UNITED STATES OF AMERICA

GENERAL SERVICES ADMINISTRATION

PRE-PROPOSAL CONFERENCE

Tuesday, September 23, 1997

9:00 a.m. to 1:00 p.m.

  PRESENT:

ALLAN ZAIC, Director, Services Acquisition

Center

SUE McIVER, Deputy Director Services Acquisition

Center

REBECCA KOSES, Contracting Officer, Services

Acquisition Center

DARLENE BIKOWSKI, Contracting Officer, Services

Acquisition Center

ROSEMARIE DUNN, Contract Specialist, Services

Acquisition Center

ERIKA ALBRIGHT, Fleet Management

MARTY WAGNER, Associate Administrator,

Office of Government-wide Policy

C O N T E N T S

PAGE

Welcome, Opening Remarks, 3

Introduction - Sue McIver

Solicitation Overview - Rebecca Koses 9

Responses to Questions 53

Audience Questions 184

* * * * *

P R O C E E D I N G S

MS. McIVER: As soon as she's set up, we will start, because I know we want to have an accurate record and I'm sure you guys do, too, so as soon as that is done, we'll get started. Sorry for the delay.

WELCOME, OPENING REMARKS AND INTRODUCTION

MS. McIVER: Good morning. Sorry for the delay.

We'd like to welcome you all here. This is the pre- proposal conference for the re-compete of the travel purchase and fleet card program.

We are really excited about the process and about your participation in it. You will hear more about that a little bit later.

First of all, I'm Sue McIver and I'm Deputy Director of the Services Acquisition Center, and we have procurement responsibility for this program. With me up here today are Becky Koses and Darlena Bikowski, who are both COs on the program, and our newest addition to the team, Rosemarie Dunn, and we are all excited to have Rosemarie with the team now.

For those of you who may have slipped in a different door, I just want to remind you to please sign in. We do want to keep records as to who is here so we can make sure that we get accurate information out to everybody regarding participation in the process and in the procurement.

There also will be index cards for writing questions on and those will be available during the breaks and you may have picked some of those up on your way in.

There is also a flyer on the sign in table which has some information on our Web site address. I'm sure most of you are already familiar with the Web site that we have been maintaining with information about this procurement. That Web site -- the card that's up there has a nice little card that you can pull out and put in your Rolodex, which makes it easy to keep it at your fingertips, because we will continue to use this location to disseminate information about the program and the procurement as it moves forward and awards as they are made and then information for agencies as we go to implement the program.

There are also a limited number of copies of the solicitation. I'd imagine most of you have pulled everything down off the Web site. It is there and available there, but for those of you that have had difficulties with that, there are a limited number of copies there. If additional copies are needed, Darlena and Becky are both available to provide copies and their phone numbers are on that flyer that's out front with the Web site address on it.

Just a little bit of administrative. There are rest rooms that are out either doors and around into the hallways, both left and right. If you go out the front door and go left and left, there are rest rooms. Go out the front door and go right and then right, there are rest rooms.

Just a little bit about the structure for today. Most of our meetings that we have had in the past have really been focusing on both industry and agencies and sharing information between our customer agencies and industry. The focus today is on industry. The purpose of this meeting is to respond to questions that we have received to date and/or comments on the solicitation, and to respond to those. It is not intended to be an agency forum.

We currently are planning a separate meeting with agencies for October 15, and we will be getting information out about that by the end of this week.

Our focus at that meeting will be on working with the agencies regarding the master contract and task order process, so that they will then be prepared to move out with task orders and to take advantage of the new contracts once they are awarded.

Since we first addressed many of you here in our kick off meeting in July of 1996, we at FSS have been overwhelmed by the participation and involvement of both industry and customer agencies. I mean that in a positive sense of the word.

Yes, the fact that we have received over 1,900 comments on the draft statement of work and the solicitation has caused many long hours for our staff, but the consideration, thought and long hours that you all put in to preparing these comments I think is indicative of your commitment to work with us on this procurement.

The solicitation that was issued about two weeks ago is really the product of the partnership among industry, customer agencies and our stakeholders. I'd like to thank each of you for your efforts in this process.

Where are we now? The solicitation, as I said, was issued September 11. We are having a pre-proposal conference today. Proposals are due October 28. We expect to be evaluating proposals between October and December with oral presentations somewhere in the November time frame.

We expect to award contracts by early February and then we will have a kick off conference in late February.

The agenda for today, Becky is going to initially walk through an overview of the solicitation and then we will have several breaks. It is a fairly long document or presentation. She wants to make sure she covers all the specific details. We will have a break around 10:30 and then a break around 11:15.

As I indicated, we have cards out there that people can use to submit their questions on or we will be entertaining questions from the floor, if you all would like to offer them that way.

First, we will do the overview of the solicitation and then we will respond to the questions we have received in advance and then we will respond to questions from the audience.

One of the things that we want to make clear is that nothing we say today can be held against us, until we actually issue an official amendment to the solicitation, no comments or answers to questions will change the requirements of the solicitation. We do anticipate, as you will hear from some of the responses to questions we have received, that we will be issuing an amendment, and Becky will go into that more specifically.

Now, I'd like to turn it over to Becky Koses.

SOLICITATION OVERVIEW

MS. KOSES: Good morning. One and three quarters of a year, which is 21 months, which is 84 weeks, which is 588 days, which is 14,112 hours, which is 846,720 minutes, and three million meetings later, here we are!

It is a pleasure to see you up here today. I recognize a lot of the faces. Appreciate your perseverance in keeping with us throughout the entire process. Stay with me, we'll get started.

Today, I'm going to highlight several areas of the solicitation. We'll talk about four sections. They are the executive summary of significant changes; how the offers should be prepared; what evaluation criteria we will use, and how we'll evaluate price.

I'll talk about each section and then ask if you have any questions on the section just covered.

Let's highlight the executive summary of significant changes. There are 11 changes and one issue we wanted to bring to light.

The first significant change is the pricing tables for the value-added or tier 2 products or services.

Based on the comments we received on the draft solicitation, we've revised the tables to reflect commercial terms and conditions where appropriate.

What does this mean? It means if you are offering any value-added products or services, you will provide to us your commercial pricing practice and provide us evidence of your commercial practice, such as a commercial price list or invoices that demonstrate the sales.

Are there any questions on the change to the tier 2 pricing tables?

The second change outlined in the executive summary is the sales refund. We are requiring a minimum refund of six basis points on the net charge volume. Net charge volume includes all purchases and other charges, less credits. This includes travelers checks, convenience checks, ATM, and any other fee generating products/services in both core and value added. It does not include merchant fees and discount rates.

Why did GSA include fee generating products/services into the sales refund calculations? Because agencies receive benefit by using all products and services ordered. The industrial funding fee requirement must encompass all products and services in order for GSA to recover its procurement and administrative costs.

What does this mean? It means that your proposed price for any fee generating products and services will need to take into consideration the industrial funding fee requirement.

We've also revised the agency sales refund formula to allow the deduction of credit losses. This means that some measure of risk is mitigated for you.

Next, we've addressed the possibility of a negative net agency refund. This may occur, for example, when agencies experience seasonal fluctuations in spending. In a reporting period where an agency's credit losses exceed the net charge volume, the contractor shall carry forward the negative net balance against any future earned refunds.

If this happens for four consecutive reporting periods, the contractor may enter into an agreement with the agency to continue to carry forward the negative net refund or zero out the negative refund and cancel the account. Please note for centrally billed accounts, you will be paid for the actual undisputed charges.

Why did we make this change? Again, to provide some measure of protection against high credit losses.

Are there any questions on the sales refund?

The third change as outlined in the executive summary of significant changes is the card design.

Based on industry comments received on the card design, the placement of the printed information on the cards appears to be an issue. It is apparent from the comments received on the card design that industry differs in card specifications. While the background card design won't change, we will allow offerors to work with a card designer on the placement of information once the solicitation closes.

What does this mean? It means that we will try to accommodate any specific design specifications within our goal for an uniform and consistent card design across offerors.

Are there any questions on the card design?

The fourth change is in the program and transaction data requirements. We've clarified what we are looking for in an electronic access system and clarified the data element requirements as a result of the comments received.

Offerors will be providing electronic access systems that help us do our job better and faster. This includes providing any associated software or communication connection necessary for the Government to connect to the electronic access system.

Offerors will not, however, be providing any underlying operating systems, web browsers, software or hardware or instructions on any of those underlying systems.

Why did we make this change? So you can focus your efforts on providing your commercial electronic access system that meets the requirements and not focus on the underlying systems.

Are there any questions on the program and transaction data requirements?

The fifth and sixth changes are the suspension and cancellation procedures. For all accounts, the procedures now include a 180 calendar day time limitation in which to initiate suspension or cancellation action.

What does this mean? It means if you don't initiate suspension or cancellation actions within the specified time frames, you waive your right to do so for that specific charge only.

For individually billed travel card accounts, agencies must take an affirmative action to stop suspension or cancellation actions due to mission- related extenuating circumstances.

Alternatively, for individually billed travel card accounts, alternative suspension or cancellation procedures can be defined and priced at the task order level. For example, an agency may wish to use one or more risk mitigation measures at the task order level and thus may require alternative suspension or cancellation procedures to accommodate the risk mitigation measure.

What does this mean? It means that for mission-related extenuating circumstances, you must recognize that agencies have the ability to stop suspensions or cancellations on individually billed travel card accounts.

Are there any questions on suspension or cancellation procedures?

The seventh change is the inclusion of commercially available risk mitigation measures for individually billed travel card accounts.

The first risk mitigation measure is late fees, which did not change from the draft solicitation. You may charge your standard commercial late fee on individually billed accounts that are 120 calendar days past and have been canceled in accordance with the contract terms and conditions. Late fees are the responsibility of the individual cardholder.

However, agencies may, at their discretion, opt to include late fees earlier than that allowed in the master contract. If agencies choose to include late fees in this manner, they are responsible for any coordination with the unions, as appropriate.

What this means is that for master contract purposes, you must recognize that late fees may only be assessed at 120 calendar days and account cancellation. You may offer alternative pricing strategies. For example, you may say here's my price for meeting the solicitation requirements and here's my price with standard commercial late fees. The alternative pricing proposal may affect how the agency places its task order.

What is new in the final solicitation are a number of other risk mitigation measures such as reinstatement fees, credit checks, pre-funded cards and other commercially available risk mitigation measures that an agency can opt to include at the task order level.

What does this mean? It means that you can work with agencies to show them the benefits by including risk mitigation measures; however, it also means that you may not delimit your offer to agency inclusion of any risk mitigation measure.

We recognize this may be a serious disincentive to some of you. We've given a lot of thought and consideration in weighing the pros and cons of this important issue with both industry and with agencies, and we hope that this final decision will not result in fewer card service provider choices.

Are there any questions on the inclusion of risk mitigation measures?

The eighth change outlined in the executive summary is record retention and retrieval requirements. We've revised them to include specific time frames for record retention for transactions under $25,000, which is three years after final payment, and over $25,000, which is six years and three months after final payment.

Are there any questions on the record retention and retrieval requirements? The ninth change is the addition of configuration management requirements. What this is basically saying is that we don't want to re-invent the wheel when it comes to smart cards. We want the Government to move in one unified direction to maximize interoperability and efficiency and for those agencies participating in a Government-wide smart card application, we want to be able to share the cost with those that are using it.

What does this mean? It means we aren't developing Government unique standards. We want to take advantage of open commercial standards as they are defined by industry.

Are there any questions on configuration management?

The tenth and eleventh changes impact the instructions to offerors and evaluation sections which we'll talk about in more detail in just a few minutes.

The last issue is the Debt Collection Improvement Act.

When we released the draft solicitation, we asked you to suggest how the requirements of the Debt Collection Improvement Act can occur in our card programs without disrupting commercial credit card services. We shared the feedback we received with the Department of Treasury and they are in the process of reviewing the comments.

The Government will continue to pursue available administrative options to meet the requirements of the Debt Collection Improvement Act with the following goals in mind:

(1) We want to minimize change to existing commercial infrastructures.

(2) We want to minimize cost.

(3) If we give you wrong information, we won't hold you responsible.

When implementing options are developed within the regulatory framework, and if those options impact our contracts, GSA will appropriately modify the contracts. Until then, there are no requirements for offerors to offset debt through the credit card program.

Are there any questions on the Debt Collection Improvement Act?

The second and third main topics of today's discussion is how you should prepare your offers and how they'll be evaluated. I'm going to talk about both sections at the same time.

We are asking for a lot of detailed information in a limited number of pages and in a limited amount of time. We want you to be clear and concise in providing and presenting the information requested. We've limited the size and time of the proposal so you can focus on how you'll meet the requirements without a lot of salesmanship. We aren't interested in fancy presentations or artwork. We want your proposal in four volumes.

Volume 1 is for contract data. This contains the standard contract stuff, like who is going to negotiate and administer the contract, small business information, your subcontracting plan, things of that nature. There are no page limitations on Volume 1.

Volume 2 is for your technical proposal. It contains three sections, a narrative section, an oral presentation and a demonstration. In each section, you will demonstrate your understanding of the requirements and tell us how you are going to successfully accomplish them. These three sections have page or time limitations on them and we'll talk more about these in a few minutes.

Volume 3 is the volume for other technical information such as your presentation packages, sample training materials, generic card designs, things of that nature. Volume 3 has no page limitations.

Volume 4 is for your price proposal. You will tell us how much of a refund you'll offer; what, if any, alternative pricing proposals you are offering; what, if any, productivity refunds you are offering; and tell us your pricing on value-added products and services. There are no page limitations on Volume 4.

Today we will concentrate on Volume 2, the technical proposal, and Volume 4, the price proposal.

Volume 2 consists of your technical proposals, again, in three sections. The first section is a narrative proposal in which you must limit the number of pages depending on the number of business lines offered and whether you are offering an integrated solution.

Please note that based on the comments we received, amendment two, which will be forthcoming shortly, will be revising this section. How you submit your offer relative to the business lines you are offering will change. In amendment two, if you want to offer an integrated proposal but also be considered for each separate business line offered, you'll submit one proposal only. I don't hear applause.

