Amendment_0003_SPM2DE12R0005.pdf

STANDARD FORM 36 (WP)

CONTINUATION SHEET

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AMENDMENT 0003 SPM2DE12R0005

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NAME OF OFFEROR OR CONTRACTOR

ITEM NO.

SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUN

4. Clause 52.216-30 ECONOMIC PRICE ADJUSTMENT – DEPARTMENT OF LABOR PRICE INDEX (NOV 2011) is being added to solicitation to replace 52.216-9045 and 52.216-9047. Full text follows. Also see Page 4 of this amendment for full text of clause 52.216--9036 EVALUATION OF OFFERS - ECONOMIC

PRICE ADJUSTMENT.

52.216-30 ECONOMIC PRICE ADJUSTMENT – DEPARTMENT OF LABOR PRICE INDEX (NOV

2011)

(a) Warranties. The Contractor warrants that--

(1) The base unit prices set forth in the Schedule do not include allowances for any portion of the contingency covered by this clause; and

(2) The prices to be invoiced shall be computed in accordance with the provisions of this clause.

(b) Definitions. As used throughout this clause--

(1) "Price index" for the purpose of price adjustment under this clause shall be the producer price index(es) reported in the monthly publication entitled, “Producer Price Indexes”, published by the United States (U.S.)

Department of Labor (DOL), Bureau of Labor Statistics (BLS) for the following code number(s) and title(s):

PCU339113339113 Surgical Appliance and Supplies Manufacturing

(2) "Base price index" is the arithmetic average of the final version of the indexes published for the two months preceding the closing date for receipt of proposals or the date required for receipt of final proposal revisions, if discussions were held.

(3) "Adjusting price index" shall be the two month arithmetic average of the index first published for the two months prior to the month in which the adjusting contract modification is effective.

(4) "Base unit price" is the unit price applicable to a quantity of a contract line item established at contract award, exclusive of any price adjustment pursuant to this clause.

(5) “Adjustment period” is the period during which a particular adjustment to the unit price under this clause (calculated at the beginning of the adjustment period) will be applicable. The length of each adjustment period in months shall be calculated by dividing 12 by the number of adjustments allowed per year in (c)(1) below.

(c) Adjustments. Prior to the end of each adjustment period, the Contracting Officer shall calculate the adjusting index and any adjusted contract unit price(s) for the new adjustment period, and modify the contract accordingly. Price adjustments pursuant to this clause shall be made by contract modification, issued by the Contracting Officer and will show the base price index, the adjusting price index, the base unit price, the mathematical calculations, and the changed unit price(s). The price adjustment shall be applicable to orders

[Type text]

NSN 7540-01-152-8057 50336-101 OPTIONAL FORM 336 (4-86)

U.S. GOVERNMENT PRINTING OFFICE 1990 - 262-081 Sponsored by GSA

FAR (48 CFR) 53.110

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issued after the effective date of the contract modification establishing the unit price for the adjustment period.

The price adjustment(s) for each adjustment period will be based on the percentage change between the base price index and the adjusting price index for the adjustment period, as applied to the base unit price.

(1) The Government shall be entitled to a price decrease in any particular adjustment period if the adjusting price index is less than the base price index. There shall be __1___ price adjustments per contract year.

(2) Example of adjustment calculation:

Base Price Index = 109.88*

Adjusting price index = 112.72*

Less base price index = 109.88

Change to index = 2.84

Divide change to index by base price index = 2.84 / 109.88 = .02585 (2.585%)**

Multiply by the base unit price = $50.00 x .02585 = $1.29***

= Unit Price Adjustment

Adjusted unit price = $51.29

* In computing the base and adjusting price indexes, the resulting figure shall be rounded to the second decimal place.

** This figure shall be rounded to the fourth decimal place.

*** All dollar figures shall be rounded to the nearest cent.

(d) Upward ceiling on economic price adjustment. No upward ceiling shall apply under this economic price adjustment clause, unless the BLS series is based on indices below the six-digit level (an index “below the six-digit level” in BLS usage means an index whose identifier exceeds six-digits).

For any BLS series that is below the six-digit level, the following ceiling shall apply: The Contractor agrees that the aggregate of the increases in any contract unit price under this clause shall not exceed 10% (percent) of the original base unit price, except as provided hereafter.

