WEXMAC 2.0 Industry Day Brief.pdf

READY. RESOURCEFUL. RESPONSIVE.

Presented to:

Industry Partners

WEXMAC 2.0 Industry Day Presented by:

SUP 02, Contracting Directorate 27 March 2024

Agenda

Opening Comments 0900

Agenda0910

NAVSUP Overview0915

WEXMAC 1.0 Overview0930

Break1015

Mr. Kurt Wendelken, Vice Commander

Mr. Thomas Kunish

LCDR Sand Miller

LCDR Timothy Trask

WEXMAC 2.0 Overview & PWS1030 LCDR Timothy Trask

WEXMAC 2.0 Section H, L & M1100 Mr. Jonathan Flower

DIB Cybersecurity Services 1330

Lunch1200

Ethics1400 Mr. Rick Martinelli & Mr. Brian Novak

Break1415

Questions & Answers1430 Mr. Thomas Kunish

Closing Comments1600 Mr. Mark Bennington, Assistant Commander

Ms. Samantha Anim & Ms. Chiara Banks

Intent

Provide all interested contractors information on the contents of the draft RFP for the WEXMAC and to start the conversation for any questions that may arise with the eventual RFP.

Information presented is considered “draft” – meaning, the approach, ELIN structure, PWS, etc., are not considered final and therefore subject to change.

If there are any discrepancies between this brief and the released RFP, the information in the released RFP will take precedence.

Encourage all contractors to provide as much feedback as possible on any ideas that we present today.

Industry Partners

NAVSUP Overview Presented by:

LCDR Sand Miller

NAVSUP History

NAVSUP Mission

Provides program and supply support for the weapon systems that keep our naval forces mission ready.

FLEET LOGISTICS CENTERS

Globally postured to deliver integrated logistics, contracting services, ordnance and facilitate transportation.

NAVAL EXCHANGE COMMAND

Oversees Navy Exchange and Navy Lodge facilities worldwide.

BUSINESS SYSTEMS CENTER

Provides premier information technology supporting logistics, supply chain management, transportation, finance, and accounting.

FLEET LOGISTICS CENTERSWEAPON SYSTEMS SUPPORT

NAVAL EXCHANGE COMMAND BUSINESS SYSTEMS COMMAND

Yokosuka

San Diego

Puget Sound

Jacksonville

Norfolk/VA. Beach

Philadelphia

Sigonella

Mechanicsburg

USINDOPACOM

Pearl Harbor

USSOUTHCOM

USINDOPACOM

USEUCOM

USAFRICOM

Bahrain

USCENTCOM

USNORTHCOM

NAVSUP Headquarters

Fleet Logistics Centers (FLC)

FLC Sites

NAVSUP Enterprise

Industry Partners

WEXMAC 1.0 Overview Presented by:

LCDR Timothy Trask

Contract Type: Firm-Fixed-Price, Indefinite Delivery / Indefinite Quantity, Multiple Award Contract

Procuring Contracting Office: NAVSUP Fleet Logistics Center Yokosuka

Program Value: $242M

Authorized Users: DoD & USCG

Places of Performance: All locations outside U.S.

Geographic Regions: 22

Contractors: 28

Competition: No less than 9 contractors per region

Ordering Begin: 1 October 2021

On/Off Ramps: Yes

WEXMAC 1.0 Contract

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Management & Integration

WEXMAC 1.0 Impact

1010WEXMAC became a critical tool in providing expeditionary support to joint forces.

3.5Offers 21 daysLead Time

82Countries

ObligationsAwardsGCC

$63.63M252USEUCOM

$14.9M48USAFRICOM

$5.44M29USSOUTHCOM

$6.86M48USCENTCOM

$8.2M46USINDOPACOM

$.M0USNORTHCOM

$99.02M423Total

Obligation %ObligationsAwardsSize

35.57%$35.22M172OTH SB

64.43%$63.81M251SB

WEXMAC 1.0 Spend & Program Value

Historical Spend WEXMAC Daily & Projected Spend

Operations ALLIES Refuge

Ukraine Response

Sudan Evacuation

WEXMAC 1.0 program value = $121M WEXMAC 1.0 program projected value = $183.68M

Small Business = $63.81 (64.43%)

