SUPPLIER UTILIZATION THROUGH RESPONSIVE GROUPED ENTERPRISES The Defense Logistics Agency (DLA) serves within the Department of Defense (DoD) as a wholesale level industrial distributor of spare parts, maintenance, repair and operating supplies for the military services worldwide. DLA, in partnership with the DoD's Joint Strike Fighter Program, is interested in demonstration of unique and innovative approaches to supplying materials and components used within aircraft production lines as well as U.S. Military Services' maintenance facilities and other applications to be submitted by the offeror. Additionally, these approaches must address the capability to meet unexpected increases in demand (surge) for emergency situations and the continuing fulfillment (sustainment) of these requirements beyond the initial demand ramp up. Surge and sustainment capability should not depend on inventory increases but be an inherent feature of the supplier chain. A primary objective of this effort is to enhance DLA's ability to support a high state of weapon systems readiness by providing on-time delivery of items despite difficulties in forecasting variations in demand. The effort envisions the use of advanced manufacturing management practices that will improve parts availability while optimizing cost effectiveness. An emphasis is placed on enhancing the ability of the industrial base to respond to abrupt unanticipated increases in demand (including peacetime demand spikes and wartime surge/sustainment requirements). The desired level of performance is broadly categorized in terms of improving order fulfillment, cycle time, product quality, total cost, and the capability to deliver other information and/or technical support services. The private sector provider of these services will initially be asked to develop and validate an operational concept providing parts to DLA and via direct delivery to its customers. In a later concept expansion phase, the provider will act as an extension of DLA, establishing a partnership between maintenance customers, DLA and other supply sources. Ultimately, a successful initial demonstration will allow providers to expand their support beyond DLA to other military and commercial customers. The lessons learned from these efforts will be used to demonstrate the ability to affordably support the Joint Strike Fighter Program. The purpose of this BAA is to announce that DLA, under its Supplier Utilization through Responsive Grouped Enterprises (SURGE) program, is soliciting concept papers which will embody these objectives. More specifically, the SURGE program seeks to demonstrate a concept that uses "group technologies" as a basis for providing flexible supply chain management. Group technologies is based on the principle that efficiencies can be gained by arranging the production of individual items into groups which are based on common manufacturing processes SURGE program seeks to demonstrate this concept through the grouping of DLA items so that they can be more efficiently produced by industry suppliers. It will focus on combining the purchase of larger groups of similar items such that they can be manufactured on common production lines. Since it can be statistically shown that the demand for these larger groups will be much less volatile than that for each of the constituent items, factory planning can be greatly improved. This program seeks to confirm that better prediction of true production needs can lead to more cost-effective factory utilization, lower inventories, and much greater responsiveness in filling customer orders. To accomplish this, the SURGE program utilizes a phased approach beginning with the demonstration (Phase I) of this concept on a sample group of DLA items to be selected by the respondent. This program is expected to continue with a broader follow-on Phase II, which will include a larger number and greater diversity of parts. This BAA targets the concept demonstration (Phase I) of SURGE but offerors should formulate their responses considering that a rapid expansion of scope will follow pending successful concept demonstration. Offerors may (optionally) wish to enclose, as part of their Phase I concept paper submission, details of how this rapid expansion of scope (beyond Phase I) could be approached. Phase I concept papers which include promising Phase II scope expansion details may be considered at a later date for future funding to further develop their Phase II approaches. Development of concept papers for Phase I will be at no expense to the Government. DLA's customers will continue to submit requisitions to DLA during the initial demonstration phase. After a successful initial demonstration, follow-on SURGE applications will increase the number and type of items supported and require offerors to process requisitions. Surge offerors will then be developing into Virtual Prime Vendor class providers, wherein DLA's customers are serviced with a near 100% fill rate, a high level of direct vendor delivery and with minimal DLA administrative processing. A basic tenet of the program is that every concept paper include a realistic estimate of its quantitative benefits. This projection of expected results will then become the benchmark against which success will be measured. The Surge program envisions planning, forecasting and filling demand requirements by grouping items with common manufacturing processes rather than using a more traditional item by item management approach. Concepts submitted under this BAA should be directed at improving the supply support for a selection of DLA managed consumable items that would most benefit from a grouped technology approach, e.g., aircraft structures/aircraft engines. It will be incumbent on the contractor to optimize the specific parts groupings to take full advantage of this approach and to determine the best method of support to meet the performance criteria of the program. Teaming arrangements between developers and systems integrators, universities, research institutes, or other collaborators, are encouraged, and single offerors should anticipate the possibility of being expected to work collaboratively with other organizations if they receive an award. Program Scope: DLA will provide a list of the National Stock Numbered (NSN) items from which candidate items may be considered for support under the Surge program concept. Other items may be added by offerors. Concepts for individual efforts should not exceed a total of five years, and should also include procedures that, if adopted, would provide for continuity of support until the extinction of each weapon system involved. A major objective is to develop a fully integrated robust supplier network to improve weapon system readiness while lowering overall logistics support costs. Innovative approaches which can most improve key logistics metrics, such as customer wait time, back orders, customer complaints, cost of quality, inventory reduction, administrative/ procurement lead