DDCN_PPC_Slides_(5-1-19)_FINAL.pptx

DLA Distribution Cherry Point, NC Pre-Proposal Conference

SP3300-19-R-5003

April 30, 2019

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Administrative and Introductions Administrative Introductions Breaks Rules of Engagement Introductions Meg Ross, Chief of Contracting Rose Snavely-Howe, Chief of Acquisition Management Kevin Taylor, Director DLA Distribution Cherry Point, NC (DDCN) Paul McMillan, Deputy Director Jennifer Davis, Contracting Officer’s Representative, DDCN Karen Ghani, Contracting Officer Jason Taylor, Acquisition Specialist Shane Crusey, Acquisition Project Officer

Deliver the right solution on time, every time

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Administrative and Introductions Administrative Remarks The written information contained in the final solicitation and amendments overrules and supersedes any information presented at this conference which conflicts with the written documentation.

The attendance roster, as well as this presentation, will be posted to the Federal Business Opportunities (FBO) website: https://www.fbo.gov

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Administrative and Introductions A Question and Answer session will be held at the conclusion of the presentation.

Written Questions and answers received before the deadline will be posted to Federal Business Opportunities (FBO) via an amendment to the solicitation.

Attendees are asked to submit their questions to the Contracting Officer and Acquisition Specialist:

Karen Ghani (Karen.Ghani@dla.mil) Jason Taylor (Jason.1.Taylor@dla.mil)

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

DLA Distribution Cherry Point, NC

Robert (Kevin) Taylor Director

Paul A. McMillan Deputy Director

WARFIGHTER FIRST

FOR OFFICIAL USE ONLY

DELIVER THE RIGHT SOLUTION ON TIME, EVERY TIME

Mission:

Provide quality distribution services for the War Fighter with a primary focus on our industrial customer base.

Vision:

Provide quality distribution service for the War Fighter while reducing cost, improving customer service, and achieving audit readiness.

Values:

Exceed the standards for Safety, Quality, and EEO Foster teamwork and ownership for your work Promote continuous process improvement

DLA Distribution at Cherry Point Mission/Vision/Values

Agenda Organization Stock profile/Customer Business Synopsis DLA Distribution Cherry Point Infrastructure

DLA Distribution

Commander Kevin M. Jones

RDML

United States Navy

Deputy Commander Ms. Twila C. Gonzales Senior Executive Service Yokosuka, Japan

Tobyhanna, PA

Warner Robins, GA

Office of Inspector General

DLA

Intelligence Sigonella, Italy Europe

J8 - DLA

Finance

J6 - DLA

Info Ops

J1 - DLA Human Resources

Installation Support Operationalized Codes Expeditionary Bahrain

DLA

Central

DLA

Europe

DLA

Pacific Guam, Marianas Korea Pearl Harbor, HI

Puget Sound, WA

Red River, TX

Richmond, VA

San Diego, CA

San Joaquin, CA

Jacksonville, FL

Oklahoma City, OK Norfolk, VA

Commander Deputy Commander

Cherry Point, NC Corpus Christi, TX

Hill, UT Albany, GA

Anniston, AL

Barstow, CA

Equal Employment Opp. / SAPR

General Counsel

Small Business Chief of Staff

J9 – OM /

Exp. Log.

DLA Director

Business Devel.

J3 Current Ops J4 Future Ops

J5 Future Plans

J7 Acquisition

Susquehanna, PA

Strategic Distribution Platforms Regional Commands

Assigned to DLA Distribution

Operationalized Support

Supported Regional Command

Organizational Structure Command Team FTEs Director (GS-14) Deputy Director (GS-13) Management Analyst (GS-9)

DEPUTY DIRECTOR

Paul A. McMillan

GS-2030-13

DIRECTOR

Robert “Kevin” Taylor

GS-2030-14

ACCOUNTABLE

OFFICER

STORAGE SPECIALIST

SURVEILLANCE LEAD

QA / SURVEILLANCE

EVALUATORS

FACILITIES SPECIALIST

SYSTEM ANALYST

TRANSPORTATION

CLERK

MILITARY LIASION

USN

LEAD SUPPLY TECH

SUPPLY TECHS

SECURITY OFFICER

SAFETY OFFICER

MANAGEMENT

ANALYST

COR

Jennifer Davis

RETAIL MANAGER

RETAIL DIVISION

SERVICE PROVIDED

Stock Profile

NSNs by Owner

Army Navy Marines Air Force DLA Others 34 23863 9 130 60307 35 NSNs by Owner Army Navy Marines Air Force DLA Others 34 23863 9 130 60307 35 NSNs by Owner Army Navy Marines Air Force DLA Others 34 23863 9 130 60307 35 NSNs by Owner

Army Navy Marines Air Force DLA Others 34 23863 9 130 60307 35

Cube by Owner [PERCENTAGE]

[PERCENTAGE]

0.08% 0.46%

[PERCENTAGE]

[PERCENTAGE]

