DDCN PPC Slide Deck_Final 4-23-2024 JCD Rev 1.pptx

DLA Distribution Cherry Point, North Carolina Pre-Proposal Conference

SP3300-24-R-5003

April 23-24, 2024 Controlled by: DLA Distribution J7 CUI Category: PROCURE Distribution/Dissemination Controls: FEDCON POC: Amber Whitney

The Nation’s Combat Logistics Support Agency Established 1961

Warfighter Always

CUI

CUI

Administrative and Introductions Administrative Introductions Breaks Rules of Engagement

Introductions Headquarters DLA Distribution, New Cumberland, PA Joshua Woodworth, Contracting Officer J7 Amber Whitney, Contract Specialist J7 Jennifer Eisenhour, Acquisition Assistance Lead J7 Cynthia Sheaffer, Functional Service Manager J7 Korey Leese, Distribution Center Representative J3

DLA Distribution Cherry Point, North Carolina Robert K. Taylor, Director Jennifer Davis, Deputy Director George Barr, Contracting Officer’s Representative (COR) Paula Adams, Alternate Contracting Officer’s Representative (ACOR)

Warfighter Always

CUI

CUI

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 SAM.Gov website.

CUI

CUI

Administrative and Introductions Question and Answer session will not be held at the conclusion of this presentation.

Written Questions and answers received before the 26 April 2023 12:00 Eastern Daylight Time deadline will be posted to SAM.Gov via an amendment to the solicitation.

Attendees are asked to submit their questions in the format specified in Section L-4 of the RFP, to the Contracting Officer and Acquisition Specialist:

Joshua Woodworth (Joshua.Woodworth@dla.mil) Amber Whitney (Amber.Whitney@dla.mil)

CUI

CUI

Administrative and Introductions Timeline of Activities – Day 1 (23 April 2024)

CUI

CUI

Administrative and Introductions Timeline of Activities – Day 2 (24 April 2024)

CUI

CUI

DLA Distribution

Warfighter Always

CUI

CUI

Mission Brief Overview DLA Strategic Plan DLA Distribution Mission, Vision, Values Distribution Leadership and Organization Chart DDCN Leadership and Organization Chart DDCN Business Profile / Facilities WMS Introduction Contract Overview Performance Work Statement Overview Solicitation Overview Site Tour

CUI

CUI

DLA Strategic Plan 2020-2026

MISSION

Sustain Warfighter readiness and lethality by delivering proactive global logistics in peace and war

VISION

The Nation’s Combat Logistics Support Agency... global, agile, and innovative;

focused on the Warfighter First!

PEOPLE AND CULTURE ARE AT THE HEART OF EVERYTHING WE DO

WHY

To serve the Warfighter and our Nation!

CUI

CUI

DLA Distribution

Our Mission Provide an agile, global DoD Distribution network that delivers effective and efficient distribution solutions which enable readiness and extend the operational reach of the combatant commands, military services, and other valued customers

Our Vision An adaptive, innovative organization which always delivers the Right Things… at the Right Place, at the Right Time!

Our Values Leadership, professionalism, and technical knowledge through dedication to duty, integrity, ethics, honor, courage, and loyalty DoD’s Joint Storage & Distribution Provider!

CUI

CUI

Distribution Leadership and Organization Chart

Commander Grafton D. Chase, Jr.

RDML

United States Navy Deputy Commander Perry L. Knight, SES Yokosuka, Japan

Tobyhanna, PA

Warner Robins, GA

DLA

Intelligence Europe

J8 - DLA

Finance

J6 - DLA

Info Ops

J1 - DLA Human Resources

Installation Support 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.

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

CUI

CUI

DLA Distribution Cherry Point, NC Director: Mr. Robert K. Taylor Deputy Director: Ms. Jennifer Davis

Warfighter Always

CUI

CUI

Organization Stakeholders Infrastructure DLA Distribution Cherry Point, NC

CUI

WARFIGHTER ALWAYS

DDCN Office of the Director

Government Operations Division

Gov. Ops. Div. Supervisor

Warehouse Supervisor

Warehouse Lead (2)

DPW (17)

Warehouse Supervisor

Warehouse Lead

DPW (10)

Contractor Operations Division

COR

Contractor

Inventory Integrity Division

AO Supervisor

Inventory Supervisor

Supply Technicians (6)

Quality Assurance Division

Quality Assurance Supervisor

QAE (4)

TA

Military Liaison

Systems Analyst (2)

Support Division

Support Division Supervisor

Security Specialist

Safety Specialist

Facilities Specialist (2)

Storage Specialist

Management Analyst (2)

Deputy Director DLA Distribution Cherry Point, NC

Director Robert K Taylor Deputy Director Jennifer Davis

CUI

CUI

CGA (Government - RED)

Quality Assurance Division Objective/Mission: Oversite and compliance for contracted and organic operations.

Primary Functions: Quality Assurance (QA) surveillances, SYNCADA Invoice Review/Approval, Syncada Certification, Supply Systems Analytics and troubleshooting for DDCN

Inventory Integrity Division Objective/Mission: Enhance inventory integrity via sampling and research validation Primary Functions: IAV validation/acceptance, Inventory sampling, joint inventory performance, HDV validation, location validations (B2F and F2B)

Support Division Objective/Mission: Support Functions and Programs Primary Functions: Safety, Security, Facilities maintenance, Government Equipment accountability, Administration, and Procurement (GPC Program).

