3- LPM-RM AOI Guidance.pdf

Attachment 3: Area of Interest Guidance

Prototype Low Profile Mast Type 24 Mod 1 and Rotational Module

N00024-26-R-6215

The procedures herein apply to the Area of Interest (AOI), which includes the Low Profile Mast Type 24

Mod 1 (LPM) and the Rotational Module (RM) component.

SECTION 1 – INTRODUCTION & OVERVIEW

1.1 Mission Background & Problem Statement

The initiative and problem statement are described in Attachment 2:AOI.

1.2 Solicitation Procedure

The competitive procedures to respond to this AOI comprise Phases I, II, and III as follows:

Phase I -- White Papers: Companies shall submit a White Paper and Placemat (Template provided as Attachment 9) in response to the LPM and/or RM AOI as specified in Section 3.2 of this document. The Government will evaluate Phase I submissions against the criteria outlined in

Section 3.2 of this document and the AOI. The Government will not reimburse companies for costs associated with Phase I submissions.

Phase II -- Pitches: If the Government evaluates a Phase I submission to be of merit, the respondent may be invited to provide a Phase II Pitch to the Government following the instructions provided in Section 3.3 of this document. The Government will evaluate Pitches against the criteria outlined in Section 3.3 of this document and the AOI. The Government reserves the right to limit the number of Companies invited to provide a Pitch. As such, a technical solution may be evaluated to be of merit but not invited to provide a Pitch. The

Government may release additional information to all companies selected for Phase II, including

CLASSIFIED TLRD Annexes. The Government will not reimburse companies for costs associated with a Pitch. Companies will be evaluated based on information from both Phases I and II.

Phase III – Prototype Proposal: Companies whose Phase I submission and Phase II Pitch evaluated by the Government to be of merit and are selected for potential award of a Prototype

OT may, if funding is available, be invited to submit a full written Prototype Proposal following the instructions provided in Section 3.4 of this document. The Government will evaluate

Prototype Proposals in accordance with the solicited Request for Prototype Proposal (RPP). The

Government will not reimburse companies for costs associated with an RPP response (e.g., provision of data/information, proposal development, or negotiations) in Phase III.

SECTION 2 – DEFINITIONS

“Area of Interest” means an announcement which may result in the award of an Other

Transaction Agreement.

“Company” includes affiliates, business units, the Prime Contractor, and all members of any formal teaming arrangement performing under an OT.

“Innovative” means any new technology, process, or business practice; or any new application of an existing technology, process, or business practice that is directly relevant to enhancing the mission effectiveness of personnel of the Department of War (DoW) or improving platforms, systems, components, or materials proposed to be acquired or developed by the DoW, or to improvement of platforms, systems, components, or materials in use by the armed forces.

“Nontraditional Defense Contractor” is defined in 10 U.S.C. § 4022 as an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation of sources by the DoW for the procurement or transaction, any contract or subcontract for the DoW that is subject to full coverage under the cost accounting standards prescribed pursuant to 41 U.S.C. § 1502 and the regulations implementing such section.

"Other Transaction” or “Prototype OT” refers to the Prototype OT Agreement that may be awarded. This type of OT is authorized by 10 U.S.C. § 4022.

“Prototype Project” is defined at 10 U.S.C. § 4022(e)(5) as a project that addresses:

(A) a proof of concept, model, or process, including a business process;

(B) reverse engineering to address obsolescence;

(C) a pilot or novel application of commercial technologies for defense purposes;

(D) agile development activity;

(E) the creation, design, development, or demonstration of operational utility; or

(F) any combination of subparagraphs (A) through (E).

“Small Business” is defined under Section 3 of the Small Business Act (15 U.S.C. § 632).

SECTION 3 - THE COMPETITIVE PROCESS – A PHASED APPROACH

3.1 PHASE I - White Paper Submission Guidelines

1. The Government does not desire unnecessarily elaborate brochures or proposals in Phase

I.

2. The Government strongly encourages use of diagram(s) or figure(s) to depict the essence of the technical solution.

3. A Company may submit up to one Phase I submission for an LPM solution and up to one

Phase I submission for an RM solution. If submitted as a team, the Title page of the submission must clearly list each Company involved, the Prime Vendor and a single point of contact for the entire team.

4. Submissions shall identify clearly and up-front the technical design solution (LPM or

RM) that is being addressed.