Army Navy Marines Air Force DLA Others 2449 905357 189 4891 244955 15257 Cube by Owner Army Navy Marines Air Force DLA Others 2449 905357 189 4891 244955 15257 Cube by Owner Army Navy Marines Air Force DLA Others 2449 905357 189 4891 244955 15257 Cube by Owner

Army Navy Marines Air Force DLA Others 2449 905357 189 4891 244955 15257

Dollar Value by Owner

[PERCENTAGE]

1.27%

Army Navy Marines Air Force DLA Others 21467301 3374286186 54489 32576077 674355365 2628342 Dollar Value by Owner Army Navy Marines Air Force DLA Others 21467301 3374286186 54489 32576077 674355365 2628342 Dollar Value by Owner Army Navy Marines Air Force DLA Others 21467301 3374286186 54489 32576077 674355365 2628342 Dollar Value by Owner

Army Navy Marines Air Force DLA Others 21467301 3374286186 54489 32576077 674355365 2628342

Our Customers by Service

AF ARMY CG DLA FMS MAR NAVY OTH 8.9748888743863622E-2 0.17988209445495879 3.0875880122111277E-2 5.5450412234331829E-2 5.2375876496479512E-2 4.2731695998027654E-2 0.4814186371975317 8.2019041818036792E-2 Organizational Profile Diverse Operation GOCO, Organic, COCO 7 Buildings and 3 Satellites 486K covered and 302K uncovered 82,843 NSNs in Storage – 40,296 Protected

4.3 Billion Inventory

Initiatives include:

Storage Reconfiguration

Maintain Audit Sustainment

Mission/Customer:

On Base Maintenance (FRCE)

MALS

Foreign Military Sales

Business Synopsis/Snapshot 349,542 filled in FY17 308,326 filled in FY18 (Oct-Jul) Customer Requisitions Transshipments Retail Off Base Receipts 97,227 in FY17 81,543 in FY18 (Oct-Jul)

13,676 in FY17 9,226 in FY18 (Oct-Jul) PPP&M/Workload 115,800 in FY17 82,503 in FY18 (Oct-Jul) Disposal Transactions 2,418 filled in FY17 1,595 filled in FY18 (Oct-Jul) 4,492 in FY17 4,121 in FY18 (Oct-Jul) Offerors are to rely on the workload information in Technical Exhibits 5.1 – Historical and TE 5.2 Projected Workload

Bay’s A,B,C,D

Metal Store Rm Bulk Metal B155 Lot

Retail Locations Wholesale Locations

DLA Distribution Cherry Point’s Foot Print

DLA Distribution Cherry Point

B159 Wholesale:

Main receiving deck for Small Parcel 75% of the workload 80% of re-warehouses or DTOs to Retail Classified Vault

DLA Distribution Cherry Point

B150 Wholesale:

PPP&M

Small items Box shop Bulk Storage Lot 148 Storage of A condition assets in containers B148 Retail Bays A-D Receiving Deck

B148 Retail (Bays A-D) B150 Lot B148

DLA Distribution Cherry Point

B147 Wholesale:

Main Receiving deck for all Bulk material Pilferable material

B145 Bulk storage of A and F condition assets

FY18/19 area is scheduled for Demo for F-35 expansion

B147 B145

DLA Distribution Cherry Point

B4246 Wholesale Stores F condition repairable assets Containerized items Wood boxes inside building

DLA Distribution Cherry Point

B137 and B1798 Inside the FRC-E fence line Wholesale 3 PPPM satellite sites APUs Large container items De-trash and re-can Retail 2 Retail Store Rooms Metal MA/ MC (bulk metal) Lot 155 Wholesale Storage of F condition large containers

Lot 155

B1798

B137

GR9 (Great Britain) AV8-B Harrier Contracted Materiel Warehouse NAVSUP Managed Program Navy purchase of 70+ AV8-B Airframes and Materiel Warehoused in Newport, NC (14 miles) COTS WMS accountability

14 Miles from DDCN State Highway

GR9 (Great Britain) AV8-B Harrier Contracted Materiel Warehouse

SP3300-19-R-5003

Solicitation Overview Sections A - B

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Key Points Ensure the Documents (SF33, SF30, proposal) are signed.

The Offeror is reminded that the Government reserves the right to award this effort based on initial proposal, as received, without discussions.

Section A Solicitation, Offer, and Award

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Section B Supplies or Services and Price/Costs

Contract Type - Period of Performance This is an Indefinite Delivery/Indefinite Quantity (IDIQ) Hybrid Fixed-Price-Incentive-Firm (FPIF), Cost Reimbursement (CR) No Fee, Cost-Plus-Fixed-Fee (CPFF), and Firm-Fixed (FFP) line items contract resulting from this solicitation.

This contract is for a five (5) year ordering period.

This acquisition is solicited as a Total Small Business Set-Aside pursuant to FAR Part 19, Small Business Programs

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Section B Supplies or Services and Price/Costs

Minimum and Maximum:

Minimum and Maximum Quantities:

FAR 52.216-19 entitled “Order Limitations”, the minimum value of services is $250,000.00 (for the entire contract). The maximum value of the services is the $48,000,000.00.

