PMEL_Ind_Day_Brief.pptx

AF Enterprise Contracted (AFEC) Precision Measurement Equipment Laboratory (PMEL) II Industry Day 11 January 2017

This Briefing is:

UNCLASSIFIED

Headquarters Air Combat Command

Welcome Mr. Steve Lahr Mission Support & Readiness Division Chief Acquisition Management & Integration Center

Agenda Rules of Engagement Project Overview Ms. Shannon Satterfield Project Lead

ACC AMIC/DRXA

Agenda 0900 – 1015 Open Forum Briefing

1015 – 1030 Break

1030 – 1100 Q&A session

Open Forum Conclusion

One-on-Ones begin as scheduled through 12 Jan 2017

Topics of Discussion Rules of Engagement Project Information Program Overview Post Award Management Approach Acquisition Strategy / Solicitation Overview AFEC I versus AFEC II adjustments

Rules of Engagement

Questions Questions welcome during the briefing or… Write Open Forum questions on the blue paper found in your packet and turn into marked box at the break Write One-on-One questions on yellow paper and turn into marked box at the conclusion of the Open Forum briefing Proprietary Information Clearly identify any questions/information you consider proprietary

Q&A Session Non-proprietary, Open Forum questions will be answered during the Q&A session as time allows Verbal answers are “Unofficial”

Rules of Engagement, cont

The Government will consolidate all written questions received and post the “official” answers to FedBizOpps Proprietary questions must be marked as such and responses will be provided directly to the company

All items briefed today and discussed at the One-on-Ones are preliminary and are subject to final acquisition strategy and solicitation approval

All communications from potential offerors shall be sent

After the final solicitation is released / posted, communications are limited to the Contracting Officer

AMIC Integrated Culture SPO Type / Acquisition Center of Excellence organization Dedicated Program Managers and Contracting Officers Functional support within organization and matrixed to programs (i.e., Quality Assurance, Civil Engineering, Finance, etc.)

Report to single Director

Project Lead inserted in complex service acquisitions to facilitate the process and employ project management disciplines

Maintain philosophy of partnering with contractors to create business-like environment conducive to meeting the mission

AMIC Director

(SES)

AMIC Organizational Chart Deputy Director, Contracting Deputy Director, Program Management (O-6) Deputy Director

North Warning Sys Ottawa, Canada Mission Support & Readiness Division

CNGT

Division

Aircraft MX Division

Civil Engineer Division

AFCENT

Division

Logistics Division Quality Assurance Division Executive Support

Contracting Division C

Contract Division, JWAC

Contracting Division A

Contracting Division B

Contracting Division D Det 2, Contracting Division, JBSA

Resources Division

Legal Division

Plans & Programs Division

Project Environment Acquisition falls under the Air Force Program Executive Officer for Combat and Mission Support (AFPEO/CM) portfolio since contract value is greater than $100M; however, as the contract value is estimated to be below $500M, it falls within the authority that has been delegated to ACC/CV

AFPEO/CM: Ms. Nancy Andrews, SES

ACC/CV: Maj. Gen. John McMullen ACC/ CV has acquisition approval authority

Notional Project Milestones

Project Team

PMEL

Program Overview

Mr. Steve Lahr Mission Support & Readiness Division Chief

ACC AMIC/PMS

Program Overview Mission

Sites/Locations

Contract Scope of Work

Performance Work Statement (PWS) Overview

Risk

Mission Provide management, supervision, personnel, equipment, tools, materials and other items necessary to perform equipment calibrations by professional and technical metrologists to ensure traceability, accuracy, reliability and safety of systems, subsystems and equipment.

