PRESOLICITATION NOTICE: REFERENCE NUMBER 98PSN-J0001 The Defense Industrial Supply Center (DISC) intends to issue a solicitation and award one, pr possibly multiple contracts, to acquire supplies included in the Industrial Hardware Federal Supply Group (FSG) 53 (e.g., nuts, washers, screws, bolts, pins, etc.) of small quantity acquisitions,. Therefore, we are issuing this Presolicitation Notice. The requisitions have an approximate annual value of $6 million and an estimated volume of 13,000 transactions, are usually for small quantities (,= 10) and as many as one third are for quantities of one (1) each. The range of values for each requisition can fall between $1.00 and $2500.00. There is a possibility that the contract will increase in volume. The strategy is to find one or more sources of supply who can manage a purchasing program for the low volume military purchase requests with various destinations. This acquisition tactic is structured to allow the government to increase customer support, decrease administrative lead time, and reduce the costs associated within this specific group of requisitions. This strategy will incorporate the best value approach which allows for variation of industry proposals while allowing the government the benefit of comparing these proposals not only on cost and/or price, but on other factors as well. This contract action is subject to Trade Agreements Act. There is a possibility that this action will be for supplies which the government does not possess complete, unrestrictive technical data; therefore, the government intends to solicit and contract with only one or a limited number of sources under FAR 6.302-1 and U.S.C. 2304(C)(I). This solicitation contains an option to extend the term of the contract 4 years. Vendors are to address all categories within the Statement of Objectives (see below). Responses are to be submitted to the following by 4:00 P. M., DISC local time, 15 December 1997. Defense Industrial Supply Center 700 Robbins Avenue ATTN.: ROSEMARY A. CROGNALE, DISC-JCC/44 Philadelphia, PA 19111 (215)697-5933 STATEMENT OF OBJECTIVES I. Introduction The Defense Industrial Supply Center (DISC) is an agency of the Defense Logistics Agency (DLA). Its mission is to supply industrial hardware to the Armed Forces of the United States. II. Purpose The purpose of this Statement of Objectives (SOO) is to generally describe the requirements for a vendor managed small purchasing program for a specific category of military purchase requests. III. The Problem DISC receives a large number of requisitions from customers for small quantities of DLA non-stocked industrial hardware items, primarily in the Federal Stock Group (FSG) 53. These particular requisitions are usually for quantities less than ten (10) with approximately one third for quantities of one (1) each and a yearly estimate of 13,000 requisitions. The values for each requisition can fall between $1.00 and $2500.00 with an approximate yearly total of $6,000,000.00. The prices of these items are often high due to the small quantities required. Occasionally, the items are difficult to procure due to infrequent purchases, obsolescence or hard to locate sources. It is our experience that a percentage of these items are canceled by the requisitioner. IV. Requirements The vendor will provide the following function: receive the purchase request (PR) electronically transferred by DISC; obtain the item of supply and ship it directly to the customer; bill DISC for the price. It is anticipated that the vendor will be able to network with various suppliers in order to provide an accelerated delivery at a fair and reasonable price. Interested parties shall submit a technical proposal and a pricing proposal. A. Technical Proposal -- offerors should address the following topics: 1. The vendor must be fully EC/EDI capable with suppliers as well as with DISC. 2. The vendor must recommend a plan to satisfy a significant percentage of the required items. 3. Describe a procedure from the onset of requisition/purchase request notification to delivery of material to the customer, invoicing and other reporting issues. 4. The vendor must indicate response time (indicating that you can or cannot supply the required item) from the time of PR notification. 5. The vendor must have procedures for locating difficult to procure items. 6. The vendor must describe the corrective actions regarding problems such as logistics, quality discrepancies, or configuration control characteristics. 7. The vendor must describe the procedures to be adopted to govern cancellations, returns and discrepancies. 8. The vendor must describe a plan to control excess lead-times. B. Pricing Proposal -- offerors should address the following topics: 1. The item price will consist of direct costs (e.g., material, inbound freight, packaging, etc.) and an incidental handling fee (to include all suppliers mark- ups including profits, overhead, other costs, etc.) which will be fixed for each order. The vendor must submit a fixed incidental handling fee that willbe the basis of the price evaluation. (Note: the incidental handling fee must be a fixed amount; percentages are not acceptable.) 2. The vendor must describe a plan to control costs (including, but not limited to, rebates and discounts) as well as procedures for excessive price situations. C. Future Requirements 1. Future Acceptance of Purchase/Credit Card Orders: During the life of this contract, the Government would like to begin to offer our customers the opportunity to use purchase/credit cards as a form of payment when they place their orders. The Government and the successful offeror will negotiate a mutually acceptable implementation plan at a future date. 2. Depending on the success of this program, there may be an increase in requisition volume. V. General Information A. DISC anticipates a Indefinite Quantity Contract with a base period of one (1) year with four (4) one-year options. B. DISC reserves the right to award to one, several or none of the proposers. C. DISC reserves Agency audit rights.

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