SW_IDIQ_Industry_Day_Brief_(Final)_31_Jul_2016.pdf

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Aircraft Carrier Maintenance

Southwest CVN 68 and 78 Class Private Sector Maintenance Contract

Industry Day

For Official Use Only

Industry Day Team

PEO Aircraft Carriers, In-Service Aircraft Carriers (PMS312) o Michael Cornwell, Deputy Program Manager o Carl Zeigler, West Coast CVN Platform Manager o Dana Pennell, Acquisition & Contracts Manager

HQ NAVSEA Contracts, Fleet Support Contract Division (SEA 024) o Forrest Tucker, Branch Head, Submarine, CVN, and LCS Repair Support o Michaella Easley, Procuring Contracting Officer, Carrier Ship Repair

Ground Rules

• The purpose of this Industry Day is to improve Industry’s understanding of the PEO Carriers' acquisition priorities of In-Service Aircraft Carrier Maintenance, Repair, and Modernization Contracting Strategy. PEO Carriers desires to collaborate with Industry to gain feedback on how to best meet our acquisition priorities. This briefing discusses the program’s current thinking, strategy, and intent for the best contracting approach and may change based on feedback and other inputs.

• Separate one on one sessions will be conducted upon request.

Questions will be treated as “Bidder’s Questions” and all answers will be made publicly available.

Agenda

• PMS 312: Aircraft Carrier Program Office

• CVN Private Sector Maintenance

• Highlights for CVN Private Sector Maintenance Contract

Requirements

• Southwest CVN Private Sector Maintenance Solicitation

• Responding to the Requests for Proposals

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In-Service Aircraft Carrier Program Office

Provide Class Maintenance, Fleet Modernization and Life Cycle Management of the Aircraft Carrier Fleet in support of the Naval Aviation

Enterprise and Naval, Joint and Coalition Force Operations

In-Service Sustainment for CVN 68 and CVN 78 Class

“Aircraft Carrier Readiness is our Mission”

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In-Service Aircraft Carriers Focus

Operational Availability (Ao) o On-time completion of CNO availabilities (#1 Priority!)

o Ready for Tasking – Equipment

Capability o Providing the right capability (at the right cost) o Air Wing Integration o System/Component Strategies o Training

Cost o Providing the right operational capability o Reducing Total Ownership Costs (TOC)

Sustainment Manning Processes … etc

CVN Private Sector Maintenance

Southwest CVN Private Sector Maintenance (PSM) Contract

• General Information

– Anticipated Period of Performance: 16 Nov 2018 to 15 Nov 2023

• Notional CLIN Structure CLINs for IAPA (Inter-availability Planning) each FY

CLINs to Accomplish Continuous Maintenance Work on San Diego- Homeported CVNs between CNO Availabilities

CLIN to Accomplish Continuous Maintenance Work on San Diego-Visiting CVNs between CNO Availabilities

CLIN to Accomplish Emergent Work on CVNs between CNO Availabilities CLINs for PIO, CDRLs, and PTD

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• Notional CLIN Structure (continued)

CLINs for Advanced Execution Planning of each CNO-Scheduled PIA for San Diego-Homeported CVNs during remainder of Contract Period of Performance after Base Award

CLINs for Accomplishment of each San Diego-Homeported CVN Planned Incremental Availability (PIA)

CVN Private Sector Maintenance (continued)

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San Diego Homeported CVNs

CVNs Homeported in San Diego, CA USS Carl Vinson (CVN 70)

USS Theodore Roosevelt (CVN 71)

USS Abraham Lincoln (CVN 72)

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• Private Sector Maintenance non-nuclear work to supplement Public Shipyard work during PIAs at Southwest Regional Maintenance Center (SWRMC) San Diego

• Unique relationship between the Contractor and Naval Supervising Activity (NSA)

• Planned Incremental Availability (PIA)

– Notional 6 Months

– Includes corrective/emergent maintenance and Modernization

– Performed at SWRMC San Diego

• Continuous Incremental Availability (CIA)

