Solicitation Supply Chain Management.docx

Solicitation No. SAQMMA-11-R-0186 Department of State Supply Chain Management

TABLE OF CONTENTS

Supply Chain Management

Solicitation No. SAQMMA-11-R-0186 Department of State Supply Chain Management iv Section B, SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 OVERVIEW

The Department of State (DOS), Bureau of Diplomatic Security (DS), Office of Security Technology (ST), Facility Security Engineering Division (FSE) requires the Contractor to provide a cradle-to-grave supply chain management (SCM) solution. Among other things, the Contractor shall identify, evaluate and incorporate new technical security capabilities into the existing suite of products and services. Functions under this contract will be performed worldwide, but the majority of performance will occur in the United States of America.

B.2 CLINs, MAJOR FUNCTIONS, AND TYPE OF CONTRACT

a) This is a stand-alone, hybrid contract for non-commercial items. Contract types are assigned by major function.

b) The following is the list of CLINs (contract line item numbers), major functions, and contract types:

Time-and-Materials

c) Firm-fixed-price (see FAR 16.202) = Payment at negotiated firm-fixed-price. Negotiated firm-fixed-price includes direct labor costs, direct non-labor costs, applicable indirect costs, and profit.

d) Firm-fixed-unit-price (see FAR 16.202) = Payment at negotiated firm-fixed-unit-price multiplied by the number of allowable actual incurred units. Negotiated firm-fixed-unit-price includes known equipment costs, applicable indirect costs, and profit. Applicable indirect costs include labor costs to handle the functions described for CLIN X003.

e) Cost-plus-fixed-fee (completion form) (see FAR 16.306) = Payment at allowable actual incurred direct costs, applicable indirect costs, and fixed fee. Applicable indirect costs are calculated by multiplying negotiated applicable provisional billing indirect cost rates (or established revised billing rates or final indirect cost rates, subject to negotiated ceiling indirect cost rates – see subsections B.3 and B.4) by actual incurred direct costs. Negotiated applicable provisional billing rates and ceiling indirect cost rates include labor costs to handle the functions described for the cost-plus-fixed-fee CLINs. The fixed fee results from a fee percentage applied to the sum of estimated direct costs and applicable indirect costs.

f) Time portion of time-and-materials (see FAR 16.601) = Payment at negotiated fixed fully-loaded hourly labor rates multiplied by the number of allowable actual incurred hours. Negotiated fixed fully-loaded hourly labor rates includes unloaded hourly labor rates, fringe benefits (if not included in applicable indirect costs), applicable indirect costs, and profit.

g) Materials portion of time-and-materials (see FAR 16.601) = Payment at allowable actual incurred materials/other direct costs and applicable indirect costs. Payment of fee or profit is prohibited. Applicable indirect costs are calculated by multiplying negotiated applicable provisional billing indirect cost rates (or established revised billing rates or final indirect cost rates, subject to negotiated ceiling indirect cost rates – see subsections B.3 and B.4) by actual incurred materials/other direct costs.

B.3 PROVISIONAL BILLING RATES

a) This subsection applies to the cost-plus-fixed-fee CLINs (contract line item numbers) (CLINs X004 and X005) and the CLIN containing the materials portion (CLIN X008) of the time-and-materials arrangement.

b) The following table displays the negotiated provisional billing rates:

Indirect Cost Rate Description Negotiated Provisional Billing Rate

Allocation Base

Contractor Fiscal Year Period

1)

2)

c) The Contractor may recover, if consistent with FAR Part 31 and the Contractor’s established or disclosed cost accounting practices, allowable, reasonable, and allocable indirect costs.

d) Subcontractor indirect cost rates are not incorporated above.

e) The Contractor shall be reimbursed: 1) only the indirect cost rate descriptions identified in the table unless prior written approval was obtained by the Contractor’s cognizant Federal agency official; and 2) at the negotiated provisional billing rates until revised billing rates or final indirect cost rates have been established by the Contractor’s cognizant Federal agency official.

f) If any revised billing rate or final indirect cost rate established by the Contractor’s cognizant Federal agency official exceeds this contract’s respective ceiling indirect cost rate (see Section B.4), the Contractor shall be reimbursed at the contract’s ceiling indirect cost rate.

g) The Contractor shall make no change to its established or disclosed method of classifying or allocating indirect costs without the prior written approval of the Contractor’s cognizant Federal agency official.

h) The Contractor’s fiscal year period is the period used by the Contractor for cost accounting purposes.

