APPENDIX DD-SIMPLIFIED ACQUISITION OF BASE ENGINEER REQUIREMENTS PROGRAM
TABLE OF CONTENTS
Paragraph Title Page
PART 1-GENERAL DD-1
DD-101 Scope. DD-1
DD-102 Definitions. DD-1
DD-103 Purpose of the SABER program. DD-2
DD-104 Limitations. DD-3
PART 2-ACQUISITION PLANNING AND SOURCE SELECTION DD-5
DD-201 SABER working group. DD-5
DD-202 SABER specifications and the Unit Price Book. DD-6
DD-203 SABER acquisition strategy. DD-6
DD-204 Pre-solicitation activities. DD-8
DD-205 Request For Proposal (RFP). DD-8
DD-206 Reserved. DD-10
PART 3-SABER PROGRAM EXECUTION AND CONTRACT ADMINISTRATION DD-10
DD-301 Processing civil engineer project orders. DD-10
DD-302 Delivery order issuance and modifications. DD-13
DD-303 Inspection and acceptance. DD-13
DD-304 Adding NIPs to the UPB. DD-14
DD-305 Funding. DD-15
DD-306 Liquidated damages. DD-15
DD-307 Bonding. DD-15
PART 4-OPTIONS AND FOLLOW-ON CONTRACTS DD-16
DD-401 Initial term and options. DD-16
DD-402 Option price adjustments. DD-16
DD-403 Davis Bacon Wage Determinations. DD-17
DD-404 Follow-on contracts. DD-17
ATTACHMENT DD-1 SAMPLE COMMERCE BUSINESS DAILY SYNOPSIS DD-18
ATTACHMENT DD-2 Reserved DD-20
ATTACHMENT DD-3 Reserved DD-21
ATTACHMENT DD-4 Reserved DD-22
ATTACHMENT DD-5 Reserved DD-23
ATTACHMENT DD-6 SAMPLE SABER COST COMPARISON DD-24
TRADITIONAL COST ESTIMATE CALCULATIONS [EXAMPLE] DD-26
SABER COST ESTIMATE CALCULATIONS [EXAMPLE] DD-27
ATTACHMENT DD-7 SAMPLE CLAUSE FOR SABER ECONOMIC PRICE ADJUSTMENT (EPA) DD-33
ATTACHMENT DD-8 DELIVERY ORDER FILE CHECKLIST DD-35
APPENDIX DD-SIMPLIFIED ACQUISITION OF BASE ENGINEER REQUIREMENTS PROGRAM
This appendix provides policies, procedures, and guidelines for implementing the Simplified Acquisition of Base Engineer Requirements (SABER) program as described in AFFARS 5336.293.
"SABER contract" means a fixed-price indefinite-delivery/indefinite-quantity (IDIQ) contract with provisions for economic price adjustments. A SABER contract includes a collection of detailed task specifications that encompass most types of real property maintenance, repair, and construction work. SABER contracts include options for work in years beyond the initial performance period. The significant features of a SABER contract include:
(1) "The Unit Price Book (UPB)" The UPB is made up of the detailed task specifications along with a standard unit of measure and a unit price for each. The task specifications and unit prices apply to a general area or industry, therefore it is necessary to tailor the UPB to the costs and practices of a specific location. This step, which is called localization, is critical to the success of a SABER program. Localization of the voluminous data in the UPB is normally accomplished using computer programs. Government and commercial software alternatives are available for compiling the basic task listings and standard unit prices and the localization process; and
(2) "Coefficients" Coefficients are factors that are multiplied against the standard unit prices in the UPB in calculating delivery order (DO) prices. During source selection for the SABER contract, offerors propose coefficients in consideration of cost elements such as: overhead, profit, minimum design costs, G&A expenses, bond premiums, and gross receipts taxes. The number of coefficients that a SABER contract will contain is determined by the installation's requirements. The coefficients may include bands or ranges based on dollar levels, standard and non-standard hours, range or isolated site work, or work in secured areas. The coefficient also reflects the offeror's perception of the accuracy of the UPB. UPBs that are consistently lower than prices found in the local economy will cause the contractor to bid high coefficients. Inconsistent or unbalanced UPBs increases the uncertainty in preparing proposals. This can lead to high coefficients or inequitable pricing of SABER contracts. This reinforces the importance of localizing the UPB.
"SABER minimum design" means a design effort that is incidental to accomplishing the required task. Generally, minimum design would be exceeded if a typical general construction contractor would need to hire additional expertise in order to accomplish the project. The Base Civil Engineer (BCE) has the responsibility for determining what constitutes minimum design.
"SABER delivery order" Prices for individual SABER delivery orders are determined by applying contractor's coefficients to items covered by UPB and negotiating prices for items that are not included in the UPB. These non-priced items (NPI) must be within the basic intent and general scope of the contract and be negotiated separately from UPB items prior to issuance of the delivery order.
(a) The purpose of the Air Force SABER program is to expedite contract award of civil engineer requirements by reducing civil engineer design work and acquisition lead time. SABER is best suited for non-complex, minor construction and maintenance and repair projects that require minimum design.
