Attachment 5 CONOPS.pdf

INSTRUMENTATION RANGE SUPPORT PROGRAM

STOCK REPLENISHMENT

CONCEPT OF OPERATIONS

FA2521-19-R-A007

(REF FA2521-18-R-0024)

RFP Attachment 5

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Table of Contents

1.0 INTRODUCTION

2.0 OVERVIEW

2.1 Scope:

2.2 Background:

2.3 IRSP Stock Replenishment Overview

3.0 Operational Support Concept

3.1 Description:

3.2 Operational Scenarios

3.2.1 Material Acquisition Scenario:

3.2.2 Component Remanufacture/Fabrication Scenario

3.2.3 Overhaul Material Requirements Scenario:

3.2.4 Overhaul Remanufacture/Fabrication Requirements Scenario:

3.2.5 System Modification Material Requirements Scenario

Concept of Operations (CONOPS) for the Instrumentation Range Support Program’s (IRSP) Stock Replenishment

1.0 INTRODUCTION

This Concept of Operations (CONOPS) establishes and describes the functional architecture for the IRSP’s stock replenishment business model. This concept for replenishing Government Owned Stock (GOS) will describe, at a high level, how the IRSP intends to charge participating ranges and replenish GOS. The purpose is to ensure that critical levels of IRSP stock remain available while also meeting the intent of the Financial Improvement Audit Readiness requirement.

2.0 OVERVIEW

2.1 Scope: This CONOPS is stand-alone and is considered a living document. It will provide details of the concepts by which the IRSP’s GOS, referred to herein as IRSP stock, is charged for and replenished. It is recognized that there are a number of factors that will drive the need to re-balance and adjust stock levels. Examples of driving factors include: fluctuations in the number of participating ranges; continually changing mission requirements requiring changes to system architecture;

obsolescence issues due to diminishing sources of supply, and system life expectancies. All of these will drive the need to stock different items or change stock levels.

2.2 Background: The IRSP stock currently residing at the contractor’s depot facility is

GOS. IRSP stock has been procured and paid for by the program’s participating ranges over the life of the program. IRSP stock is furnished to the contractor to support the day-to-day depot operations of the IRSP, as an additional source of supply, and is used to meet ranges’ requirements within the scope of the statement of work. The IRSP has been historically operated as an additional source of supply to augment the sustainment of instrumentation tracking systems for ranges supporting DoD, DoE, NASA, and foreign countries. Any remaining IRSP stock at the close of a contract is transferred to the next contract.

2.3 IRSP Stock Replenishment Overview: The intent of this document is to describe how the government plans to handle replenishment actions for the GOS that was transferred to the contractor at contract startup. The government’s intent is to issue, charge for, and replenish IRSP stock as a government owned store. Therefore, the following paragraphs will describe the intent of this business model. Replenishment of IRSP stock is required to carry out the additional source of supply mission of the program. It is recognized that IRSP stock will be used to fill various requisition requirements received from ranges under the material acquisition CLINs.

IRSP stock will also be required to fulfill material requirements under the component remanufacture & fabrication activities; to meet material requirements for overhauls, and material requirements for system modifications.

3.0 Operational Support Concept

3.1 Description: All IRSP stock transferred to the contractor at startup for the IDIQ contract will follow this business model. The government’s intent is to charge the range customer the actual cost of IRSP stock at the time the item was issued to fill a range’s requirement. (Actual cost in this case is the cost shown in the cost accounting system at the time the item(s) were issued.) The contractor will charge the appropriate range delivery order for the actual cost plus fee of the item. Once the contractor receives payment for an item issued from stock to a range, they will maintain the funds (minus fee) and submit a check quarterly to the government. The amount of the check should match the total cost of all stock items issued to range(s) during a given quarter. Once the government receives the check from the contractor, the government will make a determination either to replenish stock or utilize funds to meet other government requirements. The contractor will make stock level adjustment decisions, adds/deletes of existing levels, as well as adds/deletes to stock based on the availability of funds. To properly manage and ensure an auditable trail is maintained, the contractor will report quarterly via CDRL G001.

