SUMMARY The United States Office of Personnel Management (OPM) intends to establish a sole source requirements contract for five years (base year and four option years) to the Center for International and Interarea Comparisons (CIIC) for expert economic consultant services in support of the COLA program in conjunction with our implementation of technical changes made pursuant to the stipulation for settlement in Caraballo et al. v. United States, Civil No. 197/27 (D.V.I.) in accordance with 41 U.S.C. 253(c)(1); FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements SECTION A: SUPPLIES OR SERVICES AND PRICES/COSTS The contractor shall be required to furnish the following personnel to support the effort described herein and in subsequent task orders issued under this contract: 1. INITIAL (BASE) PERIOD: For the period ending twelve (12) months after the date of the contract: Title Estimated Hours Fixed Rate* Economic Consultant 400 $________ 2. OPTION YEARS The Government, under this contract, may exercise up to four options for additional periods of services. Each option shall cover a period of no more than twelve months of additional services, but the Government reserves the right to extend the contract for a period of less than 12 months. The following rates apply to the option periods: Option Year 1 Title Estimated Hours Fixed Rate* Economic Consultant 400 $________ Option Year 2 Title Estimated Hours Fixed Rate* Economic Consultant 400 $________ Option Year 3 Title Estimated Hours Fixed Rate* Economic Consultant 400 $________ Option Year 4 Title Estimated Hours Fixed Rate* Economic Consultant 400 $________ Total for Option years $ __________ *Includes all indirect costs. 3. TRAVEL All travel shall be authorized in advance and indicated in the task order. The Government will not reimburse the Contractor at the hourly rates while the contractor is in a travel status. Travel expenses must not exceed the approved Government rates. Costs shall be reimbursed in accordance with Federal Travel Regulations as prescribed by the General Services Administration. SECTION B DESCRIPTION/SPECIFICATION/WORK STATEMENT 2. BACKGROUND. The OPM establishes COLAs pursuant to section 5941 of title 5, United States Code; Executive Order 10000, as amended; and subpart B of part 591, title 5, Code of Federal Regulations. Within OPM, the Salary and Wage Systems Group, Center for Pay and Performance Policy, Strategic Human Resources Policy Division, administers the COLA program. The Government pays COLAs to most white-collar civilian Federal and U.S. Postal Service employees in Alaska, Hawaii, Guam and the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. COLAs are based on living costs in these areas compared with living costs in the Washington, DC area. We conduct price surveys in the COLA areas and in the DC area to estimate the differences in living costs. In 2000, the Government agreed to a stipulation for settlement in Caraballo v. United States, No. 1997-0027 (D.V.I.), August 17, 2000. The settlement established the Survey Implementation Committee (SIC) and Technical Advisory Committee (TAC). The SIC is composed of plaintiffs’ representatives and OPM representatives. The TAC is a committee of three economists—one selected by the plaintiffs, one selected by OPM, and a neutral chair selected by both parties. The TAC advises the SIC on issues relating to the implementation of changes to the COLA methodology that we are implementing pursuant to the settlement agreement. The TAC is the successor to the Technical Advisory Group (TAG), an identical committee established in 1996 to advise the parties as they worked collaboratively to reach a settlement on long-contested COLA issues. 3. GENERAL SCOPE OF REQUIREMENT We need an expert economic and statistical consultant to serve as our representative on the TAC and to provide technical advice and assistance to us. Because the COLA program has high visibility and a history of litigation, all work to be performed under this contract must be complete, technically accurate, and able to withstand legal challenge and close public scrutiny. The consultant shall be our representative on the TAC, shall attend all meetings and telecons, and shall be responsible for all work performed under this contract. With our approval, the consultant may hire or subcontract with other personnel to perform support work, but only to the extent that such support work does not jeopardize the quality, thoroughness, and professionalism of the overall work performed. The consultant shall confer with OPM before hiring or subcontracting for support work. These costs may be negotiated as part of priced task orders. When the consultant cannot attend or participate because of an emergency, serious illness, or similar unforeseen circumstances, the consultant may, with our advance approval, designate an alternate to represent him or her at TAC meetings, in telecons, or at other meetings. However, we expect the consultant to attend all meetings and telecons except in extenuating circumstances. The hourly rate for substitute consultant(s) is subject to negotiation and shall not exceed the rate established for the primary consultant established herein. During this contract, the consultant shall attend, provide informational presentations at, and materially participate in all TAC meetings; represent fully our