24_April_19_448_SCCI_OTA_Industry_Day.pptx

Supply Chain Consortium Initiative (SCCI) Industry Day 24 April 2019

Parts on the Shelf and Contracts in Place 448th Supply Chain Management Wing

Administrative Information

Welcome

448 SCMW

AFSC/PK

Mission Video

Why We Are Here Follow on to “Rapid DMSMS Risk and Obsolescence Solutions Request for Info posted 9 Oct 18 Collect Feedback and “Lessons Learned” from Industry for future 448 SCMW Supply Chain Consortium Initiative (SCCI) via an Other Transaction Authority (OTA) arrangement Intent: Find a Consortium Manager for the 448 SCMW SCCI via an OTA arrangement

Mission Briefing

Mr. Jeff Slayton, Director Special Programs, Strategy, and Policy

24 April 2019

3,000 Civilian & Military Personnel Across the Enterprise

Mountain Central Eastern

Our Business Single Air Force Wholesale Supply Chain Management Wing Plan, Source and Execute Repairable Spares Requirement $7.8B Annual Budget Authority 102,000 Items Managed with an Inventory Value at $53.4B 50 International Partners with an Annual Program Value at $450M

Aircraft Structural and Avionics Landing Gear Secondary Power Intercontinental Ballistic Missile Space & Command, Control, Communications & Intelligence

APT T-X

F-35 Enterprise Support for Performance Management, Business Processes & Procedures Data Sciences & Analysis Budget Supply Chain Planning Strategic Sourcing Workforce Development Supply Chain Operations Support Foreign Military Sales Aircraft Accessories Instruments Aircraft Structures Propulsion

KC-46

B-21

Common Avionics Electronics Warfare Special Operations Forces/Personnel Recovery Support Equipment Auto. Test Systems & Vehicles Armament Global Hawk

748th Supply Chain Management Group Hill Air Force Base, Utah 948th Supply Chain Management Group Tinker Air Force Base, Oklahoma 848th Supply Chain Management Group Tinker Air Force Base, Oklahoma 638th Supply Chain Management Group Robins Air Force Base, Georgia

Scope of Supply Chain

Sustainment and support of critical items associated with the nation’s nuclear enterprise:

Intercontinental Ballistic Missile (ICBM) Air-Launched Cruise Missile (ALCM) Nuclear Command, Control, and Communications (NC3) Ground Based Strategic Deterrent (GBSD) Launch Control Center (LCC) Launch Facility (LF)

Sustaining the Nuclear Enterprise

Proactively Put Spares in the Pipeline

Increase Parts in the Network

F-16 MC80 Initiative Proactive Demand Planning Deliberate Supply Planning Wholesale Retail Flight Line Increase Stock & Safety Level Responsive Distribution Target Commodities Improve Depot Throughput

ALC

ALC

ALC

Effects More Aircraft Available For Missions Measure Performance & Benefits at All Levels Plan, Respond, Review, and Replan to Improve Results Increase Immediate Issues/Lower MICAPS

Challenges

Aging Weapon Systems

Transition Weapon Systems

Small Fleet

Artificial Intelligence Responsive Resilient Supply Chain

Way Forward

Gov’t/Academia/Industry

PARTNERS

Summary

Broad Mission Spectrum Diverse Fleet Sustaining Aging Weapon Systems Activating New Workload Emergence of New Technology Industrial Based Challenges Fiscal, Regulatory, and Statutory Environment

The Supply Chain Delivers …

Introduction to Other Transaction Authority

OTA History 1958: NASA granted first authority to use OTs 1989: DARPA granted OTs for Research 1994: DARPA granted OTs for Prototype Projects 1995 – 2014: Authority granted to 11 other Agencies 2016: OTs permanently codified in 10 USC 2371b 2017: Public Law 115-91 §864 expanded authority for Other Transactions for Prototype Projects (10 USC 2371b) OTA Types Other Transactions for Prototype Projects (10 USC 2371b) Provide a direct benefit to the DoD Considered Acquisition Instruments Other Transactions for Research (10 USC 2371) Provide stimulation or support of research Technology Investment Agreements (TIAs) Procurement for Experimental Purposes (10 USC 2373) Experimentation and test purposes FAR applies when purchases are made in quantity History & Types

Public law also added other relevant information – nontraditional definition. FY18 NDAA established preference for OTAs for S&T activities

Common OTA Models Direct OTA

Direct Award Custom Terms Direct Payment May Require More USG Resources to Administer/Manage Possible increased lead times Solicitation (i.e. BAA or program specific)

Consortium Model

Projects Awarded to Consortium Manager Custom Terms & Flow-Downs Payment to Consortium Consortium Acts as Mentor to Non-Traditional Firms Publicizes Projects to Consortia Integrates Ecosystem Capabilities Administrative Fee Allows Non-Traditional Vendor to Focus on Performance vs. Paperwork

What is an Other Transaction?

What is an Other Transaction:

A legally binding agreement other than a Procurement Contract, Grant, or Cooperative Agreement OTA Authority is delegated from SAF/AQ to the MAJCOMs and then to the individual organization OT Benefits Flexible Terms and Conditions that can be Tailored Reduce Impediments for Nontraditional Contractors Access to New and Emerging Technology Defined by what it is NOT:

Not a Procurement Contract Generally not subject to Federal Laws and Regulations Federal Acquisition Regulations (FAR) does not apply.