3.2 Operational scenarios: This section of the CONOPS contains five scenarios that will occur during the contract. These instances will require the contractor to use stock to meet range customer requirements under the following activities: Material Acquisition, Remanufacture/Fabrication, Overhauls, and System Modifications. In each of these instances, when stock is removed and used to fill range customer requirement, the actual cost plus fee (cost shown in the cost accounting system at the time the item(s) were issued) of the item will be invoiced to the customer.

3.2.1 Material Acquisition Scenario: A range customer will submit a requisition for a part/component for their covered instrumentation tracking system. If the requisitioned part is in stock the contractor will issue the item to the range customer and invoice those item(s) at the actual cost plus fee (cost shown in the cost accounting system at the time the item(s) were issued). When received, the invoice payment will be held by the contractor and issued back to the government (minus fee) by the 20th of the month following quarter closeout.

3.2.2 Component remanufacture/fabrication scenario: Although this scenario will discuss the process of remanufacturing/fabricating a part that is in IRSP Stock and sent to a range customer to fill their requirement, the primary purpose of this scenario is to describe the invoicing of IRSP stock used in the remanufacturing/fabrication of the item. A range customer submits a requisition for a part/component for their covered instrumentation tracking system. If the requisitioned part is a repairable and in IRSP stock, the contractor will issue the item to the range customer. The contractor will place a hold on the customer’s funding for associated CLIN; the hold will be for the total cost of the part/component at the time it was originally placed into IRSP stock plus fee. The range customer in turn, will send their broken repairable to the depot under the remanufacture/fabrication CLIN. Once the repairable is received, the contractor will evaluate and determine the cost to remanufacture or fabricate the item for return to IRSP stock. The hold that was placed on the range customer’s funding for the affected CLIN will be replaced with the estimated cost of the repair plus fee.

Once the remanufacture/fabrication has been accomplished and reentered into stock, the estimated amount placed on the range customer’s CLIN will be released.

The range customer will then be invoiced the cost plus fee as appropriate. The amount of the invoice that covers the actual cost (cost shown in the cost accounting system at the time the item(s) were issued) of the items used from IRSP stock will be held by the contractor and issued back to the government (minus fee) by the 20th of the month following quarter closeout to be used for future IRSP stock replenishment actions. This same process for material used from IRSP stock will hold true for those items returned from ranges for remanufacture/fabrication and the end-item is not issued from stock.

3.2.3 Overhaul Material Requirements Scenario: Based on the pre-overhaul report, and the final proposal, the contractor will place a hold on the range customer’s funding for the total amount of the estimated material and IRSP Stock needed to cover the overhaul action. The amount of hold placed against the range customer’s Material Acquisition CLINs (CLIN 5 or 6) will be the cost of all material items needed including those items issued from IRSP stock plus fee. The cost of those material items pulled from IRSP stock will be the cost of those items when they were placed into IRSP stock. The hold will be released upon overhaul completion and the range customer will be invoiced actual costs of all material used to accomplish the overhaul plus fee as appropriate. The amount of the invoice that covers the actual cost (cost shown in the cost accounting system at the time the item(s) were issued) of the items used from IRSP stock will be held by the contractor and issued back to the government (minus fee) by the 20th of the month following quarter closeout to be used for future IRSP stock replenishment actions.

3.2.4 Overhaul Remanufacture/Fabrication Requirements Scenario: The items identified in the pre-overhaul report that are estimated to be repairable will have the estimated cost of returning those items to a serviceable status placed as a hold amount against the range customers funding for the Remanufacture & Fabrication CLINs (CLIN 5 or 6). Once the contractor has completed Remanufacture & Fabrication of the items, the hold will be released and the range customer will be invoiced actual costs of all related material plus fee as appropriate. The amount of the invoice that covers the actual cost (cost shown in the cost accounting system at the time the item(s) were issued) of the items used from IRSP stock will be held by the contractor and issued back to the government (minus fee) by the 20th of the month following quarter closeout to be used for future IRSP stock replenishment actions.

3.2.5 System Modification Material Requirements Scenario: Performed under CLIN 9.

The contractor can use IRSP stock to support system modifications when it is more advantageous to the government to do so. The amount of the invoice that covers the actual cost (cost shown in the cost accounting system at the time the item(s) were issued) of the items used from IRSP Stock, will be held by the contractor and issued back to the government (minus fee) by the 20th of the month following quarter closeout to be used for future IRSP stock replenishment action.