PROS_V_Industry_Day_Notes.docx

PROS V INDUSTRY DAYS

20-21 August 2014

The following companies participated in the PROS V Industry Day event:

AAR Defense Systems & Logistics Allied Defense Industries DIMO Corp.

DRS Technologies Federal Defense Industries, Inc.

General Dynamics Information Technology Messier-Bugatti-Dowty NBD Wheel & Brake Service S&K Aerospace, LLC SkyTexus International LLP SupplyCore Survitec Group/RFD Beaufort URS Federal Services (URS) Questions and answers from PROS V Industry Days:

1. Will slides be available?

Response – Yes, slides will be posted on www.fbo.gov.

2. What are the typical fill fees received on previous PROS contracts? Response – Actual fill fee amounts are proprietary data and cannot be released. The number of requisitions received in each category on PROS III and PROS IV to date (29 August 2014) is as follows:

NMCS

Repair Routine

NMCS

Total

3. If contract (delivery) will be late due to vendor problems, who should be notified?

Response – The customer (FMS partner) will get notified by the contractor via SAMIS. When item is put on contract there is an Estimated Ship Date (ESD) provided to the customer. The customer is notified with an updated ESD if the date slips. There are many status codes used and a great deal of communications between the PROS contractor and the customer.

4. Will a breakdown be provided of the competitive vs non-competitive requirements for the current contract?

Response – Based on available data of the current contract (5 June 2012 – 29 Aug 2014), the following breakdown exists for those requisitions that have been placed on contract:

· For the requisitions in the Letter of Offer and Acceptance (LOA) Sole Source requirements category, if the customer submits an LOA sole source requirement, the contractor must award the contract to that source; these would be non-competitive.

· For the requisitions in the non-competitive requirement category, when a standard item is submitted by the customer, the government approved source(s) are provided to the contractor and they are only permitted to use that source; also, for those requirements that legitimately have only one source, that source will receive the award; these would be considered non-competitive as well.

· All other requirements are to be competed. For those requirements that are competitively advertised but receive only one bid, proper price reasonableness documentation is required as if the award was made without competition.

5. Please discuss the five year closeout period for the new contract. Is that effectively a ten year Period of Performance (PoP)?

Response –The close out period is five-year span where the PROS V vendor will receive no new customer requisitions but will conclude business on all requisitions received during the ordering period to include delivery, performance, and resolution of warranty and SDR issues.

We are in the early stages of acquisition planning and the PoP is yet to be determined/approved. The PoP will be announced in the draft RFP.

6. Does traceability to the OEM need to be provided for all items, even if it for toilet paper as an example?

Response – All requirements need to have traceability to the OEM and be procured from qualified vendors.

7. For standard items, is competition required when you receive more than one US Government approved source?

Response – When multiple approved sources are provided, competition will be required; however, typically only one approved source is provided.

8. Will the attendees list be posted on FBO?

Response – Yes, it will be posted.

9. How are funds allocated for Repair since it has two phases for Test, Teardown and Inspection (TTI) and Repair? Please describe how vendors are selected to perform TTI and repairs? Response –TTI determines the scope of repair. The contractor shall provide the customer a quote for TTI. Upon completion of the TTI, the contractor shall provide a quote for the actual repair. Selection of a vendor to perform TTI and repair is the contractor’s decision; however, best value procurements and competition are required.

10. Is the SDR risk shared or incurred by the contractor? Response – The contractor shall be solely financially liable for all USG validated SDRs commensurate with the customer accepted product warranty. The PROS contractor is responsible for the integrity of the SDR investigation process, timely resolution of SDRs and for providing a recommendation of SDR validity/non-validity for the USG to make a final determination.

11. Do legacy items that are not manufactured or supported by the OEMs still require certification? And, if item is remanufactured; how is new source certified? What about surplus items? Response – Certification of OEM traceability is always required. This is a safety and maintainability issue. First article testing is not supported under the PROS contract.

12. How does the contractor’s Management Information System (MIS) interact with the USG’s MIS, SAMIS?

Response – The MIS infrastructure for PROS V is undefined at this point. This information will be provided in the Draft RFP.