Ordering:

Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities designated in the Schedule.

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CLIN X001

Fixed-Price-Incentive-Firm – Services to perform Warehousing and Distribution Operations (Unless specifically identified separately in another CLIN, this CLIN encompasses Attachment J.1 - PWS Sections C-1 through C-6 and Site Specific Requirements in Attachment J.2).

CLIN X002

Cost Reimbursement (No Fee) – Scheduled and Unscheduled Equipment Maintenance Labor and Material (PWS Section C-4.4 and Sub-paragraphs).

CLIN X003

Cost Reimbursement (No Fee) – Non-Capital Equipment New or Replacement Costs (PWS Section C-4.2 Paragraphs C & D).

Section B Supplies or Services and Price/Costs

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

CLIN X004

Cost Reimbursement (No Fee) - Material Support Costs (inclusive of CLINs X001 and X006).

CLIN X005

Cost Reimbursement (No Fee) - Travel for Training/Conferences (PWS Section C-3.3, C-4.6, and C-5.9).

CLIN X006

Cost-Plus-Fixed-Fee - Special Projects/Surge & Sustainment (PWS Section C-5.8)(See Attachment J.5 Schedule B CLIN X006 Labor Rate Table for applicable labor categories and labor rates).

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

CLIN X007

Firm-Fixed-Price – Contractor Owned Contractor Operated (COCO) Facilities (Unless specifically identified separately in another CLIN, this CLIN encompasses Attachment J.2 PWS Section C-4M).

CLIN X008

Contract Data Requirements Lists (CDRLs) (Not Separately Priced).

CLIN 0009

Firm-Fixed-Price – Services to Perform Transition (Unless Specifically identified separately in another CLIN, this CLIN encompasses PWS Sections C-1 through C-6).

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Section B Supplies or Services and Price/Costs

Section B Instructions FIXED-PRICE-INCENTIVE-FIRM (FPIF) PRICING ARRANGEMENT – CLINs X001: All labor shall be paid on firm fixed price per Unit/EA Basis. Offerors shall propose Total Target Cost as a Quantity * $1.00 (Unit Price) to arrive at a Total Amount. The Ceiling Amount is calculated as 115% of Target Cost.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Section B Supplies or Services and Price/Costs

COST REIMBURSEMENT (NO FEE) PRICING ARRANGEMENT - CLINs X002, X003, X004 and X005:

The Government has provided an estimated cost exclusive of G&A, Material Handling, or other indirect rate. Offerors shall apply only their applicable indirect rate to this estimated cost to arrive at the Not-to-Exceed (NTE) amount. The Contractor shall be reimbursed for actual cost and their applicable indirect rate only. No fee shall be applied.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Section B Supplies or Services and Price/Costs

COST-PLUS-FIXED-FEE (CPFF) PRICING ARANGEMENT – CLINs X006:

Costs for Special Projects/Surge & Sustainment shall be reimbursed at actual cost plus applicable indirect costs and a fee. Offerors shall enter the Government provided Estimated Cost located in Section L. Offerors shall insert Estimated Cost, Fixed Fee Profit Percentage, Fixed Fee Profit Dollars, and Total Estimated Cost Plus Fixed Fee.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Section B

FIRM-FIXED-PRICE PRICING ARRANGEMENT - CLIN X007

REPORTING REQUIREMENTS - CLIN X008 (NSP):

Reporting requirements. Not Separately Priced (NSP)

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Section B

FIRM-FIXED-PRICE PRICING ARRANGEMENT - CLIN 0009

Contract Total: Offeror shall enter an estimated price for each year (one through five) and the total estimated price for the entire contract including years one through five.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Performance Work Statement Review

KEY POINTS

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Section C Performance Work Statement

Key points – please read:

The entire PWS in Attachment J.1 Site Specific requirements in Attachment J.2 Technical Exhibits – J Attachments (J12-J36) Additional J Attachments (J3-J11, and J38-J40) Technical Library Documents (FBO Restricted - if you are unable to open any document in FBO, please contract the Acquisition Specialist immediately) Contract Data Requirements Lists (CDRLs) identified in Section J – Attachment J.11

LOOK OUT FOR CHANGES

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Please ensure you read everything related to this solicitation that was posted to Fed Biz Ops to include the PWS (attachment J.1), the site specific requirements (attachment J.2) and all other attachments to include the technical exhibits, technical library and CDRLs, which are the reporting requirements. Any amendments will also be posted to FBO.

Scope Perform distribution services at DLA Distribution Cherry Point North Carolina (DDCN) IAW the requirements in the PWS, Attachments in Section J, and SOPs.

Gov’t owned facilities located on Marine Corps Air Station (MCAS) Cherry Point and contractor leased facilities located off-base in Newport, NC for the AV-8B PHM.