However, the technical proposal must demonstrate all requirements for each particular business line offered and each integrated solution offered. Separate pricing proposals will be required. That is a pricing proposal for the separate business lines offered and a pricing proposal for the integrated solution.

Are there any questions on the page limitations?

The second and third sections of Volume 2 are an oral presentation of proposal information and a demonstration of your electronic access system. You must make your oral presentation and demonstration in person. The amount of time allowed for your oral presentation and demonstration is limited.

For each separate business line offered, you'll have two hours for your oral presentation and two hours for your demonstration.

For two integrated solutions offered, you'll spend a couple of days with us. On day one, you'll have three hours for your oral presentation and on day two, three hours for your demonstration.

If you are offering three integrated solutions offered, you'll spend, again, two days with us. On day one, you'll have four hours for your oral presentation and on day two, four hours for your demonstration.

I'd like to talk a bit about the oral presentation and demonstration process before moving on.

You will use an oral presentation to demonstrate your technical expertise and you will use a demonstration to show us your electronic capability.

After the closing date for receipt of proposals, we'll schedule your oral presentation and demonstration date by lottery drawing.

Your oral presentation/demonstration team is limited to five key personnel members, as outlined in the solicitation. In addition to the five key personnel team, we will allow attendance by one senior management representative and one lawyer or accountant, for a total count of seven people.

You may not use professional presenters. The Government may ask for clarification on any point addressed in the oral presentation or demonstration, but the Government will not engage in discussions. As outlined in the solicitation, clarifications or questions and answers will not count toward your time limit.

There are format restrictions for your overhead transparencies. These are outlined in the solicitation. You must submit your overhead transparencies with your offer, and no revisions or additions will be accepted after receipt. The overhead transparencies will then be given to you on your presentation day.

The process sounds formidable, but it isn't. We've included oral presentations and demonstrations because they streamline the proposal process, reduce bid and proposal costs and speed things up considerably.

Are there any questions on the oral presentation or demonstration process?

Moving on now, Volume 2 follows the solicitation's evaluation criteria. There are three factors of importance. They are factor one, performance; factor two, technical excellence, and factor three, management.

Factor one entitled performance is worth 40% of the total evaluation score. This part consists of narrative information only. We are looking for offerors to provide information in two areas: Past performance and corporate experience.

The first subfactor under factor one, past performance, is worth 80% of the total score for factor one. Here we want you to detail five of your Government or corporate card projects that are similar to the work contemplated. Provide program volume data and describe each project from start-up to completion. Tell us about three best and three promising practices.

If you are offering an integrated solution on two or more business lines, tell us about the integrated projects you've performed and address the level of integration you have provided.

The second subfactor under factor one is corporate experience. It is worth 20% of the total score for factor one.

Demonstrate two years of corporate experience in providing card programs for the business line proposed. Please note for integrated solutions, the minimum two-year corporate experience requirement does not mean two years of integration experience. However, if you are offering an integrated solution, you must have two years of corporate experience in the business lines being integrated. Amendment two will make this more clear.

We want you to tell us about the program volume for your top ten corporate card accounts. Provide merchant acceptance information as outlined in the solicitation. Commit to add new merchants and merchant types as well as upgrade existing and new merchant's point-of-sale equipment. Provide your merchant recruitment/merchant upgrade plan and tell us how you will add and upgrade merchants.

In order to be satisfactory for factor one, you must meet all minimum requirements and typically, and by "typically" I mean at least 51% of respondents contacted by the Government scores you at least satisfactory in ten key areas of the reference questionnaire provided as Exhibit 16.

These ten areas are: 1) Understanding and satisfying client requirements; 2) Merchant acceptance of the offeror's card product; 3) Adding new merchants and merchant types; 4) Upgrading existing and new merchant's point-of-sale equipment; 5) Implementation/transition; 6) Timeliness; 7) Service; 8) Communication; 9) Responsiveness; and 10) Innovation.

We are looking for 99 card client references for each business line offered from an equal mix of small, medium and large card clients. The Government will attempt to contact at least 24 of the 99 references. These references will be checked through a questionnaire that was provided as Exhibit 16 in the solicitation.

Why did we pick 99 references and why do we want them from small, medium and large card clients? We wanted a balanced and large enough reference base from which to randomly choose 24 references to send the questionnaire to. This will enable us to make a fair and accurate assessment of past performance and give us a picture of who you are.

Please note that Amendment two will clarify that the 99 references must come from at least 24 different contracts and not 99 separate clients.

In order to be satisfactory, you must also have satisfactory merchant acceptance. You must commit to add new merchants and merchant types. You must commit to upgrade existing and new merchant's point-of-sale equipment. You must, at a minimum, provide your merchant recruitment/merchant upgrade plan, which includes marketing materials, so that agencies can disseminate these to our vendors.

Preference is given in four areas. They are if you score higher than typically satisfactory on the ten key areas I just mentioned; number two, if you score satisfactory or higher in providing value-added products and services; number three, if you score satisfactory or higher in providing integrated solutions; and number four, if your merchant recruitment/merchant upgrade plan increases the Government's merchant base and level of data collection by including program type measures such as reduced merchant fees, incentive pricing, things of that nature, with additional preference given if your plan includes personnel intensive measures, such as dedicated staff for merchant recruitment and merchant upgrade, small business outreach efforts.

Are there any questions on factor one?

The second factor, entitled technical excellence, is worth 40% of the total evaluation score. This part consists of a narrative technical proposal, an oral presentation of proposal information, and a demonstration of the electronic access system. We are looking for information from offerors in four areas: Operational processes, technical expertise, electronic capability and transition plan. Each of these areas are equally important and are worth 25% each of the total score for factor two.

The first subfactor under factor two is operational processes. We want you to detail your understanding of and ability to accomplish requirements in 23 areas.

Electronic commerce. Here, you will make a commitment to assist us in the development and implementation of our EC/EDI processes. Provide a trading partner agreement.

Credit bureaus or similar entities. Here we want you to make a commitment to not provide information regarding a centrally billed account to credit bureaus or similar entities.

Delinquency control. Make a commitment to not use a collection agency for delinquency control on centrally billed accounts. If there is any settlement action, commit that all records and reports reflect such settlement action and consider the debt discharged. Specific to the travel card and individually billed accounts, and if you intend to use a collection agency, commit to use a collection agency for delinquency control in accordance with the solicitation requirements.

Security requirements. Tell us how you will secure the databases, information and systems and if requested, how you will provide higher levels of security at the task order level.

Backup system. Tell us how your backup system secures and protects all databases, information and systems in a seamless manner.

Investigation assistance and audit assistance. Commit to assist in any authorized investigation and any authorized audit and provide the data where necessary.

Marketing and advertising. Commit to the restrictions and processes outlined in the solicitation.

Master contract newsletter. Commit to develop and distribute a quarterly electronic newsletter in accordance with solicitation requirements.

Statement inserts and statement messaging. Tell us how you will accomplish the statement insert and messaging process. Describe your specifications and processes.

Master contract training conference. We require your participation in the annual master contract training conference and to assist us in the logistics of the training conference. Commit to participate in any task order requirement for a separate conference.

Release of program information. Commit to not use names, addresses or any other account or card information for any purpose other than specified in the contract. Commit to not release, sell or make available to any third party any information except as specifically provided for.

Card design and embossing. Commit to the card design and embossing requirements as stated in the solicitation.

Account number. Tell us how you will accomplish the account number requirements.

Year 2000 compliance. Warrant that your offered products and services and authorization system is Year 2000 compliant.

Posting of transactions. Commit to post all transactions to the account within two business days.

Tax exempt status. Work with us to ensure merchants and states do not tax transactions paid directly by the Government. Assist us in resolving tax exempt issues. If offered, provide your plan to contact merchants at the Government's request and pursue tax exemption. Specific to fleet, tell us how you will accomplish tax exempt requirements and provide accurate tax information.

Foreign currency conversion. Make a commitment to favorably convert foreign currency charges to U.S. Dollars at no separate fee.

Record retention and retrieval. Commit to be the Government's agent for document repository and provide data where necessary.

Card fees. Commit to not charge a card fee for core requirements unless otherwise allowed by the Government.

Government-wide shut down. Make a commitment to not de-activate any account unless otherwise notified by the GSA Contracting Office or the Agency.

Liability. Recognize liabilities in accordance with the solicitation requirements.

We will be evaluating your abilities to adequately perform the requirements of this subfactor in a timely manner.

Preference is given in two areas: These are: One, if you demonstrate excellence in your understanding of and ability to accomplish all the areas I just described with the exception of tax exempt status requirements, that is evaluated separately.

Two, if you provide your tax exempt plan that commits you to contacting merchants and actively pursues tax exemption. Specific to the fleet card, you are preferable if you can provide additional tax details such as local taxes, Federal Excise Tax on non-fuel purchases.

The second subfactor under factor two is technical expertise. This will be an oral presentation of proposal information. We want you to detail your understanding of and ability to accomplish requirements in seven areas:

One, training requirements. Tell us how you are going to accomplish training to cardholders, agency program coordinators, designated billing office personnel, and transaction dispute office personnel.

Two, transaction authorizations. Tell us how you are going to provide transaction authorization support and overrides.

Three, authorization controls. Tell us what your standard commercial authorization controls are and how they'll work. Show us how you can provide additional authorization controls and tailor them as needed. Specific to the fleet card, tell us how you are going to give a billing address to a merchant that does not participate on your network.

Four, program accounts. Tell us how you are going to set up, process and administer accounts, cards and invoices in a timely and accurate manner. Specific to the travel card, include a discussion of ATM, travelers checks, cardholder agreements, split disbursements, risk mitigation measures and a host of other requirements as defined in the solicitation.

Five and six, suspension and cancellation procedures. Tell us how you will manage suspensions and cancellations.

Seven, customized services. Tell us how you will respond to and accomplish requests for customized services. Tell us how you will keep the GSA Contracting Office informed.

If you are offering value-added products and services, tell us what they are and tell us your commercial practice in offering them.

Tell us whether you commit to provide state-of- the-art technology throughout the contract period.

If you are offering one or more integrated solutions, describe them and detail the process of integration.

In order to be satisfactory, you must meet all minimum requirements I just described.

We will be evaluating your abilities to adequately perform the requirements of this subfactor in a timely manner.

Preference is given in four areas. These are: 1) If you demonstrate excellence in your understanding of and ability to accomplish the requirements I just described. 2) If you commit to provide state-of-the-art technology throughout the contract period. 3) If you provide value-added products and services with more preference given for those technologies that can result in substantial administrative savings or streamlining, such as hybrid cards, inter/intra governmental services, electronic purchasing, net billing, activation/deactivation on demand. 4) If you can provide front or back end integration of two or more business lines with more preference given to you if you can provide front and back end integration of two or more business lines.

The third subfactor under factor two is electronic capability. This will be a demonstration of your electronic access system. We want you to detail your understanding of and ability to accomplish requirements in 15 areas: 1) Provide at least a level 3 platform. 2) Provide all transaction data received from merchants and be proactive in obtaining additional data to forward to the Government. 3) Show us how secure the system is. 4) Show us how user-friendly the system is. 5) Show us how the proposed system will provide us program functionality. 6) Show us how we can review and manipulate the data. 7) Show us how the automatic default cost allocations and code assignments work. 8) Show us your standard commercial reports. 9) Show us how you'll provide the GSA Contracting Office reports. 10) Show us how we can create ad hoc reports. 11) Show us how the electronic access system will provide connectivity. 12) Show us how data can be exchanged and interfaced. 13) Show us how disputes can be reported and tracked. 14) Address the availability of the system. 15) For the purchase and travel cards, show us how the system enables automation of convenience and travelers checks.

If you are offering integrated solutions, show us how the proposed system streamlines functions and processes.

In order to be satisfactory, you must meet all minimum requirements.

We will be evaluating your abilities to adequately perform the requirements in a timely manner.

Preference is given in four areas. These are: 1. If you demonstrate excellence in your understanding of and ability to accomplish all the areas I just described. 2. If you can provide at least current program and transaction data, and by "current," is defined as previous day's data. 3. If you can provide the data elements listed in the solicitation under agency reporting. 4. If you can integrate the front or back end processes of two or more business lines with more preference given to you if you can provide front and back end integration of program and transaction data for two or more business lines.

Now let's move on to the fourth and last subfactor of factor two, transition plans. This will be a narrative proposal. We want you to detail your understanding of and ability to accomplish requirements in four areas of transitions, both as an incumbent and as a successor. These areas are: 1) Contract start-up transitions 2) Agency/organization transitions at the task order level 3) Master contract transition for the close of the master contract; and 4) Technological advance transitions.

For all types of transitions, provide your transition schedule that addresses timelines and responsibilities. Demonstrate adequate, knowledgeable service levels and address how clear communications will occur. Demonstrate how transitions will be performed in a timely, accurate and seamless manner and minimize impact to the Government in the phase-in and phase-out process of each transition.

For contract start-up transitions, tell us how you'll ensure contract coverage for all participants. Tell us how you'll give mandatory users first priority in transitioning.

For agency/organization transitions at the task order level and for master contract transitions, tell us how you will reconcile each account balance and settle each dispute in a timely and accurate manner to close out the program.

For technological advance transitions, tell us how you'll do it and ensure continuation of card programs. Tell us how you'll accomplish fine tuning to work out problems or glitches.

If you are offering integrated solutions, tell us how you'll transition them in the areas I just described.

In order to be satisfactory for this subfactor, you must meet all minimum requirements.

We will be evaluating your abilities to adequately perform the requirements in a timely manner.

Preference is given in two areas. These are: One, if you demonstrate excellence in your understanding of and ability to accomplish all the areas I just described. Two, if you can transition two or more business lines in a seamless manner.

Are there any questions on factor two?

The third and last factor, entitled "management," is worth 20% of the total evaluation score. This part consists of a narrative technical proposal. We are looking for information in two areas: Plan of accomplishment and quality assurance plan. Each of these two areas are equally important and are worth 50% each of the total score for factor three.

