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The Department of Veterans Affairs is procuring Online Clinical Drug Information services under a Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside. Key requirements include compliance with FAR 52.219 14(e)(1) regarding the amount paid for contract performance, which includes SaaS licensing fees, hosting, and training.
questions received from industry prior to the Q&A deadline and to extend the solicitation closing date. During its market research, did the agency identify any SDVOSBs that develop, own, and/or operate the SaaS platform being solicited? During market research, the Government identified two or more SDVOSBs that stated they would provide a quote for services; however, the firms indicated they would function as reseller Prime Contractors. Will the agency provide a breakdown of what constitutes the amount paid by the Government for contract performance under FAR 52.219 14(e)(1) (e.g., implementation, hosting, training, etc.), and clarify whether such amounts include SaaS licensing fees paid by the Government? Applicable fees under FAR 52.219 14(e)(1) include implementation, hosting, training, and SaaS fees. Under VAAR 852.219-75(a)(1)(i), are SaaS licensing fees considered the amount paid by the government to the SDVOSB, or are they considered other direct costs that may be excluded? SaaS licensing fees represent the principal purpose of the acquisition when the contract is primarily for software services. Consequently, those fees are included in the amount paid by the Government and count against the 50% limit. Only incidental or peripheral costs like optional supplies, travel, or administrative expenses may qualify as "other direct costs" and be excluded. Given that NAICS 513210 classifies software publishing as a service, can the agency clarify its expectations regarding how an SDVOSB prime would demonstrate compliance with
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