Mkt Research Survey_Leather Dress Shoes_2023-11-13.docx

DEFENSE LOGISTICS AGENCY

Troop Support 700 Robbins Avenue Philadelphia, Pennsylvania 19111-5092

Market Research Survey

SHOE, MEN'S/WOMEN’S, DRESS OXFORD, (NAVY)

IN REPLY

REFER TO

DLA Troop Support- FQEA (Michael Curry / 215.737.7018) November 9, 2023 SUBJECT: Market Research Survey Item: SHOE, MEN'S/WOMEN’S, DRESS OXFORD, (NAVY) Purchase Description (PD): NCTRF PD 13-98B, dated 10 July 2023 PGC: 02450 (Men’s) AND 02451 (Women’s) Lead NSNs: 8430-01-456-0156 (02450), 8435-01-456-1526(02451)

DLA Troop Support is conducting market research on the above item to determine an acquisition strategy that will enhance our support of military customers worldwide, as well as to determine what industry is capable of providing. For this reason, DLA Troop Support would appreciate your firm sharing its expertise and insight into how this item can be most efficiently procured.

The acquisition approach listed below was designed to promote competition and to ensure a viable industrial base for the supply of SHOE, MEN'S/WOMEN’S, DRESS OXFORD, (NAVY). DLA Troop Support anticipates issuing a solicitation in April 2023 for the referenced item(s). DLA Troop Support anticipates awarding one Firm-Fixed Price, Indefinite Delivery, Indefinite Quantity Contract consisting of a one three-year base term with tiered pricing whereby the offerors may offer separate prices for each year of the contract. DLA Troop Support requires input from industry to formulate our acquisition strategy regarding how many contracts are necessary, the length of the contract(s), and what type of companies and how many companies are interested in competing for the requirement. Your firm’s response to the questionnaire will help the Government determine an appropriate term for the contract based on the current capabilities of the industry.

It should be noted that this inquiry, in no way, should be interpreted as a solicitation for offers. No information provided in response to this inquiry will be considered binding between the vendor and the Government. With this in mind, please review specification for the subject item and answer the questions on the pages below. The answers you provide will remain confidential.

Please return this survey to Mike Curry at michael.curry@dla.mil, by Tuesday November 21, 2023, 3:00 PM Local Philadelphia, PA time.

NOTE: This is a MARKET RESEARCH SURVEY/SYNOPSIS, NOT A REQUEST FOR A BID/PROPOSAL. Please review the following pages and provide current market prices.

Thank you for your time and consideration.

Government Requirement:

The quantities provided below are estimates and may change at the time of solicitation based on changes in demand and supply position.

Item: SHOE, MEN'S/WOMEN’S, DRESS OXFORD, (NAVY) CERTIFIED Purchase Description (PD): NCTRF PD 13-98A, DATED 30 SEPTEMBER 2003 PGC: 02450 (Men’s) AND 02451 (Women’s) Lead NSNs: 8430-01-456-0156 (02450), 8435-01-456-1526 (02451) Unit of Issue: PAIR (PR)

Tier 2

147,432

Tier 3

147,432

TOTAL

597,096

Notes:

1. The Contract Guaranteed Minimum Quantity is 36,858 pairs.

2. The Annual Estimated Quantity (AEQ) is 147,732 pairs. AEQ refers to the Government's good faith estimate of the requirements during a specified contract tier. The AEQ does not obligate the government to order a specific quantity, it is provided for informational purposes only.

3. The Contract Maximum Quantity is 597,096 pairs (the contract maximum quantity assumes an approximate 35% increase in the AEQ for each Tier to account for fluctuations in customer demand. The Navy is currently the only user. The Government will determine the 30 day not-to exceed quantity based on responses to the survey, but will be no more than 16,380 pairs.

4. Ordering period: Base term is three (3) years with tiered pricing for each year

5. Delivery Destination:

DoDAAC: SD0119 Peckham, Inc.

Navy & Coast Guard 3PL 5408 W. Grand River Ave. Bldg. A Lansing, MI 48906

6. FOB Destination

7. Inspection/Acceptance at Origin

Proposed Acquisition Strategy:

Solicitation will be issued using Best Value Trade Off Source Selection Procedures.