Performs wholesale material support worldwide Performs limited retail services:

Off base issues and local deliveries to non-FRCE customers;

COSIS, 1st & 2nd physical inventory counts.

Predominate customer is the Navy and Fleet Readiness Center East (FRCE).

Operates two packaging satellite operations .

Performs services for the AV-A8B program for major Customer NAVAIR See section Attachment J.2 for a description of other services

Agile and Flexible

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Scope: The Government is looking for a Contractor to perform warehouse and distribution operations requirements at DLA Distribution Cherry Point IAW the DLA SOPs/addendums, Process Manuals, DSS, and all other references.

Key Personnel (C-1.3.1) – The resumes of the proposed Key Personnel will be evaluated on how well qualifications and experience align with the position descriptions in this section.

Site Manager and Alternate Site Manager resumes submitted with proposal Other Key Personnel Resumes submitted after Contract Award Those individuals currently serving in a Key Personnel Labor Category performing the LCAT description, will be considered qualified, competent and eligible.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE The Key Personnel labor categories identified in the PWS. The Key Personnel labor categories are: Site Manager, Alternate site Manager, Inventory manager, Transportation Manger, Quality Control Manager, Supply Systems Analyst, Security Specialist and Safety and Occupational Health rep.

The Site and Alternate Site Manager resumes are submitted with the proposal IAW section L. All other key personnel resumes are required after contract award.

All of these labor categories have specific experience requirements, thus, resumes must be submitted with the Contractor’s proposal for all key personnel and we will be looking for that experience to be clearly articulated in the resumes provided.

Personnel Clearances (C-1.4.1) A favorable National Agency Check with Written Inquiries (NACI) required to obtain a Common Access Card (CAC) and for access to the DLA Network and Government Data Systems.

Site Manager, Alternate Site Manager and any Contractor employee(s) the Offeror proposes who will have access to or handle classified information or material to perform requirements identified in Section C and DLA Distribution SOPs must have appropriate security clearance (secret or higher) (Section L).

Possess a Facility Clearance Offeror has a Defense Security Service (DSS) approved facility clearance, or a statement confirming that the Offeror will be able to obtain a DSS approved facility clearance prior to Final Proposal Revisions (FPRs) (Section K).

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE All employees need a national agency check with written inquires to obtain a CAC card for access to the network and systems and access to the base. In addition, your site manager and alternate and the proposed employees needed to handle classified workload must have the appropriate security clearance.

We are experiencing an average time of 4-6 weeks for new employees to receive NACI.

The Contractor will need to have a Defense Security Service approved facility clearance or a statement confirming prior to contract award. There are further instructions in Section L& M that state the Government is going to validate an approved clearance exists prior to award.

Transition Plan (C-1.8) Personnel Hiring Actions and Training (C-1.8.1) Identify when Key Personnel on-site during Transition Identify Subject Matter Experts for each Functional Area How assessing incumbent employees Trained to Standard Completing job offers to attend Distribution Operations Training during Transition Government Property – Inventory during Transition (C-1.8.2) Mission Stock – Only Controlled Inventory during Transition (C-1.8.3) Work-In-Process Reviews – Government providing weekly WIP reports the last 30 days of Transition for Contractor planning efforts for full performance (C-1.8.4) Transition Reports (C-1.8.5) IAW CDRL A001 Transition Plan and Weekly Reports Required Plan, Programs and Procedures (C-1.8.6)

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Transition period is 90 calendar days from the effective date of the contract.

The Contractor is to clearly identify the Key personnel - transition team members responsible for executing a seamless transition and managing the POAM

There is some detailed information that we are looking for from the contractor to include an organizational chart and description of the process that will be used to ensure Personnel are hired and onsite IAW with the Contractor’s proposed transition timelines to meet the contract requirements.

In addition, the Government will be providing Distribution Operations training during transition so the contractor’s transition plan must describe what employees will be attending that training.

Listed are CDRL requirements and most are required during the transition period.

AMPS RBAC User Roles A user can only have one Primary DSS Role at any one time IAW Section C-1.8.1 – submit Systems Access Requests (SAAR) using AMPS

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE These are the primary user based role for DSS. The Warehouse Operations role provides system access to perform distribution transaction from receiving through issue and transportation. There is a separate primary roles for Inventory and supply system analyst functions. A user can only have one Primary role at any one time.

Roles requested should align to the appropriate labor category to perform the function. For example, the Inventory Manager would be the Inventory Manager role and not a Warehouse Specialist. You need to ensure you are complying with the SCA and CBA labor category descriptions when assigning roles or functions.

AMPS Secondary/Alternate Roles

Access requested via the Account Management and Provisioning System (AMPS) with a System Authorization Access Request (SAAR) and shall include detailed justification for why an employee needs the access to each particular secondary DSS role and what job functions the are/will perform.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE These are the secondary or alternate roles. COSIS is a secondary role. The Contractor will need to provide rationale when they submit a system access request detailing why an employee needs the secondary roles and what job functions they are to perform.