– Notional 45 Days

– Includes corrective/emergent maintenance

– Performed at SWRMC San Diego

Incremental and Continuous Maintenance Plan and Surge Work

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• Inter-Availability Planning and Administration (IAPA)

• Continuous Incremental Availability (CIA)

– Includes corrective/emergent maintenance

• Continuous Maintenance Availability/Window of Opportunity

(WOO)

– Schedule between at sea underway periods

– Includes corrective/emergent maintenance

– Performed at SWRMC San Diego

Incremental and Continuous Maintenance Plan and Surge Work (continued)

NAVSEA 02

Contracting Process

Objective

• High level overview of the contracting process

• Plan to shift from MSMO construct to a contracting approach yet to be determined. Multiple single award contract options are being considered.

• Information presented is representative of the “planned” requirement

• Released solicitation will govern the terms and conditions of the competitive process

Southwest CVN PSM Solicitation

• Five year period of performance from contract award

• Cost-Plus-Incentive-Fee (CPIF) Contract type with option to utilize FFP efforts

• 40% small business participation

• CLINs will reflect specific work to be performed

• Full and open competition

• Best Value Source Selection

• Intend to award on basis of initial proposals

Contract Fee Structure

Award Fee and Incentive Fee Award Fee (CPAF) 4.0% Incentive Fee (CPIF) 7.0% Max Fee

Management Technical Target Cost

Target Schedule

Incentive Cost

4.0% 4.0% 4.0% 4.0% 1.0% 11.0%

*Phase II: Small Business Subcontracting/Small Business Subcontracting

Extent to which the contractor meets or does not meet the 40% Small Business Subcontracting requirement as stipulated in the contract; if not met, the amount of total incentive fee calculated will be set forth in the contract.

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• Synopsis 2nd Quarter GFY 17

• Peer Review 2nd Quarter GFY 17

• Solicitation Issuance date 3rd Quarter GFY 17

• Proposal submission date 60 days after RFP release

• Technical Evaluation 1st Quarter GFY 18

• Cost Evaluation 1st Quarter GFY 18

• Brief evaluation results to Source

Selection Advisory Council 1st Quarter GFY 18

• Source Selection Authority selects source 4th Quarter GFY 18

• Peer Review 1st Quarter GFY 19

• Contract Award 1st Quarter GFY 19

Source Selection Evaluation Milestones

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• Technical (Non-Cost)

– Technical Capability Category

• Management Approach

• Technical Approach

• Resource Capabilities

– Past Performance Category

• Relevancy

• Confidence Assessment

– Technical - Quality of Product

– Schedule

– Management

– Cost Control

• Cost

– Notional work package will be evaluated that represents the work to be performed

Evaluation Factors

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• Technical Capability is more important than Past Performance

– Within Technical Capability, the factors are in descending order of importance: Management Approach, Technical Approach and Resource Capability

• Past Performance is more important than Cost

– Past Performance Category based on the following factors, which are equal in importance: Relevance and Performance Confidence Assessment.

– Within Performance Confidence Assessment, the sub-factors: Technical, Schedule, Management, and Cost Control, are equal in importance

• Cost is the least important Evaluation Category

– Cost Proposal that is unrealistic, unreasonable or unbalanced may be rejected

The importance of Cost as an Evaluation Category will increase as the differences in the Non-Cost Categories among competing proposals decreases

Relative Order of Importance

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• How well the proposal response meets the requirements of the solicitation

• Submit proposals that are complete, clear and consistent in all respects

• Should state brief statement of facts

• Inconsistencies are viewed as weaknesses

• Should stand on its own merits

– Do not assume evaluation team possesses any pre-existing knowledge about your company or its unique business practices

– Technical evaluation team instructed not to include any information or previous knowledge about your organization

• Technical evaluation strictly addresses the merits of each proposal as it relates to the evaluation criteria

Technical Proposal Evaluation

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• Proposals should be organized in accordance with solicitation requirements

• Be judicious in use of inter-document cross-references

– Avoid multiple layers of references from one to section in the document to another