(b) Benefits of a successful SABER program include:
(1) Improved customer service and responsiveness. After the initial contract is awarded, delivery orders (DOs) for individual projects can usually be estimated, proposed, negotiated, and issued in three to four weeks; and
(2) A contractor that is highly motivated to produce high quality work in a timely manner. While the indefinite-delivery/indefinite-quantity (IDIQ) contract must guarantee a minimum dollar value of work, award of additional work can be dependent on the quality and timeliness of the contractor's performance under the contract.
(a) General. SABER should complement the traditional construction program, not replace it. SABER is not appropriate for large, complex construction projects that require extensive design effort or for predominately single skill/material projects for which competitively bid contracts or single trade IDIQ contracts would be more cost effective. SABER cannot be used to make up for inadequate planning by the Government, which can lead to numerous changes after construction is started. Whatever benefits are gained from the expeditious start of a project can be quickly overcome by subsequent delays and added costs to correct poor planning and preparation.
(b) Architect-engineer (A-E) services.
(1) The Brooks Act (40 U.S.C. 541-544) requires engineering services to be acquired using specific procedures (see FAR Subpart 36.6). SABER shall not be used to acquire engineering services as defined in FAR 36.102.
(2) Taskings in SABER UPBs and corresponding coefficients include minor design efforts needed to complete a project, such as basic layout and planning of work, fabrication and assembly of structural elements, form fit and attachment details for installation of materials and/or equipment, production of shop and/or record drawings, and other similar activities which do not require the services of a registered architect or engineer. However, a SABER contract may not be used to execute a project that was designed using A-E services except when:
(i) Design validation/updating is required for an A-E designed project due to age of the design; or
(ii) The A-E design was not completed beyond 35 percent and the remaining design effort does not require a significant amount of A-E services.
(c) Delivery order limitations. An individual SABER DO shall not exceed $500,000, unless this limitation is waived by the installation commander. For projects over $500,000, the use of SABER pre-priced UPB may result in excessive project costs. Therefore, another contracting approach may be more appropriate. The $500,000 limitation also applies when a proposed modification to a delivery order would cause the delivery order to exceed $500,000. The waiver must be approved before the DO can be issued and is based on economic and mission requirements. The waiver authority may not be redelegated. The waiver package shall include the following:
(1) A comparison of the cost of using the SABER DO versus that of the contracting approach that would otherwise be used. This analysis must be certified by the civil engineer commander;
(2) A statement signed by the civil engineer commander outlining the mission requirements and cost considerations that justify use of a SABER order instead of an alternative contracting approach; and
(3) The written approval signed by the installation commander.
NOTE: An approved waiver to the DO limitation does not negate the contractor's right pursuant to the clauses at FAR 52.216-19, Order Limitations, and FAR 52.216-22, Indefinite Quantity, to reject an order that exceeds the contract maximum.
(d) NPI limitations. The need to negotiate NPIs reduces the efficiency of the SABER contract and may undermine the cost savings of prepriced items realized through the SABER competition. The value of NPIs for an individual SABER DO shall not exceed ten percent of the total value of the DO, unless this limitation is waived by the installation commander. The waiver authority may not be redelegated and does not extend to DOs in which NPIs would exceed 25 percent of the value of the DO. Therefore, no SABER DO may be issued when the relative value of its NPIs exceeds 25 percent. The waiver must be approved before the DO can be issued and may be based on economic or mission requirements. The waiver package shall include the following:
(1) A comparison of the cost of using the SABER DO versus that of the contracting approach that would otherwise be used. This analysis must be certified by the civil engineer commander;
(2) A statement signed by the civil engineer commander outlining the mission requirements and cost considerations that justify use of the SABER order with NPIs that exceed the ten percent limitation instead of using an alternative contracting approach; and
(3) The written approval signed by the installation commander.
(e) Non-personal services. SABER shall not be used to perform non-personal services subject to the provisions of the Service Contract Act (e.g., a delivery order solely to install carpet when the labor involved exceeds $2,500). The Department of Labor (DOL) has jurisdiction over whether a particular requirement is classified as construction work subject to the Davis Bacon Act or services to which the Service Contract Act applies. DOL guidance provides that services such as carpet installation, landscaping, asbestos removal, and building demolition may be performed as construction when the work is incidental to a larger construction project. If the preponderance of the work involves the services cited, although there may be some incidental related construction work, the project falls under the Services Contract Act and shall not be performed using SABER.
(a) Successful SABER programs require team effort. Whether establishing a new SABER program or awarding a follow-on contract, a working group of all SABER players in CE and Contracting should be convened at the beginning of the planning process. This group should be chaired by the BCE or SABER Chief, assisted by the contracting officer and should hold regularly scheduled meetings until the solicitation is issued. The working group should gain the support of the installation commander and the using organizations. An early beginning to this communication and education process is crucial to the SABER program's success.
(b) Initially, the SABER working group should concentrate on:
(1) Estimating the expected scope of SABER for the installation or civil engineer organization, in order to establish a budget for the SABER program and the guaranteed maximum and minimum amounts to be included in the contract;
(2) Contacting associate organizations and other local Department of Defense installations as possible sources for up-front funding and projected budget requirements; and
(3) Determining the best organization for the SABER unit, including a calculation of the appropriate size of the SABER staff and identification of the types of personnel needed. The working group should investigate the feasibility of establishing a joint effort with other nearby bases (including Army, Navy, Air Force Reserve, and National Guard installations).