Government Facilities (GF) - Identified in TE 3.1 - The Government is responsible for maintaining, repairing, and replacing GF.

Government Equipment (GE) - Identified in TE 3.4 – TE 3.7 Offered in place, current condition and exclusive use for this contract - “Incidental to Place of Performance.”

Identified as follows:

Equipment with a value of $5,000 or more, is considered accountable property and will be maintained on one or more electronic hand receipt listing(s) in the Government EBS Property Accountability System. Capital equipment with a value less than $5,000 may be considered accountable based on capital threshold at the time of purchase.

Equipment with a value of greater than $300 and less than $5,000 is considered non-accountable property and will be maintained on a spreadsheet. Furniture and consumable supplies are not included.

All IT and Data Systems will be provided and maintained by the Government. EXCEPTION – Contractor WMS for AV-8B Program Held Material IAW Attachment J.2

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Government facilities are identified in Tech Exhibit 3.1 and Government Equipment is identified in TE 3.4 – 3.6 Attachments J.12 through J.14 which is provided for Contractor use in performance of this contract. That equipment will follow our accountable property process, which is anything $5,000 and above will be captured on our accountable property system with annual requirements for inventory. Any equipment provided that is greater than 300 but less than $5,000 will be maintained on a spreadsheet. All IT and data systems will be maintained by the Government. THE GOVERNMENT DOES NOT PROVIDE ALL REQUIRED EQUIPMENT TO PERFORM THE CONTRACT REQUIREMENTS.

Titles to any property/equipment purchased by the Contractor transfers to the Government after the Contractor is reimbursed for the cost and will be added to the accountable property system or our spreadsheet.

Contractor is responsible for the WMS that provides visibility and traceability of the AV-8B material in storage

Government Training (C-3.3) and TE 3.2 Training to be provided by the Government is listed at TE 3.2.

Distribution Operations Training offered on-site during transition.

After Transition Distribution Operations Training will be performed quarterly, primarily by Distance Learning VTC, at the expense of the Government.

The Government may provide training when process steps to the DLA Distribution SOPs are revised.

May require Contractor to provide specific Contract employee names or other information with a very short suspense.

***All hours for Government and Contractor training each year are to be accounted for in the proposed productive hours and be separately listed in Attachment J.39, Proposed Training Hours for Management, Support and Distribution Areas***

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Government provided trained is identified in TE 3.2. Distribution Operations training will be provided onsite during transition. After the initial distribution operations training is provided on-site, it will be offered quarterly, primarily by VTC. The Government does provide an annual training schedule for the purpose of planning attendance to needed or required training.

The Government may also provide training when process steps are revised in DLA SOPs, however it is the Contractor’s responsibility IAW contract requirement to ensure your workforce is trained on any steps that change. Unfortunately we don’t always have amble notice when revisions are coming out so the Contractor may be required to provide employee names to participate in the training or other information under a very short suspense.

All hours for Government and Contractor training each year must be accounted for in your Attachment J.39, Training Plan. This will be discussed when we get into Section L.

Contractor Training (C-4.6) Enterprise Wide Training identified in TE 3.2 will be tracked in the Learning Management System (LMS).

List of contract employees include Name, SSN, EDIPI, Job Title – CDRL A021 Attachment 1, 90 working days after start of full performance and within 15 calendar days for changes, additions or deletions.

Contractor responsible for determining which courses in TE 3.2, Government Training contractor employees shall attend to ensure the right employees are receiving the right training at the right time for Audit Sustainment and passing Independent Public Accountants (IPAs) audits.

First training status reporting Contractor certification and validation of employee proficiency for performance of distribution operation functions IAW the DLA Distribution SOPs Enclosure 2 NLT 60 working days after start of full performance - Monthly thereafter.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Will be adding via amendment the requirement to submit the training plan (Attachment J.33) that identifies dates training completed by training course and employee monthly. I will discuss the revision when we review Section L.

Distribution Operations Training (C-4.6.1) Designate specific employees as Subject Matter Experts (SMEs) for each of the functional areas For new Contractor employees or employees reassigned to another functional area:

Do not permit employees in a U status to work Obtain a “Trained” status after 180 days and sustain throughout all performance period.

Obtain and maintain “Trained” Status for Distribution Operations Functional Areas for employees using DSS for job functions:

65% of within 90 days after the start of full performance, based on the Contractor taking full advantage of the Distribution Operations/DSS Training provided during the Transition Period.

90% within 120 days after the start of full performance and maintained throughout all performance periods.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE The intent is that the SMEs will be work leaders or trained employees to provide day-to-day OJT in the use of WMS and Distribution Operations standard processes in following and adhering to the DLA Distribution SOP Enclosure 2s to new employees and employees that require additional OJT to obtain Trained to Standard throughout contract performance.

