USMS-0060-17_Amendment_2.doc

AMENDMENT OF SOLICITATION/ MODIFICATION OF CONTRACT

UNICOR, Federal Prison Industry

See Block 6

USMS-0060-17

9B. DATED (SEE ITEM 11)

12/12/2016

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

CODE

FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENT OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and the date specified for receipt of Offers is extended, xx is not extended.

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: (a) By completing items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment number. 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.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

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 :

BY MUTUAL AGREEMENT

D. OTHER (Specify type of modification and authority)

Bilateral modification in accordance with FAR 43.103(a)(3)

E. IMPORTANT : Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

SOLICITATION #USMS-0060-17 IS AMENDED AS FOLLOWS:

The attached list of questions were asked and answered by potential bidders.

Three additional attachments are being added to the solicitation:

Attachment 11 – Sample Authentication Report

Attachment 12 – Counterfeit Assessment Report

Attachment 13 – Asset Breakdown for current inventory

No other changes at this time.

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.

Lisabeth Day, Chief, Procurement

(Signature of the person authorized to sign)

(Signature of contracting officer)

NSN 7540-01-152-8070

PREVIOUS EDITION UNUSABLE

Prescribed by GSA

FAR(48 CFR) 53.243

QUESTIONS/ANSWERS – USMS-0060-17

01/17/2017

1. When the District Office ships assets directly to a storage facility, does the District Office maintain custody of the item until the contractor signs the USM-102 accepting custody of the asset?

ANSWER: . If the vendor is assisting with transportation from the district to their storage facility than it would be under the custody of the vendor when the asset is picked up. If the district is shipping the assets to the storage facility through a vendor they set up than the asset is under the custody of the district until it gets to the storage facility.

2. Should the COR or the District Office notify the contractor by Sub Task Order (STO) to make arrangements to pick up and deliver an asset to the storage facility, does the contractor assume responsibility and custody upon notification by STO?

ANSWER: The STO is to notify the vendor that assets are pending transport only and the custody transfer would be as noted in question 1.

3. What are total estimated annual sales or historically what have annual sales been for the last five (5) years? Can you breakdown define online and live sales?

ANSWER: THIS QUESTION WILL NOT BE ANSWERED AT THIS TIME.

4. The price proposal schedule (Attachment 1) proposes a commission rate for online sales between $0-$25,000, $25,001-$100,000, and $100,000 plus. It then does the same for live sales.

We need some clarification on the pricing schedule; is the above meant to suggest that in a hypothetical $300,000 gross sale, where the commission rate is

5% 0 to 25,000

4% 25,001 to 100,000

3% 100,001+

Does the USMS envision fees of?

$1250 (5% X $25,000) + $2,999.96 (4% X $74,999) + $5,999.97 (3% X $199,999) for a total of $10,249.93;

OR is the USMS suggesting the fee would be 3% of the entire gross amount of $300,000 in this hypothetical sale for a total of $9,000 (3% X $300,000) in commission?

AND does this calculation "reset" for each auction sale or does the gross sale proceeds continue on over an entire year?

ANSWER: Correct – the pricing schedule has online auction and live auction noted. The pricing is based on the sale price of individual lots not the total gross proceeds of auctions. An example would be if lot # 1 sold on an online auction for $500 than it would fall under CLIN 0010 and it would have a

QUESTIONS/ANSWERS – USMS-0060-17

01/17/2017 sales commission of 10% which would be $50.00. The calculation is for each individual lot in each auction. The clearinghouse can not charge for credit cards as an added USMS expense.

5. It is our experience that allowing the use of credit cards and checks as acceptable forms of payment leads to higher asset sale prices. Can the clearinghouse charges for credit cards be added as a USMS expense?

Our experience is that allowing more convenient sources of payment will lead to USMS receiving higher NET revenue. As a contractor we know 3rd party sources that will guarantee the sale proceeds to us, and we, as the contractor, will guarantee sale proceeds to the USMS.

Will USMS consider approving service fees (typically less than 2%) when in the best interest of USMS?

ANSWER: The clearinghouse can not charge for credit cards as an added USMS expense.

6. When does the Contracting Officer anticipate award notification; what projected date?

ANSWER: I would hope to have an award before March when the current contract expires.

7. Will a background investigation requirement be limited to those contractor employees who will have access to CATS?

ANSWER: Background investigations will be required for all employees working on the USMS contract.