(a) Once the SABER requirements and budget are established, the BCE prepares the SABER program specifications. These include the master specification and the technical or guide specifications. The master specification describes the overall scope of the SABER program and is included in Section C of the Request For Proposal (RFP) under the heading "Description/Specification/Work Statement." The technical specifications define the specific construction standards for the tasks that will be ordered under the contract and form the basis for developing line item work tasks in the UPB.
(b) After developing the specifications, the BCE prepares the UPB, which is a compilation of the standard work tasks along with standard unit prices that will be included in the RFP and contract. Each of the prospective contractors will propose multipliers or coefficients, This listing of prepriced items becomes the basis for what may be ordered under the SABER contract. The UPB is the tailoring of the base data (which are priced at various locations nationally) to reflect accurate local construction practices and costs.
(a) As early in the acquisition process as practicable, the contracting officer shall convene an Acquisition Strategy Panel (see 5307.104-91) to ensure that an effective approach is established for executing the acquisition.
(b) At this point, the heads of the operational contracting and civil engineer organizations should jointly determine the best SABER unit organizational structure to maximize communications and provide a dedicated team approach. The contracting personnel responsible for SABER may include contracting officers, negotiators, price analysts, and administrators, depending on acquisition phase and installation SABER workload. The individual serving as the SABER administrator should be involved as early as possible in the process, even if not normally part of solicitation and contract award activities.
(c) During this phase of the program, extensive effort is required to develop a plan of action considering:
(1) Acquisition background and program objectives;
(2) The anticipated SABER requirements and program value;
(3) The master and guide specifications and the UPB; and
(4) The anticipated delivery or performance period requirements.
(d) In developing the Acquisition Plan the contracting officer should consider:
(1) The anticipated sources;
(2) The need to enhance competition and use streamline source selection procedures;
(3) Any unique contracting considerations;
(4) Budgeting and funding concerns;
(5) Any management information requirements;
(6) Government-furnished property (e.g., office space, furniture, telephones, utilities, etc.);
(7) Environmental considerations;
(8) Security considerations;
(9) Milestones for the acquisition cycle; and
(10) Identification of the participants in the acquisition planning.
(e) The Acquisition Plan should contain a schedule with milestones that identify the OPR and a date by which each task must be completed. Again, the preparation of the acquisition plan is a team effort requiring the inputs of both the contracting and civil engineer representatives, and specific OPRs should be aware of their required contributions. While the contracting officer maintains overall control of the plan, the technical elements of the requirement are the responsibility of the BCE.
This phase of the SABER acquisition process includes all activities associated with standard construction contracting, including applicable statutory and regulatory requirements.
(a) Commerce Business Daily (CBD) synopsis requirements and pre-solicitation notices. FAR 5.101 requires contracting officers to publicize proposed contract actions to increase competition, broaden industry participation in Government requirements, and assist small and small, disadvantaged businesses in obtaining contracts and subcontracts. SABER solicitations are, at a minimum, publicized in the CBD. A sample CBD synopsis is provided at Attachment DD-1. Also, the contracting officer should consider using presolicitation notices (see FAR 15.404) to identify interested sources and to facilitate preparation of proposals by interested offerors to save time and documentation. FAR 36.302 provides additional information regarding construction presolicitation notices.
(b) Reserved.
(a) The SABER RFP should closely mirror the format and content for a large construction solicitation. Specifically, a SABER RFP should include the following:
(1) Section B of the Schedule, identify the coefficient(s) that the offeror must propose and describe:
(i) The factors that generally make up the coefficient(s);
(ii) Instances where two or more coefficients may be required (e.g., for standard hours, non-standard hours, geographically-separated ranges or sites, and secure areas); and
(iii) Instructions for incorporating Davis Bacon Act labor rate updates and other appropriate changes in the coefficients for options. The contracting officer should establish an economic price adjustment (EPA) clause in accordance with instructions in Attachment DD-7.
(2) Section C of the Schedule should clearly define the SABER requirements, including:
(i) The scope and nature of the requirement;
(ii) The applicable contract technical specifications and UPB;
(iii) A sample calculation of a "typical" SABER project (using a project that will actually be awarded later under the resulting SABER contract); and
(iv) The level of architectural/drafting support to be performed by the contractor.
(3) In developing the elements of the RFP:
(i) Specify a first contract performance period of 12 months (to provide a full year's performance for option exercise purposes), if any phase-in period is required, it should be a separate, unpriced line item in the solicitation and resulting contract;
(ii) Do not establish the start of performance periods/option years on or about 01 Oct (avoid tying it to the beginning/end of the fiscal year);
(iii) Require the contractor (and allocate space accordingly) to establish an on-base office;
(iv) Minimize the number of price coefficients and keep them as simple as possible;
(v) Do not use the term "overtime" in reference to non-standard hour effort;
(vi) Establish realistic contract minimum and maximum dollar amounts;
(vii) Establish, understand, and be able to explain the method for option year adjustments (using either the EPA clause and pre-determined formulas/criteria or by updating the UPB);
(viii) Identify any required permits or certifications such as asbestos removal or environmental work;
(ix) Consider limiting the contractor's technical proposals to 50 pages or less to expedite evaluation. Do not set a limit on resumes;
(x) Require large businesses to include subcontracting plans with initial offers. This prevents premature indications that a firm is the apparent successful offeror and avoid delays resulting from subsequent contracting officer requests for such plans; and
(xi) Keep the base legal office and reprographics function apprised of your solicitation schedule to accommodate short suspenses.