If the information supplied in response to this market research survey determines the best method for solicitation is Unrestricted, the evaluation factors are: 1) Past Performance Confidence Assessment, and 2) Small Business Participation.

If the information supplied in response to this market research survey determines the best method for solicitation is a Small Business Set-Aside, the evaluation factors is: 1) Past Performance Confidence Assessment DLA Troop Support anticipates awarding one Firm-Fixed Price, Indefinite Delivery, Indefinite Quantity Contract consisting of a one three-year base term with tiered pricing whereby the offerors may offer separate prices for each year of the contract.

DLA Troop Support requires input from industry to formulate our acquisition strategy regarding how many contracts are necessary, the length of the contract(s), and what type of companies and how many companies are interested in competing for the requirement.

Please provide as much insight/information as possible on the following questions to the best of your knowledge at this point in time:

1. Company Identification and Contact Information Company Name:

Company Address:

Company Main Phone Number:

Company CAGE:

Point of Contact #1 Name:

Title/Position:

Phone:

Email:

Point of Contact #2 Name:

Title/Position:

Phone:

Email:

2. Company Description:

a. Business size (Large or Small)?

NOTE: NAICS Code is 316210 – Footwear Manufacturing; Small business being defined as a firm that employs less than 1000 people)

b. If you are a Manufacturer, are you planning to submit an offer on this solicitation? (Y/N) __________

1) If no, why?

2) If yes, what is the manufacturing address/ Place of Performance:

3) Will any part of the manufacturing process be subcontracted? (Y/N) __________

i. What percent will be subcontracted? ____________ %

ii. What is/are the subcontractor(s) company name and address?

iii. What is/are the subcontractor(s)’s CAGE code?

3. Commerciality:

a. Is the item commercial or modified commercial in accordance with Federal Acquisition Regulation (FAR) 2.101 (see below for FAR 2.101 definition)?

b. For example: is the item of a type used by the general public; sold or offered for sale to the general public?

c. Is the modification of a type available in the commercial marketplace?

d. If the answer to (a) is no, does your firm deal in commercial products that would be comparable to the item required and/or can they be used in lieu of the item? If so, could you provide examples?

e. Are you aware of commercial items available in the marketplace that you could manufacture with minor modification to meet government requirements?

4. Item Required:

a. Is the item made of any type of material that is a major cost driver? For example, the item is made of {list major materials: i.e. leather, nylon, oil, etc.}

b. What is the minimum number of shoes that your company must manufacture per month to remain sustainable? ___________________________ per month

c. What is the optimal quantity your company would like to manufacture in one month? _____________________________ per month

d. What is the maximum number of shoes your company can manufacture in one month (assuming materials and component are available) without incurring additional costs? _____________________________ per month

1) Is the maximum monthly production quantity based on the item in question or is the maximum monthly production quantity based on your total manufacturing capacity?

2) What is your proposed unit price for the shoes at the maximum production rate? ___________________________

e. Are there any known industrial base issues you are aware of with this item?

3. Delivery:

a. Can you deliver special measurements of the subject item to military customers throughout the US (direct vendor delivery) as well as to DLA’s 3PL in Lansing, MI?

b. The initial production lead time associated with this item is 150 days.

1) Is this realistic? (Y/N)

2) If not, what is the estimated initial production lead-time? _________days

3) If not, what is the estimated production lead-time for subsequent delivery orders? _________days

4) If the production lead times of 150 days is not realistic, why?

4. Pricing

a. The Government anticipates awarding a 3-year contract with an estimated annual demand quantity of 147,732 pairs to be delivered to Peckham, Inc. in Lansing, MI on a FOB Destination basis, are you able to provide unit pricing for up to three (3) years? (Y/N)

1) If yes, please provide estimated prices for the next three (3) years:

Unit Price

Base Term (Tier 1 – Year 1)

Base Term (Tier 2 – Year 2)

Base Term (Tier 3 – Year 3)

2) If no, why? (ex: prices of xyz component is too volatile)

3) Are you able to provide pricing for more than one (1) year? (Y/N)

i. If you are able to provide pricing for more than one year, how many years? _____________ Years

ii. Please provide pricing for the years you are able:

Unit Price

Base Term (Tier 1 – Year 1)

Base Term (Tier 2 – Year 2)

Base Term (Tier 3 – Year 3)

b. What is your estimated labor to material ratio? Labor: ___________% / Material: ___________%

c. Is pricing of the item stable or volatile?

