PIP ANN 2 PROPOSER INFORMATION PACKET Broad Agency Announcement SP0200-97-BAA01, Amendment #2. ADDENDUM # 7 For ANNISTON ARMY DEPOT (ANAD) in Anniston, Alabama By the use of Broad Agency Announcement (BAA) SP0200-97-BAA01, Amendment 02, Addendum 07, the Defense Industrial Supply Center (DISC) is seeking industry assistance in the reengineering of the methods by which DISC, as an Inventory Control Point (ICP) within the Defense Logistics Agency (DLA), will provide logistics support to its military customers. This initiative is referred to as the DISC Industrial Prime Vendor Program (DISC-IPVP). Addendum No. 7 is a request for the submission of Concepts for innovative methods for DISC to provide the full breadth of Customer Oriented Supply Chain Management (COSCM) with respect to the spare parts and industrial hardware requirements for Anniston Army Depot (ANAD) located at Anniston, AL. 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. PLEASE NOTE THAT, IN 1999, DISC WILL BE INTEGRATED WITH DEFENSE SUPPLY CENTER, PHILADELPHIA (DSCP). ANY REFERENCE HEREIN TO DISC MEANS "DISC" OR ITS SUCCESSOR, "DSCP". DISC does not anticipate issuing a formal Request for Proposal (RFP) or any solicitation document issued in conjunction with this BAA. Prospective offerors are cautioned that only the Contracting Officer is legally authorized to commit the Government. The cognizant contracting activity is the Defense Industrial Supply Center (DISC), 700 Robbins Ave., Phila., PA 19111. The Contracting Officers are: Michael Gargiulo, DISC-APG or Elizabeth Myers, DISC-APG Phone#: 212-697-8828 Phone #: 212-697-8828 E-mail: mgargiulo@disc.dla.mil E-mail: emyers@disc.dla.mil Facsimile: 212-697-8680 This Proposer Information Packet (PIP), together with the sources of information listed below, constitute the entire Broad Agency Announcement, and should be consulted, reviewed or referred to, in conjunction with each other. A. Data Bases: On the World Wide Web, at HYPERLINK, http://www.disc.dla.mil under Broad Agency Announcement. See BAA01, Amendment No.2, Addendum No.7. 1. DISC to provide a database of ANAD's historical demand/usage for the past 24 months for items managed by DLA Inventory Control Points other than DISC. B. Broad Agency Announcement (BAA) SPO200-97-BAA01, Amendment 2, Addendum 7, Parts Supplier/Parts Integrator. Note: Requests for information may be directed to Michael Gargiulo (212) 697-8828, Elizabeth Myers (212) 697-2866, or Karyn Reade (212)697-2087. 1. PROGRAM OBJECTIVES DISC is seeking from industry, the submission of Concepts that will incorporate into the logistics support system at Anniston Army Depot, innovative and efficient methods of supply chain management currently being employed in the commercial market place. DISC is seeking concepts that will take those commercial processes and design them to replace or adapt to the current in-place systems, to make them more efficient. The term "innovative" means by which the involvement of Anniston Army Depot, DISC, DLA and DOD infrastructure in the supply chain will be significantly reduced or eliminated. In this endeavor, the successful contractor, DISC and the Army customer will form a strategic alliance whereby the use of a third party parts supplier/parts integrator (an Industrial Prime Vendor) will allow all parties to capitalize on the successful supply chain management processes currently being demonstrated in the private sector. DISC intends to award a contract to a single integrator for the logistics support of ANAD with respect to its bench stock requirements and its intermediate retail inventory facilities, as well as the additional U. S. Army sites named above, unless a determination can be made that employing more than one integrator will attain the overall purpose of this Addendum to the BAA. Strategic alliances and partnering arrangements among suppliers are encouraged. The contractual type which DISC proposes to use for this initiative, is a firm fixed price or fixed price with economic price adjustment Indefinite Quantity Contract (IQC) having a base period of two (2) years and three (8) one-year options to extend the contract term. The maximum term of the contract will not exceed five (2) years. Each contract year, whether in the base period or an option year, will have a specific dollar amount guaranteed. To the maximum extent practicable, the contract will be structured in accordance with Part 12 of the Defense Federal Acquisition Regulation Supplement (DFARS). Specific modifications or revisions to the suggested provisions of those regulations, referred to as tailoring, as well as other provisions unique to government acquisition, will be implemented by an appropriate Addendum. II. CURRENT