(1) If at any time the Contractor has reason to believe that within the near future a price adjustment under the provisions of this clause will be required that will exceed the adjustment ceiling for any item, the Contractor shall promptly notify the Contracting Officer in writing of the expected increase. The notification shall include a revised ceiling the Contractor believes is sufficient to permit completion of remaining contract performance, along with appropriate explanation and documentation as required by the Contracting Officer.

NSN 7540-01-152-8057 50336-101 OPTIONAL FORM 336 (4-86)

U.S. GOVERNMENT PRINTING OFFICE 1990 - 262-081 Sponsored by GSA

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(2) If an increase in the price index would raise a contract unit price for an item above the current ceiling, the Contracting Officer may issue a contract modification to raise the ceiling. If the contract ceiling will not be raised, the Contracting Officer shall so promptly notify the Contractor in writing.

(e) Invoices. The prices payable under this contract will be based on the latest adjusted unit price incorporated into the contract as of the date of order.

(f) Retroactive adjustment. The Contractor may request a retroactive adjustment for orders that have been delivered during an adjustment period for which payment has already been made, based on the difference between a higher final revised index applicable to an adjustment period and the index values used in calculating the unit price for that adjustment period, and subject to the adjustment ceiling in (d) above and when the following conditions are met:

(1) The request for equitable adjustment clearly establishes that the unit price adjustment for the adjustment period would have been higher if the final revised index had been used, and identifies all invoices and payments to which it is applicable, cites the specific index differences relating to the requested adjustment, and provides a calculation of the total net price adjustment for items delivered during that adjustment period.

(2) No retroactive equitable adjustment shall be made under this clause unless the total dollar change for items delivered is $500.00 or more for the applicable adjustment period(s).

(3) The Contractor’s written request must be received by the Contracting Officer within 45 days following publication of the final revised index.

The Government shall be entitled to a downward adjustment based on the difference between a lower final revised index applicable to an adjustment period and the index values used in calculating the unit price for that adjustment period, subject to the limitation in paragraph (f)(2).

(g) Revision of price index. In the event –

(1) Any applicable price index is discontinued or its method of derivation is altered substantially; or

(2) The Contracting Officer determines that the price index consistently and substantially fails to reflect market conditions, the parties shall mutually agree upon an appropriate and comparable substitute and the contract shall be modified to reflect such substitute effective on the date the price index was discontinued, altered, or began to consistently and substantially fail to reflect market conditions.

(h) Final invoice. The Contractor shall include a statement on the final invoice that the amounts invoiced hereunder have applied all decreases required by this clause.

(i) Disputes. Any dispute arising under this clause shall be determined in accordance with and subject to the “Disputes” clause of the contract.

(End of Clause)

NSN 7540-01-152-8057 50336-101 OPTIONAL FORM 336 (4-86)

U.S. GOVERNMENT PRINTING OFFICE 1990 - 262-081 Sponsored by GSA

(CONTINUED) PAGE 5 AMENDMENT 0003 SPM2DE12R0005

52.216-9036 EVALUATION OF OFFERS - ECONOMIC PRICE ADJUSTMENT (FEB 2009)

(a) Offers in response to solicitations will be evaluated without adding any amount for economic price adjustment unless the economic price adjustment (EPA) clause included in the solicitation provides for offerors to specify the portion of the contract price subject to EPA. In this case, the offered price(s) subject to the EPA lause will be adjusted to the maximum possible extent under the EPA using the price ceiling limitation provision of such clause for the basic contract plus all options covered by the evaluation. The resulting price(s) will be used for evaluation of offers.

(b) If a successful offeror stipulates a lower maximum increase limitation then that included in the solicitation, it will be incorporated into the resulting contract.

(c) Offers which (1) increase the maximum ceiling percentage specified in the solicitation, (2) stipulate a maximum decrease limit, or (3) delete or otherwise alter the economic price adjustment clause, will not be considered for award, unless the Contracting Officer determines that award on such basis is in the best interests of the Government and all Offerors are afforded an opportunity to offer on the same basis.

(End of Clause)

5. Page 54 of solicitation is hereby amended as follows:

- Paragraphs (7) and (8) are deleted and replaced with the following:

(7.) All confirmed orders must be delivered to receiving facilities between the hours of 8:00 A.M. and 4:00 P.M., local time of the receiving facility, Monday through Friday, excluding holidays. The contractor shall make delivery in one of the following ways:

(A.) Contiguous United States (CONUS): Defined as facilities located in the 48 contiguous States and the District of Columbia.

(i.) General Products – Defined as any item that is generally stocked or commonly available off-the-shelf in the commercial market.

