ORCC- SECTION C- Draft PWS.docx

PERFORMANCE WORK STATEMENT

TABLE OF CONTENTS

PERFORMANCE WORK STATEMENT

1.0- General Information

This Performance Work Statement (PWS) defines the effort required to implement this O-Rings Competitive Contract (O-RCC) for the Defense Logistics Agency (DLA) Land and Maritime. This contract will be a 10-year Indefinite-Delivery Indefinite-Quantity (IDIQ) multiple award contract supporting the Defense Logistics Agency (DLA), the Department of Defense (DoD) and any other Federal Government Agency. The proposed IDIQ contract will have an ordering period of four (4) years, and two three-year (3) year option periods, totaling 10 potential contract years.

1.1 Objective

The primary objective of this contract is for a contractor to provide support for any DLA managed O-ring product, used by the DoD or the Federal Government. The objective of this contract is to award the initial pool of prime awardees, who have undergone non-price and price evaluation using the factors discussed in the source selection evaluation factors (Section M). Prime awards will allow DLA to provide one time spot buys, one-time urgent spot buys, two-year LTCs for high demand and/or high priority NSNs, and up to five-year LTCs for specific NSNs. If required, the Contracting Officer will make a competitive range determination based on these evaluations. Discussions and negotiations will be held with all contractors included in the competitive range. The Government will evaluate offerors proposals and select a pool of highly rated vendors that may ultimately consist of manufacturing sources, dealers, and distributors that will ensure warfighter support and sustainment for the O-Rings spare parts. A pool of awardees will be chosen based on the evaluation factors and are considered the “Most Highly Rated” vendors. NSNs will be competed among the Most Highly Rated awardees for either a long-term contract or fixed quantity purchase orders, depending on the need for the item. The solicitation also will provide for incorporating an “open season” to add more vendors to the pool at any time during the contract, if the DLA determines it to be in the best interest of the Government at that time to add more vendors to enhance supply chain support and unit price control. See paragraph, 11.0 below for the open season processes.

This PWS describes the overall support requirements of the O-RCC. A more detailed PWS or Technical Requirements may be included as part of each order’s Request for Quote/Request for Proposal (RFP). Specific deliverables beyond what is covered in this PWS may also be required in an order. In the event of a conflict between the O-RCC and the PWS, this PWS and any supplemental PWS or Technical Requirements, shall take precedent.

1.2 Scope

The scope of the contract includes any DLA managed O-ring product, used by the DoD or the Federal Government and identified in one of the following Federal Supply Classes:

1005- Guns, thru 30 mm 1025- Guns, over 150 mm - 200 mm 1055- Launchers, Grenade, Rocket and Pyrotechnic 1240- Optical Sight and Range Equipment 1720- Aircraft Launching Equipment 2540- Vehicle Furniture and Accessories 2590- Miscellaneous Vehicle Components 2805- Gas Reciprocating Engine and Components, Except Aircraft 2815- Diesel Engine and Components 2940- Engine Air and Oil Filters, Strainers and Cleaners, Except Aircraft 2990- Miscellaneous Engine Accessories, Except Aircraft 3040- Miscellaneous Power Trans Equipment 4310- Compressors and Vacuum Pumps 4320- Power and Hand Pumps 4730- Fittings and Specialties; Hose, Pipe and Tube 4820- Valves, Nonpowered 4921- Torpedoes Maintenance, Rep, and Checkout Specialized Equipment 4940- Miscellaneous Maintenance and Rep Shop Specialized Equipment 5330- Packing and Gasket Materials 5331- O-Rings 5340- Hardware, Commercial 5365- Bushings, Rings, Shims and Spacers 5999- Miscellaneous Electrical and Electronic Components

1.3 Contractor Responsibilities

The Contractor shall:

· Function as a source of supply for the population of NSNs within the scope of the O-RCC solicitation.

· Contractors must submit pricing for all 201 NSNs listed on the Price Evaluation List (PEL) prior to the solicitation closing. All 201 NSNs listed on the PEL will be used for the determination of the competitive range and for award evaluation.

· Contractors must deliver awarded NSNs within required delivery timeframe.

· Contractors must propose on 75% of the NSNs procured under Sections 2.6.1 and 2.6.4.

· The Contractor shall institute a quality and inspection program that ensures the spare parts received from its vendors, subcontractors and suppliers are in strict accordance with the technical and quality requirements specified by the Government for the item.

· Contractors shall perform all other responsibilities and tasks not listed under Section 1.3 Contactor Responsibilities but described in the entire solicitation.

1.4 Acronyms/Definitions

The following list is commonly used acronyms and abbreviations:

· AMC: Acquisition Method Code

· AMSC: Acquisition Method Suffix Code

· ANSI: American National Standard Institute

· ASQ: Alternate Source Qualification

· Business Day: A 24-hour period after the triggering event, applicable time zone, not including weekends and holidays.

