Scope_of_Work__VMI_Material_Support Final.pdf

Scope of Work (SOW)

Consolidated Vendor Managed Inventory (VMI) and On-Site Material Support Services

1.0 Scope and Objective

The Contractor shall provide comprehensive Vendor Managed Inventory (VMI) management, procurement, warehousing, logistics, and on-site representation to supply raw materials, fasteners (nuts, bolts, washers), and component parts to support multiple distinct Government programs.

The primary objectives of this contract are to maximize operational efficacy, improve process efficiencies across all supported programs, eliminate production stock-outs, reduce on-site inventory footprint duplication, and implement an audit-ready billing structure that segregates material consumption across multiple Government Work Breakdown Structures (WBSs).

1.1 Background

The Government operates multiple programs, each funded and tracked through unique Work Breakdown Structures (WBSs). Historically, these programs operated under decentralized, independent procurement structures, creating duplicate safety stocks, excessive administrative purchase order (PO) burdens, and coordination gaps. This contract establishes a single, consolidated physical VMI footprint overseen by a dedicated on-site representative, utilizing a virtual ledger to separate billing and traceability by WBS.

1.2 Evaluation Criteria and Suitability

To ensure the selected Contractor is fully suitable to execute this high-complexity logistics and quality-sensitive supply program, the Government will evaluate offerors based on the following criteria:

• Technical Capability & Experience: Demonstrated success in establishing and maintaining on-site VMI programs, specifically managing diverse physical storage footprints and executing point-of-use tracking systems.

• WBS-Segregated Billing Infrastructure: Proof of existing accounting and software capabilities to seamlessly split, track, and independently bill material usage to multiple accounts or projects under a single contract.

• Logistics & Supplier Network: Depth and stability of the Contractor’s supply chain to ensure uninterrupted delivery of raw materials and hardware under varying market conditions.

• Personnel Qualifications: Verification that proposed on-site representatives possess the technical training, warehouse management experience, and security clearance suitability to operate independently in a Government industrial facility.

• Quality Assurance Certification: Active quality management systems (e.g., ISO 9001, AS9100) and established procedures for tracking and maintaining material certifications.

2.0 Period of Performance and Place of

Performance

• Period of Performance: One (1) Base Year with Five (5) Option Years.

• Place of Performance: Rock Island Arsenal Joint Manufacturing Technology

Center, 3055 Rodman Ave, Rock Island, IL 61299.

• Hours of Coverage: The Contractor shall provide on-site representative (s) coverage five (5) days per week, Monday through Friday, during the core operating hours of 0600 to 1430 hours, excluding Federal Holidays.

3.0 Technical Requirements and Operational

Scope

3.1 Material Requirements & Inventory Management

The Contractor shall source, package, transport, deliver, stock, and monitor inventory for raw materials, fasteners (nuts, bolts, washers), and component parts as detailed in the technical specifications.

• Drawing Review and Joint Certification Program (JCP): The Contractor shall maintain an active registration in the United States/Canada Joint Certification Program (JCP) for the entire duration of the contract. This active certification is a mandatory requirement for the review, handling, and security of technical drawings, engineering specifications, and export-controlled technical data required under this contract.

• Inventory Stocking Levels: The minimum and maximum quantity limits for each material and part will be formally identified within the solicitation and subsequent contract awards. The Contractor shall dynamically manage the supply chain to maintain on-hand inventory strictly within these defined min/max levels.

• M-Number Traceability: The Contractor shall assign, track, and physically mark unique "M-Numbers" on all raw materials to maintain strict physical and digital traceability. The Government will provide the master list of M-Numbers for the Contractor to utilize. The Contractor must ensure 100% correlation between physical materials, the Government-provided M-Numbers, and all electronic tracking ledgers.

3.2 On-Site Representative Services

The Contractor shall station one (1) full-time, qualified On-Site Representative at the Government facility during core hours (0600 - 1430).

• Duties: The representative shall perform inventory cycle counts, physically receive incoming shipments, stock designated VMI bins, retrieve and issue parts to Government personnel and assign all issued materials to their respective WBS codes.

• Absence Coverage: The Contractor must maintain a qualified, certified backup representative who is fully trained on the facility's procedures. In the event of planned or unplanned leave of the primary representative, the Contractor shall deploy the backup to ensure zero downtime in on-site representation.

• Surge Support: The Government may require extended coverage hours, weekend support, or temporary additional personnel to accommodate production surges or emergency deadlines.

• Upon written notification from the Contracting Officer (CO) with at least forty-eight (48) hours' notice, the Contractor shall provide the requested surge support.

• Surge support hours shall be billed under a dedicated, pre-established Surge Support Contract Line Item Number (CLIN) and tracked back to the requesting program's WBS.