The first subfactor under factor three is plan of accomplishment. We want you to detail your understanding of and ability to manage and staff all aspects of the Government's card programs.

Clearly define your organization structure and demonstrate how the components work together in a coordinated organized manner.

Demonstrate adequate staffing levels to manage and process Government requirements.

Provide resumes of key personnel and alternates and a host of other requirements as outlined in the solicitation.

If offering integrated solutions, tell us how you'll provide consolidated and centralized management oversight and card operations staff.

In order to be satisfactory, you must meet all minimum requirements.

We'll be evaluating the adequacy and comprehensiveness of your plan of accomplishment and your abilities to perform the requirements of this subfactor.

Preference will be given in two areas. These are, one, if you demonstrate excellence in your understanding of and ability to accomplish the stated requirements. Two, if you can provide consolidated and centralized management oversight and card operations staff for two or more integrated solutions.

The second subfactor under factor three is quality assurance plan. We want you to detail your understanding of and ability to provide a high quality card program.

Tell us how you'll ensure quality products and services. Tell us how your management participates in the quality process. Tell us how you'll assess your performance. Tell us how you'll perform the requirements of this subfactor as stated in the solicitation.

In order to be satisfactory, you must meet all minimum requirements.

We'll be evaluating the adequacy and comprehensiveness of your quality assurance plan and your abilities to perform the requirements for this subfactor.

Preference will be given to you if you can demonstrate excellence in your understanding of and ability to accomplish the stated requirements.

Are there any questions on factor three?

Let's talk about the overall evaluation process.

The Government intends to make multiple contract awards to responsible offerors whose offer conforms to the solicitation and is advantageous to the Government.

What does advantageous mean? Does that mean best value? Not necessarily. Does that mean low price? Not necessarily.

So what does advantageous mean? By advantageous, we mean those offers that at least meet minimum requirements AND provide a service, product or price advantage. By service or product advantage, we mean that offering a service or product no one else does or if offered by someone else, to provide competition at the task order level.

We want to provide an efficient competition and provide agencies with the greatest mix and balance of products and services. Amendment two will make this more clear.

Are there any questions on the overall evaluation process?

Lastly, we'll talk about price evaluation.

For each business line offered, we will conduct a price evaluation in two areas. They are core requirements and value-added products and services.

We will also evaluate the acceptability of your proposed methodology to accomplish multiple remittance frequencies and end of fiscal year processing.

You must price as instructed, using the tables provided in the solicitation.

Core requirement pricing will be evaluated by multiplying the evaluated quantity of charge volume by the number of basis points offered. The calculation will include all option years.

Total charges for core services, such as convenience checks, customized services, ATM, travelers checks, will be subtracted from the basis point refund.

Value-added pricing will be compared with your commercial pricing. Prices must be determined fair and reasonable.

For each business line offered, and in addition to the required pricing, alternative pricing proposals and productivity refunds are encouraged.

Alternative pricing proposals will be evaluated by comparing the estimated refund, an assessment of the likelihood of achieving the refund, and what risk, if any, is involved with the alternative pricing proposal.

Productivity refunds must take into account cash management principles. As the difference in the aggregate financial proposals becomes less significant, the productivity refunds become more significant.

Are there any questions on the price evaluation?

Well, I've talked about the significant changes and how offers will be prepared and evaluated. This has been a real whirlwind process and I'm really "charged" up at the prospect of evaluating your offers!

This concludes my portion of the briefing. We are way ahead of schedule here. I guess we will take a break first, and then when we come back, we will move on to answering the written questions we received.

Darlena and Rosemarie will be talking to you in a moment. A lot of questions came in at the last minute, Friday, so we are going to be doing this pretty much as we would an open Q&A form. Thanks.

Fifteen minute break. See you back here at 10:25.

(Recess)

MS. McIVER: If we can get back together, please. Thank you.

RESPONSES TO QUESTIONS

MS. McIVER: I just want to say the process we are going to follow now is we are going to start off with the questions that we have gotten in advance of this meeting and we will be answering those that we can. Some of them are probably going to require a little bit further research so they will be showing up on our Web site.

If there is anybody who has questions that they have drafted during the break as thoughts came to them, we have a few people who are going to walk the aisles and we will collect them from you. You guys want to hold up your hands? Marianne and Barbara. Any questions you want to pass forward to them at this point, they'll take.

We are going to start with the Q&As that we have gotten in advance and then we will follow up with these that we have collected from the floor.

First, it is going to be Darlena Bikowski.

MS. BIKOWSKI: Good morning. At this time, I'd like to address about half of the questions that we received in response to the final solicitation, then I'm going to turn it over to Rosemarie Dunn to finish the remainder of the written questions.

First question. There are technical stats and legal distinctions essential to a contractor fulfilling its obligations that are not specified in the RFP. One example would be the common practice of establishing a credit agreement between the contracting parties. Are these terms and conditions eligible for negotiation with GSA prior to contract award? If not, are these to be negotiated with the ordering agencies on a task order basis?

The contract serves as the agreement between the Government and the vendor. The pricing proposal should identify any and all terms and conditions the vendor is proposing. GSA will determine which, if any, terms and conditions should be negotiated at the master contract level or at the task order level.

If the offeror does not meet the minimum requirements of the core requirements section, which is Section C, in full, for example, if the offeror did not support our reporting request and the offeror was ranked as one of the top three to five offerors under the stated evaluation criteria, could the offeror be awarded a master contract?

No. Offerors must meet all minimum requirements.

There were a couple of questions regarding the standard Form 1449, the version of the RFP that was posted on the Internet did not contain a copy of standard Form 1449. Are offerors to photocopy a copy from the FAR and complete all boxes as noted on page nine?

No. GSA will provide hard copies. On the flyer that you received at the registration desk, there's a phone number. If you would like to call that, we can provide you with a copy, and there are also some hard copies at the registration desk as well.

Because the master contracts have the potential of lasting ten years, bidders are going to do everything possible to limit the risk of not receiving a master contract award. This means that bidders offering an integrated solution will also bid separately on each business line. For a bidder offering an integrated solution for all three business lines, this means a total of 200 binders. Additionally, a significant portion of the information will be repetitive. All the infrastructure and most of the product functionality will remain the same for each business line and the integrated solution.

The primary differences between an individual business line and an integrated solution will be with respect to reporting, billing, and potentially liability.

In the interest of making the response easier to prepare for bidders and more importantly, easier for the Government to evaluate, we suggest the Government adopt a practice used by many commercial customers.

Commercial customers request a single integrated proposal but reserve the right to award contracts on an individual business line basis. Bidders indicate with the submission of the proposal whether it is for the integrated solution only, all or nothing, or if it can also be considered for an individual business line award.

If this approach is not taken, the amount of time the Government will need to evaluate proposals will be significantly increased, and much of the additional time will be spent re-reading the same information.

Given the tight time frames in which the Government would like to make an award, this might not be in the best interest of the Government's time.

Amendment two will revise this requirement. If you want to offer an integrated proposal but also be considered for one or more business lines, you will submit one proposal only. However, the technical proposal must demonstrate all requirements for each particular business line offered and each integrated solution offered. Separate pricing proposals will be required.

For example, a pricing proposal for the separate business line or lines offered and a pricing proposal for the integrated solution.

We received several questions regarding bidding on the integrated solution business line and the remaining independent business lines. I will just read one of them as an example.

For offerors bidding an integrated solution, that is the single integrated proposal, the proposal format would seem to indicate that it would be impossible to have separate business lines awarded in the event that the integrated solution was not acceptable. It would also seem that it is not in the offeror's best interest to submit an integrated proposal, rather, the best strategy would be to bid each business line separately plus an integrated proposal. Was this GSA's intent?

Amendment two will clarify that an offeror may be awarded separate business lines in the event the offered integrated solution is unacceptable, providing that the offeror indicates that it wants to be considered for the separate business lines.

The instructions of Clause 13.2(E) seem to conflict with the format of pricing tables which call for pricing entries for both the business line card and the integrated solution. Please clarify.

Amendment two will clarify the pricing tables to reflect it is optional to offer on an integrated solution.

With the exception of Diner's Club and American Express, all other bidders will be either VISA issuers, Mastercard issuers or both. Is there a way these associations could submit the operating regulations directly to the Government on behalf of their members rather than having each bidder provide the same information?

Amendment number one was issued and already addressed this particular issue and it states that in order to avoid duplication of submissions, Mastercard and VISA will provide to GSA its operating rules and regulations under separate cover.

Those offerors proposing Mastercard and/or VISA must instead warrant us that their offered card program adheres to the appropriate operating rules and regulations.

Page limitations. Is there a page limit for Volume 3 or Volume 4? The response is no.

Is the page limitation for integrated proposals inclusive of all page counts? In the draft RFP, there were sections that fell outside the page limitations. The way this currently reads, it can be inferred that the page limit is all inclusive.

The page limitations specified in the solicitation for Volume 2 are from cover to cover. The content of Volume 2 is described in the Addendum, 52, 212-1, paragraph 13.4, Volume 2, technical proposal, subparagraph (C), which is content.

Instructions to offerors' section, 13.2(D). Does the table of contents count towards the page count? Yes.

Evaluation of commercial terms. Security requirements and back up system requirements in the statements of work were excluded from the page count consideration of Volume 2. Was it the intent of the GSA to know include both of these sections within the page count limitations? Yes.

Are fold-outs permitted provided they are bound with the rest of the proposal? Fold-outs are not permitted.

Paragraph 13.2, form of technical and price proposals, subparagraphs indicate that the proposal submission must be on an 8 1/2 by 11 inch paper. Does the double spacing requirement apply to resumes? Yes.

Section 13.2, form of technical and price proposals, since pitch refers to conventional typewriter print and computer generated print is measured in font point size, with 10 being smaller than 12 point, please specify the smallest computer generated point size of print size you will accept for main text of the proposals.

The solicitation will be revised to reflect 12 point.

Program and transaction data. What is the maximum field length for a Government E-Mail address? This will be identified in the agency task order.

We received several questions regarding electronic access. I will read one as an example.

The contractor at its expense shall also provide any software and communication connection required to allow each requesting agency or organization to connect with the system. Does this imply that the contractor is expected to pay for telecommunications connectivity from the agency to the contractor's system? If so, does this include leased lines and dial up lines? Also, if access is through the Internet, is this acceptable?

The contractor is required to provide associated software and communication connections to allow the agency to connect with the system. The contractor shall provide what methodology it will use. However, secured Internet access is one acceptable method.

We also received several questions regarding references. In developing a list of references, are you requesting 99 references per line of business bid or 99 total, divided among the business lines?

Becky addressed this earlier in her speech, I believe, but I will go ahead and talk a little bit more about it to make sure it's clear.

The Government is requesting 99 references per business line, 33 references from small, 33 from medium clients and 33 from large clients. Amendment number two will clarify that the 99 references must come from at least 24 different contracts, eight small, eight medium, eight large. References can be used from more than one business line.

For example, if you provide both a travel and purchase card to a client, that client can be provided for both business lines. You cannot, however, include a reference to talk about a business line you do not provide to that reference. For example, if you provide a purchase card to a client and not a travel card, you cannot provide a purchase card reference to talk about your travel card.

At least 24 references will be contacted by the Government. Subcontractor references are not acceptable. References will be randomly selected for the written questionnaire. Follow up with the references may be required.

Authorization controls. In the purchasing card program, the requirements state specific purchase exclusions. Unless there is a merchant category code or some other universal identification, it is difficult to block certain classes of purchases. For example, blocking out long term rentals or leases. This is an agency policy issue, not a card provider issue.

Offerors should propose what mechanisms and/or methodologies it will use to accomplish the requirements.

Program data. We are contractually bound not to release program data on our existing contracts, including those with the Federal and state governments. We request that GSA relieve the requirement to provide this data in past performance.

The solicitation requirements remain unchanged. We received several questions with respect to projected program growth. What is your expectation of annual percentage of growth for each card program over the first five years of the contract on an agency or organizational basis?

The Government will not be providing program growth projections. All of the available program data is provided in Exhibits 2, 3 and 4.

Are the numbers in the fleet card program exhibit card program exhibit inclusive of the right express program? Yes. Exhibit 2. Please provide at least 12 months of fleet card activity data. The four months of data included in Exhibit 2 is insufficient for the contractor when analyzing volume of cards and annual sales volume. No other program data is available.

Exhibit 3. What is the history of charge-offs for uncollected accounts on the travel and expense or how much history of recovery do you have on a 120 day old debt?

All available program data has been provided in Exhibits 2, 3 and 4. Exhibit 3(g) shows travel card volumes.

The last sheet in the work book is entitled "Non-U.S." Are these totals included in the monthly worksheets immediately preceding this sheet or are these volumes over and above the volumes in the preceding monthly worksheets?

The totals in the worksheet entitled "non- U.S." are included in the preceding worksheets.

Exhibit 3(g) shows volumes by fiscal year for the travel card. Are the numbers for ATM and travelers checks' transactions included in the sales transaction totals in the immediately preceding columns? Yes.

Exhibit 3(c), travel payment and control system aging as individual card accounts. In reviewing the individually billed card balance aging information in the exhibits, we believe more detailed information is needed. Specifically, looking at the 120 plus column, we cannot determine if these figures have ever been reduced for previous write off and/or fraud losses versus the netting effects that payments received would have had. The data suggest that some rather large write-offs may have been taken at some time in the past, but we cannot be sure without more information.

In our opinion, it is next to impossible to reasonably estimate the true cost of the individually billed accounts without historical delinquency write off and fraud loss information by agency, by fiscal year, at a minimum.

Will the GSA be providing delinquency write off and fraud loss data by agency, by fiscal year, and explain how these figures may or may not be part of the data in the existing exhibits prior to the deadline for submission of responses?

Again, all available program information was provided in Exhibits 2, 3 and 4.

Exhibit 4, historical non-U.S., what time period did the charges in this section of Exhibit 4 relate to and do they represent all the international transactions for that period?

