19R3009_MARKET_SURVEY_Amend__2.rtf

MARKETSURVEY

Subject: OPERATE AND MAINTAIN EIGHT (8) LARGE, MEDIUM-SPEED, ROLL-ON/ROLL-OFF VESSELS (LMSRs).

THIS IS A REQUEST FOR INFORMATION ONLY AND YOUR RESPONSE IS NOT AN OFFER. THIS REQUEST FOR INFORMATION DOES NOT COMMIT THE GOVERNMENT TO PAY ANY COSTS INCURRED IN PREPARATION OF ANY SUBMISSION TO THIS MARKET SURVEY, OR TO CONTRACT FOR SERVICES.

SCOPE OF WORK/MISSION:

This survey is for the Contractor to operate and maintain eight (8) Large, Medium-Speed, Roll-On/Roll-Off vessels (LMSRs). The Army Prepositioning Ships (APS) vessels, USNS RED CLOUD, USNS CHARLTON, USNS WATKINS, USNS WATSON, and USNS SODERMAN, are employed in the worldwide prepositioning of Government cargo, including but not limited to: hazardous, explosive/ammunition, vehicular, bulk, and general cargoes. USNS DAHL and USNS SISLER are Marine Corps LMSRs (MPF) have a slightly different configuration in support of mission requirements specific to the United States Marine Corps and have NAVAIR certified flight decks. USNS POMEROY is currently in a reduced operating status (ROS)-5 (Days) assigned to the MSC Surge Sealift program in Continental United States (CONUS). The ships may also be used for other Government missions, or in the absence of a defined mission, may be placed in ROS as directed. The ships shall be operated in a professional manner, maintained in good condition, and shall be mission-ready at all times.

Government-Owned Contractor Operated ships are operated by a company under contract to MSC and manned by Contract Mariners (CONMARs) crew members who are Contractor employees. The operating company is contractually obligated to provide ship maintenance. The Contractor shall operate the ships and related ship systems and equipment in accordance with (IAW) U.S. Coast Guard (USCG) and the American Bureau of Shipping (ABS) rules and regulations that would apply as if it is owned by a non-government entity, which includes but is not limited to maintaining a valid USCG Certificate of Inspection and ABS Classifications (including all statutory certificates) at all times. At contract performance commencement and throughout the performance period of this contract, it is anticipated that all of the ships will be in Full Operating Status (FOS) except as noted below. The ships will return to CONUS approximately every three (3) years for maintenance of cargo and overhaul. During these cargo maintenance and ship overhaul periods, the Government may direct ships to be placed into a ROS status. Anticipated Operating Tempo (OPTEMPO) is described below.

During the contract performance period the Government estimates that the ships will spend the majority of the time fully manned in FOS status, with the exception of WATSON that will primarily be in a ROS status. Actual in port and underway percentages may vary. Underway periods consist of, but are not limited to, independent steaming, convoy operations and transits to/from selected ports for vessel and cargo maintenance or for the loading/discharging of cargo.

The ships and the cargoes are designed for worldwide, extended independent underway operations in remote geographic locations. Therefore, self-sufficiency in operations and maintenance is an important mission requirement. For planning purposes and without guarantee, the Government anticipates prepositioning three of the vessels in the Indian Ocean (Diego Garcia- Squadron 2) and four of the vessels in the Western Pacific (Guam/Saipan or Korea) – Squadron 3.

A draft Performance Work Statement (PWS) for the WATSON class requirement was posted to www.FedBizOpps.gov on 12 July 2018 for industry comment at the following link: https://www.fbo.gov/notices/1e40b241eeeeb9d5cfb540cba43b6b2a" https://www.fbo.gov/notices/1e40b241eeeeb9d5cfb540cba43b6b2a.

f. An industry day has been planned by MSC. The focus of the industry day is to discuss the standardized performance work statement (PWS) that MSC plans to use for future vessel operating and maintenance solicitations, including the USNS WATSON class requirement. Additional information regarding the industry day has been posted to FBO at the following link: https://www.fbo.gov/notices/32297112be5633aa916732f76a85653e

Deviations from projected ship locations shall not be the basis for adjustment to the contract price.

Normal OPTEMPO for each ship in FOS is based on its prepositioning location:

Table 1:

LOCATION

INPORT (anchor or pier) side)

UNDERWAY

Army LMSRs Indian Ocean 86 % 14% Army LMSRs Western Pacific 83% 17% Marine Corps LMSRs Worldwide 92% 8%

Actual OPTEMPO may vary for any of the ships. Operational commitments may warrant deviation from this estimate.

REQUIRED CAPABILITIES: The Government requires contractor support that meets the following minimum requirements:

CONTRACT STYLE: Firm-Fixed Price (FFP) award fee contract with reimbursable elements for the operation and maintenance of the vessels. Reimbursable elements include port charges, maintenance & repair (M&R), non-watch overtime, fuel, costs associated with ship availabilities, and Government directed alterations/work.

