Defense Supply Center Columbus/COV; 3990 E. Broad Street; Columbus, OH 43216-5000

59 -- VIRTUAL PRIME VENDOR FOR ELECTRONIC COMPONENTS SOL BAA VPV 96-02 Amend 0001 DUE 022897 POC Point of Contact -- Jeff Dixius, Contract Specialist, 614-692-7348, Jim Secrist, Contract Specialist, 614-692-7346 Broad Agency Announcement (BAA VPV 96-02) Amendment 0001 The Defense Logistics Agency (DLA) serves within the Department of Defense (DOD) as a wholesale level industrial distributor of spare parts, maintenance, repair and operating supplies for the military services worldwide. DLA is interested in demonstrating unique and innovative approaches for providing logistics support to the military services that will maintain the highest state of weapon systems readiness, to include surge and sustainment capability to enhance the defense mobilization base, by improving the logistics support provided to the military service's maintenance facilities. These facilities perform the major repair and/or rebuild of weapon systems and major components. To facilitate performing to the expected objectives of the program, new strategies are required utilizing advanced manufacturing, distribution, and materials management techniques to improve repair turn around time, and the ability of the industrial base to respond to changes in customer demand and effectively reduce the overall cost to the government. This requires integration of commercial and military supply and distribution systems, electronic data interchange, management of demand based customer inventory and direct vendor delivery. The desired level of performance is broadly categorized in terms of improving order fulfillment cycle-time, product quality, total cost, and the capability to deliver other information and/or technical support services. The private sector provider of this service will act as an extension of DLA and will be expected to establish an intelligent partnership between the maintenance customer, DLA and other supply sources; and to use innovative, state of the art methodologies to reorganize, synchronize, supplement and otherwise improve the effectiveness of the support provided by the existing DOD supply chain processes and systems. The purpose of the BAA is to announce that DLA is soliciting concept papers for this effort under the VirtualPrime Vendor (VPV) Program. Concepts should be directed at improving the supply support for the Avionics Manufacturing Shop and/or the Avionics and Electronic Warfare (EW) Repair Shops at Warner Robins Air Logistics Center, Robins Air Force Base, Georgia. A key goal is to develop a process which can be exported from this site to other DOD locations involved in avionics/electronics manufacturing and/or repair. The successful VPV contractor(s) will be expected to provide and/or coordinate the supply support effort for the full range of parts and components consumed in the manufacture or repair of avionics/electronic warfare items. Your concept paper should not only address your company's ability to provide items to the Warner Robins facility, but should also address the ability to provide items to other DLA customers worldwide, taking into consideration such factors as distribution methods, manufacturing sources, item availability, market conditions, etc. Even though the initial pilot/demonstration site will be the Avionics/Electronic Warfare Shops at Warner Robins ALC, we also strongly encourage and will consider concept papers for similar avionics/electronics shops at other DOD locations, e.g., other Air Logistics Centers; Tobyhanna Army Depot; NAWC/Hughes-Indianapolis; Naval Aviation Depot, Jacksonville, FL; etc. We anticipate that the second demonstration site will be the Electronics Repair Operations at Tobyhanna Army Depot. It will be incumbent on the VPV contractor to determine the best method of support to meet the performance criteria of the program. Teaming arrangements between developers and systems integrators, universities, research institutes, or other collaborators, are encouraged, and single offerors should anticipate the possibility of being expected to work collaboratively with other organizations if they receive an award. PROGRAM SCOPE: Concepts for individual efforts should not exceed a total of five years, and should also include procedures that, if adopted, would last until the extinction of the weapon system. The primary objective is to lower overall logistics support costs. Technologies which have a significant impact on key logistics metrics, such as customer wait time, backorders, customer complaints, cost of quality, inventory reduction, administrative procurement lead-time, and combat readiness, will be given highest priority. Concept papers are to include cost data, as well as proposer's preferred type of contract. Contract awards, if any, are expected to be made during the second quarter of fiscal year 1997. Awards may be made under FAR 6.302-3. Progress, and performance, will be assessed monthly and action items will be determined to ensure timely completion of the project and to capitalize on findings. Each year of the contract must have performance objectives which are a part of the option decision evaluation, to include achievement of socioeconomic objectives. EVALUATION CRITERIA: Concepts will be evaluated on technical merit and price or cost. The technical evaluation criteria are listed below in descending order of importance: 1. Integrated Supply Chain Management Concept 2. Industrial Readiness Support Concept 3. Past Performance/Corporate Experience 