QUESTIONS AND ANSWERS FOR IFBs 39‐4603, 39‐4006, 39‐4604, and 39‐4608

16 Dec 2014

Note:  The following questions were presented to the Sales Contracting Officer (SCO) about

the Invitation For Bid (IFB) for sales:   39‐4603, 39‐4006, 39‐4604, and 39‐4608.  They are being

posted so all potential bidders have access to the same information.

GENERAL QUESTIONS:

Q1 ‐ Can you explain why the current IFB has a performance period of twelve months with

two (2) twelve month options and the current contract only was awarded with a twelve

month performance period?

DLA DISPOSITION SERVICES ANSWER:  DLA DS manages contract performance periods by what

best serves the agency based on the mission and operational requirements known at the time

of the offering and our best prediction of future scrap removal requirements.  It is not

uncommon for terms and conditions of a new contract to change significantly from what is in

operation currently.  When developing new or replacement IFBs, we review the outcomes of

previous contracts, solicit feedback from our personnel on the ground, and adjust any terms

and conditions based on that experience and knowledge.  This is an iterative process by which

our goals are to continually improve, enhance, and gain efficiencies in operations and processes

on the ground and in how we offer sales and administer them.  Adding option years to our term

sales is a best business practice and very common in our term sales to improve stability,

maintain velocity, and ensure smooth and efficient operations on the ground.

Q2 ‐ Our company is very interested in submitting bids for other locations in addition to

Kuwait. The Kuwait, Bahrain and UAE bid openings are all scheduled on the same date and

time. which presents a business challenge.  We request that the bid opening for each location

be changed to different dates.  This change will allow our company to adjust our business

strategy based on the results of each bid.  Thank you for considering our request.

DLA DISPOSITION SERVICES ANSWER: DLA Disposition Services (DS) sets bid opening dates

(BOD) for sales based on mission needs and requirements.  The BOD schedule coincides with

establishing new contracts to prevent a lapse in removals.  As a matter of best business practice

for term scrap sales, BOD is set in advance of a contract expiring so the new contract will be

operational with little to no gap in removal coverage.  DLA DS does not set or change bid

opening dates based on requests from potential bidders or their ability to formulate strategy or

bids.  The Invitation for Bid (IFB) documents are posted in advance of the BOD and all potential

bidders have the same opportunity to prepare and submit bids.

   
FOREIGN ATTACHMENTS AND OTHER DEBRIS:

Q1 ‐ How did the Government arrive at the percentage?  Why is it set so high?

DLA DISPOSITION SERVICES ANSWER:  The 30% is an estimate based on historical knowledge

and experience of scrap removals.  The content within scrap piles changes from day‐to‐day

based on what is received and removed for disposal.  It is impossible to predict or calculate with

100% certainty the exact percent of foreign attachments and other debris that is in each

truckload removed.   Our experience is most removals average between 10‐15% debris due to

the environment and available loading methods. Occasionally debris levels up to 30% have

occurred.  DLA DS advises buyers to consider that up to 30% of the weight they remove may be

foreign attachment and debris.

The purpose of this IFB section is to make all prospective buyers aware that the scrap they will

receive is not purely metallic and it will contain up to 30% debris.  This is a naturally occurring

part of the scrap pile due to the very nature of the business.  Buyers are cautioned that they

should expect removals will contain materials which the buyer may find less desirable than the

metallic content.  No reductions in weight will take place at the scale house or after removal

from premises as a result of this estimate for foreign attachments and debris.  Some removals

may contain less than 30% debris.  However, the buyer must factor the presence of these

foreign attachments and debris into his/her bid price for the line item.  The government is

advising buyers to expect up to 30% of the removal weight to be foreign attachments and

debris for consideration in formulating their bids.

Q2 ‐ How will the Government determine the percentage for each load? What will be the

Governments' method for determining the percentage and that it is within the range

identified in the IFB?

DLA DISPOSITION SERVICES ANSWER:  See answer to Q1, above.  Again, NO reductions in

weight removals will be made when the scrap is weighed or after removal to accommodate the

presence of foreign attachments or debris.  The buyer must factor the presence of these foreign

attachments and debris into his/her bid price for the line item.  Once the buyer leaves our

premises, the government will not make any adjustments to weight removed for any reason.   

   
Q3 ‐ How will the Government verify this percentage prior to the sales contractor arriving to

remove the load?  How will the SCO adjudicate any dispute related to the percentage prior to

removal?  

DLA DISPOSITION SERVICES ANSWER:  See answers to Q1 and Q2, above.  There is no

requirement for the government to verify the percentage prior to the buyer performing the

removal.  Buyers are cautioned up front, before they place their bid, that every removal may

contain up to 30% debris.  The Government has no intent of measuring the foreign attachment

and debris contained in each scrap removals.  If the buyer believes that a particular load

contains more than 30%, they should bring that to the attention of the locally designated

representative before removal so it can be resolved at that time.  No reductions in weight

removals will be made when the scrap is weighed or after removal to accommodate the

presence of foreign attachments or debris.  After the buyer removes the property, if they

believe the property was mis‐described, the buyer reserves the right to immediately notify the

SCO and present a request for claim.  The buyer bears the burden of demonstrating and proving

that the property contained in the removal was mis‐described.   

