COMMERCIAL SALES PRACTICE FORMAT
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1 COMMERCIAL SALES PRACTICE FORMAT Applicable to the 621 I, Professional and Allied Healthcare Staffing Services Schedule program Draft September 2013
2 Instructions for Offerors: The 621 I Price Proposal and Commercial Sales Practice (CSP) format consists of two components: 1. Staffing Fee. This includes all pricing elements not paid to the individual service worker (e.g. G&A, Profit, Insurances, etc.). This is a fixed hourly fee (not simply a percentage of direct labor) and may not vary by geographic location. 2. Employee Compensation. This includes all fees paid to the individual service worker (e.g. direct labor, fringe benefits, and payroll taxes). The 621 I pricing model allows flexibility in the manner in which this component of pricing is proposed. Offerors may elect to propose varied compensation rates based on geographic areas and/or service provider qualifications. Acceptable pricing models include (but are not limited to) state specific pricing, regional pricing, or tiered pricing. Compensation rates must be proposed in hourly increments. This attachment includes: Pages 2 and 3 of this attachment provide the proposed pricing format and additional instructions for completing the Price Proposal. Pages 4 through 10 of this attachment contain the Commercial Sales Practice (CSP) format for the 621 I program. The CSP also mirrors the 621 I pricing model, requiring separate disclosures for the employee compensation portion of pricing and overhead (staffing fee) rates. Notes: 1. Additional instructions and definitions are provided within. 2. Commercial Sales Practice (CSP) disclosures for employee compensation rates must be made based on your proposed pricing model. For example, if you propose state specific pricing you must provide disclosures for each state in which you are proposing services. 2
3 1) PROPOSED PRICING REQUIRED FORMAT Note: Pricing will be divided into two sections: Total compensation to the service worker, and associated operating expenses (referred to herein as Staffing Fee ). Price Proposal Part A - Employee Compensation (Includes Direct Labor, Taxes, Fringe Benefits, etc ) Proposed Employee Compensation rate shall be provided in an Excel spreadsheet on a computer CD in the format below (also provided for your use as an Excel spreadsheet in Exhibit 06) with submission of the proposal. The below column headings should appear consecutively in one Excel spreadsheet. SIN# Labor Category Description Experience Education Licenses / Certifications Geographical Coverage Areas SAMPLE FORMAT Commercial Most Favored Customer Price Commercial Most Frequently Billed Price Commercial Highest Billed Rate Federal Government MFC Price (if applicable) Proposed FSS Price without IFF SAMPLE FORMAT Employee compensation rate includes: All amounts paid to the individual service worker. Geographic Coverage Areas- Offerors may propose differing geographic coverage areas for each rate/labor category proposed. This could include (but is not limited to) state-by-state, regional, locality clusters, or pricing related tiers. Commercial Most Favored Customer Price The best employee compensation rate afforded to any commercial customer in the geographic coverage areas specified, regardless of terms/conditions. Commercial Most Frequently Billed Price The employee compensation rate most frequently billed to commercial customers in the geographic coverage areas specified. Commercial Highest Billed Rate The highest employee compensation rate billed to any commercial customer in the geographic coverage areas specified. Federal Government MFC Price If applicable, this represents the best employee compensation rate afforded to any Federal Government customer in the geographic coverage areas specified, regardless of terms/conditions. Proposed FSS Price without IFF The FSS employee compensation rate proposed throughout the geographic coverage areas specified. This rate must be able to be determined to be fair and reasonable through all geographic coverage areas specified. 3
4 Price Proposal Part B - Staffing Fee Charges (Includes G&A, Malpractice Insurance, Profit, etc.) Proposed FSS Staffing Fee shall be provided in an Excel spreadsheet on a computer CD SIN# Labor Category Description SAMPLE FORMAT Commercial Most Favored Customer Price Proposed FSS Price without IFF Staffing fee includes: All pricing related elements not paid to the service worker. The FSS Staffing Fee would be the same for any direct labor hour worked (regular base hour, shift differential, overtime, holiday) but would not be applied to on-call rates. The FSS Staffing Fee would be a fixed fee and not simply a percentage of the direct labor costs. Commercial Most Favored Customer Price The best net price afforded to any commercial customer for overhead/staffing fee charges, regardless of terms/conditions. Proposed FSS Price without IFF The proposed fixed hourly rate for overhead/staffing fee charges without the Industrial Funding Fee (IFF). 4
5 2) OTHER PRICING RELATED ELEMENTS Complete the tables below clearly stating your firm s Most Favored Customer (MFC) terms, as well as your firms offered terms to the government. We will only accept pricing approaches for which you can provide evidentiary support of their commerciality will be accepted. If your firm has not billed any of these concessions or does not have commercial terms in any of these areas, offerors should enter "not offered commercially" in the commercial terms column. If your firm does not wish to offer any of these concessions, offerors should enter "not offered " in the terms offered to the Government column. 1. Shift Differentials (e.g. evenings, nights, & weekends): 2. Overtime Rate(s) (and double time rate if applicable): 3. Holiday Rate(s): 4. On-Call : 5. Call Back Rate(s): 6. Payment : How often do you bill your commercial customers (weekly, bi-weekly, monthly)? 5
