N0018918R0007_Crane_3PL_Industry_Day_Slides_11.17.17.pptx

3rd Party Logistics (3PL) Industry Day Hosted by: NAVFAC Mid-Atlantic & PWD Crane November 17, 2017

Agenda 0800: Introductions & Presentation 0900: Break & Submit Questions 0930: Conduct First Q&A 1000: Shop Store Tour – BLDG 56 1030: Shop Store Tour – BLDG 2713 1100: Tour Break & Submit Questions 1145: Final Q&A & Closing Statement

Mission Statement NAVFAC is the Naval Shore and Expeditionary Systems Command that plans, builds, and maintains sustainable facilities, delivers environmental, utilities, and other base services, and acquires and manages expeditionary combat force systems and equipment.

Purpose Public Works (PW) Mechanics need material to perform work Material receipt needs to be Timely and Cost Effective

Public Works has 3 primary Business (Product) Lines Maintenance (FM&S) Utilities Transportation

Previous 3PL contract only supplied single product line, Maintenance (FM&S). New contract will have 2 additional product lines, Utilities (UM) and Transportation (TR).

Supported Locations A 3PL contract exists at Public Works Department, Crane, IN Two Stores:

Main Store at Building 56 Approximately 7,000 sqft Transportation Store at Building 2713 Approximately 2,000 sqft

NAVFAC Currently working with our reallocation processes to provide the new, more optimal, space.

Space Allocation New Spaces being designated within the shop areas to house the shop store Footprint varies by base Exact space allocation will be provided

Requirement Need a logistics and materials management company that can provide material to mechanics in time to meet customer requirements at a beneficial cost point

PWS Overview

Mechanics complete work orders for customers and must meet specific metrics for work, E/U/R.

Need a logistics and materials management company that can get the material to the mechanic in time to allow them to meet their metrics.

Previous 3PL contract only supplied single product line, Maintenance (FM&S). New contract will have 2 additional product lines, Utilities Services (UM) and Transportation (TR).

Objective Timely:

Customer Service is the center of our business Mechanics must be able to receive materials in order to maintain customer service standards Cost Effective:

Price must be reasonable and on point with other government sources Goal:

Mechanic walks in to shop store, leaves with needed material 95% of the time!

Goal: Stock List Material

Delivery Requirements Items on the Stock List shall be readily available on the shelf 15 minutes into and out of the shop store with the materials Never Out List Items shall not have an empty bin Contractor shall provide never out list items within 1 hour if not in stock Non-Stock or Not in Stock (NIS) Delivery time frames based on priority code

Delivery is to various locations within the base facility

Estimated Annual Sales* Total Estimate (5 year contract) $ 32.5M

Estimate Based on all product lines FY16 material purchases

Estimated Annual Sales

PWS Updates

8.6 - Deleted (Government Provided Shelving)

8.7 - MHE is the responsibility of the contractor If reasonable, arrangements can be made between the contractor, shop supervisors, and on site COR/ACOR for shared use of government equipment, the contractor may utilize gov’t owned MHE.

9.2 - The AUL is a living document identifiable to the specific work centers. The approved General Use List (GUL) has been provided until the AUL has been updated.

9.4.2 - The contractor shall be responsible for ensuring that all certification requirements set forth in the PWS are met

Materials Team Initiative 3 Positions within Material Support Team

NAVFAC Material Technician Generates Purchase Request (PR), sends to FLC Buyer

FLC Dedicated Buyer Reviews and Approves PR, Creates PO

3PL Contractor Provides Material to the Mechanic Stages material for pickup as necessary Prints invoice of material being released and has receiver sign Provides signed invoice to FLC Buyer

Gov’t owned PPE

Lessons Learned Supply Chain Program Challenges

Proper Inventory Management Contractor/Government Relationships Space Allocation Proper Price Point Management Material Delivery Requirements Internal process to meet government regulations

Lessons Learned Proper Inventory Management (Catalog) The ability to effectively manage the materials maintained in stock and maintain adequate quantities.

Added Never Out List Clearly Defined Test Market Basket Add/Change/Remove Process Contractor has 5 days to respond to an add/change/remove request through stocking materials, or through written notification to the shop and the COR with statement of reason.

Contractor/Government Relationships and Oversight Material Support Team Initiative – one team, one fight mentality Designating on site ACOR.

Space Allocation

Price Point

Material Delivery

Internal Process

Third Party Logistics (3PL) Support

Contracting Overview, Tentative Source Selection and Key Contract Requirements

Herbert Hankins, Contracting Officer NAVSUP Fleet Logistics Center Norfolk

November 17, 2017

Any correspondence pertaining to this acquisition, to include questions arising from this industry day event, should be directed to the below NAVSUP FLCN points of contact:

FLCN Points of Contact are:

Contracting Officer Mr. Herbert Hankins, 757-443-1375 Herbert.hankins@navy.mil

Contract Specialist Mr. David Crouch, 757-443-1397 David.w.crouch@navy.mil

Contracting Overview

Projected Milestones 30 November 2017 – Finalize Market Research in response to Request for Information/Industry Day

22 December 2017 – Request for Proposal (RFP) Published

02 February 2018 – Proposals Due

09 July 2018 – Award of Contract

09 August 2018 – Full Performance Begins

NOTE: All dates are approximate and subject to change

The RFP, attachments, and any amendments will be published on the Federal Business Opportunities website (www.fedbizopps.com ) and the NECO web site (www.neco.navy.mil).

Separate emails/notifications will not be sent.

Nothing stated during this Industry Day or contained in any of the documents provided will qualify the terms and conditions of the RFP.

The RFP is currently being developed and no final decisions have been made.

Key Points

Tentative Acquisition Strategy

Anticipated NAICS:

336320, Motor Vehicle Electrical and Electronic Equipment Manufacturing Size Standard: Number of Employees - 1,000

Type of Contract: Firm Fixed Price (FFP)

Single Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract.

Term of Contract: Five Year Ordering Period

Established Discount Rates per Commodity Group:

Automotive Building Electrical Heating, ventilation, air conditioning, and refrigeration Material handling equipment Plumbing Other

The Government’s tentative source selection criteria to be used in the evaluation of offers for this procurement is as follows:

Non-Price Proposal: The Non-Price Proposal is more important than the Price Proposal and consists of the below factors.

Factor 1 – Technical Sub-Factor 1 – Transition Approach Sub-Factor 2 – Management/Operation Approach Sub-Factor 3 – Quality Control Plan Factor 2 – Past Performance

Price Proposal:

Completed Test Market Basket Material Price Worksheet – Proposed discounts per Commodity Group Copy of proposed catalogs (commercial price list, GSA, and/or DLA contracts)

Tentative Source Selection

Product line affordability

Delivery timelines

Quality control - The Contractor shall implement and modify, as necessary, the procedures specified within their Quality Control Plan (deliverable) to ensure the provision of services that will produce the desired outcomes and result in performance of work within the required standards.

Key Contract Requirements

Feedback on the tentative acquisition strategy, contract type and structure

Recommendations that will result in lower prices and faster delivery

Innovative approaches or business models that could be leveraged

Capabilities Statement Due 28 November 2017

Capabilities Statements

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