Q4 ‐ Based on the minimum/maximum estimates for item #1 for example the 30% percent

equates to 3000 pounds of the minimum estimated 10,000 pounds and 45,000,000 pounds of

the maximum estimated 150,000,000 pounds. Since this is a competitive bid, how does the

Government expect our company and other bidders to use this information when preparing a

bid?  Is it the Governments' intent by providing this information that our company that we

should submit higher bid price to make up for non‐valuable foreign objects? Would this not

create a situation where there is more question and increased pricing and performance risk.  

Does the Government expect our company to pay the same unit price for dirt, plastic, etc.  as

we would for the actual commodity with no ability to recover these monies other than by

filing a request for equitable adjustment after each load is removed?        

DLA DISPOSITION SERVICES ANSWER:  DLA DS expects prospective bidders to consider all the

factors outlined in the IFB and impact to their own operations when preparing their bids.  DLA

DS does not serve in an advisory capacity for directing how companies use the information to

calculate their bids.  All buyers are provided with the same IFB information so it is a level

playing field and each company must determine for themselves how to apply the information

contained in the IFB to their company practices in formulating their bid.  If a company

determines the contract terms as written are not profitable for them, they should not bid on it.  

If a company that is awarded the contract finds it is not profitable or beneficial to their

company, they may terminate the contract in accordance with the "PF" term in the IFB. With

regard to whether the expectation is for the company to “...pay the same unit price for dirt,

plastic, etc., as we would for the actual commodity with no ability to recover these monies...”,

please refer to answers in Q1‐Q3 for information on debris estimate.  The government expects

prospective buyers to consider and factor the presence of these foreign attachments and debris

into his/her bid price for the line item.     
Q5 ‐ How will the Government determine the correct firm is awarded the contract since

bidding can be skewed due to the high percentage of materials anticipated other than the

commodity identified by the item description?   

DLA DISPOSITION SERVICES ANSWER:  Contract awards are based on the highest responsive and

responsible bid(s).  All potential bidders have been made aware of the expected performance,

terms and conditions, and requirements of the contract through the IFB.  This includes

providing information as to the government’s estimate regarding 30% debris level.  The

government is advising buyers to expect up to 30% of the removal weight to be foreign

attachments and debris.  The buyer must factor the presence of foreign attachments and debris

into his/her bid price for the line item and in accordance with their own business practices.   

  

Q6 ‐ If this remains in the IFB, how will our company of any sales contractor challenge the

percentage of foreign attachments and other debris since the IFB states there will be no

changes after removal?  

DLA DISPOSITION SERVICES ANSWER:  The IFB is in final format.  If a company that is awarded

the contract finds it is not profitable or beneficial to their company, they may terminate the

contract in accordance with the "PF" term in the IFB.  Buyers are cautioned, up front before

they place their bids, that the scrap removal may contain up to 30% debris. The government

acknowledges that there may be unique circumstances that occasional occur during a removal

that cause the amount of debris to exceed 30%.  These circumstances will be rare and cannot

be factored into the IFB.  Should this situation occur during performance of the contract, the

buyer is responsible for coordinating with the appointed government representative on the

ground to reach an agreed upon solution to resolve the matter before the scrap is removed

from the premises.  These instances and their resolution will be documented by the

government representative and sent to the SCO.  Should repeated disagreements occur that

make the contract administratively burdensome or create problems that impact mission and

operations of the field office, the government may take further action up to and including

termination of the contract in accordance with article “PF” of the IFB.     

Q7 ‐ From a fair and equitable viewpoint, do you believe it is reasonable or proper to ask any

company bidding on this IFB to price an item higher and potentially lose the bid to offset the

Government's inability to accurately manage its inventory?   

DLA DISPOSITION SERVICES ANSWER:  It is a fair and equitable process to provide all

prospective bidders with the same information for consideration in determining their bid

prices.  The 30% debris estimation is not a result of the government’s inability to accurately

manage its inventory; it is a result of the operating conditions on the ground and the nature of

the scrap business.   The material content of scrap piles changes from day‐to‐day based on

what is received and removed for disposal.  It is impossible to predict or calculate with 100%

certainty the exact percent of foreign attachments and other debris that is in each truckload

removed.   
MULTIPLE AWARDS

Q1 ‐ Other than to ensure minimums are met for each sales contractor,  under what

circumstances will the Sales Contracting Officer acting in the "best" interest of the United

States Government sale property for less than available through a contract awarded to a

responsive, responsible company which submitted a higher purchase price?   

