Amendment 4 - PDF FINAL.pdf

SPM300-11-R-0063 Page 1 of 4 Amendment 0004

SPM300-11-R-0063 Page 2 of 4

Pages 151, 163, and 169:

Delete:

“Aggregate Distribution Price”

Substitute the following:

“Weighted Aggregate Distribution Price”

Page 174 Component I. Aggregate Distribution Price:

Delete:

COMPONENT I. Aggregate Distribution Price

Component I, Aggregate Distribution Price, is obtained by multiplying each distribution price in the Market Basket by its estimated quantity, and totaling the results for all distribution prices, standard and non-standard, for each Tiered Pricing Period.

Substitute the following:

COMPONENT I. Weighted Aggregate Distribution Price

Component IA, Aggregate Distribution Price inclusive of Private Convoy Security (Attachment

2) is obtained by multiplying each distribution price in the Market Basket by its estimated quantity, and totaling the results for all distribution prices, standard and non-standard, for each Tiered Pricing Period.

Component IB, Aggregate Distribution Price exclusive of Private Convoy Security (Attachment

4) is obtained by multiplying each distribution price in the Market Basket by its estimated quantity, and totaling the results for all distribution prices, standard and non-standard, for each Tiered Pricing Period.

Component I, Weighted Aggregate Distribution Price, is obtained by totaling the results of Components IA and IB, and then multiplying the resulting number by 0.50, for evaluation purposes only.

SPM300-11-R-0063 Page 3 of 4

Page 174, Total Evaluated Price:

Delete:

Total Evaluated Price

The Aggregate Distribution Price (Component 1) is more important than Aggregate Product Prices (Component II) since distribution prices are fixed throughout the life of the contract.

Therefore, it is considered more important than Product Prices that may be adjusted throughout the life of the contract, in accordance with economic price adjustment provisions. Thus, for evaluation purposes only, the aggregate product price is reduced, or weighted, as stated in discussion of Component II above. The aggregate distribution and weighted aggregate product prices will be added to obtain a total evaluated price. This evaluated price will be used to determine the lowest overall cost to the Government, and will be used for evaluation purposes only, meaning that the evaluated price of an item may not be the same as the price the item would be cataloged after award. Even though aggregate prices will be used as the evaluation components for the Business Proposals, a 75% Market Basket was established, and will be used in the evaluation process to determine if offered prices are reasonable. The information requested on the “Schedule of Items,” Attachments 1 and 3, will be evaluated using price analysis techniques. Quotes and/or invoices will be individually evaluated in accordance with the submission requirements.

Substitute the following:

The Weighted Aggregate Distribution Price (Component I) is more important than the Weighted Aggregate Product Prices (Component II) since distribution prices are fixed throughout the life of the contract. Therefore, it is considered more important than Product Prices that may be adjusted throughout the life of the contract, in accordance with economic price adjustment provisions. Thus, for evaluation purposes only, the aggregate product price is reduced, or weighted, as stated in discussion of Component II above. The weighted aggregate distribution and weighted aggregate product prices will be added to obtain a total evaluated price. This evaluated price will be used to determine the lowest overall cost to the Government, and will be used for evaluation purposes only, meaning that the evaluated price of an item may not be the same as the price the item would be cataloged after award. Even though weighted aggregate prices will be used as the evaluation components for the Business Proposals, a 75% Market Basket was established, and will be used in the evaluation process to determine if offered prices are reasonable. The information requested on the “Schedule of Items,” Attachments 1 and 3, and the “Category Distribution Price List,” Attachments 2 and 4, will be evaluated using price analysis techniques. Quotes and/or invoices will be individually evaluated in accordance with the submission requirements.

SPM300-11-R-0063 Page 4 of 4

Example:

Vendor A Vendor B Component IA $2,000,000 $2,500,000 Component IB $1,000,000 $2,000,000

Total $3,000,000 $4,500,000 Total X 0.50 $1,500,000 $2,250,000 Component I $1,500,000 $2,250,000

Component II Total $4,000,000 $3,000,000 Total X 0.30 $1,200,000 $900,000 Component II $1,200,000 $900,000

Component I $1,500,000 $2,250,000 Component II $1,200,000 $900,000 Total Evaluated Price $2,700,000 $3,150,000