Defense Personnel Support Center, 2800 S. 20th St., Philadelphia, PA 19145-5099

B -- DPSC ADVANCED BUSINESS PRACTICES DEMONSTRATION PROGRAM Contact Chet Evanitsky, Contracting Officer, 215/737-8610. The DPSC is interested in the continual demonstration of unique and innovative approaches in maintaining and/or expanding a viable industrial base with quality producers, and with sufficient surge capabilities to meet DoD requirements for certain defense items during mobilization or contingencies short of a declared national emergency. The objectives are to develop new strategies utilizing advanced manufacturing and inventory management techniques to improve the ability of the industrial base to respond to changes in customer demand and to effectively reduce the overall cost to the Government to maintain that capability. The program will encompass two general commodity sectors: the tentage/equipage/heraldics/footwear sector consisting of tents, helmets, backpacks, flags, insignias, boots, etc. and the clothing sector consisting of coats, shirts, trousers, etc. With regard to the first sector listed above, the Program will focus on two main areas: Electronic Commerce/Quick Response (EC/QR) and Shared Production Agreement. Under EC/QR, the objective is to achieve a total quick response environment where the supplier's production planning is determined by actual customer demand. This requires integration of commercial and military supply and distribution systems, electronic data interchange capability, management of demand based customer inventory by the contractor and direct vendor delivery. Integration of material suppliers/vendors into a toal quick response environment is encouraged. Under the Shared Production Agreement concept, the contractor establishes a long-term business relationship with one or more of its major commercial or other non-DLA Government customers. This third party shares the production facility with DLA during peacetime thereby reducing the share of allocated overhead costs payable by any one customer. The commercial or other non-DLA customer enters into an advance agreement to relinquish production lines and capability during mobilization or contingencies short of a declared national emergency and to facilitate return to its normal business relationship with the contractor as military requirements decrease. Concept papers for this sector should address one or more of these Program strategies. With regard to the clothing sector, the DPSC has demonstrated the benefits of EC/QR and Shared Production for these items and these ideas have been incorporated into competitive best-value solicitations. The DPSC now is seeking new and creative concepts that extend beyond the aforementioned areas and which have the potential for further continuous development. Concept papers for the clothing sector should continue to incorporate EC/QR and Shared Production, but must also include technological enhancements that will develop manufacturing and inventory management strategies beyond what has already been demonstrated. The item(s) to be included in the concept papers submitted are secondary to the main purpose of this program which is to contract for the technology and creative ideas which will be implemented in order to strenghten the industrial base. Address concept papers to: Chet Evanitsky, Contracting Officer, DPSC-FRAC-3, 2800 S. 20th Street, Philadelphia, PA 19145-5099. Handcarried submissions (including delivery by commercial carrier) should be addressed to: Defense Personnel Support Center, ATTN: DPSC-FRAC-3/C. Evanitsky, Bldg. 12, 2nd Floor, 2800 S. 20th St. Philadelphia, PA 19145. All submissions must be clearly marked for: ``Advanced Business Practices Demonstration Program''. Electronic transmissions such as facsimile, TWX and telex submissions are not authorized. This announcement will be in effect until formally rescinded. The Program will be re-announced periodically to take advantage of new technology and changes in the market place. Concept papers will be individually evaluated as they are submitted based on the following criteria listed in descending order of importance: 1) Production Capability. A vendor's capability to product the targeted item(s) as indicated by quality and performance history on Government and commercial contracts will be assessed to determine the vendor's ability to meet the program objective for immediate demonstration. Only those firms with demonstrated capability to produce a quality item in the timeframe required will be considered. 2) Corporate Experience. a) Vendors who have demonstrated successful on-line experience in the area(s) to be demonstrated are preferred over those vendors who have limited or no experience. For example, vendors who are already transacting business via electronic commerce, are already modernized and/or have entered into Shared Production Agreements are considered to present the best opportunity to immediately demonstrate the progrem objectives. Experience includes possessing the requisite equipment, management and production procedures, in-process quality control system and qualified personnel in-place at the time concept papers are submitted. b) Vendors with no experience must demonstrate an ability to acquire the technology and/or enter into Shared Production Agreements to meet immediate contract/program goals. Ability will be assessed through evaluation of the contractor's technical approach, to include integration of military and civilian production, manufacturing plan, management plan, personnel qualifications, in-process quality control system, equipment needs and the timetable for demonstration. The evaluation of Shared Production Agreements will also consider the length and extent of the third party commitment, to include the proposed financial contribution to plant modernization and cross-training. 3) Financial Commitment. Vendors who propose to make some or all of the required financial investment in plant modernization are preferred over those firms who require total Government assistance. Cost/sharing arrangements will be considered and are encouraged for those firms requiring Government assistance. 4) Commitment to the Industrial Preparedness Program: As the Program objective is to maintain and/or expand the DLA industrial base, a commitment to long-term industrial preparedness planning is preferred. However, if a vendor presents an opportunity to gain valuable experience without a long-term commitment, the immediate value to be gained and the long-range benefits to the industrial planning process will offset the vendor's lack of a long-term commitment. 5) Commercial Revenue Base. The Government's objective is to integrate mobilization requirements in the contractor's existing commercial base to yield the highest probability of effective performance with least disruption to the commercial business base. Commercial revenue includes sales to all non-DLA customers. Contractors with large commercial sales volumes are preferred. The Government may enter into cost sharing arrangements with contractors who propose realistic plans to expand their base in the interest of improving their industrial preparedness capability and commitment. 6) Membership in an Advanced Apparel Manufacturing Technology Demonstration (AAMTD) Coalition. Membership in one or more of the AAMTD coalitions formed through the participating universities in the DoD MANTECH Program is desired. The coalition is a valuable source of financial and technical support. The coalition would facilitate transfer of the technology achieved as a result of the demonstrations conducted under this DPSC Program. The DPSC reserves the right to restrict participation to those firms who after evaluation of concept papers, present an immediate opportunity to gain experience in one or more areas of the Program objectives for purposes of enhancing, maintaining, expanding or stabilizing the industrial base. Awards under this Program will be made under the authority of 10 U.S.C. 2304(c)(3), FAR 6.302-3, Industrial Mobilization. Complete technical and cost proposals will be requested from those firms on an individual basis. Awards will be made to the contractor(s) who demonstrates various probabilities of successfully demonstrating the targeted objectives of the Demonstration Program. Demonstrations conducted under this Program will include the delivery of an end item of supply. Contract type, to include the full range of firm, fixed-price and cost type contracts, will be negotiated on an individual basis as appropriate. These contracts are intended to demonstrate the feasibility of further development and provide vital experience for ultimate implementation of the most promising strategies through competitive proposals where possible. This is an expression of interest only and does not commit the Government to pay for any response preparation costs. Awards under this Program are subject to the availability of funds. All discussions and inquiries concerning this announcement and submitted concept papers shall only be conducted through the point of contact identified in this announcement. (111)

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