Fairchild Malmstrom Minot

Andrews Robins Moody Patrick/Cape Canaveral MacDill Tyndall Maxwell/ Gunter Columbus Barksdale Scott Whiteman Wright-Patterson Arnold Dyess Sheppard Cannon Vandenberg FE Warren Ellsworth Hill Offutt Peterson Tinker Vance McConnell CONUS AFEC PMELs

Elmendorf

Feltwell OCONUS AFEC PMELs Thule

Anderson

Contract Scope of Work Provide workload support for previously identified contracted locations Current projections are approximately 250,000 actions CONUS and another 27,000 OCONUS Responsible for work in the following technical areas: advanced electrical, electronics, electromechanical, mechanical, physics, optics and thermal principles Responsible for the operating principles of complex and intricate Test, Measurement, and Diagnostic Equipment (TMDE) and usage of laboratory standards

PWS Overview Performance-based requirements

Focuses on performance and results versus processes Empowers the Contractor to accomplish the assigned Air Force mission and provide management of assigned Government property

Contains elements of industry and Air Force requirements Demands a single comprehensive higher-level Quality Management System compliant with TO 00-20-14 as well as some additional requirements contained within the PWS

Program Management Contract Program Manager Interface between Government and Contractor personnel

Experience to successfully manage and administer the business and technical obligations of this contract.

Full authority to act for the Contractor on all matters relating to the program and contract execution

Program Management (continued) Integrate operations at all contractor-operated locations and provide a qualified individual to manage with full authority to act on technical issues relating to the daily execution and operation of the program

Single integrated Quality Management System

Includes meeting the requirements of TO 00-20-14 in addition to document control and company-wide preventive action plan

Management Information Data Storage (MIDS) system

Repository of all Quality Management System documents, metrics, CDRLs, etc.

Production Control Scheduling Central Base Collection Point/Pick up and Delivery function at some locations

Logistics Management Material Management Property Control Administration Transportation Support

Maintenance Management Maintenance Support Concept

(continued) Service Summary (SS) Identifies performance objectives the government considers critical to mission success

Quality Management System

TMDE Maintenance and Certification Process

Turn-around Time (TAT)

Certification / Accreditation

(continued) Transition ~ 30-60 Days for Task Orders Subsequent transitions will be identified in follow-on RFPs Inventory Requirements

Key Contractor Personnel Program Office (one office per company) Program Manager Quality Manager Site Level PMEL Manager Quality Assurance Technician

M L L M M L H M M L L L L L H M H M M L H H M H L

CONSEQUENCE

LIKELIHOOD

(continued)

Contract nonconformance does not necessitate a specific form of discrepancy notification Risk Matrix used Until Risk reaches Moderate or High we monitor your QMS actions

Risk Based Evaluation Answers the question, “How big is the risk?”

M L L M M L H M M L L L L L H M H M M L H H M H L

CONSEQUENCE

LIKELIHOOD

RISK LEVEL

HIGH – A failure or nonconformance is likely to result in a hazardous or unsafe condition for individuals using, maintaining, or depending on end item, subassembly, material, or process performance, and is not under control; likely to result in mission failure or prevent the proper performance of the tactical function of a major end item such as an aircraft, weapon or space system, or the process is out of control or performance data casts significant doubt on the capability of the system or key process to meet requirements, or a major disruption is highly probable and the likelihood is the contractor will not meet the performance, schedule, or cost objectives.

MODERATE-- Failures could result in a hazardous or unsafe condition, or adversely affect mission performance; proper performance of end items, subassemblies, or key processes is doubtful, or there is moderate process variance and the trend is adverse. Performance data casts doubt on the ability of the system or key process to consistently meet requirements, or not only is it probable the contractor will encounter delays in meeting the performance, schedule, or cost objectives, but if concerns are not addressed, the process may progress to high risk.

LOW - Failures are unlikely to present serious problems for users/customers, or performance data provides confidence in the capability of the system or key process to meet requirements, or minimal or no impact will occur in meeting performance, schedule, or cost objectives.