(4) Terms and Conditions. Address the following items as appropriate:
(i) Bonding requirements;
(ii) Ordering procedures;
(iii) The Government's right to perform work of the same type as the SABER contractor without breaching or violating the contract; and
(iv) A mechanism for and frequency of adding NPIs to the UPB.
(e) Pre-proposal conferences. The unique aspects of SABER and the requirements of each installation make pre-preproposal conferences worthwhile. These conferences force the Air Force SABER team to consider various perspectives and differing interpretations of the Government's solicitation. By allowing potential contractors to ask questions, the Air Force can anticipate the receipt of better proposals and an overall smoother acquisition. Planning for the conference should include the selection of an appropriate facility conducive to questions, discussion, and the exchange of information.
(a) Issuance of project order. The Civil Engineer Project Manager:
(1) Provides the statement of work, including concepts, sketches, and drawings;
(2) Identifies any statutory cost limitations;
(3) States any special instructions or requirements; and
(4) Includes a preliminary independent cost estimate and any required cost comparisons, justifications, and approvals.
(b) Site visit. The SABER project manager/inspector, contracting officer representative, using organization, and contractor will conduct a scope validation/site visit for each delivery order. Discussions include:
(1) Site access;
(2) Methods and alternatives for accomplishing work;
(3) Definition and refinement of requirements;
(4) Requirements for plans, sketches, drawings, etc.;
(5) Detailed scope of work; and
(6) Time requirements for completion, phasing requirements, and liquidated damages.
(c) Independent Government cost estimate. After the joint scope validation site visit, the SABER Project Manager updates the project order package to include any revised drawings and submits a detailed independent Government cost estimate as required in FAR 36.203. For DOs or DO modifications that exceed the simplified acquisition threshold, the Government cost estimate is required. For DOs or modifications that are less than the simplified acquisition threshold, this requirement is optional at the discretion of the contracting officer. The contracting officer may not begin negotiations without the independent cost estimate and must justify in the price negotiation memorandum (PNM) any differences from these estimates. Should the estimate change for any reason, the revised estimate and accompanying explanation/rationale must be provided in a timely manner to the contracting officer. The Government cost estimate must identify and provide cost estimates for any NPIs. The estimate shall be approved in writing by the appropriate BCE official, stamped "FOR OFFICIAL USE ONLY," and protected from unauthorized disclosure. If the project scope changes significantly or negotiations reveal errors in the Government estimate, the SABER program manager will provide a corrected estimate or explanation to the contracting officer.
(d) Contractor's proposal. After receiving the formal purchase request and approved independent cost estimate, the contracting officer requests the contractor to provide a detailed price proposal. The contractor develops this proposal by identifying necessary tasks in the UPB, verifying as-built drawings, refining quantities, pricing NPIs, preparing working drawings, and developing performance times. The SABER program manager may need to answer questions from the contractor and clarify technical aspects of the project.
[Amended per CPM 99-C-04, 19 Aug 99, effective until updated in an AFAC]
(e) Delivery order negotiation.
(1) The contract administrator and contracting officer review the contractor's proposal for scope, compliance, completeness, and reasonableness by comparing it with the Government requirement and cost estimate. The contract administrator then forwards the technical proposal to the program manager for a technical review. The contracting officer evaluates the proposed method of construction, tasks, quantities, performance schedules, and any contractor drawings.
(2) After receiving the technical evaluation from the program manager, the contracting officer conducts meetings to review the proposal with the contractor. The contracting officer, with assistance from the program manager, establishes the Government's negotiation objective, including any variations involving tasks, methodology, quantities, NPIs, and timelines. [Use the AF Form 3064, Contract Progress schedule, in accordance with AFFARS 5336.291(a).] The contracting officer must ensure that the value of the DO does not exceed $500,000 or the relative value of the NPIs does not exceed ten percent of the value of the DO, unless waivers are approved. An example of a SABER cost comparison to justify waiver of the $500,000 limitation is provided as Attachment DD-6.
(3) If the contractor's proposal is not acceptable, either:
(i) Return the proposal to the contractor for rework; or
(ii) Return the work request folder to the BCE to determine if the project should be canceled, delayed, or accomplished by some other means than the SABER contract.
(4) After completing negotiations, the contracting officer prepares a price negotiation memorandum (PNM) in accordance with FAR Subpart 15.8. All SABER delivery orders must have a PNM that:
(i) Specifies the extent the contracting officer relied on the Government estimate and explains any significant differences between the estimate and the final negotiated price;
(ii) Describes any changes to the Government negotiation position and Government estimate. Additional technical support documentation required to support a change in the objective, will be prepared by the program manager and revisions to the estimate must be approved by the appropriate BCE;
(iii) Explains the basis for the final negotiated amounts for each task under the UPB and each NPI and demonstrate that the contracting officer effectively considered all significant aspects of the project and contractor's proposal; and
(iv) Contains a determination that the negotiated price is fair and reasonable.