DLA DISPOSITION SERVICES ANSWER:  The IFB section titled “Multiple Awards” provides the

answers to this question.  The obligation with regard to projected volumes of scrap stated in

the IFB is for DLA DS to ensure the minimum is met for each sales buyer.  DLA DS recommends

all prospective bidders familiarize themselves with this section of the IFB.  As paraphrased from

this section of the IFB, the SCO retains the discretion to assign purchasers to remove based on

mission requirements. In doing so he may consider contractor performance, location,

contractor capabilities or equipment, payment status, and other factors.  The government does

not imply or in any way convey any special right to any purchaser that they will be the primary

removal company or exclusively allowed to remove throughout the term of this contract. It is

not the Government's intent, nor should firms awarded a term scrap sales contract assume,

that they will receive volumes of scrap the same as or similar to that tendered to any other

particular offeror.  No one contractor is entitled to or should expect to receive the same types

and/or volumes of scrap as any other contractor. The Government's mission requirements,

locations serviced, and operations tempo are subject to change and the primary focus of the

SCO and/or site leads when ordering scrap removal is to ensure consistent operations and that

the Government's mission is met without delay or impact. Given these mission requirements,

the SCO shall have unrestricted discretion to assign removals in any manner needed to ensure

accomplishment of the Agency's mission requirements.  The Government does not warranty or

guarantee a buyer will receive any scrap volumes more than the stated minimum in the IFB.

  
Q2 ‐ If the SCO is tasked with operating in the best interest of the United States Government,

when there has been no formal documentation of the contractor's failure in any of the areas

identified in this section, what are the specific reasons that the SCO would sale United States

Government property for less?   What are the parameters of these decisions? What process

exist in the Sales Contracting Office to ensure the decision is proper and approved?

DLA DISPOSITION SERVICES ANSWER: The IFB section titled “Multiple Awards” provides the

answers to this question.  To paraphrase from this section, the SCO retains the discretion to

assign purchasers to remove based on mission requirements. In doing so s/he may consider

contractor performance, location, contractor capabilities or equipment, payment status, and

other factors.  Submitting the highest bid price (aka highest bidder), does not convey any

special right nor does it imply that the purchaser will be the primary removal company or

exclusively allowed to remove throughout the term of this contract.  Although the bid prices of

the highest responsive and responsible buyers are the main factors in making contract awards,

meeting the operational and mission parameters of the site for removal is of the highest

priority when arranging for removal of scrap during performance of the contract.  The SCOs are

trained and warranted to execute and administer contracts on behalf of the government.  

Given these mission requirements, the SCO shall have unrestricted discretion to assign

removals in any manner needed to ensure accomplishment of the Agency's mission

requirements.   

MINIMUM/MAXIMUM AMOUNTS

Q1 ‐ FAR 16.504 Indefinite‐Quantity Contracts states that the contracting officer should

establish a reasonable maximum quantity based on market research, trends on recent

contracts for similar supplies or services, survey of potential users, or any other rational basis.  

On what basis was the maximum established?

DLA DISPOSITION SERVICES ANSWER:  FAR contract requirements related to IDIQ do not apply

to sales contracts.  The maximum cited in the IFB is set at a very high level in order to

accommodate potential surges in operational and mission needs for disposal of scrap.  To

paraphrase from IFB section titled “Minimum/Maximum Amounts”, the estimated generation

for this item is within the minimum and maximum amounts advertised. The specific amounts

are unknown as this is a sales contract for future generation of scrap. The generation for this

item will fluctuate due to dependence on operational aspects of the worldwide USG mission.

Bidders awarded a term scrap sales contract should not assume that they will receive volumes

of scrap the same as or similar to that tendered to any other particular offeror.  Bidders are

advised that removals may vary and the only quantity the USG guarantees a buyer will

receive/remove is the stated minimum.  This contract term and process has always been the

standard practice and execution for all scrap sales term contracts.  If a company determines the

contract terms as written are not profitable for them, they should not bid on it.  If a company

that is awarded the contract finds it is not profitable or beneficial to their company, they may

terminate the contract in accordance with the "PF" term in the IFB.
Q2‐ To ensure that the contract is binding, the minimum quantity must be more than a

nominal quantity, but it should not exceed the amount that the Government is fairly certain

to order. What is the basis for the small minimum which 0.000067 percent of the maximum?  

Would not a reasonable person view a minimum that is less than one percent of the

maximum as nominal?     

DLA DISPOSITION SERVICES ANSWER:  The minimum and maximum volume projections are not

a factor in determining if the contract is binding.  The contract is binding when the SCO is in

receipt of a signed bid that is responsive, responsible, determined to be a high bidder, and the

contract (DRMS Form 1427) is awarded and signed by the SCO.  As previously stated in Q1 of

this section, the specific amounts are unknown as this is a sales contract for future generation

of scrap. The generation for these items will fluctuate due to dependence on operational

aspects of the USG mission. Bidders awarded a term scrap sales contract should not assume

that they will receive volumes of scrap the same as or similar to that tendered to any other

particular offeror. Bidders are advised that removals may vary and the only quantity the USG

guarantees a buyer will receive/remove is the stated minimum.