Office of the Secretary of Defense, Pentagon Renovation Management Office, 100 Boundary Channel Drive, Arlington, VA 22202

R -- PENTAGON RENOVATION OWNER CONTROLLED INSURANCE PROGRAM BROKER SERVICES SOL MDA947-99-R-0032 DUE 102999 POC Diana Hoag, (703) 693-7650 or Mike Sullivan (703) 693-7652 WEB: Click here for more information about the PenRen OCIP., http://www.dtic.mil./pentagon_renovation/ongoing.htm. E-MAIL: Click here to contact the project manager via e-mail., sullivanm@army.pentagon.mil. This is request for proposal MDA947-99-R-0032, a combined synopsis/solicitation for commercial items prepared in accordance with the format in FAR Subpart 12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; proposals are being requested and a written solicitation will not be issued. Solicitation documents and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 97-12. Please refer to the ADDITIONAL INFORMATION regarding the PENREN OCIP, including the Statement of Objectives for this acquisition, at http://www.dtic.mil./pentagon_renovation/ongoing.htm. This acquisition is to obtain the services of a broker that will design, market, and administer the PENREN OCIP to achieve the Statement of Objectives referenced above for a base contract period of three years, with six two-year options thereafter. CONTRACT REQUIREMENTS. 1. Background. The OCIP will apply to renovation work to be performed on the remaining portions of the Pentagon Renovation Project (the Project). The OCIP will take the form of a rolling wrap-up and apply to new contracts as they are awarded. Project completion is anticipated in FY 2013 (for projected awards see ADDITIONAL INFORMATION reference above). 2. Broker Services. The broker will assist PENREN in designing the OCIP that best meets PENREN's needs. Considerations include determining the optimum type(s) and amount(s) of insurance necessary to renovate the Pentagon in a prudent and efficient manner, while maximizing overall PENREN insurance cost savings. OCIP broker/administrator services will include marketing/placing the coverage, program administration, claims management, loss control, and safety. 3. Safety Program. In view of the extensive existing PENREN safety program, OCIP broker safety services will be subordinate to, coordinated with, and supplemental to the existing safety program and personnel. The broker will review the entire PENREN safety program and make appropriate written recommendations for potential safety program improvements. 4. Required OCIP Coverage. As a Governmental entity, PENREN will self-insure its own risks. The Broker will explore providing the following coverages for contractors and subcontractors, which will be the named insureds: a) Commercial general liability insurance with a limit to coincide with the excess attachment point. b) Excess umbrella liability insurance to a limit of at least $25 million. c) Workers compensation with statutory limits and employers liability insurance with a limit to coincide with the excess attachment point. d) Builder's Risk/installation floater insurance for the replacement value of the renovation work. (PENREN will continue to self insure the value of the existing structure). e) Asbestos Liability Insurance. This coverage will be provided for contractors involved in asbestos abatement or remediation work. This insurance will cover the remediation, encapsulation and/or removal of asbestos materials. Such insurance, if provided on a claims made basis, shall remain in force throughout the period work is performed under the Contract and for a period of at least five (5) years thereafter. The limit of insurance on this policy shall be at least $10,000,000. The selected broker will also attempt to negotiate the inclusion of an appropriate level of contingent pollution coverage in the OCIP coverage, if cost effective. The minimum coverages cited in paragraphs (b) and (e) above are suggestions only and the selected broker is free to propose alternative minimums. Nothing in this solicitation or any contract resulting therefrom shall obligate the Government to procure any insurance using the broker's services described herein. The Government reserves the right to obtain insurance from the general contractor in future construction and environmental remediation contracts and may elect, in its sole discretion, to procure all, a portion, or none of the insurance required for the renovation of the Pentagon through the OCIP. 5. OCIPPayments. PENREN will reimburse the broker for the cost of the premiums for the insurance provided in the OCIP. PENREN shall receive and pay, as the case may be, all adjustments in such costs, whether by way of dividends or otherwise. Contractors shall execute such instruments of assignment as may be necessary to permit PENREN's receipt of such adjustments and shall