SP800017R0008_attachments.pdf

Attachment A

Performance Work Statement (PWS) Strategic Buffer 300M Grade Steel

1.1 Background:

The Under Secretary for Acquisition in September 1992 stated that Defense Logistics Agency (DLA) would be the principal agent for the Warstopper Program. Shortly thereafter, Congress created a separate Warstopper budget line to fund the preservation of critical industrial capabilities for items that had a declining industry base. DLA's Warstopper Program has been successful in providing a stable industrial base for selected Warstopper items managed by the Agency. DLA increased industry's capacity to provide surge and sustainment of selected Warstopper items and has a mission to mitigate risk associated with surge and sustainment of products utilized by the Warfighter.

Strategic materials are a known constraint in meeting Surge & Sustainment Planning Requirements (S&SPR) for the Department of Defense (DoD). As a result, the Warstopper Program Management Office (WPMO) established a pilot project in FY2008 to establish and test concepts for using material buffers to reduce the manufacturing wait time and meet Surge and Sustainment Requirements as they occur. The initial buffers covered two grades of steel and three fibers.

Incorporating the lessons learned from the pilot project, in 2012, the Government awarded a contract for a strategic steel grade 300M buffer to enable DoD contractors access to this material on an expedited basis to support wartime mobilization, military combat operations/readiness and contingency support. This contract will expire at the end of September 2017.

1.2 Objectives

The objective of this requirement is to establish, manage and maintain an inventory of steel grade 300M. This material buffer will make 300M readily available to support manufacturers of DoD/DLA repair parts. The reserve buffer inventory will serve as a mitigation strategy to ensure availability of 300M to meet production and sustainment of DLA procured products.

1.3 Scope

The scope of this requirement is to seek offers from mills/producers that are currently certified for the production of steel Grade 300M to establish, manage and maintain at the Contractor’s facility a strategic material buffer to improve availability (lead time) of steel Grade 300M that would directly support manufacturers of DoD/DLA repair parts. The material buffer should contain a maximum monthly quantity for the various forms (size and shape) and guarantee a lead time for the material requirements listed in Table 1, Maximum Monthly Requirements.

Uninterrupted access to the 300M inventory will allow for commercial capability to support wartime mobilization and sustain military combat operations.

Table 1, Maximum Monthly Requirements

Grade For Reference Only Monthly

Requirement (Pounds) Specifications Applications

300M

AMS-6257, AMS-6417, AMS-6419,

BMS 7-26, BMS 7-26N TYPE 1, C-05-

1190, CASTLE METALS K44220-03,

CE-0896F, CPS 4911, DMI-300M,

DMS 1935, K44220-01, K44220-05,

C-05-1190B TYPES A&B, MIL-S-

8844D+AMD#1 Class 3 and United Defense 0300M Revision I

Aerospace and other 20,581

Torsion bars

11,297

1.4 Material Buffer:

1.4.1 The Contractor shall produce, at a minimum, the stated maximum monthly material quantity from the buffer. The Contractor should use its commercial sales to offer material with the smallest minimum buy quantity (through Material Service Center type of services).

1.4.2 The Contractor shall have a Stock Rotation/ Quality Control Process Surveillance and Testing Plan (QC Plan) that maintains a mix of melts, where possible, to maintain the freshness and/or ensure incorporation of any technological advances resulting in industry wide changes to specifications or production techniques. This QC Plan shall account for expected material yield loss and/ or scrap that may occur during the processing of material.

1.4.3 Changes that negatively impact supplier capability to produce the products at the maximum quantities listed in Table 1 must be reported in writing to the Contracting Officer within ten (10) working days after the supplier becomes aware of such an impact.

1.4.4 Release of Buffer Material:

All material orders will be Business-to-Business transfers that include all of the material title, warranties and certifications including the maintaining of the Chain of Custody.

Note: The solution will not be Government Furnished Material (GFM). All orders will be at the contracted pricing (for those with existing contracts with the seller) or at the best available pricing (for those without an existing contract). No premium fees apply for using the buffer. The Contractor shall fund the replenishment and/ or reconstitution of the buffer materials with funds obtained from these Business-to-Business orders.

