Laundry_Answers_to_Questions.pdf

1) Will the contract run June 2017‐June 2018 (12mo) to include the additional 6 month volume on hand (backlog) as month 1? The total period of performance will be 12 months, beginning from the date of award. The backlog should be included in the first month.

2) What are the payment terms of the fixed price contract? – 12 equal monthly payments or volume per month or some other method? The unit of measure is "Job" which means that there is flexibility with invoicing. The preferred method of invoicing is monthly in arrears, but does allow for more than 12 invoices.

3) Will the first month payment be a prorated payment given backlog? Depending on how you quote, the first month can be invoiced to reflect the volume of the backlog.

4) What is the expected turn‐around for the 6 month backlog ‐ (48 hrs would not be feasible) ?

Please indicate a realistic turn around for the backlog in your quote.

5) Firm fixed price – typically indicates no adjustment to the contract will be made regardless of any parameter (volume) changes – all risk is assumed by the contractor to adequately bid a low cost price based on known / expected volumes. Exhibit 2 ‐ FY 2016 indicates 6423 pieces/ 13,779 lbs for the year – given a standard deviation of +/‐ 10% ‐ is 6423 pieces (12 mo) + 3449 pieces (6mo backlog) for a total of 9872 pieces a fairly solid number to expect in this contract?

My concern is if a brigade or similar comes in increasing the volume beyond 10‐15% of historical volumes.

State in your quote the expected number of pieces or lbs that you are basing your quote on, which should be based on the historical volume provided. The Government and the contractor will monitor the volume through the performance of the contract. If at some point during the performance of the contract, the volume is close to/exceeds the quoted volume, then it is possible that the contract will need to be modified. In addition, if the increased volume is such that it is outside the scope of the original contract, e.g. if we hit 10,000 pieces within the first 6 months of the contract, then we would most likely need a separate contract. Quoting that your company will provide X number of total pieces for $X total price is acceptable. Saying $X price per lb or piece is not acceptable.