· CAGE: Commercial and Government Entity

· CDRL: Contract Data Requirements List

· cFolders: A government website where a contractor may access drawings. https://pcf1x.bsm.dla.mil/cFolders

· Ceiling Pricing: The maximum unit price a contractor can charge the Government for a NSN for a particular contract range and year.

· CI: Configuration Items

· Contractor: The prime O-RCC contract holder(s)also referred to as Prime Awardee.

· Contract Calendar Year: is (i) a period of 365 consecutive days (366 days in a leap year) commencing on the date of contract, or (ii) a period of 365 consecutive days (366 days in a leap year) commencing on the first day following the last day of the preceding contract calendar year. If any contract period consists of more than one contract calendar year, the Government's estimated quantities for that contract period will be the estimated annual quantity multiplied by the number of years in the period, unless the annual estimates are adjusted pursuant to Consumption Reports delivered by the Contractor. The contract year shall expire at 12:00 midnight, Eastern Standard Time (EST) on the date described herein.

· CONUS: Contiguous United States

· Critical Application Item (CAl): An item essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by the military services.

· Critical Safety Item (CSl): All parts whose failure would cause loss of life, permanent disability or major injury, loss of a system, or significant equipment damage.

· CUI: Controlled Unclassified Information

· Customer: A specific Army/Military activity supported under the O-RCC contract.

· DCMA: Defense Contract Management Agency

· DFARS: Defense Federal Acquisition Regulation Supplement

· DFAS: Defense Finance and Accounting Service

· DIBBS: DLA Internet Bid Board System (https://www.dibbs.bsm.dla.mil)

· DLA: Defense Logistics Agency

· DLAD: Defense Logistics Acquisition Directive

· DoD: Department of Defense

· ECP: Engineering Change Proposal

· EDI: Electronic Data Interchange

· Engineering Support Activity (ESA): The military service organization designated as responsible for engineering support and technical decisions for a given part or component in that service.

· Estimated Annual Quantities: At the start of the contract and when new items are added to this contract, the Government's projected needs for each NSN are stated in terms of "estimated annual quantities". The estimated annual quantities are estimates only and represent the Government's good faith estimate of the quantities the Government anticipates will be required for distribution during a contract calendar year at the DLA Land and Maritime customer site(s) designated in this contract. The estimated annual quantities are for evaluation purposes only. This information is provided to assist contractors in developing their proposals, however the Government neither warrants nor guarantees that the Contractor will realize any of the estimated annual quantities provided herein during the performance of the contract.

· Fair Market Price: A price based on reasonable costs under normal competitive conditions and not on lowest possible cost.

· FAR: Federal Acquisition Regulation

· FAT: First Article Test

· FDT: First Destination Transportation

· Federal Supply Class (FSC): Federal materiel classification groupings (see H2 - Groups and Classes (dla.mil)

· FMR: Financial Management Regulation

· FMS: Foreign Military Sales

· F.O.B.: Free On Board; without charge to the purchaser for delivery on board or into a carrier at a specified point or location.

· Formal Implementation Plan: The schedule of activities to implement performance at the O-RCC site.

· FSG: Federal Supply Group

· ICG: Item Category Group

· ICP: Inventory Control Point

· IDIQ: Indefinite-Delivery Indefinite-Quantity

· Interchangeability: Includes all specified requirements for form, fit, function, interface, and compatibility of the specified part. For an alternate or substitute part to be interchangeable with the specified part, it must possess the same functional and physical characteristics as to be equivalent in performance and durability of the specified part, and it must be capable of being exchanged one for the other without alteration of the part, or of adjoining parts, and without selection for fit and performance. The alternate or substitute part, in all respects, must interface, and be compatible with, any and all parts, assemblies, sub- assemblies, etc., with which the specified part interfaces.

· ISO: International Standards Organization

· ITS: Information Technical Systems

· O-RCC: O-Ring Competitive Contract

· KO: Refers to Contracting Officer and may also be designated or used interchangeably with "CO" within this document.

· LTC: Long Term Contract

· Material Master (MM): A record that holds vital descriptive information about a particular item (good or service). The MM includes data across several groups within the supply chain, including basic data, technical and quality data, purchasing data, sales data, packaging data, supply management data and accounting data.

· Material Safety Data Sheet (MSDS): A document that contains information on the potential health effects of exposure to chemicals, or other potentially dangerous substances, and on safe working procedures users should adhere to when handling chemical products.

· National Stock Number (NSN): The 13-digit materiel identifier consisting of a four- digit Federal Supply Class (FSC) and a nine-digit National Item Identification Number (NHN).

· NIST: National Institute of Standards and Technology

· NOR: Notice of Revision

· Obsolete Part: A part that is no longer in current or continuous production, and for which necessary manufacturing tooling is not available for the resumption of manufacture of the part.

· OCONUS: Outside the contiguous United States

· PEL: Price Evaluation List

· PIEE: Procurement Integrated Enterprise Environment

· POC: Point of Contact

· Prime Awardee: Vendor which is awarded an O-RCC contract

· Product Item Description (PID): The AID identifies those firms that have received prior source approval from the cognizant Military Service's Engineering Support Activity (ESA). The requiring Military Service defines or specifies the technical requirements of the item being procured and maintains the accuracy of the PID. Please refer to attachment 3.

