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TIPSS-4 ITS Questions & Answers TIRNO-09-R-00012Amendment 0012
#RFP ReferenceQuestionResponse
SECTION B
1Section B.2.1 pg. B-4 and Section L.14, Tab B, pg. L-21Section B.2.1 states “In addition, the offeror shall provide a detailed breakdown of the cost elements making up the not to exceed loaded rates in accordance with the instructions in Section L.” In Section L, the instructions state that the offeror shall prepare the pricing schedule in Attachment J.1.1 Rev. 1. Attachment J.1.1 Rev. 1 only contains columns for NTE Cost, Profit and NTE Rate. Is it the IRS’ intention that the offeror provide only the three elements in Attachment J.1.1 – NTE Cost, Profit and NTE Rate?Yes, the Government's intent is for offerors to only provide the three elements in Attachment J.1.1 – NTE Cost, Profit and NTE Rate. The request for a detailed cost breakdown has been deleted. Section B.2.1 has been amended. Please see Amendment 12.
2Section B.2.1, pp. B-4 to B-19How does the Government intend to use the NTE Labor Rates in this Section when awarding Task Orders under this IDIQ Contract post-award?The NTE Labor Rates provided by offerors shall be used as ceiling rates on Fixed Price and Labor Hour awarded task orders under the TIPSS-4 ITS Contract.
3Section B.2.1, pp. B-4 to B-19Will vendors be required to use the NTE Labor Rates in this Section when pricing competitively-awarded Fixed Price or Cost-Reimbursement Task Orders? Is it a correct assumption that the NTE Labor Rates in this Section are only for T&M or Labor Hour type Task Orders?The NTE Labor Rates provided by offerors shall be used as ceiling rates on Fixed Price and Labor Hour awarded task orders under the TIPSS-4 ITS Contract.
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4Section B.2.1, Page B-4; Section B.1(c), Page B-2Please clarify how you intend to utilize the NTE loaded hourly rate for each category as referenced in section B.2.1, when in B.1(c) you state that bidders will be evaluated on a cost reimbursement and fixed price basis.See response to Question #3. Note: Section B.2.1 has been amended.
5Section B.2.1, page 2This paragraph requires that offerors "shall provide a detailed breakdown of the cost elements making up the NTE loaded rates." There is no mention in Amendment 0011 for detail of subcontractor costs. Such detail would require sealed submissions from all subcontractors since this information is proprietary. Please clarify the requirements for presentation of subcontractor costs.Please see response to Question #1. Separate subcontractor submissions are not required.
6Section B.2.1 Labor Category Rate TableIt is our understanding that the Government will evaluate the offerors’ for the competitive ranges based on the Not-to-Exceed (NTE) loaded hourly labor rates as provided in Section J., Attachment J.1.1 Rev 1. It is also our understanding that those included in the competitive range will be bidding on the task orders in the Reverse Auction as described in L.22 Reverse Auction Procedures. Is this correct?No. All offerors submitting revised price proposals will be evaluated on a price analysis basis at the contract level. At the completion of the price analysis, the competitive range will be established. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
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7B.2.1, page B-3, Labor Category Rate TableQ1: Please define what is meant by NTE rate.

Q2: How does the NTE rate apply to the auction process and the ultimate resulting contract and task orders?

Q3: Please clarify the type of contract expected from this acquisition. 1. NTE stands for Not-To-Exceed.

2. The Government will not use Reverse Auctioning in the price analysis of this solicitation.

3. Since the work performed for this acquisition occurs at the task order level, any contract type (permissible in the RFP) will be used.