(a) After all required documentation and approvals such as clearance requirements, have been completed, the contracting officer issues the DO. The DO should include the specifications and/or statement of work and any associated drawings. The contractor commences work in accordance with the negotiated schedule.
(b) If bona fide differing site conditions are encountered during the execution of the delivery order, or a legitimate change to the work is required, the delivery order may be modified.
(1) The program manager will initiate a request for modification in the same manner as the transmittal of the original requirement. The contracting officer and program manager must thoroughly document all actions (new site visits, technical evaluations, negotiations, etc.) regarding the change to include any consideration given or received.
(2) The contracting officer then requests the contractor to submit a change proposal to address any new taskings or changes to the current DO. The change proposal is evaluated by the Government in much the same manner as the original proposal. If the modification would cause the DO to exceed the limitations at DD 104, a waiver must be approved before the modification to the DO may be issued.
(a) The program manager is responsible for ensuring the performance of quality assurance inspections associated with the delivery order until work completion, including final inspection and acceptance. Inspection requirements specified in AFI 32-1023, Design and Construction Standards and Execution of Facility Construction Projects, must be complied with.
(b) Contracting officers and contract administrators must establish procedures to monitor contractual requirements including the percentage of direct work completed by the SABER contractor as specified at FAR 52.236-1, Performance of Work by the Contractor. Additionally, the SABER program manager must provide surveillance to ensure compliance with contractual superintendence and DBA requirements.
(c) The goal of the contracting process is to have the contractor satisfactorily perform the requirements of the basic contract and each delivery order. Upon acceptance and certification of work completion, the acceptance documentation is forwarded to accounting and finance for payment. When the DO is completed, the program manager forwards the inspection logs to the contract administrator (for inclusion in the contract file) and the project folder to Customer Service for close out.
(a) When prices for NPIs are negotiated and incorporated in a DO, this does not incorporate the items in the UPB for subsequent use as a priced item. To permit subsequent use under the UPB, NPIs must be incorporated by supplemental agreement to the SABER contract. This may be done in conjunction with an annual update to the UPB to address economic conditions or separately at another time during the year. Also, a contract provision may be developed to permit regular (such as quarterly or annual) incorporation of negotiated NPIs into the UPB. However, prices already established in the UPB may not be adjusted in this way.
(b) Once an item has been added to the UPB, it becomes a prepriced item under the contract. Therefore, when negotiating NPI additions to the UPB, care must be taken to ensure only the direct costs of the NPI are included in the UPB. Before adding items to the UPB, adjust negotiated current year direct costs. Account for indirect costs by applying the coefficient to the UPB price when the requirement is ordered under individual DOs. To simplify the process of adding NPIs to the UPB, NPIs should be negotiated at current year direct costs and then adjusted back to base year costs by multiplying by the economic price adjustment index for the base year and dividing by the contract economic price adjustment index for the current year. The coefficient can be applied to a delivery order NPI when only direct costs are negotiated for the NPI.
(a) In order to expedite year end or emergency requirements, SABER projects may be processed up to the point of award in advance of funding.
(1) The independent Government cost estimate must be provided to the contracting officer prior to negotiations.
(2) Prior to requesting the contractor's proposal (if the contract does not include a line item for project estimating, proposal fee paid to the contractor and later deducted from the delivery order amount if the project is awarded), the contracting officer must obtain from the contractor a no cost agreement if the order is not awarded with acknowledgment that funds are not available.
(b) The contracting officer establishes milestones for actions in support of end of year actions to ensure sufficient lead time for SABER review, approval requirements, receipt of independent SABER project cost estimates, technical analyses, and negotiations. Cut-off dates are established to ensure the Government negotiation team has adequate time to review the estimate and develop a negotiation objective prior to negotiations.
(a) Liquidated damages are applicable to individual delivery orders, not the total contract.
(b) The determination to include liquidated damages on a delivery order shall follow the procedures in FAR 12.202 and FAR 36.206. Consideration must be given to the total number of orders outstanding and the ability of the contractor to control project milestones.
(a) The amount of bonding the Government requires is determined in accordance with FAR Part 28. For SABER contracts, the initial bond amounts are based upon the guaranteed minimum quantity.
(b) FAR Part 28 allows the contracting officer flexibility in increasing the bond amounts in the course of contract performance. When the value of delivery orders in progress exceeds the existing bonding, the contracting officer should get additional bond protection by directing the contractor to increase the penal amount of the existing bond, or to obtain additional bonds. When the guaranteed dollar amount is exceeded, FAR 28.102-2 (a) and (b) penal sums apply. The cost for the additional bond security is included in the coefficient and no adjustment to price shall be made.
(1) In negotiated SABER contracts, the contractor should include bond premiums costs as indirect costs based upon the total contract amount, not just the bonding requirements imposed for the minimum guarantee at contract award.
(2) The payments clause (see FAR 52.232.5, Payments Under Fixed-Price Construction Contracts) requires the Government to reimburse the contractor for bond premiums upon request if the contractor provides evidence of full payment of such premiums to the surety. Since the premiums are an indirect expense which have been included in the contractor's coefficient, payment for such premiums are the same as all other progress payments made under delivery orders. Payment for bond premiums, at any point during contract performance, are not additional costs under the contract.
