R&D Contracting Directorate, Bldg 7, 2530 C Street, WPAFB, OH 45433-7607

A -- FORGING SUPPLIER INITIATIVE -- PAR 1 OF 2 SOL PRDA NO. 98-27-MLKT DUE 070298 POC Lori Shirdon, Contract Negotiator, AFRL/MLKT, (937) 255-3506 or Timothy Jones, Contracting Officer, AFRL/MLKT, (937) 255-3506 WEB: click here to view the R&D Contracting Home Page, http://www.wrs.afrl.af.mil/contract/. Introduction: Air Force Research Laboratory, Manufacturing Technology Division (AFRL/MLM), is interested in receiving proposals (technical and cost) on the technical effort described below. The solicitation number is PRDA-98-27-MLKT. Proposals in response to this Program Research and Development Announcement (PRDA) shall be received by 1500 Eastern Standard Time, 02 July 1998, addressed to R&D Contracting Office, Building 7, 2530 C Street, Area B, Attn: Ms. Lori Shirdon, AFRL/MLKT, Wright-Patterson AFB, OH 45433-7607. This is an unrestricted solicitation. Small businesses are encouraged to propose on all or any part of 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 52.215-1(c)(3). A copy of this provision may be obtained from the contracting point of contact. No other solicitation is anticipated in regard to this requirement. Offerors shouldbe alert for any PRDA amendments that may be published including those which permit a subsequent proposal submission date. Offerors should consult the "PRDA and BAA Guide for Industry." This guide was specifically designed to assist offerors in understanding the PRDA/BAA proposal process. Copies may be obtained from the contracting point of contact stated herein or on the Wright Research Site Contracting Office Web Page (http://www.wrs.afrl.af.mil/contract/). B -- REQUIREMENTS: (1) Technical Description: This effort is targeted toward the development of manufacturing and business process re-engineering and implementation of lean production practices necessary to demonstrate a 35% to 40% reduction in the cost for current and future Air Force and Navy (AF/N) aircraft and propulsion weapon system components manufactured using the forging process. This effort shall investigate areas of opportunity encompassing the entire forging value chain (from raw stock to ingot to billet to forging to rough machining to final machining to final assembly of the component). Since cost reduction is the primary metric of interest, success of this effort will be based on achieved cost reductions (through process improvements) compared to data collected by AF/N System Program Offices (e.g., JSF) for forged components. While cycle time, throughput and lead time are important, they, and any other such measures, will be considered as secondary metrics unless the measurement can be translated directly into a component cost reduction. The AF/N is not looking for incremental process improvements via point solutions, but rather for solutions that will achieve breakthroughs in process re-design which will achieve significant cost reduction activities related to the forging supply chain. The program should address actual production issues and be based on a combination of (a) shop floor processing and fabrication activities (e.g., rough and final machining, die construction, etc.) where improvements can reduce component cost, (b) business and technical information infrastructure elements, and (c) lean business practices. Identified issues cannot be process, alloy, material or company specific, and must be supported by sector value stream analysis data as to why they were selected. This program will include component cost reduction validations, as well as parallel efforts that result in swift conversion of program results into cost reductions for the AF/N. Pilot demonstrations of implemented shop floor process changes and business/lean practice implementations are desired during the course of the program to support continuous improvement strategies toward cost reduction activities. Demonstrations to prove out component cost reduction activities can come from engines and airframes in development, rate production or operational use. These components should be identified by program phase and will be agreed upon by the offeror and the AF/N prior to cost validation efforts. Program results will be presented to an Industry Review Board and other Government/Industry technology transition forums on a periodic basis. Teaming arrangements representative of all tiers within the sector (i.e., OEM's, forging suppliers, and material suppliers) are encouraged to achieve program objectives through process re-design at all levels. Team composition, roles, responsibilities and task assignments must support program objectives and be clearly defined. (2) Deliverable Items: The following deliverable data items shall be proposed: (a) Status Report, DI-MGMT-80368/T, monthly; (b) Project Planning Chart, DI-MGMT-80507A/T, monthly; (c) Contract Funds Status Report (CFSR), DI-MGMT-81468/T, quarterly; (d) Presentation Material, DI-ADMN-81373/T, as required; (e) Scientific and Technical Reports (Contractor's Billing