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8B.2.1 Labor Category Rate TableIf the labor category rates are NTE rates, what is the purpose for the Government to evaluate Profit and Fee vice just evaluating the bottom line NTE Rates?Having fee in the chart was an error. In determining price reasonableness, it is the Government's obligation to evaluate profit. The Government must know profit percentatges when negotiating prices.
9Section B.2.1, p.B-4We assume since the price proposal only requested one set of (contractor site) labor categories and they represent NTE Labor Categories for actual task order performance; please explain how the fixed fee part of the CPFF will be governed using the NTE Labor Category rate?Any requirement that required a cost reimbursement arrangement will not be governed by the NTE rate structure.
15Your proposed response states you want to know profit and fee to determine risk in the labor rates. Is there a "fee" added to labor rates? In any event, where does risk fit into price analysis? Do you mean reasonableness?
Section B.2.1, Pg B-3The new requirement that “The offeror’s proposal shall include not to exceed (NTE) loaded hourly labor rates for each labor category specified....” presents a major increase in risk for offerors and the potential of unintended consequences for the Government. Previous Q&A’s (#’s 113 and 114 specifically) provided that indirect rate ceilings were not required. The new requirement would impose ceilings that encompass not only indirects but basic labor rates as well and for a period of ten years. Either offerors will have to include large contingencies for future inflation out of line with current inflation or the successful offerors may find themselves economically unable to provide staff in any number of labor categories. Will the government include an Economic Price Adjustment provision to address this risk?C.O. RESPONSE NEEDED
10B.1, B.2 Cost Price, Pg B2-B-3Do the rates in Section B include all subcontractors? And, then all the subcontractors must live within the final auctioned rates?Yes, when prime offerors are establishing their NTE rates, they must take into account the rates of their subcontractors.
11B.2 Contract Principal Task AreaWill the Government elaborate and clarify how “profit and fee” will be negotiated up or down during performance of a task order vice as part of a contractual agreement established prior to contract performance.When requirements are issued at the task order level, it is at the discretion of the CO to determine the contract type (permissible in the RFP) appropriate for the requirement and the appropriate profit associated with performing the work. Therefore, profit may fluctuate throughout the life cycle, yet keeping in mind the overall profit total of the contract.
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12Section B.2.1, Page B-4Please confirm that Volume 4 amended pricing shall be contractor site rates only and government site rates are not expected to be submitted in this amended response.Yes, that is correct.
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13Section B.1 - GeneralThis section updates the periods of performance, which will require the prime contractor to solicit revised proposals from subcontractors. Such revised pricing may impact our small business participation percentages used to develop the small business plan submitted September 29, 2009. As the solicitation makes no mention that a revised small business plan is required, please confirm that there will be an opportunity to negotiate the final plan (based on the revised price proposal) following contract award.Prime offerors must still adhere to the percentages outlined in Section J, Attachment J.4 & Section M.4. Changing the evaluation methodology has no impact to meeting those SB goals. Offerors selected for award will be requested to provide revised Subcontracting Plans.
14Amendment 11 Section B and L.9, L.14, page 5Per Amendment 11 to TIRNO-09-R-00012, it appears that the sole change to the solicitation is the introduction of a reverse auction concept at the task order level. If the offeror choose to confirm offeror's original proposed cost proposal, may offeror do so and remain compliant with the solicitation? If so, may the offeror confirm the cost proposal remains valid by submitting a letter or should the offeror resubmit the cost proposal per section L.14 ?No, the primary purpose of Amendment 11 is to advise offerors that the Government will use Price Analysis as its methodology for evaluating costs. No, all offerors must submit a revised price proposal. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
15B.2.1 Labor Category Rate Table, p. B-4Offeror acknowledges that table B.2.1 is completed at time of contract award. Can the Government clarify the purpose of table B.2.1 and explain how it will be used under contract execution?The purpose of B.2.1 is to reflect the agreed upon NTE rates for each labor category identified in Attachment J.5. Once the contract is awarded, J.5 goes away and the agreed to rates become contract line items in Section B.2.1.
16Section B.1 General, page B-2The amendment states that profit percentages may be set at the contract level. When and how will the government make the decision about whether or not profit will be set at the contract level?The Contracting Officer will make that decision during negotiations.
Tangela Williams
Tangela Williams
SECTION I
17Section I, FAR Clause 52.232-7, Page I-5Payments Under Time-and-Materials and Labor-Hour Contracts. Please confirm that the Hourly rate will cover work performed by the Contractor; Subcontractors; and/or divisions, subsidiaries, or affiliated of the Contractor under a common control.Yes. According to FAR 52.232-7, the hourly rate means the rate prescribed in the contract for payment for labor that meets the labor category qualifications of a labor category specified in the contract that are; performed by the contractor, subcontractors, and or transferred between divisions, subsidiaries, or affiliates of the contractor under a common control.
SECTION J
18Section J, Attachment J.1.1 RevisedAttachment J.1.1 Revised has profit broken out separately. Is it the Governments intent to negotiate the “NTE Loaded Hourly Rate Excluding Fee” (column d), or, “profit” (column e), or “NTE Fully Loaded Hourly Rate Including Fee” (column f)? Each line item separately? Please provide details on what the expectations of offerors will be.Profit per labor category will not be negotiated separately.
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19Attachment J.1.1.1 rev 1_A00011Is it correct that the new pricing table has deleted the requirements for showing the allocation of hours to the subcontractors?Yes.