The initial term of a SABER contract is normally 12 months. SABER contracts include options to increase the term of the contract in annual increments. In deciding the number of annual options to include, the contracting officer should balance the benefits of increased administrative efficiency in exercising the option and the positive performance incentive offered to the incumbent contractor against the added economic and market risks that result from extending the contract term. Generally, three options years offer an optimum balance. The contracting officer shall not include options for more than four years.
SABER contracts shall contain provisions for making annual adjustments to the option prices. This may be done either by incorporating a new UPB that has been updated to reflect current market conditions or by updating the coefficients using criteria and predetermined formulas in an economic price adjustment (EPA) clause. See Attachment DD-7 for an example of a coefficient adjustment clause.
Each year new Davis Bacon wage determinations, which are issued by the Department of Labor, must be incorporated into the contract. New wage rates may be incorporated in the UPB under a contract clause that provides for annual updates to the UPB or by adjusting the coefficients under an EPA clause. An example of a contract clause follows:
"Incorporation of Current Davis Bacon Wage Decision for Option Periods.
The contracting officer shall, concurrent with exercise of any annual option, incorporate the current applicable Davis Bacon Wage Decision, which shall become effective on the first day of the option period and shall remain effective for the entire option period. The contractor shall compensate all covered employees at not less than the rates specified on the Wage Decision applicable to the current option period. No contract price adjustment will be made relative to incorporation of the current Wage Decision except as may be required in accordance with Provision [identify provision], economic price adjustments."
Follow-on contracts should incorporate lessons learned from previous contracts in order to improve the effectiveness of each successive effort. Each installation should ensure thorough documentation of the experiences under the SABER contract. Lessons learned should be made available to SABER personnel and made a part of training. Document preparation and source selection activities can take up to nine months, therefore it is imperative to begin planning and preparation for a follow-on SABER contract early.
ATTACHMENT DD-1 SAMPLE COMMERCE BUSINESS DAILY SYNOPSIS
SIMPLIFIED ACQUISITION OF BASE ENGINEERING REQUIREMENTS (SABER)
ESTIMATED BID OPENING DATE: [insert date] Contact [identify contracting specialist and provide phone number] for solicitation package. The subject acquisition is for a broad range of maintenance, repair, and minor construction work on real property at [insert name of Air Force base] AFB and its associated sites. The work is required in support of [insert activity name] CES, Base Civil Engineer (BCE) activities. The contract will be an indefinite delivery-indefinite quantity type contract and will include a wide variety of individual construction tasks as identified in the Unit Price Book (UPB). During the contract period, the BCE will identify construction tasks required to complete each specific job, and Operational Contracting will negotiate and issue individual delivery orders to the contractor to complete those jobs. The contractor will be required to furnish all materials, equipment, and personnel necessary to manage and accomplish the projects. The contractor will be required to maintain a management office on [insert Air Force base] AFB in order to receive delivery orders and provide other management services related to accomplishing individual jobs. Individual jobs will vary in size and complexity. The jobs will include tasks in a variety of trades, including carpentry, road repair, roofing, excavating, interior electrical, steam fitting, plumbing, sheet metal, painting, demolition, concrete masonry, and welding. The guaranteed contract minimum is $[insert dollar amount], and the proposed maximum is $[insert dollar amount]. The average value of SABER delivery orders under the current (or just completed) SABER contract at [insert Air Force base] AFB was $[insert dollar amount], with a range from $[insert dollar amount] to $[insert dollar amount]. (Otherwise, you might choose to indicate that the statistical average for all SABER delivery orders, Air Force wide, for the period 1990-1993 was $40,000 per year.) The performance period will be a twelve month basic year with four twelve-month option years. The proposed contract is being considered for 100 percent small business set-aside. Interested small business concerns should, as early as possible, but no later than 15 days of this notice, indicate interest in the acquisition by providing evidence of capability to perform and a positive statement of eligibility as a small, socially and economically disadvantaged business concern. The Government anticipates significant subcontracting activity under the SABER contract. Due to the size of the solicitation, a $[insert dollar amount] fee, payable to [insert name of payee], is required for each copy of the solicitation package requested.