DDCN Divisions

CUI

CUI

DDCN Divisions Government Operations Division (Government - BLUE) Objective/Mission: Retail storage and distribution in support of Fleet Readiness Center - East Primary Functions: Receiving, Pick, Stow, Issue, Unit of Use Conversions

Contractor Operations Division (Contractor - GREEN) Objective/Mission: Wholesale storage and distribution in support of local and worldwide customers.

Primary Functions: Receiving, Pick, Stow, Issue, Transportation, PPPM, Stock Readiness, Inventory Counts and Research Cherry Point Unique:

Unit move support for USMC (i.e. WTI, ITX) F35 (RR, LM, and PW)

(2) Contractor Owned Contractor Operated (COCO) sites

Storage:

8 buildings (2 COCOs) 3 Satellite PPPM Areas 5 lots Workload Issues (310,114 Yearly / 25,843 Monthly) Receipts (78,768 Yearly / 6,564Monthly) Packaging (424,744 Yearly / 35,395 Monthly) Inventory 74,067 NIINs 119,690 Locations $6.24 Billion of Inventory

Retail Wholesale

Storage:

1 building 1 Satellite Metal Room Workload Issues (198,994 Yearly/ 16,583 Monthly) Receipts (59,395 Yearly/ 4,950 Monthly) Packaging (13,659 Yearly/ 1,138 Monthly) Inventory 44,118 NIINs 45,515 Locations $368 Million of Inventory

CGA

DDCN Divisions Detail

CUI

CUI

Partners Wholesale Service Provider (Contractor) DLA Aviation DLA Disposition F35 Joint Project Office (JPO) Rolls Royce Pratt & Whitney Lockheed Martin Local Customers (Top 5) Fleet Readiness Center East (FRCE) local MALS-14 Cherry Point MALS-29 New River MALS-26 New River Arctic Slope Regional Corporation (ASRC Federal) DDCN Major Stakeholders ** Six F-35 Squadrons anticipated aboard MCAS Cherry Point in the future

ADP Site

MCB Camp Lejeune (50 Miles)

Greenville COCO (60 MILES)

F35

LOT

LOT

Newport COCO (10 MILES) DDCN Footprint

CUI

CUI

Building 148 (Retail Ops) Facility Features (46,086 Sq Ft.)

Retail Receiving Retail Storage Stock Profile Line Items – 44,118 Total locations – 45,515 Total Ext Cube – 43.2K Total Ext Qty – 2.1M Total Ext Dollar Value - $368.1M Workload 98% of Retail MRO workload 100% of Retail Receipt workload DDCN Building 148

CUI

CUI

Building 137 (Retail Metal Room) Facility Features (5,110 Sq Ft.)

Retail Storage Stock Profile 643 Line Items Total Locations – 650 Total Ext Cube – 537 Total Ext Qty – 129.5K Total Ext Dollar Value – 2.8M Workload 2% of Retail MRO workload DDCN Metal Room B137 (FRCE)

Building 159 (Wholesale Ops) Facility Features (137,000 Sq Ft.)

Command Suite Classified Storage Receiving, Storage and Small Parcel Stock Profile 47,541Line Items Total Locations – 65,857 Total Ext Cube – 104.9K Total Ext Qty – 14.2M Total Ext Dollar Value – $2.7B Workload 84% of Wholesale MRO workload DDCN Building 159

B159

CUI

CUI

Building 147 (Wholesale Ops) Facility Features (135,000 Sq Ft.)

Transportation & Shipping Pilferable Storage Receiving, Storage and Small Parcel Stock Profile 1,909 Line Items Total Locations – 3,130 Total Ext Cube – 44.9K Total Ext Qty – 2.1M Total Ext Dollar Value – $652K Workload 8% of Wholesale MRO workload 98% of Wholesale Receipt workload DDCN Building 147

CUI

CUI

Building 145 (Wholesale Ops) Facility Features (29,500 Sq Ft.)

General Storage Stock Profile 1,271 Line Items Total Locations – 2,213 Total Ext Cube – 46.9K Total Ext Qty – 519.5K Total Ext Dollar Value – $624.7M Workload 3% of Wholesale MRO workload DDCN Building 145

Building 4246 (Wholesale Ops) Facility Features (2,352K Sq Ft.)

General Storage Stock Profile 111 Line Items Total Locations – 182 Total Ext Cube – 85.0K Total Ext Qty – 2.6K Total Ext Dollar Value –$155M Workload 2% of Wholesale MRO workload DDCN Building 4246

CUI

CUI

Building 154 (Wholesale Ops) Facility Features (32,000 Sq Ft.)

General Storage (Bulk & Overflow) Stock Profile 340 Line Items Total Locations 454 Total Ext Cube – 62.8K Total Ext Qty – 81.6K Total Ext Dollar Value – $204.8M Workload 1% of Wholesale MRO workload

DDCN Building 154

CUI

CUI

Storage Lots 4246, 148, 154, 147N, 147S (Wholesale Ops) Area Features (Combined 222,089 Sq Ft.)

Bulk Storage ITSC approved Stock Profile 34 Line Items Total Locations – 51 Total Ext Cube – 75.7K Total Ext Qty – 760 Total Ext Dollar Value – $88.1M Workload

DDCN Outside Storage Lots

CUI

CUI

Building 150 (Wholesale Ops) Facility Features (73,432 Sq Ft.)