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20Amendment 11, 4. SECTION J, Attachment J.1.1 SAMPLE PRICING SCHEDULE (REV 1)
This section has been amended. Please see attachment to this amendment.This amendment refers to attached amended J.1.1 price schedule. Please clarify whether Treasury amended J.1.1 and if so where is it? Or was it the same J.1.1 as the final RFP?Refer to Attachment J.1.1 Rev 1 of Amendment 0011.
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SECTION L
21Section L - Amend 0011; page 21TAB E - Accounting System - The offeror shall identify the status of its accounting/estimating, billing and purchasing system. If the offeror’s accounting system has not been reviewed or approved by a Government agency, then the offeror shall provide a description of its methodology for estimating and accumulating costs under Government contracts. If this information has been provided elsewhere in the price proposal, the offeror may reference those sections in lieu of duplicating responses.Self explanatory.
22Section L.2, Pg L-2Is the FAR reference to 52.204-6 correct?Yes
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23Section L.4, Page 5Are proposed subcontractors required to submit Volume IV in its entirety? If the answer is no, please specify which TABS they are required to submit. If Subcontractors are required to submit any information in this volume, does it apply to all Subcontractors or only to major Subcontractors?Separate subcontractor submissions are not required, however, the prime offeror is responsible for accounting for the subcontractor pricing in its revised price proposal.
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24Section L.4, TAB B, Page 5In addition to submitting Section B.2 to shows Total Amount, Profit, and Total Price by Year, is the Prime Offeror required to submit a detailed breakdown of all the costs elements making up the not to exceed loaded rates? If the answer is yes, is this information required of proposed Subcontractor’s too?Please see response to Question #1.
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25Amendment 11, 6.L.9 Pgs 3-4
Section L.9, Pgs L-6 - L-8Amendment 11, 6.L.9 provides instructions for the submission of Vol I - Revised Terms and Conditions Binder 1A and Volume IV- Revised Price Proposal. Section L.9 provides instructions for the submission of Volume I - Revised Terms and Conditions Binder 1A, Binder 1B: Capability Maturity Model Integration (CMMI), Volume II - Technical Proposal, Binder 2A Past Experience, Binder 2B Management Approach, Binder 2C Earned Value Management System (EVMS), Volume III - Small Business Documentation Binder 3, and Volume IV - Revised Price Proposal.
Does the government intend for offerors to only submit a revised Volume I and Volume IV per Amendment 11 6.L.9 or all Volumes and binders per Section L.9?Offerors are required to only submit a revised Volume 1, Binder 1A and Volume IV per Amendment 11 and now 12.
26Amendment 11, 9.L.21, Pg 7Return of Offers and Standard Form 33 is required by May 26, 2010 at 2 PM.
Since the government has requested a revised Price Proposal Volume IV within this amendment and offerors need to negotiate rates with their major subcontractors for the new time periods, would the government grant a two week extension?The SF-33 and Section L.21 of the RFP have been updated. Please see Amendment 12.
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27L.9.1, Pg L-6Per L.9.1, Tab B of Binder 1A should contain signed copy of SF-33 and solicitation Sections B, J, L and M. Per L.11.2 Tab B shall include SF-33 and Sections B - K.
Please clarify.Please follow the Instructions for Proposal Submission in Section L.9.1. Tab B of Binder 1A shall contain a signed copy of SF-33 & solicitation Sections B, J, L, and M.
28Section L.9.1, pp. L-6 to L-8 ,Section L.14, pp. L-20 to L-22Volume IV - Revised Price Proposal: if the information in Tabs A, E and F has not changed since the original Proposal submission, does a vendor have to resubmit this information in its entirety? Can a vendor submit a one-page statement for each of these Tabs declaring that the information has not changed? If any of the information in these Tabs has changed, does the vendor need to highlight (i.e. "redline") the changes?Yes, offerors must re-submit Volume IV in its entirety. The offeror shall provide a written narrative in Tab C of Volume IV - revised Price Proposal explaining the differences between the original and revised proposal amounts.
29Amendment 11 Summary p. 3, Section L.9.1, pp. L-6In the Amendment 11 Summary, the Government requires that a Revised Volume 1, Binder 1A be submitted. In Section L.9.1, Binder 1B is listed below the revised contents for Binder 1A. Can the Government confirm that it is their intent that only a revised Binder 1A is to be submitted as part of the revised Volume I? Also, can the Government confirm that no revisions are required for Volumes II and III?Only Volume 1, Binder 1A and Volume IV must be re-submitted. No revisions are required for Volumes II and III.
30Section L.9.1, Volume I, TAB B, Page L-3Are bidders to submit Attachment J.1 only for Section J as affected by Amendment 11 or do you require all Section J Attachments even though they may not change.Only Attachment J.1 and J.1.1 must be re-submitted.
31Section L.9.1, Volume IV, TAB C, Page L-3Does the new TAB C completely replace the existing TAB C? Is the content of the new TAB C limited to dollar amount changes only?Yes, the new Tab C replaces the existing Tab C. The offeror shall provide a written narrative in Tab C of Volume IV - Revised Price Proposal explaining the differences between the original and revised proposal amounts.
32Section L.9.1, pp. L-6 to L-8, Section L.14, pp. L-20 to L-22Tab F - Financial Capability: regarding the submission of audited financial statements/data for major subcontractors. If a vendor can certify that the financial statements of its major subcontractors have not changed since the original Proposal submission, does the vendor have to resubmit these financial statements in their entirety? Can a vendor submit a one-page statement for this Tab certifying that the audited financial statements for its major subcontractors have not changed?Offerors must re-submit Tab F - Financial Capability in its entirety, regardless of whether financial statements of major subcontractors have changed or not.
33Section L.14, pp. L-20 to L-22Tab B - is the vendor required to have its subcontractors submit revised summary spreadsheets and sealed packages along with its Revised Price Proposal? During the preparation of the original Proposal, this turned out to be a very time consuming effort. If yes, will the Government consider an extension to the due date for the Revised Proposal?Separate subcontractor submissions are not required. Please see the revised due date in Amendment 12.
