Defense General Supply Center, 8000 Jeff Davis Hwy., Richmond, Va 23297-5326

99 -- PRE-SOLICITATION NOTICE Due 042995. Contact Sherrill Sydnor King, 804/279-5127, Contracting Officer, Darius Lantz, 804/279-3580. The Defense Logistics Agency (DLA) is developing a program based on commercial practices to improve the Total Asset Visibility (TAV) and control of materiel procured from domestic commercial vendors by the DLA Inventory Control Points (ICPs). To achieve this improvement, we plan to Enhance Vendor Delivery by changing the primary mode of procuring materiel from FOB destination contracts to FOB origin contracts. Accordingly, the DLA would assume responsibility for the movement of this materiel from origin to destination, either directly to the customer (requisitioner) or to a depot storage facility. To accomplish this without having a negative impact on the transportation performance as it exists today, the DLA is considering the utilization of a Logistics Manager (LM) to perform traffic management and data management for our FOB origin shipments. With the implementation of this concept, a significant portion of future ICP contracts will be FOB origin. Today, approximately 20% of the DLA contracts are FOB origin and 80% are FOB destination. In 1994, the DLA purchased approximately $4.7 billion of materiel in 1,280,024 contract actions from over 12,000 domestic commercial vendor locations. There are five DLA ICPs which purchase goods for DLA: Defense General Supply Center, Richmond, VA; Defense Industrial Supply Center, Philadelphia, PA; Defense Personnel Support Center, Philadelphia, PA: Defense Construction Supply Center; Columbus, OH; and Defense Electronics Supply Center, Dayton, OH. The ICPs will continue to purchase materiel from the commercial vendors and provide contract data electronically to the LM when a contractual action is completed. When vendors are ready to deliver on contracts, they will notify the LM electronically that the materiel is ready for pickup. The LM arranges for transportation of the materiel in the most effective and efficient manner available, to meet the required delivery date to the customer or the depot. Initially, we plan to use one ICP to test the concept of using an LM. Upon implementation, that ICP would start generating more FOB origin shipments. We will choose an ICP with a mix of shipping requirements - small package surface and air, air freight, less than truckload, truckload, and specialized service. As stated, this ICP will be contracting with vendors located throughout the United States. The LM will perform traffic management, providing intransit visibility (ITV), and pickup and delivery data to the ICPs via Electronic Data Interface (EDI). Upon validation of the concept, the other four ICPs will come on line. The LM will negotiate commercial rates and have the capability to utilize Government transportation rates, allowing for the acquisition of best value service. The LM will also manage the traffic during military deployment, and have an effective contingency/backup plan for carrier strikes, bankruptcies, etc. The LM selected will be a DoD traffic manager required to provide flexibility and resourcefulness in managing government traffic, including expediting, diverting, and possibility storing materiel. Managing the movement to domestic sites or ports of embarkation for international shipments will be the responsibility of the LM. The LM will provide required data and DoD documentation to the Government. Please provide an overview of your company and its management philosophy. The following questions highlight areas of specific Government interest. Do not feel limited by these questions; you are welcome to provide any additional information you desire. 1. What is the scope of the logistics management services your company provides? 2. Give a general description of the capabilities, equipment, and resources your company has to operate in the inbound materiel movement environment. 3. Indicate the geographic areas your organization services. 4. Explain how you generate revenue, i.e. by transaction, concession fee, performance incentive, etc.? 5. What systems and processes do you utilize, and are they standardized? 6. What is the level of automation? Does your company provide on-line visibility of materiel intransit? Do you use EDI ASCx12 standards, etc.? 7. How are Statistical Quality Control (SQC) processes used? 8. How would your company ensure responsive service and customer satisfaction? 9. What criteria or metrics do you use to measure responsiveness? 10. What are your standard time frame for moving less than truckload shipments from coast to coast? 11. How do you monitor delivery quality? 12. How are costs for specific customers and specific programs established and monitored? 13. What do you anticipate in general cost trends for third party logistics in the future? 14. How does your company handle liability for materiel? 15. What is your company relationship with small businesses and sub-contractors? 16. Explain your company's success in achieving the objectives of your three largest customers, i.e., ITV, responsive pickup and delivery, savings reduced inventory, etc. 17. What is your contract logistics management experience for inbound materiel movement from multiple suppliers? 18. What is your approach to carrier selection? 19. How do you provide management reporting? 20. What is your approach to implementation? 21. What challenges are encountered implementing an outsourcing arrangement? Oral or written inquiries or contacts should be directed to Ms. Sherrill Sydnor King at (804) 279-5127. Written inquiries may be mailed to the address shown in the letterhead, ATTN: Sherrill Sydnor King, DGSC-ESB, or faxed to (804) 279-3715. All inquiries or contacts should reference the Enhance Vendor Delivery. (086)

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