Do permit employees in a U status to work independently until a minimum of 15 working days of OJT is provided and the employee is validated in a P status. New employees should be validated in a P status NLT 30 working days after the employee has obtained system access or date of reassignment. New employee are to obtain a “Trained” status NLT 180 calendar days after the employee has obtained system access or date of reassignment for current employees and sustain throughout all performance periods.

CDRL A021 – Training Report

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE CDRL A021 is the report used document the trained to standard status for employees. Attachment 1 is used during transition to provide employee information to be entered into LMS. Attachment J.39 is also updated during transition after employee assessment for any required training and is updated annually by June 30th each year. Attachment 2 has changed in this RFP and will discuss on the next slide, and this is a monthly reporting requirement. Attachment 3 is a quarterly requirement for the # of employees trained to operate MHE IAW OSHA.

CDRL A021 – Training Report

Trained (T) – Employees who successfully completed (70% or above passing score) Distribution Operations training identified for that individual by the Contractor AND/OR the Contractor Supervisor or Manager for each employee certifies that the employee has received on-the-job training and validated proficient IAW the DLA SOPs in the applicable functional area tasks and can perform the functional area tasks to standard, and sustain proficiency.

Progressing (P) – Employees who did not successfully complete or have not taken the Distribution Operations training identified for that individual by the Contractor, but has received on-the-job training using the DLA Distribution SOPs in the applicable functional area tasks and the Contractor Supervisor or Manager for each employee certifies that the employee has received on-the-job training and validated as progressing IAW the DLA SOPs in the applicable functional area tasks to work independently.

Untrained (U) – Has not completed the Distribution Operations training identified for that individual by the Contractor and has not received on-the-job training for 45 days using the DLA Distribution SOPs in the applicable functional area tasks with significant oversight by an assessed trained employee or by the supervisor. Employees in a U status may not work independently for a minimum of 15 working days and until the employee is validated in a P status.

The Contractor shall maintain documentation that supports the Contractor employee’s assessment, such as Encl 2 of the SOP annotated with employee name, date and assessment that employee followed each step and understands and performs the controls and provide to the KO or designee upon request.

Attachment 2 Example

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Attachment 2 is the format to report the employees trained to standard by SOP and Distribution Ops training

CDRL A021 – Training Report – Atch 3

MHE Training & Licensing – The Contractor shall add rows for any other equipment requiring licensing, certification or specialized training.

DD

Additionally, the Contractor shall maintain the following information for each employee requiring an operator’s permit and provide to the KO or designee upon request:

a. Employee name and proof of license or certification.

b. Vehicle or equipment to be operated.

c. Capacity of vehicle or equipment to be operated.

d. Nature of operation as part of duties (e.g., basic requirement for the job, incidental to the job).

Special endorsements that need to be added to an operator's license (i.e. HAZMAT, Air Brakes, Commercial Driver's License, etc.).

The Contractor shall report MHE training and licensing in Attachment 3 of this CDRL Attachment 3 Example

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Specific Tasks (C-5) C-5.1 Distribution Services and Performance Requirements C-5.2 Receiving – Inbound Traffic Mgt. through Product Receipt/Evaluation C-5.3 Warehousing – Stow of Receipts through Shipment Prep C-5.4 Physical Inventory – Inventory Functions C-5.5 Transportation – Transportation/Traffic Management Functions C-5.6 Packaging – Preservation, Packing, Packing, Packaging & Marking C-5.7 – C 5.9 Site Specific – Attachment J.2 C-5.8 Special Projects, Surge and Sustainment - Attachment J.1 C-5.9 Conferences - Attachment J.1

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Distribution Services and Performance Requirements (C-5.1) Perform all warehousing and distribution operations IAW the DLA Distribution SOPs/Addendums, Process Manuals, using WMS and all other references as set forth in this contract to complete the specific distribution function that is included in the PWS Requires Contractor to ensure using the current version of the DLA Distribution SOPs/Addendums and Process Manuals while performing daily operations by signing up for alerts to be notified when a SOP or Process Manual is revised or added to the SharePoint site.

Encl. 2 of each SOP provides the step by step standard process, ensuring compliance with Audit Sustainment manual controls Process Manuals provide additional details.

Required use of WMS and WMS changes in the performance of warehouse and distribution operations and shall complete all required transactions in DSS (C-5.1.3.1).

Use of RF handheld equipment in the performance of all DSS functions when and where the functionality exists.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Distribution processes are performed using the Distribution Standard System (DSS) IAW the Distribution SOPs, Process Manuals, which provide further details for standardized processing and all other references set forth in the contract.

You need to ensure you have identified staff responsible for signing up and receiving the alerts for when SOP changes are posted to the sharepoint site and a process established that communicates and trains the changes to the employees performing the work.

Cherry Point does have the RF functionally in all of their facilities and outside storage areas

Distribution Services and Performance Requirements (C-5.1) The Government provides its best estimate for projected workload for Task Order periods of performance. However, workload factors change constantly. The Contractor shall provide the skills and expertise necessary to perform detailed analysis and monitoring of all physical distribution processes, operations workflow, interrelationships between functions, and actual incoming workload to obtain valuable insight enabling to schedule optimization and maximum workforce effectiveness required for processing the actual workload IAW the APLs and all other contract requirements IAW CDRL A009, Management and Contract Compliance Plan (MCCP).

