BROAD AGENCY ANNOUCEMENT (BAA) -- LABORATORY INTEGRATED DELIVERY SYSTEMS (LIDS) DEFENSE LOGISTICS AGENCY DEFENSE PERSONNEL SUPPORT CENTER DIRECTORATE OF MEDICAL MATERIEL BROAD AGENCY ANNOUCEMENT (BAA) BAA # 98-01 TITLE: LABORATORY INTEGRATED DELIVERY SYSTEMS (LIDS) ISSUE DATE: JANUARY 6, 1998 INTRODUCTION This is the Defense Personnel Support Center (DPSC), Directorate of Medical Materiel, Broad Agency Announcement (BAA) issued under the provisions of paragraphs 35.016 and 6.102(d)(2) of the Federal Acquisition Regulation (FAR) which provides for the competitive selection of concept papers for an advanced Laboratory Supply Integrated Delivery System (LIDS) that enhances all aspects of the program using innovative approaches. Concept papers submitted in response to this BAA that are selected for award are considered to be the result of full and open competition and are in full compliance with the provisions of Public Law 98-369. "The Competition in Contracting Act of 1984." The DPSC, Philadelphia, PA, is interested in receiving concept papers for the efforts described under this BAA. This announcement is an expression of interest only and does not commit the Government to make any award or to pay for any response preparation costs. The cost of proposal preparation for response to a BAA is not considered an allowable direct charge to any resultant contract or any other contract. There will be no formal request for proposal or any solicitation document issued in response to this BAA. Therefore, interested parties should be alert for any BAA amendments that may be published. The address of the cognizant contracting activity is: Defense Logistics Agency Defense Personnel Support Center Directorate of Medical Materiel 2800 South 20th Street Philadelphia, PA 19145-5099 Questions may be directed to Mr. Michael Schmitt (215) 737-2665; Major Claude Hines (215) 737-2159; Mr. Steve Gervasi (215) 737-8109; or Ms. Nancy Martin (215) 737-8422 between 9:00 A.M. and 4:00 P.M. eastern time. Prospective offerors are cautioned that only the contracting officer is legally authorized to commit the Government. The DPSC BAA will be open for one year from January 1998 through December 1998. However; due to the limited availability of funding, early submission of concept papers is desirable. See Proposal Preparation, Part III, for details. PREFACE DPSC is the inventory control point responsible for the management of troop items in the general areas of Medical supplies, Clothing and Textiles items and Subsistence. The Medical Directorate has the responsibility for purchasing pharmaceuticals, medical supplies and medical equipment for U.S. soldiers, sailors, airmen, marines -- around the clock and around the world. Our primary focus is to support the warfighter in times of war, in peace or during relief efforts in times of national emergency. This BAA is seeking technical solutions to problems in the medical and research laboratory environment. Funds may not be currently available under this BAA. No contract award will be made until appropriate funds are available from which payment for contract purposes can be made. BACKGROUND DPSC is exploring additional niche markets for integrated delivery-like commercial practices. One such market is the Lab Ware and Lab Supply arena. Currently, many hospital clinicians are trying to use the Medical and Surgical (Med/Surg) Prime Vendor Program for access to lab products and distribution systems without success. Problems with reagents, refrigerated items, different product classes/groups, and lack of DAPA coverage leave customers limited product availability. Lab Dental, Lab Ware/Lab Supply vendors have their own manufacturers and distributors who are not affiliated with the traditional Med/Surg community. In addition, Lab Ware and Lab Supply products are used in approximately 21 military research centers not covered by the commercial distribution concept. As a result, the Medical Surgical Products CBU is pursuing this market with the idea of establishing an Integrated Lab Ware/Lab Supply acquisition and distribution process not only for the DoD Military Treatment Facilities but also for the DoD Research Centers and other non-DoD federal activities. DPSC envisions this lab program as a continuous process improvement effort that provides better acquisition, distribution and administration features. DPSC wants to enhance this program by achieving complete customer choice in product selection, method of distribution, specialization features and method of payment selection. SCOPE OF LABORATORY INTEGRATED DELIVERY SYSTEMS (LIDS) The Defense Personnel Support Center (DPSC) is interested in demonstrating unique and innovative approaches to re-engineering its business practices. DPSC intends to provide our customers with a viable commercial-based delivery program for laboratory