LIS Questions for Industry Feedback 20240724.pdf

Logistics Integration Support (LIS) Questions for Industry Feedback

1. The Government is considering a contract period consisting of 10 years (two 5-year ordering periods). Is this approach feasible for industry to provide fixed pricing for 10 years?

2. The Government has identified the risk of adding new NSNs, after contract award, where a Govt directed source (e.g., OEM) is required and receiving fair & reasonable pricing for the period of performance remaining under contract (e.g., if a new NSN is added in ordering year 2, a price to cover ordering years 2-5). The risk is not there for NSNs with no Govt directed source because the Government is able to receive competition and get multiple vendor quotes for the part. Does industry have ideas on how to address this risk, including but not limited to contract structure, terms, contract T&Cs, etc.?

3. The Government has identified the risk that certain parts may have limited capacity to produce within certain time frames. For example, Manufacturer A can only produce 50 parts within a 1-month period. During a time of military conflict, requirements are expected to surge, and possibly exceed the capacity. Does industry have any ideas on how to address this risk, and work with the Government to identify the throughput limits (e.g., set contractual monthly/weekly/quarterly throughput caps for certain NSNs) and/or increase those caps/limits in certain circumstances (e.g., tiered pricing?)

4. What is industry’s recommended contract type (e.g., FFP vs Cost, D type vs other, etc.) or recommended revisions to any PWS or T&Cs of the RFP?

5. The Government has identified two key risks: 1) adhering to contractually required turnaround times and 2) quality control. The Government is considering implementing one or more Incentive or Disincentive and wants industry’s feedback on these ideas or others, particularly second order effects that the Govt may not have considered:

a. Penalties during contract performance for contractor not meeting the TAT, unless the reason for not meeting the TAT is outside control of the CTR.

b. Incentives during contract performance for exceeding the contractual TAT.

c. Value Adjusted Total Evaluated Price (VATEP) source selection at the pre-award stage, whereby offerors have its price evaluated more favorably when exceeding the Govt provided TAT for certain NSNs.

d. Penalties during contract performance for not meeting specific quality standard metrics.

e. Incentives during contract performance for exceeding specific quality standard metrics.

6. Are there any potential or actual barriers to competition that the Government should be made aware of, particularly as it relates to OEM directed parts?