34Section L.8Questions and comments are due by 9:00AM on 17 May 2010. Will the Government indicate when they will provide responses to those questions?Yes, please check the TIPSS-4 Website.
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35L.9.2 Format, Organization, and Content of Files, Pg 5It is stated that “A revised proposal that fails to show compliance with all of Section L instructions shall be removed from competition.” Does compliance with Section L only pertain to the revised Volume I Binder 1B and Volume IV Binder 4 instructions? For example, if our revised price proposal in Volume IV Binder 4 results in a change to our Subcontracting Plan, will you require a revised Subcontracting Plan?Only Volume 1, Binder 1A and Volume IV must be re-submitted. Offerors selected for award will be requested to provide revised Subcontracting Plans.
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36L.9.2, page L-8, FORMAT, ORGANIZATION, AND CONTENT OF FILESPlease confirm that the instructions to apply the label "Box __ of __ boxes and Volume Number" does NOT apply to the spine and cover of the binder.Revised Volumes I and IV shall be submitted in separate loose-leaf binders. The following information must be cited on the outside of the box and on the spine and cover of the binder: 1)Solicitation Number 2) Revised Price Proposal 3) Offeror's Name 4) Box __ of __ boxes and Volume Number (The numbering scheme shall include all outside packages, e.g., information submitted under separate cover).
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37Section L.14, pp. L-20 - L-21 and Attachment J.1.1.Please explain if and how subcontractors factor into the offerors proposal to this submission. Prior to Amendment 11, Subcontractors were required to submit cost proposals at the same level of detail as the prime, and were to be represented in the pricing tables through the assignment of hours. Amendment 11 contains no mention of subcontractor requirements, and this offeror notes the specific requirements have been removed from Tab C of the Cost Volume. Please confirm that there are no requirements for subcontractors to provide Price Proposals in response to this Amendment 11 and that they are not to be specifically represented in the Prime's Amendment 11 Price Proposal.As prescribed in L.14, the Government is requesting information from the prime offeror. Separate submissions from subcontractors are not required. The prime offeror will be responsible for submitting subcontractor pricing along with its information.
38Amendment 11, Pg 3, Section L.9.1Are revised full price proposals required by all subcontractors in addition to prime contractors?Separate submission by subcontractors are not required.
39Section L.7, Pg L-5How many awards will the Government make for the unrestricted full and open portion?The Government has not made that determination.
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40L.14 Vol IV Binder 4 - Revised Price Proposal Tab BDoes the Government intend for offerors to submit both Government and contractor site rates given that only contractor site rates are used for evaluation?For evaluation purposes, the total price presented in Section B.2 shall be based on the contractor site rates.
41L.14 Vol IV Binder 4 - Revised Price Proposal Tab CVol. IV TAB C: Is it necessary for offeror's to provide the methodology for determining labor category rates proposed including escalation, indirect rates or revised subcontractor pricing? Or has this requirement been deleted?The offeror shall provide information to support the rates submitted under Amendment 11, now Amendment 12.
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42Amendment 11, Section 6.L.9, Page 3Please confirm that what you have requested bidders to provide in this submission are only those items in TIRNO-09-R-00012 Amendment 11 which are Volume I, Binder 1A, Tabs A & B; and Volume IV, Tabs A, B, C, D, E & F.Yes, this is correct.
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43Section L.14 Volume IV: Binder 4; Tab F Financial CapabilityIn order to predict the subcontractors "who are budgeted to receive an annual amount of at least $3,500,001.00 annually or 20% of the total contract funds (whichever is less)", please confirm that the Government is assuming that the aforementioned "budget" is based on the values as used in the evaluation (as dictated in J.5).The Government is using J.5 information as a guide and entrust that the prime offeror will make the best business decision on how to comply with the acquisition criteria.
44Section L.11.2.1 , Page L-11May 26, 2010 plus 240 Calendar Days takes the proposal validation date to January 21, 2011. The base period begins March 18, 2011. Are both of these dates correct?The Government is aware of the date difference and will communicate to the offerors that make and remain within the competitive range of any additional extensions deemed necessary.
45Section L.9.1, Volume IV, TAB C, Page L-3Does the new TAB C completely replace the existing TAB C? Is the content of the new TAB C limited to dollar amount changes only?The new Tab C replaces the existing Tab C. The offeror shall provide a written narrative in Tab C of Volume IV - Revised Price Proposal explaining the differences between the original and revised proposal amounts.
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46L.22, p. L-24Reverse Auction Procedures: can the Government give more details as to how the Reverse Auction will be conducted from a financial standpoint? Will each NTE Labor Rate be subject to the Reverse Auction process, or will there be an auction of Total Price by Base Period, Option Year and Grand Total Price? Will the Government establish a predetermined floor for the rates and/or prices before the auction? If a floor is established, will eligible vendors be notified prior to the auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
47Amendment 0011.doc Section 10 L.22 REVERSE AUCTION PROCEDURES page 7In the case that labor category rates are disclosed, will the final evaluation still be on the vendor's total price, or will individual consideration be made by labor category? Is it possible that the government will make an award to a vendor based on their pricing response to a subset of categories?The Government will not use Reverse Auctioning in the price analysis of this solicitation. An offeror's total price will be considered for contract award along with other non-price factors in the RFP. No.
48Amendment 0011.doc Section 10 L.22 REVERSE AUCTION PROCEDURES page 7REVERSE AUCTION PROCEDURES do not indicate specifically what values will be evaluated. Will it be:

