Loren Data Corp.

'

 
 

COMMERCE BUSINESS DAILY ISSUE OF MARCH 5,1999 PSA#2296

SP -- BASE OPERATING SUPPORT A-76 COMPETITIVE SOURCING SUBJECT: Multiyear Request for Information 1. Offutt AFB NE is seeking information and comments from industry on Multiyear contracting. In our first Request For Information (RFI), we received positive feed back regarding the use of a Multiyear type contract for the OMB Circular A-76 competitive sourcing of Base Operations Support (BOS) services. Before this contract type is used, the Government must demonstrate that cost savings are assured over other types of contracts, such as option year. The intent of this RFI is to gather specific information regarding contractors_ experiences with Multiyear contracts (both commercial and government), Multiyear contracts_ advantages over other types of contracts, and the potential advantages for this A-76 effort. The information you provide may be used to support a Government determination to use a Multiyear type contract. Any information provided will not be released outside of the government. The following questions should give you an understanding about the type of information needed. Request you provide as much information in as much detail as possible with specific examples. This will ensure that a reasonable final decision regarding Multiyear contracting can be made and supported. 2. Cost Savings a. What differences in financing have you experienced when using Multiyear vs option year type contracts? How much money has been saved by use of a Multiyear contract, on the average? A response in terms of percentage is acceptable. b. In allowing the contractor to amortize non-recurring costs over the basic period, how much do you expect the government will save? c. What investments would you make under a Multiyear type contract that you would not make under an Option year type contract and what are the estimated cost savings? Consider investments in all areas including capital facilities, equipment, advanced technology, etc. d. What risks will drive up the price of this acquisition if it does not include Multiyear provisions? e. Regarding employees, how much do you expect to save by use of a Multiyear type contract vs option year type contract? Consider all costs associated with learning curves, productivity, and employee turnover. f. What processes will you not be able to incorporate if a Multiyear type contract is not used? What are the estimated cost savings? g. Please provide a rough estimate of expected savings to be realized if Multiyear type contract is used in lieu of an option year type contract for this acquisition. Give basis of savings. 3. Other: a. Will you propose if this acquisition does not use Multiyear provisions? If not, why not? b. Will a Multiyear type contract work as a stabilizing factor? If so, how? Please be as specific as possible, giving examples from previous Multiyear efforts. c. Will a Multiyear type contract decrease risks during the transition period? If so, how? d. If a Multiyear type contract is used, should a cancellation ceiling be included on option periods? If yes, how will this be advantageous to the Government, considering cost and other factors? 4. 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 and services. The Government does not intend to award a contract on the basis of this RFI, and all information shall be made available at no cost to the Government. 5. For more information on the Offutt AFB A-76 acquisition, please visit our web site at www.offutt.af.mil/55cons/index.htm, and then click on the Base Operational Support A-76 link under Business Opportunities. CINDY BEYER Contracting Officer WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=S&;ProjID=F25600-99-R01 51&LocID=601. E-MAIL: Janet Tweed, janet.tweed@offutt.af.mil. Posted 03/03/99 (D-SN304361).

Loren Data Corp. http://www.ld.com (SYN# 0503 19990305\SP-0015.MSC)


SP - Special Notices Index Page