Attachment A - PWS.pdf

CUI

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

Source Selection Information, See FAR 2.101 and 3.104

Performance Work Statement (PWS) Strategic Buffer 300M Grade Steel

SP8000-22-R-0009

1.1 Background:

The Under Secretary for Acquisition in September 1992 stated that Defense Logistics Agency (DLA) would be the principal agent for the Warstopper Program. Shortly thereafter, Congress created a separate Warstopper budget line to fund the preservation of critical industrial capabilities for items that had a declining industry base. DLA's Warstopper Program has been successful in providing a stable industrial base for selected Warstopper items managed by the Agency. DLA increased industry's capacity to provide surge and sustainment of selected Warstopper items and has a mission to mitigate risk associated with surge and sustainment of products utilized by the Warfighter.

Strategic materials are a known constraint in meeting Surge & Sustainment Planning Requirements (S&SPR) for the Department of Defense (DoD). As a result, the Warstopper Program Management Office (WPMO) established a pilot project in FY2008 to establish and test concepts for using material buffers to reduce the manufacturing wait time and meet Surge and Sustainment Requirements as they occur. The initial buffers covered two grades of steel and three fibers.

Incorporating the lessons learned from the pilot project, in 2012, the Government awarded several contracts for a strategic steel grade 300M buffer to enable DoD contractors access to this material on an expedited basis to support wartime mobilization, military combat operations/readiness and contingency support.

1.2 Objectives

The objective of this requirement is to establish, manage and maintain an inventory of steel grade 300M. This material buffer will make 300M readily available to support manufacturers of DoD/DLA repair parts. The reserve buffer inventory will serve as a mitigation strategy to ensure availability of 300M to meet production and sustainment of DLA procured products.

1.3 Scope

The scope of this requirement is to seek offers from mills/producers that are currently certified for the production of steel Grade 300M to establish, manage and maintain at the Contractor’s facility a strategic material buffer to improve availability (lead time) of steel Grade 300M that would directly support manufacturers of DoD/DLA repair parts. The material buffer should contain a maximum monthly quantity for the various forms (size and shape) and guarantee a lead time for the material requirements listed in Table 1, Maximum Monthly Requirements.

Uninterrupted access to the 300M inventory will allow for commercial capability to support wartime mobilization and sustain military combat operations.

Table One (1): Maximum Monthly Requirements

Grade

For Reference Only Monthly Requirement

(Pounds) Specifications Applications

300M

AMS-6257, AMS-6417, AMS-6419,

BMS 7-26, BMS 7-26N TYPE 1, C-

05- 1190, CASTLE METALS

K44220-03, CE-0896F, CPS 4911,

DMI-300M, DMS 1935, K44220-01,

K44220-05, C-05-1190B TYPES A&B, MIL-S-

8844D+AMD#1 Class 3 and United Defense 0300M Revision I

Aerospace and other

20,581

Torsion bars

11,297

1.4 Material Buffer:

1.4.1 The Contractor shall produce, at a minimum, the stated maximum monthly material quantity from the buffer as shown in table 1. The Contractor should use its commercial sales to offer material with the smallest minimum buy quantity (through Material Service Center type of services).

1.4.2 The Contractor shall have a Stock Rotation/ Quality Control Process Surveillance and Testing Plan (QC Plan) that maintains a mix of melts, where possible, to maintain the freshness and/or ensure incorporation of any technological advances resulting in industry wide changes to specifications or production techniques. This QC Plan shall account for expected material yield loss and/ or scrap that may occur during the processing of material.

1.4.3 Changes that negatively impact supplier capability to produce the products at the maximum quantities listed in Table 1 must be reported in writing to the Contracting Officer Representative (COR) within ten (10) working days after the supplier becomes aware of such an impact.

1.4.4 Release of Buffer Material: All material orders will be Business-to-Business transfers that include all of the material title, warranties and certifications including the maintaining of the Chain of Custody.

Note: The solution will not be Government Furnished Material (GFM). All orders 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 apply for using the buffer. The Contractor shall fund the replenishment and/ or reconstitution of the buffer materials with funds obtained from these Business-to-Business orders.

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

1.4.4.1 Release from the buffer requires the:

1.4.4.1.1 Buyer’s/requestor’s name,

1.4.4.1.2 DoD contract number, and

1.4.4.1.3 Defense Priorities and Allocations System (DPAS) rating

1.4.4.2 Utilize the buffer on a regular basis to meet DoD contract requirements.

1.4.4.3 The Contracting Officer may establish by exception:

1.4.4.3.1 A monthly reserved quantity that would require Contracting Officer approval for release per instruction provided by the Contracting Officer: and/or

1.4.4.3.2 Restrict the total quantities released in a month to a single order (but an order may span multiple months); and/or

1.4.4.3.3 Set a priority on any DOD contract requirement.

The Contractor shall encourage monthly phased material releases to maximize support to other manufacturers or to meet full material requirement when appropriate.

1.5 Deliverables: Monthly Inventory and Transaction Report:

The Contractor will provide the Contracting Officer’s Representative (COR) a monthly status report no later than (NLT) 10th calendar day of the month (or the next business day, if the 10th day falls on a non-business day) that provides:

1. The beginning and ending quantity by material for the month:

2. The current commercial price per pound for each of the specific materials in the buffer

3. The material releases made during the reporting period to include:

• Buyer/requestor Name,

• DoD Contract Number,

• DPAS rating,

• specification,

• quantity,

• form,

• date of order,

• date required and

• date shipped.

• dollar value of order

4. Any unsupported releases requests with—

• Buyer/requestor Name,

• DoD Contract Number,

• DPAS rating,

• Specification,

• Quantity,

• Form, and

• Reason(s) why request could not be supported (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.

1.6 Place of Performance:

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

1.7 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 as outlined in Paragraph 1.4.2., above.

1.8 Quality Surveillance: The Government shall provide the Contractor with a Quality Assurance Plan 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 Contracting Officers Representative (COR) shall act as the Government’s Quality Assurance Specialist (QA) and will be named at the time of award. The COR will inspect all aspects of the

Source Selection Information, See FAR 2.101 and 3.104 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.

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

1.9 Contracting Officer’s Representative (COR) Joie Coppedge

Mr. Joie Coppedge Chief, Industrial Preparedness Branch DLA Aviation VED Comm: 804-279-3073 Email: joie.coppedge@dla.mil

2.0 Government Furnished Equipment and Facilities: The Government will not provide any furnished equipment and facilities under this effort and PWS.

2.1 Government Furnished Information: The Government will not provide any additional Government furnished information that is not already covered under this effort and PWS.

Controlled Unclassified Information (CUI):

Controlled by: DCSO-F2 CUI Category: PRVCY Distribution: DLA/J6/Strategic Materials/DCSO POC: Matthew Fox, Contract Specialist; (571) 363-7958 José M. Villanueva, Contracting Officer; (703) 395-3844 Joie Coppedge, C ontracting Officer’s Representative (COR); (804) 279-3073 mailto:joie.coppedge@dla.mil