6 7. Credit Card Acceptance : 8. Minimum Order: Permanent placement fees are not covered under the 621 I Schedule. Therefore, offerors are encouraged to take this into consideration when establishing the proposed minimum order levels. Also, provide a description of any commercial policies/standards your firm has in regards to permanent placement fee's, lead times, and late order cancellation: 9. Workweek (standard Government workweek is Sunday Saturday): 10. Geographic Coverage Area(s): Pursuant with Evaluation, proposals that are determined to be unrealistic in terms of technical commitment, lack of technical competence and/or demonstrated experience will be rejected in whole or in part. Therefore, offerors are encouraged to propose under this solicitation those locations in which the offeror has recent corporate experience relevant to this solicitation. 11. Background Investigations: Provide a description of your firms standard background investigation(s) for employees that will be working under this contract (i.e. state-wide & national criminal investigations, sex offender investigations, etc): 12. Other: 6
7 CSP-1 Name of Offeror SIN(s) COMMERCIAL SALES PRACTICES FORMAT Note: Please refer to clause , PREPARATION OF OFFER (MULTIPLE AWARD SCHEDULE), for additional information concerning your offer. Provide the following information for each SIN (or group of SINs or SubSIN for which information is the same). (1) Provide the dollar value of sales to the general public at or based on an established catalog or market price during the previous 12-month period or the offerors last fiscal year: $. State beginning and ending of the 12 month period. Beginning Ending. In the event that a dollar value is not an appropriate measure of the sales, provide and describe your own measure of the sales of the item(s). (2) Show your total projected annual sales to the Government under this contract for the contract term, excluding options, for each SIN offered. If you currently hold a Federal Supply Schedule contract for the SIN the total projected annual sales should be based on your most recent 12 months of sales under that contract. SIN Actual Annual Sales SIN Projected Annual Sales Note: How was this estimate calculated? Based on your firm s sales to the Federal marketplace? Based on a percentage of your commercial sales? Please provide rationale in your response: 7
8 CSP Part A - Employee Compensation (Includes Direct Labor, Taxes, Fringe Benefits, etc ) (3) Based on your written discounting policies (standard commercial sales practices in the event you do not have written discounting policies), are the discounts and any concessions which you offer the Government equal to or better than your best price (discount and concessions in any combination) offered to any customer acquiring the same items regardless of quantity or terms and conditions? YES NO. (See definition of concession and discount in ) NOTE 1: If you checked no, please fill out the chart below (paragraph (4)(a) for each order (in the past 12 months) where the customer was billed lower employee compensation rates than what is currently proposed. If you checked yes, please fill out the chart below for your commercial Most Favored Customer (MFC) only. A separate disclosure is needed for each labor category and/or rate offered to the Government. NOTE 2: If you answer NO to this question, on an attachment provide an explanation of why the net prices, terms and conditions offered to the Government are not equal to or better than those offered to any commercial customer acquiring the same items. Please provide copies of your current commercial agreements or extract of your salient terms and conditions if not offering MFC pricing to the Government. (4) (a) Based on your written discounting policies (standard commercial sales practices in the event you do not have written discounting policies), provide information as requested for each SIN (or group of SINs for which the information is the same) in accordance with the instructions at Figure , which is provided in this solicitation for your convenience. The information should be provided in the chart below or in an equivalent format developed by the offeror. Rows should be added to accommodate as many customers as required. Customer Customer Location Special Item Number Labor Category Desc. Qualifications Billed Rate Date Last Billed Customer would be the name of the business entity where your company places personnel. Customer Location is the geographic location in which the placement was made. Special Item Number is the number categorizing the technical specialty of personnel placed by your company. These numbers are found on pages though of the solicitation. Labor Category Description is the employee s job title. Qualifications would include education, experience, licenses, and certifications of the individual service provider. Billed Rate is the employee compensation rate actually invoiced to the Customer listed in Column 1. Date Last Billed is the last DD/MM/YYYY in which the rate was invoiced. (b) Do any deviations from your written policies or standard commercial sales practices disclosed in the above chart ever result in better discounts (lower prices) or concessions than indicated? YES NO 8
