WL/MTPD, Building 22B, 2700 D Street, Suite 2, Wright-Patterson AFB, OH 45433-7405

A -- DEFENSE PRODUCTION ACT TITLE III POWER SEMICONDUCTOR SWITCHING DEVICE (PSSD) PRODUCTION CAPABILITY SOL BAA No. 97-04-MTPD DUE 100397 POC Willa M. Eichelman, (937) 255-9665, Ext 225 E-MAIL: eichelwm@wlmta.wpafb.af.mil, eichelwm@wlmta.wpafb.af.mil. A-INTRODUCTION: The Title III Program Office of the Wright Laboratory Manufacturing Technology Directorate is soliciting proposals in response to this Broad Agency Announcement for the creation of a long-term, financially-viable, domestic production capability of Power Semiconductor Switching Devices (PSSDs). The Air Force, as the Executive Agent for the Defense Production Act (DPA) (50 U.S.C. App. 2061, et seq.) Title III Program, is authorized to provide appropriate incentives to establish, maintain, modernize, and expand the production capacities of domestic sources for critical technology items and industrial resources essential for national defense. It should be noted that the production capacity for these devices must be a domestic source. The DPA defines "domestic source" as: a business concern that performs substantially all of the research and development, engineering, manufacturing, and production activities in the U.S. or Canada. While Title III projects are concentrating on technical aspects, the overall objective is to find and fund a business solution which will benefit the power devices industry and the Services. PSSDs required by the Services are grouped into two ranges. The devices are pervasive within defense systems and are used in a wide variety of military and commercial power control, conversion, and conditioning applications. These advanced power devices are essential to the development and deployment of advanced weapon systems such as the "More Electric" and other aircraft (B-1, F-18, F-22, V-22), the "More Electric" and other naval vessels (SC-21, CBX, NSSN), ground combat vehicles (M1, Bradley, HumVee), surveillance systems (AEGIS, Ground Based Radar, ASQ13F dipping sonar), missiles (Cruise, Sparrow, Titan), Directed Energy Weapon Systems (high power lasers, neutral particle accelerators, electromagnetic launchers), and a diverse array of applications within utility substations, locomotives, and electric vehicles. It is the Government's expectation that this effort will establish a source capable of meeting the ranges of device specifications of these systems. Many systems applications have dual (military and commercial) usage and have not been fully exploited due to the non-availability of high volume on-shore PSSD suppliers. The Government's interest is to form a partnership with the potential (larger) commercial market to optimize the quality, performance, reliability, and availability of PSSDs while concurrently reducing production costs. Inherent benefits of operating state-of-the-art facilities would ensure power device availability for DoD markets and potentially result in lowering energy weapons procurement costs. Due to the potential large commercial market with its possible profit potential, some level of cost sharing is required. Proposals in response to this BAA must be received by 03 Oct 1997, 1500 hours Eastern Daylight Time (EDT), addressed to WL/MTPD, Building 22B, 2700 D Street, Suite 2, Wright-Patterson AFB 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; a 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 which may permit subsequent submission of proposal dates. B-REQUIREMENTS: (1) Technical/Business Description: The purpose of this effort is to establish a long term, viable production process capable of consistently producing superior quality, cost-effective power semiconductor switching devices which exhibit improved performance and reliability over conventional power devices. Title III intends to establish one or more domestic suppliers with this capacity, focusing on the medium and high powerranges (medium: 600 -- 3,000 V, 50 -- 1,000 A, > 30 KHz switching speed; high: 3,000 -- 10,000 V, 500 -- 5,000 A, < 5 KHz switching speed). Device suppliers must be able to demonstrate production runs necessary to provide reliability data as typically provided to commercial and other customers. Production capacity must be aligned with business and marketing strategy. A Title III contract anticipates teaming arrangements that consist of a power device supplier and one or more device users. This contract shall contain a set of "work statements" for only that work deemed necessary to invigorate the contractor's business while positioning its operation to supply DoD markets. A current business plan should be enhanced by identifying potential areas for assistance from a Government partner, Title III. Proposals should focus on efforts that will reduce risks and costs, eliminate technical and market barriers, and accelerate market penetration. The proposal shall clearly state the range of device specifications to be produced. Appropriate areas for Title III assistance are shared work efforts focused on capacity expansion, quality and yield improvement, cost reduction, qualification assistance, and marketing. The role of the equipment, module, machinery, or systems manufacturer would be as a potential future customer. The power device user will verify the quality and usability of the devices through equipment, module, machinery, or systems testing, and then become positioned as a future customer. The proposal must address