$.M $1.M $2.M $3.M $4.M $5.M $6.M $7.M $8.M $9.M

$10.M

Obligations Awards

$.M

$50.M

$100.M

$150.M

$200.M

$250.M

$.K

$20.K

$40.K

$60.K

$80.K

$100.K

$120.K

$140.K

AVG Spend/Day 5-Year Programmed Value Projected

Contracting Office TO(s) Actions Obligations

0408 AQ HQ KUWAIT 3 6 $2.12M

0409 AQ HQ CONTRACT 163 335 $47.53M

0413 AQ HQ CONTRACT AUG 1 4 $.16M

0414 AQ HQ CONTRACTING SUP 11 19 $1.37M

COMMANDING GENERAL 43 80 $5.54M

COMMANDING GENERAL (M68450) 5 8 $2.06M

HQ USSOCOM 6 6 $.09M

NAVSUP FLC BAHRAIN 44 100 $4.72M

NAVSUP FLC SIGONELLA NAPLES OFFICE 92 195 $25.75M

NAVSUP FLC YOKOSUKA SASEBO OFFICE 2 7 $.33M

NAVSUP FLT LOG CTR YOKOSUKA 7 40 $.57M

NAVSUP FLT LOG CTR JACKSONVILLE 19 41 $4.58M

NAVSUP FLT LOG CTR SINGAPORE OFFICE 27 41 $4.23M

Total 423 882 $99.04M

WEXMAC 1.0 Operation ALLIES Refuge

1212WEXMAC became a critical tool in providing expeditionary support to joint forces.

8/26/2021-9/10/2021Period of Performance SpainPlace of Performance 7 daysLead Time 2 Offers $519,885Obligation FLC SigonellaContracting Office

NAVSUPHCA

M a n a g e m en t

In te g ra ti o n

WEXMAC 1.0 supported multiple task orders to support Operation ALLIES Refuge in Bahrain, Italy, and Spain.

WEXMAC 1.0 contractors required to manage and integrate multiple exhibit line-item numbers to support Operations ALLIES Refuge.

WEXMAC 1.0 authorized ordering officers incorporated multiple “Reserved” exhibit line-item numbers “Stand-Alone” performance work statements.

WEXMAC 1.0 Ukraine Response Sample

1313WEXMAC became a critical tool in providing expeditionary support to joint forces.

2/16/2022-3/18/2022Period of Performance PolandPlace of Performance 4 daysLead Time 3Offers $855,080Obligation 409th CSBContracting Office

ACCHCA

M a n a g e m en t

In te g ra ti o n

WEXMAC 1.0 supported multiple task orders to support EUCOM’s response to Russia’s invasion of Ukraine.

Contractors required to manage and integrate multiple exhibit line-item numbers to support EUCOM’s response to Russia’s invasion of Ukraine.

Authorized ordering officers incorporated multiple “Reserved” exhibit line-item numbers “Stand-Alone” performance work statements.

WEXMAC 1.0 Sudan Evacuation Sample

1414WEXMAC became a critical tool in providing expeditionary support to joint forces.

4/27/2023-04/27/2023Period of Performance SudanPlace of Performance 1 dayLead Time 2Offers $5,165,000Obligation FLC SigonellaContracting Office

NAVSUPHCA

M a n a g e m en t

In te g ra ti o n

Authorized ordering officers incorporated one “Reserved” exhibit line-item number “Stand-Alone” performance work statement.

WEXMAC 1.0 contractors provided an executable solution to complex, emergent, and logistics problem.

Break

Industry Partners

WEXMAC 2.0 Overview & PWS Presented by:

LCDR Timothy Trask

Contract Type: Firm-Fixed-Price (FFP), Indefinite Delivery / Indefinite Quantity (IDIQ), Multiple Award Contract (MAC)

Ordering Period: 10 years (5-year base & 5-year option period)

Authorized Users: All Federal Agencies

Places of Performance: All Locations

Geographic Regions: 26

Program Value: $2.55 Billion (>1% Supplies)

On/Off Ramps: Yes

Procuring Contracting Office: NAVSUP HQ Contracting Directorate

WEXMAC 2.0 Overview

WEXMAC became a critical tool in providing expeditionary support to joint forces.

WEXMAC 2.0 Environment

Medium/Long-Term Requires Robust Terms & Conditions including Quality Assurance & Oversight

Short-Term (3 Months)

Long-Term (60 Months)

FFP FFP/Cost Reimbursement FFP/Cost Reimbursement

WEXMAC VACANT LOGCAP/AFCAP/NAVFAC

Large Scale Joint ForcesNavy Expeditionary

Medium-Term (24 Months)

Small/Medium Integrators

Large Integrators

Large Integrators

“Medium” Scale Joint Forces

WEXMAC modeled short-duration Navy Expeditionary requirements.