FAR Supplements do not apply i.e. DFARs, AFFARs Not a Grant, or Cooperative Agreement DoD Grants and Agreements Regulations (DoDGARS) does not apply.

Applicable Laws and Regulations What DOES apply:

Fiscal Law Agency Fiscal Regulations Apply – Consult Legal and Comptroller Anti-Deficiency Act (ADA) Property Law Procurement Integrity Act Award to a Legal Entity:

Single Company, Joint Venture, Partnership, Consortium, or a Prime Contractor with Subcontract relationships Price Reasonableness Exhaust all other means before requesting cost information What DOES NOT apply?

Truth In Negotiations Act (TINA) Cost Accounting Standards (CAS) Competition in Contracting Act (CICA) Bayh-Dole Act Contract Disputes Act (CDA) GAO Protests Agency-Level Protests and U.S. Court of Federal Claims are applicable

Use of OT authority does not eliminate the applicability of all Laws and Regulations. Consult legal counsel whenever an OT is used!

Appropriate Use of Authority 10 U.S. Code § 2371b.- Authority of the Department of Defense to carry out certain prototype projects Carry out prototype projects that are directly relevant to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the Department of Defense, or to improvement of platforms, systems, components, or materials in use by the armed forces.

Appropriate Use of Authority Cont.

Per 10 USC 2371b(d), an OTA may be used when at least one of the following apply:

At least one Nontraditional Defense Contractor or nonprofit research institute participating to a significant extent in the prototype project, or

All Significant Participants in the transaction other than the Federal Government are Small Businesses (including those participating in a program described under section 9 of the Small Business Act (15 USC 638) or Nontraditional Defense Contractors, or

A Cost Share of at least 1/3 of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government, or

The Senior Procurement Executive for the agency determines in writing that exceptional circumstances justify the use of a transaction.

Nontraditional Involvement What is a Nontraditional Defense Contractor:

An entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation, any contract or subcontract for DoD that is subject to full coverage under the Cost Accounting Standards (10 U.S.C. §2302(9)).

What is Significant Participation (Key Participant):

Supplying New Key Technology or products Accomplishing a Significant Amount of the effort Causing a Material Reduction in the cost or schedule or increase in performance

Small Business (e)(2) The term “small business” means a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).

(a)(1) IN GENERAL.—For the purposes of this Act, a small-business concern shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation.

North American Industry Classification System- The standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors.

What is a Cost Share:

At least one third of the total cost of the prototype project is to be paid out of funds provided by the parties to the transaction other than the Federal Government (10 U.S.C. 2371b(d)(1)(C) Appendix 1, and Section C1.5.1 of the DoD OT guide).

Cost sharing should generally consist of labor, materials, equipment, and facilities costs (including allocable indirect costs) Cost Sharing is only Applicable when:

Neither a Nontraditional Defense Contractor nor a Small Business Concern is participating to a significant extent in the prototype project

Cost Sharing

Maximizing Competition Competitive procedures shall be used “to the maximum extent practicable.” (10 USC 2371b(b)) Characteristics of competitive OT procedures:

Structured in a common sense manner Consistent with industry practice for that market segment Fair, transparent, and ethical

Sole source follow-on production contract(s) or transaction(s) may be awarded when The acquisition approach for the prototype project addressed the strategy for follow-on activities and the following two criterion are satisfied:

Competitive procedures were used for the selection of parties for participation in the transaction; and The participants in the transaction successfully completed the prototype project provided for in the transaction.

Prototype Transition

Comfort Break

Requirement

Requirement & Scope Requirement:

Closed loop contracting vehicle for prototype efforts; at speed of need (award 45 days) Reduced barriers: a place for non-traditional vendors to compete; expand AF supply chain access to broader, innovative vendor base

Scope – Prototype:

Part Reverse Engineering / Repair Development New Sustainment Technology Artificial Intel; Alternative Mfg; Machine Learning; Robotic Process Automation, etc Business Process Re-engineering Rapid Problem Solving (e.g., Hackathons)

Planned SCCI Scope & Depth …any topic generally consistent with the sustainment of AFSC managed weapon systems, may extend to address systems, components, or materials and any integration therein…

Leading to prototype, modify, enhance, test, measure, document, and integrate current and/or next-generation for capabilities and tools that satisfy requirements for organically sustained systems.

Approach Establish to OTA Consortium Broad spectrum of Defense Contractors, Nontraditional Defense Contractors, Academia, and Non-profit Organizations Breadth of Capabilities, Expertise, and Technology Low barrier-to-entry for new Consortium Members Award to OTA Consortium Manager Single Point of Contact for Contracting/Administration Integrates Ecosystem Capabilities to Wing Needs Quality Control on Proposals/Reports/Invoicing Provides price reasonableness analysis on proposals Receives Administration Fee Ensures Deliverables are Provided

Emphasis on how we ensure oversight and quality control, deliverables.