Level Process Variance/ Probability of Occurrence

Not Likely (1-10%) Low Likelihood (11-30%) Likely (31-50%) Highly Likely (51-70%) Near Certainty (71-100%)

<** (1% of Budget) 3 Moderate reduction in technical performance or supportability with limited impact on program objectives Minor schedule slip. Able to meet key milestones with no schedule float Slip <* month(s) Sub-system slip >* month(s) plus available float Budget increase or unit production cost increase <** (5%of Budget)

<** (10%of Budget)

>** (10% of Budget)

PMEL Program Risks Listed in priority order:

Maintaining Qualified Workforce Aging Workforce

Escalating Costs

Lack of an Effective, Risk-Based Quality System/Program

Incentive Fee Process Separate CLIN for each year Based on twelve month period, one per year Maximum incentive fee pool for each period will be established per delivery order Government will conduct Mid-Term Feedback for each period Feedback received by contract surveillance, customer feedback, and inputs from the contractor Performance evaluated against established objective criteria Amount of fee awarded each period is the unilateral decision of the Contracting Officer (CO) Incentive Fee Overview

Incentive Fee Criteria and Weighting Customer Satisfaction Go/No-Go >75% Eligible for Incentive fee Performance Index (PI) (2% of Task Order) SS 1 Quality Management System SS 2 Calibration and Maintenance Process SS 4 AFMETCAL Certification Schedule Index (SI) (1% of Task Order) SS 3 Turn Around Time Throughput Management Cost Index Total Incentive Earned based on REA cost growth <2% = 100%, >2<5% = 50%, >5% = 0% Incentive Fee Overview

DOLi Registered Apprenticeship Program Combines carefully defined and employer-specific training under the guidance of a highly skilled mentor at the work site On-the-job training is supplemented with related classroom instruction Delores Ferrell Apprenticeship Consultant Department of Labor and Industry

Advantages OJT training and classroom instruction provide a tested system to maximize skills OJT training under the guidance of experienced and qualified personnel Occupation-specific classroom instruction Ensures company maintains highly skilled workforce Enable new employees to quickly contribute to company productivity Acquire employees with safe and healthy work habits and practices Meet need for skilled craftsmen due to retiring skilled workers

How it works On-the-Job Training Minimum 2,000 OJT training hours are provided Apprentice works with journeyman/highly skilled mentor

Related Classroom Instruction Apprentice attends class at local community college, vocational technical center or sponsor run school Participants spend recommended minimum 144 hours in the classroom per year https://www.dol.gov/featured/apprenticeship

Contractual Aspects Rhonda Foster Contracting Officer

ACC AMIC/PKB

Contracting Overview Value Adjusted Total Evaluated Price Key Contractual Aspects

Period of Performance

Solicitation

Site Visit

One-On-One Information

Points of Contact

VATEP

Different than LPTA source selection Tradeoffs are improved by identifying in advance and stating in the solicitation the value placed on above-threshold performance/capabilities Monetizes different levels of performance Identifies in RFP % price increase Government is willing to pay for measureable levels of performance using objective criteria VATEP is a structured process for objectivizing how requirement will be treated in the tradeoff process

Which labs do you feel the apprenticeship programs would work best?

How would you recommend we structure the value of higher capability (i.e. established DoL Apprenticeship Program)?

Based on information provided today, do you see value in offering a DoL administered apprenticeship program?

If not, what do you recommend as a method to continue to grow the PMEL technician career field?

Questions for industry to address during 1 on 1 sessions

Key Contractual Aspects Solicitation Number: FA4890-17-R-0011

Anticipated Contract Type

Multiple Award Indefinite Delivery / Indefinite Quantity (ID/IQ) with Incentive Fee Task Orders, Fixed Price Incentive Fee with Cost Reimbursable Line Item Minimum Award guarantee – Management Information Data Storage Incentive Fee will be objective in nature