annual capacity, capacity expansion, technical maturity, production requirements, device specifications, markets to be penetrated, windows of opportunity, portfolios of products, past sales histories, product prices, sales costs, and sales methodologies. The discussion should also include internal aspects such as marketing strategies and manufacturing and management analyses, as well as external factors like industry competitors and outside influences. Another unique and appropriate area for Title III to provide assistance is in the area of a negotiated purchase commitment phase, which would center around production and sales. This purchase commitment phase would start only after the successful completion of the other technical efforts (i.e., facility upgrades, quality improvements, etc.). Title III would enter this business arrangement as a partner or "buyer of last resort" for those devices not sold to prime customers. If this assistance is contemplated, the proposal must include the following: the proposed quantity and price of devices to be considered, the rationale, justification, and benefits for including a purchase commitment. The total proposal cost must include the sum of all work and all purchase commitment costs (note: all contracts will be fully funded when awarded). (2) Deliverable Items: The following deliverable items shall be proposed: (a) Status Report, DI-MGMT-80386/T, monthly; (b) Funds and Man-hour Cost Report, DI-FNCL-80331/T, monthly; (c) Scientific and Technical Reports, Business Plan, DI-MISC-80711/T, semi-annual; (d) Scientific and Technical Reports, Marketing Plan, DI-MISC-80711/T, semi-annual; (e) Presentation Materials, DI-81373/T, as requested by Title III; (f) Scientific and Technical Reports, End of Phase Interim Report, DI-MISC-80711/T; (g) Scientific and Technical Reports, Project Final Report, DI-MISC-80711/T, draft and final versions. (3) Security Requirements: The work performed as a result of this BAA will be unclassified. (4) Other Special Requirements: Data generated by the resulting contract(s) may be subject to export control and/or subject to International Traffic in Arms Regulations. United States (US) organizations are asked to contact the contracting officer immediately if they anticipate the employment of foreign nationals for this program. C-ADDITIONAL INFORMATION: (1) Anticipated Period of Performance: The total period of performance is not anticipated to exceed 48 months. The purchase commitment phase should not exceed 24 months. Each proposalmust ascertain the appropriate periods to perform the technical and business efforts, as well as the purchase commitment phase. The Government reserves the right to fund any or all of the potential phases based upon the end-of-phase technical results and/or the business and market environment. (2) Expected Award Date: January 1998. (3) Government Funding Estimate: The Government anticipates one or more contract awards with total Government funding not to exceed $10M. (4) Type of Contract: Cost Sharing. Due to the size of the potential commercial market, some level of cost sharing will be required. Appropriate areas for cost sharing are: labor hours, process improvement, sample power devices, quality improvements, ISO 9000 certification, and device qualification. Inappropriate areas for cost sharing include past capital investments or capital investments planned. (5) Government Furnished Property: None contemplated. (6) Size Status: For the purpose of this acquisition, the size standard is 500 employees (SIC 3674). (7) Notice to Foreign-Owned Firms: Such firms are asked to immediately notify the Air Force point 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. A Wright Laboratory (WL) guide entitled "PRDA and BAA Guide for Industry" is available to assist offerors in proposal preparation. Copies may be requested from WL/PKO, Wright-Patterson AFB, OH 45433-6503, telephone (937) 255-6969, or directly from the Internet at http://www.wl.wpafb.af.mil/contract/prdag.htm. Reference for the DPA is Section 303, Title III of the DPA of 1950, as amended (50 U.S.C. app 2093). Technical and cost proposals, submitted in separate volumes, are required and must be valid for 180 days. Proposals must reference the above PRDA 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 and shall 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, material, 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 7 copies shall be provided, and one digital copy that is Microsoft Office for Windows-compatible. (3) Technical Proposal: The technical proposal shall address how the offeror proposes to meet the technical and business requirements, focusing on a concise business plan narrative that highlights Title III assistance. The proposed work tasks shall include both time and materials: man-hours, the number and mix of participating personnel (technical, managerial, and marketing), calendar time, and materials (devices consumed in test or distributed as samples). These work tasks will be formalized and compiled into the Statement of Work (SOW). Additional background information to be included into the technical proposal is: prior work in this area, and descriptions of applicable equipment, data, and facilities and resumes of personnel who will be participating in this effort. Therefore, the technical proposal shall include: (1) Statement of Work (SOW) detailing the technical/business tasks proposed, and must be suitable