PARTS SUPPLIER/PARTS INTEGRATOR, BROAD AGENCY ANNOUNCEMENT (BAA), SP0500-97-BAA01 The Defense Industrial Supply Center (DISC), Philadelphia, is pursuing innovative methods of providing supply and incidental supply chain management of industrial spare parts for DISC customers. This concept is termed "Customer Oriented Supply Chain Management" (COSCM) and is designed to enable DISC to provide enhanced and more eff~icient logistics support to, and the defense readiness of, industrial spare part requirements at various military centers, bases, camps and posts worldwide. These facilities provide maintenance, repair and overhaul functions in support of aviation, automotive and marine weapon systems. This BAA focuses on industrial items that are typically located at or near the point of use (commonly referred to as "bench stock" or "pre-expended bin stock"). The object is to utilize advanced and innovative logistics techniques to provide eff~icient supply chain management and parts inventory control at a level that will assure weapon system readiness. The vendor supporting this program should investigate innovative and creative business solutions that lead to or enable advances in COSCM. The purpose of this BAA is to announce DISC's intention to solicit industry for concept papers (CPs) to support this initiative and enter into contractual agreement(s) with a firm(s) who will function as a parts supplier/parts integrator and/or a "Prime Vendor" (PV). This entity will be expected to furnish industrial spare parts and incidental supply chain management, operate a paperless system, eliminate redundancies and simplify procedures so as to remove the constraints of the current procurement process for buying spare parts, and also provide a cost-effective method of operation. A CP will outline, describe and otherwise explain the vendor's approach to supporting this initiative and the manner in which it will maintain source(s), manufacturers, producer(s), and other supplier(s) available for the furnishing of these spare parts and/or other services in case of a national emergency, and to achieve industrial mobilization in time of war, international turmoil, and any unanticipated surges in requirements. Any entity who desires to enter into a contractual agreement with DISC should prepare a CP in response to those requirements set forth in each addendum to this BAA in which you wish to participate. Each CP should reflect the methodology by which the PV will function as parts supplier/parts integrator who can provide cost-effective methods of operation. The CP should also address innovative methods of incentivizing performance and reducing costs as performance progresses and the PV realizes economies of scales throughout the life of the contract. Vendor performance will be measured in terms of parts availability, inventory control, parts distribution (when applicable), product quality and cost savings. In addition, the vendor is expected to provide performance information during the contract in an electronic data format which can be used by both DISC and the customer. DISC seeks innovative methods to incentivize performance and reduce cost in the outyears and as the contractor realizes economies of scale. Performance measures, goals and incentives will be negotiated for each year of the contract. Specific performance goals will be established for use by DISC in determining whether any unilateral options available to DISC will be exercised All Concept Papers will be evaluated by the following criteria: (1) COSCM Concept should address an inventory control and distribution system, describing the control mechanisms that will be utilized to monitor the status of parts provided, ability to incorporate new parts, acknowledge damaged and excess materials, and record how parts will be distributed to the end user as required at each site. In addition, a quality plan should be addressed, to describe how a firm maintains and/or provides product traceability, inspection, test controls, process controls, corrective actions, warranties (remedies for non-conforming material) and its calibration system, (2) Industrial Readiness Support Concept that enhances the defense readiness and mobilization including the capability to respond to unforeseen increases in requirements due to military mobilization or operational rescheduling in both the short term (surge capability) and the long term (sustainment), (3) Past Performance and Corporate Experience should include references for the last three years, both commercial and Government, for whom the vendor has provided similar items with similar quality requirements, levels of complexity, support and availability, (4) Management Plan should describe the process in which product price and full cycle costs reductions will be experienced for each year of the contract as well as a plan to achieve a Government/contractor share ratio for price reduction savings for each year of the contract, (5) Small Business/Small Disadvantaged Business and Women-Owned Subcontracting Plan in accordance with the provisions of FAR 52.219-9, and (6) DLA MENTORING BUSINESS AGREEMENT (MBA) PROGRAM as found in DLAR 52.219-9002 & DLAR 52.219-9003. These clauses will be made available in the resulting addenda to this announcement when required. The order of importance for these factors shall be established in each subsequent addendum. CPs submitted shall be evaluated against the established criteria and if deemed to have merit, the Government will ask offeror(s) to submit proposal(s) for subsequent negotiations for possible contract awards. 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 and the manner in which price will be established are also important factors. The final award decision will then reflect an integrated analysis of expected outcomes and the price to achieve these results. Vendor's CPs will be submitted in response to forthcoming addenda to this announcement. These addenda will include statements detailing the desired level of support for the sites being considered for this initiative. Initially, DISC will be requesting CPs for three specific sites, Oklahoma City -- Air Logistics Center (OC-ALC), Tinker AFB, OK (see addendum #1), Warner Robins -- Air Logistics Center (WR-ALC), Robins AFB, GA (see addendum #2), Naval Depot, Naval Air Station North Island (NADEP-NI), San Diego, CA (see addendum #3) and the Ogden -- Air Logistics Center (OO-ALC), Hill AFB, Ogden, UT. Performance periods may vary at each site and therefore will be detailed in the subsequent addenda to this announcement. Each of these addenda willprovide instruction on who to contact at DISC and how to obtain a copy of the Proposal Information Package (PIP). The PIP will contain a tailored description of the requirements for each customer site and a complete parts listing. In order to minimize unnecessary effort in concept paper preparation and review, it is suggested that concept papers be submitted in two stages. All vendors responding to any forthcoming addenda are encouraged to prepare a CONCEPT PAPER ABSTRACT in advance of a full concept paper. This should be a summary document not to exceed 10 pages. Upon review DISC will provide written feedback on the likelihood of a full concept paper being considered. At this time a complete concept paper should be submitted. The submittal requirements for a concept abstract and the CP will be detailed in any forthcoming addenda. In these addenda a list of the Federal Supply Codes (FSC) will be furnished as well as a description of the level of support that will be needed. Due to the enormous size of the actual parts lists found on some of the sites, parts lists may be provided on 3-1/2 in. disk. These disks should at a minimum contain a list of the parts by National Stock Number (NSN) or Original Equipment Manufacturer's (OEM) part number and will also include the annual estimated usage. To receive the PIP for a particular site, all interested parties should contact the assigned DISC representative for that site as will be referenced in each addendum. This BAA will be effective for a period not to exceed three (3) years and will be periodically re-published, during that time, for the inclusion of future addenda. In addition, this announcement, addenda to this announcement, PIPs and data listings can be found on the DISC World Wide Web Site which can be accessed at http://www.disc.dla.mil. Any further information regarding this announcement can be directed to the attention of Mr. Robert Tomczak, who can be reached at (215) 697-4717, FAX # (215) 697-0355 or via Electronic Mail (E-MAIL) at rtomczak@~disc.dla.mil or to DISC, 700 Robbins Avenue, Bldg. 36/3 (Attn: R. Tomczak, DISC-PPI), Philadelphia, PA 19111-6098. Information regarding a specific addendum should be requested from the DISC point of contact cited in the subject addendum.

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