4. Product Quality/Warranty 5. Support for Small and Small Disadvantaged Business 6. MBA Program 7. Management Plan During the initial development of concepts, complete pricing may not be available or realistic. Those concepts, if any, selected for full discussion will provide complete pricing proposals as a part of the negotiation process. Offerors are encouraged to recommend pricing arrangements suitable for the concepts selected for demonstration. As pricing proposals are evaluated, the technical merit or expected performance outcomes will be considered more important than price. Those proposals committed to product or full cycle cost reductions over the demonstration period will be considered more favorably. Customer affordability and cost/price realism are also important factors. The final award decision will then reflect an integrated analysis of expected outcomes and the price to achieve these results. 1. Integrated Supply Chain Management Concept The Avionics/Electronics Repair Shops and the Avionics Manufacturing Shop will be evaluated separately as listed below, however, the following points are implicit to both: the concept(s) should add no administrative cost to the customer; concepts should allow for the elimination or reduction of Government inventory to the bare minimum, including transfer of Government inventory for the VPV's use in the commercial marketplace when in the Government's best interest; and there should be no significant changes to local ADP systems or existing processes. The offeror's information system shall be embedded in business practices and provide for necessary interfaces with Air Force and DLA Legacy systems. a. Avionics/Electronics Repair Shops. (1) The Government will evaluate the concept for anticipating the customer's needs, forecasting the customer's parts/materiel requirements, purchasing, inventory control, engineering support, technical services, storage and distribution to achieve the objective of a 100% on demand issue rate to the Shop Service Centers (SSCs) supporting the avionics/electronic repair shops for the common commercial bit and piece parts/materiel across 7,300+ National Stock Numbers (NSNs) and 121 Federal Supply Classes (FSCs). Reduction of the retail inventory levels at the SSCs each year of the contract until the essential minimum necessary to support the repair work with parts/materiel available 100% on demand is reached will be evaluated. (2) The concept and network of manufacturers/suppliers for estimating delivery dates, and quickly obtaining non-stocked parts/materiel needed by the SSCs supporting the repair shops will be evaluated. (3) Arrangements with manufacturers and other parts/materiel suppliers that enable on demand support across 7,300+ NSNs and 121 FSCs will be evaluated. This includes arrangements with required manufacturers/suppliers for parts/materiel on Qualified Products Lists (QPLs), Qualified Manufacturers Lists (QMLs) and Qualified Suppliers Lists (QSLs). (4) The Government will evaluate the method by which you plan to provide items, i.e., your own sources of supply, government inventory, government contracts, etc. (5) The Government will evaluate the proposed closed-loop Electronic Commerce/Electronic Data Interchange (EC/EDI) information systems solution(s) and interfaces to DLA and Air Force legacy systems to receive/process orders, issue/deliver/receive parts/materiel, capture demand/consumption data, forecast requirements, effect invoicing/ payment, permit DLA to recover its administrative and materiel investment costs, etc . Ease of Government access to order status information on a near real-time basis and a method for the customer to access a single point to place orders will be evaluated. (6) The concept for providing engineering support to identify parts/materiel that are currently used by the avionics/electronics repair shops which may become unavailable in the future, and to make recommendations for possible substitute parts or life buys, etc. will be evaluated. b. Avionics Manufacturing Shop (1) Phase I. The Government will evaluate concepts for rapidly pricing all parts/materiel needed for a given Bill of Materiels (BOM) and, if the customers' project is approved, subsequently supplying all the parts/materiel to the Avionics Manufacturing Shop in accordance with established delivery schedules. (2) Phase II. In this phase, WR-ALC will give their customers' requirements for a job to the VPV. The Government will evaluate concepts to determine the VPV response time for providing a BOM for required parts and their costs to the Avionics Manufacturing Shop. If the customer decides to fund the job, then the VPV will provide the required parts to the Avionics Manufacturing Shop in accordance with established delivery schedules. 2. Industrial Readiness Support Concept The Government will evaluate the concept for providing parts and materiel to meet surge/sustainment needs of the avionics/electronics repair shops during contingencies. This will include: a. The ability to forecast and react to surge requirements. b. The ability to rapidly escalate the operating tempo to support surge requirements, and maintain a level of sustainment. 