H2 Heater Demo - Step 1 Market Research for OTP.pdf

29 April 2025

MEMORANDUM FOR INTERESTED VENDORS

FROM: AFMC/AFTC/PZIA (Arnold)

SUBJECT: OTP Execution Step 1 – Market Research – H2 Heater Demolition

Ref: 10 USC 4022 – Authority of the DoD to Carry Out Certain Prototype Projects -

Establishment of Other Transaction Prototype (OTP) Project(s) with Potential for Follow-on

Production Capability

Government Overview

Project Problem Statement:

The Government requires a vendor or multiple vendors to develop a business process and demolition plan for the OTP, which will be the basis for executing the demolition and salvage of the H2 Heaters in a potential follow-on production agreement.

Reference Attachment 1 – H2 Heaters Condition Photos and Drawings for the current heater conditions.

NOTE: This document is labeled Distribution D; therefore, interested vendors shall be vetted before receiving the document.

1. The vendor must be registered in SAM.gov with no active exclusions; and

2. The vendor must have a basic NIST SP 800-171 assessment completed in SPRS within the last 3 years.

Government Market Research Request

1. In general, does your company have the ability to execute an effort of this magnitude? If so, does your company plan to submit a whitepaper?

2. Provide CAGE Code:

DEPARTMENT OF THE AIR FORCE

HEADQUARTERS AIR FORCE TEST CENTER (AFMC)

EDWARDS AIR FORCE BASE CALIFORNIA

3. Specify which authority your company plans to utilize. Note: The anticipated North American Industry Classification System (NAICS) code for this procurement is 238910 Site Preparation Contractors with a small business size standard of $19M.

10 U.S.C. 4022(d)(1)(A)-(C) – Appropriate Use of Authority

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

(B) 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.

(C) At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government.

4. Vendor estimated cost to develop a business process, which will ultimately define the successful prototype.

5. Identify subcontracting possibilities.

6. Provide brief technical capability overview.

7. Provide standard business practices in regard to data rights and intellectual property.

8. Provide NIST SP 800-171 Assessment date and score.

9. Provide Supplier Performance Risk System (SPRS) Supplier Risk score.

Vendors shall provide a response to 1 – 9 above no later than 14 May 2025, 2:00PM CDT to

Haley Smith, Agreements Officer, and Bailey Deason, Agreements Specialist:

haley.smith.10@us.af.mil bailey.deason@us.af.mil

HALEY M. K. SMITH, DAF

Agreements Officer mailto:haley.smith.10@us.af.mil mailto:bailey.deason@us.af.mil

General OTP Procurement Execution Steps:

Procurement Authority: 10 USC 4022

In accordance with 10 USC 4022(e)(5), the Government is in search of capable vendors with the ability to execute the requirement by providing a business process that supports this effort.

Step 1: Market Research (Current Step)

Vendors are to submit a response in regard to 1 – 9 under Government Market Research Request from Vendor section listed above.

Establishes potential/capable vendors, which establishes the project’s competitive consortium.

Step 2: Request for White Papers

Once market research concludes, the Government intends to request whitepapers from the vendors that proved their ability in the Market Research Stage.

The Government will down select based on how each vendor scores in regard to their white paper response.

Step 3: Request for Prototype Proposal

Once white paper down selects are finalized, an official request for prototype proposal will be issued to the successful white paper vendor(s).

Agreement terms and conditions are developed during this stage.

Step 4: Prototype Award

After prototype proposals are received, they will be evaluated in accordance with the evaluation criteria provided in the request for prototype proposal.

After evaluations are finalized, the Government may award one or award multiple (exact number to be determined) OTP awards in attempts to produce successful business process prototype(s).

Step 5: Follow-on Production Potential

If prototype(s) are determined successful, and if determined to be in the best interest of the

Government, the successful business process/prototype will be the basis for executing this project, in its entirety, under the follow-on production agreement(s).

Once the Government determines to enter into a follow-on production, a request for follow-on production proposal will be issued to the successful vendor(s).