The time period is from April 1, 1997 through August 25, 1997, and yes, they do represent all the international transactions for that period.

In prior exhibits, the Departments of Navy, Air Force and Army were listed separately. In this one, only DOD is listed. Can we assume that the military services fall under the DOD umbrella or are they not mandatory participants?

On this question, it was not clear what exhibit was being referred to, so after the break, when we open the floor up to questions and answers, if someone would like to clarify that for us, we'd be happy to answer that for you.

Mandatory users. If an agency indicates it plans only one task order per agency, does that mean that they could select multiple awardees for a single business line or does this mean they will issue individual task orders for all business lines?

If an agency listed one per agency in Exhibit 5 of the solicitation, it means the agency anticipates placing a task order at the agency level instead of allowing each agency component to place its own task order. Agencies that are not placing one task order may select multiple awardees for a particular business line.

We received several questions regarding Exhibit 5, which is mandatory users. The mandatory users lists the Department of Defense. Does this include Air Force, Army, Navy and the Marine Corps or is it to be assumed that these are not mandatory users unless named specifically?

The number of mandatory user agencies and anticipated card usage volumes will have some bearing upon offerors' development of their proposals. Please advise if the current listing of mandatory users is static for any particular period of time, will agencies be able to become mandatory users prior to the date set forth for the submission of offers and if so, will offerors be provided a new Appendix 5 listing such mandatory users?

The military services are included under DOD. Agencies may place more than one task order, allowing each agency, for example, allow each agency component to place its own task order. Please note that not all agencies have provided task order placement information. When further information is available, an amendment will be issued to reflect those.

Exhibit 15. What are the numbers in column, fourth quarter 1996 and third quarter 1997, Government volumes, total volumes? Please specify the purpose of the merchant acceptance column and the expected values.

The information contained in the fourth quarter of 1996 and the third quarter of 1997 reflects Government expenditures at those merchants for the specified time period.

Offerors should indicate yes or no as to whether the merchant accepts their card products.

Card design. With GSA determining card design for each product, will the issuer be allowed to have a program name also shown on the front of each card? GSA plans to develop a program name for the card program.

Section three, evaluation of technical criteria. With respect to the third bullet, does the word "Government" in this context refer specifically to GSA or does the context of this requirement include arrangements which might be developed with a specific ordering agency, such as the Department of Defense?

This refers to GSA. The solicitation will be amended to reflect this.

Since GSA manages the fleet vehicles for the Government, will they decide or influence the decision as to the fleet contractor or is this truly an agency by agency decision?

For agencies that use the GSA's interagency fleet management system or IFMS, under a wet lease arrangement, GSA will select the card contractor. The GSA selected card contractor services GSA and its fleet. For agencies that do not use IFMS or that use the IFMS under a dry lease arrangement, the agency will be deciding their fleet card provider.

How would GSA award the interagency card portion of the value-added element? Is this a decision solely made by the GSA and not part of the individual agencies' concern? Will it be enacted through a separate task order? Will there be one contractor who is awarded this feature of the master contract?

Offerors that meet the minimum requirements may be awarded inter/intra-governmental services. Individual agencies will select their provider of choice at the task order level. Multiple awards are anticipated.

We received several questions regarding the evaluation process. For example, on the evaluation grid, page 254 of the solicitation, you reference percentage allocation of scoring. You list new point score breakdown in each section and the relative points for subsections in each subfactor. On page 265, you reference additional points based on the degree of exceeding the requirements.

What is the complete point score breakdown for all factors and subfactors referenced in the grid?

All elements will be measured against standards which have been developed to represent specific requirements of the RFP. What are the standards and the relative weight of each of these standards?

The actual points are source selection material and will not be provided with the solicitation. The standards and weights are identified in the evaluation of commercial items section in the solicitation, paragraph one, evaluation, commercial items. Paragraph three, evaluation of technical criteria and paragraph four, evaluation of price for each business line.

The solicitation indicates that a combination of points and causal ratings will be used.

Evaluation of technical criteria. The Government will consider the offerors' overall rating in determining whether or not it is excellent, satisfactory or unsatisfactory and technically unacceptable. What is the basis for excellent versus satisfactory and will you outline how that is determined? Also, to be excellent, an offeror must add value and propose a more advantageous offer. How is add value and advantageous offer determined or defined?

Paragraph three, evaluation of technical criteria, specifies what is required for satisfactory and for excellent, as well as specifies what the Government will be evaluating.

The evaluation criteria listed describes the evaluation of each product from a technical and price perspective. What is not stated is how the master contract award decisions will be made. Specifically, will awards be determined in all cases at the individual product level, or does the respondent who bids multiple product lines and/or more integrated solutions stand a better chance for being selected as a master contract provider for individual core services?

This is stated in the evaluation of commercial items section, paragraph 1(a), and will be clarified in Amendment number two.

Evaluation of technical criteria. The section states that to be considered satisfactory, the offeror must meet all minimum requirements. Are the minimum requirements comprehensively stated under factor two, technical excellence?

Minimum requirements are stated in the solicitation. Offerors must demonstrate their understanding of and ability to accomplish the requirements.

Transitions. Will GSA insist in securing the cooperation of the current contractors with regard to the conversion, timing and support of providing historical data for each agency?

The current contract requires transition support. Historical data is provided in Exhibits 2, 3 and 4.

In C.41.1, the transition time is defined as ten months and in C.27.4, the transition period is defined as nine months. Please confirm the time period for the transition, nine or ten months.

The transition period in C.41.1 should read nine months. Amendment number two will make that revision.

Agency/organization transition. The contractor shall reconcile each account balance and settle each transaction dispute within 180 calendar days of the complete agency/organization transition. Does this requirement rest with the incumbent contractor, the successor or both?

The solicitation requires that the offerors address each type of transition as an incumbent and as a successor.

Start up implementation requirements. Is there a time frame in which the predecessor must supply information to the successor?

The current contract requires master file information to be submitted within 120 working days. However, agencies receive master file reports and may provide the data based on the reports.

Presentation packages. Specifically, what should be included in C.27.2, offeror's presentation package for each business line? Will the offeror's presentation package be accessible to any other parties other than the GSA prior to the master kick off conference scheduled for February 1998?

The presentation package will be used by agencies to assist in their selection of their vendor of choice and introduce agencies to the contractor and its offered products and services. It shall include contract line item number pricing. It shall include what products and services are offered. It shall include points of contact, E-Mail address and Internet Web site address.

It should be comprehensive enough so that agencies can make an informed decision. However, the presentation packages will be in the public domain so you should not include any information that's considered proprietary. Presentation packages will be accessible to the GSA, the Source Selection Evaluation Board, and/or advisors to the Source Selection Evaluation Board.

Section five, addendum to instructions to offerors. In Section five, a due date for vendor questions is established at only eight days after final RFP release in order to permit the questions to be answered at the September 23rd pre-proposal conference. In Section C.P.4, cited above, there appears to be no deadline for offerors to submit requests for explanation or information. Similarly, at the bottom of page 214, the paragraph that states offerors are cautioned that notwithstanding, it is the responsibility of the offerors to seek clarification. There appears not to be a deadline.

Since the final RFP is significantly different than the draft and the predecessor solicitation for card services, we request that you allow a second round of questions due approximately October 10, with simultaneous Internet distribution of answers to all interested parties.

This would enable all offerors to obtain clarification of issues that arise in a structured process, as they work on the proposal, presentation and demonstration materials.

Also, will the GSA Web page include all the offerors' submitted questions and GSA's answers, so that parties who cannot attend the pre-proposal conference will be able to have the same information as provided to the attendees.

Questions on the solicitation will be entertained any time up to the solicitation closing. The Web page will include all questions and answers as well as the pre-proposal transcript.

What is the required flow of the response to the solicitation? For example, is the GSA requesting that the contractor only include requirements as defined in subfactor 2(a), operational processes of the solicitation, or are there other required elements that are expected in the response?

Instructions for responding to the solicitation are contained in Addendum 52 212.1. For example, for factor two, the solicitation instructs offerors to provide information that demonstrates the offeror's understanding and ability to successfully accomplish the Government's requirements stated in that factor.

Instructions to offerors. Is the GSA looking for the total charge volume across all existing lines of credit card businesses an offeror might have, including consumer oriented credit card operations?

GSA is looking for total charge volume on all businesses.

Instructions to offerors. Does the format and order requirement apply to subsection CA through CO? Does our demo have to follow this order or can we present it in a natural flow, i.e., log on or menu access?

In subparagraph A through O, the offeror can demonstrate the information in a logical order. The specific information in subparagraphs A through O, however, must be demonstrated. Amendment two will make this more clear.

Volume one, contract data. Pursuant to listed item nine, Volume 1, it is required to include information required in the solicitation provisions at 52 219-1. This numbered provision appears to be absent from the RFP. However, a research of the FAR indicates that this provision requests information that is identical to that required in listed item eight of this section, referring to information required in solicitation provisions at 52 212-3, specifically, at subsection (C) of that provision.

Should item nine be deleted from this listing of Volume 1, content requirements, of 13.13(b)?

This is being researched at the present time and we will clarify that by way of Amendment number two.

Program account. Provide an example of an alternate billing cycle and/or alternate levels of billing as referenced in requirement C.35.7.1. An example of alternate billing cycles may be different billing cycles within the agencies or it could be alternate levels of billing -- I'm sorry. Alternate levels of billing may be different levels of billing within the agencies.

Emergency account set up and card delivery. How does the electronic file for changes to the master file differ from the batch upload? It could be via E-Mail or other media as defined in C.2, definitions under electronics.

Account set up. Please clarify the intent to provide single account numbers with multiple subaccounts. Is it the intent of this requirement that the single account numbers represent the agency and the multiple subaccounts represent the employees within that agency?

That is one possibility. Others include multiple subaccounts to represent different agency components. These will be defined at the task order level.

C.35.11, settlement for centrally billed accounts. What is meant by the contractor shall accept payment from multiple sources electronically? Can you provide an example of when this is required? Does this imply on centrally billed accounts, payment for items charged to a single account could be received from multiple sources?

Agencies may make payment from different sources. For example, different finance centers.

C.P.151.98, which is billing discrepancies. If a disputed item is deemed valid and reinstated, is it reinstated as of the date of reinstatement or on the original transaction date for purposes of calculating days outstanding for suspension and cancellation procedures and late fees?

The disputed item is re-billed and charged in the subsequent billing period.

Program accounts. For those agencies which will be issuing individually billed travel cards, will we have an employee's home number, address? When an agency is assigning card limits, what are the determinants for the dollar limits authorized on the card?

Are limits in part determined by the GS grade of the employee? Any information on how these limits are determined would be helpful.

In response to the first question, yes, individual employee name, addresses and phone numbers, etc., will be provided by the agency. Although the solicitation requires there are no pre-set limits on the accounts that are set up, agencies may elect to establish individual limits, and the determinants used for establishing these limits vary by agency and will be stated at the task order level.

At this time, I would like to turn the microphone over to Rosemarie Dunn, who is going to provide responses to the remainder of the questions. Thank you.

MS. DUNN: Good morning. We have three separate questions. For each business line, is the GSA requesting five case studies, three best practice innovation and three promising practice innovations?

Question: Please clarify how many projects must be covered by narrative description for each of the card solutions, that is purchase, travel, fleet, integrated.

Question: Are we to assume that the Government wants the three best and promising practices to include card technologies or do practices qualify as long as they relate to the improvement of procurement and/or payment function but do not necessarily rely on the use of card technologies to deliver the improvements?

Answer: Each business line requires the information requested in the solicitation. For example, for factor 1(a), past performance, the solicitation requires a detailed narrative description of five Government and/or corporate card projects, three best practices and three promising practices, as well as a host of other information as described in the solicitation.

The three best practices and three promising practices must be card oriented.

Risk mitigation measures. Question: Solicitation C.B. 15.1.1, should GSA elaborate on what is meant or could GSA elaborate on what is meant by specific risk mitigation measures as applicable to the cardholder agreement?

Answer: Risk mitigation measures are provided in Section C.B.20. This section is putting offerors on notice that more than one version of the cardholder agreement may be required.

Question: Reference, C.B.20.6. Please explain your specific definition of a contractor may not delimit its offer. This would appear in other places as well.

Answer: This simply means you cannot condition your offer to acceptance of a risk mitigation measure. For example, you cannot say I will only give you service if you include credit checks.

Question: C.B.20.1, late fees at the master contract level. By "late fees," does the Government mean a late fee of a fixed price per cycle, that the payment continues to be late, i.e., $20 per cycle, or is the contractor permitted to assess late fee interest, based on the outstanding balance which is past due or both?

Answer: The contractor may assess their standard commercial late fees as described in the solicitation.

Question: C.B.20, late fees. If the contractor may charge late fee interest per provision question, is the intent of this section to state that the interest must be calculated beginning from day 120 as the first day interest may be applied?

Answer: The late fee shall be calculated from 120 calendar days past the closing date on the statement of account on which the charge appeared and applied to the charge which is past due.

Question: C.B.20.7, pre-funded cards. Since stores' value cards are not widely commercially accepted by merchants, is an acceptable solution a centrally billed account assigned to the cardholder with authorized limits that may be charged at the POS if exceeded and a transaction authorization is necessary?

Answer: This will be answered in Amendment two. Question: C.B.20, split distribution. If split distribution is offered at the cardholder's discretion, is it truly an effective risk mitigation measure which could be offered as part of a productivity refund?

If some cardholders can elect to use it while others may refuse within one agency, we would find it difficult to apply an appropriate level of refund to the agency as a whole. Is it the Government's intent to use split distribution as a way to mitigate risk on the individually billed travel accounts?

Answer: This will be addressed in Amendment two.

Question: Risk mitigation measures. Would it be acceptable under the master contract to establish transaction parameters which when exceeded could mean that the card is being used fraudulently? If exceeded, would it be acceptable to place a temporary block on a card until the cardholder could be contacted?

Answer: Offerors should propose their commercial available risk mitigation measures.

