R&D Contracting Directorate, Bldg 7, 2530 C Street, WPAFB, OH 45433-7607

A -- DEFENSE PRODUCTION ACT (DPA) INDIUM PHOSPHIDE WAFERS (INP) SOL BAA-97-01-MTPD POC Mary Jones, Contract Negotiator, WL/MTPD, (937) 255-4427; Willa Eichelman, WL/MTPD, (937)-255-9665 A. INTRODUCTION: As Executive Agent for the Defense Production Act (DPA) Title III Program, the Air Force is soliciting proposals for the creation of a long term, financially-viable domestic semi-insulating indium phosphide (SI InP) wafer production capability. Proposals in response to this BAA shall be submitted by 8 Jan 97, 1500 hours Eastern Time, addressed to WL/MTPD, Building 22B, 2700 D Street, Suite 2, Wright-Patterson Air Force Base OH 45433-7405, Attention: Ms Willa Eichelman, Procurement Contracting Officer. This is an unrestricted solicitation. Small businesses are encouraged to propose on this solicitation. Proposals submitted shall be in accordance with this announcement. Proposal receipt after the cutoff date and time specified herein shall be treated in accordance with restrictions of FAR 52.215-10; copy of this provision may be obtained from the contracting point of contact. There will be no other solicitation issued in regard to this requirement. Offerors should be alert for any BAA amendments that may permit subsequent submission of proposal dates. Offerors should request a copy of the WL Guide entitled, "PRDA and BAA Guide for Industry" dated Nov 92. This guide was specifically designed to assist offerors in understanding the PRDA/BAA proposal process. Copies may be requested from the contracting point of contact stated herein. The Guide is also available on the Internet, address: www.wl.wpafb.af.mil/contract. B-REQUIREMENTS: (1) Technical Description: The purpose of this effort is to establish a long term, viable production capability for producing consistent, high quality SI InP wafers. Specific program objectives to be addressed include: (a) Development and implementation of a credible, long term plan to achieve business viability, (b) Establishment of a production process capable of producing consistent, high quality 75mm SI InP wafers, (c) Development and implementation of a process improvement plan that addresses critical production process and quality issues such as boule/wafer uniformity and consistency, surface preparation, defect reduction and process yields, (d) Demonstration of at least a 50% reduction in the total wafer production cost from the established baseline, (e) Demonstration of a production capability of at least 50KSI/YR, (f) Establishment of industry partnerships for material evaluation and/or qualification, (g) Distribution of free wafers to Government, industry and universities for materials characterization and (h) Development of a 100mm production process roadmap. (2) Deliverable Items: The following deliverable items shall be proposed: (a) Status Report, DI-MGMT-80368/T, quarterly (b) Funds and Man-Hour Expenditure Report, DI-FNCL-80331/T, monthly, (c) Business Plan, DI-MISC-80711/T, (Draft and Final) (d) Presentation Material, DI-A-3024/T, as required, and (e) Project Final Report, DI-MISC-80711/T, (Draft and Final). (3) Security Requirements: The work performed as a result of this Broad Agency Announcement (BAA) will be unclassified.Data generated by the resulting contract(s) may be subject to export control and/or subject to International Traffic in Arms Regulations. United States organizations are asked to contact the contracting officer immediately if they anticipate employment of foreign nationals on this program. C-ADDITIONAL INFORMATION: (1) Anticipated Period of Performance: Technical effort is estimated to last approximately 30 months. The contract shall also provide for additional 4 months for processing/completion of the final report. (2) Expected Award Date: May 97. (3) Government Funding Estimate: The Government anticipates up to two contract awards with total Government funding not to exceed $4M. (4) Type of Contract: Cost Sharing. A total program cost share ratio of at least 1:1 of Government funding is desired. Past capital investments will not be considered towards cost sharing. (5) Domestic Source: The production capability established for SI InP, a "critical technology item", must be provided by a domestic source. The DPA defines "domestic source" as: "a business concern (a) that performs in the U.S. or Canada substantially all of the research and development, engineering, manufacturing, and production activities required of such business concern under contract with the U.S. relating to a critical component or a critical technology item, and (b) that procures from business concerns described in (a) substantially all of any components and assemblies required under contract with the U.S. relating to a critical component or critical technology item." (6) Government Furnished Property: None contemplated. (7) Size Status: For the purpose of this acquisition, the size standard is 750 employees (SIC 3699). (8) Notice to Foreign-Owned Firms: Such firms are asked to immediately notify the Air Force point of contact cited below upon deciding to respond to this announcement. Foreign contractors should be aware that restrictions may apply which could preclude their participation in this acquisition. D-PROPOSAL PREPARATION INSTRUCTIONS: (1) General Instructions: Offerors should apply the restrictive notice prescribed in the provision at FAR 52.215-12, Restriction on Disclosure and Use of Data, to trade secrets or privileged commercial and financial information contained in their proposals. Proposal questions should be directed to one of the points of contact listed elsewhere herein. Offerors should consider instructions contained in the WL PRDA and BAA Guide for Industry referenced in Section A of this announcement. Technical and cost proposals, submitted in separate volumes, are required and must be valid for 180 days. Proposals must reference the above BAA number. All responsible sources may submit a proposal which shall be considered against the criteria set forth herein. Offerors are advised that only contracting officers are legally authorized to contractually bind or otherwise commit the Government. (2) Cost Proposal: The cost proposal shall be prepared in accordance with FAR 15.804-6 andshall include a Standard Form 1411, Contract Pricing Proposal Cover Sheet, with all supporting data, in order to allow for a complete review by the Government. The cost proposal shall include all supporting information including breakdown of labor hours by category, materials, travel, computer, subcontracting, and