Atch 1 ToC SOO.docx

Theory of Constraints (ToC) Implementation to Support Combat-Focused Logistics

Statement of Objectives

Purpose: ToC is a management methodology that enables highly variable organizations to identify, focus on, and resolve the critical issues affecting their goals across the Logistics enterprise. The HAF/A4L Tesseract team seeks a capability to contract ToC services for operations and maintenance mission sets which require up to classified clearance. HAF/A4L Tesseract seeks to establish Blanket Purchase Agreements with two vendors (one contract per vendor) to execute ToC services up to TOP SECRET classification.

Background: HAF/A4 instituted operational ToC proof-of-concepts started in AMC, AFGSC, and ACC in 2018. Initiatives have expanded to 35+ projects across Aircraft Maintenance, Logistics Readiness, Depot, Supply Chain Operations, and Operations processes. The Air Force has gained readiness by applying ToC to base-level pilot production/sortie generation systems. Some Operations/Maintenance Implementations include, but are not limited to:

· Bundling scheduled maintenance to increase their phase throughput 55% and expose an additional 3 aircraft per day for utilization.

· Implementing block academics, synchronized counter-air phases, and controlled the WIP (work-in-process) of student release; increasing number of effective sorties per week

· Increasing the number of Pilot Flight Training missions, bundled mission planning, modified the check ride process, and bundled scheduled maintenance. Their ToC solutions improved Field Training Unit pilot training throughput by 56% and successfully posturing themselves to absorb the increase of incoming students through FY25.

· Mitigating a challenging year due to a combination of one-time crew conversion, a growing student backlog, and fleet modifications; which resulted in a 500 sortie deficit. The Operations Group re-designed sortie configurations; implemented the “ground sortie” concept; and adopted a new scheduling process using a wing-level priority logic to increase throughput effectiveness of every sortie. In 6-months, the Operations Group and Training Group increased crew readiness by 131% and increased sortie training throughput by 107%.

· Mitigating a Primary Aircraft Inventory reduction of 9 aircraft which equated to an ~1800 sortie deficit. To overcome this deficit, the Wing used ToC to prioritize meeting the sortie requirements and Wing progression through scheduling changes and improved training efficiency. They also enhanced pilot availability; developing a new Flight Lead syllabus and utilizing adversary air to boost upgrades.

Objective: To accelerate combat-focused logistics through the Theory of Constraints institution at the operational level. The industry partner shall conduct the following:

· Establish a standard methodology to apply ToC concepts to processes that will smooth the flow of processes.

· Conduct location Leadership workshop on ToC concepts and how to apply the concepts of ToC, using the standard methodology, to get targeted results.

· Conduct core team (process owners) workshop on ToC concepts and how to apply ToC concepts, utilizing the standard methodology, to smooth the flow processes.

· Provide data collection and analysis of current end to end processes at location to determine where ToC should be applied to obtain the greatest return on investment.

· Work with the core team (process owners) to design and detail out the ToC solution to fit the locale’s operation that is presumed to provide the greatest return on investment. This includes defining the policies, rules, business processes, roles and responsibilities and metrics measured to access solutions, as well as metrics used to measure gains.

· Facilitate buy-in workshops to obtain organizational consensus at the process owner and local leadership level.

· Articulate a standard methodology to apply ToC and the process to which ToC concepts will be applied, anticipated gains, and the metrics used to measure anticipated gains.

Contract Execution: Each Blanket Purchase Agreement will have a $4.75M contract ceiling to provide ToC services up to a TOP SECRET classification. HAF/A4L Tesseract will execute upon contract award a $250K initial buy for a 3-month ToC event at a CONUS location up to SECRET. HAF/A4L Tesseract will provide representatives to observe some or all of these initial events. Additional optional buys will be executed as needed to fulfill ToC services requirements up to TOP SECRET at CONUS and OCONUS locations.

Contractor Responsibilities: Contractors will be responsible for ensuring all requirements are met for travel and entry to CONUS and OCONUS bases including complying with local base policies and guidance. Contractors will not initiate services on location until these travel requirements and a DD254 (if applicable) has been completed for the effort. Contractors will ensure that their personnel are fully loaded into DISS and a NACLC background check is completed for all efforts. Contractors will ensure that personnel working on these efforts meet all security clearance requirements and disclose their clearances to local base personnel upon arrival to the operating location.