Reporting. Question: Generic cards are subject to most other contract provisions and requirements. Does this imply that generic cards are to be included in the back end reports for such things as CPP programs, etc.?

Answer: At the task order level, the agency will identify whether they require reporting on generic cards.

Question: C.19.1(a), monthly audit reports is for all common carriers but the defined elements seem only to imply airline usage only. Is this intended or are other common carriers such as rail to be included?

Answer: GSA is researching this question and will provide information on our Web site.

Question: C.47.7.1, reports. Does "ad hoc" mean to provide the ability to create user defined reports based on the data fields defined in the section, monthly agency report and summary report, to the GSA Contracting Officer?

Answer: The solicitation requires ad hoc reporting on any and all data elements defined in C.47.7 and as defined at the task order level.

Question: Agency reporting requirements. Does the Government expect to be provided with the ad hoc reporting tools to create the ad hoc report and to run these reports against the data repository managed by the contractor?

Answer: The Government requires the ability to create ad hoc reports on any and all data elements defined in the solicitation. The methodology of accomplishing the requirements should be posed by the contractor.

Question: Statistical summary report for the fleet card program. Please provide further what is meant by total number of cards in inventory for the fleet card program. Please define further what is meant by the number of cards deleted for the fleet card program and please provide further number of cards removed from inventory for the fleet card program.

Answer: Total number of cards in inventory means the total number of agency cards in the reporting period. Number of cards deleted means the number of cards canceled during the reporting period. Amendment two will remove the number of cards deleted and the number of cards removed and replace it with number of cards canceled.

Question: Because the reports require intense development efforts by the contractor, the contractor would like to know if they could develop these reports from participating agencies/organizations upon request during the task order process, if they are requested.

Answer: No.

Question: In what media is each report in C.38.1 required and C.38.2?

Answer: A variety of media is required, e.g., electronics, paper, disks, magnetic tape, etc.

Question: Can the offeror offer and price some of the reports in C.47.7.1 and price some of the reports without having to offer or price all of them?

Answer: No. Offerors must provide the reports as described.

Question: Would GSA have any objections to a person classified as key personnel who is not an American citizen?

Answer: The key personnel clause in the master contract does not require U.S. Citizenship. However, at the task order level, agencies may have security requirements or other justifications to include a requirement for U.S. Citizenship, and that may exclude you from further consideration at the task order level.

Question: C.26.1(b), replacement of key personnel states that key personnel shall not be removed, replaced, without 15 calendar days' advance notification to the GSA Contracting Officer where possible.

Is it correct that the definition of personnel that fall under this provision will be those individuals to be listed in the offer/contract?

Answer: Key personnel are defined as project managers, task order managers and any other individuals designated as key personnel by agreement between the contractor and the Government.

Question: C.26.1 and 26.2, what are the required key personnel positions for this bid? Is there a minimum number of key personnel required? Can key personnel perform any other duties within the contractor's organization, other than activities under this contract? Can key personnel perform the duties of more than one position? That is can one person perform more than one position or category?

Answer: There is no minimum number of key personnel required. Key personnel must be dedicated personnel. Dedicated personnel means personnel that solely manage and administer Federal Government accounts under the master contract.

Question: Key personnel responsibilities, second paragraph. The contractor shall also designate alternates in the event of the absence of a primary designated point of contact. Are the alternates also key personnel that are therefore defined by Section C.26.1?

The answer is yes.

Question: Are support personnel allowed to be personnel of the subcontractor of the master contract holder?

The answer is yes. Under corporate experience, we have three separate questions and I will give you one answer. Please clarify the statement that the Government requires offerors to demonstrate two years of corporate experience in the business line proposed.

Question: This section states that the offerors who do not meet the minimum two year experience requirement will not be eligible for an award. Should this be interpreted to state that if an offeror has not had a fleet card program in place for at least two years, that the Government will not consider the offer for an award under the fleet card product line? Does this not severely restrict competition, particularly within a relatively new business line such as fleet?

Question: The section states that two years of experience is necessary in order to bid on a product line but further dates this is not required on an integrated solution. Is it still required to bid and meet the minimum requirements of a particular core product in order to bid an integrated solution, including that core product?

The answer, offerors must have two years of corporate experience in the business line proposed. If offering an integrated solution, the offeror still must have two years of corporate experience in the business line proposed, but not two years of integrated experience.

Quality assurance. Please clarify the requirements to annually assess A/OPCs, DBOs, TDO and EO agency/organization and/or user satisfaction with the card programs and contractor performance. Does this have to be an annual survey or can we conduct monthly surveys and provide an annual compilation of the monthly survey results?

Answer: The solicitation requires at a minimum, an annual assessment of client satisfaction of contractor performance in card program. Methodology of assessment is up to the contractor to propose.

Task orders. Start up implementation schedule. Will GSA provide samples of a standard task order and a tailored task order?

Answer: GSA will provide samples to agencies and organizations prior to implementation.

Question: Minimum lengths of initial task orders. The minimum length for the initial task order of any ordering agency is stated as two years. However, subsequent task orders by the same agency may be for only one year, even in cases where the awardee is another contractor. Start up costs are inherit in both the initial and subsequent task orders of any agency, since in each case the contractor is starting anew. However, the subsequent contractor would not be afforded the same level of program assurance as the first awardee as far as covering start up costs.

Why is the two year minimum not required on a subsequent task order to a different awardee?

Answer: An agency's first task order placed against the master contract, not a particular master contractor, will be a minimum of two years. The two year minimum isn't intended to address start up costs. It is intended to address agency transition from the current contractor.

Question: Minimum length of initial task orders and maximum lengths of initial task orders. Sections 36.7 and 36.8 provide initial task orders placed against the master contract to be a minimum of a two year period and a maximum of a five year period for both standard and tailored services. We note that the standard Form 1449 tier one requirement for pricing tables, tables 1, 2, 3, 4, 5 and 6, provide for extended total prices to be entered for a base period of a full five years. Do the minimum lengths of initial task order provisions of two years permit an ordering agency to afford itself the financial advantage of five year pricing but only obligate themselves to the contractor for services for a two year period?

Answer: An agency's first task order placed against the master contract, not a particular master contractor, will be a minimum of two years. The two year minimum isn't intended to address start up costs. It was intended to address agency transitions from the current contract. The pricing tables for the five year base year period with five one year options to renew.

Kick off conference. Question: Why would there be a cancellation of the kick off conference? Would this be coordinated on a timely basis?

Answer: A cancellation may occur in the event of bad weather or other unforeseen events.

Question: Performance work statement. Is the Government willing to entertain a mitigation task to the interoperable chip card environment? What is the Government doing to create common building access mechanisms? Are standards available?

Answer: As stated in the solicitation, the Government shares with the industry the vision to migrate to smart card systems and technology for the future. Various interagency working groups have been formed to talk about future technologies and ways to streamline and enhance the business operations and processes.

The Government is looking to industry to develop the standard platforms, operating rules, standards, et cetera.

Merchant acceptance. Is the Government willing to use its letterhead agency names, etc., to assist the Government in securing the support among suppliers for mitigation to level three transition information?

Answer: It is the contractor's responsibility to increase merchant acceptance and the level of data collection. Contractors are encouraged to ask agencies to assist them in this effort of the task order level.

Credit bureau. What are examples of other similar entities?

Answer: Other entities that perform similar functions as a credit bureau but are not called credit bureaus.

Oral presentations and demonstrations. Question: Does the use of pictures include photographs? Can gray scale clip art be used?

Question: Does the black and white specifications include use of gray scale?

The answer: Black and white graphics are permitted in charts, graphs and pictures.

Question: Does the eight line of bullets allow for sentence wraps?

Answer: No. There are no more than eight line bullets per slide.

We have three questions with one answer. Question: Can the company logo be placed in the upper left margin area? Question: Is the company logo required in the upper left corner?

Answer: The company name/logo must appear in the upper left corner.

Question: Can you elaborate on what is considered a layout device?

Answer: No other layout devices are allowed. For example, borders.

Question: Can sub-bullets be less than 18 points?

Answer: No.

Question: Are the headings, subheadings specifications maximum specifications?

Answer: These are exact specifications.

Question: Can the font size of the heading and/or subheading be reduced if content dictates?

Answer: No.

Question: Can the font size of the heading and/or subheading font be reduced?

Answer: No.

Question: Can the offeror specify or supply the size of the screen to be used during the oral presentation?

Answer: No.

MS. DUNN: Question: Can overhead layouts be used to demonstrate or clarify points?

Answer: No.

Question: Can presenter use color write on markers to highlight points on overheads?

Answer: No.

Question: Can presenters use microphones?

Answer: No.

Question: What kind of microphones will be provided for use by the presenters?

MS. DUNN: Answer: None that are for purposes of the presentation. We will have recording microphones for the video tape and transcript.

Question: Can the offeror provide microphones for use by the presenters?

Answer: No.

Question: Can electronic projection systems be used if offeror supplies the equipment?

Answer: No, Offerors shall use overhead transparencies for the oral presentation.

Question: Can large display boards be used to supplement presentation?

Answer: No.

Question: Can brand and model number of overhead projector to be used be specified to offerors?

Answer: No. The Government will use standard overhead projectors.

Question: Can the demonstration of the electronic access system be enlarged via a projection device for the benefit of readability by the Review Panel?

The answer, no. It's kind of the same answer.

Question: Evaluation of technical criteria, subpart 2(b), oral presentation, electronic capability demonstration. Will the GSA provide offerors a time frame window in which they anticipate scheduling vendor oral presentations and demonstrations, recognizing that specific dates cannot be established as yet? This is important to offerors to permit them to develop advanced planning and assuring availability of personnel who are critical to these efforts.

Answer: Scheduling will take place as soon as possible after solicitation closing. Offerors should be prepared to present beginning the first week of November and possibly through December.

Question: Format of presentation. Demonstration transparencies. Does the no accompanying notes mean that presenters are not permitted to have notes to refer to or does it mean they may be detailed notes on the presentation slides themselves?

Answer: No accompanying notes are to be included on the transparencies. Please note, no oral presentation, demonstration documentation will be accepted, other than that specified in the solicitation.

Question: Does the wording "not currently employed" mean that if such presenter/demonstrator were to present for the contractor, they will become employed by the contractor? Can an individual who is a subcontractor to the master contractor offer, present, demonstrate during the oral presentation and/or during the demonstration?

The answer: Key personnel cannot be subcontracted personnel.

Account number. Question: Section 23.2.2 states that the contractor shall provide a generic card using the contractor's commercial design showing no association with the Government. This shall include an account number, which is indistinguishable from non- Government personnel cards. Generic cards issued under this contract shall be subject to the terms and conditions of this contract except C.19, statement inserts, C.20, statement messages, etc.

The numbering scheme used by offerors are important to meeting the terms and conditions of this contract, the terms of billing, reporting, financial incentive, POS prompts, data capture, etc. If an account numbering scheme were to replicate personal cards, the terms of the contract could not be met.

Is it acceptable to use standard commercial card numbering schemes to make the account numbering distinguishable from non-Government personal cards?

Answer: The Government requires that the account number for truly generic cards be indistinguishable from the non-Government personal card. The methodology should be defined by the contractor.

Implementation. Start up implementation requirements. It would appear that all awards and presentation packages will be approved simultaneously in order for all contract awardees to be on a level playing field. Is this correct?

Answer: Awards will be approved at the same time. Presentation packages may not be approved at the same time, depending on the number and extent of revisions required. In order to provide a level playing field, the solicitation prohibits offerors and contractors from marketing their card programs to the Government from the time the solicitation closes until the conclusion of the master ceremony at GSA's kick-off conference.

Fair consideration. Question: The definition of this term covers situations where requirements for fair consideration do not apply in the task order placement process. If an ordering agency does not evaluate all master contract awardees, how would they be able to make the determination that any particular contractor would be the only one capable of providing the services as cited in subsection two?

Answer: The Federal Supply Service Improvement publication or the presentation packages will provide contractor information to agencies. The fair consideration exceptions are provided by regulation. If an exception applies, the ordering agency's contracting officer will provide a determination.

Travelers checks, convenience checks. Question: In subitem 15, a requirement is established for adequate and timely automation of travelers checks under the travel card program and convenience checks under the purchase card program. What does the GSA wish to see with regard to the automation of travelers checks and convenience checks?

Answer: Reference C.B.12 for requirements on contractor checks and reference C.C.11 for requirements on convenience checks.

Question: Within the purchase card program, is any historical data available on convenience check usage? For example, we would be interested in data such as how many agencies use convenience checks, average size of a check per agency, and the number of checks issued per agency. We also would like to understand the current process for verification of maker's signature on convenience checks as well as agencies willing to provide issuance information to reduce the amount of fraud exposure in instances where the convenience checks are issued centrally by an agency rather than used by individuals in the field.

The answer is no data is currently available on convenience checks.

Industrial funding fee, minimum sales refunds. Question: Additional commercial items, contract terms and conditions, industrial funding fee and evaluation of commercial items, tier one, price evaluation.

Is an appropriate interpretation of this section that the Government expects a six basis point rebate at a minimum and that a pricing proposal which charged, not rebated, for each dollar of transaction value, but still provided the GSA and agencies with the minimum rebate is unacceptable?

For example, suppose it were to be proposed that each dollar transacted through the travel card program was charged 25 basis points. The contractor would then rebate four basis points of industrial funding fee to the GSA and two basis points minimum rebate to the agency. The net cost to the Government as a whole would be 19 basis points per dollar of transaction.

Is this arrangement unacceptable for purposes of the pricing evaluation?

Answer: This is a no cost contract. The Government expects a six basis point refund.

Tax exempt status. Question: C.A.8 for the fleet card program, is the proper interpretation of this section that the contractor will invoice the Government net of taxes for transactions at merchants that participate in the Government's tax exemption program but may invoice the Government including taxes for transactions at merchants that do not participate? If yes, is it acceptable to use tax estimation tables which will estimate the taxes applied to the transactions in the case of non-participating merchants, if they do not provide actual tax amounts as part of the transaction?

