5.14.26 Statement of Work (SOW).pdf

SOLICITATION#: SPE4AX-26-R-0018

STATEMENT OF WORK

(DLA Direct)

Federal Supply Groups: 62 (Lighting Fixtures and Lamps) and 59 (Electrical and Electronic Equipment Components)

In Support of All U.S. Military, Foreign Military, and Non-Military Customers

DRAFT

This Statement of Work (SOW) outlines the Government’s requirements for material support under Federal Supply Groups 62 (Lighting Fixtures and Lamps) and 59 (Electrical and Electronic Equipment Components). The requirement is being solicited as a 100% 8(a) set aside and the Government anticipates awarding multiple, Firm-Fixed Price, Indefinite Quantity Long-Term Contracts (LTCs) consisting of a four (4)-year base performance period and two, three (3)- year option periods IAW FAR 52.216-27 and FAR 16.504. Contractors are required to price 25% of the total market basket National Stock Numbers (NSNs) to be considered for award.

Each awardee’s business size will be verified via System for Award Management (SAM). If the supplier’s status, as documented in SAM, is not compliant with the set-aside requirements as of the date of the proposal submission, the proposal will be considered non-responsive. No action will be taken on the proposal, and the supplier will be notified of their removal from the evaluation process.

The purpose of this solicitation is to provide DLA Direct (DD) support for NSNs within North American Industry Classification System (NAICS) code 335999 (All Other Miscellaneous Electrical Equipment and Component Manufacturing) and the following Federal Supply Groups (FSGs):

• 62 (Lighting Fixtures and Lamps)

• 59 (Electrical and Electronic Equipment Components)

Background: The Lighting and Electrical LTC will replace numerous individual transactional procurements for Defense Logistics Agency (DLA) depot-stocked items to support the warfighter more effectively. The goal is to develop long-term supplier relationships to decrease Administrative Lead Time (ALT), improve Production Lead Time (PLT), and improve material availability in a competitive environment.

1. SCOPE

1.1. The Statement of Work (SOW) outlines the requirements of the Lighting and

Electrical strategic project to acquire and provide a broad range of competitive NSNs for Federal Supply Groups 62 and 59. Each awardee is required to provide the NSNs to the Government in accordance with (IAW) the terms and conditions of their respective contract.

2. CONTRACTOR REQUIREMENTS

2.1. Business Management: Each awardee is responsible for providing the awarded

NSNs IAW the terms and conditions of the contract. Each awardee shall be responsible for:

• Selecting capable contractors to provide the required items while managing numerous delivery orders to support required delivery dates.

• Managing numerous contractors with various levels of capability and technology expertise while maintaining processes and procedures to prevent and resolve performance and quality issues.

• Maintaining the technical expertise to meet the sourcing and quality requirements while maintaining processes and procedures to assure the requirements for packaging, marking, packing material, qualities transportation, as defined by the contract, are met.

• Maintaining a plan to assure items are purchased only from approved sources that do not violate country of origin limitations, small business manufacturing requirements, or other limitations established by this contract.

2.2. Order Processing and Invoicing: Each awardee is required to receive electronic orders, submit electronic invoices, and submit requests for payment through Wide Area Work Flow (WAWF). Payments to each awardee shall be made via Electronic Funds Transfer (EFT).

2.3. Place of Delivery: The supplier shall deliver the NSNs to the DLA direct location(s) identified in each delivery order.

2.4. Surge and Sustainment: The Government is not obligated to order any of the Surge quantities, and the supplier shall not ship such quantities without receipt of an order clearly designated for surge quantities. Surge requirements will be inactivated during the final year of the contract period; inventory held for potential surge requirements may be used to fill normal-priority delivery orders.

3. GOVERNMENT PROPERTY/TOOLING/DATA/CPARS REPORTING

3.1. Government Furnished Property (GFP): No GFP will be provided by the Government at this time.

3.2. Contractor Performance Assessment Rating System (CPARS): This contract may require CPARS reporting as described in FAR Part 42.15. Based on Table 1-Business Sector, Dollar Threshold and Reviewing Official located on https://www.cpars.gov/cparsweb/assets/documents/CPARS-Guidance.pdf , the CPARS threshold is required for contracts that exceed $5M.

