N6264919R0031_3rdFILE.pdf

READY. RESOURCEFUL. RESPONSIVE.

Presented to:

V-22 Industry Day – Contracts Briefing

Presented by:

William Koeditz

Contracting Officer

20 February 2019

Platform Contract # Incumbent Contract End Follow-on RFP*

H-60 N6264913D0001 NIPPI 14 Jun 2019 01 Jun 2017

F-18 N6264917D0008 NIPPI 05 Aug 2019 11 Dec 2017

H-1 N6264914D0021 NIPPI 30 Jun 2019 28 May 2018

C-130 N6264915D0015 AIROD 30 Jun 2020 19 Apr 2019

H-53 N6264915D0014 KAL 31 May 2020 TBD

V-22 N6264916D0002 Subaru 31 Dec 2020 19 Feb 2019

*Future Dates are based on current plans and are subject to change.

H-60

F-18

H-1

C-130

H-53

V-22

Lead Time Acquisition Duration Transition Contract Duration

*Future Dates are based on current plans and are subject to change.

**Acquisition Duration includes pre-solicitation acquisition planning.

Incumbent Contractor is Subaru Corporation.

Multiple Award Contract, potential for 2 or more awardees

Firm-Fixed-Price (FFP), Indefinite-Delivery Indefinite-Quantity (IDIQ)

Scheduled Depot-Level Maintenance and Repair Services

Unscheduled Maintenance and Repair Services:

― In-Service-Repair (ISR)

― Customer Service Requests (CSR)

Potential ordering period up to 10 years.

― Total potential contract term is 10 years after including 6 month transition and up to an additional 6 months ordering period under the option to extend services FAR Clause 52.217-8.

***Need Industry Feedback***

Range determined from Okinawa, Japan.

― Potentially a 1000 miles.

Potentially, the price will be adjusted via a Range Differential to ensure the source selection decision considers the additional costs to the Government associated with flying the aircraft to the Contractor’s facilities.

― CONCEPT: Range Differential will be calculated by applying a step-wise function based on the range (km) from MCAS Iwakuni. The exact formula has not yet been decided, but for example:

― 1 – 500 km: $5,000 per aircraft

― 501 – 1,000 km: $10,000 per aircraft

― 1,001 – 1,500 km: $15,000 per aircraft

― …continue pattern to 12,000 km: $120,000 per aircraft

Pre-Solicitation Site Capability Assessment

― Government may conduct on-site assessment of Contractor.

― Results of Capability Assessment will provide feedback to the potential offeror as to the adequacy of current facilities in order to assist in the decision whether to prepare an offer.

Post-Solicitation Site Evaluation

― Government on-site assessment of proposed facilities as required by the solicitation.

― Must be performed soon after receipt of proposals.

― Results of Site Evaluation will be used in the government’s proposal evaluation to identify the best value offer.

Pre-Award Site Survey

― DCMA assessment of the apparent awardee to assist the PCO’s determination of responsibility.

Government overall source selection strategy:

Best Value Tradeoff, not Lowest Price Technically Acceptable (LPTA)

Separate Technical & Technical Risk Ratings

Past Performance > Technical Risk > Technical > Price

Adequate Price Competition (FAR 15.403-1(c)(1)(i) & FAR 15.404-1(b)(2)(i)) ― Price Analysis based on Comparison of Offers ― Prices adjusted for Range Differential

Only One Offer Received (DFARS 215.371) ― Certified Cost or Pricing Data (DFARS 215.371-3(b)(2)) ― DCMA Field Pricing Assistance (DFARS PGI 215.404-2(a)) ― DCAA Audit (DFARS PGI 215.404-2(c))

NMCARS Annex 5

Barriers to Competition

Place of Performance

Ordering Period

Incentives

CLIN Structure

Source Selection Strategy

Performance Work Statement

Time Event

0800 – 0900 Escort Contractor Attendees Aboard NAF Atsugi

0900 – 0910 Admin Remarks

0910 – 0920 FRCWP Commanding Officer’s Remarks

0920 – 0945 V-22 Mission Overview by 1st Marine Air Wing

0945 – 1010 Planned Maintenance Interval by FRCWP Production

1010 – 1035 The Contract by Fleet Logistics Center Yokosuka

1035 – 1100 Requirements Review by FRCWP Business Operations 1100 – 1200 Lunch

1200 – 1300 Open Forum Q&A

1300 – 1330 Bell Boeing 1-on-1 (Contractor to Government)

1330 – 1400 Erickson Incorporated 1-on-1 (Contractor to Government)

1400 – 1415 Government Break

1415 – 1445 Korean Air 1-on-1 (Contractor to Government)

1445 – 1515 NIPPI Corporation 1-on-1 (Contractor to Government)

1515 – 1545 Subaru Corporation 1-on-1 (Contractor to Government)

Schedule

3/4/2019 1

FRCWP Business Operations Department

V-22 Integrated Maintenance Program (IMP)

Planned Maintenance Interval (PMI)

Requirements Review 3/4/2019 2

To return inducted aircraft to the end-user in a fully restored state per the NAVAIR V-22

PMI Specification, within as rapid a period as possible, and within material and funding constraints.