OTA + Consortium Model Customers:

448 SCMW

AFSC Partners

Members:

TBD partner companies Non-Traditional Non-profit Traditional

OTA

PLA

Consortium Manager

SCCI

Supply Chain Consortium Initiative

AEDC Arnold Engineering Development Complex

Project Level Agreements Prototype Projects are Awarded to Consortium Manager (TBD) Firm Fixed Price Prototype Projects Milestone payments track technical progress OT is Amended to add the Project, Milestones, and Funding Consortium Manager (TBD) then enters into a Project Level Agreements with the Consortium Member (Project-Level Performer) Not a Prime-Subcontractor Relationship Project Level Performer is responsible for technical work however, Consortium Manager (TBD) responsible for delivery Government has direct insight into the technical performance Consortium Manager (TBD) acts a Mentor to the Performer and Intermediary for the Government

Task Types & Estimated Numbers

Task Types / Number

Scope – Prototype:

Part Reverse Engineering / Repair Development New Sustainment Technology Artificial Intel; Alternative Mfg; Machine Learning; Robotic Process Automation, etc Business Process Re-engineering Rapid Problem Solving (e.g., Hackathons)

Planned Structure & Flow of Tasks

SCCI Solicitation Machine Two Solicitation Approaches:

Request for Whitepapers (RFWP) Request for Prototype Proposals (RFPP) SCCI will work with the respective Wing customer to determine the best acquisition approach for each individual prototype project Prototype projects are solicited competitively with all members of the consortium eligible for a project award

RFPP → Award = One-step Process RFWP → RFPP → Award = Two-step Process Define RQMTs

RFWP

Competitive

RFPP

Competitive Selection

Negotiations

Award

45 - 60 Days Gate 1 Gate 2 Perform Gate 3

Planned Steps for Use Define RQMTs

RFWP

Competitive

RFPP

Competitive Selection

Negotiations

Award Step 1: Contact SCCI Team for latest templates and guide

Step 2: Fill out SCCI prototype request form

Step 3: Schedule meeting with SCCI team to discuss request and objectives. Attend scheduled meeting for duration of pre-award phase.

Step 4: SCCI team will develop announcement, schedule, and refine strategy, then send back to customer to review.

Step 5: Review and confirm

Step 6: SCCI final review and posting RFWP to OTA consortium (usually 14-21 days // <15 pages)

White Paper/RFPP Phase Step 7: Once white papers are received, customers will evaluate to find the white papers on track for a good proposal

Step 8: SCCI posts the request for prototype proposal (usually 21-30 days // <45 pages)

Step 9: Once proposals are received, customers will evaluate to recommend their desired solution to the agreements officer

Step 10: Final Review, negotiation, and award

Step 11: Begin Prototyping

Define RQMTs

RFWP

Competitive

RFPP

Competitive Selection

Negotiations

Award

Communication ROEs Customers Members/ Contractors

Customers Members/ Contractors

Program Management & Validation GFP Request, Extension Requests, Issues Issues, Changes, MS approvals Pre-Award Post-Award

Consortium Manager (TBD) Consortium Manager (TBD)

Other Items All GFP requests go through SCCI team (refer to draft guide for more information) All Invoices processed through SCCI team All schedule changes processed through SCCI team During Pre-Award Phase all contractor communications are done through TBD Consortium Manager All negotiations handled by SCCI team

Planned Metrics

Schedule

Questions & Answers

Closing Remarks

Backup

SCCI Team Supply Chain Consortium Program Manager Supply Chain Consortium Agreements Officer James D. Banks, III

AFSC/PZAAC

405-736-5668 james.banks.12@us.af.mil

Supply Chain Consortium Program Manager Ms. Summer Wishon

429 SCMS (SASPO)

405-736-7373 summer.wishon@us.af.mil Supply Chain Consortium Agreements Buyer Tailor Brown

AFSC/PZAAC

405-739-4298 tailor.brown@us.af.mil

*This team size is based on estimated tasks. Should task numbers grow in number and/or complexity, team complement will require reconsideration

Funding Information Must have funds prior to RFP Funds consistent with the use of prototype activities; other types considered based on requirements 448 SCMW – all funds must be validated through existing Wing procedures (e.g., if part-specific, must be validated in MPST) PR may be used, refer to SCCI guide (draft) for more information image3.png image4.png image13.png image14.gif image15.gif image16.gif image17.gif image18.gif image26.png image27.png image28.tiff image29.jpeg image30.jpeg image31.jpeg image32.png image33.png image34.png image35.png image36.png image37.png image38.png image19.png image20.jpeg image21.png image22.png image23.jpeg image24.png image25.jpeg image46.png image47.jpg image48.png image49.jpg image39.png image40.jpg image41.png image42.jpg image43.png image44.jpg image45.png image1.png image2.png image56.jpeg image57.jpeg image6.png image50.png image51.png image52.jpg image53.jpg image54.jpg image55.jpeg image65.png image58.png image59.png image60.png image61.png image62.png image63.png image64.png image66.png image67.png image68.png image69.png image70.png image71.png image72.png image73.png image74.jpg image75.png image76.jpg image8.png image7.png image12.png