Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF JANUARY 15,1997 PSA#1762

Defense Advanced Research Projects Agency (DARPA), Contracts Management Office (CMO), 3701 N. Fairfax Dr., Arlington VA 22203-1714

A -- DUAL USE APPLICATIONS PROGRAM SOL PA97-12 DUE 031897 POC 1-800-DUAL USE(8:00AM through 6:00PM, EDT, Monday-Friday). The Dual-Use Applications Program (DUAP) has released a solicitation for the Commercial Operations and Support (O&S) Savings Initiative (COSSI). COSSI's mission is to develop and test a method for reducing Department of Defense (DoD) O&S costs by inserting commercial products and processes into fielded military systems. A fielded military system is one that has some current operational capability. The insertion of commercial products and processes is expected to reduce O&S cost by reducing the costs of parts and maintenance, reducing need for specialized equipment, increasing reliability, and increasing the efficiency of subsystems. This program seeks proposals submitted by firms or teams that include at least one for-profit firm. Proposals must also have the written support of a "military customer." Selected proposers will develop, manufacture and deliver prototype "kits" to the military for installation into a fielded DoD system. Each kit will consist of a commercial product or process that has been adapted, qualification-tested and readied for insertion. Proposers may also choose to offer maintenance service agreements for their kits to assure their performance and reliability. In Stage I of each selected project, DUAP and the chosen proposer will share the costs of developing and testing the kit. In Stage II, provided Stage I has been successful, the military customer may purchase reasonable production quantities of the kit and payment for their insertion into the fielded system will be the responsibility of the military customer. Proposals must include target prices for kits and_if you choose to propose them_the maintenance service agreements. It will be the service's goal to purchase the selected kits and, if applicable, maintenance agreements in Stage II: without recompetition, at a fair and reasonable price based on an analysis of the value of the kits to the Service (for O&S savings), and without requiring proposers to provide detailed cost and pricing data. To reduce the traditional administrative burden and oversight of government contracts, we plan to use during Stage I an innovative type of agreement _one not generally subject to the normal Federal procurement laws and regulations_known as an "Other Transaction." This type of agreement allows a great deal more flexibility and has far fewer regulatory requirements than a typical Federal Acquisition Regulation (FAR) contract. In particular, this initiative will not generally require government cost accounting standards nor government cost audits. Furthermore, intellectual property provisions may be negotiated that differ from those usually found in procurement contracts. $100M has been appropriated for this program. Proposals are due by 4:00 PM, March 18, 1997. Complete program information is included in a document entitled, "The Commercial Operations & Support (O&S) Savings Initiative, Dual Use Applications Program, Solicitation No. 97-12," dated January 15, 1997. You may download this document from the INTERNET (www.jdupo.darpa.mil/jdupo/index.html) or request this document by phone: 1-800-DUAL-USE (1-800-382-5873), Monday through Friday from 8:00 AM to 6:00 PM, Eastern Time, fax (703) 807-0678, addressed to: Dual Use Applications Program, PA #97-12, electronic mail: INTERNET address: Dual-Use@arpa.mil. (0013)

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