Develop Offers and Tenders

The ATO shall develop an agency tender that responds to the requirements of the solicitation, including section L (Instructions, Conditions, and Notices to Offerors or Respondents) and section M (Evaluation Factors for Award). In addition to the requirements of the solicitation, the agency tender shall include the following:

1. an MEO;
2. a certified agency cost estimate developed in accordance with Attachment C
3. the MEO’s quality control plan;
4. the MEO’s phase-in plan; and
5. copies of any existing, awarded MEO subcontracts (with the private sector providers’ proprietary information redacted).

The ATO shall provide the certified agency tender in a sealed package to the CO by the solicitation closing date. If the solicitation states that prospective providers may propose alternate performance standards that differ from the solicitation’s performance standards, the ATO may propose alternate performance standards in the agency tender.

What is the MEO?

MEO stands for Most Efficient Organization and represents the staffing plan of the agency tender, developed to represent the agency’s most efficient and cost-effective organization. An MEO is required for a standard competition and may include a mix of government personnel and MEO subcontracts. The MEO is not usually a representation of the incumbent organization, but is the product of management analyses that include, but are not limited to, activity based costing, business case analysis, consolidation, functionality assessment, industrial engineering, market research, productivity assessment, reengineering, reinvention, utilization studies, and value engineering.

Other elements of the MEO include an organization chart reflecting the MEO; position descriptions classified by the HRA for positions projected to be in the MEO; a description of the organization that will execute the quality control plan; MEO equipment, supplies, material, and facilities; and specific details of MEO subcontracts.

How do we develop the agency cost estimate?

The ATO should develop and certify the agency cost estimate (the agency’s cost proposal) in accordance with Attachment C, using the COMPARE costing software.

What information should be included in the Quality Control Plan?

The ATO is responsible for the quality control plan in the agency tender, as required by the solicitation. The quality control plan shall include:

1. an MEO self-inspection plan;
2. MEO internal staffing (which shall be included in the agency cost estimate for personnel costs on SCF Line 1); and
3. procedures that the MEO will use to meet the quality, quantity, timeliness, responsiveness, customer satisfaction, and other requirements of the solicitation.

What information should be included in the Phase-in Plan?

The ATO shall include a phase-in plan in the agency tender, as required by the solicitation, to replace the incumbent service provider with the MEO, even if the agency is the incumbent service provider. The ATO shall include phase-in costs for the agency tender on SCF Lines 1-6.

How do I submit the agency tender?

The ATO shall deliver the agency tender to the CO in a sealed package by the solicitation closing date. If the ATO does not anticipate submitting the agency tender to the CO by the solicitation closing date, the ATO shall notify the CO as soon as possible before the solicitation closing date. The CO, in consultation with the CSO, shall determine if amending the solicitation closing date is in the best interest of the government.

What if there are changes necessary to the agency tender?

After the solicitation closing date, only the ATO may make changes to the agency tender, and such changes shall only be in response to the following:

1. a solicitation amendment issued in accordance with the FAR;
2. the CO’s request for final proposal revisions to offers and tenders in accordance with FAR 15.307;
3. official changes to the standard cost factors identified in Attachment C;
4. version upgrades to the COMPARE costing software issued by the Department of Defense; or
5. resolution of a contest challenging a performance decision as provided by this attachment.

The CO shall retain documentation regarding any changes to the agency tender as part of the competition file and in a form suitable for audit.

What are the rules regarding the proprietary information in agency tenders?

After resolution of a contest or the expiration of the time for filing a contest, an agency tender shall be made available to the public, upon request. If an agency tender includes any subcontracts, the agency shall not release proprietary information contained in these MEO subcontracts.

What if there is no satisfactory offer made by the public sector or public reimbursable source?

If an agency attempts to perform a standard competition, but does not receive private sector offers or public reimbursable tenders, determines that all offers and public reimbursable tenders are non-responsive, or determines that prospective providers are not responsible, the agency should take the following actions:

1. Determine Reasons. The CO will consult with private sector sources to identify (a) restrictive, vague, confusing, or misleading portions of the solicitation; (b) the reasons provided by sources for not submitting responses; and (c) possible revisions to the solicitation to enhance competition. The CO shall, in writing, describe the results of these consultations and propose a course of action to the CSO.
2. Required Action. The CSO will evaluate the CO’s written documentation and make a written determination to either (a) revise the solicitation or (b) implement the agency tender. If revising a solicitation would result in exceeding the established time limit for the standard competition, the CSO (without delegation) should consult with the Deputy Director for Management, OMB. The CO’s written documentation, as well as the CSO’s decision to either revise the solicitation or implement the agency tender, will be retained as part of the competition file. a. Revise the Solicitation. Before revising or reissuing the solicitation, the CO shall return the sealed agency tender to the ATO. The CO will then revise and reissue the solicitation. b. Implement the Agency Tender. If the CSO decides to implement the agency tender, the CO shall proceed to evaluate the agency tender as required by this attachment and the solicitation. The agency shall complete the SCF, leaving Line 7 blank, omit the costs on lines 8-12 and annotate “agency” on Line 18. The SSA shall state, in the certification on the SCF, that the CSO implemented the agency tender because (1) the agency received no offers or tenders in response to the solicitation; (2) no offers or tenders received were responsive; or (3) no prospective providers were responsible. The SSA and CO shall sign the SCF to certify the performance decision and retain the SCF and agency tender with the competition file. The agency shall make a public announcement of the performance decision (at the local level and via FedBizOpps.gov). The CO shall make the SCF (including the documentation of no satisfactory private sector source) available to the public, upon request. The CO shall notify the ATO of the performance decision and the HRA shall notify directly affected employees (and their representatives).