1) If volatile, why?

d. Would you like the Materials Costs Economic Price Adjustment – Department of Labor Index (JAN 2023) Procurement Note (see below) included in the solicitation? (Y/N) _________

1. If yes, indicate the index/indices to be considered for the EPA clause and the percentage of the item cost that is material-related that the PPI will apply to:

Material Costs Economic Price Adjustment - Department of Labor Index (JAN 2023)

(a) Warranties. The contractor warrants that—

(1) The base unit prices set forth in the Schedule do not include allowances for any portion of the contingency covered by this procurement note; and

(2) Prices invoiced shall be computed in accordance with the terms of this procurement note.

(b) Definitions. As used throughout this procurement note—

(1) "Index", for the purpose of price adjustment under this procurement note, means the Producer Price Index(es) reported in the monthly publication entitled, “Producer Price Indexes”, published by the United States (U.S.) Department of Labor (DOL), Bureau of Labor Statistics (BLS) for the following code number(s) and title(s): _________________[contracting officer fill-in]_________________________. Note: Up to two indexes can be used under this procurement note. If two indexes are used, a unit allowance for each index must be identified in paragraph (5).

(2) "Base index" means the arithmetic average of the final version of the index published for the 3 months preceding the closing date for receipt of proposals or the date required for receipt of final proposal revisions if discussions were held.

(3) “Adjusting index" means the arithmetic average of the [ ] first published or [ ] final version of the index for the 3 months prior to the month in which the adjusting contract modification is effective.

(4) "Base unit price" means the unit price applicable to a quantity of a contract line item established at contract award, exclusive of any price adjustment pursuant to this procurement note. Thus, when applicable, the term “base unit price” shall mean the tier or option term unit price established at contract award that corresponds to the tier or option term for which a price adjustment is being made.

(5) “Unit allowance” means the portion of the base unit price’s material-related cost(s) that is/are subject to the adjustment under this procurement note. For this solicitation, the unit allowance is: ________[contacting officer fill-in percentage] _________. If two indexes are being used, indicate the unit allowance per index cited in paragraph (1): ______________________________________________________________________________

(6) “Adjustment period” means the period during which a particular adjustment to the unit price under this procurement note (calculated at the beginning of the adjustment period) will apply.

(c) Adjustments. The price adjustment shall be made to the base unit price that was established at contract award for the tier or option period that corresponds to the adjustment period for which the adjustment is being made. Prior to the end of each adjustment period, the contracting officer will calculate the adjusting index and any adjusted contract unit price(s) for the new adjustment period and modify the contract accordingly. The contracting officer will make price adjustments in accordance with this procurement note by issuing a contract modification showing the base index, the adjusting index, the base unit price, the mathematical calculations, and the changed unit price(s). The price adjustment shall apply to orders issued after the effective date of the contract modification establishing the adjusted unit price for the adjustment period. The contracting officer will base the price adjustment(s) for each adjustment period on the percentage change between the base index and the adjusting index for the adjustment period, as applied to the unit allowance of the applicable base unit price(s). The unit allowance agreed to at time of award will remain fixed throughout the life of the contract unless the Government authorizes a change.

1) The contractor shall decrease its price in any particular adjustment period if the adjusting index is less than the base index. This contract allows one (1) price adjustment per year.

(2) Example of adjustment calculation if one index is used:

A contract containing three (3), one-year tier terms was awarded on 24 March 2021. The date for receipt of final proposal revisions was 21 January 2021. The Tier Term 2 unit price (i.e., the base unit price in this example) is being adjusted under the terms of this procurement note. Tier Term 2 contains a unit price of $35.50 and begins on 24 March 2022. The index being used is WPU 034203 – PPI Commodity data for Textile products and apparel-Finished manmade, silk, and other natural fiber (excluding cotton and wool) broadwoven fabrics, not seasonally adjusted. The unit allowance is 30%.

Calculating the base index: Average the final version of the index published for the 3 months preceding the date required for receipt of final proposal revisions (21 January 2021).