A) The Vendor's total evaluated Price? (fee rate undisclosed) B) The Vendor's total evaluated cost, fee rate and price?

C) The Vendor's individual rates by labor category (fee rate undisclosed)

D) The Vendor's individual rates by labor category (cost + fee rate)The Government will not use Reverse Auctioning in the price analysis of this solicitation.
49Amendment 0011.doc Section 10 L.22 REVERSE AUCTION PROCEDURES page 7A reverse auction is an efficient way of determining the absolute lowest bidder for a particular product or service, but the government has indicated it plans on making multiple awards for TIPSS-4. How will the government determine which Auction participants receive awards?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
50Section L.22, Page L-24At what level will the Reverse Auction be conducted? Labor Category by Labor Category? Sample Task? Summary Level?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
51Section L.22, Page L-24What commercial reverse auction service provider will the Government be engaging?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
52Section L.22, Page L-24How much time will be allowed for the Reverse Auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
53Section L.22, Page L-24How will the "winners" be determined?The Government intends to award contracts based on best value in accordance with Section M.3 of the RFP.
54Section L.22 Reverse Auction Procedures, Page 7Is the intent of the Reverse Auction to award task orders based on lowest cost?The Government will not use Reverse Auctioning in the price analysis of this solicitation. The Government intends to award contracts based on best value in accordance with Section M.3 of the RFP.
55Section L.22 Reverse Auction Procedures, Page 7How will other factors besides lowest cost be used to differentiate among the bids being considered?The Government will not use Reverse Auctioning in the price analysis of this solicitation. Please refer to Section M; additionally, Section M does not address lowest cost as the basis for award.
56Section L.22 Reverse Auction Procedures, Page 7Will the Reverse Auction be used to down select vendors, will it be used to award task orders among those down selected, or will it depend on the circumstances?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
57Section L.22 Reverse Auction Procedures, Page 7Under what circumstances will the Reverse Auction be used among new and recurring task orders involving incumbents (e.g., T&M only, Cost Plus only, FFP only, or all types)?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
58Section L.22 Reverse Auction Procedures, Page 8, Para (6) (i)What timeframe (month) do you anticipate training to occur on the reverse auction process?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
59Section L.22 and M.4Will the competitive range be determined by the revised cost/price proposals, or after the reverse auction?The competitive range will be established in accordance with Section M.4. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
60Section L.22 and M.4Will all vendors that submit revised cost/price proposals be invited to participate in the reverse auction process?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
61Section L.22 and M.4What is your guidance on whether to adjust our pricing? And why or why not?The purpose of the amendment is to inform offerors of the change in the method of evaluating cost/price information. If offerors need to update pricing information due to FPRA or new fiscal years, then this is the time to do so.
62Section L.22 and M.4What does reverse auctioning technique mean? How will the government use this technique to conduct price analysis?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
63Section L.22 and M.4Does the government expect all vendors to revise their price proposal?Yes.
64Section L.22 and M.4What is your guidance on whether to adjust our pricing? Does the government expect all vendors to revise their price proposals? If so, should price proposals be revised for the [DATE] submittal or should all price revisions be made during the reverse auction?Please see response to Question #61. Please see Section L.21. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
65Section L.22 and M.4Will all vendors that submit cost/price proposals be invited to participate in the reverse auction process?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
66Section L.22 and M.4Will the competitive range be determined by the revised cost/price proposals, or after the reverse auction?The competitive range will be determined based upon Section M.4 of the RFP. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
67Section L.22 and M.4How will the government use this technique to conduct price analysis?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
68L.22, page L-24: Reverse AuctionsWill there be separate auctions for Large Businesses and Small Businesses for the ITS acquisition?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
69SECTION L.14 VOLUME IV: BINDER 4 – REVISED PRICE PROPOSAL, p. L-20Will a ‘Final Version’ of the Pricing Volume be required, after the Auction, that supports a build-up for the final Auctioned Price each vendor ended-at during the Auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
70RFP Section 10, L.22, page 7The Reverse Auction Procedure is being added by amendment 0011. Will the Reverse Auction Procedure be used at the task order level as well?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
71Amendment 0011.doc Section 10 L.22 REVERSE AUCTION PROCEDURES page 7The government indicates that they "may" perform a reverse auction technique to evaluate vendor pricing (Amendment 11 page 1 paragraph 1).

