two sections.

34.) Regarding PEL Line Item 031, EAGLE MODEL HA20G-GS SINGLE AXLE TRAILER, this trailer comes with different options; can you clarify on what options are required with this trailer?

- Answer: Pricing ought to be provided with no options included.

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