(Final version of index for October 2020: 185.8; November 2020: 187.9; December 2020: 187.6) = 187.1* Calculating the adjusting index: Average the first published or final version (as applicable) of the index for the 3 months prior to the month in which the adjusting contract modification is effective (March 2022).

(Index for December 2021: 246.591; January 2022: 246.745; February 2022: 248.606) = 247.3* Calculating the change to index: Adjusting index (247.3) minus base index (187.1) = 60.2 Calculating the economic price adjustment:

1. Divide the change to index (60.2) by the base index (187.1) to obtain the economic price adjustment factor = 60.2 /187.1 = .32182790 or 32.1828%**

2. Multiply the base unit price ($35.50) by the unit allowance (30%) to obtain the cost covered for this adjustment = $35.50 x 30% = $10.65***

3. Multiply the cost covered ($10.65) by the economic price adjustment factor (32.1828%) to calculate the economic price adjustment amount = $10.65 x 32.1828% = $3.43***

4. Add the economic price adjustment amount ($3.43) to the base unit price ($35.50) to calculate the adjusted Tier Term 2 unit price = $35.50 + $3.43 = $38.93

(3) Example of adjustment calculation if two indexes are used:

A contract containing three (3), one-year tier terms was awarded on 24 March 2021. The date for receipt of final proposal revisions was 21 January 2021. The Tier Term 2 unit price (i.e., the base unit price in this example) is being adjusted under the terms of this procurement note. Tier Term 2 contains a unit price of $55.00 and begins on 24 March 2022. The item is a 50/50 blend of nylon and cotton, therefore two indexes are being used: (1) Index WPU 034203 – PPI Commodity data for Textile products and apparel-Finished manmade, silk, and other natural fiber (excluding cotton and wool) broadwoven fabrics, not seasonally adjusted and (2) Index WPU 034201 - PPI Commodity data for Textile products and apparel-Finished cotton broadwoven fabrics, not seasonally adjusted. The corresponding unit allowance for index WPU 034203 is 20%. The corresponding unit allowance for index WPU 034201 is also 20%.

Calculating the base index: Average the final version of the index published for the 3 months preceding the date required for receipt of final proposal revisions (21 January 2021).

1. (Final version of index WPU 034203 for October 2020: 185.8; November 2020: 187.9; December 2020: 187.6) = 187.1*

1. (Final version of index WPU 034201 for October 2020: 158.3; November 2020: 158.3; December 2020: 158.3) = 158.3* Calculating the adjusting index: Average the first published or final version (as applicable) of the index for the 3 months prior to the month in which the adjusting contract modification is effective (March 2022).

1. (Index WPU 034203 for December 2021: 246.591; January 2022: 246.745; February 2022: 248.606) = 247.3*

1. (Index WPU 034201 for December 2021: 178.728; January 2022: 178.88; February 2022: 185.634) = 181.1* Calculating the change to index:

1. Adjusting index (247.3) minus base index (187.1) = 60.2 (index WPU 034203)

1. Adjusting index (181.1) minus base index (158.3) = 22.8 (index WPU 034201) Calculating the economic price adjustment:

1. Divide the change to index by the base index to obtain the economic price adjustment factor.

0. 60.2 /187.1 = .32182790 or 32.1828%**

0. 22.8/158.3 = .14390819 or 14.3908%**

1. Multiply the base unit price by the unit allowance to obtain the cost covered for this adjustment.

1. $55.00 x 20% = $11.00***

1. $55.00 x 20% = $11.00***

1. Multiply the cost covered by the economic price adjustment factor to calculate the economic price adjustment amount.

2. $11.00 x 32.1828% = $3.54***

2. $11.00 x 14.3908% = $1.58***

4. Add the total economic price adjustment amount ($3.54 + $1.58 = $5.12) to the base unit price ($55.00) to calculate the adjusted Tier Term 2 unit price = $55.00 + $5.12 = $60.12 *In computing the base and adjusting indexes, the contracting officer will round the resulting figure to the first decimal place.

**The contracting officer will round this number to the fourth decimal place.

***The contracting officer will round all dollar figures to the nearest cent.

(d) Upward ceiling and downward floor on economic price adjustment. An upward ceiling and downward floor of no more than 10% of the applicable base unit price shall apply. The contractor agrees that the aggregate of the increases in any contract unit price under the terms of this procurement note shall not exceed 10% of the applicable base unit price, except as provided hereafter.

