Guaranteed Savings
We anticipate that MAC contracts will be used primarily for the acquisition of repetitive, high-dollar value professional support services. Therefore, all MAC holders were requested to identify business improvement processes, innovations, and cost saving initiatives that would allow them to provide high quality services at a reduced cost to the Government over time as part of the selection process. Special Contract Requirement H-11 GUARANTEED 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.
  • VOLUME DISCOUNT - Each contractor has guaranteed that if the total value of task orders placed with the contractor in a calendar year exceeds a specified dollar value (dollar value is unique to each MAC and is as specified in the MAC), NAVSEA will save a specific percentage of the price of all work to be performed the following year.
  • PASS THROUGH COSTS - Pass through rates have been capped and can not exceed the percentage specified in the clause, which prevents excessive pass through costs that are not representative of the value added by the MAC prime contractor.