ATTACHMENT DD-2 RESERVED
ATTACHMENT DD-3 RESERVED
ATTACHMENT DD-4 RESERVED
ATTACHMENT DD-5 RESERVED
ATTACHMENT DD-6 SAMPLE SABER COST COMPARISON
I. PROJECT TITLE: Paint Warehouse Interior, Bldg xxxx, [insert project number]
II. PROJECT DESCRIPTION: [insert brief description of scope of work including base priority for insertion into RPMC program]
III. TRADITIONAL COST ESTIMATE: [insert traditional estimate amount from Attachment DD-1]
IV. SABER COST ESTIMATE: [insert SABER estimate amount]
V. COST COMPARISON:
Traditional Cost: |
$333,980.00 (example figures) |
SABER Cost: |
$283,109.36 (example figures) |
Difference |
$50,870.64 |
VI. ADDITIONAL COMMENTS: [insert comments and discussion pertinent to the cost comparison analysis: do not duplicate your justification letter in this area]
Submitted:
Name, Rank/Grade, USAF
SABER Project Manager
Certified: |
Coordinated: |
Name, Rank, USAF
|
Name, Rank, USAF
|
2 Atchs
1. Traditional Cost Estimate Calculations
2. SABER Cost Estimate Calculations
Description U/I Quantity U/Cost Amount* Basis for Estimate
Ceiling corr. metal SF 130140 $1.25 $162,675.000 Experience**
Overhead Door (41 ea.) SF 12000 $1.08 $ 12,960.000 Experience**
Vinyl Walls SF 29510 $1.42 $ 41,904.000 Means
Hardboard Walls SF 9312 $0.41 $ 3,817.000 Means
Beams & Columns SF 6384 $1.25 $ 7,980.000 Experience**
Piping LF 3000 $2.64 $ 7,920.000 Means
Trusses, Metal SF 42600 $1.25 $ 53,250.000 Experience**
Lift Rental MO 3 $2000.00 $ 6,000.000 Means
Repl Wall Panels SF 1270 $3.02 $ 3,835.000 Means
Surf Prep SF- 224256 $0.15 $ 33.638 Experience**
Total $333,980.000
* Include overhead and profit in all amounts shown regardless of source.
** Estimated based on previously awarded, competitively bid, contracts for the same or similar item.
A. Project Summary:
Pre-Priced Items: Total Direct Cost (Regular Time) $211,944.25
Multiplier (Regular Time) 1.20
Total Cost (Regular Time) $254,333.10
Total Direct Cost (Premium Time) 0.00
Multiplier (Premium Time) 1.30
Total Cost (Premium Time) 0.00
Non-Priced Items: Total Direct Cost (Regular Time) $ 23,980.22
Multiplier (Regular Time) 1.20
Total Cost (Regular Time) $ 28,776.26
Total Direct Cost (Premium Time) 0.00
Multiplier (Premium Time) 1.30
Total Cost (Premium Time) 0.00
Total Project Cost $283,109.36
B. Pre-Priced Items
1. Summary:
Basic Suffix |
Description/Comments |
Quantity |
U/I |
U/Cost |
Total |
07212-1009 |
Demo Insulation |
250.00 |
SF |
$0.27 |
$67.50 |
07212-1009 |
Replace Insulation |
250.00 |
SF |
1.32 |
330.00 |
09651-1001 |
Hardboard Adhesive |
1020.00 |
SF |
1.87 |
1,907.40 |
09910-1401 |
Paint Overhead Doors |
12000.00 |
SF |
0.61 |
7,320.00 |
09910-1906 |
Paint Trusses |
S0640.00 |
SF |
0.55 |
27,852.00 |
09910-2002 |
Paint Piping |
3000.00 |
LF |
0.97 |
2,910.00 |
09910-2131 |
15% Spot Prime Ceiling |
15675.00 |
SF |
0.45 |
7,053.75 |
09910-2131 |
First Coat Ceiling |
104500.00 |
SF |
0.45 |
47,025.00 |
09910-2131 |
Second Coat Ceiling |
104500.00 |
SF |
0.45 |
47,025.00 |
09910-2132 |
15% Spot Prime Joist |
17.00 |
TON |
68.08 |
1,157.36 |
09910-2132 |
First Coat Joist |
114.50 |
TON |
68.08 |
7,795.16 |
09910-2132 |
Second Coat Joist |
114.50 |
TON |
68.08 |
7,795.16 |
09910-2133 |
15% Spot Prime Columns |
2.60 |
TON |
329.07 |
855.58 |
09910-2133 |
First Coat Column |
17.50 |
TON |
329.07 |
5,758.72 |
09910-2133 |
Second Coat Column |
17.50 |
TON |
329.07 |
5,758.72 |
09910-2133 |
15% Spot Prime Door Frame |
4.00 |
TON |
329.07 |
1,316.28 |
09910-2133 |
First Coat Door Frame |
26.00 |
TON |
329.07 |
8,555.82 |
09910-2133 |
Second Coat Door Frame |
26.00 |
TON |
329.07 |
8,555.82 |
09920-1211 |
Paint Hardboard Panel |
9312.00 |
SF |
0.59 |
5,494.08 |
nss20-1211 |
Paint Vinyl Ins Cvring |
29510.00 |
SF |
0.59 |
17,410.90 |
|
|||||
Total Direct Cost |
$211,944.25 |
||||
Multiplier |
1.20 |
||||
Extended Total - |
Pre-Priced Items |
$254,333.10 |
2. Detail:
Item |
Quantity |
U/I |
U/Cost |
Total |
07212 Rigid Insulation |
||||
1000 Rigid Board Insulation |
||||
1009 1-1/2" Urethane, R10.7 |
250.00 |
SF |
0.27 |
67.50 |
*** 19072.1001 Demolition |
||||
07212 Rigid Insulation |
||||
1000 Rigid Board Insulation |
||||
1009 1-1/2 Urethane, R10.7 |
250.00 |
SF |
1.32 |
350.00 |
*** 2001 For Vapor Barrier - Integral W/Insulation |
||||
*** 2004 For Factory Painted on Qne Surface |
||||
09651 Cementitous Underlayment |
||||
1001 Latex Underlayment - 1/8" Thick |
1020.00 |
SF |
1.87 |
1907.40 |
[********CONTINUE FOR ALL UPB ITEMS********]
Total Direct Cost |
$211,944.25 | |||
Multiplier |
1.20 | |||
Extended Total - Pre-Priced Items |
$254,333.10 |
C. Non-Priced Items Summary
Description/Comments |
Quantity |
U/I |
U/Cost |
Total |
Repl Hardboard Panels |
1020.00 |
SF |
$1.70 |
$1,734.00 |
Surface Preparation |
205962.00 |
SF |
0.10 |
20,596.20 |
Taping |
9706.00 |
SF |
$0.17 |
$1,650.02 |
Total Direct Cost |
$23,980.22 | |||
Multiplier |
1.20 | |||
Extended Total - Non-Priced Items |
$28,776.26 |
D. SABER Totals:
Pre-Priced Items (Regular Time) |
$254,333.10 |
Pre-Priced Items (Premium Time) |
$0.00 |
Non-Priced Items (Regular Time) |
$27,776.26 |
Non-Priced Items (Premium Time) |
$0.00 |
Total |
$283,109.36 |
ATTACHMENT DD-7 SAMPLE CLAUSE FOR SABER ECONOMIC PRICE ADJUSTMENT (EPA)
(a) Coefficient(s) for SABER options under this contract shall be adjusted annually to recognize variations in labor, equipment, and material costs as stated below.