(1) If at any time the contractor has reason to believe that within the near future a price adjustment under the terms of this procurement note will be required that will exceed the adjustment ceiling or floor for any item, the contractor shall promptly notify the contracting officer in writing of the expected increase or decrease. The notification shall include a revised ceiling or floor the contractor believes is sufficient to permit completion of remaining contract performance, along with appropriate explanation and documentation as required by the contracting officer.

(2) If an increase in the index would raise a contract unit price for an item above the current ceiling, the contracting officer may issue a contract modification to raise the ceiling. If the contracting officer does not raise the contract ceiling, the contracting officer will promptly notify the contractor in writing. If a decrease in the index would lower a contract unit price for an item below the current floor, the contacting officer may issue a contract modification to lower the floor. If the contracting officer does not lower the contract floor, the contracting officer will promptly notify the contractor in writing.

(e) Invoices. The basis for prices payable under this contract is the latest adjusted unit price incorporated into the contract as of the date of order.

(f) Retroactive adjustment. This paragraph applies only if the contracting officer selected “first published index” in paragraph (b)(3). If the Government has already paid for orders delivered during an adjustment period, the contractor may request a retroactive adjustment. The contracting officer will base the retroactive adjustment on the difference between a higher final revised index applicable to an adjustment period and the index values used in calculating the unit price for that adjustment period, subject to the adjustment ceiling in paragraph (d) and under the following conditions:

(1) The request for equitable adjustment clearly establishes that the unit price adjustment for the adjustment period would have been higher if the final revised index had been used and identifies all invoices and payments to which it applies cites the specific index differences relating to the requested adjustment and provides a calculation of the total net price adjustment for items delivered during that adjustment period.

(2) The total dollar change for items delivered is $____[contracting officer fill-in]____ ($500.00 unless otherwise stated) or more for the applicable adjustment period(s).

(3) The contracting officer received the contractor’s written request within 45 days following publication of the final revised index.

The contractor shall adjust its prices downward based on the difference between a lower final revised index applicable to an adjustment period and the index values used in calculating the unit price for that adjustment period, subject to the limitation in paragraph (f)(2).

(g) Revision of index. If the applicable index is discontinued or its method of derivation is altered substantially, or if the contracting officer determines that the index consistently and substantially fails to reflect market conditions, the parties shall mutually agree upon an appropriate and comparable substitute. The contracting officer will modify the contract to reflect such substitute effective on the date the index was discontinued, altered, or began to consistently and substantially fail to reflect market conditions.

(h) Final invoice. The contractor shall include a statement on the final invoice confirming it has applied all decreases required by this procurement note to the amounts invoiced.

(i) Disputes. The “Disputes” clause of the contract applies to any dispute arising under this procurement note.

Important Notice: Availability of Solicitations Availability of solicitations, FAR 5.102(d) applies, as our office no longer issues solicitations or amendments in paper form. Offeror should register to receive notification of this solicitation or solicitation amendments. The solicitation will be posted on https://www.dibbs.bsm.dla.mil//.

Important Notice: New Federal Business Opportunities FBO Website Federal Business Opportunities (FBO) moved to beta.SAM.gov the weekend of November 8, 2019. Visit beta.SAM.gov today to preview new features like saved searches and the ability to follow notices. For more information, please visit the beta.SAM.gov learning center at https://beta.sam.gov/help/new-to-sam.

Important Note on Foreign Content:

The Defense appropriations and authorization acts and other statutes (including what is commonly referred to as "The Berry Amendment" impose restrictions on the DoD's acquisition of foreign products and services. Generally, Clothing and Textile items (as defined in DFARS clause 252.225-7012) and "specialty metals" (as defined in DFARS clause 252.225-7014) must be grown, reprocessed, reused, melted or produced in the United States, its possessions or Puerto Rico, unless one of the DFARS 225.7002-2 exceptions applies.

Lack of response will be interpreted as non-interest. If you have any further questions, please feel free to contact me at michael.curry@dla.mil or (215) 737-7018 or the Contracting Officer, Jessica De La Hoz at jessica.delahoz@dla.mil or (215) 737-7137.

Source Selection Information – See FAR 2.101 & 3.104 image1.png