PCI 2.0_OTA Solicitation.docx

Solicitation Propulsion Directorate Consortium Initiative PCI 2.0 Summary

The Air Force Life Cycle Management Center Propulsion Directorate (AFLCMC/LP), partnering with the United States Army and Navy, is exploring options for a competitive award of a decentralized Other Transaction Agreement (OTA) to an eligible new or existing consortium of large and small organizations representing traditional and non-traditional Defense contractors (defined at 10 USC 3014), as well as academic institutions. AFLCMC/LP aims to enable the Air Force, Army, and Navy to enlist a single Consortium Administration Organization (CAO), also known as a consortium manager, for the Propulsion Consortium Initiative 2.0 (PCI 2.0). The potential CAO shall be able to effectively establish and manage a consortium whose members will execute prototyping projects that address military propulsion needs. AFLCMC/LP is releasing this solicitation to solicit qualified offerors to submit proposals for this forthcoming umbrella OTA award for management of the consortium, as well as to describe the U.S. Government's (USG) interest in establishing future OTA orders for prototyping projects, per 10 USC 4022. The mission of the consortium shall include performing research, development, and test and evaluation within prototyping projects that address requirements presented by the Propulsion Directorate and DoD partners. The Government will perform an integrated assessment of each proposal to make a final determination of which consortium provides the best value to the Government in accordance with (IAW) the criteria identified herein. It is the Government's intention to enter into an agreement with only one consortium manager that can best meet the Government's defined scope provided herein.

This solicitation represents the requirements for an open and competitive process for the selection of the CAO. Proposals will be accepted until 5:00 PM Eastern Time (ET), 5 June 2023. Any proposals received after this date and time will be considered non-responsive and not evaluated. As a practical matter, bidding consortia shall be represented by CAOs with means and authority to speak for the members, organize their activities, and make legally binding agreements on their behalf.

This OTA is bound by the following requirements:

The resultant agreement is expected to be valued at a maximum funding ceiling of $95M that may be apportioned across a five (5) year period of performance (base 2-year period, option 3-year period). Note: this ceiling may be increased within the period of performance via a modification to the OTA to facilitate additional in-scope projects.

Limitations of Authority. No agency official can enter into a transaction for a prototype project under the authority of 10 U.S.C. 4022 unless one of the following applies:

There is at least one nontraditional defense contractor or nonprofit research institution participating to a significant extent in the prototype project.

All significant participants in the transaction other than the Federal Government are small businesses (including small businesses participating in a program described under section 9 of the Small Business Act (15 U.S.C. 638)) or nontraditional defense contractors.

At least one third of the total cost of each prototype project is to be paid out of funds provided by sources other than the USG.

The senior procurement executive for the agency determines in writing that exceptional circumstances justify the use of a transaction that provides for innovative business arrangements or structures that would not be feasible or appropriate under a contract or would provide an opportunity to expand the defense supply base in a manner that would not be practical or feasible under a contract. If an offeror believes it may meet exceptional case criteria then provide explicit documentation identifying the exceptional circumstances.

After establishing an "umbrella" OTA with a CAO, and as mission requirements dictate, the USG anticipates utilizing the consortium manager to issue solicitations, award project level agreements, and allot funds to consortium members via the CAO across an indefinite number of prototyping projects. The consortium should be open to new membership and display a broad array of expertise and experience connected to the domains identified herein. The CAO will serve as an independent agent of the Government and will not be eligible to compete for project awards. The CAO will serve as the broker for the individual prototype project agreements. It is likely that the CAO would receive a percentage of these award amounts as a service fee.

This solicitation can be found on the System for Award Management (SAM) website (https://www.sam.gov). It is the responsibility of the potential offerors to monitor this site for additional information pertaining to this requirement.

Requirements The United States Government has identified the need for a propulsion consortium to enhance the efficiency and effectiveness of the military aviation acquisition process. This consortium would perform critical research, development, test and evaluation within prototyping projects addressing propulsion needs and the future of the propulsion enterprise. The Consortium will continuously promote an appropriately open technical architecture that optimizes USG investment by both leveraging best available existing commercial technology and developing new technology in partnership with industry.