PPP&M Main site (Small Pack and Box Shop) F35 Site (40,450SF) Bay B Rolls Royce 19,650 Sq Ft Bay C Lockheed Martin 11,800 Sq Ft Bay D Pratt & Whitney 9,000 Sq Ft Sheet Metal Storage DSS Stock Profile 106 Line Items Total Locations – 112 Total Ext Cube – 195 Total Ext Qty – 1K Total Ext Dollar Value – $505K Workload < 0.5% of Wholesale MRO workload DDCN Building 150

Building 137 (Wholesale Ops) Area Features Detrashing / Decanning Inside the FRC-E fence line 3 PPPM satellite sites (De-canning and Canning) APUs (137 x 2) Large container items (1798) Workload 13% of packaging actions DDCN PPP&M Satellites (FRC East)

DDCN PPP&M Building 137 (FRCE) APU De-Canning

DDCN PPP&M Building 137 (FRCE) APU Canning

DDCN PPP&M Building 1798 (FRCE) Canning and De-canning

CUI

CUI

Greenville COCO (Wholesale Ops) Area Features (Combined 248,462 Sq Ft.)

Bulk Storage ITSC approved Stock Profile 1,449 Line Items Total Locations – 1,914 Total Ext Cube – 475.1K Total Ext Qty – 68.7K Total Ext Dollar Value –$1B Workload

DDCN Greenville COCO

CUI

Greenville COCO Images

CUI

CUI

CUI

CUI

CUI

Newport COCO (Wholesale Ops) Area Features (Combined 53,000 Sq Ft.)

Bulk Storage ITSC approved Stock Profile 174 Line Items Total Locations – 217 Total Ext Cube – 165.3K Total Ext Qty – 57K Total Ext Dollar Value – $449K Workload 0.5% of Wholesale MRO workload DDCN Newport COCO

CUI

Newport COCO Images

CUI

Newport COCO Images

CUI

CUI

SP3300-24-R-5003

Solicitation Overview

CUI

CUI

Section A Solicitation, Offer, and Award Key Points Ensure the Documents (SF33, SF30, proposal) are signed.

The Government intends to evaluate proposals and conduct discussions with offerors prior to the award of the contract.

CUI

CUI

Section B Supplies or Services & Price/Cost Contract Type - Period of Performance The resultant contract will be Indefinite Delivery/Indefinite Quantity (IDIQ) Hybrid with Firm-Fixed-Price (FFP), Cost Reimbursement (CR) No Fee, and Cost-Plus-Fixed-Fee (CPFF) The resultant contract will have a five (5) year ordering period.

After the initial year, Task Orders are anticipated to be issued for a one-year period. Special Projects or Surge and sustainment requirements are anticipated to be issued as separate Task Orders.

This acquisition is being solicited as a 100% small business set-aside.

CUI

CUI

Section B Supplies or Services & Price/Cost Minimum and Maximum:

Minimum and Maximum Quantities:

FAR 52.216-22 entitled “Indefinite Quantity”, the minimum value of services is $1,496,241.30 (for the entire contract). The maximum value of the services is $114,000,000.

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.

CUI

CUI

Section B Supplies or Services & Price/Cost

CLIN X001

Firm-Fixed-Price – Labor (Unless specifically identified separately in another CLIN, this CLIN encompasses PWS Sections C-1 through C-6)

CLIN X002

Cost Reimbursement (No Fee) – Scheduled and Unscheduled Equipment Maintenance (Parts Only) (PWS Section C-4.4 and its sub-paragraphs)

CLIN X003

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

CLIN X004

Cost Reimbursement (No Fee) - Material Support Costs (inclusive of CLINs 0001, 0006, 0007, 0009, and 0010)

CUI

CUI

Section B Supplies or Services & Price/Cost

CLIN X005

Cost Reimbursement (No Fee) - Travel for Training and Conferences (PWS Sections 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.6, CLIN X006 Labor Rate Table, for applicable labor categories and labor rates)

CLIN X007

Firm-Fixed-Price – Contractor Owned Contractor Operated (COCO) Facilities (Greenville) (J.2 PWS Section C-4M)

CLIN X008

Contract Data Requirements List (CDRL) – Not separately priced

CUI

CUI

Section B Supplies or Services & Price/Cost

CLIN 0009

Firm-Fixed-Price – Services to Perform Transition (PWS Sections C-1 Through C-6)

CLIN X010

Firm-Fixed-Price – Contractor Owned Contractor Operated (COCO) Facilities (Newport) (J.2 PWS Section C-4M)

CUI

CUI

Section B Supplies or Services & Price/Cost Section B Instructions Firm-Fixed-Price (FFP) PRICING ARRANGEMENT – CLINs X001: All labor shall be paid on firm fixed price per month basis. Offerors shall propose a Quantity * $1.00 (Unit Price) to arrive at a Total Amount.

Workload fluctuations within the 10% margin will not constitute a basis for a request for equitable adjustment (either upward or downward). Offerors should consider fluctuations within the range of 10% to be part of normal business operations and should price this risk into their price/cost proposals.

CUI

CUI

Section B Supplies or Services and Price/Cost 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.

CUI

CUI

Section B Supplies or Services & Price/Cost COST-PLUS-FIXED-FEE (CPFF) PRICING ARANGEMENT – CLINs X006:

Costs for Labor, Recurring Work and/or 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.

CUI

CUI

Section B Supplies or Services & Price/Cost

FIRM-FIXED PRICE (FFP) PRICING ARANGEMENT – CLINs X007 & X010:

Costs for Contractor Owned Contractor Operated (COCO) Facilities (Greenville and Newport). Offerors shall insert their cost for each CLIN.

CUI

CUI

Section B Supplies or Services & Price/Cost

REPORTING REQUIREMENTS – CLINs X008 (NSP):

Reporting requirements. Not Separately Priced (NSP)

CUI

CUI

Section B Supplies or Services & Price/Cost FIRM-FIXED-PRICE PRICING ARRANGEMENT - CLIN 0009: Transition costs are on a firm fixed price per month basis. Offerors shall propose a fixed monthly price.

