Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF JUNE 25,1998 PSA#2124

AETC CONS/LGCK 550 D Street East Ste 08 Randolph AFB TX 78150-4434

M -- MAXWELL AFB OPERATIONS SUPPORT SERVICES (AMENDMENT TO JUNE 8, 1998 SYNOPSIS) SOL F4168999R0001 DUE 072498 POC Linda Byerly, Contracting Officer E-MAIL: Click here to contact the Contracting Officer, byerlyl@rndgate1.aetc.af.mil. SUBJECT: REQUEST FOR INFORMATION (RFI) The Air Education and Training Command (AETC) is seeking information and comments from industry on various topics that will be used to refine the acquisition strategy of a large OMB Circular A-76 cost study of Operations Support services at Maxwell Air Force Base, Montgomery, Alabama. The general functional areas included in the study are Communications, Civil Engineering, Services, Mission Support Squadron (Personnel), Maintenance (Transient Alert), Supply, Transportation, Logistics Support and Operations Support. Comments and information on the following are requested: (1) Award term: This is a concept similar to an award fee provision except the government may adjust upward or downward the contract length based upon the contractor's performance. There are no option periods, only a basic period with additional performance time earned through the award term. Please refer below for a more thorough description of award term. Please address if you like the whole concept or just a portion. If you just like a portion, which part and why? If you like the whole concept, why do you like it? What changes would you recommend to the concept? Why? Also, answer the question, "Would you rather see a contract with option periods or a contract with award term?" (2) Start-up costs: Based upon the functional areas delineated above and general commercial practices, what might be the extent of the start-up costs involved with an effort of this magnitude. When you take on a new client for these types of services, do you normally encounter substantial initial investment? How much and of what do these costs consist? (3) Period of Performance: Please comment and make recommendations on the optimum length of the: (a) Basic performance period; (b) Each additional performance period; and (c) Total contract performance period. Please include reasons for your answers. (4) Contract type: From the following, what type of contract for this large effort would you like to see? (a) Cost plus incentive fee (CPIF); (b) Cost plus fixed fee (CPFF); (c) Cost plus award fee (CPAF); (d) Fixed-price incentive firm (FPIF); (e) Combination of the above (please describe); or (f) Other, please describe. (5) Incentives: What type of incentive program would be most in line with industry practices? (a) Cost incentives by sharing in cost savings; (b) Award fee; (c) Award term; (d) Combination, please specify; or (e) Other, please describe. Which ones would you like to see on our contract and why? Which ones would you not like to see in the contract? Industry responses to this RFI should be submitted to the attention of Ms. Linda Byerly, AETC Contracting Squadron/LGCK, 550 D Street East Ste 08, Randolph AFB TX 78150-4434 no later than 24 Jul 98. E-mail responses may be sent to: byerlyl@rndgate1.aetc.af.mil. This RFI is for information and planning purposes only and shall not be construed as an obligation on the part of the Government to acquire any products or services. The Government does not intend to award a contracton the basis of this RFI and all information and materials shall be made available at no cost to the Government. Below is a description of award term, as mentioned above in paragraph (1). Two sample scenarios are described, each with a slightly different structure. Tell us which aspects of each scenario you like. Which scenario do you like better? Would you like to see a combination of the scenarios? Tell us how you would construct the award term. SCENARIO #1 1. The award term clause is similar to the standard award fee clause and is part of a contract with a five-year initial contract period. Under the award term clause, the government may adjust the contract length to a minimum of three years and a maximum of ten years (all ten years would be costed at time of award and offeror is evaluated based on those ten). 2. The decision to extend or decrease the contract's ordering period starts with an award term review board meeting annually (semi-annually the board will meet to assess and provide feedback to the contractor on its performance the preceding six months, but this is for informational purposes only and is not part of the award term evaluation). The term determining official (TDO) gives points to the contractor ranging from -100 to +100 points; these points determine whether the term of award is extended or decreased. If the contractor has unsatisfactory performance, then the TDO will award between -1 and -100 points. For satisfactory performance, between 0 and 30 points, and for excellent performance, between 31 and 100 points. These points are accumulated in an account and when the thresholds of 100 or -100 are reached, the government modifies the contract period by increasing (if 100 is met) or decreasing (if -100 is met) it by one year; at the same time the government also adjusts the account by either subtracting 100 points (if a one-year extension is made) or adding 100 points (if a one-year deduction is made) to the account balance. However, whenever the term of the contract does not extend beyond one year (the lead-time necessary for AETC to obtain a new contract) from the TDO's award decision, an automatic and irreversible trigger occurs to recompete the contract. Under these circumstances, the contract will not be increased or decreased further. 3. Just like a standard award fee, the government may make unilateral changes to the award term plan. Furthermore, all TDO decisions regarding the award term are unilaterally made by the government and not subject to the disputes clause. SCENARIO #2 1. The award term clause is similar to the standard award fee clause and is part of a contract with a three-year initial contract period. Under the award term clause, the government may adjust the contract length only upward to a maximum of seven years (all seven years would be costed at time of award and offeror is evaluated based on those seven). 2. The decision to extend the contract's ordering period starts with an award term review board meeting semi-annually. The term determining official (TDO) givespoints to the contractor ranging from 0 to +50 points; these points determine whether the term of award is extended. If the contractor has unsatisfactory performance, then the TDO will award between 0 and 15 points; for satisfactory performance, between 16 and 30 points; for above satisfactory, between 31 and 40; for excellent performance, between 41 and 50 points. These points are accumulated and when the threshold of 100 is reached, the government modifies the contract period by increasing it by one year; at the same time the government also adjusts the account by either subtracting 100 points (if a one-year extension is made) or adding 100 points (if a one-year deduction is made) to the account balance. However, whenever the term of the contract does not extend beyond one year (the lead-time necessary for AETC to obtain a new contract) from the TDO's award decision, an automatic and irreversible trigger occurs to recompete the contract. Under these circumstances, the contract will not be increased further. 3. Just like a standard award fee, the government may make unilateral changes to the award term plan. Furthermore, all TDO decisions regarding the award term are unilaterally made by the government and not subject to the disputes clause. (0174)

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