– Cross-referenced matrices can be disorienting and don’t always present a clear picture of what the Offeror is attempting to demonstrate

• Proofread the Proposal

• Unnecessarily complicated, confusing or incomplete proposals makes the review process more time consuming

• Ensure continuity between Technical and Cost Proposals

Technical Proposal Quality

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• Cost realism analysis – FAR 15.305(a)(1)

• Failure to provide the required cost information may render the proposal non-responsive

• Ensure consistency between the Cost and Technical proposals

– Cost proposal needs to represent the technical solution provided in the Offeror’s Technical proposal

– Issues such as work allocation between the Offeror and teaming partners should align in the Cost and Technical proposals

– Inconsistency between the Cost and Technical Volumes will result in an adjustment to the Offeror’s proposed cost

• Direct labor rates will be capped for all five years

• Indirect labor rates will be capped for the first three years

Cost Proposals

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• Historical Actual Experience (actual rates, actual hours, actual material costs to complete the work)

• Binding agreements, which are relevant to the notional work as well as future expected work (Labor Purchase Agreements with subcontractors, Teaming Agreements, etc.)

• Government Audits or Negotiated Agreements with the Government such as Forward Pricing Rate Agreements

• Detailed, auditable engineering or mathematical explanations (when historical experience isn’t available or when future experience is expected to diverge significantly from historical experience)

– These explanations should ideally be based on cost estimating relationships, with all assumptions and supporting data provided

Cost Proposals: Compelling Evidence

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• Information supporting Labor Hour and Material Deviations needs to be:

– Sufficiently related to the work item

– Supported by compelling evidence

• If using historical actuals to support a deviation, provide the previously accomplished work item’s complete cost return data. Don’t “cherry pick information”

• If a new, innovative solution is proposed to justify a deviation, provide compelling evidence of why the innovation should be accepted.

• Subcontractor quotes alone do not support a proposed deviation; they are generally not binding or enforceable

Cost Proposals: Labor Hour and Material Deviations

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• Use templates and ensure all cost data spreadsheets strictly adhere to Section L requirements

• Free of mathematical and formula errors

• To the greatest extent possible, do not include hard entered data with no traceability to formulas

• Efficiency of the cost evaluation is directly related to cost spreadsheet quality

Cost Proposals: Section L Exhibits

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• Allocated across Government fiscal year in accordance with the schedule of maintenance actions

• Escalated based on indices provided in section L of the RFP, unless otherwise justified

• Supported by compelling evidence (Ideally historical actual rates)

• Describe how composite rates are developed

• Fixed price subcontractor quotes must be supported with compelling evidence of their ability to be binding during the execution of the work to be accepted.

• Auditable projected volume of business assumptions

Cost Proposals: Labor Rates

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• Although Cost is the least important of the factors, it still plays a key role in our decision making – especially when differences in Non- Cost categories decrease

• A “slightly” higher technically ranked proposal will not out weigh a significantly higher evaluated cost

• In the past, NAVSEA has unseated incumbents based upon competitive pricing

In order to conduct an efficient source selection process, please ensure to provide any and all back-up data for ALL costs. The more supporting data you provide, the more likely the Government can award based on initial proposals. It will also make the cost analysis process FASTER, leading to an earlier decision!

Why is Cost Important?

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• NAVSEA will post this Industry Day presentation and Questions on the FEDBIZOPPS website

• Industry is invited to provide the Navy comments, concerns or questions. All inquiries shall be directed to Michaella Easley, Contracting Officer, and John E. Anderson, Contract Specialist, at Michaella.Easley@navy.mil and John.Anderson6@navy.mil

• Questions will be treated as “Bidder’s Questions” and all answers will be made publicly available via FEDBIZOPPS website (www.fbo.gov)

• To ensure the Navy is able to adequately consider Industry’s feedback in the upcoming solicitations, it is requested they be submitted no later than 1400 EST on 15 August 2016.

Highlighted Questions

This concludes the end of the presentation.

Thank you