If tax estimation tables are acceptable to the Government, will the Government look to the contractor for liability if these tax estimation tables contain an error and the Government is unable to recover a tax previously paid as a result?

Answer: No, that is not an accurate interpretation. Tax estimation tables are not acceptable. The contractor is responsible for developing and maintaining the tax exemption program. This includes merchant participation and working with the state government taxing authorities to ensure accurate tax data. There are commercial tax reporting services available that monitor and report changes in state tax laws.

Exemption at point of sale or after sale reimbursement is the decision of the individual state government. Accurate tax data is necessary for either situation.

Electronic commerce. Question: Related to EC support, does the Government envision EDI support for card program beyond EDI invoicing and payment processing on centrally billed accounts?

Answer: EC or EDI support is not limited to invoicing and payment processing. The Government is interested in moving from paper processors to electronic ones.

Value-added products and services. Question: C.47(a), inter/intra-Government services. To offer such services, would the card issuing bank also have to be the card acquiring bank? Can you provide examples which would fit each type of intra-Government purchase category described?

Answer: No. The solicitation states that if the contractor is not a merchant acquirer but would like to provide inter/intra-Government services, it would work with the merchant acquirer to provide services.

Spontaneous transaction examples may include supply purchases. Pre-negotiation transaction examples may include Government transportation services. A recurring transaction example may include utility payments.

Question: Please provide an example specific to fleet for inter/intra-Government services.

Answer: An example is one agency purchases fuel/fleet related products and services from another agency.

Question: C.47.4, debt card products and services. Is GSA contemplating debt and credit on the same card, on hybrid cards or simply a stand alone debt card? Does the Government envision the debt card attached to a Government agency funded demand deposit account at a financial institution or some other funding arrangement?

Answer: The Government is looking for a commercially available debit card.

Question: Please provide an example specific to fleet to electronic purchasing.

Answer: An example is when an agency purchases a fleet fuel related product over the Internet.

Question: Is electronic purchasing applicable to the fleet line of business?

Answer: Yes. Question: Liability, C.46, liability, centrally billed accounts. C.46.1 leads us to believe that the Government is not responsible for any unauthorized use which is defined to be someone other than an authorized cardholder. One conclusion from this wording would be that if the card is lost or stolen, the contractor is liable for the charges, even prior to the incident being reported to the contractor. C.46.1.1 says that the Government is not liable for charges on cards reported lost or stolen. Is the proper interpretation of this section that the Government is not liable for charges on lost or stolen cards, regardless of when the incident is reported to the contractor?

Answer: This will be answered in Amendment two. Delinquency control. C.B.16, delinquency control for travel card program. This section states that once cancellation and reporting requirements have been met and collection processes have been evaluated, the contractor may recover costs of collection process. From whom? Agency? Cardholder? If the answer is cardholder, is this an effective means of recovering costs, given the cardholder is already severely past due on the original charges?

Answer: From the individual cardholder, the Government is not liable for individually billed accounts.

Question: Delinquency control for travel card program. Will agencies provide updated addresses and phone numbers to be used for collection purposes when an employee moves?

Answer: This will be answered in Amendment two.

Question: Suspension and cancellation procedures. C.B. 17. Please provide mission related extenuating circumstances. How can a contractor be assured that good judgment will be used by the A/OPC, given that the contractor is still liable for ongoing charges that are unpaid? Can the contractor appeal to the GSA Contracting Officer if the contractor feels that the reasons for not suspending an account in a given situation do not meet the mission related definition?

Answer: The Agency will define what if any mission related extenuating circumstances exist. All matters under this contract can ultimately be appealed to the GSA Contracting Officer.

Question: C.B.18.2, cancellation procedures. This section states that cancellation procedures may begin if a cardholder is 120 days past due and the requirement of C.B.17 has been met. C.B.17 includes the discussion of the cardholder being past due twice in a 12 month period and being past due again. These sections appear to conflict.

If a cardholder is past due 120 days on the first occurrence, may the cancellation process begin?

Answer: The section does not conflict. C.B.17 includes a discussion of repeat suspensions. This provides some mitigation of risk to the contractor by allowing the contractor to begin cancellation procedures in those instances of repeat suspensions without going through the third suspension process.

Question: Instructions to offerors, Section 13.4(c) 1.1(a). In using the word "completion" for a past performance reference, did the GSA mean that the contract is terminated or that the implementation phase is over? If the answer to the above is terminated, if projects are not completed, then would you like a description of work done to date on the contract?

Answer: The solicitation requires offerors to provide the projects from start up to completion. Completion includes termination, end of contract period, et cetera. If the work is ongoing, so note.

You all did say you're friendly, right? Extension of closing date.

Question: Can the closing date be extended 30 days?

Answer: No. At this time, Becky Koses will go over some additional questions. I'm sorry. We are going to take a ten minute break.

(Recess)

MS. McIVER: Could we all sit down, please?

Thank you. We are going to go ahead and get started again. You guys are the troopers.

We still have a few more questions that were submitted prior to this meeting as well as the questions that have come in during this meeting to go over. I just want to give you guys a head up that the Q&As will be on our Web site hopefully by the end of this week or early next week. We will also be posting the amendment that we have mentioned as well as the transcript and a list of attendees to this meeting will be posted there as well.

I wanted to give you a heads up that future questions that may come in, we will also be posting those electronically on our Web site. We want to let everybody to know to check our Web site periodically.

We will continue until we have answered all questions that we have or any that continue to be submitted today, but if some of your guys have planes to catch or whatever, we understand. It's a fairly long meeting and you may have other commitments that you need to attend to. If that's the case, the information will be on our Web site and you can have access to it later.

I think Becky is going to do this part sitting down.

MS. KOSES: Are GTRs still accessible for payment on GSA's City Pair program? Yes, for the time being. This may change in the future.

If the minimum refund of six basis points is offered, four basis points for the industrial funding fee, two basis points for the agency, and a negative net refund is due to an agency's performance issue which exceeds six basis points, is the contractor still required to provide the industrial funding fee to GSA or does this become an agency requirement? If yes, does the industrial funding fee get added to the total negative net refund of the agency?

Yes, the contractor is still required to provide the industrial funding fee to GSA. Part of the static calculation is already built into the formula, thus the IFF would not get added to the total negative net refund of the agency.

Please further define expectations surrounding requested integrated card systems.

In the paragraph, these integrated services will be supported by commercial solutions. The document clearly defines "integrated services and solutions" as more related to functional consolidation at the Government level with the efficiencies realized from new and improved business processes from provider's technology solutions versus one card platforms.

This seems to conflict with C.36.22's example four. To deliver on your requirement for an integrated solution, please describe in detail how you define the integrated process.

The actual integrated solution should be defined by the offeror. The Government is looking for front end integration which includes at a minimum account set up, maintenance and customer service, and back end integration to include at a minimum, reconciliation reporting and invoicing.

I don't understand what the conflict with the example is, the example that is referenced deals with the integrated solution is not fair and reasonable for price. At a later point in time, if the drafter of the question would clarify that, I'd be happy to answer it.

Level three data. Please discuss the importance of Level three data at the micro level on the unit of measure discount amount, order number, unit cost, et cetera. One assumes all Government endorsed suppliers are EDI/EC capable to accomplish this requirement.

Please explain the readiness of the GSA endorsed suppliers and the capabilities of each supplier to embrace Level three with EDI line item details or EC with open buying over the Internet.

With all due respect, a provider who is capable of and is providing Level three details today, but the supplier is not technologically prepared in many cases.

Please describe the business plan the GSA/Government has with respect to supplier consolidation rationalization for those not capable of delivering on the technology data requirements as described.

This will be answered in Amendment two. A question concerning statement inserts, statement messaging. The solicitation requirements say it needs to go into active cardholder statements of account. Does the word "active" refer to only those cardholders who have activity for the current month, regardless of the status of the account?

"Active" does refer to cardholders who have charge activity for the current month.

The RFP requests the ability to include statement inserts and messages on both electronic and paper statements. If EDI is used for electronic statements, the standard format does not accommodate free form text of this nature. Are you referring to Internet messaging or some other electronic form of messaging?

EDI transaction sets are currently in the process of being defined for card transactions. The requirement for electronic insert messaging refers to all electronic forms.

Is the integrated solution card design the only design that we can use for smart cards? We have received feedback through forums that agencies are interested in considering having integrated circuit cards built into their respective card design.

The integrated solution card design is the only card design allowed to be used for an integrated fleet travel and purchase card solution. Smart card applications can be on the other cards.

This deals with card design and embossing. As bidders will be reliant on the card design contractor to successfully execute the GSA's card design and embossing requirements, please provide information that will provide insight into the card design contractors selected by GSA and the GSA Contracting Office.

Specifically, please identify the card design contractor and respective qualifications and background to successfully work with card issuers. Additionally, do the card design contractors have experience in fraud control and ISO standards for card design?

Outline the GSA card design contractor selection process and methodologies and outline the compensation methodology used by GSA to provide consideration of card design contractors.

To answer the first part of this question, offerors in the competitive range will be provided information on the GSA selected card designer. The other one we can address in Amendment two.

This is also for card design. The Government reserves the right to add other card designs during the contract period. Will the other card designs added during the contract period replace one of the existing four card designs?

It's not anticipated but it could be possible. Generic cards are required to be indistinguishable from cards issued to non-Government personnel, including numbering schemes that are not unique to the Government. The result is that spending from such cards and other data such as delinquency information will not be reflected in the reports provided to the Government. We recommend that GSA exempt generic cards from all reporting requirements for non- generic Government cards.

The Agency at the task level order level will be defining any reporting requirements for the generic cards.

Key personnel. Where a contractor's proposal reflects a teaming arrangement in which portions of a service may be carried out by a subcontractor as a team member, it may be appropriate to designate an employee of that subcontractor as key personnel for that service. Can the solicitation be modified to permit designation of subcontractor personnel as key personnel in certain circumstances? No.

Year 2000 compliance. The Year 2000 compliance is required of each provider and each will submit necessary documentation identifying the factor. Please outline and submit by mandatory participating agencies the same information. This mutual compliance is critical to ensure appropriate processing/accounting integration and reporting. It is imperative that this information be received prior to the bid deadline.

No agency Year 2000 information will be provided. Agencies are required by law to ensure that their systems are Year 2000 compliant.

Authorization control. The GSA lists transactions per day limits and transactions per month limits as examples of standard authorization control. While appropriate for the purchase card program, implementation of these specific controls for the travel program would cause customer dissatisfaction and acceptance degradation at the point of sale.

Please confirm that transactions per day limits and transactions per month limits are examples only and are not authorization control requirements for the travel card program.

It is not standard commercial practice for travel card products to use authorization limits at a preferred prior level. Please clarify if the requirement applies to both purchase card and travel card.

The examples in the solicitation are just that. They are examples. Offerors should be proposing what authorization controls they are offering.

Programmable transaction data. Is edit account allocation manually as needed and spread transaction amounts into subunits for multi-account allocation referring only to data that is already reported and billed and therefore internal to the agency system?

The second question is the 64 digit accounting string unique at the transaction level? Is the accounting string applied to data that is already reported and billed?

We will be researching these questions and providing answers in Amendment two.

Please confirm that when forms such as cardholder applications are sent electronically that hard copy signatures are not required. Otherwise, to require verified hard copy signatures creates an unnecessary burden to offerors and will decrease the economic value to the Government.

As described in the solicitation, hard copies of the travel card over application will be provided to the contractor.

This was an issue that was raised in the various drafts, brought up concerns about, well, do we actually need the actual signature. That's why it's stated in the final solicitation.

Transaction data elements. Merchant data K & L state that 1099 and 1057 data elements are required for fleet and purchase cards only. Section C.38.2 includes 1099 and 1057 reporting and does not specify they are for any particular product line. C.B.13, agency report requirements for the travel card program states in addition to C.38, this implies inclusion of the 1099 and 1057 reports to the travel card program.

Please provide clarification that the reports in C.38.2(g) and (h), the 1099 and 1057 reports, are only required for fleet and purchase card products and not travel.

That is correct. In Section C.38, it does request standard commercial reports unless otherwise designated.

Prompt Payment Act. The contractor is required to bill Prompt Payment Act interest charges as a separate line item. This requirement should be eliminated as agencies are required to self assess Prompt Payment Act interest. This contradicts the requirement for Government entities to self assess, according to OMB Circular A-125.

The requirement will remain unchanged. Suspension of centrally billed account. If a charge is disputed, will the time it takes to resolve the dispute be included in the time frame a contractor has to initiate suspension procedures?

For example, if a charge is disputed at day 60 and is not resolved by day 180 or is re-disputed, what recourse does the contractor have?

We suggest that the requirement to limit contractor's ability to initiate suspension after a certain time frame be extended to three 60 days or be eliminated.

We will research this question and get back with you.

If centrally billed cards assigned to individuals are issued, which suspension procedures apply, those for centrally billed accounts or those for individually billed accounts?

If centrally billed accounts assigned to individuals are issued, the contractor would follow centrally billed accounts suspension procedures.

Cancellation procedures. The example provided is based on 15 months. To clarify, is this requirement that an account has been suspended three times within a 12 month rolling period may be canceled?

No. If the account has been suspended two times during a 12 month period and is past due again, the account can be canceled.

1057 reports. Please clarify if the Government is requiring NAICS in place of the SIC code, as indicated as the primary pointer to data stored on the DUNs number. The DUNs number was selected by the Government as the standard of preparation for EC because of its universal use in industry and Government, nationally and internationally, for cross referencing to other numbering systems.

The DUNs number, of course, replaces MCC coding seen as a more robust, accurate and flexible cross reference.

Please comment on the value preference for the DUNs number in lieu of the MCC/SIC.

We will research this and get back to you. Contracting Officer report. The requirement states hard copies or other electronic medium may be required for some reports as specified at no additional costs. Within the individual report descriptions for the GSA Contracting Officer report, no hard copies have been requested. Please confirm that GSA's reports are required in a data file format only.

If hard copies are required, we will specify they are required during the contract period.

