Okaloosa County BOCC — December 18, 2012 — reading text

for inflation based upon the same annual rate of change in the Consumer Price Index for All Urban Consumers (CPI-U) or other index agreed to by OCWS and the Government during contract negotiations. OCWS proposes an annual inflation adjustment that will occur at the beginning of each Contract Year. If, however, this type of adjustment is inconsistent with federal procurement laws or the Government’s policy as they relate to this procurement, OCWS is willing to negotiate a method for implementing an inflation adjustment at the beginning of each price re- determination period. Furthermore, the Fixed Monthly Charge shall increase to cover OCWS’s costs (no profit) related to the occurrence of Uncontrollable Circumstances as defined in Attachment 1 – Definition of Terms to this Volume III. Of particular benefit to the Government is that OCWS is a non-profit governmental authority and as such the Uncontrollable Circumstance adjustments will be straightforward and less costly to resolve as compared to private for-profit Respondents. Furthermore, OCWS’s public bidding laws ensure that actual costs of such events to OCWS will be competitively bid and known to the Government. Eglin Air Force Base Packet Pg. 173  8.2.b.a Volume III Contract Documentation Page 15 RFP Document Paragraph/ Requirement/ Rationale Page Portion Without limiting the general terms and conditions of FAR Attachment: Volume III Contract Documetation-01292013 (1332 : Eglin AFB Utilities Privatization (UP) Proposal) 52.216-5, it is understood and agreed that specific causes for price re-determination may include pre-existing and future environmental conditions encountered by OCWS which were not caused by OCWS (and for which the Government will hold OCWS harmless of and from liability under CERCLA, RCRA, and other Applicable Laws). OCWS’s Fixed Monthly Charge includes the costs of repair and replacement costs, provided, however, that for underground pipe OCWS’s Fixed Monthly Charge for major repairs and replacements, excluding routine maintenance costs, shall be limited to the first $30,000 in any Contract Year. After OCWS has had the opportunity to conduct detailed condition inspections of the system assets after the initial price re-determination period, OCWS will entertain increasing or eliminating this limit upon mutual agreement of an equitable change in the Fixed Monthly Change. This provision benefits the Government by minimizing the initial Fixed Monthly Charge, i.e., no risk premium associated with the unknown condition of the buried pipes is included in this charge. The Fixed Monthly Charge does include the cost of repairs and replacements of above-ground equipment and structures. Eglin Air Force Base Packet Pg. 174  8.2.b.a Volume III Contract Documentation Page 16 RFP Document Paragraph/ Requirement/ Rationale Page Portion Termination FAR Payment of a termination fee to If the Service Contract is 52.249-2. OCWS if the Government terminated for any reason other Attachment: Volume III Contract Documetation-01292013 (1332 : Eglin AFB Utilities Privatization (UP) Proposal) terminates the Service Contract than a default by OCWS or the for Convenience. expiration of the full term of the Service Contract, then the final termination settlement paid by the Government to OCWS shall include, but not be limited to, an amount sufficient to cover all of OCWS’s demobilization costs, including any mothballing of System assets; and a payment sufficient to decease any bonds or other debt issued by OCWS to finance capital improvements of the System. This provision will allow the Government to terminate the Service Contract for its convenience while protecting OCWS from any financial losses. This will also provide required security to bondholders for any debt issued to OCWS to finance any capital projects. OCWS is not seeking any payment for “lost profits” or “opportunity costs” that are likely to be included in any settlement with a private firm as defined in FAR 52.249-2. Since the Government will only pay the actual costs incurred by OCWS, the final termination settlement cost to the Government should be less than the one required by any private firm. Eglin Air Force Base Packet Pg. 175  8.2.b.a Volume III Contract Documentation Page 17 RFP Document Paragraph/ Requirement/ Rationale Page Portion Hazardous Section H.9, Add following to Section H.9: OCWS shall be