· QAR: Quality Assurance Representative

· Qualified Manufactures List (QML): A list of manufacturers of products that have successfully completed the formal qualification process (including all specified periodic tests) that examines, tests, and verifies that a specific manufacturer meets all the applicable specification requirements.

· Qualified Products List (QPL): A list of products or families of products that have successfully completed the formal qualification process (including all specified periodic tests) that examines, tests, and verifies that a specific product design meets all the applicable specification requirements.

· Qualified Suppliers List for Distributors (QSLD): A list of suppliers' qualified processes and materials at each facility that have been successfully subjected to a defined set of qualification and periodic tests using processes, worst case designs or materials, to verify the end product's design, performance, quality, and reliability meet all the applicable specification requirements.

· Qualified Suppliers List for Manufacturers (QSLM): A list of suppliers' qualified processes and materials at each facility that have been successfully subjected to a defined set of qualification and periodic tests using processes, worst-case designs or materials, to verify the end product's design, performance, quality, and reliability meet all the applicable specification requirements.

· RFQ: Request for Quote

· RFP: Request for Proposal

· SAT: Simplified Acquisition Threshold

· Special Procedures Coding (SPC): The SPC code permits the identification of critical items that require special processing, e.g., Aircraft Launch & Recovery Equipment (ALRE), Individual Repair Parts Ordering Data (IRPOD), Critical Safety Item (CSI), Intercontinental Ballistic Missile (ICBM).

· SPRS: Supplier Performance Risk System

· Technical Data Package (TDP): A technical description of an item adequate for supporting an acquisition strategy, production, engineering, and logistics support. The description defines the required design configuration and procedures required to ensure adequacy of item performance. It consists of all applicable technical data such as drawings and associated list, specifications, standards, quality assurance requirements, software and package details.

· WSDC: Weapon System Designator Code

2.0- Program Requirements

2.1 Items of Supply

Requirements will be reviewed to ensure compliance with the scope of the contract(s) by the Contracting Officer. All items must be determined to be within scope of the contract prior to requesting a contractor’s pricing and delivery terms for an order.

Items covered by this PWS are generally cataloged under, but are not limited to, the following Federal Supply Classes (FSCs): 1005, 1025, 1055, 1240, 1720, 2540, 2590, 2805, 2815, 2940, 2990, 3040, 4310, 4320, 4730, 4820, 4921, 4940, 5330, 5331, 5340, 5365, and, 5999. FSC descriptions may be found at H2 FSC - Federal Supply Classification Search and Directory > Defense Logistics Agency > H2 Home.

The items of supply and requirements will be specified at the ordering level. Items throughout the life of the contract may change from DLA Stock support (Stock) to Customer Direct Vendor Delivery (DVD) support, or Customer DVD support to DLA Stock support. The prices offered at the time of proposal are applicable for both methods of support.

The items being procured will have a variety of specifications built using the Government’s Technical Data Package (TDP) and National Stock Number (NSN). Items that are commercial products or modified commercial products will be identified by a manufacturer’s part number or by commercial item descriptions. All sole-source items shall conform to the manufacturer’s specifications unless otherwise directed by the Contracting Officer. A Price Evaluation List (PEL) has been identified. The PEL is considered a representative sample of items that may be required throughout the duration of the contract. The list illustrates the types of supplies that will be required under this contract(s), and which the contractor may be required to furnish under the resultant contract(s).

Acceptable alternate items will be permitted under the resultant contract(s) when an item is identified by a manufacturer’s brand name or part number unless the Government expressly states that an alternate is not permitted.

Conformance: A product that is delivered to the warfighter in conformance to the Government’s requirements.

Non-Conformance: A product that is delivered to the warfighter and not in conformance to the Government’s requirements is defined as a Non-Conforming Product.

Request for Variance and Change Proposals: The Government owns the configuration baseline of assets, and the Government must review and approve engineering changes and variations that are needed as part of future contract work requirements.

2.2 Additions, Deletions, or Changes or Substitution

Items within the scope of this initiative, which is defined in section 1.0, can be added, deleted or changed on this project. From time to time, items may be added to or deleted from this contract(s), as determined by DLA Land and Maritime. Changes in, or substitution for, any item(s) specified to support the weapon system may be made only in accordance with the provisions and limitations set forth in this contract. The Contractor shall furnish items added to this contract in strict accordance with the technical requirements specified in the PIDs designated by the National Stock Numbers (NSNs) for the added items. The Contractor shall not make any changes to, or substitutions for, any added item, except as may be authorized or approved by the Military Service having configuration management and/or technical responsibility for the added item, (collectively referred to as the "Engineering Support Activity" or "ESA"). (However, should a replacement NSN be issued by Defense Logistics Information Service (DLIS) for an item on the contract schedule, the Contractor is authorized to obtain the replacement NSN prior to the update of the contract schedule, if the item is needed.) The ESA will review proposed changes or substitutions to determine whether the proposed alternate or substitute part complies with material and design requirements of the specified item, as well as the item's requirements for form, fit, function, interchangeability and interface. The Contractor shall, upon request, provide a complete Source Approval Request (SAR) in accordance with the DLA Land and Maritime Alternate Offer and Source Approval Request guidance (available upon request to the Contracting Officer).