Contract Total: Offeror shall enter an estimated price for the entire contract five-year ordering period.

CUI

CUI

Section B Narrative The Government intends to issue Task Orders for a full year of performance.

Workload Fluctuation: While historical and projected workload is provided, the projected workload is based upon current information and is subject to change based upon surges in need, customer demand shifts, changes in support approaches, changes in regulation, and worldwide events. The Government monitors fluctuations based upon overall workload contained in the projected workload and utilizes more than 10% fluctuation in the overall receipts and issues for more than six (6) months as the benchmark for recalculating current and projected workload. In general, workload fluctuations within the 10% margin will not constitute a basis for a request for equitable adjustment (either upward or downward). Offerors should consider fluctuations within the range of 10% to be part of normal business operations and should price this risk into their price/cost proposals.

CUI

CUI

Section B Narrative Service Contract Labor Standards At Minimum direct labor rate and benefits must be paid Offerors may pay higher than SCA rates Offerors may escalate SCA rates and benefits IDIQ Minimum and Maximum Guaranteed minimum is $1,496,241.30 Maximum is $114,000,000.00 Warehouse Management System (WMS) Fully implemented at DDCN Invoicing and excess funds Invoice within 90 days of performance completion Excess funds removed unilaterally after 90 days Limitation on Indirect Costs The Limitations on Indirect Cost Rates applies to cost type CLINs. Rates subject to the limitation include fringe, overhead, material handling, and/or General and Administration (G&A).

CUI

CUI

Section B Narrative Indirect Rates After Award If an Offeror fails to identify or disclose as part of its proposal an indirect cost rate that would otherwise be applicable to one of the support or subcontract cost items, it shall not be allowed to invoice for the indirect rate after award since the evaluation of its offer did not include that rate.

Access to Restricted Solicitation Attachments DoD SAFE Site drop-off/pick-up Technical Library (including SOPs) Provide legal name, email address, company name, and cage code to amber.whitney@dla.mil

CUI

CUI

Performance Work Statement Review

Key Points

CUI

CUI

Section C Performance Work Statement

LOOK OUT FOR CHANGES

Key points – please read:

The entire PWS in Attachment J.1 Site Specific requirements in Attachment J.2 Technical Exhibits (TEs) – Attachment J.7 Contract Data Requirement Lists (CDRL) – Attachment J.9 The TEs, CDRLs, and other Attachments were posted to SAM.Gov. If you are unable to open any document in SAM.Gov, please contact the Acquisition Specialist immediately Technical Library (TL) Documents and SOPs will be sent via DoD SAFE site, upon request

CUI

CUI

Section C Performance Work Statement

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

DDCN is located on the Marine Corps Air Station (MCAS) Cherry Point, North Carolina (largest MCAS in the world).

DDCN supports the 2nd Air Wing including three Marine Aviation Logistic Squadrons, MCAS Cherry Point, and the Fleet Readiness Center East (FRCE).

The primary mission of the Distribution Center is to manage and execute efficient and effective receiving, storage, inventory, packaging, Care of Supplies in Storage (COSIS), stock control, stock selection, issue processing, packing, shipping, and distribution of repair parts and secondary items in support of on-base, local, and worldwide customers. The Contractor shall operate the distribution operations at a minimum between the core hours identified in Attachment J.2, Site Specific Requirements. Additionally, the Contractor may be required to establish or increase level of effort for a 2nd and/or 3rd shift operations to meet customer requirements. The Contractor may be required to provide various equipment, such as different types of MHE to meet emerging/changing mission requirements.

CUI

CUI

Section C Performance Work Statement

Scope Provides worldwide support of all Marine Corps deployments, exercises, and mobilizations; provides rigging, loading, blocking and bracing, and traffic management services for essential air and ground support equipment, weapons, and vehicles.

Supplies all the preservation and packaging, hazardous material (HAZMAT) packaging, central receiving, rigging operations, certifying and traffic management office requirements to all units in the local area. The contractor shall provide traffic management requirements to support ordnance shipments from MC customers as well.

DDCN supports a significant amount of emergency interrupt type workload within all functional work areas due to the high concentration of local customers that walk-in and request customer support services for expedited processing of requisitions and special functions (e.g., transshipments, packaging, and container fabrication).

CUI

CUI

Section C Performance Work Statement

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 to be submitted with proposal Other Key Personnel resumes are to be submitted NLT 10 calendar days after the start of transition to the KO or designee.

QC Manager, Supply Systems Analyst, Inventory Manager, Safety and Occupational Health (SOH) Representative, Security Specialist, Transportation Manager, Warehouse Specialist Supervisor, Storage Specialist.

Non-Key Personnel (C-1.3.2) The Government developed their approach for performing the requirements of this contract using the labor categories as listed in Section C.1.3.2 in developing the Government’s approach for performing the requirements of this contract. This approach does not prohibit the Contractor from using different labor categories.

CUI

CUI

Section C Performance Work Statement

Personnel Clearances (C-1.4.4) A favorable Personnel Security Investigations (PSI) required to obtain a Common Access Card (CAC) and for access to the DLA Network and Government Data Systems.

Every Contractor employee shall obtain and possess a DoD Common Access Card (CAC) and/or an Access ID Badge, as required by Homeland Security Presidential Directive 12 (HSPD-12) dated 27 September 2012.

