Attch 1 Statement of Work.pdf

Attachment 1 FA302223Q0334

Statement of Work for Program Optimization and Operations + Governance

30 August 2023

1.0 General

1.1 Background

The Air & Space Forces Intellectual Property Management Office (ASFIPM) manages the trademark licensing/merchandise licensing activity for the Department of the Air Force (DAF). The licensing section (the “Client”) is responsible for vetting merchandise license applications from companies around the world interested in developing Air Force- or Space Force-branded merchandise for retail. The section manages the executed licenses to ensure compliance with provisions and deliverables. Additionally, the office manages the royalties generated from the sales of officially licensed merchandise.

1.2 Objective

The Client seeks to have an independent third party (the “Contractor”) with proven experience in trademark licensing/merchandise licensing programs evaluate the overall performance of the San Antonio, Texas-based trademark licensing/merchandise licensing program; provide best practices from industry to optimize operations; and develop a formal licensing strategy that will further enhance the brands’ overall equity. Contractor must be able to demonstrate professional involvement in the trademark licensing field, to include possessing specialized knowledge of the retail landscape and supply chain, the social compliance requirements for domestic and overseas factories, common attributes of an acceptable applicant, and the laws and regulations governing trademark licensing, as well as access to other licensing programs from which to benchmark. The specific objectives of the project are as follows:

a. Evaluate the existing program and its strategies, to include processes, policies, and manpower, benchmarking it against three competitive, like-minded licensing programs (non-military).

b. Conduct qualitative (number-based) market research of the retail landscape to identify potential licensing opportunities, target markets, and current market saturation of DAF’s Tier 1 logos. Tier 1 logos are the Air Force Symbol and the Space Force Delta.

c. Provide guidance on licensing agreement negotiations, including terms and royalty structures.

d. Develop customized documents (license application questions, checklists, scorecards) to aid in the identification and evaluation of potential licensees, as well as renewal of expiring licenses.

e. Develop a comprehensive 5-year licensing strategy tailored to the DAF’s brands and business goals.

1.3 Scope of Work

The contractor shall provide all resources and materials necessary to accomplish the following tasks, subtasks and deliverables outlined in this Statement of Work (SOW).

1.4 Period of Performance

The anticipated period of performance: Date of award plus 9 months. The task milestones and the timelines for specific deliverables will be agreed upon during the project kickoff meeting.

1.5 Place of Performance

The contractor will perform primarily remotely with 1-2 on-site visits in San Antonio, Texas (JBSA – Randolph), if needed, to observe the program and present deliverables.

Travel costs will be included in the total contract price.

2.0 Specific Tasks

2.1 Task 1: Program Review

Subtask 2.1.1 Review the DAF brand identity, licensee portfolio and assigned rights, and target markets.

Subtask 2.1.2 Review a minimum of 15 valid (not expired or cancelled) DAF standard licensees’ use of their granted contractual rights. Licensees will be selected during project kickoff.

Subtask 2.1.3 Review the Client’s program for compliance with relevant state, federal, or international policies and guidance that are applicable to the federal program, such as Proposition 65 and Extender Producer Liability laws.

Subtask 2.1.4 Review the Client’s current licensing process from application intake through license termination, to include renewal applications and early termination processes.

Subtask 2.1.5 Review the Client’s three primary license templates (crafter, small business, and standard), exhibits, and schedules, for clear legal terms and reflections of the most current trademark licensing standards and provisions.

Subtask 2.1.6 Review the Client’s current staffing and internal organizational structure relevant to existing workload.

2.2 Task 2: Program Analysis

Subtask 2.2.1 Benchmark Client’s program against three competitive, like-minded licensing programs (non-military) for operations, governance, and revenue generation.

Subtask 2.2.2 Identify potential new categories, consumers, and channels for the Tier 1 logos using the program’s existing analytics, as well as market analysis, field work, and trends. Recommendations should protect the brands, promote the brands, and generate profits.