(a.) Emergency Orders - For emergency orders, the contractor shall deliver within 24 hours of receipt of order, provide emergency service 24 hours per day/7 days per week, and provide each ordering facility with a telephone number and/or pager number of the contactor’s representative responsible for expediting this service.

Customers will be responsible for the extra charges for transportation and these will be negotiated between the contractor and the Government prior to acceptance of any order by the vendor. Emergency order procedures will involve the user utilizing the ECAT application to initially generate the delivery order number, then coordinating and confirming stock availability, delivery and price with the vendor telephonically.

(b.) Routine/Regular orders – For Routine/Regular orders, the contractor shall specify the delivery lead-time from order placement for each item being offered in their ECAT catalog. The contractors shall determine the delivery lead-time based on meeting such time for any CONUS delivery site. The Government’s desired

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U.S. GOVERNMENT PRINTING OFFICE 1990 - 262-081 Sponsored by GSA

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delivery is a maximum of 7 days for CONUS facilities. Deliveries will be made between the hours of 8:00 A.M. and 4:00 P.M. local time, Monday through Friday, excluding Federal holidays.

(ii.) Special Order Items - Defined as any item that is not generally stocked or is not normally available off-the-shelf in the commercial market. The contractors shall determine the delivery lead-time based on meeting such time for any CONUS delivery site. The Government’s desired delivery is a maximum of 22 days for CONUS facilities. Deliveries shall be made between the hours of 8:00 AM and 4:00 PM local time of the receiving activity, Monday through Friday, excluding Federal holidays.

(iii.) Assembly/System – Defined as any item that requires special assembly by the manufacturer or vendor.

The contractors shall determine the delivery lead-time based on meeting such time for any CONUS delivery site. The Government’s desired delivery is a maximum of 45 days for CONUS facilities. Deliveries shall be made between the hours of 8:00 AM and 4:00 PM local time of the receiving activity, Monday through Friday, excluding Federal holidays.

(B.) Outside Contiguous United States (OCONUS): Defined as facilities located outside the 48 Contiguous United States and the District of Columbia.

(i.) General Products – Defined as any item that is generally stocked or commonly available off-the-shelf in the commercial market. There are no emergency orders for OCONUS delivery locations due to premium transportation charges. Contingency orders are placed by Medical Readiness Division. The contractors shall determine the delivery lead-time based on meeting such time for an OCONUS delivery site. The Government’s desired delivery is a maximum of 15 days for OCONUS facilities. Deliveries will be made between the hours of 8:00 A.M. and 4:00 P.M. local time, Monday through Friday, excluding Federal holidays.

(ii.) Special Order Items - Defined as any item that is not generally stocked or is not normally available off-the-shelf in the commercial market. The contractors shall determine the delivery lead-time based on meeting such time for any OCONUS delivery site. The Government’s desired delivery is a maximum of 30 days for OCONUS. Deliveries shall be made between the hours of 8:00 AM and 4:00 PM local time of the receiving activity, Monday through Friday, excluding Federal holidays.

(iii.) Assembly/System – Defined as any item that requires special assembly by the manufacturer or vendor.

The contractors shall determine the delivery lead-time based on meeting such time for any OCONUS delivery site. The Government’s desired delivery is a maximum of 60 days for OCONUS.. Deliveries shall be made between the hours of 8:00 AM and 4:00 PM local time of the receiving activity, Monday through Friday, excluding Federal holidays.

(8.) All pricing shall be FOB Destination. However, The Government may provide the OCONUS transportation on non-hazardous products through DoD’s transportation contract if it is determined based on the vendor offer to be the lowest cost alternative to the Government. This decision is at the sole discretion of DLA Troop Support. DLA Troop Support will utilize third party commercial carriers that will pick-up shipments at the vendor’s shipping dock. The items shall be packaged for overseas delivery in accordance with the requirements

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U.S. GOVERNMENT PRINTING OFFICE 1990 - 262-081 Sponsored by GSA

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outlined in this solicitation. Contractor shall determine the delivery lead-time from order placement to the time when the order is on the contractor’s distribution center dock for transportation by the Government’s supplied carrier. The Government’s desired delivery is a maximum of 5 days for all orders, excluding holidays and weekends. The contractor’s distribution center dock must be located in the United States. Any vendor who utilizes DoD’s transportation contract for the OCONUS region must be a “known shipper” as required by the Aviation and Transportation Security Act of 2001. Evidence that a vendor is classified as a known shipper is required prior to award of any contract that contains products that will utilize DoD’s transportation contract. The contactor shall perform the following actions for each shipment prior to pick-up by the Government-supplied carrier.

a. Commercial Bill of Lading (CBL): The contractor shall prepare a CBL for each shipment.