The Government requires T3 Personnel Security Investigations (PSI) to establish that applicants or incumbents either employed by the Government or working for the Government under contract are suitable for the job and are eligible for a public trust or sensitive position.

Contractor employee(s) shall possess the required Facility Clearance necessary for accessing classified information or material, and initiate PSI for its employees requiring classified access.

CUI

CUI

Section C Performance Work Statement

Personnel Clearances (C-1.4.9) Upon favorable review and initiation of the PSI to establish the suitability of an employee for the job and the approval for temporary Information Technology (IT) access pending final adjudication, but not less than fourteen (14) working days prior to the employee’s start date, the Contractor shall request IT eligibility for an employee requiring access and passwords to the Government-Furnished data systems.

All positions involving computer activities require a minimum IT II category eligibility(IT eligibility categories are defined in Section C-2.1, General Definitions.) The Contractor shall submit a CIR and a DD Form 2875 (See CIR and System Authorization Access Requests (SAAR) document in Technical Library) for temporary IT II eligibility, with final IT II eligibility contingent upon receiving a favorably adjudicated T3 (see paragraph C-1.4.4, Personnel Clearance).

CUI

CUI

Section C Performance Work Statement

Transition Plan (C-1.8) Smooth and orderly transition incumbent to new contractor 90 calendar days (1 Feb 2025 thru 30 Apr 2025) Govt reserves right to extend if and as needed Personnel Hiring Actions and Training (C-1.8.1) Identify which Personnel will be on-site during Transition Initiate all necessary personnel clearance actions, System Access Requests (SAARs) using the Account Management and Provisioning System (AMPs) Identify Subject Matter Experts for each Functional Area (i.e. Receiving, Warehousing, Transportation, Inventory, Etc.)

Assess the incumbent employees to identify if Trained to Standard and able to perform Complete job offers in a timeframe to afford hires attendance for Distribution Operations WMS Training during Transition Government Property (GP) (C-1.8.2) Inventory of GP to be conducted during transition Cell phones and laptops provided by the Government will be handled as Government Furnished Property (GFP) IAW applicable clauses. Technical Exhibit (TE) 3.5 will be updated with serial and cell phone numbers during Phase In.

Mission Stock (C-1.8.3) A 100% Inventory of all Controlled Items (only) will be conducted during the first 60-days of Transition Last 30 days are reserved for causative research, performance reviews, and to validate on-hand balances

CUI

CUI

Section C Performance Work Statement

Transition Plan (C-1.8) - Continued Work-In-Process (WIP) Reviews (C-1.8.4) The Government will determine the carry-over for WIP Government will monitor and provide weekly WIP reports during weekly transition meetings, in support of new Contractor planning efforts for full performance Final WIP review will be performed and documented on the last day of Transition Transition Reports (C-1.8.5) Contractor will provide weekly written reports to identify status of Transition tasks as required and IAW CDRL A001 Transition Plan and Weekly Reports\ Final walkthrough of all task will be performed and documented on the last day of Transition Required Plans, Programs and Procedures (C-1.8.6) Identifies various key documentation to be completed during Transition period

J.2 Transition - Site Specific Requirement (C-1.8M) Facility Transition Plan required if proposing a COCO facility other than those identified in Section 4.1M

CUI

CUI

Section C Performance Work Statement

Continuation of Essential Contractor Services (C-1.9) The Contractor shall perform Distribution Center operations during adverse situations or disruptions of normal workload assuring continuity of operations until the event causing the disruption is over Contractor shall provide a Mission Essential Contractor Services Plan (MESCP) with their technical proposal and update as necessary (CDRL A004) Preparedness Exercises (C-1.10) Contractor shall participate in exercises as directed throughout the contract, i.e. environmental and emergency response The Government will coordinate with the Contractor to participate in the Continuity of Operations Plan (COOP) exercise.

The Contractor shall participate in emergency and recall notification of personnel accountability exercise, as required.

The Contractor shall comply with the MCAS Cherry Point Destructive Weather Plan if, and when needed (J.2 Site Specific Requirement (C-1.10M)) Contract Transition-Out (C-1.11) Contractor requirements end of performance Warehouse Management System (WMS) Implementation (C-1.12) New SAP based WMS vice legacy DSS DDCN Implemented “go-live” September 2023

CUI

CUI

Section C

Definitions and Acronyms Section C-2 Resources:

The DoD Dictionary of Definitions and Terms is available on the Internet at https://www.jcs.mil/Doctrine/ TE 2.1 Definitions, Acronyms, and Abbreviations

CUI

CUI

Section C

Government Property (GP) Section C-3.1 Property or services supplied by the Government will be used only for performance of work under this contract. The Contractor is responsible for the appropriate use, maintenance, and care of property IAW the contract requirements.

Government Facilities (GF) Section C-3.1.1 Identified in TE 3.1 - The Government is responsible for maintaining, repairing, and replacing GF.

Government Equipment (GE) Section 3.1.2 Identified in TE 3.4, TE 3.5, and TE 3.6 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.

Equipment with a value of $250,000 or greater is considered Capital Equipment and will be maintained electronically as well.

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.

Cell phones and laptops provided by the Government, will be handled as GFP; TE 3.5 will be updated with serial numbers during Phase In.

All Information Technology (IT) assets, Data Systems, and WMS equipment and software will be provided and maintained by the Government.

CUI

CUI

Section C Performance Work Statement

Government Training - Section C-3.3 Identified in TE 3.2 Training to be provided by the Government is listed at TE 3.2 and the Distribution Operations Course Catalog for Contractor Personnel (see Technical Library) Distribution Operations Training will be scheduled and provided on-site during transition After transition, Distribution Operations Training will be performed quarterly, primarily by Distance Learning VTC, at the expense of the Government.