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE CDRL A009 is new in this RFP -

Standardization and Audit Sustainment (C-5.1) Key to maintaining audit sustainment - focusing efforts on the continuous standardized end-to-end processes. (example: receipt, stow, care of stock in storage (labeling (materiel and locations), packaging, planography, NIIN to Location ratio/space efficiency, one NIIN to one location accuracy), physical inventory, pick, pack, issue/ship) processes.

PWS requirements include references to DLA Distribution SOPs (includes Standard Process Maps, Controls over Financial, Non-Financial Reporting and Operational Controls) and references to each of the Process Manuals, which provide further details for standardize processing Contractor to perform the Distribution processes IAW all referenced DLA Distribution SOPs and Process Manuals The SOPs includes references to specific Government labor categories. The labor categories in the awarded contract take precedence.

All other references in the SOPs shall be adhered in the performance of this effort.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE The key to audit sustainment and advancement of our opinion, is accuracy in the execution of each process a worker is assigned, to include their Lead/Supervisor/Manager. The Contractor is accountable for the opinion along with the Dist Center CDR/Deputy. We are one team.

PWS requirements include references to DLA Distribution SOPs, which includes the Standard Process Maps that demonstrate ‘what to do and when/why’ plus all of the Controls executed within the process or performed over the process for management oversight/adherence assessment Controls in the process mitigate risk for DLA’s Financial and Non-Financial aspects of Distribution Operations, to include safety and security.

SOPs references to the Process Manuals or desk guides, provides further details for standardized processing. The SOPs also provide references to higher level DLA and DoD Policies that govern DLA’s business

Standardization and Audit Readiness (C-5.1) Support the Government for data gathering, testing, transaction tracing and evidential matter (EM) as directed by the KO or designee, for Independent Audits and all testing to support audits – RECURRING EVENT.

Identify specific Contract employees to serve in the role as “Information Gatherers (IGs).”

Data Gathering includes retrieval of EM, reports and analysis Walk-Throughs of the process with auditors to demonstrate Process Adherence Transaction Tracing requirements supporting surveillance/audits performed by IPAs or other DOD Orgs Transaction Tracing and Evidential Matter (EM) collection with a detailed email outlining the EM requirements.

Sample sizes estimated to be up to 45 sampler per EM request – multiple requests received per week Information Gatherers search for the previous week's EM to support balance affecting transactions (receipt, inventory, MRO/transportation).

Two days to collect and submit the requested EM. The two day turnaround is necessary for all other work associated with transaction tracing to be completed on time to meet IPA deadlines.

Info Gathers primary responsibility when EM requests received

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Identified Data Gatherers support the Government for: Data gathering, including retrieval of evidential matter, reports, and analysis, Walk-Throughs of the process with auditors to demonstrate Process Adherence as part of Controls or Substantive Testing and Transaction Tracing requirements supporting surveillances/audit as directed by the KO or designee, for all Financial or Operational audits performed by Independent Public Accountants or other DoD organizations.

IGs search electronic database (DACS-RM) and other DoD and Commercial systems and hard copy files (as applicable) for Evidential Matter (EM). When EM requests are received, the functions for data gathering become the identified employees priority functions.

In some instances, such as the Year End portion of the annual Full Financial Statement Audit(s) for DLA/DoD, Transaction Tracing and Evidential Matter (EM) collection will begin the week after the IPA(s) site visit(s) in July or August and last through the end of the fiscal year/onset of next fiscal year (until the observed NIIN/transaction is closed out) and IGs will support all research IAW detailed instructions from DLA Distribution Compliance/Audit Leads that will outline the EM requirements. Two days maximum timeline is permitted to collect and submit the requested EM. The two day turnaround is necessary for all other work associated with transaction tracing to be completed on time to meet audit deadlines as established by DLA HQs.

Quality Control Plan (QCP) (C-5.1.4) Requirements to support DLA’s Quality Management System (QMS) which includes Service Provider Quality Control (QC) Government Quality Assurance (QA) Independent DLA Distribution Review of Performance Data and QC/QA outcomes Independent Public Auditor (IPA) to support Audit Sustainment IAW the FAR The above outcomes support Distribution’s Managers Internal Control Program (MICP) Annual Statement of Assurance (SOA) Compliant with FAR 52.246-4(b), “Inspection of Services-Fixed Price”

Self- Identification

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE As the first line of defense to preventing non-conforming services, the Contractor’s QC Plan is instrumental. Our contracts require a QCP that is proactive, providing a leading indicator for root cause analysis and facilitating corrective actions close in time of place. The QCP should be the tool the contractor uses to assure contract compliance that employees are following the audit compliant processes in the contract referenced Standard Operating Procedures to maintain audit sustainment and all other terms and condition of the contract. When we discuss QC with our contractors we stress self-identification is preferred as it supports the overall Distribution Quality Program for Audit Sustainment. Additionally, it proves the QCP is proactive, providing the contractor the opportunity to remedy the non-conformance before it may be identified by QA or other independent reviews or audits. It is always better to identify and correct an issue yourself then for someone else to identify it for you.

