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