PROCEDURES NOTE: Prospective vendors should review the following information as baseline conditions from which to formulate improved logistical solutions. Vendors should determine the most efficient solution possible to enable the customers to perform their missions. If the additional U. S. Army sites are added, an amendment will be issued that will include current procedures and expectations for each site. ANAD, Anniston, Alabama Bench Stock areas are managed through ANAD personnel who stock bins and/or accessory areas in numerous locations within various buildings. There are approximately one-hundred fifty-six (126) locations in twelve (12) buildings. ANAD mechanics draw parts from these bins as they need them for the maintenance, overhaul and repair of ground vehicle weapons systems for which they are responsible. (ATTACHMENT II, MAP OF ANNISTON DEPOT AND LISTING OF BUILDING AND BIN LOCATIONS, IS AVAILABALE UPON REQUEST FROM THE POC IN THIS DOCUMENT OR MAY BE OBTAINED AT THE SITE VISIT). Bench stock area bins and accessories area shops are currently replenished through retrieval of supplies via the Automated Storage & Retrieval System (ASRS) from a central storage or inventory location on the ANAD depot. ANAD personnel inventory the bins by periodic visual inspections and decide whether to restock on the basis of those visual inspections. III. EXPECTATIONS ANAD, Anniston, Alabama A. Regarding Bench Stock Items and items currently stored in Intermediate Storage Facilities, such as the Automated Storage and Retrieval System (ASRS) Building, DISC and ANAD have the following expectations for the initiative: 2. A total supply chain manager of integrated logistics that participates in all planning meetings and provides: a. 100% supply availability; b. Pricing and Material cross-referenced to MILSTRIP NSN by PN and technical data (prior to on-site inventory placement); c. Forecasting and tracking of material demand/usage and associated reports; d. Engineering and technical services, and configuration control; e. On-site positioning, replenishment, management of material and storage Bins; f. Billing on the basis of usage, rather than at time of bin replenishment. g. Provide initial stock based upon historical demand with adjustments to stock based upon real time usage; h. Material warranties; i. 24 hour emergency delivery; j. Kitting services ; 2. Surge and sustainment capability; are to be supported at all times; 8. Implementation of information technology that interfaces with organic information systems in a transparent manner; 4. A seamless system, elimination of redundancy and simplification of procedures; 5. Quality parts equal to or better than those currently provided; 6. Reduction in contract prices in each option year as productivity efficiencies are achieved; 7. Easy access to a customer service representative; 8. Flexibility to add and delete parts to/from initial support; 9. Provide a concept that addresses the attrition of existing Anniston Army Depot Inventories, and . 10. Provide a representative to function as part of the ANAD/DLA/IPV Team. This rep is to be available and accessible throughout the duration of the contract. It is anticipated that adopting this program will result in the reduction of total logistics costs, a seamless system, elimination of redundancy and simplification of current procedures and a reduction in the time required to accomplish the customer's maintenance and overhaul mission. The ANAD personnel consider this program as a viable means of building a lean, responsive organization which manages services vice material and replaces mass with timely information, knowledge and speed. The scope of the contract will include a requirement that the Contractor supply related items that have not been identified as Pre-Extended Bins/Bench Stock (PEB/BS) at the date of contract, but which are required by ANAD to accomplish its respective mission. In the initial stage of the prospective contract, the scope of work will encompass only the logistical support for ANAD at Anniston, AL with respect to its requirements for spare parts and industrial hardware stored at or near the point of use in its maintenance, overhaul and repair mission (bench stock requirements). However, also included in scope of this endeavor is the potential broadening of the logistical support to the U.S. Army as follows: a. Expansion of logistical support to encompass those items, which are currently, stored in intermediate retail storage facilities at ANAD. If and when the logistical support thus expanded, delivery of those items will be required either to the intermediate storage facility or directly to the maintenance shop floor, as directed by ANAD through a