Proposed Acquisition Strategy.docx

Proposed Acquisition Strategy – Lighting and Electrical DLA is considering an acquisition for items in Federal Supply Groups (FSGs) 59 - Electrical and Electronic Equipment Components (not including FSC 5995) and 62 - Lighting Fixtures and Lamps. A separate acquisition is also being considered for FSC 5995 together with 6150.

Below is a summary of our acquisition strategy for FSGs 59 and 62:

1. Contract type – Requirements, firm fixed price

2. Contract length – 10 years (5 base, 5 option)

3. Contract arrangement – Performance Based Logistics, an outcome-based contract with incentives and disincentives based on performance

4. Award type – Single awardee

5. Pricing – Annual Economic Price Adjustment (EPA)

6. Bid requirements – All or none, the vendor must bid on all items or none.

7. Items – Items will be in the three categories defined below:

a. Category 1: Customer Direct (CD) – Items shipped directly from the awardee to the customer, these are typically high demand items, with inspection/acceptance at destination

b. Category 2: DLA Direct (DD) (Priced) – Items that will be shipped to DLA depots, these items have higher demand, but don’t fit the template for CD items (e.g. inspection at source)

c. Category3: DLA Direct (DD) (Historically priced) – These items have low/extremely low demand, and we are inquiring if industry will accept historical pricing on these items

8. Solicitation Open/Close – The solicitation will remain open for at least 120 days to allow enough time for pricing A preliminary item list for FSGs 59 and 62 is attached to this announcement and includes a tab in an Excel workbook for each of the three item categories above. This list is not final and will be subject to change. Each tab also contains cataloguing, part number and demand/pricing information for each item.

We have also included a separate Excel workbook attachment that contains item lists for FSCs 5995 and 6150 using the same methodology detailed above. This is to provide you with additional information to answer the questions below. This list is not final and will be subject to change.

In addition, we are requesting that prospective vendors answer the following questions to assist us in finalizing our acquisition strategy:

1. Please provide feedback on the acquisition strategy outlined above for FSGs 59 and 62. Will your company be able to work with an arrangement as described above?

2. We are not currently considering a repricing of items after the base contract period. Is this something that should be considered? If so, please provide a detailed explanation.

3. Is your company capable of managing Critical Safety Items (CSI)? If so, what is your plan for managing items with CSI requirements?

4. Is your company capable of managing items with First Article Test (FAT) requirements?

a. If a contractor FAT, do you have internal capabilities or partnerships with external labs?

b. If a source inspection item, will you be able to secure an agreement with the OEM to allow government personnel access to the plant for inspection purposes?

c. Please detail your plan for managing FAT items

5. Please provide a listing of all OEMS that your company has licensing /distribution agreements with

6. Is your company willing to accept historical pricing for items in the DLA Direct – Historically priced items list (Category 3) if historical pricing is available?

7. We are also considering a means of supporting items in FSCs 5995 and 6150. Does your company think this should be part of an FSG 59 and 62 solicitation or a separate solicitation just for FSCs 5995 and 6150? Please provide a detailed response on why/why not combining FSCs 5995 and 6150 would be appropriate.

Please review this announcement in its entirety and provide questions or feedback via email before Wednesday, July 19 to the following point of contact:

Gary Miller Program Manager Gary.L.Miller@dla.mil