Minimal quality assurance & oversight.

Terms & conditions do not support joint force requirements across multiple domains (for example, line hauls).

WEXMAC’s small/medium integrators have shown positive results in cost avoidance, performance, and speed to award.

There is currently no External Support Contract focusing on “medium” scale joint forces.

WEXMAC became a critical tool in providing expeditionary support to joint forces.

WEXMAC 2.0 Environment

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Current Environment

Army & Navy Joint Acquisition Team Approach

Desired Environment

Service-Centric External Support Contracts

PR

O

BL

EMWEXMAC 1.0 program value is unable to support joint forces requirements

WEXMAC 2.0 intends to meet joint forces’ “medium” scale requirements

WEXMAC 1.0 places of performance are outside US and

Outlying Territories

WEXMAC 2.0 incorporates US and outlying territories as small business set-asides

20WEXMAC became a critical tool in providing expeditionary support to joint forces.

There are 22 proposed geographical regions throughout the world.

Certain geographical regions will contain only one country (i.e. Thailand, Philippines, etc.)

NAVSUP reviewed all stand alone procurements (not executed on IDVs) from FY15-19 in foreign locations for USMC, MSC, and NAVSUP to identify common spend product and service codes to support geographic regions.

WEXMAC 2.0 Places of Performance

Categories of Support

Sub-Contract Line-Item Number (SUBCLIN)

Exhibit Line-Item Numbers (ELIN)

Reserved ELIN

Services: Logistics, MHE, Lodging, Life Support, Force Protection, Communications, Transportation & Other Services

Supplies: Class I, Class II, Class III, Class IV, Class VI, Class VIII & Other Supplies

WEXMAC 2.0 Scope

+300 Expressed ELIN(s) with a performance work statement.

Ensure it is within the scope of the categories of support.

Associate with SUBCLIN.

Standalone PWS to support the undefined requirement.

WEXMAC became a critical tool in providing expeditionary support to joint forces.

WEXMAC 2.0 Performance Work Statement

Logistics Management and Integration Services0001AA

Material Handling Equipment and Crane Services 0001AB

Lodging Services 0001AC

Life Support Services 0001AD

Force Protection Services 0001AE

Communications Services 0001AF

Transportation Services 0001AG

Other Services 0001AH

Class I – Food, Rations, and Water Supplies 0001AJ

Class II – Clothing Supplies 0001AK

Class III – Petroleum, Oils, and Lubricants0001AL

Class IV – Fortification and Barrier Materials Supplies

0001AM

Class VI – Personal Items Supplies Supplies

0001AN

Class VIII – Medical Supplies 0001AP

Other Supplies

SERVICE OR SUPPLYSUBCLIN

M a n a g e m en t

In te g ra ti o n

WEXMAC became a critical tool in providing expeditionary support to joint forces.

0001AQ

Exhibit Line Numbers (ELIN)

Multiple ELIN(s) associated with each Subcontract Line Item (SUBCLIN)

Over 300 ELIN(s) with performance work statements (Expressed ELIN(s))

Reserved ELIN(s) requiring “Stand-Alone” performance work statements associated with each SUBCLIN

Other Services and Supplies SUBCLIN may incorporate Reserved ELIN(s)

WEXMAC 2.0 Section H, L & M Presented by:

Mr. Jonathan Flower

WEXMAC 2.0

Section H - Rolling Admissions and Removals

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Government may initiate new competitions with the intent to incorporate additional contractors into the WEXMAC.

Government may initiate new competitions to permit current WEXMAC contractors to serve additional geographical regions to include but not limited to large companies serving in regions set-aside for small business.

Failure to meet contract requirements, including but not limited to, repeated poor performance or the neglect to submit proposals for task orders, may result in the contractor's removal from the WEXMAC.

Section H - Ordering

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Notes:

The Government may accept any item or group of items of an offer.

The Government has the right to issue a Task Order to a contractor within the ordering period and up to the ordering maximum.

The Government will not be liable for any charges in the event an order or ELIN is cancelled at least 7 business days prior to the start of the period of performance

Section H - Access

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Performance in certain AORs requires additional access approval.

Joint Contingency Contracting System (JCCS) requires registration for USAFRICOM and USCENTCOM.

Failure to register in JCCS for USCENTCOM and USAFRICOM may render the offeror ineligible for award or continued performance.

USCENTCOM and USAFRICOM contractors shall remain eligible during the entire period of contract performance for access to a U.S. installations, vessels, properties, personnel, equipment, and/or project sites.