requisitioning or order process. b. Expansion of logistical support to the four (4) additional U.S. Army sites at Red River Army Depot, Tobyhanna Army Depot, Letterkenny Army Depot and Corpus Christi Army Depot. Please see Broad Agency Announcement SPO200-97-BAA01, Amendment 2, Addendum NO. 7 for additional information on these sites. If it is determined at a later date to expand to the intermediate storage facilities and/or additional sites, an amendment to this Addendum will be issued detailing all pertinent information. In the event such amendment is issued, the government will request a revised concept paper to address the increase in scope. We invite Concept Papers that take advantage of state-of-the-art technology and innovative contracting to achieve these potential objectives. B. Phase-In Schedule The phase-in schedules shown below reflect ANAD's current preference for initiation of support for a particular vehicle system. However, vendors may, and are encouraged to, propose alternate phase-in schedules. Such alternates phase-in schedules should include a justification and description of how this plan would benefit the government. A. Initial FSC Groups (Refer to Attachment I, Phase1.dbf for corresponding items) During the first four (4) months of contract performance FSCs 2802, 2806, 2807, 2810 and 2812 for all bench stock sites. B. Second Phase FSC Groups (Refer to Attachment I, Phase2.dbf for corresponding items) Commencing with the fifth (2) month of contract performance FSCs 1002, 1620, 2220, 2280, 2290, 8110, 8489, 4010, 4080, 4720, 4780, 4820, 2820, 2822, 2880, 2881, 2840, 2860, 2862, 2922, 2980, 2982, 2940, 2970, 2972, 2992, 2999, 6142, 6210, 6220, 6240, 6212, 6640, 6682, 7690, 8122, 9890, 9210 and 9902. C. Third Phase FSC Groups (Refer to Attachment I, Phase8.dbf for corresponding items.) Commencing with the ninth (9) month of contract performance Items to be furnished The balance of FSCs listed on page 1 of Addendum 7, after Phases 1 and 2 have been completed, and any other item which the customer determines to be bench stock will be furnished. NOTE: Submitters of concept papers are encouraged to offer a more ambitious, expedited phase-in schedule to attain levels of support that exceed the minimum schedules set forth above. Such schedules will be evaluated under factor No. 1 (Customer Oriented Supply Chain Management) and need not be limited to the approach described above. CUSTOMER SITE VISIT Site Visit is tentatively scheduled as follows: Anniston Army Depot -- September 29, 1998 In the event that the above mentioned date must be changed, notice of the change will be publicized via an Amendment on the World Wide Web, and in the Commerce Business Daily. While attendance at the above site is not mandatory, the site visit is for the specific purposes of providing each prospective vendor as much available information as possible for the preparation of a Concept Paper. The site visit will consist of a tour of the facility, and will accord all who attend the opportunity to review the types of the materials required, the number and location of the bins, the types of weapons systems for which the parts are required, and the general layout of the facility. All prospective attendees must register with the contracting officer no later than September 17, 1998. Failure to register might preclude entrance to ANAD. Visitors may ask questions for the purpose of clarifying customer support needs. However, there will be no discussion regarding contractual content or agreements. The following are the points of contact for ALL site visit issues and questions: Ruth Barnett 212-697-9228 Mindy Guida 212-697-1124 Bob Cunningham 212-697-9790 IV. SUBMISSION PROCESS The administrative cutoff date for submission of Concept Papers is October 27, 1998 at 1:00 P.M. Eastern Standard Time (EST). Concept Papers received on or before that date will be evaluated for utilization at the Anniston Army Depot. Concept Papers received subsequent to that date may be evaluated for feasibility or utilization at other sites. If a Concept is received late and is not evaluated for utilization at the ANAD, the Proposer will be notified. The BAA number should be used on all correspondence regarding Concept Papers. A Concept Paper should outline, describe and otherwise explain the vendor's approach to support this initiative and the manner in which it will maintain sources, manufacturers, producers and other suppliers available for furnishing of these spare parts and others services in case of a nation emergency and to achieve industrial mobilization in time of war, international turmoil, and any anticipated surges in requirements. All Concept Papers will be reviewed by Government officials only