BROAD AGENCY ANNOUNCEMENT Defense Industrial Supply Center, Code DISC-AP, 700 Robbins Avenue, Bldg. 3/C, Philadelphia, PA 19111-5098 Parts Supplier/Parts Integrator, Broad Agency Announcement (BAA), SP0500-97-BAA01, Amendment #1, Point of Contact (POC) Robert Tomczak, (215) 697-4717 This revised Broad Agency Announcement (BAA) is issued to amend the original BAA, SP0500-97-BAA01, published 4 February 1997. This amendment provides for changes in the original evaluation criteria, publishes DISC's intent to us 10 U.S.C. 2304(c) (3) as the authority for awards, and extends the BAA from three (3) years to five (5) years. The text of the subject BAA is amended in full to read as follows: The Defense Industrial Supply Center (DISC) is pursuing innovative methods of providing logistics parts and services in support of expendable items, commonly referred to as "bench stock," used in the maintenance, overhaul and repair of various aviation, ground and marine weapon systems at military depots, bases, camps and posts worldwide. The primary goal of this initiative is to elicit from industry, via this Broad Agency Announcement (BAA), innovative logistics techniques to provide efficient supply chain management at levels that will assure enhanced weapon systems readiness and provide surge and sustainment capability for military customers during times of industrial mobilization. This support concept is termed "Customer Oriented Supply chain Management" (COSCM). DISC intends to negotiate a number of COSCM contracts using procedures of other than full and open competition to implement this developmental logistics program in support of industrial mobilization and military readiness. The BAA focuses on industrial items that are typically located at or near the point of use (commonly referred to as "bench stock" or "pre-expend bin stock"). The purpose of the BAA is to announce DISC's intention to solicit industry for Concept Papers (CP) to support this initiative and enter into contractual agreement(s) with firm(s) to provide both supplies,supply chain management and anticipatory services directly to our customers. These contractors or "Prime Vendors (PV) will be expected to furnish industrial spare parts, ancillary supply chain management services, operate a seamless system, eliminate redundancies and simplify procedures so as to remove the constraints of the current procurement process for buying spare parts while providing 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 sources, manufacturers, producers, and other suppliers to furnish these parts and services during peace time, national emergencies, time of war, international turmoil and any unanticipated surge requirements. Also, 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. In addition, the CP should 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. The basic BAA will remain open for five (5) years to elicit innovative solutions. Firms may submit CPs at any time for any customer or combination of customer locations during the life of the BAA. However, the BAA will periodically have specific closing dates as my be cited on resultant addenda, whereby any vendor may offer new logistic approaches to COSCM. DISC will issue addenda to this BAA that will set forth the requirement s of particular site(s). Whether submitting a CP to the basic BAA or the an addendum, each CP should reflect the methodology by which the PV will function as a parts and services integrator who can provide cost effective methods of operation. any entity who desires to enter into a contractual agreement with DISC should prepare a CP in response to a customer's requirement s and in accordance with the evaluation criteria listed below. The offeror shall fully address in the concept paper each of the following areas that will be examined as part of the evaluation process. The factors are listed in descending order of importance. 1. Customer Oriented Supply Chain Management The Government will evaluate the concept for its ability to provide supplies, supply chain management, forecasting, engineering and technical services, and configuration management that will ensure that the necessary supplies and a tailored inventory management system are available for full support of industrial and/or base level support activities. The Government will evaluate the concept to ensure that it provides an eventual transition to 100% fill-rate, which will provide an uninterrupted flow of spare parts and industrial hardware to the line mechanics and technicians during both normal operations and surge periods. Therefore the concept paper should give sufficient detail so that the Government can understand the offeror's inventory control procedures, distribution plan, customer service plan, and quality control plan for all levels of operations. a. Technical Feasibility The Government will evaluate the COSCM concept to ensure that the offeror has the capability to perform in accordance with the concept submitted. b. Realism of Expected Outcome The Government will evaluate the COSCM concept for realism. That is, the Government will evaluate the concept paper to ensure that it is realistic for the work to be performed, that the various elements of the concept are consistent. 2. Industrial Readiness Support Concept The Government will evaluate the concept to ensure that supplies and supply chain management will be sustained in case of national emergency and will achieve industrial mobilization in time of war, international turmoil, and any other anticipated surges in requirements. Therefore, the concept should describe the approach to supporting this initiative and the manner in which the offeror will posses the: (1) Ability to forecast and react to surge requirements(2) Ability to rapidly escalate the operating tempo to support surge requirements and maintain level of sustainment. 