When NSNs are removed, the Contractor is relieved of all responsibilities listed in this Performance Work Statement until such time as the contracting officer determines the part is needed again to support the weapon system as it relates to the subject NSN(s).

2.3 Technical Data Package (TDP) Receipt Instructions

Available TDPs will be accessible through cFolders. A company wishing to receive the TDPs must have an active status in the DLA Joint Certification Program (JCP). SAFE TDPs access: Email the completed and signed NDA, along with a copy of your company's CAGE verification in the System for Award Management (SAM) to DLA.Land.and.Maritime.Non-Disclosures@dla.mil cFolders: Companies must have access to cFolders to obtain the TDPs. Companies may have to submit an additional NDA within cFolders in order to access all files.

cFolders POC: Mailbox: DSCC ProdDataCustSvc (DSCC) (dscc.proddatacustsvc@dla.mil)

Safeguarding Government Owned Technical Data Packages - The contractor shall have a plan within sixty (60) days after award of the base O-RCC contract for monitoring supplier/subcontractor’s compliance with safeguarding the Government Owned Technical Data Packages (TDPs). This plan shall be in place for the entire duration of the contract. The Government may, at any time during the ordering period and performance of any orders, request the Contractor to submit its plan and provide evidence that it is following the procedures outlined in its plan. The contractor’s plan, at a minimum, must meet the requirements of DFARS 252.204-7012.

2.4 Contract Implementation

The contractor may be given up to 30 days from the date of award, if needed, to ensure it is positioned to be able to perform on this contract. Implementation of the contract include the following:

· Ensuring delivery of any requirement can be accomplished within the time frames cited in the delivery order (required).

· Supply Chain Management – Includes implementing the Surge and Sustainment Plan (as needed), Counterfeit Electronics Part Detection and Avoidance policies and procedures, purchasing system, and processes for safeguarding the Government owned TDPs (required).

· Enacting the Quality Assurance Surveillance Plan (as needed).

The contractor will communicate with the Contracting Officer and Basic Contract Administrator as necessary. Throughout the term of the contract, the Contractor shall maintain regular communication with the Contracting Officer and Basic Contract Administrator. The Contractor shall directly notify the Contracting Officer and Basic Contract Administrator of any significant issues and meet with them if requested.

2.5 Information Technology

2.5.1 Electronic Data Interchange (EDI)

The Government may select to use email or another system, such as Electronic Data Order placement will be by Electronic Data Interchange (EDI) transmissions in accordance with ANSI X12 Standards through a registered Value-Added Network (VAN). Issuance of an EDI transmission or email notification from the Contracting Officer constitutes a binding order.

Manual Delivery Orders will be issued for items requiring first article testing, Government-furnished tooling, or for other special or unique requirements. The Contractor is required to commence performance upon receipt of a binding order.

In general, the process will work as follows:

The Government customer will submit requisitions, requisition follow-ups and requisition cancellations to DLA Land and Maritime. The customer requirements will then be forwarded to the Contractor via a Delivery Order issued from the Enterprise Business System (EBS) that will be formatting (translating) the Government requisitions into the appropriate EDI transaction set. The Contractor shall provide real time shipping status corresponding to the customer's requisition using an appropriate transaction set.

The following EDI transactions sets will be used:

• EDI 850 (Purchase/delivery order)

• EDI 856 (Shipment notice manifest)

• EDI 997 (Functional acknowledgement)

• EDI 810 (Invoicing)

The priority code and Required Delivery Date (RDD) will be identified on each individual delivery order. The Contractor has successfully filled a customer direct delivery of a CONUS demand when, after receipt of a delivery order, the Contractor has delivered the items to the designated customer location within the Government requirement delivery set forth at the order level. The Contractor has successfully filled a customer direct delivery of an OCONUS/FMS demand when, after receipt of a delivery order, the Contractor has delivered the items to the designated Containerization Consolidation Point (CCP), for those items not part of the FDT program.

Delivery locations will be included on each delivery or purchase order. All shipments by contractors will be to CONUS, Hawaii, Alaska, or Canada. Partial deliveries shall not constitute compliance with the delivery requirement.