The Contractor shall have a material release execution plan that successfully self-executes the buffer for vendors with DOD contracts using the following guidelines:

a. Release from the buffer requires the:

1. Buyer’s/requestor’s name,

2. DoD contract number, and

3. Defense Priorities and Allocations System (DPAS) rating

b. Utilize the buffer on a regular basis to meet DoD contract requirements.

c. The Contracting Officer may establish by exception:

1. A monthly reserved quantity that would require Contracting Officer approval for release per instruction provided by the Contracting Officer; and/or

2. Restrict the total quantities released in a month to a single order (but an order may span multiple months); and/or

3. Set a priority on any DOD contract requirement.

The Contractor shall encourage monthly phased material releases to maximize support to other manufacturers or to meet full material requirement when appropriate.

1.5 Deliverables: Monthly Inventory and Transaction Report:

The Contractor will provide the Contracting Officer’s Representative (COR) a monthly status report no later than (NLT) 10th calendar day of the month (or the next business day, if the 10th day falls on a non-business day) that provides:

1. The beginning and ending quantity by material for the month;

2. The material releases made during the reporting period to include:

a. Buyer/requestor Name,

b. DoD Contract Number,

c. DPAS rating,

d. specification,

e. quantity,

f. form,

g. date of order,

h. date required and

i. date shipped.

j. dollar value of order

3. Any unsupported releases requests with—

a. Buyer/requestor Name,

b. DoD Contract Number,

c. DPAS rating,

d. specification,

e. quantity,

f. form, and

g. reason(s) why request could not be supported (e.g., exceeds monthly quantity). Note: this information will be used to assess the need to expand the buffer quantities or for adding additional specifications.

1.6 Payment:

Payment will be made monthly via Wide Area Workflow (WAWF) in accordance with Clause 252.232-7006. Invoices must be submitted by the 15th of each month and include a copy of the monthly report.

1.7 Contract Type:

In accordance with FAR 52.216-1, the Government contemplates award of a Firm Fixed Price (FFP) contract resulting from this solicitation.

1.8 Period of Performance:

The Period of Performance shall be for one (1), one (1) year base period, and four (4), one (1) year option periods.

1.9 Place of Performance:

Performance is expected to take place at the Contractor’s facility.

1.10 Quality Control:

The Contractor shall provide and maintain a comprehensive Quality Control Process Surveillance and Testing Plan (QC Plan) to include a Stock Rotation Plan as outlined in Paragraph 1.4.2., above.

1.11 Quality Surveillance:

The Government shall provide the Contractor with a Quality Assurance Plan to include a schedule of planned on-site inspection visits in response to the Contractor supplied Quality Control Process Surveillance and Testing Plan at time of award. The Contracting Officers Representative (COR) shall act as the Government’s Quality Assurance Specialist (QA) and will be named at the time of award. The COR will inspect all aspects of the contractor’s performance under their Quality Control Process Surveillance and Testing Plan. The COR will observe and may ask the Contractor to repeat materials tests to verify product performance.

The COR will monitor inventory management. Inspections will include, but not be limited to, visual verification and review/ observation of the materials’ storage conditions and quantities.

1.12 Manpower Reporting Requirement:

“The contractor shall report all contractor labor hours (including subcontractor labor hours) required for performance of services provided under this contract for the Defense Logistics Agency via a secure data collection site. The contractor is required to completely fill in all required data fields using the following web address: https://www.ecmra.mil/. Reporting inputs will be for the labor executed during the period of performance during each Government fiscal year (FY), which runs October 1 through September 30. While inputs may be reported any time during the FY, all data shall be reported no later than October 31 of each calendar year.

Contractors may direct questions to the help desk at https://www.ecmra.mil/.”

1.13 Contracting Officer’s Representative

To be announced at the time of award.

Attachment B

QUALITY ASSURANCE SURVEILLANCE PLAN

For: DLA War Stopper Program

Contract Number: SP8000-17-C-00XX

Contract Description: The Government seeks the capability for industry to access steel Grade 300M on an expedited basis to support wartime mobilization, military combat operations/readiness and contingency support.

Contractor’s name: XXXXXX (Cage Code: XXXXX) (hereafter referred to as the contractor).

1. PURPOSE

This Quality Assurance Surveillance Plan (QASP) provides a systematic method to evaluate performance for the stated contract. This QASP explains the following:

• What will be monitored.

• How monitoring will take place.

• Who will conduct the monitoring.

• How monitoring efforts and results will be documented.

This QASP does not detail how the contractor accomplishes the work. Rather, the QASP is created with the premise that the contractor is responsible for management and quality control actions to meet the terms of the contract. It is the Government’s responsibility to be objective, fair, and consistent in evaluating performance.