Customized services. In light of the absence of competition at the task order stage, what constitutes a matter within the scope of the contract should not be left for negotiation between the Contracting Office and the card issuer contractor?

We recommend this section be brought in line with C.47, value-added products and services, which requires that all potential services to be offered at the task order level be disclosed at master awards level.

Offerors should identify what customized services are offered at the master contract level.

Please clarify whether contractors that provide customized services under the GSA master contract must be selected by an agency through the task order process. If not, is the value to a contractor of a task order award largely diminished by the fact that an agency can in essence ignore the task order relationship and contract with other vendors for customized services on an ad hoc basis?

Furthermore, is the value of the master contract to the GSA diminished if agencies can migrate in and out of the contract task order process?

It is unclear how GSA will enforce those agencies that do not contract for customized services at the core task order level with the contractor for products and/or services that are a substantial modification or change to an agency's core task order, stay within the scope of the master contract. Please clarify.

The agencies' task order will specify whether and what customized services are required.

Agency/organization transition. GSA dropped Government from assisting contractor with reconciliation. Please add the word "Government" into this sentence.

If the Government is not required to assist the contractor, it will reduce the economic value to the Government. No change will be made.

Liabilities. Does the Government intend to be liable for charges on a purchasing card by an individual other than the cardholder as long as the Government has benefited?

We are researching this and we will get back with you.

Agencies can request additional products and services to be priced at the tailored task order level and these products and services are accepted by the agencies, do those products and services become a part of the master contract?

In order to propose value-added products and services, you have to also at the master contract level. You can't just offer them at task order level.

For value-added products and services, this deals with software. Does the solicitation now cover military on base fueling?

It does but it's included underneath inter- intra governmental services, which is C.47.7.

Account number for the travel card program, what are the anticipated number of accounts for city pair, non-city pair?

This information is unknown. The agencies' task order will provide city pair information.

Cancellation of individually billed accounts. Declarations of bankruptcy by Government cardholders are not infrequent. Card companies are required by law to stop billing and Dunning cardholders who have filed for personal bankruptcy. Are contractors permitted to cancel accounts of travel cardholders who have filed for bankruptcy?

We will research this and get back with you. Standard industry practice is to pay for the purchasing card monthly billing amount in full and perform reconciliation activities after payment is made. Do you plan to adhere to this practice?

Practices vary by agencies. There are some agencies that do this practice and some that don't. There isn't an across the board answer.

The GSA advantage link is an effective tool that will enhance and grow in popularity over the short term. Considering that the commercial sector today and probably the Government currently performs over 85 percent of all transactions electronically, by fax on demand or by phone, where a card is never used in person or over the counter, where is the value-added with the investment of all providers to produce various customized card designs?

Would it be possible to produce customization specifically at the task levels where the counter transactions are prevalent?

I'm not sure I understand this question, but if that's what I think it's asking, the Government is providing the card design. The card design is an important control mechanism for the Government. We will be making no change to this.

If you are talking about customization at the task order level for inclusion of perhaps a photo i.d., those items would be listed down at the task order level.

Does the Government want office limits refreshed at different time periods? Quarterly or other basis, with individual cardholders' limits within that office?

If the drafter could please clarify the question, I'll be happy to answer it. I'm not sure what you mean by "refreshed."

Authorization controls for the purchase card program. Please provide more detail around the restrictions for telecommunication charges for the purchase card product.

There are already contracts in place to provide for these services.

Please explain the transaction and requirement of the 64 digit alpha master code. How is the string alpha used today, accounting, purchasing, other?

We are researching this question and we will get back with you.

This deals with FOB destination. Please clarify the term "contractor" meaning supplier in this instance, where responsibilities A through C refer to commercial suppliers of goods to the Government and not the card provider. This statement of responsibility is unclear.

The contractor here means the card contractor, when you are supplying cards, any software, any product that you will be delivering.

Should the GSA charge an industrial funding fee on the city pair program as well as the card contract, there is concern that the solicitation would be subject to a sustainable protest by one or more agencies if served and that the administration of both programs is commingled. Please clarify.

The industrial funding fee collected and remitted under the travel card program will include expenses for both the travel card and the city pair program. This decision has the concurrence of chief financial officers across the Government.

Electronic commerce. Please supply a listing if different from the RFP of all suppliers on the GSA advantage link.

We will research that. Please provide a listing of mandatory agencies which will be participating in the GSA pool for the task order process.

Exhibit 5, which includes the mandatory users, will be updated as additional information is known.

If an agency has elected to be a mandatory user of one ore more core business lines, does GSA consider the agency a mandatory user of all products included in the solicitation? What will GSA do re the agencies who are not listed as mandatory users because they missed the deadline for responding to GSA? Will there be additional mandatory users before the due date?

In answer to the first question, whether or not GSA considers a mandatory user for all products, no. Mandatory users have committed to one or more components of a business line, what they are committing to is the core and the component of the core, not the value-added products and services, and as additional mandatory users are known and prior to solicitation closing, Exhibit 5 will be revised.

Please clarify how the bidders will be given an opportunity to review past performance data submitted by agencies as part of the bid process. This is contained in Part 15 of the FAR. We will get you the cite with the amendment.

These are questions on instructions to the offerors. We assume if the bidder only bids an integrated proposal, they still must adhere to the same reference requirements placed upon bidders that offer each separate business line and one or more integrated solution.

For example, we assume an integrated proposal for travel, purchase and fleet will require 99 references for each product. Please confirm our understanding.

I think we answered that already. Oral presentation and technical demonstration.

We assume the Government will permit bidders themselves to video tape or audio tape the oral presentations and technical demonstrations at their own expense, over and above what record the Government creates. If this is not the case, please be specific on the Government's time frame to make available to the bidder a copy of the transcript and/or video of the orals and demonstration.

While offerors are required to provide overheads of the orals and demos in advance, the actual presentation, questions and answers that take place at the conference constitute part of the proposal. As such, the bidder is at a substantial disadvantage in not having immediate access to a record of this proceeding.

Offerors may not video tape the oral presentation or demonstration or audio it either. GSA will make available a copy of the transcript or video within a short time after the presentation. We are unable to give you specific time frames at this time.

The paragraph reads for the purchase card, minimum merchant acceptance is not specific to any one number but is required both domestically and internationally at locations that maximize the Government's ability to purchase goods and services while providing the greatest convenience to the cardholder. The Government will use its historical record of account purchases at the stated merchant groups and/or merchants as a guide to determine acceptable merchant acceptance.

One hundred percent of the merchants listed in Exhibit 15 must accept the offeror's card product.

One of the bank card associations has employed a merchant recruitment practice of seeking out vendors to accept their respective association's bank cards to the exclusion of other cards. Vendors are paid significant consideration or receive it to not accept other cards for a specified period of time.

Given this practice, we believe that the requirement that 100 percent of the merchants listed in Exhibit 15 must accept the offeror's card product is harmful to the goals that GSA outlined when this procurement process started last year. It's anti-competitive, arbitrary and capricious.

We suggest that the sentence quoted above be deleted in its entirety and at a minimum, that the GSA rate this requirement on a percentage of acceptance basis. For example, X percent of merchant acceptance is acceptable.

No change will be made at this time. References. There are significant differences in the underlying economics of the three card programs, travel, purchasing and fleet. Most notable is the significantly higher charge volume per card, typically with the purchase card.

For example, we have an one card purchasing program in place which generates annual sales of X. We have a purchase card customer with approximately X cards in force and approximately X million in sales. As a result of the distinct and economical meaningful differences between the purchase card program and the travel card program, we recommend that GSA replace the number of card based customer stratification with card volume based customer stratification.

We further recommend using particular dollar volume break points.

No change will be made. References. Is the Federal Government considered to be one agency or multiple agencies under the current purchase, fleet and travel card contract, as it relates to references; i.e., is the Federal Government one reference or can each agency bureau be a reference?

The Federal Government would be one contract reference. You could have multiple references within that contract to meet the 99 required.

This question keeps popping up. Are you all clear on this, on the 99 references?

You need to submit us 99 references, people's names from at least 24 different contracts. That means 24 different clients you provide card programs to. It does not mean 99 different companies that you provide card programs to, but 24. You need 99 reference names that are broken out into small, medium and large, so you will have eight from small, eight from medium, eight from large. Twenty-four contracts or 24 companies.

Is that clear? Still not clear. I'm sorry?

AUDIENCE SPEAKER: ÄÄÄÄ?

MS. KOSES: Who do you have a corporate card program with? That's the client. It's the company or your contract, those 24 separate companies or 24 separate contracts.

In amendment two, we will try to make this more clear. I still see some people that aren't getting it.

This is on Volume 4 pricing. The RFP contains the price adjustment for incomplete, not current or inaccurate information other than cost or pricing data clauses at GSAR 552.215.72. It is not clear that this clause is appropriate under FAR 12.301, which limits clauses in acquisitions of commercial items to those required by law or executive order or those determined to be consistent with customary commercial practice.

Please delete this clause. There will be no change. The relative importance of price in the award decision is confusing and appears to have been reduced from the draft RFP. Please clarify the importance of price in the award decision.

This goes to what we were talking about, what "advantageous" means as a product service or price advantage.

The RFP provides no clear understanding of the payment due date. Second, while a reconciliation process is understood, it is not clear how this would affect the payment due date. This is a crucial concern since an offeror's expectation of speed of payment will be a significant factor in offering basis points. It is recommended that the RFP provide a clear understanding that the payment due date will be the 30th day after an invoice is first received by the designated billing office. Otherwise, the economics of the card program will present significant unknown risks and potential for significant financial loss.

The Prompt Payment Act is included in the solicitation and the time frames are as specified in the Act.

It is not clear how the pricing tables are to be completed under the various business lines and integrated solutions. For example, it is not clear which contract line item number is to be filled in when proposing an integrated solution of two or more business lines.

It is assumed that the integrated solution plan is not completed when offering separate business lines.

Further, the evaluated quantities for the integrated solutions are confusing. For example, is an integrated solution for all three business lines supposed to be based on the sum of the evaluated quantities for all three business lines?

It is recommended that GSA provide further guidance and examples of which CLINs are to be used under varying circumstances and what quantities will be used for evaluation purposes.

It is not clear how customized services programmers are utilized in tier one price evaluation. The tier one price evaluation states total charges for core services will be subtracted from the basis points refund. It is recommended that GSA specify whether customized services is a core service and if the charge for customer services will also be subtracted from the basis point refund.

Yes, it will. There appears to be an inconsistency in the description of the evaluated quantities for convenience checks, travelers checks and ATM access in tables three and five, and the tier one price evaluation formula.

Table three and five contain dollar amounts for convenience checks, travelers checks and ATM access. The Tier one price evaluation formulas refer to quantity of checks and quantity of ATMs.

It is recommended that GSA provide further guidance on the unit of measure in tables three and five and the unit of measure in the tier one price evaluation formulas.

We will research this and include that in Amendment one.

Going back up to the first one, if you are not offering an integrated solution, you don't fill out the contract line item number.

Fly America Act prohibition. Please explain how the Fly America Act prohibition applies to these programs.

GSA is researching that. Exhibit 4, historic program data for the purchase card program. As currently provided under the travel card program, please provide dollar and account aging distribution by age of delinquency for the purchase card program.

All available information was already included in the exhibits.

Mandatory users. Under anticipated task order placement, it indicates either one per agency or is blank. If blank, does that mean unknown or more than one? If more than one, is there an estimated number? Please clarify.

Blank for today means unknown. We haven't heard from all the agencies yes.

Exhibit 15. The purchasing card merchant lists, domestic and international, provided by the Government, are missing critical data. Abbreviations are often used and no street addresses are provided. Phone numbers are occasionally provided. International locations do not have a city listed, only a country.

This makes it difficult for the contractor to pinpoint the exact merchant prospecting question and to match the vendor against our databases.

We will research this and get back with you in the amendment.

We need to know if the suppliers on the Government priority list that appear to only be suppliers to the Government, therefore would sign automatically when we would win the bid? Also, can we obtain transaction per suppliers or transaction size for the non-acceptors on the Government priority list?

I'm not sure I understand the question. If you will clarify it and let me know, I'll be happy to answer.

Thank you for providing a profile on historical spending and aging within the existing purchase card program. One must assume this amount of funds is delinquent, due only to disputed charges. Please clarify the reasons for an average 56 receivable days and the current process to reconcile and settle these disputes.

We will research this. If we can provide additional information, we will.

How can a new contractor test the Government reconciliation system to ensure a seamless transaction if no cards can run live before November 30? In order to assure the process is glitch free, one billing cycle needs to be completed or simulated by the agency/organization reconciliation process. Will the Government allow transactions to be made and then regressed to test functionality and similarly, will the Government allow transactions to be made prior to November 30, 1998 for the purpose of testing tax exempt processing and vendors? Non-Government personnel cannot use cards with tax exempt status.

You can use dummy cards to test the system. They don't need to be live cards.

Please clarify evaluation criteria, subfactor 2(c), paragraph 15, automation of travelers checks and automation of convenience criteria. Does this refer to reporting or issuance?

We are looking here to automate the travelers checks and convenience checks program as defined in the solicitation.

Does the term "Government" as used in C.46 include Indian Tribes? Yes.

Please clarify composition and floor ceiling of the industrial funding fee. The industrial funding fee is comprised of our procurement and administrative costs.

Will a separate master contract be awarded to each successful offeror for each business line? Please discuss.

No. You will have one master contract with multiple line items.

Please clarify the organizational conflict of interest clause, 52 214-4, paragraph 27. It is basically saying if you have a conflict of interest, you need to let us know.

These next two questions jump back, I believe, to the comments. They were referencing question 313 and 309.

Please provide clarification on whether requirements in C.34.61, which is the program and transaction data requirements, refer to the purchase of travelers checks or purchases made with travelers checks. It is purchases of travelers checks.

309 says it is extremely difficult to get accurate report data from a purchase made with a travelers check. Again, we are not looking for the purchases made with the travelers check.

Please clarify submission of proposal. While the RFP does specify page counts for integrated solution proposals, is the integrated solution an additional set of four volumes separated into business lines of four volumes?