2.5.2 National Institute of Standards and Technology (NIST)

Upon request, the contractor shall provide to the Contracting Officer a copy of the contractor's most current plan of action to meet the security requirements defined in National Institute of Standards and Technology (NIST) SP 800-171. DFARS provision 252.204-7019, Notice of NIST SP 800-171 DoD Assessment Requirements: This new provision requires offerors who are subject to implementation of DFARS 252.204-7012 and the NIST SP 800-171 standards to have a current (not older than three years) NIST SP 800-171 DoD Assessment on record in order to be considered for awards. The assessment will either be basic (self), medium or high and will be entered into SPRS by the contractor. DFARS clause 252.204-7020, NIST SP 800- 171 DoD Assessment Requirements: The new DFARS clause 252.204-7020 requires a contractor to provide the government with access to its facilities, systems, and personnel when it is necessary for DoD to conduct or renew a higher-level (medium or high) assessment.

DFARS clause 252.204-7021, Cybersecurity Maturity Model Certification (CMMC) Requirements: This DFARS clause requires a contractor to maintain the requisite CMMC level for the duration of the contract; ensure that its subcontractors also have the appropriate CMMC level prior to awarding a subcontract or other contractual instruments; and include the requirements of the clause in all subcontracts or other contractual instruments.

The cybersecurity requirements identified in this solicitation do not abrogate or otherwise modify the contractor's responsibility for compliance with any other safeguards or cybersecurity-related requirements contained in this contract or required by other applicable U.S. Government statutes or regulations.

2.6 Order Receipt Processing and Overview

If the Government issues multiple awards/contracts, all O-RCC prime Contractors will be provided a fair opportunity to be considered for each order exceeding the micro-purchase threshold, unless an exception applies as outlined in Federal Acquisition Regulation (FAR) 16.505(b)(2). The process for fair opportunity will depend on the complexity and dollar threshold of the requirement. In most cases, the fair opportunity will be provided via an order RFQ/RFP that will be sent electronically to the contractor requesting a quote/offer/proposal, thereby contacting each O-RCC prime Contractor. For requirements under the Simplified Acquisition Threshold (SAT), the Contracting Officer may elect to not contact each O-RCC prime Contractor and may utilize the information provided in the Rapid Ordering Catalog or Rapid Ordering Catalog Supplement to provide a fair opportunity as permitted by FAR 16.505(b)(1)(ii). Orders under the simplified acquisition threshold may be auto awarded based on pricing provided in advance, historical pricing obtained from previously competed orders or based on the pricing submitted on the Rapid Ordering Catalog.

The chart below outlines the four methods of procurement the Government will be utilizing as part of any resulting contract. These methods will be outlined in the subsections below.

2.6.1 Competing Future Purchase Orders

A competed purchase order is a purchase request for a fixed quantity of an item requiring delivery within the time specified on the purchase order. All future purchase orders will be competed between the prime awardees during the period of performance. Awarded purchase orders may be split between two competing prime awardees. To be eligible to compete on these future purchase orders, the prime awardee must quote on 75% of the items. An RFQ/RFP issuance process will be initiated for the competition and determining the awardee on future requirements. The O-RCC will have multiple vendors competing on price and/or delivery to fulfill each order. The evaluation criteria and the weight of each criterion will be stated on each RFQ. Future orders will include the Government’s order requirements up to two (2) years for multiple orders and may coincide with the quarterly forecast provided to all prime awardees. A Purchase Request will be used to provide DLA Land & Maritime with a requirement for execution. The Purchase Request will be loaded into the E-Procurement system for processing by the DLA Land & Maritime O-RCC contracting team. The Material Planner, CAS or WSSM will receive e-mail confirmation of their order or a request for additional information to initiate the process. Additionally, e-mail notification will be made to the Material Planner, CAS or WSSM for purchase requests falling outside of the scope of the O-RCC. The DLA Land and Maritime contracting team will review the requirement and prepare the fair opportunity notice/ Request for Proposal. The E-Procurement system will be used to solicit the prime awardees for a firm-fixed price purchase order.

Once the Government determines that there is a requirement, the following information may be included in the RFQ/RFP:

a. A notice of the intent to make a purchase.

b. A clear description of the supplies/item to be delivered including quantity, or services to be performed per order. The quantity for items purchased per order may be increased by a percentage (%) to allow for quantity downward adjustments. Any adjustments will be explained in the future RFQ/RFP.

c. An explanation of the evaluation system that will be used for the RFQ/RFP will be determined at issuance, including but not limited to price only, full trade-off, or Lowest Price Technically Acceptable (LPTA) procedures.

d. The anticipated order window.

Once a purchase order awardee is selected, the Government may not issue orders immediately and may delay the order until accounting information is received. The prime awardee(s) will be notified soon after the selection if it will receive a future order. Once the prime awardee(s) is selected for a future order, it may not be notified again before the order is placed. If an order is cancelled, the selected prime awardee(s) will be immediately notified.

For urgent orders of current and future items within the scope of the O-RCC, the Contracting Officer may issue RFQs/RFPs with a less than twenty-four (24) hour response period for quotes. The prime awardee is required to provide a response by the end of the response period to be considered for award.

