INDUSTRY FORUM FOR BASE OPERATING CONTRACT The U.S. Navy will host an industry forum on Guam, 8 & 9 August 1997, PACNAVFACENGCOM seeks industry recommendations regarding the provision of Base Operating Support services for all Naval Activities on the Island of Guam, a U.S. Territory in the Marianas Islands. In response to the announced study of some 1100 positions by the Chief of Naval Operations in January 1997, this action will comply with procedures prescribed in Office of Management and Budget Circular A-76, the "Commercial Activities" program. Services involved will include maintenance of all buildings and grounds, maintenance and operation of over 1800 Family housing units, Logistics and Ordnance handling, operations and maintenance of all bachelor quarters and messing facilities, minor and special project level construction and repair services, water system and related utilities infrastructure maintenance and operations, among others. Up to three procurement actions may be required to complete the required studies. Estimated total value of the contract(s) exceeds $100 Million per year, with 20% or more of the work to be ordered under indefinite quantity provisions. The expected term of the contract will consist of a three month phase in, followed by seven or more one year options. The contract type will be a combination Fixed Price/Indefinite Quantity with significant Award Fee provisions. It is our intent to solicit recognized service industry leaders with an established international track record. Past performance will play an important role in the proposed Best Value source selection. The source selection will also recognize and reward those companies with a proven quality control program. Companies already holding ISO-9000 (series) certification will receive maximum credit. Those in the process of being certified will receive some credit. Past recognition under ISO-9000 (series) or other recognized third party quality award systems (Malcom Baldridge,etc.) will also be considered. The expected procurement timeline will call for 1st proposals around June 1998. The solicitation package will incorporate some new concepts. It will introduce the concept of Outcome Oriented Contracting. Outcome oriented specifications represent the next logical step beyond performance based specifications in service contracting. This further level of abstraction will describe the desired end state in terms of recognizable customer satisfaction outcomes, leaving considerable latitude for creative or innovative approaches by the proposer. The proposers themselves, based on their expertise and experience in provisions of comparable services will define many of the final contractual requirements, in a process that equates to "design-build" for services. Along with emphasis on demonstrated quality control, this approach is expected to lead to better service at lower costs, as well as reduced Quality Assurance staffing requirements. The contract will also contain cost control and cost reduction incentives, and may include provisions for Contractor proposed revenue generation of offset operating costs, all tied to the Award Fee structure. PACNAVFACENGCOM intends to take full advantage of the Federal Acquisition Reform Act (FARA) provisions designed to achieve efficient competition, and minimize the proposal preparation burdens on industry. The planned first stage of the source selection process will involve Oral Presentations and limited documentary imput. Tentatively planned for September 97, this stage will focus on directly relevant past performance, (i.e. success with large scale, multi-function BOS contracting in remote locations, and experience in conversion from Government to Contractual performance under A-76 provisions). Proposed management staffing, quality certification status (as described above) and understanding of the unique aspects of the Guam labor market will round out the information sought through first stage oral presentations. Based on the oral presentations, an "Advisory Downselect" will be issued to all but the top grouping of proposers. The Advisory Downselect will suggest avoidance of significant commitment of resources in pursuit of an unlikely award, suggesting instead the pursuit of alliances or subcontract opportunities. The government will invite proposals from the top grouping in response to an RFP expected to be issued in the March 98 timeframe. These detailed proposals will include the proposer's offered Statement of Work (detailed listing of work items and levels of service proposed as a Best Value package to meet the Government's stated outcomes), along with method of operations, staffing, and proposed costs. Final source selection will be that contractor providing the best overall value to the government, price and other factors considered. Following selection of the Best Value proposal, a cost comparison will be made between the winning (Best Value) private proposer and the in-house (Government) proposal. The Government proposal and staffing plan will be adjusted in accordance with A-76 provisions to ensure both parties to the final cost competition are proposing to meet the same requirements and levels of service. An industry forum is planned for Friday and Saturday, 8 and 9 August 1997, on Guam. On Friday, PACNAVFACENGCOM will provide a briefing regarding the alternative acquisition plans and the Outcome Contracting methodology. Feedback, either privately or during open discussions, will be solicited from industry representatives on both subjects. On Saturday, a contractor forum will be offered wherein potential prime contractors may present information regarding their employment policies, mentorprotege programs etc. This will also provide an opportunity to meet and form alliances with current contract service providers. Subcontracting plans to mitigate effects on current (incumbent) small and small disadvantaged business contractors will be a source selection criteria. Interested parties are encouraged to plan a significant research effort to correctly assess the Guan labor and business climate. Parties planning to attend the industry forum are requested to coordinate with the Outsourcing Team leader, CDR J.P. Gerner, PACNAVFACENGCOM, Pearl Harbor, Hawaii, at 808-471-8327.

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