Voucher), DI-MISC-80711/T, monthly; (f) Technical Videotape, DI-MISC-81275/T, as required; (g) Scientific and Technical Reports (Component Price Reduction Plan) DI-MISC-80711T, at completion of each Phase; (h) Scientific and Technical Reports (Final Report), DI-MISC-80711/T, draft and camera ready copy, one time, upon completion of effort; (i) Contract Work Breakdown Structure, DI-MGMT-81334, one time upon award with revisions; (j) Cost/Schedule Status Report (C/SSR), DI-MGMT-81467, monthly; (k) Functional Cost Hour Report, DI-F-6007, one time upon completion; (l) Software Development Plan (SDP), DI-IPSC-81427, as required. (3) Security Requirements: It is not anticipated that work performed on this effort will require access to classified material. (4) Other Special Requirements: The International Traffic in Arms Regulation and Public Law 98-94 are applicable to this project. Pursuant to PL 98-94, offerors are required to either prepare a DD Form 2345, Militarily Critical Technical Data Agreement and forward the DD Form 2345, along with any attachments, to: United States/Canada Joint Certification Office, Defense Logistics Services Center, Federal Center, Battle Creek, Michigan, USA, 49017-3084, or provide evidence that registration and certification under the program is already on file. Copies of the DD Form 2345 may be obtained from the contracting point of contact stated herein. C -- ADDITIONAL INFORMATION: (1) Anticipated Period of Performance: The total length of the technical effort is estimated to be 42 months. An additional 4 months will be required for processing/completing the final report. (2) Expected Award Date: October 1998. (3) Government Estimate: The government funding profile is estimated to be as follows (Note: Multiple awards may be made): FY99 -- $1800K, FY00 -- $3000K, FY01 -- $3000K, FY02 -- $1200K. This funding profile is an estimate only and is not a promise for funding as all funding is subject to change due to government discretion and availability. (4) Type of Award Instrument: Cost Share Contract, Cooperative Agreement or Other Transaction. Based upon Section 256 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337), cost sharing is required. It is noted that FAR Part 31 sets forth the principles forallowable cost share pertaining to contracts, while OMB Circular A-110 defines allowable cost sharing for cooperative agreements. A copy of OMB Circular A-110 may be obtained upon request by calling (202) 395-4660. (5) Government Furnished Property: None contemplated. (6) Size Status: For the purpose of this acquisition, the size standard is 500 employees Standard Industrial Classification (SIC) 8731. (7) Notice to Foreign-Owned Firms: Such firms are asked to notify point of contact 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: Offerors should apply the restrictive notice prescribed in the provision of FAR 52.215-1(e), "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 pointsof contact listed elsewhere herein. Offerors should consider instructions contained in the "WL PRDA and BAA Guide for Industry" referenced in Section A of this announcement. Technical and cost proposals shall be submitted in separate volumes, and must be valid for 180 days. Proposals shall reference the above PRDA number. Proposals shall be submitted either in hard copy with an original and six copies or submitted via electronic and paper means, on either a 3-1/2 inch DOS-formatted floppy disks or CD-ROM in either Microsoft Word Version 7.0 or Rich Text Format (.rtf). If proposals are submitted by electronic means, submit three (3) paper copies and three (3) electronic copies. 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: Adequate price competition is anticipated; therefore, offerors are not required to submit certified cost or pricing data. Offerors must submit cost or pricing information only to the extent necessary to provide the government the ability to determine the reasonableness and realism of the cost and/or price. The offeror's format for submitting such information is acceptable; however, offerors are encouraged to use a Standard Form (SF) 1448, Proposal Cover Sheet (cost or pricing data not required). Copies of an SF 1448 may be obtained from the contracting point of contact stated herein. Cost proposals should be organized to include two sections in the following order: total project cost, and cost sharing and in-kind contributions. Section 1 -- Total Project Cost -- will include total project cost by phase by month. The offeror will also give a detailed breakdown of the total project costs, broken down by task for each task appearing in the proposed SOW. The total cost of each major cost element and the make-up of those costs should be presented in the offerors' proposals. Sufficient information should be provided in supporting documents to allow the government to evaluate the reasonableness of these proposed costs, including salaries, overhead, material purchases, fair market rental value of leased items and the method used for making such valuations. Profit/Fee is not