3. Information Technology the concept paper will be evaluated for its ability to provide an interface with organic information systems and ho such interface will be transparent to the end user. In addition, the Government will evaluated the concept to determine the extent to which information technology is currently being employed and the extent to which the offeror intends to implement this technology in any resultant contract. The COSCM concept should allow for the technical interface with certain DoD information systems. There should be an open exchange of information between customer, suppliers and DoD ;through the state of the art technology. Therefore, the concept paper should include a detailed description of the offeror's information technological approach and how that approach will accomplish a seamless interface with the Government. 4. Past Performance/corporate Experience The Government will evaluate the offeror's experience with efforts of similar scale and scope. Therefore, the Offeror shall submit a listing of prior Government and Commercial contracts similar to the one offered in the concept paper. As a minimum the offeror shall submit information on each reference contract in the following format: (1) Name of project and/or contract number. (2) Company or Government Agency's name, address, phone number and point of contact. (3) The supplies and services furnished under the contract. (4) The contract type (firm fixed price, cost plus fixed fee, etc...) and total value. (5) The delivery requirements of the contract, your performance in meeting those deliveries and a description of any problems in performance and/or corrective actions taken with regard to the contract. The offeror should note that the Government may also seek past performance information from other sources know to the government to assist in its evaluation. 5. Management Plan The Government will evaluate the organization's control's and managerial approach over its workforce, suppliers and distribution and quality systems. The Government will evaluate the submitter's plan for selecting and monitoring performance of suppliers and subcontractors to ensure receipt of parts and material consistent with distribution needs and quality standards. Therefore, the concept paper should include information regarding your organizational and management plans. The Government will also request descriptive information regarding managerial/supervisory personnel dedicated to support the planned contract. The Government will evaluate the level of experience of these persons and their abilities in managing the COSCM process under the contract. 6. Competition Goals. The Government will evaluate the offeror's contractual alliances with suppliers, subcontractors and other supply chain components to ensure that there is robust competition at the supplier level. The Government will evaluate the concept paper to ensure that such alliances or contractual relationships exist with the offeror and how this is ultimately beneficial to the Government in terms of cost effectiveness, availability, and quality. Therefore, the concept paper should address the offerors contractual relationships, how the offeror employs these relationships to ensure competition at the supplier lever, for cost effectiveness, availability, and quality. 7. Small Business/Small Disadvantaged Business Program/Woman Owned Subcontracting Plan The Government will evaluate both large and small business offers to determine what portion of their proposal will be subcontracted to Small Business, (SB), Small Disadvantage Business (SDB), and Woman Owned Business (WOB) concerns in terms of percentages and dollars. the offeror should submit a plan for providing real business opportunity for SB, SDB, and WOB including specific socioeconomic objective for each year of the contract. 8. DLA Mentoring Business Agreements (MBA) Program as Found in DLAR 52.219-9002 or DLAR 42.219-9003. The Government will evaluate the offeror's plans to develop maximum opportunity for small businesses and small disadvantaged businesses by participating in the DLA MBA program. The DLA Mentoring Business Agreements (MBA) Program ensures that small and small disadvantage business concerns full participate in the COSCM program. A plan should be submitted that will address of how the offer has or will obtain one or more agreements between itself and a SB or SDB. 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 part of the negotiation process. Offerors are encouraged to recommend pricing arrangements suitable for the concepts selected for consideration. As pricing proposals are evaluated, the technical merit or expected performance outcomes will be considered more important than price. Firm fixed price type contracts are preferred. Those proposals realistically 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. Performance metrics will be established with each contract. 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. Addenda will periodically published for customers who have demonstrated an interest in the COSCM program. These addenda will include statement of function and current performance for the specific site(s). Performance periods may vary at each site and therefore will be detailed in the subsequent addenda to this announcement. Each addendum will provide 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 each customer site, current operations, and a complete parts listing. the submittal requirement for all Cps will be detailed in any forthcoming addenda or may be obtained from the point of contact (POC0 listed below. In the addenda a list of the Federal Supply Codes (FSC) will be furnished. Due to the enourmous size of the actual parts lists found on some of the sites, parts lists may be provided on 3 1/2 inch disk. These disks will 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 reference in each addendum. 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 #215-697-3630 or via Electronic Mail (E-Mail_ at rtomczak@disc.dla.mil or to DISC (Attn: R. Tomczak, DISC-AP), 700 Robbins Avenue, Bldg. 3/C Philadelphia, PA 19111-6098.

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