cause all Subcontractors covered by such insurance to do the same. 6. Studies. The Government may direct the broker to conduct feasibility studies as outlined in the ADDITIONAL INFORMATION reference cited above. PROPOSAL INSTRUCTIONS AND EVALUATION CRITERIA: OFFERORS SHALL NOT FORMALLY CONTACT OR RESERVE ANY INSURER, REINSURER, SURPLUS LINES BROKER OR OTHER INSURANCE COMPANY OR INTERMEDIARY FOR MATTERS RELATED TO THIS ACQUISITION PRIOR TO THE AWARD OF THE BROKER CONTRACT. Such activity may be considered unfavorably in the evaluation and selection of the broker. The provisions at FAR 52.212-1, Instructions to Offerors Commercial, and FAR 52.212-2,Evaluation of Commercial Items, apply to this acquisition, as modified below. This is a best-value source selection. Award will be made to the offeror presenting the best overall value to the Government, price and other factors considered. The specific evaluation criteria to be included in paragraph (a) of FAR 52.212-2 are listed in descending order of importance as Past Performance, Technical Approach, Management Approach and Cost. Cost/price, while a substantial factor, is significantly less important than past performance, technical approach, and management approach combined. Offerors determined to be in the competitive range will be afforded the opportunity to make oral presentations to supplement their technical and management approaches. Specific oral presentation guidance will be provided as required. While cost will not be rated, it will be a substantial consideration in the award decision. The Government reserves the right to award to other than the lowest price offeror after consideration of all factors. Four volumes are required in each proposal. Volume I, Past Performance Volume (not to exceed 10 pages). Offerors shall provide a list of all OCIPs they have managed within the last five years. Within this list, identify the five most recent, relevant projects similar in scope and complexity to the proposed Pentagon OCIP. We intend to obtain customer feedback on the quality of the offeror's performance for these projects. Offerors may consider relevance as OCIPs estimated to be $200M or more with multiple contracts under a single project or a rolling OCIP and recency to be within the last five years. Briefly describe each project to include period of performance and value of the OCIP, and include an owner point of contact name, address and phone number (since we will be contacting the five referenced projects, please verify the owner points of contact prior to submittal). Past Performance will be evaluated based on the Government's confidence in the offeror successfully performing this effort based on demonstrated recent, relevant performance. Volume II, Technical Volume (not to exceed 30 pages, including the 10 page Statement of Work). The technical description discussed in 52.212-1(b)(4) will consist of an Integrated Master Plan and Schedule, and a Statement of Work, both to be prepared by offerors. The offeror's Integrated Master Plan and Schedule must describe the design and implementation of its proposed OCIP through the base contract period of three years. The IMP/IMS should clearly demonstrate the offeror's approach to satisfy the PENREN OCIP Requirements and Statement of Objectives. The IMP will document the tasks/events required to deliver a high quality OCIP and facilitate success. It will identify milestones that must be satisfied to accomplish the program. The IMS will identify the calendar dates and durations associated with the IMP tasks, including their interdependencies. The IMP will be included and enforced in the resulting contract, and performance of the winning offeror will be in accordance with its IMP. The IMP/IMS will be event and task oriented the what and when of the approach. Statement of Work: Offerors will also submit with their proposals a Statement of Work (SOW) describing in narrative form how they will approach each of their tasks to satisfy the requirements of the program and achieve the Statement of Objectives. The SOW will be included in the resulting contract. The SOW will be process oriented, but will also identify deliverables associated with the processes performed the how of the approach. Technical approach will be evaluated equally on the offeror's proposed approach and Government's confidence in the offeror achieving their proposed approach based on the following two subfactors, each of which is equal in importance: (1) Affordability, on the offeror providing a comprehensive plan and realistic schedule, to include innovative marketing techniques, understanding the Pentagon Renovation OCIP requirements, balancing of risk and cost, and on-going cost reduction initiatives that demonstrates their approach to maximizing the Government's cost savings with an OCIP; (2) OCIP