supplies. The purpose is to maintain an industry standard "Just-In-Time" (JIT) inventory approach for any or all laboratory ware/supplies, sufficient surge capability to meet DoD requirements for certain planned or unplanned defense mobilization or contingency efforts short of a declared national emergency and/or any declared humanitarian effort supported by DoD. The objective of the LIDS is to develop a "Total Catalog/Total Delivered Price" Program that re-engineers current DoD practices in contracting, ordering, payment and administration of lab ware and lab supplies. This program will provide DoD customers total access to product in peacetime and mobilization, improve the industry's ability to provide nearly all products under one contracting arrangement and significantly improve industry's ability to respond quickly to a wide range and type of military mobilization and deployments. In addition, LIDS will reduce the overall cost of the administrative process to the DoD customers, other Federal customers, and the industry. The Laboratory concept covers all types of Laboratory ware and supplies that are used in government research centers, hospitals and laboratory clinics, and certain planned defense items. The sought after solution to this proposed concept is two-fold: 1. Develop new strategies in acquisition, inventory management, warehousing, and distribution to improve the industry's ability to provide customer selected items and planned defense items as demanded while effectively reducing overall cost to the Government, and; 2. Seeks an electronic solution that uses the latest electronic commerce means, "intra/inter" net capabilities for ordering and payment leading to an overall paperless operation. The sought after solution in conjunction with the program objectives is to achieve a "quick" response environment tailored to the customers ordering habits and demand. Any solution must integrate commercial distribution concepts with Electronic Commerce capability. CONCEPTUAL PLAN OF OPERATION DPSC plans, based on acceptable concept papers, a three (3) phase tiered approach to implementing the LIDS solutions. The phases are identified as follows: PHASE I -- Vendor Catalogs and Stand-Up The first phase is to contract for published catalogs on a DPSC system. The catalog will include all items which various eligible suppliers make available to government customers. These items will be priced using a fixed discount off the vendor's catalog price. All offerors will identify electronic commerce capability in the following areas: graphics, classification of products, detailed text descriptions, and ability to show a "Total Delivered Price" to the Government. "Total Delivered Price" is defined as "total cost", inclusive of transportation and distribution plus any cost recovery factors assigned by DPSC. All offerors must demonstrate the ability to use ANSI X12 EC/EDI Standards in the following areas: 810 -- Invoice, 850 -- Purchase Order, 855 -- Purchase Order Acknowledgement, 832 -- Price and Sales Catalog, and 848 -- Material Safety Data Sheets. PHASE II -- High Volume, Preferred, or Stabilized Items The second phase involves a select group of items used across many different customers. The prime criteria for these items are that they are widely used items, and with sufficient frequency of demand to warrant special management and pricing. DPSC will, in effect, create an on-line catalog that presents sufficient information (attributes, item description, price, vendor) for the customer. For these items a contract, indefinite delivery, indefinite quantity with a minimum guaranteed quantity, price re-determinable with an upward ceiling of zero and an unlimited downward floor, will be awarded to the selected source(s), with a guaranteed contrat minimum quantity in exchange for a competitively bid low price. The customer would receive all their preferred items from this source for the duration of the contract under a "preferred pricing catalog". PHASE III -- Full Integration Readiness and Customization In phase three, Readiness issues for critical war items and planned industrial base items will be fitted into the program. The specific requirements of the customers are also met by customizing the system to meet their needs and mirror their procedures, may include such aspects as Stock Rotatable pools, Vendor Managed Items and Planned Industrial base capacity. FUNCTIONALITY ABILITY OF THE MODERNIZED LABORATORY INTEGRATED DELIVERY SYSTEM The DPSC system which "houses" the vendor catalogs will do the following: Automate order processing Cross index by industry standard classification and search by key word, manufacturer name, and part number, across multiple vendor's catalogs Query results will be returned in ascending price order regardless of individual catalogs Provide detailed text and pictures