B.4 CEILING INDIRECT COST RATES

a) This subsection applies to the cost-plus-fixed-fee CLINs (contract line item numbers) (CLINs X004 and X005) and the CLIN containing the materials portion (CLIN X008) of the time-and-materials arrangement.

b) The following table displays the negotiated ceiling indirect cost rates:

Allocation Base Contractor Fiscal Year Period

1)

2)

c) The negotiated ceiling indirect cost rates will generally apply when settling the contract’s final indirect costs for each of the Contractor’s fiscal years in conjunction with the contract’s period of performance.

d) The negotiated ceiling indirect cost rates will be compared to the respective established final indirect cost rates, and the Government shall pay the lesser of the negotiated ceiling indirect cost rates and the respective established final indirect cost rates.

e) If the Government uses the quick-closeout procedure provided in FAR 52.216-7 (Allowable Cost and Payment), the Government will not pay indirect cost rates that exceed the respective negotiated ceiling indirect cost rates.

B.5 FIXED FEE

a) This subsection applies to the cost-plus-fixed-fee CLINs (contract line item numbers) (CLINs X004 and X005).

b) The following are the negotiated fixed fees:

CLIN X004: Sourcing and Procurement, Order Fulfillment, and Staging (unknown equipment/need quotes)

CLIN X005: Transportation

c) If, however, pursuant to FAR 16.306(a), changes in the work to be performed under the contract occur (e.g., increase or decrease in estimated direct costs for the next contract year), the Government and Contractor will adjust the negotiated fixed fee by multiplying the applicable negotiated fee percentage to the sum of the new estimated direct costs and applicable indirect costs.

In such a case, applicable indirect costs will be calculated by multiplying the negotiated applicable provisional billing indirect cost rates (or established revised billing rates or final indirect cost rates, subject to negotiated ceiling indirect cost rates – see subsections B.3 and B.4) by the new estimated direct costs.

d) Notwithstanding the withholding of a fixed fee reserve pursuant to FAR 52.216-8(b) (Fixed Fee), the negotiated fixed fee for each CLIN for each performance year will be paid in monthly installments by dividing the negotiated fixed fee by 12 months. However, full monthly payment is contingent upon the Contractor completing the CLIN’s requirements for the month to the satisfaction of the Contracting Officer. If the Contracting Officer is not satisfied, the Contractor will receive a pro-rata share of the monthly amount of the negotiated fixed fee for the month’s requirements to which the Contracting Officer issued his satisfaction. Any withheld fixed fee resulting from the Contracting Officer not issuing his satisfaction will be released to the Contractor when the Contractor completes the requirement(s) to the Contracting Officer’s satisfaction.

e) The following are the negotiated fee percentage(s):

CLIN X004: Sourcing and Procurement, Order Fulfillment, and Staging (unknown equipment/need quotes)

CLIN X005: Transportation

B.6 FIRM-FIXED-UNIT-PRICES

a) This subsection applies to CLIN X003 [Sourcing and Procurement, Order Fulfillment, and Staging (for each known equipment)].

b) The negotiated firm-fixed-unit-prices are found in Exhibit A in Section J.

B.7 FIXED FULLY-LOADED HOURLY LABOR RATES

a) This subsection applies to CLIN X007 (Other Services), which represents the time portion of the time-and-materials arrangement.

b) The following table displays the negotiated fixed fully-loaded hourly labor rates:

(end of page)

Sub-CLIN

Labor Category

Base Year

c) The negotiated fixed fully-loaded hourly labor rates are in United States currency.

d) The Government will not pay fully-loaded hourly labor rates that differ from the contract’s negotiated fixed fully-loaded hourly labor rates.

e) The Government will pay the negotiated fixed fully-loaded hourly labor rates for only performed labor that meets the labor qualifications specified in the contract.