3.3 Quality Assurance, Certified Test Results (CTR), and

Certificates of Conformance (COC) The Contractor shall implement a rigorous Quality Assurance program to ensure all supplied materials meet strict military, aerospace, or industrial standards.

• Certifications Required: The Contractor shall deliver both Certified Test Results (CTRs) and Certificates of Conformance (COCs) for all raw materials, hardware, and critical fasteners supplied to the VMI.

• Traceability: All CTRs and COCs must be electronically cataloged and physically traceable to the specific manufacturer's heat/lot numbers and the assigned Government-provided M-Numbers.

• Non-Conforming Material: Any materials delivered without valid, matching CTRs and COCs, or found to be defective, shall be deemed non-conforming. The Contractor shall replace non-conforming materials at no additional cost to the Government within forty-eight (48) hours of notification.

3.4 Vendor Managed Inventory (VMI) and WBS Allocation

The VMI program supports multiple independent programs funded by separate Work Breakdown Structures (WBSs). To maintain accounting integrity, the Contractor must execute a point-of-use requisition system.

• Point-of-Use (POU) Tracking: When material is issued from the VMI bins, the On-Site Representative must record the transaction, linking the issued items, quantities, and unique M-numbers to the specific WBS provided by the retrieving technician.

• Segregated Billing: The Contractor must generate billing statements that cleanly isolate material consumption by WBS. Consolidated invoicing must utilize Sub-Line Item Numbers (SLINs) mapped directly to individual accounting reference numbers (ACRNs) to allow the Government to process payments from separate project funding sources.

3.5 Property, Equipment, and Services

3.5.1 Government-Furnished Property and Services (GFP/GFS)

The Government will provide:

• Dedicated physical space at the facility for VMI bins and an on-site workstation.

• Basic office furniture (desk and chair).

• Access to facility utility services (electricity, water, climate control) required to perform the duties.

3.5.2 Contractor-Furnished Property and Equipment (CFE)

The Contractor shall provide and maintain all equipment and tools necessary to execute the SOW, including:

• Digital Access: The Contractor is entirely responsible for their own IT connectivity, including high-speed mobile internet/cellular hotspots, laptops, tablets, barcode scanners, and inventory management software. Contractor systems must operate independently of the Government's local area network (LAN) infrastructure.

• Materials Handling Equipment (MHE): The Contractor shall provide all MHE (e.g., pallet jacks, specialized scales, carts, dollies) required to transport, weigh, and organize inventory within the VMI space. The Contractor must ensure all MHE is safe, compliant with facility standards, and operated only by certified personnel.

• Personal Protective Equipment (PPE) & Safety Gear: The Contractor must provide all necessary PPE and safety equipment for the on-site representative and surge personnel. This includes, but is not limited to, steel-toed safety footwear, ANSI-approved safety glasses with side shields, hearing protection, high-visibility reflective vests, and hard hats.

3.6 Waste Management and Environmental Compliance

The Contractor shall maintain a clean, organized, and safe VMI footprint and is responsible for disposing of all waste products generated through VMI operations.

• Packaging Waste: The Contractor shall collect, break down, and dispose of or recycle all shipping boxes, pallets, plastic banding, and protective materials on a daily basis.

• Industrial Off-Cuts and Scrap: Any raw material off-cuts, shavings, or unusable scraps resulting from material sizing or preparation at the VMI station must be collected and disposed of/recycled in compliance with Federal, State, and facility environmental policies.

• Hazardous Materials: If any materials require protective oils, solvents, or rust inhibitors, the Contractor must provide safety data sheets (SDS), obtain facility approval, and manage the collection and disposal of any contaminated wipes or chemical waste in accordance with EPA and host-installation guidelines.

4.0 Reporting Requirements

The Contractor shall submit the following reports to the Contracting Officer’s Representative (COR) in electronic format (Excel or CSV compatible):

4.1 Monthly Inventory Status Report

Due by the 5th business day of each month, detailing:

• On-hand inventory levels for all parts and materials.

• Reorder points, minimum/maximum levels, and current lead times.

• Discrepancies identified during weekly cycle counts.

4.2 Monthly Invoicing and Billing Reconciliation

Due with the monthly invoice, providing:

• An itemized list of all materails issued during the billing cycle.

• Subtotals and line-item allocations segregated by individual WBS codes.

• Active purchase order or funding document references for each WBS.

4.3 Weekly Material Consumption & WBS Report

Due every Monday by 0900 hours, detailing:

• All materials issued during the previous week.

• Allocation of costs and parts (including M-Numbers) to each active WBS.

• Run-rate analysis to warn project managers of impending budget or material limits.

5.0 Service Level Agreements (SLAs) & Key

Performance Indicators (KPIs) The Contractor’s performance will be measured against the following standards:

Performance Metric

Target Baseline Measurement Frequency

Consequence of Non- Performance

Inventory Fill Rate

≥ 98.5% of requested parts in stock at POU

Monthly Audit Failure to meet target for 2 consecutive months will trigger a formal Cure Notice.