5. Technical data with military application may require appropriate approval, authorization, or license for lawful exportation.

6. All Phase I submissions shall be classified up to the Controlled Unclassified Information

(CUI) level. All Pitches and Prototype Proposals may be classified up to the SECRET level. Any submission containing data that is not to be disclosed to the public for any purpose or used by the Government except for evaluation purposes shall include the following sentences on the cover page:

“This submission includes data that shall not be disclosed outside of the

Government, except to authorized non-Government personnel for evaluation purposes, and shall not be duplicated, used, or disclosed -- in whole or in part --for any purpose other than to evaluate this submission. If, however, an agreement is awarded to this Company resultant of -- or in connection with – the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent agreed upon by both parties in the resulting agreement. This restriction does not limit the Government's right to use the information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in sheets [insert numbers or other identification of sheets].”

Each restricted data sheet should be marked as follows:

“Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this submission.”

7. Several key documents related to the LPM and RM are only releasable to eligible businesses with ownership in the United States, the United Kingdom, and Australia. Non-

Australia, United Kingdom, or United States foreign-owned businesses may submit a technical solution as part of a teaming arrangement with one or more Australia, United

Kingdom, or United States-owned business(es). The ability to be awarded an Agreement may depend upon the ability of the Foreign-owned business to obtain necessary clearances and approvals to obtain prescribed information.

8. Phase I submissions must demonstrate compliance with the eligibility requirements in accordance with 10 U.S.C. § 4022(d), which states at least one of the following conditions must be satisfied:

(A) There is at least one nontraditional defense contractor or nonprofit research institution participating to a significant extent in the prototype project;

(B) All significant participants are small businesses or nontraditional defense contractors; or

(C) At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government.

9. Partnership and teaming agreements are encouraged to allow for the strengths and specializations of individual Companies to be integrated toward a complete system that is ready to prototype and produce, inexpensive, and operationally effective.

10. Each Phase I submission must be sent in accordance with the instructions provided in

Attachment 3: AOI Guidance.

11. The Government will not evaluate submissions sent through other channels not indicated in Attachment 3: AOI Guidance, or after the Phase I deadline.

12. The Government will notify companies chosen for the Phase II Pitch as soon as practicable.

3.2 Phase I -- White Paper & Placemat

PHASE I WHITE PAPER & PLACEMAT CONTENT

A White Paper submission shall not exceed five (5) written pages using 11-point Times New

Roman font on 8.5x11 inch paper. Smaller type may be used in figures and tables but shall be clearly legible. Margins on all sides (top, bottom, left, and right) shall be at least 1 inch. Each

White Paper submission shall meet the following page count limits and structure:

(1) Title Page (one page maximum and will not count toward the page limit), including:

• Company Name

• Submission Date

• Point of Contact Name

• Title

• E-Mail Address

• Phone Number

• Company Address

• Identification of the design solution (LPM or RM) being addressed.

(2) Affirmation of Business Status Certification (the certification shall be attached to the White

Paper and will not count toward the page limit), including:

• Name of Business Entity;

• North American Industry Classification Standard (NAICS) Code(s);

• CAGE Code, or NCAGE Code, if internationally owned;

• SAM Expiration Date;

• Business Address;

• Business POC Name, Title, Phone Number, and E-mail Address;

• Business Status - Non-Traditional Defense Contractor (NDC), Traditional Defense

Contractor, or means for complying with the 10 USC § 4022(d) NDC restriction.

(3) Data Rights Assertions (one page maximum and will not count toward the page limit), including:

• A table identifying any intellectual property, patents, and inventions involved in the technical solution and the data rights license, computer software license and computer software documentation that will be offered to the Government. A basis must be provided for each assertion. See DFARS 252.227-7013 and -7014 for guidance and template for the Identification and Assertion of Restrictions on the Government’s Use, Release, or Disclosure of Technical Data.

(4) Placemat (utilize Attachment 9 template; will not count toward the page limit), including:

• A completed Placemat for the relevant capability (LPM or RM), provided as Attachment

9 to the AOI, indicating the UNCLASSIFIED TLR(s) the technical solution is claimed to meet or exceed, with detail describing the approach. Instructions for completing the

Placemat are provided within Attachment 9. Phase I submissions are not required to meet requirements provided in the CLASSIFIED Annex to the relevant TLRD.

(5) White Paper Body (5 page maximum), including:

• Technical Solution Concept:

o A Phase I submission may provide only one technical solution. The Government will not accept Phase I submissions that include multiple solution variants.

