Vendor_questions_(22_May_19).pdf

Amendment 0003 Solicitation No. W81XWH19R0011

Vendor question / Government response

SF 33 / Solicitation (Section “B” Supplies or Services and Prices) Question 9: Can the Government please clarify whether the ceilings described in this section are temporary rate ceilings used for billing purposes until the rate is officially modified, or does the Government intend a permanent indirect rate ceiling, where the contractor will not be reimbursed above the capped indirect rates when the approved or final rate exceeds it? Please note that indirect rate ceilings are not common in cost type contracts and the increased financial risk associated with indirect rate ceilings are usually reflected in a higher fee.

RESPONSE: The Government response to this question in Amendment 0001 is receded and replaced with… “The costs of CPFF task orders include indirect rates that were submitted with the Contractor’s final cost/price proposal on XXXXX 2019. The parties agree that these are capped rates for fringe benefits, labor overhead, G&A, and overhead that shall not be exceeded.

The indirect ceiling rates may be re-negotiated, only if the Contractor and Government concur that such a redetermination is necessary and in the best interest of both parties.

NOTE: In accordance FAR 52.216-7(d), entitled, “Allowable Cost and Payment,” the Contractor shall submit final indirect cost rate proposal to the Contracting Officer and auditor within the 6-month period following the expiration of each of its fiscal years.”

Attachment 6 – Pricing Sheet

Question 60: For the indirect rates on the “Indirect and ODC’s” tab of Attachment 6 – Pricing Sheet, does the Government require percentages or dollar amounts?

RESPONSE: The Government response to this question in Amendment 0001 is receded and replaced with… Only percentages are required for G&A, Overhead, Fixed Fee, and Profit Rate. A dollar figure ($) is NOT required. Attachment 6 – Pricing Sheet has been updated.

Question 61: Will the Government please confirm that it is acceptable for a prime contractor to submit a single set of fully loaded rates and cost-type ceiling rates (as required on RFP Attachment 6 – Pricing Sheet), and that the prime contractor can manage its subcontractor costs under these fully loaded rates/capped cost-type rates? i.e. Please confirm that the prime contractor is not required to submit separate rates for its subcontractors and that a separate detailed Subcontractor Cost Proposal is not required for the IDIQ proposal if prime proposes that subcontractor will work under prime contractor price ceilings.

RESPONSE: How the subcontractor cost is reflected on Attachment 6 – Pricing Sheet, will depend on the agreement/contract negotiated between the prime and subcontractor. The Government prefers Time & Material (T&M) between the prime and subcontractor. The prime has the responsibility to evidence to the Government how their subcontractor rates are fair and reasonable. Per SF 33, Section “L” paragraph 5.1… “The Offeror shall not propose labor rates that are derived from blending two or more separate Contractors or Subcontractors.” SF 33, Section “L” paragraph 5.1 has been updated to reflect the preference of T&M type contracts between the prime & subcontractor. Attachment 6 – Pricing Sheet has been updated to reflect a T&M column.

Task orders will be awarded to the prime as only FFP or CPFF. T&M column on the Attachment 6 – Pricing sheet was added allow for 3 different contracts types/agreements between the prime and their subcontractor (i.e. FFP, CPFF or T&M).