for contract incorporation, (2) Statement of Intention, if any, to use foreign nationals, (3) Breakout of the man-hours of each task in the SOW, (4) Identification of all subcontractors and the level of effort proposed, and (5) Schedule showing each major SOW task, the total period of performance, contract deliverables, and milestones. Offerors should refer to Section A of the WL Guide referenced to assist in SOW preparation. Any questions concerning the technical proposal or SOW preparation shall be referred to the Technical Point of Contact cited in this announcement. Offerors are hereby notified that the SOW may be incorporated, in total or any part thereof, by reference, in any resulting award. The paragraph numbering used in the Technical Proposal for the technical approach discussion, SOW tasks, and the Cost Proposal shall all correlate. Travel is projected to include, but not be limited to, quarterly reviews at locations selected by the Government. A total of 15 copies are required, and one digital copy of the Statement of Work (SOW) that is Microsoft Office for Windows-compatible. (4) Page Limitations: Technical proposals shall not exceed 150 pages, double-spaced, single-sided on 8.5" x 11" paper using 12 point or larger type. The page limitation includes all information, i.e., indices, photographs, fold-outs, and appendices. Pages in excess of this limitation will not be considered by the Government. There are no page limitations for the cost proposal. (5) Preparation Cost: The cost of preparing proposals in response to this BAA is not considered an allowable direct charge to any resulting or any other contract. However, it may be an allowable expense to the normal bid and proposal indirect cost as specified in FAR 31.205-18. E-BASIS FOR AWARD: The selection of one or more sources for award will be based on a complete evaluation of the offerors' 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 extent to which this market fits into the corporate strategic plan, using core competencies. (b) The extent to which there is stakeholder involvement in the project, demonstrated by teaming arrangements, where stakeholders are defined as OEM and military users. (c) The effectiveness and completeness of the proposal in demonstrating a thorough understanding of the factors necessary to achieve an economically-viable production capability. (d) The extent to which the offeror possesses the business capability, experience, and willingness to become a competitive merchant supplier of Power Semiconductor Switching Devices. (e) 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 forPower Semiconductor Switching Devices. (f) The extent to which the offeror's Business Plan is structured to ensure a viable business and prudent use of Title III assistance. (2) Technical Merit: (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 technical/business issues affecting the potential long-term viability. (c) Extent to which the proposed solutions have the potential for making a significant impact on the PSSD customer base. (d) Extent to which the proposed technical approach will lead to improved device quality, increased device yield, and reduced production costs. (e) Level and use of a strong quality system. (f) Organization, clarity, and thoroughness of the proposed Statement of Work (SOW). (3) Offeror's Capability and Experience: (a) The extent to which the offeror demonstrates a proven capability to produce similar products at production rates. (b) Degree to which the analyses, approaches, staffing methodology, and planning considerations demonstrate that the offeror has identified and understands the Government requirements. (c) Degree to which the proposal shows a high probability of success. (4) Cost Realism: (a) Extent to which the proposed cost bears a reasonable relationship to the proposed scope of work. (b) Amount 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. F-POINTS OF CONTACT: (1) Contracting/Cost: Ms. Willa Eichelman, Wright Laboratory, Manufacturing Technology Directorate, Processing and Fabrication Division, Defense Production Act Branch, WL/MTPD, Wright-Patterson AFB OH 45433-7739, telephone (937) 255-9665, Ext. 225, E-mail eichelwm@wlmta.wpafb.af.mil. (2) Technical: Mr. Eric Pohlenz, Wright Laboratory, Manufacturing Technology Directorate, Processing and Fabrication Division, Defense Production Act Branch, WL/MTPD, Wright-Patterson AFB OH 45433-7739, telephone (937) 255-9665, Ext. 224, E-mail pohlenel@wlmta.wpafb.af.mil. The Program Sponsors are Mr. Clarence Severt, Wright Laboratory, WL/POOD, Building 18, 1950 5th Street, Wright-Patterson AFB OH 45433, telephone (937) 255-6235, E-mail severtcw@wl.wpafb.af.mil; and Dr. George Campisi, Office of Naval Research, Attn. Code 334, 800 N. Quincy Street, Arlington, VA 22217-5660, telephone (703) 696-7739, E-mail campisg@onr.navy.mil. Direct all routine communication and questions concerning this BAA to the points of contact listed above. (3) An Ombudsman has been appointed to hear concerns 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. 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 Contracting Officer listed above. These serious concerns only may be directed to the Ombudsman, Mr. Michael S. Coalson, ASC/SYI, Bldg 52, 2475 K St, Suite 1, Wright-Patterson AFB, OH 45433-7642, E-mail coalsoms@sy.wpafb.af.mil, telephone (937) 255-9279, Ext. 232. See Note 26. (0227)

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