Administration, on the offeror's proposed approach for successful implementation and administration of an OCIP to include day-to-day performance and their approach to data management. Volume III, Management Volume (not to exceed 15 pages) to include the proposed on-site team, duties and responsibilities, lines of authority and communications, organizational structure, corporate structure and subcontracting plan as required by FAR Part 19. Management approach will be evaluated equally on the offeror's proposed approach and the Government's confidence in the offeror achieving their proposed approach based on the following two subfactors, which are in descending order of importance: (1) Management Approach, on the offeror proposing a sound staffing and management approach to include on-site staffing, corporate resources as required, and a process to ensure clear lines of communication and coordination with the Government and other Pentagon Renovation contractors to minimize disruption to the program; and (2) Subcontracting Plan, on compliance with FAR Part 19 and their proposed efforts to achieve a required 30% subcontracting goal for small, small-disadvantaged and woman-owned small businesses (if a subcontracting plan is not required due to business size, this factor will consist only of subfactor (1) above). Volume IV, Contractual/Price volume (not to exceed 10 pages, exclusive of reps and certs). This contract will be a firm-fixed price contract. The broker agrees, with the intent of being legally bound, that it will neither solicit nor accept any commissions, fees, or other compensation, directly or indirectly, from any insurance underwriter, or representative of an underwriter, in connection with the PENREN OCIP. Proposed fee arrangements which amount to a Cost Plus Percentage of Cost arrangement will not be acceptable. An additional award fee of up to 10% of the total price of the broker services can also be earned by the broker (see http://www.dtic.mil./pentagon_renovation/Directives.htm (PMD 99-08) for award fee guidance). Cost will be evaluated based on realism, reasonableness and completeness for the base period and all options. This volume will include the executed certifications and representations required in FAR 52.212-3 and DFARS 252.212-7000, and the proposed pricing information as follows: provide cost and profit figures for services to be provided in the first 3 years; services to be provided in each of the successive six two-year options; completion of each of the studies referenced in #6 above and in the ADDITIONAL INFORMATION reference cited above, including delivery of a final report documenting findings. Past Performance Volume I copies are due to the Contracting Officer no later than 3:00 p.m. ET, 15 Oct 99. All other volumes are due to the Contracting Officer no later than 3:00 p.m. ET, 29 Oct 99. Submit 5 copies of each volume, plus the signed original to Diana Hoag, Pentagon Renovation Program Office, 100 Boundary Channel Drive, Arlington Virginia 22202. Direct questions to Diana Hoag at (703) 693-7650 or Mike Sullivan at (703) 693-7652. OTHER INFO: text of all clauses and provisions referenced herein may be downloaded from the following web site: http://farsite.hill.af.mil/VFFARa.htm. Offerors must include a completed copy of the provisions at 52.212-3, Offeror Representations and Certifications Commercial Items and DFARS 252.212-7000, Offeror Representations and Certifications Commercial Items, with their offers in Volume IV. The following clauses apply to this acquisition: 1) FAR 52.212-4, Contract Terms and Conditions Commercial Items; 2) FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders Commercial Items and the following additional FAR clauses cited therein -- 52.203-6, Alt I Restrictions on Subcontractor Sales to the Government; 52.219-8, Utilization of Small Business Concerns; 52.219-9, Small Business Subcontracting Plan; 52.222-36, Affirmative Action for Workers with Disabilities; 52.222-26, Equal Opportunity; 52.222-21, Prohibition of Segregated Facilities; 52.222-35, Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era; 52.222-37, Employment Reports on Disabled Veterans and Veterans of the Vietnam Era; 3) DFARS 252.212-7001, and the following additional DFARS clauses cited therein 252.205-7000, Provision of Information to Cooperative Agreement Holders; 252.219-7003, Small Business and Small Disadvantaged Business Subcontracting Plan (DoD Contracts); 252.243-7002, Certification of Requests for Equitable Adjustment; and 252.247-7024, Notification of Transportation of Supplies. See http://www.dtic.mil./pentagon_renovation/ongoing.htm for information regarding the OCIP pre-proposal conference on 6 Oct 99 at 1:00 p.m. ET. Posted 09/28/99 (W-SN385671). (0271)

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