This QASP is a “living document” and the Government may review and revise it on a regular basis. However, the Government shall coordinate changes with the contractor. Copies of the original QASP and revisions shall be provided to the contractor and Government officials implementing surveillance activities.

2. GOVERNMENT ROLES AND RESPONSIBILITIES

The following personnel shall oversee and coordinate surveillance activities.

a. Contracting Officer (CO) - The CO shall ensure performance of all necessary actions for effective contracting, ensure compliance with the contract terms, and shall safeguard the interests of the United States in the contractual relationship. The CO shall also assure that the contractor receives impartial, fair, and equitable treatment under this contract. The CO is ultimately responsible for the final determination of the adequacy of the contractor’s performance.

Assigned CO: XXXXXXXXX

Organization or Agency: DLA Strategic Materials

b. Contracting Officer’s Representative (COR) - The COR is responsible for technical administration of the contract and shall assure proper Government surveillance of the contractor’s performance. The COR shall keep a quality assurance file. The COR is not empowered to make any contractual commitments or to authorize any contractual changes on the Government’s behalf.

Assigned COR: Mr. Joie Coppedge, DLA Aviation

c. Other Key Government Personnel – XXXXXXX, Contract Specialist; Mr. Luis Villarreal, DLA War Stopper Program Manager; Mr. Lynn A Holder, DLA Aviation Alternate COR

3. CONTRACTOR REPRESENTATIVES

The following employees of the contractor serve as the contractor’s program manager for this contract.

a. Program Manager – XXXXXXXX

b. Other Contractor Personnel – XXXXX, Director Supply Chain; XXXXX, Customer Care Manager

4. PERFORMANCE STANDARDS

Performance standards define desired services. The Government performs surveillance to determine if the contractor exceeds, meets or does not meet these standards.

The Statement of Work, page 12 of the contract, includes performance standards. The Government shall use these standards to determine contractor performance and shall compare contractor performance to the Acceptable Quality Level (AQL).

Table 1, Maximum Monthly Requirements

Grade

For Reference Only Monthly Requirement

(Pounds)

Specifications

Applications

300M

AMS-6257, AMS-6417, AMS-6419, BMS 7-26,

BMS 7-26N TYPE 1, C-05-1190, CASTLE METALS

K44220-03, CE-0896F, CPS 4911, DMI-300M,

DMS 1935, K44220-01, K44220-05, C-05-1190B

TYPES A&B, MIL-S-8844D+AMD#1 Class 3 and United Defense 0300M Revision I

Aerospace and other 20,581 Torsion bars

11,297

Stock Rotation Plan The contractor shall have a Stock Rotation/ Quality Control Process Surveillance and Testing Plan (QC Plan) that maintains a mix of melts, where possible, to maintain the freshness and/or ensure incorporation of any technological advances resulting in industry wide changes to specifications or production techniques. This QC Plan shall account for expected material yield loss and/ or scrap that may occur during the processing of material.

5. INCENTIVES

The Contractor’s performance both positive and negative will be posted to the Contractor Performance Assessment Reporting System (CPARS). The CPARS assessment will be based on objective facts and supported by program and contract management data.

6. METHODS OF QA SURVEILLANCE

Various methods exist to monitor performance. The COR shall use the surveillance methods listed below in the administration of this QASP.

a. DIRECT OBSERVATION. (Can be performed periodically or through 100% surveillance.)

Witness Material test, Physical inventory of available billets, bars, plates etc . Standard:

Considered acceptable if the Contractor met or exceeded the targeted quantities.

b. PERIODIC INSPECTION. (Evaluates outcomes on a periodic basis. Inspections may be scheduled [Daily, Weekly, Monthly, Quarterly, or annually] or unscheduled, as required.)

Standard: Contractor met or delivered earlier than the customer requested delivery times for the materials. Review material storage conditions and management procedures. Standard:

Considered acceptable if the Contractor demonstrated the ability to identify specific items intended to support the buffer. Must demonstrate the ability to track materials by melt and have a system in place that documents the rotation and use of the material.

7. DOCUMENTING PERFORMANCE

a. ACCEPTABLE PERFORMANCE

The Government shall document positive performance. Any report may become a part of the supporting documentation for any contractual action.

b. UNACCEPTABLE PERFORMANCE

When unacceptable performance occurs, the COR shall inform the Contracting Officer. This will normally be in writing unless circumstances necessitate verbal communication. In any case the COR shall document the discussion and place it in the COR file.

When the CO determines a formal written communication is required, the CO shall prepare a Contract Discrepancy Report (CDR), and present it to the contractor's program manager.