other direct and indirect costs. An analysis of each major subcontractor must be performed by the offeror in accordance with FAR 15.806-1 and included in the cost proposal. Details of the cost sharing to be undertaken by the offeror should be included in the cost proposal. A total of 5 hard copies shall be provided along with a digital copy that is Microsoft Excel capatible. (3) Technical Proposal: The technical proposal shall address how the offeror proposes to meet the stated requirements including submission of a concise business plan summary. Additional information on prior work in this area, descriptions of available equipment, data, facilities and resumes of personnel who will be participating in this effort shall also be included in the technical proposal. The technical proposal shall also include: (a) Statement of Work (SOW) detailing the technical tasks proposed to be accomplished under the proposed effort and suitable for contract incorporation, (b) Statement of Intention, if any, to use foreign nationals, (c) Break out of person hours for each task in the SOW and (d) Identification of all subcontractors and the level of effort proposed. Offerors should refer to the Wright Laboratory Guide to assist in SOW preparation. Offerors must submit approved DD Form 2345, Export-Controlled DOD Technical Data Agreement, with their proposal. Any questions concerning the technical proposal or SOW preparation shall be referred to the Technical Point of Contact cited in this announcement. A total of 15 copies are required. Offerors are notified that the SOW may be incorporated, or any part thereof, by reference, in any resulting award. The paragraph numbering used in the Technical Proposal for the technical approach discussion, the SOW tasks, and the Cost Proposal shall correlate. Travel is projected to include, but not limited to, semi-annual reviews at locations selected by the Government. (4) Page Limitations: Technical proposals shall not exceed 150 pages, double spaced, single-sided on 8.5" X 11" paper using 12 pitch or larger type. The page limitation includes all information, ie. Indexes, photographs, foldouts, and appendices. Pages in excess of this limitation will not be considered by the Government. There are no page limitations for the cost proposal. E-BASIS FOR AWARD: The selection of one or more sources for award will be based on a complete evaluation of offeror's proposals to determine the overall merit of each in response to this announcement. The proposals shall be evaluated based upon the following criteria which are listed in descending order of importance. (1) Business Viability: (a) The effectiveness and completeness of the proposal in demonstrating a clear understanding of the factors necessary to achieve an economically-viable production capability, (b) The extent to which the offeror possesses the business capability, experience, and willingness to become a competitive merchant supplier of InP substrates, and The extent to which the offeror's proposal communicates a credible strategy for overcoming existing barriers, both business and technical, to successfully address North American markets for InP wafers. (2) Technical Merit and Soundness of Approach: (a) Extent to which the offeror proposes a solid, constructive plan of technological achievement, (b) Extent to which the offeror's technical approach reflects a thorough understanding of the critical issues affecting the potential long term viability, and Extent to which the proposed solutions have the potential for making a significant impact to the InP user base. (3) Quality and Scope of Proposed Solutions: (a) Extent to which the proposed technical approach will lead to improved material quality, increased boule/wafer yield and reduced production costs, (b) Level of benefits to be derived through establishing partnerships with materials characterization firms, and Organization, clarity and thoroughness of the proposed SOW. (4) Offeror's Capability and Experience: (a) Extent to which the offeror possesses the capability and experience to complete the proposed work, (b) Degree to which the analyses, approaches, staffing methodology and planning considerations demonstrate that the offeror has identified and understood the Government requirements, and Degree to which the proposal shows a high probability of success. (5) Cost Realism: (a) Reasonableness, realism and completeness, (b) Amount and quality of cost share dollars proposed. No other evaluation criteria will be used. The technical and cost information will be evaluated at the same time. The Air Force reserves the right to select for award of a contract, any, all, part, or none of the proposals received. The Government reserves the right to award any resulting contract pursuant to the Research and Development Standard Contract format in DFARS 235.70. F-POINTS OF CONTACT: (1) The Contracting Point of Contact is Ms. Willa Eichelman, Wright Laboratory, Manufacturing Technology Directorate, Processing and Fabrication Division, Defense Production Act Branch, WL/MTPD, Wright-Patterson AFB OH 45433-7405, (937) 255-9665. (2) The Technical Point of Contact is Mr. John Blevins, Wright Laboratory, Manufacturing Technology Directorate, Processing and Fabrication Division, Defense Production Act Branch, WL/MTPD, Wright-Patterson AFB OH 45433-7405, (937) 255-9665. (3) An Ombudsman has been appointed to hear concern from offerors and potential offerors during the proposal development phase of this acquisition. The purpose of the Ombudsman is not to diminish the authority of the Contracting Officer,, but to communicate contractor concerns, issues, disagreements and recommendations to the appropriate Government personnel. All potential offerors should use the established channels to voice concerns before resorting to use of the Ombudsman. When requested, the Ombudsman will maintain strict confidentiality as to the source of concern. The Ombudsman does not participate in the evaluation of proposals or in the selection decision. Interested parties should direct all routine communication concerning this acquisition to the Contract Negotiator listed above. The Ombudsman should only be contacted with issues or problems that have been previously brought to the attention of the contracting officer and could not be satisfactorily resolved at that level. These serious concerns only may be directed to the Ombudsman, Mr Daniel L. Kugel, ASC/SY, Bldg 52, 2475 K St, Suite 1, Wright-Patterson AFB, OH 45433-7642, (513)255-3855, E-Mail kugeldl@sy.wpafb.af.mil. (0347)

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