8. Since there is no way to predict the frequency or extent of asset seizure activities does the contractor’s travel expense related to seizure consignment need to be included in cost proposal?

ANSWER: The travel expenses would be noted under CLIN 0005 for travel of employees for seizure assistance.

9. For bidding purposes, will the government provide a current asset on-hand inventory of assets in storage?

ANSWER: SEE THE ATTACHMENT 13 – ASSET BREAKDOWN

10. What were the gross proceeds for sales in FY2016?

ANSWER: THIS INFORMATION WILL NOT BE RELEASED AT THIS TIME.

11. When the contractor is required to provide support for the consignment of a seizure, there will obviously be labor costs as well as travel cost. Will the labor cost be accounted for separately? Will the contractor’s total cost of the labor plus markup be allowed?

ANSWER: The labor cost would fall under CLIN 0002 Labor- Direct Contractor and the travel would be under CLIN 0005 Travel. The labor plus markup will not be allowed.

QUESTIONS/ANSWERS – USMS-0060-17

01/17/2017

12. Who performs the annual inventory for the seizures in custody?

ANSWER: The vendor will conduct the annual inventory for the USMS Asset Forfeiture team.

13. Who is responsible for investigation of damage or loss of property in the custody of the contractor?

ANSWER: The vendor is responsible for the investigation of damage or loss of property and the USMS may also conduct an investigation if needed.

14. What is the historical average asset storage duration?

ANSWER: We cannot properly estimate this but the standard rule for administrative forfeitures is approximately one year in custody; civil/judicial forfeitures are at least 1 year; and criminal/judicial forfeitures are approximately 2 to 5 years.

15. Generally under this contract, transportation of assets for initial intake or to ship back to the Districts is cost reimbursable. Does this also apply in cases where the initial seizure happens to be in the same city where the contractor has its storage facility?

ANSWER: Yes, that would apply as well.

16. Upon award, the successful contractor will have thirty (30) days to transport the existing assets from the incumbent's facility. Please provide a listing of the existing inventory if possible, or a general summary of quantities and types of assets that will need to be relocated in the initial start-up phase.

ANSWER: Please see the attached breakdown of asset and asset value as requested. (ATTACHMENT 13)

17. For insurance purposes, please provide the average cumulative value of all assets in storage at any given time.

ANSWER: Per the SOW, the contractor shall obtain and maintain insurance through the duration of the contract. It is the contractor’s responsibility to maintain all insurance relative to storage and transportation of JAAC and other personal property assets asked to be stored by USMS. Contractor should have the ability to increase insurance coverage based on contractor’s inventory being stored. If a discrepancy is identified for lack of sufficient insurance coverage, contractor has 15 business days to correct insurance deficiency and submit compliance certificates to COR and CO for review. The average value of all assets in storage is around $18 million* however value of assets could decrease or increase significantly during the course of the contract.

18. What is the unit specification for CLIN 0022, Appraisal Admin Fee? Is the bid for this CLIN to be based by the hour, per asset, per case, or per day?

ANSWER: The unit specification would be per hour

QUESTIONS/ANSWERS – USMS-0060-17

01/17/2017

19. Are the labor CLIN's such as CLIN's 0002, 0008, 0009 and possibly 0022, to be based on an hourly charge per person working the task or is it meant to be a flat hourly rate regardless of the number of people working the specific project?

ANSWER: This would be a flat hourly rate that the contractor would charge for this service.

20. Live auctions shall be advertised at least fourteen (14) days prior to sale day. Please expand on the specifications, if any, for the advertising requirements to be placed in the local and national newspapers for live auctions as to type of ad, size and the number of days that this ad will be required to run.

ANSWER: We look to the vendor as the expert in this category to provide details on auction services provided, to include advertisement specifications that will attract the largest audience.

21. Page 7, Section B, Paragraph 1 referring to cost reimbursable items states that "The vendor may not add mark-ups to these line items." Instructions on page 20, Section C, Paragraph 6, Sub-paragraph G which states that "All transportation costs shall be billed at cost plus 5 percent." Please clarify.

ANSWER: Edits need to be made to page 7 Section B number 1 to state …”The vendor may not add mark-ups to these line items specifically in the SOW.

22. Please provide historical data on the average number of sales and type of sales conducted annually - how many live sales; how many online sales; how many sealed bid sales.

ANSWER: THIS INFORMATION WILL NOT BE RELEASED AT THIS TIME.