Question 1: At what point in the schedule will vendors be informed that a reverse auction will definitely take place? Before or after submission in response to the amendment?

Question 2: Will the government provide a draft schedule of events pertaining to the remainder of this solicitation? Question 3: Will the Government please identify each specific event that will occur and the process by which it will occur?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
72Amendment 0011.doc Section 10 L.22 REVERSE AUCTION PROCEDURES page 7REVERSE AUCTION PROCEDURES do not indicate specifically what values will be submitted for competitors to view. Will it be:

A) The Vendor's total evaluated Price? (fee rate undisclosed) B) The Vendor's total evaluated cost, fee rate and price?

C) The Vendor's individual rates by labor category (fee rate undisclosed)

D) The Vendor's individual rates by labor category (cost + fee rate)The Government will not use Reverse Auctioning in the price analysis of this solicitation.
73L.22The Government has indicated that all Offerors in the competitive range will be invited to participate in the reverse auction, and that it will be able to see all other Offeror prices (including changes) as well as its own during the period of the reverse auction. Given that they are 37 labor categories with separate prices for 10 years for both government and contractor site rates, each Offeror will have 740 labor rates to monitor and make changes to during the reverse auction. If there are 50 firms invited to the reverse auction, that would result in 37,000 individual labor prices that each Offeror would have to track in order to maintain its competitive position, which seems difficult if not impossible to do. Please clarify.The Government will not use Reverse Auctioning in the price analysis of this solicitation.
74L.22 Reverse Auction Procedures, p. L-24 - L-25Can the Government please provide a clear, specific example of how the reverse auction will work in the context of this acquisition? Will the individual labor category rates be auctioned, or the total evaluated price?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
75L.22 Reverse Auction Procedures, p. L-24 - L-25Given the nature of the reverse auction, and the spirit of transparency it promotes, will the Government disclose the number of anticipated TIPSS-4 ITS awards?The Government does not know the anticipated number of awards. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
76L.22 Reverse Auction Procedures, p. L-24 - L-25If the NTE rates are to be based on Cost, can the Government please explain how they expect a cost-based rate to be adjusted in the Reverse Auction Process without harming the validity of the underlying cost elements?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
77L.22 Reverse Auction Procedures, p. L-24 - L-25Please confirm that the Reverse Auction is on the Base Year rates only.The Government will not use Reverse Auctioning in the price analysis of this solicitation.
78Section L, p. L-3 - L-25The revised Section L issued in Amendment 11 appears to contain instructions related to volumes that are not being requested in Amendment 11. Please confirm that the offerors are to adhere only to Revised Amendment 11 Section L sections related to Binder 1A and IV, and that submission requirements pertaining to other volumes do not apply.Offerors are required to only submit a revised Volume 1, Binder 1A and Volume IV per Amendment 11, now 12.
79L.22 Reverse Auction Procedures, p. L-24 - L-25Approximately, when is the Auction expected to take place and how much notice will Offerors be given prior to the commencement of the auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
80L.22 Reverse Auction Procedures, p. L-24 - L-25As part of the notification of and distribution of instructions for the reverse auction, will the Government announce to the offerors in the competitive range how many awards will be made from the pool of offerors participating in the reverse auction?Please see response to Question #75.
81L.22 Reverse Auction Procedures, p. L-24 - L-25Please clarify the Government's intent for future task orders where the auction is setting a maximum fee for cost re-imbursement task orders.The Government will not use Reverse Auctioning in the price analysis of this solicitation.
82Section L.22 Reverse Auction Procedures, page 25Are offerors limited to the number of "trained offerors" they can designate?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
83Section L.22 Reverse Auction Procedures, page 25Will the auction site be virtual? How long will the auction be scheduled? Will the CO be available during the auction via phone or on-line in case of technical difficulties?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
84Section L.22, Pg L-24How many offerors does the Government anticipating participating in the Reverse Auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
85Section L.22, Pg L-24Can an offeror elect not to participate in a reverse auction given the pricing structure of our original bid, or would this automatically disqualify the offeror ?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
86Section L.22, Pg L-24During the reverse auction process, is it the Governments intent to award to the lowest bidders?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
87Section L.22, Pg L-24Will the reverse auction be timed or will it take place until no significant changes in bid are placed for a period of time? Also, When does the Government anticipate the reverse action will take place?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
88L.22 Reverse auction ProceduresCan the Government elaborate on what circumstances they plan to use the reverse auction? Is the reverse auction intended to be used as part of source selection for the overall TIPSS-4 IDIQ contract and/or for individual Task Orders being competed under TIPSS-4? If used for individual Task Orders will it be used for all Task Orders?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