Additionally, 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.

CUI

CUI

Section C Performance Work Statement

Government Support Services - Section C-3.4 Custodial Environmental Forms Fuels Grounds Maintenance Mail Medical Military Training Nuclear Regulatory Commission (NRC) License Pest Management Radio Frequencies (RF) Records Management Refuse Collection and Recycling Telephone Utilities

CUI

CUI

Section C Performance Work Statement

Contractor Requirements - Section C-4 Government Facilities (C-4.1) The Contractor shall perform the distribution operations requirements of this contract in the GF made available to them IAW TE 3.1.

May be held liable IAW Section 5.1.1, Property Accountability Submit written notice to terminate use of any facilities no longer required for performance of the contract.

Identify needed repairs and/or maintenance, as required Provide access to GF during non-duty hours, as needed for performance of facility maintenance and repair actions.

Provide an escort if required during inspection, maintenance, installation or repairs to the facility Obtain advance written approval from the KO or designee prior to making any fixed improvements or any structural alterations to GF

CUI

CUI

Section C Performance Work Statement

Contractor Requirements - Section C-4M Contractor Furnished Facilities/Space (C-4.1M) The Contractor shall provide, as required:

IT infrastructure, commercial internet and WIFI services (if required) Outdoor storage with improved surface (if required) Storage racks and storage aids (if required) Material handling equipment (MHE) to include as required, but not limited to, forklifts, stock selectors, pallet jacks, flatbed, and stake trucks for local delivery, pick-up trucks, and vans Operating materials and supplies Support Services, such as security (IDS/CCTV or other acceptable means), facilities maintenance, janitorial services, grounds maintenance, utilities, etc.

Training, and support necessary to perform the requirements in this contract to include any Special Projects COCO Storage Space:

Currently at two (2) locations are being leased, one in Newport NC and the other in Greenville NC, being used to accommodate overflow storage space

CUI

CUI

Section C

Contractor Requirements - Section C-4 Equipment (C-4.2) Title to all property/equipment purchased by the Contractor transfers to the Government once the Contractor is reimbursed by the Government for the cost IAW Section B.

Buy versus lease analysis to document the more advantageous method to the Government KO or designee approval prior to lease/purchase DFARS 252.211-7003, Item Unique Identification and Valuation is included in the purchase requirement All contractor-provided property/equipment shall meet the same safety and utilization requirements as those established for government property/equipment.

Utilization of leased/vendor owned equipment reported using DPAS.

Utilization for metered equipment is an aggregate 80% Contractor Furnished Equipment (C-4.2M) Attachment J.12 identifies the equipment historically provided by the Contractor

CUI

CUI

Section C

Contractor Requirements - Section C-4 Materials and Supplies (C-4.3) The Contractor shall furnish all materials and supplies necessary to perform the contract requirements Contractor responsible for Personal Protective Equipment (PPE) appropriate for the work (e.g. safety shoes or boots, work gloves, safety glasses) Contractor shall comply with:

DLAI 4112 Pollution Prevention and Green Procurement DoD 4140.65-M Compliance for Defense Packaging: Phytosanitary Requirements for Wood Packaging Material (WPM) FAR Part 52.223-10 Waste Reduction Program RCRA, Section 6002, USC Title 42, The Public Health and Welfare, Chapter 82, Solid Waste Disposal, Sub-chapter VI, Federal Responsibilities Equipment Maintenance (C-4.4) Scheduled and Unscheduled Defense Property Accountability System (DPAS) Calibration and Certification Equipment Disposal

CUI

CUI

Section C Performance Work Statement

Contractor Requirements - Section C-4 Contractor Training (C-4.6) Contractor responsible for any costs exceeding those allowed under FAR Part 31.205-46, Travel costs, for attendance at Government off-site training.

Contractor responsible for all costs incurred for training in excess of the frequency required.

Travel costs for individuals failing Government training will not be reimbursed.

Enterprise-Wide Training identified in TE 3.2 will be tracked in the Learning Management System (LMS) Contractor responsible for determining which courses contractor employees shall attend to ensure the right employees are receiving training commensurate to their positions at the right time for Audit Sustainment and passing Independent Public Accountants (IPAs) audits.

Contractor responsible for maintaining CDRL A021, Training Report, for all courses or OJT required for the employee to obtain and sustain proficiency (e.g., Trained to Standard).

Contractor responsible to maintain copies of all training records, designations, and certificates onsite for the duration of the contract.

Contractor-Furnished Facilities (C-4.7) Overflow Stock (C-4.7.1) Leased at Newport and Greenville locations Contractor Responsibilities

CUI

CUI

Section C Performance Work Statement

Distribution Operations Training (C-4.6.1) Designate specific employees as Subject Matter Experts (SMEs) for each of the functional areas; intent the SMEs will provide day- to-day OJT in the use of WMS and Distribution Operations standard processes as needed.

For new Contractor employees or employees reassigned to another functional area, provide training (OJT or formal) within 30 calendar days after obtaining system access or date of reassignment Validate in a “P” status NLT 30 working days Obtain and maintain “Trained” Status for Distribution Operations functional area employees:

65% of within 30 days after the start of full performance, based on the Contractor taking full advantage of the Distribution Operations WMS Training provided during the Transition Period.

90% within 60 days after the start of full performance and maintained throughout all performance periods.

Cross-trained employees must be trained to standard in all functional areas that they are performing.