time, and combat readiness (including surge capability), will be given highest priority. Concept papers should address economic issues, as well as proposer's preferred type of contract. Concept submissions are expected to integrate the supplier chain and advance DLA's customer support capability embodying this new approach. It is not the intent of this BAA to obtain submissions which are merely consolidations of existing sources without the promise of dramatic improvement in responsiveness, cost effectiveness and ability to deal with unforeseen demand fluctuations. Contract awards, if any, are expected to be made during the second quarter of fiscal year 1998. Awards may be made under various possible authorities, including, for example, FAR 6.302-3, Industrial Mobilization, or competitively in accordance with 10 U.S.C. 2302 or 2305. Progress and performance will be assessed monthly and action items will be identified to ensure timely completion of the project and to capitalize on findings. Each year of the contract must have performance objectives which are a part of the option decision evaluation, including achievement of socioeconomic objectives. Evaluation Criteria: Concepts will be evaluated on technical merit and price or cost. The technical evaluation criteria are listed below in descending order of importance: 1. Technical Merit of the Application of Group Technology 2. Industrial Readiness Support Concept 3. Information Technology 4. Integrated Supply Chain Management Concept 5. Past Performance/Corporate Experience 6. Management Plan 7. Competition Goals 8. Product Quality/Warranty 9. Support for Small and Small Disadvantaged Business 10. DLA Mentoring Business Agreement (MBA) Program. During the initial development of concepts, complete pricing may not be available or realistic. Those concepts selected for full discussion will provide complete pricing submissions as a part of the negotiation process. Offerors are encouraged to recommend pricing arrangements suitable for the concepts selected for demonstration. As pricing submissions are evaluated, the technical merit or expected performance outcomes will be considered more important than price. Those concepts committed to product or full cycle cost reduction over the demonstration period will be considered more favorably. Customer affordability and cost/price realism are also important factors. The final award decision will reflect an integrated analysis of expected outcomes and the price to achieve those results. A key objective of the Surge program is to provide an improved level of customer support at no increase in cost and preferably at a reduction in overall cost. The Government may request oral presentations for clarification purposes. Details of the oral presentation, if requested, will be provided at a later date. General Information: This BAA will remain open for 60 months. This notice, in conjunction with the document BAA SPO410 97 S 0005, Proposer Information Packet (PIP), constitutes the total BAA. The PIP provides further information on the following: areas of interest, general expectations, submission process, evaluation criteria, concept abstract format, and concept paper format. The PIP is required, and may be obtained by electronic mail, or fax. A disk containing a listing of DLA managed candidate NSNs along with their average monthly rate of consumption for the past 12 months will be made available upon request contact Sherrill King for details. A formal RFP or other solicitation regarding this announcement will not be issued. The Government reserves the right to select to award all, some, or none of the concept papers received. All responsible sources capable of satisfying the Government's requirements may submit a concept paper which will be considered by DLA. In order to minimize unnecessary effort in concept paper preparation and review, offerors should submit a brief concept paper abstract in advance of a full concept paper. An original and four copies of the concept abstract must be submitted on or before 4:00 PM, November 14, 1997, to receive an answer prior to the submission date for full concept papers. Upon review, DLA will provide written feedback on the likelihood of a full concept paper being considered. Firms may submit concept papers at any time during the life of the BAA. However, the BAA will periodically have specific closing dates as may be cited on resultant addenda, whereby any vendor may offer new logistics approaches for Surge. All concept papers will be evaluated regardless of when received. Depending on the evaluation of concept papers, full submissions may or may not be requested. Should a full submission be requested, submission information will be provided. When submitting concept papers to this BAA or to an addendum, each paper should reflect the methodology by which the offeror will function as a parts supplier who can provide cost effective methods of operation. Any entity who desires to enter into a contractual agreement should prepare a concept paper in response to this announcement, its Proposer Information Packet and the evaluation criteria listed below. The initial administrative cut-off date for full concept papers is January 16, 1998. Concept papers received on or before that date will be considered for initial contract awards. Concept papers received subsequent to that date will be considered for award at a later date. Offerors must submit an original and four copies of full concept papers by 4:00 PM, January 16, 1998, in order to be evaluated. Concept papers not meeting the format described in the PIP may not be reviewed. Concept papers must be sent by mail, facsimile copies will not be accepted, any so sent will be disregarded. Addenda will be periodically published for customers who have demonstrated an interest in the SURGE program. These addenda will include statements outlining the general area of emphasis, types of commodities, weapon systems being supported and any other special requirements. Performance periods may vary from addenda to addenda. Each addendum will provide instruction on who to contact at DLA ICPs and how to obtain a copy of the Proposer Information Package (PIP). The submittal requirements for all concept papers will be detailed in any forthcoming addenda ormay be obtained from the point of contact (POC) listed below. All administrative correspondence and questions to this BAA, including requests for information on how to submit a concept abstract or concept paper to this BAA, shall be directed to one of the administrative addresses below, e mail is preferred. Administrative Addresses: Mailing: Defense Supply Center Richmond, DSCR CGB, Attn: Sherrill King 8000 Jefferson Davis Highway, Richmond VA 23297-5000. E Mail: ssking@dscr.dla.mil Phone: 804-279 5127, FAX : 804-279-3715. Industry day will be held On October 20, 1997 At DLA Headquarters in room 2419 beginning At 10:00 am. E-Mail Sherrill King if you plan to attend.

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