in catalog plus other attribute information Support current and state-of-the-art commercial business practices Accept IMPAC/credit cards for payment Incorporate a financial gatekeeper or approval function as required Contain an Order Builder and Shopping Cart (ordering function of regular and repetitive items). User can accumulate items on one form, regardless of manufacturer or distributor Order multiple items from multiple producers on single order form (customer does not fill out different form for each manufacturer) Automate order status and provide status to customer Provide a means of assigning different order numbers to repeat orders of the same items Provide high volume items in separate quick order catalog Track expenditure by appropriation (integrated into financial system) Automatically compile ordering data by specific customer and by all customers Produce reports for monitoring customer buying habits and preferences Maintain a two year order history Provide simple registration customized ID profile Show different prices for different groups of customers to accommodate committed volume contracts Build prices FOB Destination, including distribution charges Use Universal Product Number (UPN) adoption and implementation Show tiered pricing. ELIGIBILITY All prospective offerors must meet certain minimum standards pertaining to financial resources, adequacy of accounting systems, ability to comply with performance and shipment schedules, prior record of past performance, integrity, organization structure, experience, operational controls, technical skills, facilities and equipment in order to have prospective catalogs placed in the Defense Personnel Support Center's (DPSC) system. For additional information and guidance concerning qualifications and standards for responsibility of prospective contractors, please refer to Part 9 of the Federal Acquisition Regulation (FAR) -- Contractor Responsibility. Pursuant to the requirements of FAR 19.702 and 52.219-9, DFARS 226.7004 and DFARS 252.219-7000, if the total amount of the proposal exceeds $500,000 and there are subcontracting possibilities, offerors are to prepare and submit a subcontracting plan for Small Business and Small Disadvantaged Business concerns or Historical Black Colleges and Universities and Minority Institutions (HBCUs/MIs) as part of their proposal submission. (Small Business offerors do not have to submit the plan.) In addition to the following minimum standards above, all prospective offerors must meet the following Electronic Commerce Capabilities: ELECTRONIC COMMERCE/ELECTRONIC DATA INTERCHANGE (EC/EDI) I -- Introduction a. Electronic Commerce/Electronic Data Interchange (EC/EDI) is the exchange of data contained in normal business transactions, electronically, in a standard format. b. This document prescribes the general procedures and policies to be followed when EC/EDI is used for transmitting and receiving documents in lieu of creating paper documents normally associated with conducting business between DPSC and the Vendor. II -- Standards a. The intent of this document is to establish criteria for using EC/EDI and to ensure that (1) use of any electronic equivalent of documents referenced or exchanged shall be deemed an acceptable practice in the ordinary course of business and (2) such electronic documents shall be admissible as evidence on the same basis as customary paper documents -- ANSI X12/UCS Standards (810 -- Invoice, 850 -- Purchase Order, 855 -- Purchase Order Acknowledgement, 832 -- Price and Sales Catalog, and 848 -- Material Safety Data Sheets). b. The documents recognized by the American National Standards Institute (ANSI) X12/UCS Standards will be transmitted either directly or over a third-party network. c. All prospective awardees shall adhere to published ANSI X12/UCS standards for Transaction Sets and shall comply with all DPSC implementation guidelines. d. All prospective awardees will support the current versions of the ANSI X12/UCS standards. e. Each prospective awardee shall be responsible for providing its own computer hardware and computer software necessary to receive and transmit Transaction Sets. f. EDI transactions will undergo a period of testing, in which Transaction Sets will be sent electronically. All potential awardees must be able to accept test transaction sets and conduct testing within fourteen calendar days of test notification. g. Receipt of Transaction Sets shall occur when such Transaction Sets are either transmitted to the prospective awardee's computer or placed in the prospective awardee's electronic mailbox on its third-party network. h. Any Transaction Set transmitted with a proper authenticating code is to be considered a valid and authentic document backed by the same guarantees of legitimacy as found on a paper transaction. No prospective awardee