Companies are encouraged to put forward their best technical solution offering for each problem set (LPM or RM).

o The Government desires technical solutions that meet all requirements in the relevant TLRD.

o LPM or RM Attributes (listed within the AOI) that are claimed for the technical solution and description of how those attributes are met.

o A description of the unique aspects of the technology and the work related to the solution.

o Identification as to whether the effort includes the pilot or demonstration of existing commercial technology (identified as commercially ready and viable technology), or the development of technology for potential defense applications.

If development or adaptation is described, include a suggested path to mature the technology. Include proprietary markings, as applicable.

• Company Viability:

o A brief overview of the Company with a summary of financial readiness or a summary of the top line (gross sales/revenues) as applicable to the technical solution.

o A summary of product commercialization and go-to-market strategy. The Prime vendor must have a personnel and Facility Security Clearance (FCL) commensurate with the highest level of classified access (SECRET) required for

Agreement performance. Include a statement describing the level(s) of security clearance(s) maintained by the Prime Vendor.

• Cost Estimates:

o Include a cost estimate to construct a prototype and two (2) pre-production units

(PPU) for the technical solution.

o Include a Rough Order Magnitude (ROM) estimate of average follow-on units for the future production of the technical solution for a quantity of one (1) with a production start as follows:

▪ LPM: 36 months after initial Prototype OT award

▪ RM: 24 months after initial Prototype OT award

• Schedule: Include a schedule estimate from Prototype OT award to technical solution being ready for at-sea testing installed on a submarine.

PHASE I WHITE PAPER & PLACEMAT BASIS OF EVALUATION

Voting Members will evaluate Phase I submissions for the corresponding technical solution

(LPM or RM) against the following criteria. Phase I submissions will not be compared against each other.

1. Evaluation of the extent to which the Phase I technical solution meets the corresponding

TLRD and eligibility requirements set forth in Section 3.1.8.

2. Evaluation of the technical solution described in the Phase I submission against corresponding AOI Primary and Secondary Attributes.

3.3 Phase II Pitch

PHASE II PITCH CONTENT

In Phase II, invited Companies shall provide an in-person Pitch at their production location intended for use in the prototype project, or other location agreed upon by the Company and the

Government. The Pitch shall demonstrate and provide further details on the concept/technical solution and the technical and business viability of the solution. The Government may elect to use external market research to evaluate a Company’s viability. In addition to the Pitch, the

Government, at its discretion, may request additional written submission(s) to further supplement the information provided in the Phase I submission. In Phase II, the Government will provide the

CLASSIFIED Annex to the relevant TLRD to Companies eligible to receive CLASSIFIED data and may elect to release additional information. During the Phase II Pitch, the Company must address, at a minimum:

• Organizational breakdown:

o Explain the team structure and subject matter expertise within the team.

• Technical Solution:

o Overview of the requirements and AOI Attributes which will be met by the solution.

o Design concept maturity and past operational history (if applicable).

o Software past performance (if applicable).

• Sustainment:

o Sustainment concept for the design.

• Production Capacity:

o Manufacturing readiness, including planned throughput and capacity for prototyping, PPU(s), and potential follow-on production.

o Relevant Government or commercial past performance (if applicable).

o Upcoming site development plans or expansion opportunities.

• Estimated Costs/Schedules:

o Data to support the cost estimates, including non-Government cost sharing, as applicable, and notional prototyping and production schedules submitted in the

Phase I submission. If revisions have been made to the Phase I submission

ROM(s), provide an explanation or clarification for each revision.

• Data Rights Assertions:

o Identify any Intellectual Property (IP) involved in the effort and any associated restrictions on the Government’s use of that IP.

PHASE II PITCH BASIS OF EVALUATION

Voting Members will evaluate Pitches against the following factors:

1. Technical solution demonstrates a clear understanding of performance requirements;

2. Cost estimate and notional schedule are acceptable and realistic;

3. Demonstrated ability to successfully prototype the technical solution design; and

4. Demonstrated plans to transition from a successful prototype to production, including necessary facilities, manning, and resources to support the LPM program long-term.