Scope The scope of propulsion prototyping projects within the consortium might include any topic generally consistent with the RDT&E of propulsion systems. Mission areas of PCI 2.0 include, but are not limited to: digital engineering, artificial intelligence (AI), engine health monitoring, manufacturing base, small engines, aircraft platforms, systems, components, or materials and any integration therein. Additionally, prototyping projects could include platform electrical power systems (EPS) and thermal management systems. The scope of this effort will include Model Based Systems Engineering (MBSE), platform specific and common architecture studies, along with component/systems qualification and integration efforts for smart power management, higher density/higher capacity common generators, common aircraft lithium-ion batteries, flightworthy auxiliary or supplement power units, and upgraded conversion electronics.

Objectives Key objectives for the CAO include:

Procurement Objectives:

1. Expose United States Air Force (USAF) requirements to, and lower barriers to entry for, the broad community of traditional and non-traditional technology providers. Perform targeted recruiting of new members.

2. Accelerate solicitation to award timeline. Upon notification of individual prototype requirements, agreement goal to be awarded within 45 calendar days.

3. Provide customer with prototyping proposal submission resources and important OT information.

Management Objectives:

Manage administrative and financial responsibilities of the consortium.

Facilitating contractor performance of tasks under assigned prototype projects.

Providing services associated with domain technological expertise such as the following:

Capturing and documenting standards and best practices Facilitating technical exchange Provide continuous feedback to the USG. This includes creating, supporting and managing a Consortium website to be utilized by the USG for tracking information (eg. project status, funding status, issues/risks).

Facilitating teaming among members.

Planned Production:

While not specified at this time, the USG may choose to award follow-on production contracts/transactions to competitively awarded prototype projects that are successfully completed under this consortium agreement, as permitted on a per-project basis by 10 USC 4022(f).

Period of Performance:

The ordering period of performance of this agreement includes one base period and one option period. The total ordering period of performance, if all options are exercised by the USG, is five years. The delivery period on prototype projects may extend beyond this ordering period to allow for project-level completion. The USG will provide the CAO with a notice of intent to exercise the option 30 days prior to the end of the base period of performance. The preliminary notice does not commit the USG to exercise the option.

Limitations:

The CAO shall not bid on prototyping projects issued under the umbrella OTA.

Agreement Types:

The agreement types under the umbrella OTA will be identified on a per project basis and may be fixed-price, cost type, or cost share projects.

Security Requirements:

Some projects will be restricted to US sources only. The facility security clearance requirement, to include capability to handle classified material, is up to and including SECRET. The security level will be determined at the project level. The CAO and project level awardee shall have the ability to handle sensitive materials (CUI, proprietary, etc.). The CAO shall be responsible for coordinating clearance verification, access, and safeguarding of required classified resources. Tracking and disposition of this support will be the consortium manager's responsibility upon conclusion of the individual prototype project effort(s). Base Support and Government network access are not anticipated for the consortium manager or the individual prototype project performers at this time. See DD Form 254 for further detail on security requirements.

Government Property:

Government Property is not currently being provided. It is not anticipated that the consortium manager will require access to Government Property. Use of Government Property may be considered for individual project agreements. Terms and conditions regarding the tracking, use, disposition, title to and liability for Government Property will be included in the resulting agreement to provide the framework for providing Government Property to individual project prototype performers. It is understood and accepted that time may be needed to implement Government Property requirements upon the first instance of property being provided. It is also understood that projects that require Government Property may take longer to award than those without property requirements.

Deliverables:

Deliverables on project orders are expected to be prototypes (software, hardware, and/or technical documentation). Periodic reports will be required by the CAO for the overall program as referenced in the Terms and Conditions.

Proposal Instructions

Interested parties are requested to respond to this solicitation with a proposal.

Proposals in Microsoft Word for Office compatible format are due no later than 5:00 PM ET, 5 June 2023. Responses shall be limited to twenty (20) pages and submitted via e-mail to Ms. Laura Burnette, Agreements Officer, laura.burnette@us.af.mil and to Mr. Michael Hay, Agreement Specialist, michael.hay.5@us.af.mil. Cover letters, cover pages, and consortium charters are not included in the twenty (20) page limit. All submissions shall be no less than 11 pt Calibri font with 1” margins.

Proprietary information, if any, should be minimized and CLEARLY MARKED. The offeror should mark business plans and technical information that are to be protected for five years from FOIA disclosure with a legend identifying the documents as being submitted on a confidential basis. The proposal needs to answer the propulsion CAO requirements addressed in this Solicitation. To aid the USG, segregate proprietary information. Please be advised that all submissions become USG property and will not be returned.