4. On Ramp, Open Season, and Off Ramp

4.1. On Ramping: Consistent with FAR 16.504-4, the Procuring Contracting Officer

(PCO) has determined that it is in the Government’s best interest at all times during https://www.cpars.gov/cparsweb/assets/documents/CPARS-Guidance.pdf the term of the Lighting and Electrical Strategic Program that there remains an adequate number of contractors eligible to compete for any NSN add groups. Over time, the total number of contractors may fluctuate due to various reasons including industry consolidation, significant changes in the marketplace or advances in technology, general economic conditions, the Government’s exercise of the off-ramp process, a need to add or replace awardees, or other reasons.

Recognizing this, DLA intends to periodically review the total number of contractors participating in the Lighting and Electrical LTC and determine if it would be in the Government’s best interest to initiate an Open Season to add new contractors to the Lighting and Electrical Strategic Program.

4.2. Open Season Procedures:

If DLA determines that it would be in the Government’s best interest to open a new solicitation to add new Lighting and Electrical Strategic Program contractors, the PCO may do so at any time provided that:

a) The solicitation is issued under then-applicable federal procurement law.

b) A decision is made to award the same or a different number of Lighting and

Electrical LTCs than the number awarded following the original solicitation, depending upon the overall quality of the offers received.

c) Any Offeror that meets the eligibility requirements may submit a proposal in response to the new solicitation.

d) The award decision under any solicitation is substantially based upon the same evaluation factors as the original solicitation. DLA reserves the right to update the criteria based on the consideration of market conditions, the utility of the criteria, and program needs.

e) The terms and conditions of any awards resulting from a new solicitation are not materially different from the existing versions of the LTC.

f) The terms for any such new awards from a solicitation will match the existing term for all other Lighting and Electrical Strategic Program contractors, including the option periods.

g) Any contractor who receives an award under the Lighting and Electrical LTC is eligible to submit a proposal in response to add groups and receive delivery order awards with the same rights and obligations as any other Lighting and Electrical Strategic Program Contractors.

4.3. Off-Ramping: To ensure the success of the Lighting and Electrical LTC, the Government reserves the unilateral right to off-ramp contractors who do not meet the performance standards of the contract or who are no longer needed to meet program objectives. The Government also reserves the unilateral right to off-ramp contractors on other bases permitted under the contract, Federal regulations, or other law. Contractors may be restricted from proposing on new NSNs while continuing to perform on orders against their previously-award NSNs. Off-ramping may result from one or more of the following conditions:

a) The contractor is failing to meet the standards of performance or other requirements of the contract. Prior to off-ramping a contractor for performance failures, the Government may, at the Contracting Officer’s discretion and if in the Government’s interest to do so, provide a cooling off/remedial period during which the contractor will not be allowed to compete on any add groups or offerings associated with the Lighting and Electrical Strategic Project. The contractor will be required to submit a get-well plan. The time period for the cooling off/remedial period will be at the Contracting Officer's discretion and will depend on the specific performance issues that the contractor is experiencing.

b) The Government is permitting such contractor’s IDIQ contract to expire instead of exercising the option or implementing a termination for convenience (if applicable and only if such action is in the Government’s best interest).

c) The Government is implementing a termination for default, if applicable.

d) The Government is taking any other action which may be permitted under

Federal regulations or other law consistent with the contract terms and conditions.

5. ADDITION/DELETION OF NSNs

5.1. Addition/Deletion of NSNs: NSNs that are not specifically identified at time of contract award may be added to or deleted from the contract. All items must meet the same compliance criteria established by the baseline contract (similar type items within the specified FSG). For NSNs identified as adds to the Lighting and Electrical LTC, competition will be restricted to the current awardees only.