f) Labor hours for each labor category will be paid at the same negotiated fixed fully-loaded hourly labor rate regardless of whether the individual performing the labor works (either as an employee or consultant) for the prime contractor or a subcontractor.

g) The contract’s negotiated fixed fully-loaded hourly labor rates apply to a normal workweek of 40 hours. The Government defines a normal workweek, pursuant to FAR 22.103-1, as: 1) generally, 40 hours; or 2) if longer than 40 hours and outside the United States and its outlying areas, it does not exceed the norm for the area, as determined by local custom, tradition, or law, and the hours worked in excess of 40 in the workweek are not compensated at a premium rate of pay. The Government anticipates most contract requirements being performed in an area(s) where a 40-hour workweek is considered normal.

h) Each negotiated fixed fully-loaded hourly labor rate consists of an unloaded hourly labor rate, fringe benefits (if not included in applicable indirect costs), applicable indirect costs, and profit amount. It does not consist of any other costs. Any other costs that are part of the Contractor’s established compensation plan and consistent with FAR Part 31 may be allocated as a material/other direct cost under CLIN X008 (Other Supplies).

i) Any cost elements included in the negotiated fixed fully-loaded hourly labor rates shall not be charged elsewhere in this contract.

j) The contract’s negotiated fixed fully-loaded hourly labor rates apply only to the RFP-specified labor categories specified in the table in this subsection.

B.8 TRAVEL COSTS

a) Travel costs shall be allocated to CLIN X008 (Other Supplies).

b) Travel under this contract is generally defined as Contractor air and ground transportation, Contractor lodging, and Contractor meals and incidental expenses. Transportation costs under CLIN X005 (Transportation) are not considered travel costs.

c) Except as otherwise provided herein, the Contractor shall be paid its allowable travel costs in accordance with FAR 31.205-46.

d) Travel must be directly related to and be required for performance of the contract. In no event shall costs associated with employees commuting be payable as a direct cost under this contract.

e) The Contractor shall include, by the following cost elements, a breakdown of all authorized travel costs as an attachment to each applicable invoice: CLIN, Labor Category, Traveler Name, Title of Traveler or Relationship of Traveler to Contractor, Purpose of Trip, Dates of Travel, Origin, Destination, Airfare, Lodging, Meals and Incidental Expenses, Ground Transportation, Parking, and Tolls.

f) Travel costs are authorized only for travel beyond a 50-miles’ radius of the Contractor employee’s local place of performance (official duty station) whenever work is required to be accomplished at a remote work site. No travel costs (or associated labor time during travel) shall be allowable for work performed at a Contractor’s local office or any other work site within a 50-miles’ radius of the Contractor employee’s local place of performance (official duty station). No travel costs (or associated labor time during travel) shall be allowable for telecommuting beyond (or within) a 50-miles’ radius of the Contractor’s local place of performance (official duty station).

g) Costs when using a privately owned vehicle (POV) for official travel are allowable provided that such costs do not exceed costs that would have resulted from use of other reasonable transportation methods (e.g., taxi, airplane, train). Reasonable associated costs, such as tolls and parking fees, are also generally allowable. The Contractor shall submit, as an attachment to its invoice, evidence to support the reasonableness of POV costs.

h) When traveling in a POV for official travel, the Contractor shall be paid mileage costs at a rate that does not exceed the POV mileage rate established by the Internal Revenue Service.

i) Costs for car rentals for official travel are allowable provided that: such rentals are consistent with good business practice; such costs do not exceed costs that would have resulted from use of other reasonable transportation methods (e.g., taxi, airplane, train); and such costs do not exceed the actual cost of renting a compact automobile (maximum of one automobile for four Contractor personnel), unless extenuating circumstances (e.g., excess baggage) require other arrangements and Contracting Officer approval is obtained. Reasonable associated costs, such as tolls and parking fees, are also generally allowable.

j) The Government will pay the Contractor for Contractor employees’ travel time to or from authorized work locations as long as such travel time is during the Contractor’s normal business hours and such payment is in accordance with the Contractor’s established travel policy. Travel time begins upon arrival to departure point (e.g., airport) and concludes upon arrival to initial destination point (e.g., airport). The Contractor shall not be paid for time spent in layovers that are for the convenience of the Contractor. The Government will not pay more than eight hours per day per Contractor employee for Contractor employees’ travel time. Exceptions must be authorized in advance and in writing by the Contracting Officer.