For standardization purposes each Proposal shall be broken into two (2) sections and provide the following:

Section 1 Section 1 of the proposal shall provide administrative information as follows:

1. A cover page labeled with the heading, "Propulsion Consortium", name of company, name of corporate point of contact (POC), name of technical POC, telephone number for each POC, mailing address, e-mail addresses for each POC, CAGE Code, and any other pertinent information.

1. Assert to non-traditional or traditional status, and/or nonprofit research institution or for-profit.

1. Assert to the business type (e.g. large business, small business [including Alaska Native Corporations (ANCs) and Indian tribes], veteran-owned small business, service-disabled veteran-owned small business,HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns). Business type assertions will be based upon North American Industry Classification System (NAICS) code 541611, Administrative Management and General Management Consulting Services. "Small business concern" means a concern, including its affiliates that is independently owned and operated, not dominant in the field of operation in which it is bidding on USG contracts, and qualified as a small business under the criteria and size standards in 13 CFR part 121. A small business concern for the purposes of this procurement is generally defined as a business, including its affiliates, averaging no more than $24.5M in annual receipts (see CFR § 121.104).

1. Provide the number of consortium members for: Total active members, Non-traditional firms, Traditional firms, Academic institutions, and Non-profit organizations. Provide a proposed schedule for consortium establishment if one does not currently exist.

1. Provide the number of consortium members by business type (e.g. large business, small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business,HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns). For the purposes of this solicitation, the consortium members' business type will be based upon NAICS code 336412, Aircraft Engine and Engine Parts Manufacturing. Due to the uniqueness of each individual prototype, each prototype project will identify the applicable NAICS code when solicited. A small business concern for the purposes of this procurement is generally defined as a business, including its affiliates, employing no more than 1,500 people. Additional standards and conditions apply. Membership to the consortium is not limited by business type.

1. The facility security clearance of the offeror, to include capability to handle classified material and the ability to meet attached DD form 254 requirements at time of consortium award.

Section 2 Section 2 of the proposal shall address the following listed below:

1. Narrative describing how the objectives in 2.2.1 and 2.2.2 above would be addressed and performance against objectives would be measured.

2. Describe corporate competencies and past performance with respect to the objectives in 2.2.1 and 2.2.2. Explain experience regarding consortium management in context with USG and/or commercial applications.

3. Describe experience gained working on projects across the services and the other defense agencies, as well as affiliations, associations, and specific involvement in and with the federal and non-federal research and development, testing and engineering community, sufficient to demonstrate a well-established presence in the Propulsion community.

4. Propose innovative CAO fee structures designed to incentivize achievement of USG objectives. It is anticipated that the CAO will operate on a fee-for-service basis. Examples include, but are not limited to:

a. Fixed transaction fee (same fee regardless of price of project).

b. Tiered transaction fees (fees vary for projects that fall within different price ranges) based on project price, and/or services rendered, adjusted to exclude hardware, material, and travel costs (Note: The exclusion of hardware, materials, and travel from the fee calculation is intended to capture labor costs as the main indicator of risk in a given project, which may lead to more challenging management during performance of a given project. Projects that consist in large part of material, hardware, and/or travel are perceived to be less risky and require less potential for substantial involvement on the part of the CAO).

c. Tiered transaction fees based on total project price.

d. Percentage of price up to a maximum dollar amount based on project price adjusted to exclude hardware, materials, and travel costs.

e. Percentage of project price up to a maximum dollar amount.

Addendum The Addendum to the proposal will not be included in the page count. The addendum shall be comprised of a consortium charter that shall address the following listed below:

Consortium by-laws/membership agreement;

Consortium membership process;

Consortium membership fees; and Consortium membership requirements Provide membership information (i.e., member listing and contact information).

Evaluation Factors The Government will perform an integrated assessment of each proposal to make a final determination of which CAO provides the best value to the Government. For evaluation purposes, the following factors will be assessed, in the order of importance as shown listed below:

1. Factor 1 – Technical Acceptability: This factor is met when the proposal adequately meets the subfactors below.

a. Subfactor 1 – Strategy for consortium members at the prototype project level: The Government will evaluate the CAO's strategy for assisting the consortium members with proposal guidance, progress reporting, and invoicing at the prototype project level.

b. Subfactor 2 – Organizational structure of consortium membership: The Government will evaluate the proposed organizational structure of consortium membership for broad coverage to include technical expertise as it relates to section 2.1 and across traditional, non-traditional, large, and small business firms. Consortium members are expected to be in place by OTA award. The Government intends to solicit for individual prototype projects upon execution of the consortium OT agreement.

c. Subfactor 3 – Plan for attracting, retaining, and expanding consortium membership: The Government will evaluate the CAO's plan for attracting quickly, retaining, and expanding consortium membership specifically as it relates to mission areas identified in section 2.1.

d. Subfactor 4 – Recommended competition processes: The Government will evaluate the proposed competition process for plans to maximize competition on each prototype project.

