Online Marketing of Commodities

USDA Farm Service Agency (FSA) seeks to obtain comments from interested vendors on the SOW for Online Marketing of Commodities. This requirement is being set-aside as a competitive 8 (a) acquisition. The period of performance being considered is one base year and four option years. Please refer to the draft SOW for the description of the services needed. After review of the draft SOW please electronically submit any comments toLawrence Carter at the following email address: lawrence.carter@wdc.usda.gov no later c.o.b. May 16, 2008. The comments supplied by industry will be used by the government to ensure your understanding of the government requirements to eliminate ambiguities, and to better formulate the acquisition strategy for the possible resultant procurement. Your comments should be limited to no more than fifteen pages. In addition, to your comments (a maximum of fifteen pages) a copy of your corporate capability should be submitted This RFI is issued solely for informational purposes and does not constitute a solicitation. In accordance with FAR 15.201 (e),(Exchange with Industry Before Receipt of Proposals) responses to this notice are not offers and cannot be accepted by the Government to craft a binding contract. SCHEDULE OF SUPPLIES/SERVICES BASE YEAR: (Contract Award through - To be determined). ITEM DESCRIPTION QTY UNIT UNIT PRICE (1) TOTAL AMOUNT 0001 System Access Fee 12 MO $ ___________ $_________________ 0002 Transaction Fees - UGRSA Commodities 0002A Transaction Fee 1-1M Bu/Cwt $ ___________ $ _____________ 0002B Transaction Fee 1M-5M Bu/Cwt $ ___________ $ _____________ 0002C Transaction Fee Over 5M Bu/Cwt $ ___________ $ _____________ 0003 Transaction Fees - Peanuts/Sugar 0003A Transaction Fee 1-20K Ton $ ___________ $ _____________ 0003B Transaction Fee 20K-100K Ton $ ___________ $ _____________ 0003C Transaction Fee Over 100K Ton $ ___________ $ _____________ 0004 Transaction Fees - Cotton 0004A Transaction Fee 1-20K Bale $ ___________ $ _____________ 0004B Transaction Fee 20K-100K Bale $ ___________ $ _____________ 0004C Transaction Fee Over 100K Bale $ ___________ $ _____________ 0005 Transaction Fees - Nonfat Dry Milk/Butter/Cheese 0005A Transaction Fee 1-20K Pounds $ ___________ $ _____________ 0005B Transaction Fee 20K-100K Pounds $ ___________ $ _____________ 0005C Transaction Fee Over 100K Pounds $ ___________ $ _____________ Total for Base Year $_________________ OPTION YEAR I: (TBD). ITEM DESCRIPTION QTY UNIT UNIT PRICE (1) TOTAL AMOUNT 0006 System Access Fee 12 MO $ ___________ $_________________ 0007 Transaction Fees - UGRSA Commodities 0007A Transaction Fee 1-1M Bu/Cwt $ ___________ $ _____________ 0007B Transaction Fee 1M-5M Bu/Cwt $ ___________ $ _____________ 0007C Transaction Fee Over 5M Bu/Cwt $ ___________ $ _____________ 0008 Transaction Fees - Peanuts/Sugar 0008A Transaction Fee 1-20K Ton $ ___________ $ _____________ 0008B Transaction Fee 20K-100K Ton $ ___________ $ _____________ 0008C Transaction Fee Over 100K Ton $ ___________ $ _____________ 0009 Transaction Fees - Cotton 0009A Transaction Fee 1-20K Bale $ ___________ $ _____________ 0009B Transaction Fee 20K-100K Bale $ ___________ $ _____________ 0009C Transaction Fee Over 100K Bale $ ___________ $ _____________ 0010 Transaction Fees - Nonfat Dry Milk/Butter/Cheese 0010A Transaction Fee 1-20K Pounds $ ___________ $ _____________ 0010B Transaction Fee 20K-100K Pounds $ ___________ $ _____________ 0010C Transaction Fee Over 100K Pounds $ ___________ $ _____________ Total for Option I Period $_________________ OPTION YEAR II: (TBD). ITEM DESCRIPTION QTY UNIT UNIT PRICE (1) TOTAL AMOUNT 0011 System Access Fee 12 MO $ ___________ $_________________ 0012 Transaction Fees - UGRSA Commodities 0012A Transaction Fee 1-1M Bu/Cwt $ ___________ $ _____________ 0012B Transaction Fee 1M-5M Bu/Cwt $ ___________ $ _____________ 0012C Transaction Fee Over 5M Bu/Cwt $ ___________ $ _____________ 0013 Transaction Fees - Peanuts/Sugar 0013A Transaction Fee 1-20K Ton $ ___________ $ _____________ 0013B Transaction Fee 20K-100K Ton $ ___________ $ _____________ 0013C Transaction Fee Over 100K Ton $ ___________ $ _____________ 0014 Transaction Fees - Cotton 0014A Transaction Fee 1-20K Bale $ ___________ $ _____________ 0014B Transaction Fee 20K-100K Bale $ ___________ $ _____________ 0014C Transaction Fee Over 100K Bale $ ___________ $ _____________ 0015 Transaction Fees - Nonfat Dry Milk/Butter/Cheese 0015A Transaction Fee 1-20K Pounds $ ___________ $ _____________ 0015B Transaction Fee 20K-100K Pounds $ ___________ $ _____________ 0015C Transaction Fee Over 100K Pounds $ ___________ $ _____________ Total for Option II Period $_________________ OPTION YEAR III: (TBD). ITEM DESCRIPTION QTY UNIT UNIT PRICE (1) TOTAL AMOUNT 0016 System Access Fee 12 MO $ ___________ $_________________ 