89Section L.22, Page L-24When does the Government anticipate the Reverse Auction to occur?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
90L.22 Reverse auction ProceduresWill the Government provide an estimate of the number of planned TIPSS-4 contract awards at the time of the reverse auction?Please see response to Question #75.
91L.22 Reverse auction ProceduresWill the Government inform each offeror of where it stands in the competitive range (e.g., numeric scores, anonymous competitor’s numeric scores) at the time of the reverse auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
92L.22 Reverse auction ProceduresWill the Government's use of the reverse auction change the evaluation factors and weightings defined in the original solicitation?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
93L.22 Reverse auction ProceduresWhat are the Government's anticipated time periods between reverse auction events (e.g., changes to price)?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
94L.22 Reverse auction ProceduresWhat is the anticipated number of iterations for the reverse auction (e.g., number of times an offeror can adjust their price)?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
95L.22 Reverse auction ProceduresDoes the Government anticipate that offerors will be allowed to adjust their prices either upward or downward during the reverse auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
96L.22 Reverse auction ProceduresWill the Government elaborate on what information will be shown during the reverse auction (e.g., just total cost/profit/price versus cost/profit/price for each labor category)?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
97Section L.22, Page L-24How long will the reverse auction window be open to execute the auction? Meaning, how long will each offeror in the competitive range have to see how their pricing compares to the competition, evaluate modifications to their pricing, and upload those modifications to the auction site?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
98Section L.22, Page L-24During the auction, will each offeror have access to real-time price updates by all the competitors participating in the auction?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
99Amendment 0011, p. 7, L.22 Reverse Auction ProceduresCan the government please clarify the reverse auction process? For example, 1) Once the competitive range is established, will the government then award to a pre-determined number of bidders with the lowest price? Or, 2) Will the government award to all bidder’s below the independent government cost estimate?The Government will not use Reverse Auctioning in the price analysis of this solicitation. The Government intends to award contracts based on best value in accordance with Section M.3 of the RFP.
100Amendment 0011, p. 7, L.22 Reverse Auction ProceduresOver what period of time will the reverse auction be conducted?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
101Amendment 0011, p. 7, L.22 Reverse Auction ProceduresCan the government clarify what the expectation is for subcontractors participation in the reverse auction? How can prime contractors make decisions on behalf of subcontractors in a reverse auction setting?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
102Section L.22 Reverse Auction ProceduresWhen will the rules of the auction be distributed to offerors?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
103Section L.22 Reverse Auction ProceduresHow will non-price factors be evaluated during the auction (e.g. assumptions, terms and condition exceptions)?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
104Section L.22, Page L-24When does the Government anticipate the Reverse Auction to occur?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
105Section B.2, Pg B-3, B-4; Section L.22, Pg L-24, L-25, Section M.3, Pg M-2, M-3; Section M.4; Pg M-4, M-11, M-12; Section M.5, Pg M-12Upon review of the reverse auction materials on the IRS website, it seems that this technique is best utilized in procurements involving products such as hardware and/or services that are commercially available such as telephone or computer hardware repair. Because the description of the product or service and the quantities desired are specific, pricing for these items can be condensed into lots or units and vendors can easily determine break even points and their lowest price. The services and quantities contemplated by the TIPSS 4 procurement are not specific and therefore the Government intends to award an Indefinite Delivery, Indefinite Quantity (IDIQ) contract. We ask for clarification of how the Government intends to use a reverse auction for this type of procurement. We ask for clarification of how the Government intends to use a reverse auction for this type of procurement to ensure that the government can procure the talent necessary to address the complexities of the business and meet the imperatives for high quality and timely delivery as required by the programs that will utilize this vehicle

We understand that the Government is now asking for pricing based on specified numbers of hours per labor category, but the hours are for evaluation purposes only. Offerors cannot use these quantities as determiners or guarantees of the number of hours to be ordered making it difficult to best determine their lowest price. In addition, the Government has not provided labor category descriptions, experience or education requirements. Offerors can define labor categories as they see fit and make price determinations based upon their understanding not necessarily on the needs of the Government.