PERFORMANCE PERIOD: Five-year contract if all options are exercised (one firm 12-month period with four 12-month option periods).

COMMENCEMENT: Contract performance will commence on 01 Apr 2020.

Anticipated North American Industry Classification System (NAICS) Code: The NAICS Code for this requirement is 483111 – Deep Sea Freight Transportation and the Small Business Administration (SBA) small business size standard is 500 employees.

i. Name of company;

ii. POC, Telephone Number, Address, and e-mail address;

iii. Contractor and Government Entity (CAGE) Code;

iv. Size of business - Large Business, Small Business, 8(a), Historically Under-utilized Business Zones (HUBZone), Women-owned and/or Service-Disabled Veteran-owned;

Note: The Government is still determining the acquisition strategy and if this acquisition will be a small business set-aside, then FAR clause 52.219-14, Limitations on Subcontracting, applies. Note that if there is sufficient demonstrated interest and capability among small businesses, a key factor in determining if an acquisition will be a small business set-aside is that two or more potential small business prime contractors must be capable of performing at least 50% of the effort, as defined in FAR clause 52.219-14.

If it is determined that a small business set-aside is appropriate and your company anticipates submitting a proposal as the prime contractor for a small business set-aside, please provide specific details and rationale as to how compliance with FAR clause 52.219-14 would be achieved, including specific details regarding teaming arrangements, and if subcontracts are to be used, provide anticipated percentage of the effort to be subcontracted and whether small or large business subcontractors will be used. Teaming and/or subcontracting arrangements should be clearly delineated and previous experience in teaming must be provided.

v. Demonstrate Facility Clearance at the time of market survey submission or provide a plan on the ability to obtain a Facility Clearance by time of proposal submission; and

vi. Brief summary of company’s ability to retain and manage the performance of the Key Shoreside staff, which will include at a minimum:

Table 2:

Key Shore Side Personnel Quantity Program Manager Engineering Manager Life Cycle Manager Port Captain Contract Administrator Crewing and Training Manager Purchasing Manager Property Control Manager Purchasing Agent (Buyer) Port Engineer 1 per ship Travel and Placement Manager Assistant Port Engineer

vii. Any pertinent questions/concerns.

Operating Hire Information: Please submit per diem pricing in the format presented in Table 2 below. Daily cost of operating the WATSON Class (vessels and all equipment) per vessel, is to include all crew and regulatory costs.; Please note any Exclusions or exceptions.

Daily cost shall be priced based on the following:

-Full Operating Status (FOS) Per Diem. The proposed per diem rates shall include a two-day on board turnover period when replacing shipboard key billets. The contractor’s firm-fixed-price FOS per diem rates shall include the full wages and fringe benefits for each crewmember for a twelve-hour workday, seven days per week (84 hours per week per person), and 365 days per year (including all holidays). In addition, any overtime incurred for the purpose of maintaining required “watches” shall be part of the firm-fixed-price per diem. This includes the routine gangway watch, also referred to as the gangway security watch, which includes roving patrol duties. With the exception of OCONUS travel, all crew travel costs shall be at Contractor’s expense and shall not be reimbursed by the Government. These travel costs include, but are not limited to costs related to crew rotation and MSC required training.

-Reduced Operating Status (ROS-5) Per Diem. The ROS-5 per diem rates provided under this contract shall be payable at the applicable, fully burdened per diem rates stipulated in the Section B rate schedule. The ship shall be fully manned by the ROS-5 crew ten hours per day, five days a week (Monday through Friday) except for those Federal Holidays specified in the Contract. The firm fixed price per diem rates should also include a two-day on board turnover period when replacing shipboard key billets. Firm-fixed price per diem rates shall also include the full wages and fringe benefits for one Officer to be retained on the ship evenings, holidays and weekends to fulfill security requirements while the vessel is in a non-FOS state. Firm fixed price per diem payment shall be considered payment in full for all ROS-5 services, equipment, supplies, operation and maintenance of the ship and Government equipment, and all contractor personnel under this contract, including but not limited to all penalty time, bonuses, payments and emoluments payable to contractor personnel for services under this contract. The ship shall be fully manned during normal working hours. Gangway security-watch overtime, when required, will be reimbursed with Contracting Officer approval and therefore should not be included in the firm-fixed-price per diem. All crew travel costs, including those related to crew rotation and MSC required training, shall be at Contractor’s expense.