k) Travel must be authorized in advance by the Contracting Officer’s Representative or Government Technical Monitor.

l) The Contractor shall be responsible for ensuring that all personnel who will be required to travel outside the United States have a current and valid official passport. The Contractor shall be responsible for obtaining any visas required for travel to foreign countries under this contract. The Contractor’s costs for obtaining and maintaining passports and/or visas will be generally allowable, but the Contractor shall pro-rate equitably such costs if they will benefit cost objectives (e.g., contracts) other than this cost objective. The Government will not reimburse the Contractor for travel expenses when travel is cancelled or modified as a result of the Contractor’s failure to obtain a visa. The Government will not reimburse the Contractor for the use of private visa procurement services provided by a third party.

m) If work under this contract will be performed at the Government site at the Department of State main building, 21st and Virginia Avenue, NW, Washington, DC 20520, or other State Annexes in the metropolitan Washington, DC area, daily commuting time and expenses between the Department of State site and some other location, such as a home office, shall not be allowable under this contract. However, commuting time and expenses between the Department of State site and some other location, such as a home office, shall be allowable when performing occasional official business (e.g., to attend a meeting at the Department of State site).

n) Pursuant to FAR 47.402, 47.403, and the Fly America Act, the Contractor is required to use a U.S.-flag air carrier service unless specific conditions exist. If such conditions exist, the Contractor shall submit with its voucher a memorandum explaining why it did not use a U.S.-flag air carrier service. Reimbursement is contingent upon Government acceptance of such explanation.

B.9 POST HARDSHIP DIFFERENTIAL PAY AND DANGER PAY

Post Hardship Differential Pay and Danger Pay are forms of incentive compensation. Such costs will be generally allowable. If incurred, they will be allocated to CLIN X008 (Other Supplies). However, Government payment of such costs is contingent on the Contractor meeting all of the following requirements:

a) Paying Post Hardship Differential Pay and Danger Pay is part of the Contractor’s established incentive compensation plan or policy, or employer/employee agreement, pursuant to FAR 31.205-6(f) (Bonuses and Incentive Compensation).

b) Payment of such costs is otherwise consistent with FAR Part 31.

c) Payment will be made only for areas identified as Post Hardship Differential Pay areas and/or Danger Pay areas in Section 920 of the Department of State Standardized Regulations (DSSR).

d) Payment will be made only for eligible employees. Eligible employees are employees:

i. whose country of citizenship is not in the place of performance; and

ii. whose primary residence is in an area not identified in Section 920 of the DSSR, or an area identified in Section 920 of the DSSR with an applicable DSSR percentage that is less than the respective applicable DSSR percentage for the place of performance.

e) Payment for a given workweek for an eligible employee will not exceed the dollar amount resulting from multiplying the applicable DSSR percentage by the employee’s basic compensation for the given workweek.

f) The applicable DSSR percentage will be the DSSR percentage effective at the time of performance.

g) An eligible employee’s basic compensation for a given workweek is the dollar amount attributable to the employee as a result of the employee’s productive hours and paid-time-off (e.g., sick, vacation, holiday) hours for the given workweek. It is the employee’s base salary/unloaded compensation for the given workweek. However, such compensation must:

i. benefit the contract; and/or

ii. be an equitable amount that is necessary to the overall operation of the business, although a direct relationship to any particular cost objective (e.g., contract) cannot be shown.

h) The number of hours included in an eligible employee’s basic compensation for a given workweek cannot exceed the number of hours in the place of performance’s normal workweek. A normal workweek is defined in FAR 22.103-1.

i) Basic compensation will consist of actual incurred base salary/unloaded compensation.

j) An eligible employee may receive Post Hardship Differential Pay and Danger Pay during paid-time-off only when the employee takes paid-time-off in the place of performance or in another Post Hardship Differential Pay and Danger Pay area, respectively. When an eligible employee takes paid-time-off in another Post Hardship Differential Pay and/or Danger Pay area, payment will be based on the applicable DSSR percentage(s) for the place of performance.