While we agree that the reverse auction technique is innovative and can, when used in the right circumstances, lead to savings for the Government, we believe that TIPSS 4 is not a good candidate for this price determination technique. Would the Government explain in detail how the competitive range will be determined, how the reverse auction will take place and what price component or components will be subject to the auction, and then finally, how award determinations will be made?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
SECTION M
106Section M.4, Page M-11; Section L.22, Page L-24If the reverse auction will utilize individual labor rates, will there be an upload capability to directly upload the B-tables with the offeror's contractor site rates?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
107Section M.4, Page M-11What will the reverse auction method utilize as an evaluated price? Will the reverse auction evaluated price be the Grand Total for years 1-10 as defined in Section B.2, or will the reverse auction use individual labor rates, or a subset of the labor rates?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
108Section M.4, Factor 6 - Cost/Price, Pg M-11Since the labor categories descriptions in Section C.9 Task Order Labor Categories Description did not fully qualify the levels of education and years of experience required for these positions, in a Reverse Auction on Labor Category Price the government runs the risk of offerors not bidding to the same specification (e.g. a Sr. IT Specialist from one firm using a basis of 20 years of experience and from another firm using 3 years of experience) . Will the Government increase the level of specification for the specific labor categories that are being proposed to ensure that all offerors are offering the same specified capability level of labor in each labor category and therefore in the Price Analysis and competition will be conducted on a level playing field?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
109Section M.3, Basis for Award, Pg M-2, M-3Can the Government explain how the Basis for Award has changed with the introduction of the Reverse Auction and change from Cost/Price Analysis to Price Analysis? Specifically M.3.c states "Proposals that are unrealistic in terms of either a technical or cost/price nature ... may result in determination of unacceptability". When will these determinations be made? If a proposal is deemed acceptable before the Reverse Auction, will it be re-evaluated following the Reverse Auction to ensure that this threshold hasn't been crossed?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
110Section M.4, Factor 6 - Cost/Price, Pg M-11Isn't the government concerned that in a Reverse Auction scenario the government will get Not To Exceed (NTE) Labor Category Rates so low that the offerors may not be able to supply qualified candidates and so will be unable to accomplish the objective of the Task Orders resulting in cost, schedule and quality risks?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
111Section M.4, Factor 6 - Cost/Price, Pg M-11The Government states that during the course of the on-line auction, offerors' proposed prices will be publicly disclosed to other offerors. What proposed prices will disclosed - hourly NTE rates by contract year, contract year bottom line evaluation prices based on application of Attachment J.5 evaluation hours or all of these across all offerors?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
112Section M.4, Factor 6 – Cost/Price, Pg M-11Within this section the Government indicates that the offeror's total proposed contract price will be evaluated for reasonableness using price analysis techniques described in FAR 15.404-1. Further this price analysis will be used to determine a competitive range that will determine which offerors will be invited to participate in the reverse auction to establish final offered prices. How does the Government intend to ensure that prices offered in the reverse auction process are reasonable and not unrealistically low?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
113Amendment Number 11, 11. Section M.4 Evaluation Criteria Factor 6 Cost/Price, pages 8-10Please confirm the following: Contractors that are outside of the competitive range of prices, and therefore not participants in the reverse auction, will not be awarded a TIPSS 4 contract regardless of the rating of the technical (factors 1-5) of the TIPSS 4 solicitation?The competitive range will be established in accordance with Section M.4. The Government will not use Reverse Auctioning in the price analysis of this solicitation.
114Amendment Number 11, 11. Section M.4 Evaluation Criteria Factor 6 Cost/Price, pages 8-11Will all participants in the reverse auction, and therefore considered to be in the competitive range of pricing, be awarded a TIPSS 4 contract? If not, what criteria relative to reverse auction participation and/or pricing changes will be used to determine which contractors will receive awards?The Government will not use Reverse Auctioning in the price analysis of this solicitation.
115Amendment Number 11, 11. Section M.4 Evaluation Criteria Factor 6 Cost/Price, pages 8-12Please clarify how the government will apply evaluation criteria 1-5 to determine which companies can fall into the competitive range and therefore participate in the reverse auction. It appears as if the competitive range is based only on cost/price.The competitive range will be determined based on Section M.4 of the RFP. Offerors will be evaluated against five technical factors. Each sub-factor will be rated in descending order of importance. Factors 1 and 2 are of equal importance and the most important of the five factors. Factors 3 and 4 are of equal importance and when combined are more important than Factor 5. These five technical factors combined will make up the proposal’s overall technical rating. Please note, Factor 6 (Cost/Price) is of less importance than the technical factors combined; however, the closer the proposal technical ratings are to one another, the more important price consideration becomes in determining the best value to the Government. The Government will not use Reverse Auctioning in the price analysis of this solicitation.

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