FA564121R0010
EITEN Industry Day
Attachment 7- Pricing Strategies
EITEN Pricing Discussion Approaches and Questions for Industry
While the Government intends to award the initial task order (FA564122F0001 - Information Technology
Support Services [ITSS]) based on a reasonable and realistic price established via competition, the
Government has not finalized its decision on the most effective process for pricing future task orders. The
Government seeks industry input on the following potential task order execution and pricing strategies.
The Governments goal is to ensure quick execution of future task orders with an efficient process for
both Government and Industry, while at the same time ensuring pricing properly accounts for risk over
the 10-year ordering period.
1.0
Fixed Price and Cost Reimbursable Elements
Overall, the Government intends to award task orders with a combination of fixed price labor CLINs and
cost reimbursable (no fee) CLINs for travel and other labor-related costs. Fixed price elements will be
priced on a monthly basis, and cost reimbursable CLINs will be not-to-exceed (NTE) amounts based on
pre-determined or publicly available reimbursement rates. Cost reimbursable elements will include:
Travel (Government-predetermined NTE amount)
Dependent tuition reimbursement (based on DoD Education Activitys published OCONUS
School Year Tuition Rates PDF link, with Government-predetermined NTE amount based on
estimated number of qualified dependents)
Cost of Living Allowance (based on US Department of State Office of Allowances published
COLA for applicable performance locations HTML link, with a Government-predetermined
NTE amount based on estimated number of personnel)
DOCPER Differential (A Government-defined NTE amount contingent on disapproval of
positions for SOFA status where applicable).
The goal of the above reimbursables structure is to balance Government and Contractor labor cost risks
due to significant challenges with OCONUS recruitment and retention, as well as fluctuating labor-related
costs outside the control of both parties. The Government anticipates Fixed Price CLINs will include all
burdened aspects of the contractors costs, and all cost reimbursable CLINs will be reimbursed without
fee.
ITSS Task Order Award:
Outlined in Section 3.0 below are three different task order pricing strategies being contemplated by the
Government. Regardless of future task order pricing and execution processes, the Government intends to
award the initial task order (ITSS) as part of the wider IDIQ award under the following conditions:
The Government will provide a pricing sheet that requests a firm-fixed price for each
performance location (to be identified in the solicitation), on a monthly basis through the base and
all option periods.
The pricing sheet will include Government-provided plug numbers for reimbursable elements
noted above.
Total Evaluated Price (TEP) is the sum total of all fixed and cost reimbursable CLINs.
FA564121R0010
EITEN Industry Day
Attachment 7- Pricing Strategies
The Government intends to make award of the IDIQ and ITSS task order to the Highest Technically
Rated Offeror with a Reasonable and Realistic Price (RRP) for the ITSS task order. The Government
defines RRP as a TEP which falls within a range above (+15%) or below (-15%) the average TEP of the
top five (5) highest technically rated offerors.
Future EITEN Task Order Awards:
Future Task Order Pricing Course Of Action (COA) #1 Pre-Priced Labor Categories:
In addition to ITSS pricing sheet noted in Section 2.0, with their proposal Offerors will provide fully-
burdened labor rates for a pre-defined set of labor categories for each year of the IDIQ ordering period,
with rates specific to four major performance locations Germany, UK, Italy and Rest of Europe. This
menu of pre-priced labor categories will be incorporated as an attachment to the contract, and future Task
Order Proposal Requests will require the awardee to utilize the pre-priced labor rates as a basis for all
Fixed Price elements of the overall TO price. The Government will compare rates from all offers
submitted to utilize competition to support a determination of fair and reasonable prices.
Future Task Order Pricing COA #2 Negotiated Task Orders:
The Government and the awardee will negotiate pricing of each future task order independent of other
existing TOs and based on the TO Performance Work Statement, prior to execution of the order. Certified
cost or pricing data and/or other than certified cost or pricing data may be required to determine rates fair
and reasonable for each order.
Future Task Order Pricing COA #3 Negotiated Labor Categories:
This is a hybrid approach of COAs #1 and #2, in which a menu of pre-priced labor categories will be
utilized to execute future task orders, but finalized after IDIQ award. All offerors will propose fully
burdened rates in their IDIQ proposal as outlined in COA #1. These proposed rates will be utilized as the
basis for negotiation of finalized rates immediately after award of the IDIQ. Negotiated rates will then be
utilized for the entirety of the ordering period as outlined in COA #1.
Under COA #3, the Government intends to define reasonable labor rates in a manner similar to the RRP
defined for the ITSS task order. The Government will accept without negotiation all proposed rates for
the entirety of the ordering period which fall within a range above (+15%) or below (-15%) the average
rate proposed by the top five (5) highest technically rated offerors for the same pre-defined labor
category. For any rate that falls outside this range, the Government will find the individual proposed rate
to be unreasonable, and will negotiate a rate that is fair and reasonable. Certified cost or pricing data
and/or other than certified cost or pricing data may be required after IDIQ award to justify rates
determined unreasonable. The Government anticipates a negotiated solution on all unreasonable rates at
one time, and incorporation of a finalized menu of pre-priced labor categories with an IDIQ-level
modification shortly after IDIQ award. This menu of pre-priced labor categories will be incorporated as
an attachment to the contract, and future Task Order Proposal Requests will require the awardee to utilize
the pre-priced labor rates as a basis for all fixed price elements of the overall TO price.
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