k) Payment of Post Hardship Differential Pay for an eligible employee will not commence until the eligible employee has served 42 calendar days in the place of performance. Payment will commence on the first productive or non-productive day after day 42, and not be retroactive for the previous days. The 42 calendar days are not required to be consecutive, and “served” consists of productive time, paid-time-off, and time otherwise spent in the place of performance.

l) Payment of Post Hardship Differential Pay for an eligible employee will conclude when the eligible employee departs the place of performance, unless such departure is to another Post Hardship Differential Pay area during paid-time-off.

m) For Post Hardship Differential Pay, when an eligible employee has not yet served 42 calendar days and returns to the place of performance after an absence from the place of performance, the number of days served resumes on the day of return. For example, if an eligible employee served 30 calendar days in the place of performance and departed the place of performance for 14 days, the day of return (day 44) will be considered day 31 of days served.

n) Payment of Danger Pay for an eligible employee will commence on the day of arrival in the place of performance and conclude on the day of departure from the place of performance, unless such departure is to another Danger Pay area during paid-time-off.

B.10 DBA INSURANCE

Defense Base Act (DBA) Insurance costs shall be allocated to CLIN X008 (Other Supplies).

B.11 OVERTIME

Overtime is defined as time worked in excess of the number of hours in a normal workweek, pursuant to FAR 22.103-1 (Overtime). Costs and prices in this contract are based on a normal workweek of 40 hours. Overtime will not be granted under the firm-fixed-price or firm-fixed-unit-price CLINs. For the remaining CLINs, overtime must be authorized in advance and in writing by the Contracting Officer.

B.12 DATA OTHER THAN CERTIFIED COST OR PRICING DATA

The Government did not require and rely upon certified cost or pricing data, as described in FAR Subpart 15.4, for award of the contract because adequate price competition had been obtained. Instead, where applicable, the Government required and relied upon data other than certified cost or pricing data.

SeCTION C - PERFORMANCE WORK STATEMENT (PWS)

C. 1 INTRODUCTION

The Department of State (DOS), Bureau of Diplomatic Security (DS), Office of Security Technology (ST), Facility Security Engineering Division (FSE) has a requirement for a Contractor to provide a cradle-to-grave supply chain management (SCM) solution. The current supply chain distributes products and services to 147 domestic and 285 overseas locations. The SCM service is unique in that ST anticipates awarding four separate but critically related contracts to support product delivery and installation;

· Supply Chain Management Services;

· Domestic Security Installation Services,

· Overseas Security Installation Services, and

· Administration and Information Technology Services.

The SCM Contractor shall work seamlessly with end-users, technical support teams, and installation contractors. The SCM Contractor shall be required to collaborate with the support Contractors to ensure that product delivery is coordinated with a timely and proper installation. Associate Contractor Agreements (ACA) shall be executed between each of the parties. The ACA shall be applicable for any portion of the contract that necessitates joint participation in the accomplishment of the Government’s requirement, (see paragraph H.11).

C.2 VISION, GOALS AND OBJECTIVES

ST’s vision is to maintain the ability to apply cutting-edge technology to new problems in information and personnel protection, while tempering the liability associated with the accelerating obsolescence of existing technology. In order to maintain a state of readiness both domestically and overseas, the SCM Contractor shall identify, evaluate and incorporate new technical security capabilities into the existing suite of products and services. The Contractor shall ensure timely and cost effective access to approved technology.

The SCM goal is to create a responsive, proactive and cost-effective supply chain capable of supporting DOS worldwide operations. This would enhance the core mission of protecting lives, information and property. ST envisions a holistic approach to supply chain with a strong management infrastructure capable of integrating and managing the flow of products and information. The objectives are for the SCM Contractor to:

· Identify and incorporate innovative, superior security technology cost effectively;

· Ensure best value pricing of products and services;

· Reduce the time to obtain products and services, ensuring predictable, consistent lead times;

· Standardize staging of equipment for shipping and implementation;

· Provide reliable, on schedule deliveries worldwide;

· Provide customer’s real-time visibility into the supply chain process;

· Manage costs and obsolescence through equipment repair;

· Provide technical assistance and life-cycle support to perimeter X-Ray and explosive detection equipment, and other specialized security equipment;

· Provide real-time order status, accurate delivery schedules, and delivery confirmation notices to the ordering activity and installation contractors, and

· Facilitate the custom’s process for in-country receipt of overseas shipments.