The document can be the same or similar to the one that the contractor uses for commercial shipments; however, the CBL/manifest must identify the critical shipment information as well as the contents of the shipment. The contractor shall provide a hard copy of the CBL/manifest to the Government-supplied carrier.

b. The contractor shall notify the Government-supplied carrier for cargo pick-up.

c. The contractor shall include a Government Bill of Lading (GBL) for each shipment for customers located in Korea. When a Contractor receives an order for Korea, they must contact Wanda Thomas at (215)737-7395 (wanda.l.thomas@dla.mil ) or Beverly Powell-Lee at (215) 737-7182 (beverly.powell-lee@dla.mil ) to obtain a supply of pre-printed GBLs.

GBL’s are mailed to the contractor. GBL’s are pre-printed with the customer information;

the contractor just needs to hand write the pieces, weight and cube on the GBL. A commercial GBL still must be completed for each Korea shipment; the GBL is required for Korea customers only.

d. Prior to placement of the first order under the contract, the contractor will be informed in writing of the Government carrier(s) assigned to the contract. The contractor will be informed of any change in the Government carrier(s) by DLA Troop Support before the change. During the term of the contract, the Government reserves the right to change the transportation arrangement cited above, either in whole or in part.

e. The contractor must notify the Government-supplied carrier for cargo pick-up between the hours of 8:00 AM and 4:00 PM local time, Monday through Friday, excluding holidays.

f. The weight limitation for packages offered for shipment to OCONUS must not exceed 300 pounds, total weight (includes actual and dimensional weight), including packaging.

Any such items would be included under a separate OCONUS catalog and have acceptance and inspections occurring at Destination.

6. Page 86 of the solicitation is hereby amended as follows:

- Paragraph (1) is hereby deleted and replaced with the following:

mailto:wanda.l.thomas@dla.mil mailto:beverly.powell-lee@dla.mil

NSN 7540-01-152-8057 50336-101 OPTIONAL FORM 336 (4-86)

U.S. GOVERNMENT PRINTING OFFICE 1990 - 262-081 Sponsored by GSA

(CONTINUED) PAGE 8 AMENDMENT 0003 SPM2DE12R0005

(1.) All prices shall be FOB Destination, inclusive of transportation, handling costs and/or any additional fees.

The vendor must provide the percentage applied to the product price for transportation for all non-hazardous products. If after evaluation of the offered pricing for the non-hazardous products DLA Troop Support determines that it would be less costly for the Government to provide the OCONUS transportation through DoD’s transportation contract, pricing (devoid of OCONUS transportation costs) may be requested from the vendor during contract negotiations. Pricing shall be inclusive of overseas packaging cost, handling cost and any additional cost(s) or fees to destinations outside the 48 contiguous states. After contract award, there will be no allowance for additional costs or fees.

7. Page 94 of the solicitation is amended as follows:

- 3. Paragraph (b)(6) revised to replace third paragraph and include the following

The OCONUS price for all non-hazardous products shall be the ECAT offered price, FOB Destination inclusive of all packaging, shipping and handling costs to destination outside the 48 contiguous United States. The vendor must provide the percentage applied to the product price for OCONUS transportation for all non-hazardous products. If after evaluation of the offered pricing for the non-hazardous products, DLA Troop Support determines that it would be less costly for the Government to provide the OCONUS transportation through DoD’s transportation contract, pricing (devoid of OCONUS transportation costs) may be requested from the vendor during contract negotiations. Pricing shall be inclusive of overseas packaging cost, handling cost and any additional cost(s) or fees to destinations outside the 48 contiguous United States. This decision is at the sole discretion of DLA Troop Support.

The OCONUS price for all hazardous products shall be the ECAT offered price, FOB Destination to the designated military air terminal. The pricing shall be inclusive of overseas packaging cost, handling cost and any additional cost(s) or fees to destinations outside the 48 contiguous United States. The pricing for all hazardous products should be devoid of OCONUS transportation costs.

Offerors are invited to submit separate OCONUS price catalogs for different OCONUS regions, i.e., Alaska and Hawaii, Japan, Korea, Guam, Europe, Southwest Asia, etc. The offeror may decide which destinations to price in a particular catalog. The intent is for the Government to receive the best price possible for overseas shipments.