Attachment 2 - Performance Work Statement.pdf

Attachment 2

Performance Work Statement

Titanium Strategic Buffer

1.0 Purpose:

The Government seeks the capability for defense contractors to access Titanium alloy on an expedited basis to support wartime mobilizations, military combat operations/readiness and contingency support. The accelerated release of material shall be achieved through strategic buffer(s) directly and exclusively developed, implemented, and managed by mills/producers qualified by Original Equipment Manufacturers (OEMs) of Department of Defense (DoD)/Defense Logistics Agency (DLA) repair parts and their sub-tier suppliers.

2.0 Background:

Strategic materials are a known constraint in meeting Surge and Sustainment Planning Requirements (SSPR) for DoD. In 2020, the Warstopper Program Management Office (WPMO) awarded a contract to establish and test the effectiveness of a titanium buffer consisting of several forms/chemistry to reduce the manufacturing wait time. There were lessons learned in executing and managing the buffer that are incorporated into this Performance Work Statement (PWS).

3.0 Material Buffer Requirements:

3.1 The Government is seeking a company that will store and rotate intermediate forms of Titanium metal that will reduce the lead time for the DLA/DoD manufacturing base for system sustainment. These intermediates must show a significant (50%) reduction in lead time compared to a standard quoted lead time.

3.2 The buffer stock of material shall be in the forms of billet, sheet, round, and plate. This material should specifically be in a form such that it can be used for rated orders from one of the following six categories:

Armor (ground), Armor (areo), Engines, Non-Areo Military, Military Airframes, and Naval (ship making).

The quality of the material shall be based on the exact application of the form. The grade of material shall be Ti 6-4.

3.2.1 Between task orders, the ratio between the above six categories may change. The Government knows this cannot happen instantly; however, the expectation is that, for every 10% of the buffer that is changed, the change shall take less than a month.

3.2.2 Each task order request for quote (RFQ) will detail the amount of money for the year and the percent of the year’s money for each category. For example:

There will be $500,000 available and it will be distributed as follows: 20% Armor (ground), 20% Armor (areo), 30% Engines, 30% Military Airframes.

Then, in response to the task order RFQ, the vendor will inform the Government what form(s) from the above list would be best for each category and how much weight of each category will be stored.

For example:

Armor (ground): Plate 5,000 lbs Armor (areo): Sheet 4,000 lbs Engines: Round 7,500 lbs Military Airframes: Billet 9,000 lbs

Please note, the above numbers are arbitrary and are being used only for example purposes.

3.2.3 Actual mill product form will be determined at the time of external or internal material order.

The Contractor(s) must be qualified by OEMs under Government contract to supply repair/sustainment parts.

3.3 The Contractor(s) shall use this material for any rated order orders where the form(s) would be applicable and not increase the cost to the final customer. Additionally, the contractor may use its commercial sales to offer material with the smallest minimum buy quantity (through Material Service Center type of services). The contractor must identify the minimum quantity eligible for release in their monthly report.

3.4 Changes that negatively impact supplier capability to restock the buffer shall be reported in writing to the Contracting Officer within ten (10) working days after the supplier becomes aware of such an impact.

All material that is sold from the buffer needs to be documented in the monthly report. Additionally, any orders going to DoD customers should be specifically highlighted and have a value showing how much lead time was saved by using the buffer.

3.5 All material sales will be Business-to-Business transfers that include all of the material title, warranties, and certifications including the validation of the Chain of Custody. Note: The solution will not be Government Furnished Material (GFM). All sales will be at the contracted pricing (for those with existing contracts with the seller) or at the best available pricing (for those without an existing contract).

No premium fees shall apply for using the buffer.

3.6 The responsibility of the forms determination and the ability to rotate them over the course of ordinary business is the responsibility of the Contractor.

3.7 The Contractor(s) shall have a material release execution plan that successfully self-executes the buffer for vendors with DoD contracts using the following guidelines:

3.7.1 Demonstrate a system for identifying purchase request that are associated with DoD contracts.

3.7.2 Demonstrate a system for collecting the following data elements for each buffer request:

3.7.2.1 Buyer’s/requestor’s name,

3.7.2.2 DoD contract number, and

3.7.2.3 the Defense Priorities and Allocations System (DPAS) rating

3.7.2.4 Lead time saved by using the buffer stock

3.7.3 Establish system for Utilizing the buffer on a regular basis to meet DoD contract requirements.

3.7.4 The Contracting Officer Representative (COR) may establish by exception:

3.7.4.1 A monthly reserved quantity that would require COR approval for release per instruction provided by the COR; and/or

3.7.4.2 A limit on the total quantities released in a month to a single release or a span of multiple months; and/or

3.7.4.3 The prioritization of any DoD contract requirement.

3.8 The Contractor is encouraged to use monthly phased material releases to maximize support to other manufacturers or to meet full material requirement when appropriate.

3.9 The Contractor will use standard commercial best practices for packing, packaging, and transportation of the buffer stock to the customer.

4.0 Monthly Inventory and Transaction Report:

The Contractor(s) shall provide the COR a monthly status report NLT 10th day of the month that provides:

4.1 The beginning and ending quantity by material for the month;

4.2 The material releases made during the reporting period to include:

4.2.1 Buyer/requestor Name,

4.2.2 DoD Contract Number,

4.2.3 DPAS rating,

4.2.4 specification,

4.2.5 quantity,

4.2.6 form,

4.2.7 date of order,

4.2.8 date required and

4.2.9 date shipped.

4.2.10 Lead time reduced by using the buffer stock

4.3 Any unfilled release requests during the reporting period to include:

4.3.1 Buyer/requestor Name,

4.3.2 DoD Contract Number,

4.3.3 DPAS rating,

4.3.4 specification,

4.3.5 quantity,

4.3.6 form of material requested

4.3.7 Reason why request could not be filled (e.g., exceeds monthly quantity). Note: this information will be used to assess the need to expand the buffer quantities or for adding additional specifications.

4.4 The COR will monitor inventory management. Inspections will include, but not limited to, visual verification and review/ observation of the materials’ storage conditions and quantities.

5.0 Quality Control:

The Contractor shall provide and maintain a comprehensive Quality Control Process Surveillance and Testing Plan (QC Plan) to include a Stock Rotation Plan that shall be reviewed and accepted by the Government before award.

6.0 Quality Surveillance:

The Government shall provide the Contractor with a Quality Assurance Surveillance Plan (QASP) to include a schedule of planned on-site inspection visits in response to the Contractor supplied Quality Control Process Surveillance and Testing Plan at time of award. The COR shall act as the Government’s Quality Assurance (QA) Specialist and will be named at the time of award. The COR will inspect all aspects of the contractor’s performance under their Quality Control Process Surveillance and Testing Plan.

The COR will observe and may ask the Contractor to repeat materials tests to verify product performance.

7.0 Payment:

Payment will be made monthly via Wide Area Workflow (WAWF). Invoices must be submitted no later than three business days following the end of an invoicing period. The invoice shall include a copy of the monthly report as an uploaded attachment to the WAWF 2-in-1 invoice.

8.0 Period of Performance:

The IDIQ contract shall consist of a one-year base ordering period, and two (2) one-year option periods. The Government intends to award a single one-year task order against the IDIQ during each of the three ordering periods but reserves to right to issue additional task orders as needed.

9.0 Place of Performance:

Performance is expected to take place at the Contractor’s facility.