The SeaPort process has integrated unique characteristics into the contracts. These unique features include Award Term Provisions, Guaranteed Savings, and Reverse Auctions.
Award Term Provisions
Award term provisions allow a task order to be as long in duration as the IDIQ contracts themselves, provided specific criteria, which may include prices remaining reasonable and quality being maintained, are met. The award term provisions can be issued at the task order level to allow for long term partnerships between the customer and industry.
Inclusion of award term provisions into a task order require an award term plan and an award term clause.
Each MAC holder has identified business improvement processes, innovations, and cost saving initiatives that allow them to provide high quality services at a reduced cost to the Government over time. Special Contract Requirement H-11GUARANTEED SAVINGS CLAUSE in each of the MACs, captures the potential reductions proposed by each of the MAC holders in the following areas:
- Annual Savings - For substantially identical requirements procured on a continuing basis (more than one year), each MAC holder has identified specific target reductions to the base period cost or price for the subsequent year(s) efforts. These specific target reductions are unique to each MAC holder and are identified in each specific MAC contract.
- Volume Discount - If the total value of task orders placed with the contractor in a calendar year exceeds a specified dollar value, NAVSEA will save a specific percentage of the price of all work to be performed the following year. The specified dollar value as well as the specific savings percentage is unique to each MAC holder and is identified in each specific MAC contract.
- Pass Through Costs - Pass through rates have been capped and can not exceed the percentage specified, which prevents excessive pass through costs that are not representative of the value added by the MAC prime contractor. These specific caps are unique to each MAC holder and are identified in each specific MAC contract.
The use of reverse auctioning has been focused on procurement of commodity type items and/or items where the specifications can be well defined and the standards are universally accepted. This technique can also be applied to the acquisition of services but only is appropriate when certain conditions exists. These conditions include:
- Price is the most important selection criteria and is significantly more important than any other criteria, and
- Requirements can be clearly articulated in terms of scope, schedule, and minimally acceptable quality standards.
Additional information on reverse auctions in SeaPort can be found in the Success/News portion of the web site.