HSAAP Final Solicitation QA No_5.pdf

No. Question Answer

Would the government consider modifying the escalation EPA in a manner that is consistent with the natural gas EPA approach? This would require two changes:

1. USG directs bidders to assume an annual escalation amount (i.e. 6.9%) similar to the plug number provided for Natural Gas. This avoids bidders competing on escalation, something that is materially out of bidder control and provides an escalation normalized pricing for USG to evaluate. We believe this approach is better than an alternative approach of directing bidders to assume 0% escalation. By assuming 6.9% the USG has both normalized bids as a function of escalation while also showing annual prices that account for escalation within USG budget planning exercises.

2. USG modifies the EPA to align with how escalation actually effects future year pricing such that in October of year “N” all future years starting with “N+1” will be adjusted by the difference between 6.9% and the October index value (provided its greater than 1%). The current USG EPA fails to account for the impacts of escalation compounding year over year.

The Government will not dictate EPA assumptions in Offeror's proposals. However, please note that an amendment has been issued to revise the baseline rate for EPA adjustments from 6.9% to 3.0%.

Addressing part two of the question, the Government maintains that EPA adjustments will only apply to the subsequent ordering period. In clarification, the Government will execute an EPA annually, if applicable per the terms of the contract, against the baseline rate of 3.0%. While annual adjustments will only include the subsequent ordering period, the baseline of 3.0% will be used for each ordering period.

In the version of Attachment 0022 released with the 22 Nov 22 Amendment 0002, Row 334 is locked, preventing entry. Request the USG unlock this row in Attachment 0022 and review all other pricing matrices to ensure no other cells have been inadvertently locked.

This has been corrected.

HSAAP Solicitation Q&A #5 29 November 2022

HSAAP Final RFP Q&A v5