CUI

CUI

Section C Performance Work Statement

Hazardous Material and Hazardous Waste Training (C-4.6.2) IAW 49 CFR Transportation, Volume II, Part 172.704, Training Requirements, a new HAZMAT employee, of HAZMAT employee who changes job functions, may perform those functions prior to completion of Contractor or Government provided training and receipt of certification provided that:

The employee shall perform those functions under the direct supervision of a properly trained and certified HAZMAT employee; and The employee shall complete the training within 90 calendar days after employment or a change in job function At minimum, the Contractor shall provide the HAZMAT and HW training identified in TE 4.1, Contractor Training.

Upon successful completion of the HAZMAT Preparer Certification training, the Contractor shall submit a request for an appointment letter.

If trained Contractor employees leave contractor employment prior to working a minimum of 2 years after receiving and obtaining the HAZMAT Preparer Certification, the Contractor shall be responsible for additional training costs to train and maintain the number of personnel in the Contractor’s accepted proposal.

CUI

CUI

Section C Performance Work Statement

Specific Tasks (C-5) C-5.1 Distribution Services and Performance Requirements C-5.2 Receiving – Product Receipt/Evaluation C-5.3 Warehousing – Stow of Receipted Materiel, Pick and Pack C-5.4 Physical Inventory Control – Inventory Functions C-5.5 Transportation – Transportation/Traffic Management C-5.6 Packaging – Preservation, Packing, Packing, Packaging & Marking C-5.8 Special Projects/Surge and Sustainment C-5.9 Conferences All Section C-5 sections refer to both DSS and WMS references as detailed in the PWS. There may be circumstances where the legacy system DSS is used while the new WMS is modified or stabilized.

CUI

CUI

Section C Performance Work Statement

Distribution Services and Performance Requirements (C-5.1) The Contractor shall sustain an auditable environment by performing the daily operations of all warehousing and distribution functions IAW the current versions and all updates of the DLA Distribution SOPs and any communications (e.g., FRAGO) issued that changes the SOP requirements, and all other references as set forth in this contract using the DLA Warehousing Management System Inventory Requirements applicable to both wholesale and retail processes.

Enclosure 2 of each SOP provides the step by step standard process, ensuring compliance with Audit Sustainment manual controls.

Process Manuals provide additional details.

Requires use of WMS or applicable system and WMS changes in the performance of warehouse and distribution operations and shall complete all required transactions in WMS (C-5.1.3.1).

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

CUI

CUI

Section C Performance Work Statement

Distribution Services & Performance Requirements (C-5.1) Government provides best estimate, but workload factors change constantly The Contractor provides the appropriate leadership with management tools and processes to effectively manage the storage and distribution operations to successfully fulfill the DLA storage and distribution requirements to our customers IAW all contract requirements.

Provides the skills and expertise necessary to perform detailed analysis and monitoring of:

Physical distribution processes, Operations workflow, Interrelationships between functions and;

The actual incoming workload.

The Contractor assumes the responsibility for meeting all contract terms and conditions upon completion of transition.

CUI

CUI

Section C Performance Work Statement

Distribution Services and Performance Requirements - Audit Sustainment (C-5.1) DLA is in Audit Sustainment IAW DoD’s Financial Improvement and Audit Readiness (FIAR) Plan. Key to maintaining auditability is focusing efforts on the continuous standardized end-to-end processes.

Each time performance of the contract requirements deviate from documented and standardized processes there is an inherent risk to sustained audit readiness.

As a Contractor entity performing DLA Distribution requirements, the Contractor’s activities impact the integrity of DLA’s and each Military Service’s financial record/general ledger transactions.

Monthly Audit Assertion Program with the intent of shifting the focus from training to holding employees accountable for adhering to standard procedures CDRL A009 Assertion Memo – based on future ability to pass audit in upcoming month To be completed, based on the honest and accurate ability of the Contractor operated distribution areas to pass an audit Corrective Action Plan Quality CAP required for areas where Contractor cannot assert or can only somewhat assert

Always Under Audit

CUI

CUI

Section C Performance Work Statement Distribution Services and Performance Requirements – Period End Inventory Cut-Off Procedures (C-5.1) The Contractor implements cut-off procedures IAW DLA Distribution SOP/Guidance/FRAGO on a quarterly basis.

During Cut-Off, the Contractor shall:

Process all work in progress (WIP) – offloaded, receipted, stowed, picked, packed, offered and physically shipped by end of day for the identified period end cut-off.

Perform a total sweep of all Contract Distribution Center workload and footprint to validate that no inventory is in any state of WIP Ensure all material is physically and systemically stowed into location or physically shipped

CUI

CUI

Section C

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 Financial Improvement and Audit Readiness (FIAR) Managers Internal Control Program (MICP)/Annual Statement of Assurance (SOA) The above outcomes support Distribution’s Audit Sustainment resulting in an audit compliant environment and documented in the Assertion Memo CDRL A009 requirement.

Be compliant with FAR 52.246-4(b) and IAW CDRL A006 Quality Assurance Surveillance Plan (QASP)

CUI

CUI

Section C Performance Work Statement

Receiving - Section C-5.2 The Distribution Center receives material for storage and distribution that is transported by a variety of commercial and Government carriers. Characteristics of material received are included in TE 2.1 Definitions and Acronyms. The contractor shall receipt material IAW knowledge, skills, and documents acquired in WMS Distribution training and the applicable references, e.g. SOPs, Guidance, Instructions, and Regulations.