2.6.2 Rapid Ordering Catalog

At the contracting officer’s discretion, a Rapid Ordering Catalog of high demand, and/or high priority items that require a rapid response may be created. The Government may add, delete or update items on the Rapid Ordering Catalog during the period of performance. The Rapid Ordering Catalog will include prices and delivery information from competing prime awardees. To be added, the Contracting Officer will conduct the following steps:

a. DLA L&M will conduct a review of all customer requests to identify new/replacement items to be added to the O-RCC and the Contracting Officer will make a scope determination for each item requested.

b. Once an item is determined within scope, a request for information (RFI) and/or RFP will be sent to all O-RCC prime awardees. The Contractor will provide the information requested in the RFI/RFP (as applicable), which can include, but not limited to, price (including range prices), availability, technical data completeness, and delivery information.

c. DLA L&M will review the information submitted by each prime awardee, and either evaluate in accordance with Paragraph 2.3.2.1, or discuss with the prime awardees the results (if RFI/market research) to develop an RFP. At this point, the RFI process will cease, and the Government may elect to develop and issue an RFP, which will be released to all prime awardees as indicated in paragraph two under Rapid Ordering Catalog. The RFP evaluation will consist of determining if the offered prices are fair and reasonable. If price(s) offered by the O-RCC prime contractor is fair and reasonable, then the items will be added to its Rapid Ordering Catalog and will serve as the ceiling price for the applicable period (base period and/or each respective option year period). Prices within the Rapid Ordering Catalog may be utilized for expedited ordering by DLA Land and Maritime or any other delegated ordering office.

d. The prime awardee will be notified once an item has been added to its contract’s rapid ordering catalog. The prime awardees will also be notified if an item is selected for automated ordering (see below).

e. The prime awardee’s pricing added to the Rapid Ordering Catalog will serve as the ceiling price and cannot be exceeded on future requirements during the applicable period (base period and/or each respective option year period).

Once items are on the Rapid Ordering Catalog, the Contracting Officer may issue RFQs/RFPs with a twenty-four (24) hour response period. The prime awardee is required to provide a response by the end of the response period to be considered for award. However, at the Contracting Officer’s discretion, the prime awardee may be required to provide quotes within 24 hours for urgent or high priority requirements that are not identified on the Rapid Ordering Catalog.

For requirements under the simplified acquisition threshold, the Contracting Officer may elect to not contact each prime awardee and may utilize the information provided in the Rapid Ordering Catalog or Rapid Ordering Catalog Supplement to provide a fair opportunity as permitted by FAR 16.505(b)(1)(ii). Orders under the simplified acquisition threshold may be auto-awarded based on pricing provided in advance, historical pricing obtained from previously competed orders, or based on the pricing submitted on the Rapid Ordering Catalog.

2.6.3 Rapid Ordering Catalog Supplement - Automated Ordering

For select items that are high demand, and/or high priority, the Contracting Officer may issue a RFP to add item(s) to the Rapid Ordering Catalog Supplement, which establishes catalog prices and order details so that the Contracting Officer can easily compare the prices and order details to make Best Value decision. The Rapid Ordering Catalog Supplement will be for a shorter period and up to two (2) years. The prime awardee will be notified when submitting pricing for the Rapid Ordering Catalog, if items in that submission will be added to the Rapid Ordering Catalog Supplement. The Contracting Officer will follow the same process as above but may request and include additional information to make a Best Value decision. Examples of information that may be requested in the RFP for items on the Rapid Ordering Catalog Supplement include range prices for economic quantity breaks, standard and expedited delivery information, and any other information deemed important by the Contracting Officer to determine the Best Value. The prime awardees will be notified of the decision criteria before placing an order for that item.

The Rapid Ordering Catalog Supplement is intended to be used to automatically award orders that are under the simplified acquisition threshold. As allowed by FAR 16.505(b)(1)(ii), the Contracting Officer will use information in the Rapid Ordering Catalog Supplement and provide a fair opportunity to each prime awardee’s Rapid Ordering Catalog Supplement offer per item/order before placing in the system to be automatically ordered. The Government does not intend to issue additional RFP(s) for items on the Rapid Ordering Catalog Supplement during the validity period, prior to issuing an order, unless the order exceeds the simplified acquisition threshold.

2.6.4 Competed LTCs (mini-LTCs) within O-RCC

Within the O-RCC, at the contracting officer’s discretion, LTC pricing may be competed for a fixed-time period for a minimum of two years or the remainder of the O-RCC basic contract, whichever is longer for any NSN. The mini-LTC firm-fixed pricing may be requested for any NSN within the scope of the O-RCC for current and future items. Procedures will follow Paragraph 2.3.2.1.

2.7 Quality Requirements

The Contractor shall institute a program that ensures the spare parts received from its vendors, subcontractors and suppliers are in strict accordance with the technical and quality requirements specified by the Government for the item.