The Program’s Purpose

3/4/2019 3

A Contract Document

The Performance Work Statement for performing the tasks in the V-22 PMI Specification is a contract document. Together with the Specification, it establishes work the Contractor is required to perform.

The PWS also describes some of the Government’s functions and roles in relation to the V-22 IMP supporting FRCWP. For example, the Government:

Establishes the requirement, provides the induction schedule and funds the work

Provides the aircraft for induction

Revises and adjusts requirements, schedule and funds as required

Provides most of the aircraft repairables, replacement parts and consumables required to complete the scheduled PMI event

Provides Engineering support and guidance to the Contractor Engineers to resolve issues in processes, materials, technical data and other areas as required

Receives the aircraft to perform Functional Check Flight and Acceptance

3/4/2019 4

Performance Standards

The PWS provides the Performance Requirement Standards with minimum levels of acceptable performance for the following:

Delivering aircraft on within the prescribed TAT

Submitting accurate and timely supply requisitions

Meeting aircraft custodian satisfaction

Maintaining a Technical Publication Library

Operating in compliance with Safety, Health, and Environmental requirements

Providing complete, accurate and timely reports

Delivering a quality product

Complying with Government requests for manufacturing or purchases

3/4/2019 5

Acquisition Strategy

Multi-Award Contract

Two Awardees

Best Value Tradeoff

Nominal Workload

2 - 4 MV-22 PMI / Surge to 6 - 8

Performance Period

1-Year Base Contract

6-8 Option Years

3/4/2019 6

Time Event

0800 – 0900 Escort Contractor Attendees Aboard NAF Atsugi

0900 – 0910 Admin Remarks

0910 – 0920 FRCWP Commanding Officer’s Remarks

0920 – 0945 V-22 Mission Overview by 1st Marine Air Wing

0945 – 1010 Planned Maintenance Interval by FRCWP Production

1010 – 1035 The Contract by Fleet Logistics Center Yokosuka

1035 – 1100 Requirements Review by FRCWP Business Operations

1100 – 1200 Lunch 1200 – 1300 Open Forum Q&A

1300 – 1330 Bell Boeing 1-on-1 (Contractor to Government)

1330 – 1400 Erickson Incorporated 1-on-1 (Contractor to Government)

1400 – 1415 Government Break

1415 – 1445 Korean Air 1-on-1 (Contractor to Government)

1445 – 1515 NIPPI Corporation 1-on-1 (Contractor to Government)

1515 – 1545 Subaru Corporation 1-on-1 (Contractor to Government)

Schedule

3/4/2019 7

FRCWP

V-22 Integrated Maintenance Program (IMP)

Planned Maintenance Interval (PMI)

Open Forum Q&A 3/4/2019 8

Fleet Readiness Center Western Pacific (FRCWP) MV-22 Industry Day Questions & Answers

Held 20 February 2019 Naval Air Facility Atsugi, Club Trilogy

1st Marine Air Wing (MAW) Presentation

1) Q: Is the Turn Around Time (TAT) of 365 days being met consistently? If not, what are the challenges with meeting it?

A: No, TAT is not being met. V-22 is a complex airplane with a complex learning curve. There is an added difficulty with foreign contractors and publications (language barrier), and difficulty with getting the materials needed for depot-level maintenance. These difficulties are expected to get better.

2) Q: What is the average number of sorties per aircraft for Marine Air Group (MAG) 36?

A: There are an average 250 sorties/month.

3) Q: The requirement is 10 aircraft over 5 years. Why are all 24 not going through Planned Maintenance Interval (PMI)? What about the capacity required for 4 at a time?

A: Not all aircraft will get to the high flight hours that will warrant PMI. As the Marines ramp up aircraft usage, we will need new aircraft (“new iron”). We are not at the point for 4 aircraft in depot-maintenance yet but there is a potential to reach this requirement, if not more, in the future.

FRCWP Production Presentation

4) Q: Does TAT include additional repair/customer service requests that a squadron asks for?

A: TAT does not start until induction. TAT can be further negotiated on a case-by-case basis, but the TAT stipulated in the Performance Work Statement (PWS) is what the contractor should plan to.

5) Q: What are the average number of Temporary Engineering Instructions (TEIs) the Government sees?

A: The average across the V-22 PMI sites varies due to environments and corrosion. The average seen is 90-100 TEIs per induction for the 1st MAW V-22s.

6) Q: Is there a qualification/standard for composite artisan Double Vacuum Debulk (DVD) repairs?