applicable under cost share contracts or Assistance Instruments. Section 2 -- Cost Sharing and In-Kind Contributions -- proposed under a Cost Share contract, Cooperative Agreement or Other Transaction will include: (1) the sources of cash and amounts to be used for matching requirements; (2) the specific in-kind contributions proposed, their value in monetary terms, and the methodology used to derive their values; and (3) evidence of the existence of adequate cash or commitments to provide sufficient cash in the future. Signed commitments are required for outside sources of cash. Proposals should contain sufficient information regarding the sources of the offerors cost share so that a determination regarding availability, timeliness and control of the resources may be made by the government. (3) Technical Proposal: The technical proposal shall include a discussion of the nature and scope of the research and technical approach; team composition; a quantitative rationale for the processes selected as well as the approach for implementation; identification of improvement goals; prior, on-going and planned company funded activities related to those processes; demonstration plan to prove out component cost reduction activities (including decision points, criteria and decision makers); management approach (plan) and structure for program execution; nature and extent of cost share (qualitative); company commitment to achieving cost reductions; and number of hours for key personnel and their role. It shall also include a clear, quantitative track from proposed process/business practice improvements to component cost reductions, along with a specific plan to implement those cost reductions based on meeting improvement goals already set forth. Each proposal shall be constructed in phases, where each phase has clear and quantifiable entrance and exit criteria which demonstrate how the specific selected processes have been improved. Phase duration's should be no longer than 12 months. The government reserves the right to decide at the end of Phase I to downselect to one source, based on the following criteria: (a) demonstration of cost reduction activities and how they tie into the overall corporate strategy shown in the original proposal, and (b) demonstrated component cost reductions from improved processes. The proposal should also address other government related activities in this area (e.g., Navy's Metalworking Center, Air Force's Materials Process Design Branch, etc.) and how proposed efforts could leverage these organizations to create a synergistic approach to reducing forging costs. Additional information, such as synopsis of prior work in this area, descriptions of available equipment, data or facilities vital to the effort, and resumes and time commitments of key personnel who will be participating in the effort should also be included as attachments to the technical proposal and are not included in the page limit. The technical proposal shall include a Statement of Work (SOW) detailing the technical tasks, by phase, proposed to be accomplished under the effort and suitable for contract incorporation. Offerors should refer to the PRDA/BAA Guide referenced in Section A 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. The technical proposal shall also include: a statement of intention, if any, to use foreign nationals; a break out of person hours for each major task in the SOW; and the names and qualifications of subcontractors and consultants, and the level of effort to be subcontracted or consulted. Offerors are notified that the SOW, or any part thereof, may be incorporated by reference, in any resulting award. The paragraph numbering used in the Technical Proposal for the technical approach discussion, the SOW tasks, and the Cost Proposal shall correlate. (4) Page Limitations: Technical proposals shall not exceed 75 pages (12 pitch or larger type), double spaced, single-sided on 8.5" x 11". Margins shall not be less than 1.25". If electronic means are used to submit the proposal, it shall be readable by Microsoft Office products. The double spacing requirement shall be satisfied by Microsoft Word's double spacing method and the 12 pitch or larger requirement shall be satisfied by setting the Microsoft Word for Windows type size (point) at 10 or larger. The page limitation includes all information, i.e., indexes, photographs, foldouts, and appendices. The government will not consider pages in excess of the 75 page limitation. Cost proposals have no page count limitations, however, offerors are requested to keep cost proposals to 50 pages as a goal. (5) Preparation Costs: This announcement is an expression of interest only and does not commit the government to pay for any proposal preparation cost. The cost of preparing proposals in response to this PRDA is not 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. If selected for negotiations, qualifying offerors may be required to submit a small business subcontracting plan. (0140)

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