concerns; and provide us with oral or written reports of the meetings and the issues discussed. The consultant may also be asked to provide separately to our technical economic and econometric advice and expertise on living-cost theory and practice and may be requested to perform specific research on selected living-cost issues as they relate to the COLA program. The consultant shall agree further to serve, if necessary, as an expert witness for us in administrative, congressional, or judicial proceedings to be paid for under a separate purchase order or contract, not as part of this contract. We anticipate that the consultant will perform more of the work required under this contract in the base rather than in the option years because the TAC will be extensively involved in developing hedonic regressions to determine relative rental prices and in reviewing the results of the General Population Rental Equivalence Survey (GPRES), which we are currently conducting. 4. REQUIREMENTS OVERVIEW We will specify the work that the consultant is to perform in a task order proposal request. The contractor’s technical and price proposals are subject to evaluation and negotiation, if necessary. Task orders may be firm, fixed-price or labor hour at the option of OPM. The work to be performed will be negotiated prior to the award of the task. As part of these negotiations, the consultant shall deliver to us a technical and cost proposal that sets forth the level of effort, reports, and deliverables associated with any request for research. 4.1. Represent OPM on Technical Advisory Committee (TAC). The consultant shall represent us on the TAC. He or she shall attend all TAC meetings, participate in all TAC telephone conferences, and provide us with an oral (or electronic mail, if necessary) summary of each within 2 working days. As requested, the contractor shall provide an acceptable written summary of each within five working days. As directed by us, the consultant shall also participate in SIC meetings and telephone conference calls (telecons). We are not able to specify how many hours of work will be required to prepare for, attend, and follow-up on the TAC meetings. We anticipate that during fiscal year 2005, the consultant will attend joint meetings of the SIC, TAC, and Pacific COLA Advisory Committees, which we established to advise us in planning and conducting the Pacific surveys and reviewing the results. We also anticipate that the consultant will attend a joint SIC/TAC meeting in May 2005 relating to GPRES and in October 2005 relating to anticipated comments concerning COLA rate adjustments. The SIC and the TAC dissolve on December 31, 2005. Thereafter, the consultant will provide services directly to OPM on an as-requested basis. 4.2. Provide Technical Economic Research, Advice, and Assistance to OPM As OPM requests, the consultant shall advise the Government regarding the various issues relating to living-cost comparisons and COLA surveys. OPM may ask the consultant to research specific issues; summarize, explain, or evaluate economic literature; and/or provide OPM with bibliographies on living-cost research and analyses. The work to be performed must be complete, technically accurate, and be able to withstand legal challenge and close public and professional scrutiny. 4.3. Serve as an Expert Witness for the Government. At OPM’s request, the consultant shall serve as an expert witness for the Government in any administrative, congressional, or judicial proceedings concerning any work performed under this contract. 5. DELIVERABLES All deliverables will be subject to review and approval in accordance with the Performance Requirements Summary, section 9 below. If we ask for clarifications, the consultant will have 10 working days from the date of our notice to provide such clarification. 5.1. TAC Meetings and Telecon Reports. The consultant shall provide us with an oral (or electronic mail, if necessary) report of each TAC meeting and telecon within two working days after the meeting or telecon and, if requested, a written report within five working days after the meeting or telecon. Each report must address key topics discussed, summarize the decisions/ recommendations reached; and highlight areas of agreement and disagreement. The length of any written reports will depend on the length of the meeting or telecon and the number and complexity of the issues discussed. 5.2. Bibliographies, Abstracts, and Copies of Relevant Materials. As we request, the consultant shall compile and provide to OPM’s bibliographies of research of living-cost issues and when requested shall also provide abstracts and copies of relevant materials. The contractor may need to write summaries where sufficient detail is not already available about the research. The abstracts or summaries must be of sufficient length to identify and explain all major issues and findings of the material being reviewed. The contractor may also be required to explain verbally or in writing the conclusions reached in the research and the interrelationships among research efforts and the implications for the COLA program. Copies of off-the-shelf materials may be either originals or photocopies, provided there is no infringement of copyrights. 