During any performance period, the Government may unilaterally delete any NSN for reasons such as changing demand patterns, obsolescence, NSN substitution, or because it no longer has an application. The awardee is to notify the Contracting Officer of any NSN deemed to be obsolete, unavailable, out of production, or superseded, and may recommend deletion of that NSN from the contract. The notice shall include complete information as to appropriate superseding, substitution, or alternate item and how such NSN meets the fit, form, function, and interchangeability requirements of the obsolete, unavailable, out of production, or superseded NSN. If an obsolete NSN has no replacement, the notice shall include information concerning the availability of alternate sources or substitutes. If the Contracting Officer agrees to remove any NSN from the contract, removal of the NSN will be done by unilateral modification.

In addition, if a Contractor fails to perform at 90% on-time delivery (OTD) for the overall contract effort or for individual items under contract, the Contracting Officer may delete the item from that contract and recompete the item.

5.2. Option Period/ Evaluation and Award: The period of performance for the resulting contracts may be up to 10 years, consisting of a base 4-year period beginning on the date of award and two, 3-year option periods immediately following the base period, to be exercised at the determination and discretion of the Contracting Officer. The Contracting Officer will use past performance information, including performance information from the base period of this contract. The Contracting Officer will make a determination prior to the end of the base period concerning eligibility of a contractor to continue in the next period of performance. If the contractor has not maintained an overall OTD rate of 90%, the Contracting Officer will determine whether to allow the contractor to compete in the option period.

Working with the Acquisition Specialist and/ or Contracting Officer, the contractor will have the right to review the data used in making this determination and provide input if they disagree with the outcome.

As mentioned above, the contractor shall be measured against performance requirements within the contractual performance periods and will be notified by the Contracting Officer of performance in accordance with the standards.

If the contractor does not meet the requirements as established in this section, the contractor may be disqualified from further participation within this multiple award IDIQ contract. Based on the performance assessments, if a contractor is disqualified from further participation, or if the Government is notified by a participating contractor that they will no longer participate in the overall contract, the Government shall assess the viability of the continued performance of this contract with the remaining participating contractors.

5.3. Guaranteed Minimum: Per FAR 16.504, “Indefinite-Quantity Contracts,” the minimum contract value is defined as the guaranteed monetary value of the aggregate orders issued during the base performance period only. The minimum will not guarantee orders for any NSN or group of NSNs. The Government will NOT guarantee a minimum for the remaining performance periods.

5.4. Transportation: Delivery shall be FOB Destination. Shipments may be to any OCONUS or CONUS DLA Depot or any military and non-military global customers supported by the program. The supplier shall consolidate shipments from the same source to the same destination whenever possible. Inspection/Acceptance location is specified in the attached Quality Matrix spreadsheet.

5.5. Delivery: The supplier shall deliver directly to the location designated on each delivery order on an FOB Destination basis. The supplier shall ship the ordered NSNs to ensure arrival by the required contract delivery date specified in the delivery order. The required delivery days for each NSN are indicated in the attached Schedule B pricing worksheet. spreadsheet.

5.6. Metrics: All contractors shall maintain a minimum 90% OTD for each item they are awarded. However, the expectation is that all contractors make every effort to meet the specified delivery dates 100% of the time. OTD will be tracked annually using the previous 12-month delivery performance to determine the OTD rate. Reports showing the delivery rate will be provided to the contractor within 30 days after the end of each performance year. Once the contractor receives the OTD report from the Government, the contractor has 14 days to submit discrepancies. All discrepancies must be accompanied by proof of OTD to be considered by the Government. If the contractor has not maintained an overall OTD of at least 90% for each item ordered, the Contracting Officer may determine that it is in the Government’s best interests to remove that NSN from the contractor’s award or to consider removal of the contractor from the Lighting and Electrical LTC. If the awardee does not meet the requirements established, the Contracting Officer may also determine the contractor ineligible to receive additional NSNs.

6. Price breaks: The contractor is requested to provide price breaks for all items, especially items with a Minimum Order Quantity (MOQ) of 25 or less.

7. Solicitation Cancellation

7.1. The Government reserves the right to cancel this solicitation and is not liable for any solicitation preparation costs offerors may incur.