(b) The Market Trends Construction Cost Index (CCI) for the city of [insert where the work is to be performed] as published in the McGraw Hill publication "Engineering News Record (ENR)" shall be used to determine adjustments to the contract coefficients for options under this contract. To determine the amount of adjustment, the contracting officer will calculate the change in the index appearing in the issue of ENR published during the month prior to the effective date of the option from [the contracting officer shall enter the most recently published index at the time of initial contract award]. Eighty percent of this variation will be applied to [the contracting officer shall enter the coefficient for the initial period of the contract]. If the publication of the index should be discontinued, the parties to the contract will negotiate a replacement index or new contract provision. If a replacement index or contract provision cannot be agreed upon, the contracting officer may unilaterally determine the contract adjustment method, and the contractor may dispute the determination under the Disputes Clause. Adjustments to option year contract coefficients shall be determined in accordance with the following formulae:
(1) To calculate the new coefficient use:
C = Ci * f
Where:
C = New Coefficient;
f = Adjustment Factor; and
Ci = Contract pricing coefficient at contract award.
(2) To calculate the Adjustment Factor use:
f = ((CCIc - CCIi) / CCIi) * 80% + 1
Where:
CCIc = the ENR index for the option; and
CCIi = the ENR index for the initial contract award.
(c) Adjustment calculations for second and subsequent option years shall each be based on the contract coefficient for the initial contract period.
Sample EPA Calculations
EPA Coefficient-Index Matrix
Action |
ENR Index |
Adjustment Factor |
Coefficient |
Contract Award |
110.0 |
NA |
1.03 |
Option 1 |
115.4 |
1.039 |
1.07 |
Option 2 |
130.2 |
1.147 |
1.18 |
Option 3 |
125.1 |
1.110 |
1.14 |
Option 4 |
100.0 |
.928 |
.96 |
NOTE: Round calculation results as done in this example.
EPA Calculations
Column 2 - ENR Indices for the options are taken from the issue of the McGraw Hill publication ENR published during the month prior to the effective date of the option. The ENR Index for the Contract Award is the most recent ENR index published during the month prior to initial contract award.
ATTACHMENT DD-8 DELIVERY ORDER FILE CHECKLIST
CONTRACT NO: _________ DELIVERY ORDER NO: __________ DATE ORDER AWARDED: _________
CONTRACTOR/SUBCONTRACTOR: ________________ AMOUNT OF THIS ORDER:___________
YES |
NO |
l. Does file contain properly approved and classified work request (AF Form 332)?
2. Are sufficient funds available and documentation contained within the file?
3. Is the memorandum for record of site visit adequate?
4. Does the independent Government cost estimate contain:
(a) The effort as stated in the RFP?
(b) Adequate pricing data for determining the reasonableness of the contractor's proposal?
(c) Non-prepriced items?
5. Does the file contain statement of work revisions for changes as a result of the site visit or negotiations?
6. Does the file contain record of installation commander approval and supporting documentation, if DO or NPIs exceed limitations?
7. Does the contractor's proposal contain:
(a) Proposal for the scope as stated in the request for proposal?
(b) Pricing by line item in accordance with the SABER UPB?
(c) Non-prepriced items?
(d) Method of construction?
(e) Other items as stated in the request for proposal?
8. Does the file contain an adequate technical evaluation?
9. Does the Record of Negotiations provide sufficient detail of the negotiated variances in price, period of performance, quantities, statement of work changes, negotiated methodology, etc.?
10. Is DD Form 1155 complete and does it contain:
(a) Accounting and appropriation data?
(b) Scope of work?
(c) Period of performance?
(d) Any mandatory methodologies?
(e) Negotiated NPIs?