USAFRICOM subcontractors with a value greater than $50K shall be registered and remain eligible during the entire period of contract performance for access to a U.S. installations, vessels, properties, personnel, equipment, and/or project sites.

Section H - USFK Invited Contractor Program

WEXMAC became a critical tool in providing expeditionary support to joint forces.

The SOFA mandates the use of Korean contractors in the Republic of Korea (ROK) whenever possible. A U.S.

Government Contracting Officer (KO) shall request approval to use U.S. contractors when at least one of the four exceptions listed below are applicable:

Security considerations, The technical qualifications of the contractor involved, The unavailability of materials or services required by

U.S. standards, or Limitations of U.S. law.

Task orders for performance in ROK will be set-aside for Korean contractors unless the KO receives approval from United States Forces Korea (USFK).

Section H - Berry Amendment Exception

WEXMAC became a critical tool in providing expeditionary support to joint forces.

An authorized ordering officer may apply an exception to the Berry Amendment (10 U.S.C.4862), which restricts the Department of Defense (DoD) from using funds appropriated or otherwise made available to the DoD for the procurement of certain items not grown, reprocessed, reused, or produced in the United States, to a specific task order issued under this contract.

Examples Include:

Food Clothing and Fabrics Hand & Measuring Tools

Anti-Deficiency Action Violation (ADA)

Section H - Protective Domain Name System Service

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Utilize a Protective Domain Name System (PDNS) service on all covered contractor information systems processing, storing, or transmitting covered defense information, consistent with the applicability and definitions contained in DFARS 252.2047012.

Use any commercially available PDNS provider or may use PDNS services provided, at no cost to DoD contractors, by the NDA’s Cybersecurity Collaboration Center (CCC). More information related to NSA CCC provided PDNS services can be found at https://www.nsa.gov/about/cybersecurity-collaboration-center.

Contractors that use commercially available PDNS providers are authorized to share PDNS alerts and logs with NSA for analysis and defensive measures.

WEXMAC 2.0 Section L Submission Requirements

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Cover Letter: Offerors shall submit a cover letter, clearly identifying the Global Region(s) in which the proposal includes and any country limitations within the region. Offerors shall make an affirmative statement in which the offeror agrees to comply with the terms and conditions of the contract.

Only Small Businesses shall submit a proposal for Regions 23, 24, 25, and 26.

Signed standard form 33 – with all applicable signatures and acknowledgment of amendments.

Completed Representations and Certifications (Section K)

While there is no subcontracting requirement, offerors shall identify the extent to which subcontracting is needed to perform the requirement.

WEXMAC 2.0 Section L Submission Requirements

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Joint Contingency Contracting System (JCCS) registration for USAFRICOM and USCENTCOM

A one-page explanation of how an offeror intends to ensure that the prices they offeror in response to an RTOP are fair and reasonable.

Responsibility narrative covering each element of FAR 9.104-1.

Additional documentation may be required to support the responsibility narrative.

The Government seeks information for the sole purpose of determining whether each offeror is responsible. Any request for additional information will not constitute discussions within the meaning of FAR 15.306 as the offeror will not be given an opportunity to revise its proposal.

WEXMAC 2.0 Section M Evaluation Factors

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Multiple Award to Qualifying Offerors

FACTOR 1 - GENERAL STANDARD OF RESPONSIBILITY DETERMINATION

FACTOR 2 – COMPLIANCE WITH THE SOLICITATION

FACTOR 3 – PRICING ASSESSMENT

The Government will assess the information available to determine whether the offeror is likely to offer fair and reasonable pricing.

The Government will not include price or cost as an evaluation factor.

Lunch

DIB Cybersecurity Services Presented by:

Ms. Samantha Anim & Ms. Chiara Banks

Industry Partners

Ethics Presented by:

Mr. Rick Martinelli & Mr. Brian Novak

Ethics

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Several specific ethics provisions

Additional general language in Solicitation/PWS

KO has a broad reporting requirement

Government employees

FAR 52.203-3

Gratuities

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Right of the contractor to proceed may be terminated if the contractor offered or gave a gratuity, e.g., an entertainment or gift, to government employee for the purpose of obtaining favorable treatment under a contract.

The Government may recover exemplary damages of from 3 to 10 times the cost incurred by the contractor in giving the gratuity.

FAR 52.203-7

Anti-Kickback

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Statute prohibits providing, attempting to provide, or offering to provide any kickback;

soliciting, accepting, or attempting to accept any kickback, or including any kickback amount in a contract price (prime or subcontract).