2. Factor 2 – Fee Structure: The Government will evaluate the innovative fee structures proposed by the offeror, which are designed to incentivize achievement of Government objectives of the CAO. The USG will take into consideration the fee structure that provides the best value.

Evaluation Ratings Each of the factors/subfactors identified in Section 4 above will receive an evaluation rating supported by justification in the Government's decision of which one CAO best meets the Government's needs. The following ratings will be utilized:

10. Outstanding: The proposal demonstrates an over and above approach and understanding of the requirements. The prospective consortium has provided a comprehensive and detailed plan in accordance with the evaluation criteria as outlined in the combined synopsis/solicitation. The risk of unsuccessful performance is low.

11. Acceptable: The proposal demonstrates an adequate approach and understanding of the requirements. The prospective consortium has provided an adequate plan in accordance with the evaluation criteria as outlined in the combined synopsis/solicitation. The risk of unsuccessful performance is no worse than moderate.

12. Unacceptable: The proposal does not demonstrate an ability to meet or understand the Government requirements. The prospective consortium did not provide a plan in accordance with the evaluation criteria as outlined in the combined synopsis/solicitation. The risk of unsuccessful performance is high.

Program Timeline Note: All dates are approximated and are subject to change:

- 3 November 2022: Draft Solicitation Release

- 2 December 2022: All Draft Solicitation comments received

- 15 May 2023: Solicitation Release

- 5 June 2023: All proposals are due

- 24 July 2023: Evaluation of proposals/negotiations (If additional information or discussions are needed with any bidders during this window, the bidder(s) will be notified)

- 12 September 2023: Agreement award

- 4 September 2023: Requirement Review Communications with Offerors and Final Proposal Revisions The Government will perform an initial review of the proposal(s) submitted. The Government reserves the right to make an award based on the initial proposals submitted in response to this synopsis/solicitation notice without further interactions. Proposals that do not contain the information requested are at risk of being determined Unacceptable in accordance with the evaluation ratings above. If the Government determines that further interactions and/or an opportunity to revise proposals is necessary, the Government reserves the right to contact all, some, or none of the offerors and/or request proposal revisions.

The most effective time to handle potential problems is during the proposal preparation stage, i.e., prior to the proposal due date, not in the proposal. Therefore, if a prospective Offeror believes that any conflict of interest exists or may exist (whether organizational or otherwise), the Offeror is strongly encouraged to promptly raise the issue with the Agreements Officer by sending Offeror's contact information and a summary of the potential conflict by email to before time and effort are expended in preparing a proposal and mitigation plan. If, in the sole opinion of the Government after full consideration of the circumstances (including review of the Offeror's mitigation plan), any conflict situation cannot be effectively mitigated, the proposal may be returned without evaluation and withdrawn from further consideration for award under this combined synopsis/solicitation.

All information in response to this notice is to be submitted at no cost or obligation to the Government. The Government will publish an Intent to Award Announcement to Sam.gov upon selection of a consortium in response to this combined synopsis/solicitation. The Government does not intend to provide debriefings to unsuccessful respondents.

Be advised that all submissions become Government property and will not be returned. No sensitive or classified information will be discussed. Foreign-owned, controlled, or influenced firms are advised that security restrictions may apply that may preclude their participation in these efforts.

For planning purposes, offerors should assume an award date of 12 September 2023; however, proposals in response to this combined synopsis/solicitation will be assumed to be valid for 180 days from receipt of offer.

Questions Questions regarding this announcement may be submitted in writing by e-mail to the Agreements Officer, Ms. Laura Burnette, laura.burnette@us.af.mil and to Agreement Specialist, Mr. Michael Hay, michael.hay.5@us.af.mil. A summary of all questions with answers will be posted to the SAM website for all potential respondents to see. The USG does not guarantee that questions received after 1 June 2023 will be answered.

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