13. What are the financial requirements for a company to be considered for the PROS V award?

Response – The USG will not have defined financial requirements but the prospective contractors will be subject to the responsibility determination as defined in FAR 52.209-5 and past performance will be assessed for recent and relevant performance where the value of previous efforts will be considered.

14. Is it possible to bill for material in advance of the repair?

Response – Yes, if material is required to accomplish the maintenance effort, that material can be billed in advance of the actual repair. Proper documentation shall be provided in accordance with FAR 52.216-07, Allowable Cost and Payment.

15. Is there any preference given to Small Business socio-economic groups, i.e. HUB Zone?

Response – No preference will be given, this acquisition will be full and open competition. The NAICS code for this acquisition will be 541614, with a small business size standard of $15M. Small Business subcontracting plans will be required at time of proposal submission.

16. What assistance will be provided for the PROS contractor bid board and MIS interface?

Response – The method in which competition is obtained (bid board) is a business decision for the PROS V contractor. The MIS infrastructure for PROS V is undefined at this point. This information will be provided in the Draft RFP.

17. Can estimates be provided for the dollar value and number of requisitions on contract?

Response – Yes; however, the data is unpredictable. We provided this information for the PROS IV RFP, and plan to do so in the PROS V draft and final RFP.

18. Can you describe the FMS customer funding process?

Response – The foreign customer establishes a Letter of Offer and Acceptance (LOA) with the USG. The LOA typically consists of one case and can have multiple lines. The customer country loads funding against the line(s). Once funding is loaded, the customer can begin procuring material/services against the associated case/line.

19. Are teaming arrangements allowed? If so, would it require separate bids?

Response – Yes, teaming arrangements are permitted. Only one bid would be submitted. Reference FAR Subpart 9.6

20. Can an estimate be provided on how many personnel are required to be successful on this contract?

Response – This is a business decision for the PROS V contractor to make.

21. Does the PROS contract award have to be made to a US owned company?

Response – There is no requirement that the PROS contract award be made to a US owned company, however guidance provided and FAR and DFARS Part 25 is applicable to this acquisition. Guidance provided and FAR and DFARS Part 25 is also applicable to subcontracts (suppliers).

22. If awarded the PROS V contract, how will it affect business with other foreign customers?

Response – No affect. USG has no involvement in direct commercial sales. You can still compete and receive FMS contracts outside of PROS. You would need to identify any potential Organizational Conflicts of Interest (OCI) and submit an OCI Plan if needed.

23. Will there be additional industry days?

Response – Yes, we plan to conduct a Pre-Solicitation Conference after release of the draft RFP.

24. What is driving the Higher Level of Service (HLS) in support of critical requirements, such as grounded aircraft?

Response – The HLS category is being included per FMS customer request.

25. What are the contractual incentives going to be tied to?

Response – Incentives are being discussed and will be provided in the draft RFP.

26. Does this contract utilize FOB origin?

Response – Yes, Passage of title and ownership of the materiel occurs at the vendor’s out-shipment dock on the date of shipment from the vendor to the freight forwarder or other shipping agent.

27. Are all non-standard requisitions sole source?

Response – No, only those requirements defined in the customers LOA will be treated as sole source. For non-standard items that are not LOA sole source, competition will always be required to the maximum extent practicable.

28. When does title transfer of material occur?

Response - Title and ownership of the materiel occurs at the vendor’s out-shipment dock on the date of shipment from the vendor to the freight forwarder or other shipping agent.

29. Is it possible to release historical/past procurement data?

Response – Releasable, necessary historical data will be presented in the draft RFP.

30. Why will there be a 5 year close-out period, what does the close-out period consist of?

Response – The close-out period is used to finalize SDRs and provide any remaining shipments for previously awarded contracts. There will be no new requisitions during this period.

31. Will the Higher Level of Service (HLS) be a stand-alone level of service?

Response – Yes, the current strategy is to have three levels of service, being routine, urgent, and HLS.

32. Is the USG going to raise the value for the PROS V contract?

Response – The USG is seeking a higher total contract value which will correlate with the recommended longer Period of Performance (PoP).