C.3 BACKGROUND

The overall DS mission is to provide a safe and secure environment for the conduct of U.S. foreign policy. Every U.S. diplomatic mission in the world operates under a security program designed and maintained by DS. ST supports the DS mission through the application and use of technical security countermeasures. Following the commissioning of a DOS facility, the security technology and its infrastructure become ST’s responsibility to repair, maintain, and lifecycle. To address the continually evolving threat environment and to keep pace with technological advances, ST systematically assesses existing technical security systems and plans for new technologies.

C.3.1 ORGANIZATIONAL STRUCTURE – ST

ST currently operates through the Director’s front office and has three divisions as depicted in the table below.

· Conducts budget planning and resource management through Program Resource Operation Support (PROS)

· Reviews technical security standards and their impact on U.S. missions overseas through the Security Technology Resource Center (STRC)

· Responsible for ST’s enterprise asset and supply chain management software program Computer Maintenance Management System (CMMS), including application development, network engineering, and technical support

Facility Security Engineering Division

(FSE)

· Responsible for implementing Technical Security Upgrade (TSU) projects and the installation of Technical Security Systems (TSS) both domestically and overseas

· Provides supply chain management, multi–layer maintenance support, equipment design, and engineering solutions for field–generated requirements, and help desk services

Security Technology Operations Division

(STO)

· Provides technical security support for overseas posts through a worldwide organization of Engineering Services Centers, Engineering Services Offices, and Technical Security Offices

· Conducts design reviews/quality audits of technical security systems installed in DOS facilities worldwide through the Quality and Liaison Branch (QAL)

· Supports the Secretary on all foreign travel and supports all special technical operations

Countermeasures Program Division

(CMP)

· Manages the domestic and overseas technical countermeasures program of DOS

· Integrates the operations of other federal countermeasures programs with those of DOS

· Most of what CMP does is classified

C.3.2 ORGANIZATIONAL STRUCTURE – FSE

The Facility Security Engineering (FSE) Division is in charge of installing Technical Security Systems (TSS) and implementing Technical Security Upgrade (TSU) projects. FSE also provides logistics management and multi-layered maintenance support for installed technical security equipment. FSE’s major initiatives include the Security Management System Enterprise (SMSe), the DS Security Technology Assistance Center (STAC), and the Computerized Maintenance Management System (CMMS). FSE currently resides in State Annex (SA) 24 in Alexandria, Virginia.

The table below provides an overview of the FSE organization and the roles of each of the respective branches.

Field Support Branch

(FSB)

Technology Development Branch

(TDB)

Project Management and Engineering Branch

(PME)

Technical security upgrades for overseas facilities Domestic Management and Engineering Branch

(DME)

Technical security support for domestic facilities

Technical security support services and special programs Identification, testing, and integration for new technologies Research and development Testing and evaluation Deployment planning Technical security system integration Technical security system documentation DS lock support

Design, engineering, and installation Security system configuration Technical Security Upgrades (TSU) Life cycle replacements Repair and maintenance Technical support AlarmNet Design, engineering, and installation Technical Security System Assessments (TSSA) Technical Security Effectiveness Evaluation

(TSEE)

Technical Security Upgrades

(TSU)

SMSe Integration Supply chain management CMMS Equipment

List Equipment Repair Security Technology Assistance Center (STAC) Vehicle Barrier Program X-Ray Program Explosive Detection Program

Security Management System Enterprise Program SMSe Homeland Security Presidential Directive 12 Program

HSPD-12

Ensure implementation of the PIV Program in compliance with HSPD-12 and NIST FIPS Pub 201 Worldwide integration of selected security systems for data collection and monitoring

C.3.2.1 Field Support Branch (FSB)

FSB provides procurement, logistics, maintenance, and technical support for TSSs overseas. The FSB maintains an on-line catalog of approved technical security equipment for the field and related material. Perimeter security enhancement programs that FSB manages include walk through metal detectors, the Explosive Detection Program, Perimeter X-Ray Program, and DS Rated Vehicle Barrier Program. FSB also provides technical assistance for system installation, and maintains an online helpdesk.