WBS Allocation Accuracy

100% accuracy in assigning issued items to correct

WBS

Weekly Reconciliation

Any misallocated billing must be corrected and re-credited within 48 hours of discovery.

Representative Attendance

100% coverage during core hours (0600 - 1430)

Daily Sign-In Unexcused absence exceeding 4 hours without backup deployment will result in a daily labor rate deduction.

Documentation Compliance

100% of deliveries accompanied by correct CTRs and COCs

Every Delivery Shipments lacking proper documentation will be rejected and must be replaced at Contractor expense.

6.0 Deliverables Schedule

Deliverable ID Deliverable Title Frequency Recipients

DEL-01 Monthly Inventory Status Report

Monthly (by the 5th)

COR

DEL-02 Monthly Billing Reconciliation

Monthly (with invoice)

CO, COR, Finance

DEL-03 Certified Test Results & Certificates of Conformance

Upon Delivery of Batch

COR, QA Manager

DEL-04 Transition-In Plan 15 Days Post- Award

CO, COR

DEL-05 Transition-Out Plan

90 Days Prior to End of PoP

CO, COR

DEL-06 Weekly Material Consumption & WBS Report

Weekly (Mondays @ 0900)

COR, WBS

Managers

7.0 Transition and Closeout Services

7.1 Transition-In Period

The Contractor shall participate in a 30-day phase-in period prior to full contract assumption. During this time, the Contractor shall install storage bins, establish digital connectivity, load initial inventory to satisfy the defined min/max levels, verify M-number lists, test the WBS scanning software, and integrate the on-site representative.

7.2 Transition-Out Period

Upon contract expiration or termination, the Contractor shall cooperate fully with the Government and any successor contractor to ensure an orderly transition. The Contractor shall maintain full VMI operations and on-site representative staffing during the 30-day transition-out phase to guarantee zero interruption to ongoing Government programs.

7.3 Disposition and Return of Unused Materials

Upon the expiration, closeout, or termination of this contract, the remaining physical inventory in the VMI space shall be processed as follows:

• Standard Stock Inventory: All unissued standard materials, fasteners, and component parts remain the sole property of the Contractor. The Contractor shall remove these items from the Government facility at no cost to the Government within fifteen (15) calendar days of contract completion.

• Custom or Program-Specific Material: For any custom-cut raw materials or specialized parts acquired specifically for this contract, the Government retains the right of first refusal to purchase the remaining inventory at documented cost.

• Issued-but-Unused Returns: Any clean, undamaged materials previously issued and billed to a specific WBS, but not consumed, may be returned to the VMI prior to contract closeout. The Contractor shall credit the returning WBS account for 100% of the material’s billed value upon receipt.

8.0 Security, Safety, & Access Requirements

• Access Control: The On-Site Representative must be a U.S. Citizen and successfully pass a Government background check to obtain a facility identification badge and vehicle pass.

• Safety Compliance: The Contractor and its personnel shall strictly adhere to all Federal, State, OSHA, and local facility safety and environmental regulations. The on-site representative shall wear all mandatory Contractor-furnished PPE (hard hat, safety glasses, steel-toed boots, reflective vest) when working in designated active industrial zones. Failure to comply with facility safety standards will result in immediate removal of the representative.

9.0 Dispute Resolution

9.1 Informal Escalation Path

In the event of a dispute regarding inventory levels, billing allocations, quality certifications, or operational execution, the parties shall attempt to resolve the issue informally through the following escalation tiers:

• Tier 1 (Field Level): On-Site Representative and the government Work Breakdown Structure (WBS) Project Manager or Task Lead.

• Tier 2 (Management Level): Contractor Program Manager and the Contracting Officer’s Representative (COR).

• Tier 3 (Executive Level): Contractor Officer/Executive and the Contracting Officer (CO).

9.2 Formal Disputes

If an agreement is not reached through informal escalation within thirty (30) calendar days, the dispute shall be formally resolved in accordance with Federal Acquisition Regulation (FAR) Clause 52.233-1 (Disputes).

9.3 Continuation of Performance

Pending final resolution of any dispute under this contract, the Contractor shall proceed diligently with the performance of all technical requirements, on-site representative staffing, and material deliveries, and shall comply with any decision of the Contracting Officer. Under no circumstances shall the Contractor halt material support or pull the on-site representative due to an active dispute.

9.4 Invoice Separation during Disputes

If a billing dispute arises regarding a specific transaction, line item, or individual WBS weekly consumption report, the Contracting Officer’s Representative may reject or hold payment only on the disputed line items or specific WBS charges. The Government shall continue to process payments for all undisputed WBS allocations and SLINs to ensure prompt-payment standards are maintained for conforming materials.

3.6 Waste Management and Environmental Compliance