Subtask 2.2.3 Researching at least five top U.S. retailers of the Client’s brands, to include brick-and-mortar and ecommerce, identify areas of market over-saturation and under-saturation for Tier 1 logos, focusing on distribution channels and product categories.

Retailers will be selected during project kickoff.

Subtask 2.2.4 Analyze the industry for emerging state, federal, and international policies, guidance, and practices that could have future impact the federal program, for example, lawsuits and updates to the United Nation’s Guiding Principles.

2.3 Task 3: Licensing Strategy Development

Subtask 2.3.1 Through a variety of datapoints, including initial findings, staff interviews, field work, market analysis, and trends, develop a customized 5-year licensing strategy aligned with the Client's brands and business objectives.

Subtask 2.3.2 Define the product categories and distribution channels for licensing within the United States.

Subtask 2.3.3 Recommend staffing and internal organizational structure relevant to the workload based on anticipated growth from implementing the licensing strategy.

2.4 Task 4: Licensee Identification and Evaluation

Subtask 2.4.1 Establish licensee acquisition processes, including but not limited to criteria for evaluation of potential partners, due diligence forms, and sample proposal forms.

Subtask 2.4.2 Develop a score card for screening potential applicants using a variety of datapoints, including initial findings, staff interviews, field work, market analysis, trends, and industry connections.

Subtask 2.4.3 Develop a score card for screening renewal applications using a variety of datapoints, including initial findings, staff interviews, field work, market analysis, trends, and industry connections.

3.0 Deliverables

The contractor will provide the following deliverables as part of the project:

a. Report on the findings and recommendations from the program review assessment, to include industry best practices.

b. Program analysis report which includes, but is not limited to:

1. analysis of potential licensing opportunities,

2. analysis of target markets,

3. analysis of market over/undersaturation for the Tier 1 logos in the retail space, to include big box, e-commerce, and brick-and-mortar stores,

4. licensing agreement templates and guidelines for negotiations,

5. score cards for new applications and renewal applications commiserate with the appropriate licensing tier, and

6. overall comparison to the three competitive, like-minded licensing programs (non-military).

c. Licensing strategy document outlining the recommended approach to protect the brand and grow its equity, including, but not limited to, product categories, territories, and distribution channels, for the next 5 years. Licensing strategy should identify organic and incremental new revenue opportunities to support the Client’s growth ambitions.

d. Final assessment report detailing recommendations to streamline operations while optimizing licensing standards and provisions, to include staffing and internal organizational structure of the program. Report should reflect projected revenue growth.

4.0 Performance Assessment

Three documents - a Gantt chart, AF Form 3064, Contract Progress Schedule, (or equivalent) and AF Form 3065, Contract Progress Report (or equivalent) - will serve as the primary tools for assessing overall performance quality. The forms will be used by the Government to assess the effectiveness of the Contractor’s management and deliverables.

a. Contractor will submit a Gantt chart, an AF Form 3064, and an AF Form 3065 to the Government for approval no later than ten (10) business days following the project kickoff meeting. The first business day following the kickoff meeting will be considered Day 1.

b. The Contractor shall submit project schedules and the progress report in a comprehensive, legible PDF format indicating all major milestones and the anticipated completion date for all activities and deliverables. “Project schedules” for this project are defined as the AF Form 3064 and Gantt chart.

c. The documents must be updated monthly, at a minimum, but may be updated with greater frequency as events require, or at the request of the Government.

d. The work elements and percentages of the total job identified on the AF Form 3065 shall be identical to the work elements and percentages on the AF Form 3064.

5.0 Meetings

The contractor will hold remote meetings. The contractor will have meetings with the primary POC or the deputy every two weeks to report on progress.

6.0 Required Travel

The contractor may travel on-site to San Antonio, Texas (JBSA-Randolph) throughout the contract period to observe processes and present deliverables.

7.0 Government Furnished Property/Equipment

Not applicable. There will be no Government Furnished Property or Equipment provided to the Contractor.