0017 Transaction Fees - UGRSA Commodities 0017A Transaction Fee 1-1M Bu/Cwt $ ___________ $ _____________ 0017B Transaction Fee 1M-5M Bu/Cwt $ ___________ $ _____________ 0017C Transaction Fee Over 5M Bu/Cwt $ ___________ $ _____________ 0018 Transaction Fees - Peanuts/Sugar 0018A Transaction Fee 1-20K Ton $ ___________ $ _____________ 0018B Transaction Fee 20K-100K Ton $ ___________ $ _____________ 0018C Transaction Fee Over 100K Ton $ ___________ $ _____________ 0019 Transaction Fees - Cotton 0019A Transaction Fee 1-20K Bale $ ___________ $ _____________ 0019B Transaction Fee 20K-100K Bale $ ___________ $ _____________ 0019C Transaction Fee Over 100K Bale $ ___________ $ _____________ 0020 Transaction Fees - Nonfat Dry Milk/Butter/Cheese 0020A Transaction Fee 1-20K Pounds $ ___________ $ _____________ 0020B Transaction Fee 20K-100K Pounds $ ___________ $ _____________ 0020C Transaction Fee Over 100K Pounds $ ___________ $ _____________ Total for Option III Period $_________________ OPTION YEAR IV: (TBD). ITEM DESCRIPTION QTY UNIT UNIT PRICE (1) TOTAL AMOUNT 0021 System Access Fee 12 MO $ ___________ $_________________ 0022 Transaction Fees - UGRSA Commodities 0022A Transaction Fee 1-1M Bu/Cwt $ ___________ $ _____________ 0022B Transaction Fee 1M-5M Bu/Cwt $ ___________ $ _____________ 0022C Transaction Fee Over 5M Bu/Cwt $ ___________ $ _____________ 0023 Transaction Fees - Peanuts/Sugar 0023A Transaction Fee 1-20K Ton $ ___________ $ _____________ 0023B Transaction Fee 20K-100K Ton $ ___________ $ _____________ 0023C Transaction Fee Over 100K Ton $ ___________ $ _____________ 0024 Transaction Fees - Cotton 0024A Transaction Fee 1-20K Bale $ ___________ $ _____________ 0024B Transaction Fee 20K-100K Bale $ ___________ $ _____________ 0024C Transaction Fee Over 100K Bale $ ___________ $ _____________ 0025 Transaction Fees - Nonfat Dry Milk/Butter/Cheese 0025A Transaction Fee 1-20K Pounds $ ___________ $ _____________ 0025B Transaction Fee 20K-100K Pounds $ ___________ $ _____________ 0025C Transaction Fee Over 100K Pounds $ ___________ $ _____________ Total for Option IV Period $_________________ Total for Base and all option periods $_________________ Note 1: The rate for Transaction Fees for UGRSA Commodities shall be a rate applicable to completed sales for those commodities whether the unit for the commodity sold is based on bushels or hundredweight. Once a level is surpassed on a specific transaction fee, the new rate applies to subsequent sales and is not retroactive. For example, if 25,000 bales of cotton were sold, 20,000 are at the level one rate and 5,000 would be at the level two rate. This note does not apply to the System Access Fee. Online Marketing Services for Commodities U.S. Department of Agriculture Commodity Credit Corporation Performance Work Statement C.1.0. Background: C.1.1. The Commodity Credit Corporation (CCC) proposes to contract for online marketing services of CCC-owned commodities. CCC's definition of commodities for purposes of this solicitation includes wheat, feed grains (barley, corn, grain sorghum, oats, rice, and soybeans), pulse crops (dry peas, lentils, small chickpeas, large chickpeas) other oilseeds (canola, crambe, flax, mustard, rapeseed, safflower, sesame, and sunflower), cotton, peanuts, sugar, and dairy products (nonfat dry milk, butter and cheese). C.1.2. The online marketing service would supplement current CCC sales methods of cataloging, issuing public invitations, and providing sales lists for commodities. The statutory authority of Section 5 of the CCC Charter Act provides that, - In the Corporation's purchasing and selling operations with respect to agricultural commodities, the Corporation shall, to the maximum extent practicable consistent with the fulfillment of the Corporations purposes and the effective and efficient conducts of its business, utilize the usual and customary channels, facilities, and arrangements of trade and commerce, including, at the option of the Corporation, the use of private sector entities. Furthermore, P.L. 104-127, Section 165 states, in part, The Commodity Credit Corporation may sell any commodity owned or controlled by the Corporation at any price that the Secretary determines will maximize returns to the Corporation. C.1.3. CCC is interested in obtaining online marketing services only and has no interest in purchasing or renting any computer hardware or software. CCC has the sole discretion in making commodities available for sale, which may include the removal of commodities from the online sales platform in order to utilize an alternative sales or disposition method or for any other reason. C.1.4. The marketing assistance loan programs for most commodities are designed to minimize the potential for loan forfeitures. Accordingly, there is no guarantee that CCC will acquire any commodities in