AVN_Form_A55_Public_Notification_of_Bundled_Requirements_Inc_4_Commercial.pdf

AVN Form A55, NOV 2017

Public Notification of Bundled Requirements

Solicitation Number: SPAPR1-19-R-009U Estimated Award Date: 28 FEB 2020 Description of Product(s)/Service(s)/Program: A Firm Fixed Price proposal for the acquisition of a comprehensive and holistic performance based supply chain management program in support of the P-8 Commercial aircraft parts with The Boeing Company (cage: 0PXV4).

Contracting Officer: Charles Hagee: Charles.hagee@dla.mil; 215-737-6141

Justification: The Contracting Officer has found the bundling of this requirement necessary and justified based on the following:

- Market Research result:

Potential Sources

DLA Aviation performed a comprehensive market research effort to identify potential sources in accordance with FAR Part 10.0002(b)(2). DLA Aviation issued a Federal Business Opportunities (FedBizOpps) synopsis on March 11, 2019 as required by FAR 5.201. The results of the market research efforts did not identify any source other than Boeing with the capability or interest to meet the entirety of the requirement.

- Cost Savings:

The anticipated contract for this effort will be awarded against the Boeing Captains of Industry (BCOI) contract, SPRPA1-14-D-002U. The PCO has determined to proceed with the initiative based on a minimum estimate of 5-10% in cost savings per FAR 7.107, which reflects the expected savings associated with the various efficiencies that are anticipated under the COI. The estimated value of the program is $8.0M—for a total of approximately 1,708 NSNs—and DLA expects to save a minimum of $400,000 per FAR 7.107 based on the above.

- Historical Acquisition:

There is limited P-8 acquisition history for these DOD common consumable items. The P-8 aircraft platform is still in the provisioning process.

The three-year total dollar value of the historical DLA contracts awarded to support the customers utilizing these NSNs is valued at $8.0M, with approximately $2.5M going to small business, an average of $843,000 per year. This P-8 contracting effort is not expected to affect these numbers in the future.

Through this effort to bundle all of the P-8 consumable requirements under one contract, the Government will realize significant savings. The three-year acquisition history shows that there will be no impact to small business. There has been limited procurements made in support of the P-8.

The procurement history shows that no subcontractors did over $1M in total business with the Government over the past three years. Additionally, only one of the CAGE codes averaged over

AVN Form A55, NOV 2017

$500,000 per year over the three-year period. The P-8 award will not impact this business continuing to go to these small businesses.

The table below displays the three-year totals for small business expenditures for the top ten CAGE codes supporting the P-8 NIIN customers:.

CAGE

Code

Total by CAGE - 3 Years

99657 $ 713,115.50

0GD25 $ 411,844.73

4UBF3 $ 227,630.75

7Z016 $ 212,001.36

44WW1 $ 137,361.91

1N8T8 $ 122,600.89

7BRY1 $ 95,962.06

1WZZ2 $ 67,198.50

0KD40 $ 47,537.00

65777 $ 45,600.87

- Small Business Action Plan

Under this program, Boeing is completing a Small Business Participation Plan, which will be closely monitored under COI.

The benefits of having Boeing act as the integrator with "single point accountability" for the supply chain transfers to the small business community in a variety of ways. Under COI Phase I, Boeing introduced competition at unprecedented levels in an effort to reduce costs. The introduction of competition to requirements previously subcontracted under single source scenarios resulted in the following small business statistics, which are an increase from those previously achieved by Boeing. The following statistics are actuals from Boeing’s Subcontracting Plan dated 07 October 2014:

PB Increment 1 - Small Business 62.96% PB Increment 2 - Small Business 41.08% Stock Increment 1A - Small Business 74.94%

- Other matters:

The proposed acquisition cannot be divided into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement. Delivery schedules cannot be established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government. Finally, the proposed acquisition cannot be structured so as to make it likely that small businesses can compete for the prime contract.