A: The standard is based on the Cherry Point Local Engineering Specification (LES) that will be provided to Contractor, if possible. However, a Contractor can use their own process if they have one and if it meets the Cherry Point LES.

7) Q: If there is core component damage, does that get repaired or replaced? Have you seen repairs that require a heat blanket repair?

A: Minor core damage can be repaired while major core damage will be cut out and replaced.

Yes, heat blanket repairs will need to be completed.

FCRWP Business Operations Presentation

8) Q: Are the United States Air Force (USAF) and Navy V-22s intended to be brought through

FRCWP/this requirement?

A: USAF will most likely do their own maintenance, but the Government anticipates that the

Navy V-22s will use the FRCWP contract.

Open Forum Q&A

9) Q: Are there certain workforce certification(s) that will be required? If so, can you expand on what types of certifications?

A: Industry-standard qualifications will be required. Something equivalent to the Cherry Point

LES will likely be required.

10) Q: Has the Government considered alternate contract types such as performance-incentive contracts?

A: There is a possibility to have an incentive-type contract. The Government is still exploring that as a possibility. There may be a need for it and will explore further.

11) Q: Will support equipment be provided as Government Furnished Equipment (GFE)?

A: The current plan is for the Government to provide support equipment, but the Acquisition

Strategy is still being developed. Potentially, if the Contractor provides their own support equipment, it may qualify as a “strength” in their proposal. Ideally, the Government would like to have the Contractor(s) bring support equipment to the table.

12) Q: When is the contract expected to be awarded?

A: The Request for Proposal (RFP) is scheduled to be released in the September-October 2019 timeframe with contract award estimated in September-October 2020.

13) Q: When is the follow-on contract expected to start? Will there be a transition time built in?

A: The contract is expected to start roughly September-Oct 2020. Yes, a transition time will be built in. Awardees without V-22 depot-level experience will have a 6-12 month ramp up time.

Transition time may be shorter if an awardee has previous experience with depot-level maintenance on V-22s.

14) Q: Are there any training courses that are required that the Contractor would need to completed in Japan?

A: Most training would be conducted within the contiguous United States (CONUS), however, some training could be provided at the Contractor’s facility, Naval Air Facility (NAF) Atsugi, Marine Corps Air Station (MCAS) Iwakuni or in Okinawa.

15) Q: Other than inspections, are there other Technical Directives (TDs) and Local Engineering

Specifications (LES) that can be expected?

A: Yes. Incorporation of TDs and LES’ required for a tail number will be an aspect of the PWS and included in each Task Order.

1-on-1 Meetings

16) Q: Is the plan to award to 2 or more Contractors?

A: Yes. A Multi-Award Contract (MAC) Indefinite Delivery/Indefinite Quantity (ID/IQ) allows the

Government to award to multiple contractors for one requirement in order to meet potential surge requirements for V-22 maintenance.

17) Q: Was a “ramp up” time give to the current Contractor in order to prepare for the start of contract performance?

A: The current contractor was given one (1) year of training and ramp-up time.

18) Q: Will the USAF V-22 be a part of this requirement?

A: The USAF will most likely not be a part of this requirement, however the US Navy V-22 is a possibility.

19) Q: Is the US Government looking to include the future Japanese V-22 in this contract?

A: The Japanese Ministry of Defense will make the decision for who will perform maintenance on their aircraft.

20) Q: Is it the Government’s intent to have two contractors working at same time?

A: Yes that is our intent. The Government anticipates two depot-level maintenance lines will be up and running at same time due to long TAT and surge capacity requirement.

21) Q: Is the Government considering a small-business set-aside?

A: No.

22) Q: Will this requirement be for MAG-24 or MAG-36?

A: It is primarily for MAG-36. There is a potential for adding US Navy V-22s in future.

23) Q: There are currently fifty-two (52) V-22 deployed in the region. Will the aircraft in Hawaii undergo PMI repairs under this contract?

A: This contract is primarily for MAG-36. However, PMI work may be performed on any V-22 aircraft that are deployed to Japan.

24) Q: Does a private company perform the PMI repairs in Hawaii?

A: The US Government performs PMI repairs.

25) Q: Does the current contract include work-stops for holidays?

A: Yes, the current contract includes a clause for holidays. Each Task Order includes designated holidays.

26) Q: Is the anticipated TAT of 365 days consistent with CONUS PMI work?

A: The actual TAT that will be specified in the RFP may be different that 365 days. The

Government will have a better idea once the new V-22 specification is released.

27) Q: How much man-hours are expended per PMI aircraft in Cherry Point?

A: Average man-hours ranges from 6000 hours to 7000 man hours per aircraft..

28) Q: Will the Contractor be granted expanded responsibility/authority to aid in decreasing the PMI cycle time?