any given year. In addition, when CCC does acquire commodities, CCC may choose to dispose of the commodity using a method other than online sales, such as through various food aid programs. CCC's current inventory is entirely committed to the Bill Emerson Humanitarian Trust and may be reviewed at the following website link: http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=pas-sa C.2. Scope: CCC's objectives are to obtain competitive prices for commodity inventories in the most cost-effective and least market disruptive manner through online marketing services for sales of its commodity inventories. C.3. Requirements: C.3.1. The online marketing service must offer customers the opportunity to negotiate commodity prices, complete sales transactions and, as applicable, complete transfer of title in an electronic format. The services may include CCC-owned commodities along with other industry owners/marketers of these commodities. C.3.2. The online marketing service must provide for: C.3.2.1. Online access for 10-15 CCC personnel normally engaged in merchandising commodities; C.3.2.2. Negotiated flat-price bid sales; C.3.2.3. Help desk assistance to the users; C.3.2.4. Inventory sales data in an electronic format; C.3.2.5. Daily summary of data on actual sales activities, with a variety of sort options, including reports by commodity and for a particular date, month, fiscal year, calendar year, or date range. A downloadable spreadsheet format, such as Microsoft Excel, that contains the information is acceptable; C.3.2.6. Guaranteed sales transactions, so that CCC shall not be subject to losses incurred due to the failure of any subsequent transaction. C.3.3. Conduct online sales in a dynamic bidding system. Sales must be guaranteed and payments made to CCC by wire transfer or electronic funds transfer no later than 3:00 p.m. on the next business day following the date of the sale. CCC will transfer title to the commodity to the contractor no later than the next business day following payment. CCC may place inventory on the online marketing service, or remove inventory from the online marketing service, at CCC's sole discretion, at anytime throughout the contract term. CCC is not obligated to dispose of CCC inventory through the online marketing service. C.3.3.1. Inventory placed on the service must be made available for sale within 4 hours of receipt. C.3.3.2. Online services must be available to buyers and sellers at least 8 hours a day, Monday through Friday, during normal business hours. C.3.4. Both buyer and seller identities must be protected. Until a sale is confirmed, the price determining process must be anonymous. C.3.5. Provide all necessary security safeguards to ensure that market sensitive or proprietary data is secure from disclosure, including the handling of electronic warehouse receipts. C.3.6. Generate necessary inventory sales data to interface with CCC inventory systems. This data will include the net quantity available for sale for each lot, and grade or other quality factors for the applicable commodity. C.4. Deliverables: C.4.1. The contractor shall provide remote access for online marketing service to the Commodity Management Division, Kansas City Commodity Office, and Warehouse and Inventory Division, Washington, DC. C.4.2. Electronic interface requirements necessary to make inventories available to Kansas City Commodity Office. C.4.3. Daily reconciliation of inventory and merchandising activities. C.4.4. All deliverables shall be functional within 10 days of contract award. C.5. Schedules: C.5.1. Performance period is for a base period of one calendar year with four 1-year option periods. C.6. Miscellaneous: C.6.1. Government Furnished Property: USDA will provide warehouse receipt or another applicable data as required from CCC's inventory catalog for posting to an online service. C.6.2. Government Points of Contact: C.6.2.1. In the Kansas City Commodity Office, the following persons are contacts: Jerry Cornell, Chief, Commodity Management Division, and Martha Mitchell, Chief, CMD, Merchandising Branch C.6.2.2. In the Warehouse and Inventory Division, Washington, D.C., the following persons are points of contact: Mark Overbo, Deputy Director, and Jose Gonzalez, Inventory Program Manager. C.6.3. Quality Control: The contractor shall provide a quality control plan describing how the contractor will implement its quality policy. This plan must describe the responsibilities, procedures, processes, and resources needed to implement quality management. The plan must also describe what quality audits or reviews will be done. The contractor shall perform on-going inspections of the work being performed to determine whether results conform to requirements. The metrics and control limits for cost variances, schedule variances, and defects will be defined in the plan.