3. Past Performance/ Corporate Experience a. Concept papers will be evaluated to determine if they demonstrate a level of past performance that provides a reasonable assurance that the Government's objectives will be met. A record of marginally acceptable or unacceptable past performance will have a negative effect on the evaluation rating for this factor. Experience (similar to the stated requirements) in providing integrated supply chain management for parts/materiel support to avionics/electronics manufacturing and repair shops will be evaluated. This shall include the firm's own corporate entity and any partners, joint ventures, subcontractors, alternate sources, etc., who will be performing on the proposed concept demonstration contract. The Government will evaluate the following: (i) The length of experience (ii) Annual sales dollar volume (iii) Number of customers serviced (iv) Total average number of orders processed and total average number of line items delivered weekly based on the latest yearly reporting period. (v) Performance records of contracts where you have served as an integrated supply chain manager within the last three years. b. Quality awards, distinctions, or certifications received that indicates a high-quality process for performing the work required/concept to be demonstrated will be evaluated. c. The experience of personnel who will play a key role in assuring total success and customer satisfaction will be evaluated. 4. Product Quality/ Warranty The Government will evaluate the following: a. Quality system. b. Warranty provisions. c. System for obtaining, handling, and supplying OEM certified parts and parts/materiel required on/from QPLs, QMLs and QSLs. 5. Support for Small and Small Disadvantaged Business The Government will evaluate the offeror's plan for providing real business opportunity for small businesses (SB) and small disadvantaged businesses (SDB), including specific socioeconomic objectives for each year of the contract. Plans to develop additional opportunities will be evaluated as part of the subcontracting plan. 6. Mentoring Business Agreements (MBA) Program The Government will evaluate offerors' plans to develop maximum opportunity for small businesses and small disadvantaged businesses by participating in the DLA MBA Program. Past or current participation in the Program (i.e. teaming, joint ventures, etc.) will also be evaluated.: 7. Management Plan a. The criteria and plan for selecting and monitoring performance of suppliers and subcontractors to ensure receipt of parts/materiel consistent with cost effectiveness, distribution needs, and quality standards will be evaluated. b. The plan to achieve product price and full cycle costs reductions each year of the contract as productivity efficiencies are realized will be evaluated. A plan to achieve a Government/contractor share ratio, and the proposed ratio, for price reduction savings for each year of the contract will be evaluated. The Government may require oral presentations for clarification purposes, and offerors may make oral presentations as a supplement to the written concept paper. Details of the oral presentation, if requested, will be provided at a later date. GENERAL INFORMATION: This BAA will remain open for 36 months. This notice, in conjunction with the document BAA VPV 96-02 Amend 0001, Proposer Information Packet (PIP), constitutes the total BAA. The PIP provides further information on the following: areas of interest, general expectations, submission process, evaluation criteria, concept abstract format, and concept paper format. The PIP is required, and may be obtained by electronic mail, or fax. A disk containing the average monthly rate of consumption for the past 12 months for buildings 640 and 645 of WR-ALC for the applicable NSNs will be made available upon request -- contact Jeff Dixius or Jim Secrist for details. A formal RFP or other solicitation regarding this announcement will not be issued. The Government reserves the right to select to award all, some, or none of the concept papers received. All responsible sources capable of satisfying the Government's requirements may submit a concept paper which will be considered by DLA. In order to minimize unnecessary effort in concept paper preparation and review, offerors are encouraged to submit a brief concept abstract in advance of a full concept paper. An original and four copies of the concept abstract must be submitted on or before 4:00 PM, January 24, 1997, to receive an answer prior to the submission date for full concept papers. Upon review, DLA will provide written feedback on the likelihood of a full concept paper being considered. The initial administrative cut-off date for full concept papers is, February 28, 1997. Concept papers received on or before that date will be considered for initial contract awards. Concept papers received subsequent to that date will be considered for award at a later date. Offerors must submit an original and four copies of full concept papers by 4:00 PM February 28, 1997, in order to be evaluated. Concept papers not meeting the format described in the PIP may not be reviewed. Concept papers must be sent by mail, facsimile copies will not be accepted, any so sent will be disregarded. All administrative correspondence and questions to this BAA, including requests for information on how to submit a concept abstract or concept paper to this BAA, shall be directed to one of the administrative addresses below, e-mail is preferred. Administrative Addresses Mailing: Defense Supply Center Columbus; DSCC-COV; Attn: Jeff Dixius; 3990 E. Broad Street; Columbus, OH 43216-5000 E-mail: for Jeff Dixius: "Jeffrey_Dixius@dscc.dla.mil" for Jim Secrist: "James_Secrist@dscc.dla.mil" Phone: Jeff Dixius (614)692-7348 Jim Secrist (614)692-7346 Fax: (614)692-3120 (0366)

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