CUI

CUI

Warehousing – Section C-5.3 Stow of Receipts (C-5.3.1) General Warehousing/Storage Requirements (C-5.3.2) Care of Supplies In Storage (COSIS) (C-5.3.3) Maintain all material in storage in a Ready for Issue (RFI) condition Additional Storage Requirements (C-5.3.4) Material Potentially Possessing Explosive Hazard (MPPEH) Controlled Material Hazardous Material (HAZMAT) Radioactive Material (RAM) Shelf-Life Material Issue of Material (C-5.3.8) Transshipments (C-5.3.9) Local Delivery (C-5.3.10) Issues to DLA Disposition Services (C-5.3.11) Shipment Preparation/Outloading (C-5.3.12)

Section C

CUI

CUI

As stated previously, Distribution processes are performed using WMS IAW the Distribution SOPs, Process Manuals, which provide further details for standardized processing and all other references set forth in the contract, So I will not be walking through each of the C-5 functional areas, with the exception of point out either recent significant changes or changes that will be coming via amendment.

Warehousing best practices for housekeeping now defined and Quality Assurance Surveillance Activities established for this requirement. From an IPA perspective, evidence that a warehouse that is not well organized or trash is laying in locations and aisles, is a indication that the inventory accuracy may not be what it should and draws the IPA’s attention to those areas.

In the COSIS requirement area, we will be adding by amendment a priority schedule and completion timelines for completing DD Form 1225 and AF 364 disposition instructions.

Another move that was made from moving the Transshipment requirement from the C-5.5 Transportation section and locating it under the C-5.3.8 Issue of Material in the C-5.3 Warehousing Section

Physical Inventory - Section C-5.4 Physical Inventory Control Programs (PICP) goal is to provide a reasonable assurance of the existence and completeness of DLA and service owned material.

The Physical Inventory process consists of the following sub-processes:

Inventory count planning and scheduling Execute inventory count procedures Inventory adjustments review and recordation Pre-adjustment research, denial research, iSDR research Resolution and logistical reassignment Contractor performs PICP services that maintain integrity in mission stock asset balances IAW all applicable SOPs, instructions, guidance, and regulations .

CUI

CUI

Beginning in Oct 2018, DLA now has a requirement to inventory 100% of Locations from Oct – July each year. The months of Aug and Sept are reserved to accommodate the inventory of any new Locations added throughout the year.

The Contract requirements include the requirement for the contractor to perform all 1st and 2nd physical counts.

The Contractor continues to perform Floor to Book; Denial Research: Causative Research, Location Surveys, Item Data Maintenance and ADHOC Discrepancy Research and Resolution. Exception is if any research results in the WMS record balance to be adjusted, that research is provided to the Government to complete any record adjustments.

The Contractor 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.

Physical Inventory - Section C-5.4 In addition to the physical inventories, the contractor shall perform denial research, adjustment research, and retain appropriate documentation to support correcting the accountable record imbalances.

The contractor is responsible for:

identifying repetitive processing errors;

analyzing current inventory accuracy results;

developing corrective action plans to include in the QCP to resolve problems and mitigate future inaccuracies in supply system work processes.

The contractor shall maintain inventory accuracy for warehoused stock IAW TE 5.0, APLs.

CUI

CUI

Beginning in Oct 2018, DLA now has a requirement to inventory 100% of Locations from Oct – July each year. The months of Aug and Sept are reserved to accommodate the inventory of any new Locations added throughout the year.

The Contract requirements include the requirement for the contractor to perform all 1st and 2nd physical counts.

The Contractor continues to perform Floor to Book; Denial Research: Causative Research, Location Surveys, Item Data Maintenance and ADHOC Discrepancy Research and Resolution. Exception is if any research results in the WMS record balance to be adjusted, that research is provided to the Government to complete any record adjustments.

The Contractor 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.

Transportation – Section C-5.5 The contractor shall accomplish traffic management/transportation functions to support shipment processing and Government handling IAW the applicable references, e.g. SOPs, Guidance, Instructions, and Regulations.

The contractor shall provide traffic management for all issue transactions and traffic management support for other federal activities on request, to include deployment support (C-5.5.7M), in a manner that provides for the efficient, economical, on-time delivery of material to customers.

Additional Traffic Management/Transportation Requirements (C-5.5.6) Material Potentially Possessing Explosive Hazard (MPPEH) Controlled Material Hazardous Material (HAZMAT) Radioactive Material (RAM) Deployment Support

CUI

CUI

Clarified that Shipment Preparation completed in the Warehousing (C-5.3) functions, such as Hazardous Material Certifications, are validated by the Transportation Assistants in the Transportation (C-5.5) functions.

Packaging – Section C-5.6 The Contractor shall perform preservation, packaging, packing and marking material received, stored and issued to a minimum military packaging IAW applicable guidance. Contractor shall package to level A or B when exception data on the MRO or a disposition instruction from the item manager is received. PPP&M will be performed IAW the referenced SOPs and Regulations within the PWS.

Preservation, Packaging, Packing and Marking (PPP&M) (C-5.6.1) Container Reclamation (C-5.6.2) Container Fabrication Support (C-5.6.3) Wood Packaging Material (WPM) (C-5.6.5)

CUI

CUI

Section C Performance Work Statement

Special Functions – Section C-5.7 The Contractor shall perform functions for site specific requirements IAW Attachment J.2

Note: This section provides pertinent information required to be addressed in the proposal.

Attachment J.2, are in addition to the requirements listed in the J.1; which includes Customer and Site-specific requirements.

Contractors need to account for all the additional requirements in the J.2 during proposal development.

CUI

CUI

Section C Performance Work Statement…