Under all circumstances, regardless of the source of supply, all products shall conform to the most recent technical requirements as defined by the Government. In order for the Contractor to determine the technical requirements, required sources of supply, recorded design revisions, and applicable quality standard for a given part, the Contractor shall access the Government/DLA cFolders. Further, unless otherwise provided by the contract by the Contracting Officer, the Contractor shall:

a. Ensure that its vendors, suppliers and subcontractors comply with all applicable QPL and QML requirements, as specified by government technical requirements, as listed in the Procurement Item Description (PID).

b. Ensure that its parts vendors, suppliers and subcontractors incorporate a system for obtaining, handling and supplying Original Equipment Manufacturer (OEM) certified parts, and that such system is included in contractual instruments with vendors, subcontractors and suppliers throughout the entire supply chain.

c. Ensure that its parts vendors, subcontractors and suppliers establish and maintain a system or processes that will provide clear traceability to the actual manufacturer of the parts.

d. The Contractor shall establish and maintain a process for inspection of incoming supplies for compliance with contract requirements. In addition to any physical inspections, the Contractor shall ensure that all certifications and traceability documents will be available to DLA for review, as needed. The Contractor shall conduct periodic audits or reviews of the quality assurance processes and procedures of its vendors, subcontractors and suppliers, and shall monitor its vendor qualification process on a continuous basis. Additionally, the Government reserves the right to review the Contractor's quality processes. The Contractor shall require subcontractors to adhere to the ISO 9004:2000 Quality Management Principles.

The Government has the right to audit and/or examine the contractor’s quality management system, inspection system and quality management system documentation including documented statements of a quality policy, documented quality objectives, quality manual, documented procedures/work instructions and records required by the quality management system standard, and documents including records determined by the contractor to be necessary to ensure the effective planning, operation and control of its processes. The documentation can be in any form or type of medium and software. The Government has the right to audit, examine and test hardware used for quality management, test or inspection. The Government's audit and/or examination shall be on the premises of the contractor or supplier, to the extent practicable, at all places and times. The Government’s audits and/or examination of the contractor’s quality management system, inspection system, and quality management system documentation will be conducted in a manner that will not unduly delay the contract work. The Government's audit and/or examination, whether exercised or not, does not relieve the contractor of the obligations under the contract.

If the Government performs audits and/or examinations of the contractor’s quality management system, inspection system, quality management system documentation, and test hardware used for quality management, test or inspection on the premises of the contractor or a subcontractor, the contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance of these duties.

The Government’s right to audit and/or examine the contractor’s quality management system, inspection system and quality management system documentation including documented statements of a quality policy, documented quality objectives, quality manual, documented procedures and records required by the quality management system standard, documents including records determined by the contractor to be necessary to ensure the effective planning, operation and control of its processes will be limited to the contractor’s facility and suppliers’ facilities that provide products and/or services valued over twenty (20%) of the delivery order total cost.

2.7.1 First Article Testing (FAT)- Contractor or Government

For NSNs that require FAT, it is expected the offeror will supply a waived source with their initial pricing proposal. A contractor, electing to supply the product of a non-waived source for an NSN that requires FAT, will assume the responsibility of ensuring the item of the non-waived source becomes approved in accordance with the terms of the contract while the contractor continues to meet the required delivery schedule. If there is a FAT charge applicable at time of initial offer, the costs must be provided on the PEL tab titled “FAT”. If waived sources are lost or FAT requirements are added to an NSN, the Government will negotiate, in good faith, the cost of testing or the NSN may be removed from the contract at the discretion of the Government, at no cost to either the Government or the contractor. Note: Lost sources do not include situations where the awardee chooses not to use the waived source because of a price increase. If an awardee attempts to add a new waived source after award and previously waived sources were not lost, the awardee assumes all costs involved with approving source. As applicable, specific FAT requirements will be detailed in the order, or in the drawing contained in cfolders.

2.7.2 Critical Safety Items

The Contractor shall obtain pre-award approval from the Contracting Officer for each CSI acquisition, which shall include the exact item cited in the PID, exclusively from a source cited in the PID. Only sources listed as approved sources in the PID, or dealer/distributors (non-manufacturer) offering the product of an approved source, shall be considered (unless the item is a 1G). Traceability documentation shall be submitted for review and approval to the Contracting Officer PRIOR to any award.

2.7.3 Hazardous Materials

Hazardous Materials include any material defined as such under Federal Standard No. 313. The Standard is available from the Specification Unit of the General Services Administration (GSA), (Unit 3FBP-W), 7th & D Streets, N.W., Washington D.C. 20407. Notwithstanding the above, Hazardous Materials procured on this contract shall also meet the definition of Replenishment Parts and Industrial Hardware.

The Contractor shall segregate HAZMAT by Hazard Characteristics Code (HCC) and handle HAZMAT to prevent risks to personnel or to the facility in which it is processed. The Contractor shall record the applicable Materiel Safety Data Sheet (MSDS) number and HCC in DSS for each HAZMAT item processed. HAZMAT is generally classified by the primary hazard characteristic since it is not practical to provide a completely detailed, item-by-item listing of this material and their storage requirements.