5.3. Research Reports. If we request research, the consultant shall conduct it based on sound, professionally accepted economic principles and shall produce accurate, fully-researched, and well-documented reports. The content and length of these reports will depend on the subject to be researched. If and when a research request is made, OPM and the consultant will determine the parameters for the research and report(s) and will negotiate its price. 6. PLACE OF PERFORMANCE OPM anticipates that the consultant will perform the majority of the work at his/her own facility. As noted earlier, the consultant will also perform work at the site(s) where the SIC and/or TAC meet. On occasion, at OPM’s request, the consultant will perform work at OPM’s Central Office at 1900 E St., NW, Washington, DC. 7. GOVERNMENT-FURNISHED PROPERTY The Government shall not provide any property under this contract. 8. GOVERNMENT-FURNISHED INFORMATION OPM shall provide the consultant with copies of rental survey data and GPRES data. All such data are the property of the Federal Government. The consultant shall not use the data for purposes other than analyses performed under this contract, and the contractor shall destroy or return to OPM, at OPM’s sole prerogative, all such data. We shall also provide the contractor with the results of our annual COLA surveys. 9. ACCEPTABLE QUALITY LEVEL Deliverable Performance Standard Acceptable Quality Level (AQL) Monitoring Method Incentive / Price Reduction 1. TAC Meetings and Telecon Reports Attends meetings; provides reports Meetings are attended; reports are clear and concise OPM staff often attends same meetings and will be able to verify attendance. OPM staff will review reports. Positive Performance Evaluation 2. Bibliographies, Abstracts, and Copies of Relevant Materials. Provided as requested within 2 weeks of request unless OPM and contractor agree to other deadline. Information is provided as requested by the agreed to deadline. OPM staff would be the recipient of such materials and will be able to assess completeness and timeliness. Positive Performance Evaluation 3. Research Reports Provided as requested by a deadline that the contractor and OPM agree upon. Reports are provided as requested in a timely manner and are clear and concise. OPM staff would be the recipient of such reports and will be able to assess suitability, completeness, and timeliness. Positive Performance Evaluation Dr. Alan Heston, President of CIIC, has served as our representative on the TAC since 2000, and served as our representative on the Technical Advisory Group (TAG) from 1996 to present. The TAG was a committee established to advise the parties as they planned and reviewed living-cost research and worked to reach a settlement. He has a detailed understanding of the COLA methodology, the Caraballo settlement, and the voluminous research that the parties conducted prior to that settlement, and the discussions between the parties that lead to the settlement. Only the CIIC has the knowledge, experience, expertise, and background necessary to represent us on the TAC and to provide the expert consultant services that we require. If CIIC were not selected for this contract, it would take another vendor over a year to become expert in the COLA program, the Caraballo settlement, and research and discussions that lead to the Caraballo settlement. In addition, the vendor would need extensive briefings from our staff and other members of the TAC to understand the research and discussions and to place in context the settlement and the current methodology. Such briefings would be very costly to us and ourstaff does not have time for such briefings. We cannot compel or reimburse other TAC members for providing such briefings in its stead. Under the Caraballo settlement, it is critical that we have a representative on the TAC. We risk additional litigation if it fails to appoint a knowledgeable and expert representative to the TAC and/or implements the COLA methodology without benefit of economic expertise. Such litigation could cost the Government millions of dollars. At a cost of $232.5 million, Caraballo was a landmark settlement and one of the largest Federal Government human resources settlements of all time. Interested parties are reminded that information furnished under this solicitation may be subject to disclosure under the Freedom of Information Act (FOIA). Therefore, items that are confidential to businesses, or contain trade secrets, proprietary, or personnel information must be clearly marked. Marking of items will not necessarily preclude disclosure when the U.S. Office of Personnel Management (OPM or the Government) determines disclosure when warranted by FOIA. However, if such items are not marked, all information contained within the submitted documents will be deemed to be releasable. This in no way obligates the Government to award a sole-source requirements contract. This is not a request for competitive proposals. However, all interested parties who believe they can meet this requirement are invited to submit a statement of capability with pricing information, within 15 days of publication of this notice. The Government will not pay for any information provided. Information received as a result of this notice will be considered solely for the purpose of determining whether to conduct a competitive requirement. Interested parties are requested to contact Toni Campbell at
[email protected] or by fax 202 606-1464