will challenge the authenticity or admissibility of such Transaction Set(s) in evidence of any trial or administrative proceeding except in circumstances where an analogous paper document could be challenged. III -- Phase I Start-Up and Continuing EC/EDI Operations a. Each prospective awardee is responsible for establishing and maintaining its EC/EDI operation. b. The prospective awardees agree to maintain trained EC/EDI operators and EC/EDI support personnel possessing the ability to perform independent EC/EDI day-to-day operations. IV -- Security The prospective awardees agree to utilize adequate security practices (1) ensuring that the transmission of each Transaction Set is authorized and (2) protecting records and data from improper access. Prospective awardees shall protect and maintain confidentiality of passwords used for EC/EDI access. Each prospective awardee further agrees that it shall provide adequate protection for password security. The prospective awardees shall maintain the same standards of confidentiality, security, care, and diligence regarding EC/EDI transactions as with paper contracting documents. V -- Third-Party Network a. Prospective awardees shall agree on the mode of document exchange. If prospective awardees choose a third-party network to transmit, translate, or carry data between the prospective awardees and DPSC, the third-party network shall be identified. b. When a third-party network is to be used: 1. Each prospective awardee shall be responsible for the costs of its third-party network. 2. Both DPSC and the prospective awardee shall agree on the capability of the third-party network(s) to provide such system data security as data integrity, error-free protocol, identification code and password protection, encrypting, etc. In the event that the requirements/specifications for such capability conflicts with any term or condition of this contract, the terms and conditions of this contract shall control. c. Prospective awardee may change its decision to use, eliminate or replace a third-party network upon 60 days written notice. Any requested changes to the system configuration must be compatible with the other protocols. GENERAL INFORMATION FOR PRICE AND TECHNICAL CONCEPT PAPERS Because both the technical and cost aspects of an offeror's submission will be evaluated at the same time, it is desirable that one volume containing all information be submitted. In presenting the proposal material, prospective offerors are advised that quality of the information is significantly more important than the quantity. Therefore, offerors are requested to confine their submissions to essential materials, providing sufficient information to define their offer and establish an adequate basis for the Government to conduct its evaluation. Pursuant to the requirements of FAR 19.702 and 52.219-9, DFARS 226.7004 and DFARS 252.219-7000, if the total amount of the proposal exceeds $500,000 and there are subcontracting possibilities, offerors are to prepare and submit a subcontracting plan for Small Business and Small Disadvantaged Business concerns or Historical Black Colleges and Universities and Minority Institutions (HBCUs/MIs) as part of their proposal submission. (Small Business offerors do not have to submit the plan.) CONTENT OF TECHNICAL AND PRICE PROPOSAL The technical portion of the proposal must include a full discussion of the nature and scope of the effort contemplated, as a minimum, and specifically address the following phases: PHASE I -- Stand-Up: Each offeror should address all aspects of their EC/EDI capability including ability to classify items, show graphics and detailed text descriptions of product, transact ANSI X12 transaction sets: 850 -- Ordering Capability, 832 -- Price and Product Sales Catalog, 855 -- Order Confirmation, 810 -- Electronic Funds Transfer, 848 -- Material Safety Data Sheets in a web-enabled solution. PHASE II -- Committed Volume: Each offeror shall address what information will be needed to achieve the "best" possible price for commitment to high volume and/or additional discount pricing and what approaches he considers successful to bring about the desired result. Such approaches might address market share vs committed quantity volume, etc.. PHASE III -- Readiness Issues: Each offeror shall address the concept of readiness in his own manner that may include such topics as: shared warehousing or manufacturing, rotation of stock with commercial customers, vendor managed inventory, and how such a concept would work, the ability to surge, in peacetime or mobilization, and what commitment each offeror is willing to allocate for readiness. CONTENT OF TECHNICAL PROPOSAL Electronic Commerce Each offeror should fully addre WEB: Click here to contact the buyer, sgervasi@dpsc.dla.mil.

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