The ten broad categories of HAZMAT storage are:

A -Radioactive C – Corrosive D- Oxidizer E - Explosive F - Flammable G - Gas, Compressed L - Low Hazard (General Purpose) P - Peroxide, Organic R-Reactive T-Poison

The Contractor shall obtain Safety Data Sheets (SDS) and Hazard Warning Labels for use when necessary or appropriate. The Contractor shall maintain records with respect to the use of such sheets or labels. The Contractor shall ensure that under circumstances where it becomes necessary for the Contractor and/or its vendors, subcontractors or suppliers to handle, transfer, ship, store or distribute hazardous materials, in order to meet the provisions of this contract, that the Contractor, vendor, subcontractor or supplier shall have been thoroughly trained in the treatment to be accorded hazardous materials and operate in strict accordance with local operating instructions regarding the handling of hazardous materials.

2.7.4 Production Acceptance Testing

When required by the order, the contractor shall perform production acceptance testing according to the applicable technical documents and the test requirements specified in the delivery order SOW, PWS, or Technical Requirements to ensure all of the production units are in compliance with the technical requirements set forth in the applicable technical documents. Requirements for the production acceptance test may include requirements beyond those stated in this SOW and may include additional testing as necessary for the Government to ensure production units are in compliance with the technical requirements. The Government has the right to conduct an inspection at any time during normal business hours with a contractor quality representative present. Equipment and facilities required for inspection and testing shall be the contractor’s responsibility. The contractor shall obtain written approval from the Government for utilization of testing facilities other than the primary production testing facility prior to the commencement of any acceptance tests, and shall notify the Government, in writing, of the scheduled test(s) in accordance with FAR 52.246-2 to allow Government representatives to witness and verify inspection and test. Production Acceptance Test Plan and CDRL may be required.

2.8 Alternate Products for Specific Part Numbered Items

The Contractor shall provide material from sources of supply in accordance with the Government technical requirements for the respective National Stock Number (NSN) or as prescribed in the Source Data Tab of the PEL (attachment 2) or PID, packaging, and markings (Attachment 3).

Except as provided herein, the Contractor shall provide the exact product when the item or product is identified in the PID by the Commercial and Government Entity (CAGE) Code, Name, and Part Number of a Specified Manufacturer or other entity, or by the CAGE Code, Name, and Part Number of Specified Manufacturer or other entity, as modified by additional requirements in the PID. Within seven (7) days of the Contracting Officer's written request, the Contractor shall provide evidence that items furnished under the contract are Exact Products. Such evidence must be sufficient to provide traceability of the product delivered/or to be delivered under the contract to the exact product source.

2.8.1 The Contractor may make recommendations for Alternate Products for a specific NSN; in accordance with the following provisions however the alternate product will not be considered for evaluation for the basic award or the immediate requirement. However, the alternate offers will be evaluated following the Alternate Offer process located in Attachment 4 to the solicitation. If the alternate is approved, at that time it will be determined if a re-solicitation of that NSN needs to take place amongst the pool of awardees. The Contractor shall submit a complete Source Approval Request (SAR) to the Contracting Officer. Hard copy/printed Alternate Offer technical data packages or Unsolicited Offer (SAR) packages will not be considered. Request electronic packages by a) email attachment up to 10 megabytes single unzipped attachment (.pdf format), b) compact disk unencrypted, or c) in cases of extremely large packages arrangements may be requested by contacting the Alternate Offer Monitor at DSCCAO- SAR@DLA.MIL mailbox. A complete SAR consists of eligible copies of all drawings, specifications, standards, or other data necessary to describe clearly the characteristics and features of the Alternate Product proposed or recommended. The SARs submitted shall be in accordance with the requirements of the Source Approval Handbook(s) published by the applicable Military Service's ESA. Contact the Alternate Offer Monitor at DSCCAO- SAR@DLA.MIL for a copy of the handbook.

2.8.2 If the Alternate Product proposed or recommended by the Contractor was previously furnished to the Government or was otherwise previously evaluated and approved but has not been entered into the PID, the Contractor shall provide the contract and/or solicitation number under which the product was furnished or approved. If the product was furnished or was evaluated and approved by an Activity other than DLA Land and Maritime, the Contractor shall furnish the name of the Activity and shall provide all pertinent documentation relating to the submission and approval.

2.8.3 Any proposed Alternate Product which represents a "reverse engineered" Exact Product may be considered for evaluation, provided the Contractor furnishes a complete TDP related to both the Exact Product and the Alternate Product resulting from the reverse engineering effort. The Contractor shall provide documentation reflecting samples which manifest the markings of the manufacturer or other entity whose Exact Product is identified in the PID, as well as documentation as to the number of samples that were examined, the process/logic used in the reverse engineering process, and all raw data, including, but not limited to, measurements, lab reports, and test results, used in the preparation of the TDP for the reverse engineered item. The Contractor shall also provide evidence that there shall be no degradation of fit, form, function, and/or interchangeability/interface, and that life cycle and reliability analyses have been performed with positive results.

2.8.4 Regardless of…