23. Relevant to 22 above, please provide average number of lots per sale and the average gross sales figures per sale.

ANSWER: THIS INFORMATION WILL NOT BE RELEASED AT THIS TIME.

24. Please provide listing of hotels used for live auctions over the past three to five years.

ANSWER: THIS INFORMATION WILL NOT BE RELEASED AT THIS TIME.

25. Please expand on the requirement to submit a list of contractor and sub-contractor employees as stated in page 18, Section C, Paragraph 5, Sub-paragraph C. Are we to list employees who are expected to have access to the vault and personnel who will directly work and manage the daily operations, or are we to include corporate administrative suppmi staff, marketing and accounting staff, and known paii-time auction help as well?

ANSWER: You would be required to provide this information on all staff who would have access to the storage facility(s).

QUESTIONS/ANSWERS – USMS-0060-17

01/17/2017

26. Please clarify the requirement for the Performance Bond as stated in page 67, Section I Contract Clauses.

a.

Is the Bond amount based on the Minimum Guarantee of 10% of the Base Year total bid? If not, please expand on what amount the bond is based on.

b.

In establishing the bond amount, are the NTE CLIN figures excluded?

ANSWER: The bond amount would be for the 100% of what the contractor is proposing (to include the NTE amounts) for the Base Year, as the options will not be exercised at the time of award. The Bond is not required, as noted on Page 68 of 82 (c ) within 10 days of after award and prior to starting work.

27. Please provide annual figures for gross sales proceeds for the past one to three years.

ANSWER: THIS INFORMATION WILL NOT BE RELEASED AT THIS TIME.

28. Please confirm Amendment 1, SF30 indicates "l of 3 Pages" but only one page was included besides the Attachment # 10 TGL.

ANSWER: Error on the Amendment, should be Page 1 of 1.

29. Please confirm Attachment #10, TGL page 4 of 10 as our printer format results on page 4 of 10 being completely blank. Was page 4 left blank intentionally?

ANSWER: Conversion error and page 4 was left blank.

30. Amendment 1, Attachment #10, TGL, lists additional attachments that were not attached to the Amendment. Although some attachments were included in the original solicitation, some have not been provide. From the list of attachments listed at the end of the TGL, Attachment #10, please provide a sample of the following applicable fo1ms:

a.

Authentication Report b.

Counterfeit Asset Repmi c.

Invoice (if different than Attachment #7 IA.AC Invoice).

ANSWER:

a. Sample Authentication Report – attached

b. Sample Counterfeit Asset Report – attached

c. Original Attachment 7 is the Invoice requested

31. Please provide guidance on the applicability of CLIN 0002, Labor-Direct Contractor; under what circumstances is Contractor allowed to charge for this labor?

ANSWER: CLIN 0002 Labor-Direct Contractor is for any contractor direct staff to transport assets to/from contractor facility. This does not include subcontracted labor.

32. Please confirm CLIN numbers given as reference on page 8, Section B, Paragraphs 3 .1 through 3.5.

QUESTIONS/ANSWERS – USMS-0060-17

01/17/2017

ANSWER: Those CLINS were listed based on previous pricing information that was changed prior to the solicitation being issued. CLIN 0001 covers 3.1 & 3.2; CLIN 0005 covers 3.3;

CLIN 0018 covers 3.4; and CLIN 0007 covers 3.5.

33. Is the Memorandum of Understanding included in the RFP or provided attachments? Alternatively, is this a document the offeror drafts to respond to the proposed storage facility requirements?

ANSWER: THIS IS A DOCUMENT THAT OFFEROR PROVIDES DEMONSTRATING

THEIR ABILITY TO OBTAIN ANY PROPOSED STORAGE FACILITY THROUGH THE

ENTIRETY OF THE CONTRACT.

34. On page 78/82 of the RFP, (4) Disposal (vi), can you please provide clarity as to “return” procedures? Is the offeror to describe the return procedure to USMS or a return from the buyer back to the auction company?

ANSWER: THE SOW DETAILS OUR NEED, THE OFFEROR NEEDS TO

DEMONSTRATE THEIR ABILITY TO DO SO. TO PROVIDE FURTHER, SPECIFIC

INSTRUCTIONS WOULD BE UNFAIR TO ANY OTHER OFFEROR

35. Approximately how many square feet of warehouse is needed?

ANSWER: The SOW states that the contractor will have at least 5,000 square feet for the warehouse.