A: The Government encourages continuous process improvements (CPIs) within the confines of the ID/IQ.

29) Q: Does the TAT include functional check flight(s)?

A: Yes, it will be included in total TAT.

30) Q: Should the costs for preparation, training, and ramp up efforts be incorporated in our contract proposal?

A: The Contractor has discretion on how to propose the costs incurred for this requirement. The

Government welcomes suggestions on how to develop the Contract Line Item Number (CLIN) structure.

31) Q: Is there an opportunity to provide feedback about the CLIN structure?

A: Yes, The Government welcomes suggestions on how to develop the Contract Line Item

Number (CLIN) structure prior to release of the final RFP.

32) Q: Just to clarify, the current contract ends Dec 2020 and the anticipated award is Sep-Nov

2020?

A: Yes, the plan is to award the follow-on contract before the end of current one in order to allow for a transition period.

33) Q: How would the aircraft stationed in Hawaii get to Japan?

A: Via boat.

34) Q: Does the depot stateside man hour average include corrosion work?

A: Yes.

35) Q: Is the work schedule built around the US holiday schedule?

A: The contract will designate holidays relevant to the country where the work will be performed.

36) Q: Is there any political support for using US Government facilities in Japan? Is there an opportunity to use Camp Kisarazu? Is Iwakuni able to accommodate part of this requirement?

A: FRCWP is unaware of US political conversations about this topic. Additional facilities at Camp

Kisarazu are not currently being offered and MCAS Iwakuni cannot accommodate this requirement. The Government requirement is to use Contractor(s) provided facilities.

37) Q: How many days and people are needed to implement an initial evaluation and estimation per a PMI aircraft in Cherry Point?

A: On average, 5-10 people work on an aircraft and 10-15 days are typically given for the initial evaluation and estimate write-up. However, in general, the Contractor has discretion to develop its workforce as you think you will need to meet the requirement. The Government welcomes feedback on this topic.

38) Q: What is Camp Kisarazu?

A: Camp Kisarazu is location in Japan where the current MV-22 PMI contract is being performed by Subaru.

39) Q: Since Camp Kisarazu has limited space to hold V-22 aircraft, is that why this requirement is intended to award to multiple Contractors?

A: Yes, it is one aspect of the acquisition strategy.

40) Q: If there are multiple awardees for this contract, would they all be prime contractors?

A: Yes, all awardees would be independent prime contractors.

41) Q: How many places are PMI maintenance implemented in the US and other countries?

A: Three (3) locations for USMC MV-22 and two (2) locations for USAF CV-22.

42) Q: Is the new TAT of 365 days official? How was is decided?

A: No, this is not the official TAT. Once the new specification is released, an updated TAT will be determined and documented in the PWS. The USMC strongly desires a TAT of 365 days.

43) Q: How many people (mechanics, inspectors, engineers, etc.) are engaged in the PMI maintenance?

A: The amount of work required affects the number of people used, so it is hard to give a specific number of people per aircraft since the repairs will be different for every aircraft. In general, the Contractor has discretion to develop its workforce as you think you will need to meet the requirement.

44) Q: Can you advise on the average number of man hours required for stateside PMI work?

A: Presently, stateside PMI ranges are 6,000-7,000 man hours and roughly 350 days per aircraft, but it is expected that this will increase with the release of the new V-22 specification.

45) Q: How many days are spent for PMI maintenance per aircraft in Cherry Point? We heard some aircraft that spend more than a year.

A: Presently, stateside PMI ranges are 6,000-7,000 man hours and roughly 350 days per aircraft, but it is expected that this will increase with the release of the new V-22 specification.

46) Q: How do you plan to separate the workload if there are two or more awardees?

A: The plan is to give each awardee a minimum number of aircraft for PMI work and then distribute the additional work based on quality, capacity, and schedule.

47) Q: How many discrepancy sheets are issued per PMI aircraft in Cherry Point?

A: The Government will research this question and make a determination if the response is releasable.

48) Q: Please advise us about the definition of ISR and Customer service.

A:

- In-service repair (ISR): is for any other services for aircraft and aircraft component/part repairs, corrosion control, rework, drop-in repair, manufacturing parts, management of radioactive material and other similar work which are outside the scope of V-22 PMI

Specification.

- Customer Service - Customer Service Work Requests may be placed for Depot Customer

Service to provide direct support to Naval Aviation activities on technical and maintenance tasks, which supplement or are beyond the capability of organization or intermediate level maintenance.

49) Q: Please advise us about the specific example of Customer Service and the place of the implementation.

A: The Government will research this question and make a determination if the response is releasable.

50) Q: Please advise us about the evaluation criteria for the follow-on PMI contract.

A: The Government will release this information as soon as possible, but no later than the final

RFP.

51) Q: How many V-22 aircraft undergo PMI each year stateside?

A: Over 30 per year are inducted stateside.