9 NOTE: If you answer YES to this question, on an attachment provide an explanation of the circumstances under which you deviate from your written policies or standard commercial sales practices disclosed in the chart on the Commercial Sales Practices Format and explain how often they occur. Your explanation should include a discussion of situations that lead to deviations from standard practice, an explanation of how often they occur, and the controls you employ to assure the integrity of your pricing. Examples of typical deviations may include, but are not limited to, one time goodwill discounts to charity organizations or to compensate an otherwise disgruntled customer; a limited sale of obsolete or damaged goods; the sale of sample goods to a new customer; or the sales of prototype goods for testing purposes. NOTE: If deviations from your written policies or standard commercial sales practices disclosed in the chart on the Commercial Sales Practices Format are so significant and/or frequent that the Contracting Officer cannot establish whether the price(s) offered is fair and reasonable, then you may be asked to provide additional information. The Contracting Officer may ask for information to demonstrate that you have made substantial sales of the item(s) in the commercial market consistent with the information reflected on the chart on the Commercial Sales Practice Format, a description of the conditions surrounding those sales deviations, or other information that may be necessary in order for the Contracting Officer to determine whether your offered price(s) is fair and reasonable. In cases where additional information is requested, the Contracting Officer will target the request in order to limit the submission of data to that needed to establish the reasonableness of the offered price. CSP Part B - Staffing Fee Charges (Includes G&A, Malpractice Insurance, Profit, etc ) 3) Based on your pricing policies for determining an hourly staffing fee per assignment (total fully loaded labor rate MINUS amount paid to the specialist) is the proposed FSS staffing fee equal to or less than the lowest staffing fee billed to any commercial customer, regardless of the terms/conditions of the assignment? YES NO Note 1: If you checked NO, please fill out the chart below (paragraph (4)(a) for each order (in the past 12 months) where the commercial customer was billed lower employee compensation rates than what is currently proposed. If you checked YES, please fill out the chart below for your commercial Most Favored Customer (MFC) only. A separate disclosure is needed for each labor category and/or rate offered to the Government. NOTE 2: If you answer NO to this question, on an attachment provide an explanation of why the net prices, terms and conditions offered to the Government are not equal to or better than those offered to any commercial customer acquiring the same items. Please provide copies of your current commercial agreements or extract of your salient terms and conditions if not offering MFC pricing to the Government. (4) (a) Based on your written discounting policies (standard commercial sales practices in theevent you do not have written discounting policies), provide information as requested for each SIN (or group of SINs for which the information is the same) in accordance with the instructions at Figure , which is provided in this solicitation for your convenience. The information should be provided in the chart below or in an equivalent format developed by the offeror. Rows should be added to accommodate as many customers as required. 9
10 Customer Customer Location Labor Category Direct Labor Staffing Fee Total Task Order Rate Effective Date Completion Date Customer would be the name of the Government or Commercial entity where your company placed personnel. Customer Location is the geographic location in which the personnel placement was made. Labor Category is the employee job title. Direct Labor is the portion of the total fully loaded labor rate paid directly to personnel staffed by your company at the location identified by the Task Order Number. Staffing Fee would be the G&A, Malpractice Insurance, and Profit portion of the total invoice not paid directly to personnel staffed at the location identified by the Task Order Number. Total Task Order Rate is the actual charge invoiced to the Customer listed in Column 1. Effective Date is the DD/MM/YYYY in which the actual charges for services were invoiced. Completion Date is the last DD/MM/YYYY in which the assignment was completed. (b) Do deviations from your standard pricing policies as disclosed in the chart above ever result in lower staffing fees than indicated? (If no, provide written explanation.) YES NO NOTE: If you answer YES to this question, on an attachment provide an explanation of the circumstances under which you deviate from your written policies or standard commercial sales practices disclosed in the chart on the Commercial Sales Practices Format and explain how often they occur. Your explanation should include a discussion of situations that lead to deviations from standard practice, an explanation of how often they occur, and the controls you employ to assure the integrity of your pricing. Examples of typical deviations may include, but are not limited to, one time goodwill discounts to charity organizations or to compensate an otherwise disgruntled customer; a limited sale of obsolete or damaged goods; the sale of sample goods to a new customer; or the sales of prototype goods for testing purposes. NOTE: If deviations from your written policies or standard commercial sales practices disclosed in the chart on the Commercial Sales Practices Format are so significant and/or frequent that the Contracting Officer cannot establish whether the price(s) offered is fair and reasonable, then you may be asked to provide additional information. The Contracting Officer may ask for information to demonstrate that you have made substantial sales of the item(s) in the commercial market consistent with the information reflected on the chart on the Commercial Sales Practice Format, a description of the conditions surrounding those sales deviations, or other information that may be necessary in order for the Contracting Officer to determine whether your offered price(s) is fair and reasonable. In cases where additional information is requested, the Contracting Officer will target the request in order to limit the submission of data to that needed to establish the reasonableness of the offered price. 10
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