C.3.2.2 Technology Development Branch (TDB)

TDB provides information on DS-approved security systems, and, in response to the field, evaluates technology for potential use in security systems, mainly overseas. TDB assists field groups in troubleshooting problems and creating deployment plans. TDB publishes application guidelines and technical bulletins used in installing and maintaining technical security equipment.

TDB and FSB are responsible for end-to-end supply chain functions, and leverage that capability to support the larger DOS.

C.3.2.3 Domestic Management and Engineering Branch (DME)

DME spearheads the Department’s personal identity verification (PIV) card initiative according to Homeland Security Presidential Directive 12 (HSPD-12). DME also provides technical security support for the Department’s 147 domestic facilities. This involves providing project management oversight, design, engineering, installation, repair, and maintenance on a variety of security systems, such as integrated access control and Intrusion Detection Systems (IDS). DME uses the SCM contract to procure equipment for large scale TSS installations and to stock a domestic resupply facility supporting its National Capital Area (NCR) repair and maintenance activities.

C.3.2.4 Project Management and Engineering Branch (PME)

PME manages roughly 30 TSUs a year, at U.S. embassies, consulates and Lock & Leave posts, and other U.S. missions. This involves all aspects of project management and the installation of DS approved technical security equipment. Responsibilities of which include: setting schedules and priorities; developing, reviewing and approving technical designs; developing the Bill of Materials; fielding installation teams; executing installation; coordinating funding issues; and facilitating communication with other offices. PME relies on the SCM’s capability to:

· Manage the lead times of multiple vendors;

· Consolidate and coordinate shipments to arrive at post in accordance with installation schedules, and

· Obtain real-time order status, accurate delivery estimates and delivery confirmations. Coordinate with each post to expedite the customs process and ensure that the proper personnel are notified when shipments arrive.

C.3.3 DS SUPPLY CHAIN MANAGEMENT CONCEPT

ST envisions a holistic approach to supply chain, with strong management to integrate and manage the flow of products and information to achieve desired objectives. The ST supply chain concept consists of six functions, which include security technology development and equipment repair. The table below provides a high-level overview for each of the required supply chain services including branch activities, a work summary, and desired features and outcomes. This concept is merely intended to provide a logical structure for presenting the PWS requirements.

PWS

Service Areas Customer Service

Supply Chain Management (Integration, collaboration, conversion, and communication between all service areas)

Fulfillment

Work Summary

· Technology solutions

· COTS evaluation

· Plan obsolescence

· Deployment planning

· Integration

· Documentation

· Identify suppliers

· Manage suppliers

· Repaired equipment becomes a part of inventory as GFE

· Supply/demand planning

· Inventory management

· Order fulfillment

· CMMS Equipment List

· Warranty registration

· Barcoding

· Consolidating

· Packaging

· Inbound

· Outbound

· Door-to-door

· Repair for reuse

· Cost-benefit analysis

· Manage obsolescence

· Warranty management

· Reliability assessment

· Equipment excess

· EaRL

· SharePoint

· CMMS Purchase System

· CMMS Purchase System

· Cost effective security solutions

· Optimum inventory levels

· Worldwide distribution capability

· Failure rate data

Desired Outcomes

· Reduced security vulnerability

· Minimized risk

· Reduced cost

· Predictable, consistent lead times

· Eliminate backorders

· Reduced cost

· Standardization

· Efficiencies

· Visibility

· Traceability

· On schedule delivery

· Reduced cost

· Visibility

· Traceability

· Improved equipment reliability

· Reduced cost

C.4 SPECIFIC CONTRACT REQUIREMENTS

The Contractor shall provide the organizational structure, management, and qualified staff at levels adequate to meet or exceed the requirements enumerated below. The projected workload volumes are depicted in Appendix J-1. The projected workload in some cases has been extrapolated from historical averages and is therefore subject to change. The Contractor shall be responsible for performing the tasks in accordance with performance standards stated in Appendix J-2. A list of acronyms and definitions used throughout this PWS are included in Appendix J-3. The complete list of appendices and exhibits are contained in Section J.