We have developed and implemented policy, procedures, training and an automated quality management tool to schedule and document QA surveillance activities. This has provided standardized documentation processes which identify problem areas that may require the contractor to submit a Corrective Action Plan. We perform QA surveillance on this plan to monitor and track the progress of the corrective actions to mitigate future non-conformances in the identified area.

Quality Control Plan (QCP) (C-5.1.4) - continued CDRL A006 Requirements Controls over financial, non-financial and operational requirements that must be included as part of the QCP surveillance requirements (Attachment 1) Monthly Report – Standard Format (Attachment 2) Scheduled vs. Completed QC Inspections – explanation for QCs not completed Conforming vs. Non-conforming Copy of all QC Corrective Action Plans (Attachment 3) and status of implementation As required testing used to assess all employees knowledge of and adherence to the Distribution SOPs and preparation for Independent Audits (Attachment 4) Copies of all completed non-conforming QC inspection reports provided to the COR within 1 working day Quality Assurance Surveillance Plan (QASP) Uses a variety of tools and surveillance methods and review of documents and reports Actual observations of the processes as it occurs – Direct Observations Post performance random sampling Mock Audits using the SOP Encl. 2 to validate assessed Trained status

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE CDAL A006 requires the Contractor to include the manual financial, non-financial and operational audit controls as part of the QCP and they are listed in attachment 1 of the CDRL.

Attachment 2 is the standard report format to be sued to report the scheduled vs. completed QC inspections, the number of conforming and non-conforming and a list of the Corrective and Preventive Action Request (CPAR) that were generated. Attachment 3 provides the CPAR format to use and attach to the monthly QC report.

Attachment 4 is an as required testing on the manual controls to assess all employees knowledge of the work and adherence to the Distribution SOPs and preparation for Independent Audits

Quality Assurance Surveillance Plan (QASP) Uses a variety of tools and surveillance methods and Review of documents and reports Actual observations of the processes as it occurs – Direct Observations Post performance random sampling Mock Audits using the SOP Encl. 2 to validate assessed Trained status

Physical Inventory Control (C-5.4) Performs 1st and 2nd physical count for TPIC Inventories not related to RECON samples NLT 10 calendar days after the Inventory Cut-Off Date (ICOD) for all TPIC Inventories RECON Samples (TPIC P) within 3 calendar days after the Inventory-Cut-Off Date Perform Floor to Book; Denial Research: Causative Research, Location Surveys, Item Data Maintenance and ADHOC Discrepancy Research and Resolution. Research results are provided to the Government who will perform any substantiated adjustments to the DSS record balance.

Government performs all 3rd physical counts, pre-adjustment research, causative research, inventory adjustment vouchers and any other actions that adjust entries to the accountable property system of record.

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Beginning in Oct 2018, DLA has a requirement to inventory 100% of NIINs from Oct – July each year. The months of Aug and Sept are reserved to accommodate the inventory of any new NIINs added throughout the year.

The Contract requires the contractor to perform all 1st and 2nd physical counts, regardless of the Type Physical Inventory Code (TPIC). Performs 1st and 2nd physical count Inventories not related to RECON samples NLT 10 calendar days after the Inventory Cut-Off Date (ICOD) for all TPIC Inventories and RECON Samples (TPIC P) within 3 calendar days after the Inventory-Cut-Off Date

Perform Floor to Book; Denial Research: Causative Research, Location Surveys, Item Data Maintenance and ADHOC Discrepancy Research and Resolution. Research results are provided to the Government who will perform any substantiated adjustments to the DSS record balance.

The Government performs all 3rd physical counts, pre-adjustment research, and the actual record adjustments based on validated contractor provided research.

Physical Inventory Control (C-5.4) Accountable for all inventory accuracy APL of 98% Participates in events regarding the inventory accuracy rate performance, sharing challenges, lessons learned and best practices.

Perform root cause analysis on inventory discrepancies, track root cause trends, develop corrective actions and monitor and report results of those corrective actions Provide information to support the MIMR monthly reporting on inventory actions/outcomes Conduct post-process QC checks to ensure the corrective actions have mitigated further discrepancies in the identified areas Participate in large dollar value inventory adjustment reenactments, documenting, performing root cause analysis during the reenactment and developing corrective actions plans.

Participate in other audit sustainment / inventory accuracy events as the audit program evolves.

Section C

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Inventory accuracy is key in achieving and maintaining audit preparedness. This is a list of activities the contractor participants in and provides details in the state of their inventory program to meet and maintain a 98% inventory accuracy.

Site Specific Distribution Services - Attachment J.2, are in addition to the requirements listed in the J.1; which includes…