33. Will other than certified cost and pricing data be required?

Response – It is anticipated that this contract will be competitively awarded based on adequate price competition. USG does not anticipate requesting other than certified cost and pricing data. If only one offer is received, certified cost and pricing data will be required.

34. Are repairs required to be performed by OEM and/or FAA approved repair sources?

Response – FAA approved repair sources are acceptable for commercial derivatives; however, all military applications require OEM approved repair sources.

35. Can the PROS Contractor use distributors in lieu of OEMs for supplies?

Response – Purchase from either OEM or authorized distributor is acceptable. Competition is required to the maximum extent practicable. The purchase must be fair and reasonable and traceability to the OEM must be documented.

36. WAWF is not used for payments. Can you describe the invoicing process?

Response – Invoices are processed through Security Assistance Management Information System (SAMIS). The contractor will also provide an electronic copy of the invoice via email and all back-up as required by the contract. The invoice is reviewed by the PMO office and submitted to DFAS to begin the payment process. Payment is direct deposited to the customer's account in accordance with the Prompt Payment Act.

37. Can you discuss the transition period? What is driving the need for a transition period?

Response –A possible transition period is still being discussed. No determination has been made yet as we are still in the early planning phases of the acquisition. More information will be provided in the draft RFP.

38. Is the USG interested in shared savings for repeat procurements?

Response – The USG is always interested in shared savings; however, predictability does not exist for repetitive procurements. Many of the requirements are one time buys and the FMS partners typically do not forecast their requirements.

39. What is the operating system for SAMIS?

Response – the operating system for SAMIS is Z/os version 1.13.

40. Will this be awarded as a FAR 12 or FAR 15 Acquisition? Can commercial past performance be submitted with proposals, or is USG contract experience required?

Response – FAR 15 source selection procedures will apply. All recent and relevant past performance (commercial or government) may be considered.

41. Will this acquisition be a set-aside or full and open?

Response – USG expects this to be a full and open competition. The NAICS code for this acquisition will be 541614, with a small business size standard of $15M.

42. Will this acquisition be awarded as a Lowest Price Technically Acceptable (LPTA) or Best Value (Trade Off)?

Response – This is undetermined at this point as we are in the early phases of the acquisition process. This information will be provided in the draft RFP.

43. Have the CLIN structure for the contract been determined yet?

Response – This is undetermined at this point as we are in the early phases of the acquisition process. This information will be provided in the draft RFP.

44. Will the contract allow for drop shipments or does the contractor need to bring everything in house to inspect?

Response – The contract does not have specific requirements concerning this; this would be a business decision for the awardee.

45. Will the contract require a local representative there in Dayton?

Response – A local contractor representative will not be required.

46. Will each country have different price approval requirements?

Response – SAMIS has a field where each country can input a Not-To-Exceed (NTE) amount for each requisition. If the price quote received exceeds this amount, the contractor will contact the country to gain price approval. The USG does not have insight into each country's price approval requirements to answer the question for requisitions above the NTE amounts.

47. Will obsolete items be removed from the calculation of percent of cancelled requisitions? In other words, will the contractor be penalized for requisitions that are cancelled due to obsolescence?

Response – This is undetermined at this point. The USG does not intend to penalize the contractor for issues out of their control.

48. Will the USG incentivize early on-contract award times?

Response – This is undetermined at this point as we are in the early phases of the acquisition process. This information will be provided in the draft RFP. Various incentives are being considered.

49. Is it common for businesses to form teaming arrangements to propose for PROS contracts?

Response – This is a business decision for all interested parties. USG has seen both situations.

50. How firm is the 2 March 2016 award date?

Response – It is a tentative date.

51. Can UK companies participate as vendors?

Response – There is no requirement that the PROS contract award be made to a US owned company, however guidance provided in FAR and DFARS Part 25 is applicable to this acquisition. Guidance provided in FAR and DFARS Part 25 is also applicable to subcontracts (suppliers). In accordance with DFARS 225.872-1 the UK is a qualifying country for supply items.