The Evaluation Board will record Pitches. Pitches may address both CUI and SECRET-level topics; however, only the CUI portion will be recorded. A Pitch may be up to 90 minutes in duration with an additional 90 minutes for a Q&A session. The Company may provide the Pitch onsite at a Company facility or at another mutually agreed upon location. If a Company chooses to provide a facility tour, it will be in addition to the 3 hour Pitch with Q&A. Companies that do not elect to provide a facility tour will be limited to the 3 hour Pitch including Q&A.

Upon completion of Phase II evaluations, the Agreements Officer (AO) will notify the Company that either:

1. The concept/technical solution has been selected for possible award of a Prototype OT, and the Company is invited to submit a full Prototype Proposal;

2. The concept/technical solution is of interest, but not eligible for a full RPP due to limited availability of Government resources; or

3. The concept/technical solution is not of interest to the LPM program.

If the concept/technical solution is of interest to the LPM program but not immediately selected to submit a full Prototype Proposal due to availability of Government resources, the Government may contact the Company with an RPP within 365 calendar days from the Pitch date. If after 365 calendar days from the Pitch date (or earlier, if notified), Government resources are not identified to formally move a Company into Phase III, the Company will no longer be eligible for an award under the AOI.

3.4 Phase III – Prototype Proposal

PHASE III PROTOTYPE PROPOSAL CONTENT

Based upon the evaluations detailed above, the Government may issue an RPP to one or more

Companies. The Government will invite a Company to develop and submit a full written

Prototype Proposal and negotiate the price of a Prototype OT governing the prototype project.

Companies may discuss ideas and details of the Prototype Proposal with the Government during the proposal writing process. Each Prototype Proposal submitted shall consist of two sections:

• Section 1: Technical proposal and schedule; and

• Section 2 Price/cost/schedule portions of the Prototype Proposal.

Companies should note that there are certain terms and conditions the Government is unable to accept. However, prototype projects awarded through this process are flexible to adopt customary industry standards where otherwise legal and meet the Government’s needs.

Section 1 -- Technical Proposal and Schedule:

• Title Page:

o Company Name o Title o Company Point of Contact Name o E-Mail Address o Phone Number o Address o List of any subcontractors or team members o Date of submission

• Abstract statement providing a concise description of the Prototype Proposal.

• Details of the technical solution:

o Describe the background and objectives of the work, Company approach, deliverables, and the resources needed to execute. Include the nature and extent of the anticipated results. Include ancillary and operational issues such as certifications, algorithms, and any engineering/software development methodologies to be used. Detail prototyping and other activities to be performed and associated deliverables, as well as a detailed project schedule that outlines the various phases of work to be accomplished within the proposed period of performance. Companies may refer to the Phase I submission that prompted the

RPP. The Prototype Proposal must clearly demonstrate traceability between the work activities, schedule, and proposed cost/price.

• Government Support Required:

o Identify the type of support, if any, the Company requests of the Government such as facilities, equipment, data, and/or information or materials.

Section 2 – Cost/Price Proposal:

The Company shall propose a total price to complete the prototype project, as specified in the

RPP, and provide any other data or supporting information that is necessary for the determination of a fair and reasonable price. This can include, but is not limited to, commercial price catalog or other proprietary information to help the Government assess project cost. This price shall include, at a minimum, the estimated costs for labor, material/equipment, other direct costs, and subcontracts. The price narrative shall provide details and the basis on the following cost categories for the proposal submission:

• Direct Labor Costs: Provide the basis for which the estimated labor rates and hours were calculated, including labor categories, estimated rates and hours for those individuals.

Provide any Forward Pricing Rate Agreement (FPRA) or Forward Pricing Rate

Recommendation (FPRR) with the Defense Contract Management Agency (DCMA), if any.

• Material/Equipment: Provide a list of the materials/equipment required to meet the technical solution as described in the WP and the estimated cost.

• Indirect Costs: Provide an estimate of the total indirect costs and provide data supporting how the estimate was calculated, including any estimated costs other than labor and material/equipment (i.e., overhead, G&A, etc.).

• Proposed profit.

SECTION 4 – PROTOTYPE OT AWARD(S)

4.1 General Guidelines

Upon favorable review and available funds, the Government may choose to award one (1) or more Prototype OT awards. The AO will negotiate with Companies directly on the Prototype

OT, including milestone payments, if any, and will execute the OT on behalf of the Government.

Only an AO has the authority to enter into or modify a binding agreement on behalf of the

Government.

Companies must have a CAGE Code or NCAGE Code, if international, and must be registered in the System of Award Management (SAM) to receive an award. Companies are advised to commence SAM registration upon receipt of an RPP.