Amendment two will address this. In the RFP where it gives a percentage breakdown, performance, subfactor 1(b), corporate experience, number one, please clarify this evaluation criteria.

In this section, it is either 80,000 merchant locations or 100 percent of the stations listed in Exhibit 13.

If an offeror needs 100 percent of the stations in Exhibit 13, can you provide a listing of those stations which are not specifically named?

The information is needed in order for the offeror to determine compliance.

Minimum merchant acceptance for the fleet part is 80,000, 100 percent of the merchants listed in the exhibit must provide full data captures defined in the solicitation.

Erika, am I correct in saying the single site merchants, if you took those out and the aviation, you would still have 80,000 of what's there?

MS. ALBRIGHT: (Nodding)

MS. KOSES: You do have 80,000 without the single site merchants and the aviation.

If a merchant location refuses to accept any fleet card payments, will that location be excluded from the evaluation criteria?

The merchant locations in the exhibits do accept the fleet card payment.

Please explain the meaning of other fee generating products and services by giving an example and showing how they would be included in the calculation of net charge volume.

We addressed this in the initial walk through the solicitation. Fee generating products are for anything that you offer underneath the core services, the travelers checks, the ATM, convenience checks and the value-added products and services as well.

For example, if an agency bought $100 worth of travelers checks, that would be included in the refund calculations.

If the industrial funding fee is assessed against all agencies for all products and services under the card program, then shouldn't the agency net refund be more negative due to the industrial funding fee rather than less negative in the example that's shown in the solicitation?

No. These are static formulas already in consideration.

Monthly audit report. Item one, account number, shows a total of 15 characters. The industry standard for credit card account number length is 16.

We will check with our audit folks and get back to you during the amendment.

This is a summary, ATM/travelers checks report. Fields nine and ten of this report are identified as monthly travelers checks' volumes and transactions. Is this referring to travelers' checks purchased or cleared?

Again, it's purchased. There are two areas in the solicitation that conflict. One area indicates you need ten months, that the agencies need ten months to transition and the other section says nine months. Could you please clarify it?

Amendment two will change it to nine months. Post-contract requirements. Unless otherwise specified, the requirement for the contractor to perform work after the expiration date of the master contract or delivery or task order shall not exceed 180 calendar days or until final conclusion of the activity, whichever is sooner.

Please clarify the definition of master contract or delivery or task order.

The master contract is what GSA awards you. The delivery or task order is what the agencies awards to you.

Security requirements. The contractor's security requirements shall be incorporated into any resultant contract. However, in the evaluation of commercial items, it says a written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in that offer, shall result in a binding contract without further action by either party.

How would these requirements be incorporated? Through the actual award document.

Electronic access to program or transaction data. The contractor at its own expense shall also provide any associated software and communication connection required to allow each requesting agency/organization to connect with the system.

Please define communication connection. Anything that it takes to get the agency to hook into your electronic access. This is for form of technical and price proposals. Subsection (f) states if offering each separate business line and one or more integrated solutions, the offeror will submit proposals on each business line and a separate proposal for the integrated solution.

If offering an integrated solution for three business lines, could an agency at the task order level select one of the three possible two way integrated solutions that would be a subset of the three way solution? Huh?

You don't have to buy all three. The agency will define what they require at the task order level.

Past performance. If offering an integrated solution, is the offeror to provide a detailed narrative description of five products for each business line included in the integrated solution, plus descriptions of five integrated projects?

Along the same lines regarding best practices and promising practices, if offering an integrated solution, are three best practices and three promising practices required for each business line included in the integrated solution plus three best and three promising related to the integrated application?

Yes. Amendment two will clarify that. These are handwritten, so if I botch these, you can let me know at a later time and I can make sure to clarify the question.

Does allowable billing cycle mean, for example, alternate months as in January and March, May/July, et cetera, or does it mean an alternative billing cycle to that selected by a part of the agency, i.e., some monthly, some daily? The latter. Some monthly, some daily.

Will the demo be conducted with the entire source selection evaluation board clustered around a computer screen, or will the demo be projected onto a larger screen or oversized screen?

Obviously, we are missing some terms of art here. We are not going to cluster around a little laptop. We are going to provide you a wall and a screen. You are going to provide the necessary equipment and Amendment two will address that.

When travelers checks -- it would be cozy, though. Take showers. When travelers checks as Government checks when we want to move to paperless transactions, credit cards, can cards be used for instant cash?

I think we are asking why are we having travelers checks and convenience checks when we want to move to paperless transactions. If that's the question, we are not to paperless transactions yet. We need another payment mechanism.

Regarding sales refund, clarify six basis points. RFP is ambiguous. Some references in RFP to a minimum of six basis points. Other reference to only six basis points.

We are asking for a minimum of six basis points.

Is ICA/BIN sufficient differentiation for the Government account number structure? The RFP states that each agency shall have an unique account number. If it complies with the Government's requirements, that would be acceptable.

GSA reserves the right to increase up to six basis points or decrease the industrial funding fee. Will this allow the contractor to increase or decrease sales refunds?

The increase or decrease of the industrial funding fee to GSA would impact the refund to the using agencies, not to the contractor's pricing. Your pricing should include six basis points.

Please clarify the number of people from bidder that are permitted to participate/attend the demonstration.

Again, five key personnel members, one senior management representative, one attorney or accountant, for a total of seven.

Is award of an individual business line that is offered with an integrated proposal dependent on the award of the integrated solution for master contract purposes?

No, but your offer has to indicate that you want to be considered for the separate business lines.

Does the lack of five projects or lack of requisite small, medium, large sized references eliminate us from bidding? Yes.

Once proposals are received, will GSA publish a list of companies that submitted proposals? No.

When we award contracts, you will know who the contracts were awarded to.

Since offers, if accepted, become contracts, we have been proceeding from the assumption that a narrative proposal covering the oral and demonstration is also required; is this correct? No.

This is inter/intra-governmental services. If the Government is going to propose a standard settlement mechanism as referred to in your document, which includes the reimbursement that an issuer will receive for the use of its card in an inter/intra transaction, please comment on the feasibility as acting bidders for an inter/intra department per transaction fee on the pricing chart at the time of the bid. That appears to be inconsistent.

If the Government provides a standard settlement mechanism, the contractors will have little cost. They will be acting basically as processors.

Can you elaborate in more detail on what the standard settlement mechanism is?

There are several mechanisms operating across several agencies in the Government. The Department of Treasury, the Department of Defense and GSA are examining and defining settlement processes.

Evaluation criteria and submission of proposal sections have the same but conflicting information. How will you correct this?

You will need to be a little bit more specific and tell me what conflicts.

The 99 references again. In past performance, you are asking for 99 clients. Please define "client." Is it cardholders? No. It is people who work for the firm. It is the actual firm, the companies. Advances in state-of-the-art. How will GSA amend the master contract to include services made possible in advances in state-of-the-art? Will all companies on the master contract then be able to offer the new services? Value-added products and services do need to include emerging technologies.

Regarding instructions. If we are proposing an integrated system, should we provide an additional five references with such integration or should the five references focus on integrated accounts.

You need to comply with the solicitation. The amendment will make that clear.

The 99 references again. We were mainly confused on the number of references required. It was stated today that 99 references are required for each product line proposed. If we were to bid a total integrated solution, does this mean we must provide 99 references for fleet and 99 for travel, for purchasing and for integration, totaling 396 references?

Amendment two will clarify this. Evaluation factors are outlined -- will the multiple awards be ranked by score? It's a combination of that and end points.

Does a provider need to provide the communication lines used to dial into the provider's system? We have answered that already.

Provide an example of multiple billing cycles. We did that.

Modifying services post-award. Many software programs such as access and control that do not now use smart cards could be modified if there's a market for smart card use. Can services based on such software be proposed as value-added services even though they would need to be modified to the hybrid, i.e., smart card? Yes.

Tailored task orders. If offeror A has value- added services and no other offeror has it, will A retain the exclusive right to offer service over the life of the contract? If not, explain what GSA intends.

If you are the only one that has it, no one else can come in and offer it, through the emerging technology, yes, but for example, if you are offering photo i.d. and you are the only one offering photo i.d., someone else can't come in later and offer photo i.d.

In the interest clause, FAR 52 237.17, reference is made to something credits under 26 USC 1481. This is the re-negotiation of contract statutes that has been something -- please clarify. I think it's repeal. If it's repealed, we will check it out and let you know the amendment.

Is it GSA's intent to issue one master contract or with one contract number or multi-master contracts with multi-contract numbers? One master contract for each vendor.

Will a list of the attendees of this meeting be made available either on the Web site or elsewhere? Yes, it will be available on the Web.

Is the mandatory/non-mandatory list of agencies final? No, it is not. Agencies are still coming in with their indications. There will be updates. The updates will be provided in future amendments.

Where was the list of vendors for Exhibits 13, and 15 taken from? Specifically, are they from the current cards or all Government vendors? These are cards only, card information only, not all Government vendors.

If dedicated means that key personnel will be solely dedicated to the Government, does this mean these resources must be fully dedicated to this master contract or may they provide support to other Government contracts as well?

The solicitation indicates that it is for this master contract.

On the pricing proposal, does double spacing apply to the tables? No, it does not. The tables are provided for that reason.

At the time of the presentation, is it mandatory that the key personnel presenting have management responsibility for the Government only or can they have bridged responsibilities for Government and commercial?

That's fine but upon award, the personnel must be dedicated.

By allowing the associations to file their operating rules on behalf of their members, it creates an unequal non-level playing field for Diners, American Express and Discover cards and similar entities.

Since the banks won't have to do this work, whereas others will, will the Government please reconsider this position since this appears to conflict with grounds for a protest?

We will consider this. How would GSA handle the monitoring and

enforcement of small and disadvantaged business subcontracting rules in accordance with FAR 52 219.9? Will small business utilization be a key factor in the award decision?

We will be monitoring and enforcing small and disadvantaged business subcontracting rules in accordance with our FAR requirements. Small business utilization is not a factor in the award decision. A small business outreach programs will be factored to the merchant acceptance work.

Credit reporting and actions. The only thing I'm able to read here, it has something to do with Indian Tribes. If the person who wrote this would re- write it and print it, I'd be happy to answer.

If offering an integrated solution, must the offeror provide five projects or project narratives, three best practices? Yes, we did that.

For the top ten customers, what is GSA's definition of top sales volume, transaction and purchase dollar volumes as requested? What period of time do these volumes represent?

We will address that in Amendment two. Will any reports beyond commercially available

reports be required to win a master contract? Agency reporting requirements do have essential reports. They will need to be provided.

Automation of travelers checks and convenience checks, we are automating the ordering of the checks, not the tracking of the transactions.

Does GSA expect that all agency organizations will transition on November 30, 1998? We do have a staggered schedule. It's included in the solicitation. That's what the nine months is for.

The actual card uses won't occur until the current contracts expire.

These next two questions deal with risk mitigation measures. Will late fees be incorporated into the pricing evaluation criteria and if so, how?

Let's think about that. We will get back to you in the amendment.

Travel card program, may an offeror propose as value-added, individually billed cards where liability for payment rests with the agency?

No, you wouldn't be proposing this under value- added. This would be a commercial risk mitigation measure.

A couple of questions about how we are doing source selection. How will members of the Source Selection Board be selected? That is not information we will release.

Will customer agency representatives evaluate proposals prior to the master contract award? No.

Will the integrated solution presenters/reviewers be composed of those reviewing the independent business line proposals? Again, that's source selection information.

I have two cards related to telephone access. As the preferred telephone access device, how does this contract impact the mandatory use of GSA's FTS 2000 telephone contracts? It doesn't. This is not the billing mechanism, the travel card is not the billing mechanism. It's just the access, the preferred access.

Will purchase cards be permitted to be used for monthly telecommunications' bill payments? Yes, as long as it doesn't conflict with the FTS or DSN contracts and not prohibited by the agencies.

If you do not have 99 references, say you only have 75, are you out of the running, unsatisfactory? Yes.

Please clarify whether references of a subcontractor may count towards meeting the basic requirements for 99 references? No.

Here's another telephone access. With respect to GSA and DOD's existing contacts for telecommunications, what will be the offeror's responsibility to accept calls made with telephone calls procured under these contracts?

Again, the travel part is not intended to be the billing.

Can the contractor use an electronic projection panel connected to the computer and placed on the supplied overhead projector? If not, what size screen will be allowed for the demonstration?

Again, Amendment two will address that. Same thing with this question. How are we going to project the electronic access system? Amendment two will address that.

When will amendment two be released and will there be an extension of the proposal submission date? Amendment two will come out Friday or early next week. We will not be extending the submission date at this time.

For productivity refunds, what data will the Federal agency be required to submit if any? There is no additional data. We provided as much data as we could in the solicitation and exhibits.

What form or format does the task order have to be in or on? Standard delivery order forms, GSA 300s, DD-1155s, agencies can have their own purchase order forms or on agency letterhead.

That's it for the questions. Thank you.

AUDIENCE QUESTIONS

MS. McIVER: Any additional questions from the floor?

AUDIENCE SPEAKER: ----?

MS. McIVER: I'm sorry. When will Amendment two be available? As Becky just said, it will be Friday or early next week.

AUDIENCE SPEAKER: ----?

MS. McIVER: Can a subcontractor's references be used to respond to that line of business.

MS. KOSES: The question was can a subcontractor's references be used to respond to the reference requirement. The answer is no.

MS. McIVER: Any additional questions? Then I'd just like to thank you, guys, for hanging in this long. We want to get the information out as quickly as we can to you and we are willing to stay to share that information.

The amendment, including questions and answers, will be issued on the Web site, along with the transcript and hopefully by Friday, if not then, then early next week. Responses to future questions will also be on the Web site, as well as any additional amendments that are necessary to add mandatory agencies or indicate their participation on specific business lines.

We thank you all for attending. We look forward to receiving proposals on October 28th. Thank you.

(Whereupon, at 1:15 p.m., the PROCEEDINGS were adjourned.)

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