C.4.1 SUPPLY CHAIN MANAGEMENT (SCM)

The Contractor shall manage the complete SCM system, including providing quality control and operational oversight. The Contractor shall ensure the continued alignment of DS approved supply chain products with FSE requirements and customer demand. The Contractor shall be required to provide the following SCM services:

· Technology Development – identifying and evaluating TSS;

· Sourcing and Procurement – establishing product supply channels at most favored customer pricing;

· Order Fulfillment – meeting product demand in a timely and cost effective manner;

· Staging – pre-shipment preparations, facilitating the customs clearance process for OCONUS shipments;

· Transportation – provide door-to-door shipping for all domestic and overseas distribution points and providing customer notifications of forecasted delivery dates and receipt confirmation.

The Contractor shall manage the supply chain in a manner that eliminates backorders, ensures timely product delivery and reduces the overall cost of transportation. The Contractor shall meet customer needs with strong and effective program management. In performing the services under this contract the Contractor shall:

· Proactively educate customers on how they can use supply chain services most effectively to support their program while balancing the total expenses (e.g., product price plus delivery charges);

· Provide convenient, responsive, one-stop customer service for supply chain services;

· Understand the product and service needs of different customers and adapt the supply chain to serve these customers most effectively;

· Implement service level agreements (SLAs) with customers to establish and document mutually-agreed product and delivery lead times;

· Formulate SLAs with DOS program offices to ensure the goods and services meet the customer’s requirements for quality, timeliness, and cost efficiency;

· Establish door-to-door delivery standards for all domestic and international delivery locations, and ensure all shipments are received by customers within the specified standard, (see paragraph C.4.8), and

· The Contractor shall support the DOS performance management process by contributing current, accurate, and complete data deliverables (see paragraph F.4).

The Contractor shall develop and implement Government-approved standard operating procedures (SOPs) to meet supply chain objectives. In developing the SOPs, the Contractor shall incorporate process improvements and industry best practices. The Contractor shall review, maintain and update SOPs annually to ensure documentation is reflective of the current processes employed.

The Contractor shall utilize the equipment repair function to gain insight into equipment failure problems and implement methods for addressing and mitigating recurrences. The Contractor shall work closely with DS, ST and FSE management, including providing and attending briefings.

C.4.1.1 Customer Satisfaction The Contractor is expected to maintain a customer-focused approach to the work, ensuring a high level of customer satisfaction. The Contractor shall:

· Establish and implement quality control procedures by proactively identifying risks, issues, and problems, whether under Contractor or DOS control;

· Work with customers to resolve issues or problems dealing with any products or services provided under this contract. The Contractor shall resolve problems to the satisfaction of the customers and with minimal impact on the mission, and

· Refer issues and problems immediately to either the Contracting Officers Representative (COR) or the appropriate Government Technical Monitor (GTM) in the event they are not resolved to the satisfaction of the customer.

The Contractor shall develop a survey that shall be distributed to all customers following the delivery and installation of the products or services ordered. The survey shall utilize an evaluation rating scale of: Outstanding; Superior; Satisfactory; Substandard and Unacceptable. The survey shall solicit customer feedback on the overall experience from placing the order to installation. The Contractor shall prepare the survey for COR approval prior to its implementation. The Contractor shall develop monthly summary reports listing customers survey; survey results received, and any actions planned or taken to improve or strengthen areas that are reported as less than superior. The survey results shall be utilized in conducting the annual performance-rating review, (see paragraph H-14).

C.4.1.2 Supply Chain Management Customers The Contractor shall work with a wide variety of customers and support associate Contractors to successfully accomplish the overall SCM requirements. Aside from DME and PME, the supply chain supports customers from different components throughout DOS. The customers overseas are the specific post personnel responsible for technical security and perimeter devices. The Regional Security Officer (RSO) is the principle security attaché at overseas posts. The posts are supported through regionally organized engineering facilities. Currently, five Regional Directors for Security Engineering (RDSE) oversee 15 Engineering Services Centers (ESCs).