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									                                                                           STRATEGY.DOC


                  PROPOSED PROCUREMENT STRATEGY

SERVICES SOLICITED

GSA plans to solicit for four (4) business lines:

          Fleet card services
          Travel card services
          Purchase card services
          Integrated solution for card services

Offerors on the integrated solution business line must meet all of the core requirements
specified for each card service independently. At a minimum, the contractor must integrate
the reporting function for the fleet, travel, and purchase card programs. The Government
further desires higher levels of integration and will evaluate proposed integrated solutions
accordingly.

CONTRACT PERIOD

The initial term of the contract will be 5 years, with five (5) 1-year options.

MANDATORY/NONMANDATORY USERS

GSA will ask its customers to commit to becoming a mandatory user of this contract. At
the presolicitation conference in early 1997, GSA will have a list of those agencies that
have agreed to become a mandatory user of this contract. Agencies that commit to
mandatory use are prohibited from procuring similar services to those offered in this
contract.

Contractors must accept all task orders from mandatory users that meet applicable
minimums. Non-mandatory users may order products and services under the terms and
conditions of this contract. Contractors are encouraged to accept all task orders submitted
by GSA on behalf of nonmandatory users.

SERVICE SELECTION/PRICING OPTIONS

GSA proposes two service selection/pricing options:

Task Order for Standard Services. Agencies order core products and services and may
select pre-defined value-added products and services at the prices established in the price
schedule.




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Task Order for Custom Services. Agencies may request tailored products and services and
negotiate the price. Tailoring would be performed by the contractor using the skill
categories and labor rates established in the price schedule.

GSA invites comment on these service/selection pricing options as well as comment on
how the pricing schedule should be structured in the solicitation. Also please provide a
description of skill categories required to tailor programs.

TASK ORDER PROCESS

Each agency’s Chief Financial Officer (CFO), or equivalent, will be responsible for making
the decision on how the agency will place a task order for his/her agency. The CFO, or
equivalent, may allow various organizational elements to place their task orders directly
with the contractor. The length of the task order will be a minimum of two years or
duration of the contract.

GSA plans to set the minimums for task orders for customized services at the following
annual purchase volume levels: Fleet - $300,000; Travel - $ 3 million; Purchase - $3
million; and Integrated Solution - $5 million. There will be no minimums for task orders
for standard services. Task order development assistance is available from GSA. GSA is
also willing to assist agencies to jointly enter into task orders to increase their purchasing
power.

GUARANTEED MINIMUM

GSA proposes to pay a guaranteed minimum amount at the end of the initial 5-year
contract period. GSA invites comment on the level and structure of the guaranteed
minimum.

EVALUATION METHODOLOGY

GSA anticipates two levels of evaluation. The first level is GSA’s evaluation of
contractors for purposes of awarding the master contracts. The second level of evaluation
will be performed by the ordering agencies for purposes of choosing which master
contractor(s) shall be issued a task order(s) for a particular requirement(s).

For the master contract, GSA is considering using a best value approach to evaluating
offeror’s proposals to meet the Government’s core requirements. Each technical
evaluation factor and subfactor would carry a weight determined by a Source Selection
Evaluation Board. Strengths and weaknesses of an offeror’s technical proposal would be
evaluated against established evaluation criteria and points would be assigned based on the
information provided by the contractor and verified by the Government. Price would also
be evaluated. Cost and technical trade-offs would be made.




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The solicitation will also specify a basic format for the task order evaluation criteria and
methodology which agencies must follow when evaluating task order proposals. Within
the specified basic format, the agencies may vary the priorities of certain evaluation factors
and subfactors as well as add evaluation factors of their own. The agency’s task request
will specify the evaluation factors they will utilize and their relative importance.

Formal source selection procedures or evaluation schemes are not necessary under the task
order process.

REFRESHMENT/PRICE BREAKS

New products and services may be added by modification to the master contract. At any
time during the contract, contractors may offer a price break on any line item.

CONTRACT CANCELLATION

A contractor may submit a request for contract cancellation and the reason for
discontinuing participation to the GSA Contracting Officer for review. GSA will evaluate
the contractor’s request and decide whether it should be granted. If the cancellation is
granted, a contractor may not discontinue its participation in the card program with a
specific agency until such time as the period of performance as stated in the task order
expires and agency transition to a new contractor is complete. If a cancellation is granted,
the contractor forfeits any claim to any guaranteed minimum under the program.




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