Companies must also register in the prescribed Government invoicing system (e.g., Wide Area

Workflow (WAWF)). The Government will aid those Companies from whom a full Prototype

Proposal is requested in obtaining WAWF access.

Prior to award, the AO must find the Company to be responsible, and the Company must not be suspended or debarred from award by the Federal Government nor be prohibited by Presidential

Executive Order and/or law from receiving award.

Receipt of an RPP does not guarantee that a Company will receive an award. The Government reserves the right, at any point prior to award of a Prototype OT, to cancel an RPP.

4.2 Comptroller General Access to Information

In projects that provide for payments in a total amount exceeding $5,000,000, the Agreement will include a mandatory clause that provides for the Comptroller General the ability to examine the records of any party to the Agreement or any entity that participates in the performance of the

Agreement.

4.3 Procurement Integrity Act (PIA)

As required by 10 U.S.C. § 4022, all Agreements awarded under AOI shall be treated as Federal

Agency procurements for purpose of 41 U.S.C. Chapter 21. Accordingly, the competitive AOI process and awards made thereof must adhere to the ethical standards required by the PIA.

4.4 OT Supply Chain Data Transparency

Each OT shall include a requirement for performers to deliver the following data each month during performance:

• Executed sub-agreements, purchase orders, or other sub-tier agreements;

• Objective measurement and reporting of sub-performer performance, to include variance to established schedule and price baselines; and

• In the case of cost-reimbursable sub-agreements, purchase orders, or other sub-tier arrangements, reporting on costs incurred by sub-performers.

OTs shall be structured in such a way to enable objective measurement of value obtained for consideration provided. Clear, objective, and appropriately valued performance milestones and anticipated outcomes shall be incorporated into all sub-agreements to ensure optimized return on investment and business arrangements reflective of best commercial practices.

SECTION 5 - ITERATIVE PROTOTYPING

Prototype OT(s) awarded will allow for an iterative prototyping process. An iterative prototyping process will allow the Government to modify, by mutual agreement, the work in a prototype project to allow the adaptation and modification of the technology being prototyped to meet additional unique and discrete purposes/mission sets. These additional unique and discrete purposes/mission sets can be generated by the original Government customer or originate with other organizations within the Federal Government.

SECTION 6 – SUCCESSFUL COMPLETION

A Prototype OT is complete upon the written determination of the appropriate approving officials (Program Manager and AO) that efforts conducted under the Prototype OT:

(1) met the key technical goals of the project;

(2) satisfied success metrics incorporated into the Prototype OT; or

(3) accomplished a particularly favorable or unexpected result that justifies the transition to production.

Furthermore, successful completion can occur prior to the conclusion of a prototype project to allow the Government to transition any aspect of the prototype project determined to provide utility into production while other aspects of the prototype project have yet to be completed. Any

Prototype OT shall contain a provision that sets forth the conditions that define successful completion.

SECTION 7 – NON-GOVERNMENT ADVISORS

The Evaluation Board may leverage non-Government advisors in the evaluation of White Papers, Pitches, and negotiations, through Prototype OT execution. Non-Government advisors will have signed non-disclosure agreements (NDA) with the Government. Companies may enter into specific NDAs directly with the non-Government advisors or their corporate entities. Any submission in response to this AOI will constitute a grant of authority by the submitting

Company to the Government to allow the use of non-Government advisors to participate in evaluations of all phases of this process.

The Government understands that information provided in response to the AOI is presented in confidence and may contain trade secret or commercial or financial information, and it agrees to protect such information from unauthorized disclosure to the maximum extent permitted or required by Law, to include:

a. 18 U.S.C. § 1905 (Trade Secrets Act);

b. 18 U.S.C. § 1831 et seq. (Economic Espionage Act);

c. 5 U.S.C. § 552(b)(4) (Freedom of Information Act);

d. Executive Order 12600 (Pre-disclosure Notification Procedures for Confidential

Commercial Information); and,

e. Any other statute, regulation, or requirement applicable to Government employees.

It is the Government’s policy to treat all submissions as controlled information and to disclose their content only for the purpose of evaluation. Restrictive notices notwithstanding, during the evaluation process, submissions may be handled by support contractors for administrative purposes and/or by non-Government advisors to assist with technical evaluation.

Submissions will not be returned. The original copy of each submission received may be retained and all other non-required copies destroyed.