-Repair Availability (RAV) Per Diem. The RAV per diem rates provided under this contract shall be payable at the applicable, fully burdened per diem rates stipulated in the Section B rate schedule. The contractor’s firm-fixed-price RAV per diem rates shall include full wages and fringe benefits for each crewmember for an eight-hour workday, seven days per week (including all holidays). The proposed per diem rates shall also include the full wages and fringe benefits for one Officer to be retained on the ship during evenings, holidays and weekends to fulfill security requirements. The ship shall be manned by the RAV crew during shipyard work hours. Per diem payment shall be considered payment in full for all RAV services, equipment, supplies, operation and maintenance of the ship and Government equipment, and all contractor personnel under this contract, including but not limited to all penalty time, bonuses, payments and emoluments payable to contractor personnel for services under this contract. If shipyard work hours exceed 8 hours per day, overtime will be reimbursed in accordance with Section C-1.7.14.4.2 (Overtime as Reimbursable Cost). It is the Government’s intent that the crew will reside onboard the vessel for the duration of the shipyard availability unless the Contracting Officer approves shoreside accommodations due to special circumstances. All crew travel costs, including those related to crew rotation and MSC required training, shall be paid by the Contractor and will not be reimbursed by the Government.

Financial Viability Information: Furnish evidence (audited and certified financial statement which shall include a balance sheet, profit and loss statement and a cash flow statement, or a letter of credit) of adequate financial resources to perform the contract or the ability to obtain such resources. For the purpose of this section, adequate financial resources would be an amount equal to the total value of 45 days of per diem payments (for calculation, use the current incumbent’s per diem FOS rate of $24,427.33)) for eight vessels in FOS, plus the necessary resources to conduct two major availabilities within a 12-month period (estimated at $20,000,000 each based on actually total cost returns from recent LMSR vessel availabilities). Adequate financial resources are $48,793,838.80 based on the calculations in Table 3 below:

Table 3:

FOS Per Diem Qty Total

CHARLESTON

$ 24,427.33 45 days $ 1,099,229.85

DAHL

$ 24,427.33 45 days $ 1,099,229.85

POMROY

$ 24,427.33 45 days $ 1,099,229.85

WATSON

$ 24,427.33 45 days $ 1,099,229.85

SODERMAN

$ 24,427.33 45 days $ 1,099,229.85

SISLER

$ 24,427.33 45 days $ 1,099,229.85

RED CLOUD

$ 24,427.33 45 days $ 1,099,229.85

WATKINS

$ 24,427.33 45 days $ 1,099,229.85

Availability $ 20,000,000.00

2 EA

$ 40,000,000.00 Grand Total $ 48,793,838.80

Past Performance / Experience Information:

i. Brief summary of company’s history relative to similar requirements or company’s ability to meet the above requirements;

ii. Brief summary of company’s experience that details at least a minimum of three years' experience operating ships greater than 4,500 DWT and more than 11,500 HP;

iii. Brief summary of company’s experience operating two or more ships greater than 4,500 DWT and more than 11,500 HP simultaneously;

iv. Brief summary of at least three vessel dry dockings that the company has planned and executed with final costs returns of over $15,000,000 (including shipyard value and additional support purchase orders) per vessel dry docking and lasting each 60 days or longer; and

v. Brief summary that demonstrates company’s experience operating large vessels (ships greater than 4,500 DWT and more than 11,500 HP) in remote locations with limited local industrial support immediately available.

7. It is requested that the above information be provided no later than 1000 hours, local time Norfolk, VA, on 06 NOV 2018. The points of contact for this action are James Wood (757-443-3974) and Robert McDermott (757-443-5963). Responses should be sent via email to james.wood4@navy.mil and robert.mcdermott1@navy.mil. Documentation of capabilities must be presented in sufficient detail for the Government to determine that your company possesses the necessary functional area expertise and experience to compete for this acquisition. Submissions are not to exceed five (5) typewritten pages in no less than 12 font size. Note: Evidence of financial viability (audited and certified financial statement which shall include a balance sheet, profit and loss statement and a cash flow statement, or a letter of credit) will not be counted toward the five-page limit.

Proprietary information should be clearly marked. The requested information is for planning and market research purposes only and will not be publicly released. This is not a request for a proposal. Please note the information within this survey will be updated and/or may change prior to an official synopsis/solicitation, if any. The Government has not made a commitment to procure any of the requirements discussed, and release of this market survey should not be construed as such a commitment or as authorization to incur cost for which reimbursement would be required or sought. All submissions become Government property and will not be returned.

Table 4: Pricing Information

FOS

ROS

RAV

Base Period (12 months)

Option Period 1 (12 Months)

Option Period 2 (12 Months)

Option Period 3 (12 Months)

Option Period 4 (12 Months)

Table 5: Manning requirements

BILLET

FOS

ROS-5

RAV

Deck Department

Master* Chief Mate* (day worker) 2nd Mate 3rd Mate AB/Bosun Able Seamen Ordinary Seamen

GUDE

Total Deck Department

Engine Department

Chief Engineer*

1st Assistant Engineer* (day worker) 1st Assistant Engineer* (Deck Maint) 2nd Assistant Engineer 3rd Assistant Engineer Electronics Officer Storekeeper* QMED/Electrician

QMED

WIPER

Total Engine Department

Steward Department

Steward/Baker

Chief Cook Steward’s Assistant Total Steward Department

Total Manning *Key Shipboard personnel