The contractor shall acknowledge receipt of the CDR in writing. The CDR will specify if the contractor is required to prepare a corrective action plan to document how the contractor shall correct the unacceptable performance and avoid a recurrence. The CDR will also state how long after receipt the contractor has to present this corrective action plan to the Contracting Officer. The Government shall review the contractor's corrective action plan to determine acceptability.

Any CDRs may become a part of the supporting documentation for any contractual action deemed necessary by the CO.

8. FREQUENCY OF MEASUREMENT

a. Frequency of Measurement.

During contract performance, the COR will periodically analyze whether the negotiated frequency of surveillance is appropriate for the work being performed.

b. Frequency of Performance Assessment Meetings.

The COR shall meet with the contractor at a minimum, Semi Annually to assess performance and shall provide a written assessment.

Signature – Contracting Officer’s Representative

Signature – Contracting Officer

Attachment C

Requirement Performance Standards

Acceptable Quality Level

Quality Surveillance Plan Typical Monitoring Methods

Manage and maintain adequate inventory level and production capability

In accordance with terms defined in Section 1.3 of the Performance Work Statement, inventory level or Work in Progress levels are capable of delivering a total of 31,878 pounds of 300M Mill products.

A minimum of 20,581 pounds of Aerospace and other 300M Products per month. And 11,297 pounds of Torsion bar Mill Products per month

Standard is met 100% of the time Periodic Inspection

Accommodate small minimum buy request

On a monthly basis, the contractor shall submit a report of material used. Successfully support small orders (through the use commercial sales to offer material through Material Service Center services).

Document successful transactions for the smallest minimum buy quantity or if none have been received, demonstrate a system capable of supporting small orders. Standard is met 90% of the time

Periodic Inspection

Maintain OEM source of supply qualification

Upon request, present documentation of being a qualified source for predominant OEM’s that supply repair /sustainment parts to DOD.

Standard is met 100% of the time Direct Observation

Report changes that negatively impact supplier capability to deliver the products per contract terms

Report in writing to the Contracting Officer within ten

(10) working days any adverse changes to production capability.

Standard is met 100% of the time Periodic Inspection

Performance Requirements Summary Table

Strategic Buffer 300M Grade Steel Contract: SP8000-17-C-XXXX

Attachment C

Maintain Self-Execution capability of buffer material

In accordance with terms defined in Section 1.4 of the Performance Work Statement.

Standard is met 100% of the time Customer Validation

Package and transport items appropriately

Use standard commercial best practices for packing, packaging, and transportation of the buffer stock to the customer

Standard is met 100% of the time Direct Observation

Stock Rotation Plan Buffer material rotated per established plan using monthly DOD sales and commercial sales

Standard is met 90% of the time

Periodic Inspection

Performance Requirements Summary Table (continued)

Strategic Buffer 300M Grade Steel Contract: SP8000-17-C-XXXX

Requirement Performance

Standards Acceptable Quality Level

Quality Surveillance Plan Typical Monitoring Methods

Contract Reporting Requirements

Per terms of Section 1.5 of the Performance Work Statement

Report received by the 10th calendar days of each month.

When the 10th falls on a non-business day the report is delivered on the next business day. On-time 10 out of 12 Months.

Direct Observation

Maintain Quality Control Process Surveillance and Test Plan

Upon request, present documentation of Quality Control Process Surveillance and Test Plan (QC Plan)

Standard is met 100% of the time

Direct Observation

SP8000-17-R-0008

ATTACHMENT D

PAST PERFORMANCE REFERENCES

Please identify three companies/Government agencies that you have worked with in the prior three years. DLA Strategic Materials will contact these companies/agencies to obtain a reference for your company.

1. PROJECT 1: ______________________________________________________________

a. Work Performed: _____________________________________________________

b. Name of Company/Agency: ____________________________________________

c. Dollar Value: ________________________________________________________

d. Point of Contact: ______________________________________________________

e. Telephone Number: ___________________________________________________

f. E Mail Address: _______________________________________________________

2. PROJECT 2: _______________________________________________________________

b. Name of Company/Agency: ____________________________________________

c. Dollar Value: ________________________________________________________

d. Point of Contact: ______________________________________________________

SP8000-17-R-0008

ATTACHMENT D

PAST PERFORMANCE REFERENCE

3. PROJECT 3: _______________________________________________________________

b. Name of Company/Agency: ____________________________________________

c. Dollar Value: ________________________________________________________

d. Point of Contact: ______________________________________________________