Government Furnished Property/Equipment

Need to be familiar with FAR Part 45

Small Business Set-Aside

Market Research Questionnaire and Sources Sought posted to FedBizOpps (FBO) Mid Dec 2016 Government is currently evaluating Industry’s responses NAICS: 811219, Other Electronic and Precision Equipment Repair and Maintenance (Small business size standard $20.5M) Commerciality Determination: FAR Part 15 vs. Part 12

Draft PWS, some Appendices, and Draft L&M posted to FBO Dec 16

PWS is written in performance-based terms Industry feedback encouraged in all areas

(continued) Notional Contract Line Item Number (CLIN) Structure:

0001 Transition

0002 MIDS 1 LOT

0003 Program Management 12 MONTH

0004 Cost 1 LOT

0005 Incentive Fee 1 LOT

Period of Performance

1-Year Option Periods

Solicitation [Request for Proposal (RFP)] Agency Source Selection – Lowest Price Technically Acceptable Award IAW AFFARS 5315.3

Evaluation Criteria Areas

Factor 1 - Technical Factor 2 - Past Performance Factor 3 - Price/Cost

Industry review and input/feedback is encouraged

AFEC I versus AFEC II Removal of handling rate on Cost CLIN Transfer from Cost to Fixed Price (i.e.. travel, supplies) All dollar values rounded to 2 digits Apprenticeship VATEP process Realignment of installations per task order IDIQ will have 10 year ordering period On and off ramp process Anticipate using FAR Part 16 for Task Orders Offerors will be required to certify SB status with each TO Certify understanding of TUPE TOEP will include all bases, all bandwidths

Site Visit Formal site visit Typically held in conjunction with Pre-proposal Conference after final RFP release – not planned at this time (seeking Industry Feedback) Information needed prior to site visit (if held) Name Company Name Job Title Photo Identification Additional information will be posted to FBO

One-on-One Information Location Hilton Garden Inn – Kiln Creek 180 Regal Way Newport News, VA

Questions/recommendations from Industry are highly encouraged Verbal dialog between Government and Industry, both during today’s open forum & one-on-one appointments, is unofficial Official responses to questions requires Industry submittal of questions to the Government on the blue/yellow question sheets The Government will post official responses to all Industry questions on FBO; however, the names of the Industry representatives and their companies will not be published Proprietary information will not be published if properly identified

Points of Contact

ACC AMIC/PKB

Rhonda Foster, Contracting Officer Michael Adams, Contract Manager

Internet Links:

www.FBO.gov or www.FedBizOpps.gov http://farsite.hill.af.mil (Federal Acquisition Regulation)

Break

TURN IN ALL WRITTEN QUESTIONS

Discussion Panel

PMEL Services Questions What are your thoughts about the span of Task Order coverage? Should each Task Order support a regional, MAJCOM, or PMEL type IIA, IIB, IIC construct? Is there any efficiency to be gained by how the Task Orders are issued?

What contractual and/or program risks do you feel exist with this acquisition?

Based on the explanation of the risk-based quality requirements during the open forum discussion, do you have a better understanding of the requirement? Are there any concerns with the requirement?

Do you feel that a risk based quality requirement allows or impedes your internal Quality Management System ability to control your quality while also providing quality assurance to the government?

PMEL Services Questions (continued) Is the web based, Management Information Data Storage (MIDS) system required by the PWS within your company’s capability? Any concerns with the requirement and can it be priced separately as a CLIN on the contract?

With a better understanding of the risk based quality requirement, does the incentive plan, tied to performance, schedule, and cost requirements, provide an incentive to meet and/or exceed the service summary requirements?

If we were to include VATEP for a DoL apprenticeship program, what level of adjustment would be appropriate? Are there any other areas where VATEP could be appropriate?

Beyond including cost growth in the incentive process, what other means could we use to control escalating costs?

On-ramps/Off-ramps…Do you feel that with a 10-year ordering period, that on-ramps/off-ramps are appropriate?

Closing Remarks

TURN IN ADDITIONAL QUESTIONS AND SURVEYS

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