Contractor required to “have in place and follow reasonable procedures” to prevent and detect possible violations.

FAR 52.203-7

Anti-Kickback

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Contractor required to promptly report any violations when it has reasonable grounds to believe a violation may have occurred.

The contractor shall cooperate fully with any Federal agency investigating a possible violation.

The KO may offset the amount of any kickback against any funds owed by the US under the prime contract.

The contractor must incorporate the substance of the clause in all subcontracts exceeding $150K.

FAR 52.203-13

Code of Business Ethics and Conduct

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Within 30 days after contract award, the contractor shall have a written code of business ethics and conduct.

Make a copy of the code available to each employee engaged in performance of the contract.

The contractor shall promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.

41WEXMAC became a critical tool in providing expeditionary support to joint forces.

The contractor shall disclose to Inspector General and KO whenever it has credible evidence that a principal, employee, agent, or subcontractor has committed a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violation.

The contractor shall establish a business ethics awareness and compliance program.

Must include training and an internal control system.

Ethics

FAR 52.203-13

Code of Business Ethics and Conduct

DFARS 252.203-7001

Employing Those Convicted of Fraud

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Any person convicted of fraud or other felony arising out of a contract with the DoD may not serve in a management or supervisory capacity, may not serve on the contractor’s board of directors, and may not act as a consultant, agent, or representative of the contractor for five years from conviction

Penalties for knowingly employing such a person

FAR 52.222-50

Combating Trafficking in Persons

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Broad coverage. Includes contractors, contractor employees, and their agents.

Several restrictions:

Shall not procure commercial sex acts during the period of performance of the contract;

Shall not use forced labor in performing the contract; and

Shall not charge employees recruitment fees.

Contractor required to notify its employees of the policies, take appropriate actions against employees, agents, or subcontractors who violate the restrictions.

FAR 52.222-50

Combating Trafficking in Persons

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Affirmative duty to disclose nature and extent of any offence to Inspector General and cooperate fully in investigations of violations.

Maintain a compliance plan when services with an estimated value exceeding $500K are to be performed outside of the U.S.

The plan must be appropriate to the size and complexity of the contract.

Other Compliances

WEXMAC became a critical tool in providing expeditionary support to joint forces.

General provision to “comply with any applicable laws, codes and regulations, in connection with the performance of all work under this contract.” PWS, Section B, Quality.

Brings in the ethics-related laws and regulations of the country in which a TO is being performed.

Those laws vary substantially but may prohibit bribery to a public official, bribery of a private citizen, or fraud or misrepresentation during business dealings.

DFARS 209.406-3

Present responsibility

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Requires the contracting officers to refer matters providing a basis for suspension to the agency’s debarring and suspension official.

Includes commission of any offense “indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a Government contractor”.

Debarring and suspension official will consider the facts and decide whether suspension or debarment is warranted.

Government Employees

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Ethics restrictions for Government employees:

Focus is on contractor requirements, not Government employee restrictions.

Be aware, however, that Government employees are restricted from seeking or accepting any gratuities (i.e. gifts) from a “prohibited source” .

“Prohibited source” includes prime contractor and any of its subcontractors.

The restriction applies to all Government employees, regardless of whether they are involved with the contracting process.

Government Employees

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Very limited set of exceptions applies but the basic rule is Government employees may not seek or accept gratuities from a contractor.

Gratuity (with limited set of exceptions) is “anything of monetary value.” Includes meals, lodging, travel expenses, and entertainment.

Don’t offer a gratuity to a Government employee:

May be perceived as attempt at bribery; and

If a gratuity is accepted, Government employee may end up in trouble and contractor may be investigated.

Government Employees

WEXMAC became a critical tool in providing expeditionary support to joint forces.

Government employees have internal reporting requirements before seeking employment with a contractor.

Compliance with ethics requirements has high visibility.

Allegations of wrongdoing are reviewed and investigated.

Understand the rules, make sure your employees and subcontractors understand the rules, and insist on full compliance

Break

Questions & Answers Presented by:

Mr. Thomas Kunish

Questions & Answers

Verbal answers given during this brief are only intended for general discussion and do not represent the Government's final position.

Oral explanations or instructions given by Government officials before an award of a contract will not be binding.

The Government may determine that questions received are not relevant to this specific Sources sought, questions received are prejudicial to a specific prospective offeror, or a question requires additional research before an answer can be given.