and will be treated as proprietary data. Concept Papers submitted by FAX, E-MAIL or other electronic medium will not be accepted. Oral presentations may be required to clarify concept submitted. In addition to offerors addressing their technical approach to achieving the program objectives outlined in Section 1 of this BAA, each offeror must address the information as requested within the technical factors as listed in Section V below. Concept Papers shall not exceed fifty (20) pages. Proposers are to submit an original and four (4) copies of their Concept Paper (in hardcopy) and one copy of the concept Paper, on a 8 1/2" disc, in MICROSOFT OFFICE format to the following address: Defense Industrial Supply Center ATTN: DISC-PODP (Bid Opening Officer) 700 Robbins Ave. Philadelphia, PA 19111-2096 (The Government reserves the right to select for award all, some or none of the responses received.) V. EVALUATION PROCESS & EVALUATION FACTORS Concepts will be evaluated on their breadth of innovative and efficient supply chain management with respect to support of the spare parts and industrial hardware requirements of the Anniston Army Depot relating to it's respective maintenance, overhaul and repair and logistics support mission. In addition to providing for the furnishing of the required supplies, the COSCM Concept must demonstrate and describe in detail the elements of inventory control and supply maintenance, planning and forecasting, engineering and technical services, as well as surge and sustainment. The items of supply must conform to specifications and standards, quality conformance and quality certifications, identification of shelf-life requirements, and all other requirements of the specific item descriptions for the specific parts associated with maintenance, overhaul and repair of ground vehicles at the Anniston Army Depot. The COSCM concept must include a process and a time by which a 100 percent fill-rate will be achieved. A"100 percent fill-rate" means that a specific, needed, part, set, kit, chest, etc., is available for use when the Army mechanic or artisan attempts to retrieve it to accomplish his or her mission. The Concept should include innovation and efficiencies of supply chain management currently being employed in the commercial market place, and should reflect how those processes will be designed to replace, or be adapted to, the current supply chain management process in place at Anniston Army Depot. A. Evaluation Process Concept Papers will be evaluated solely against the criteria set forth in this BAA. Therefore, Concept Papers will NOT be evaluated against each other since they are not submitted with a common work statement. Concept Papers submitted shall be evaluated against the established criteria and if deemed to have merit, the Government will ask offeror(s) to submit proposal(s) for subsequent negotiations for possible contract award. The format for Concept Papers appears in part VI of this document. Concept Papers will be selected for further discussions based upon technical merit, importance to agency programs, and funding availability. When the Concept Paper evaluation is completed, the submitter will be notified whether their submission warrants further discussions with the intent of making a contract award. All Concept Papers will be considered proprietary. All responsible sources capable of satisfying the Government's needs may submit a Concept Paper which shall be considered by DISC. Upon submission of Concept Papers on October 27, 1998, only pricing methodology should be submitted. Firm(s) who submit concept(s) that is/are selected for full discussion, shall provide a complete pricing proposal during negotiations. Those proposals committed to cost control and cost management will be considered more favorably. Customer affordability and cost/price realism are also important factors. The final award decision will then reflect an integrated analysis of expected outcomes and the price to achieve these results. We are requesting a cost management plan showing the methods and amounts of savings on an annual basis. Note: The contractual type that DISC proposes to use for this initiative is a firm fixed price or fixed price with economic price adjustment Indefinite Quantity Contract (IQC) having a base period of two (2) years and three (8) one-year options to extend the contract term. B. Evaluation Factors Specific Information -- 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, efficient supply chain management, inventory control, on-site stock area management, forecasting, engineering services, technical services, and configuration cont Posted 09/29/98 (W-SN255661).

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