SPE1C125R0150_Questions and Responses.pdf

OCIE-Southeast 3PL Solicitation SPE1C125R0150 Questions and Responses

1. The solicitation provides an annual estimated quantity of approximately 123,000 MROs.

Could you provide historical averages for the number of order lines/NSNs, units/pieces, cartons, weight, and cube per MRO? If available, please also provide typical minimum, average, and maximum MRO sizes. Each MRO will only contain one line item or National Stock Number (NSN), the quantity of which will vary. E.g., 10 pairs of boots, 20 trousers, 1 shirt, etc… Please see the estimated annual quantity of shipments beginning on page 77 of the solicitation. This is broken up by weight category and should provide an estimate of the size of the orders being shipped. Shipments of outbound MROs average approximately 10,000 to 11,000 per month and tend to peak in Summer months at approx. 12,000 – 13,000 per month.

2. Could you provide the historical annual number of inbound shipments and pallets, including average and peak pallets received per day, week, or month? If available, and whether receipts are generally full pallets, mixed pallets, cartons, or parcel shipments.

Average receipt lines per month are approx. 900 to 1,000. Receipts tend to peak in Summer Months averaging approx. 1100 to 1200 per month from June to Sept. The vast majority of receipts will be in full pallets.

3. Please clarify whether the stated approximately 17,000–20,000 pallets represent the number of pallet positions expected to be available at one time. Yes, this is an estimate of the number of pallet positions needed to store the inventory. Also, does the 2.5 million cubic feet represent actual product cube or required gross/usable warehouse storage capacity? Actual product cube.

4. Please provide, if available, typical pallet dimensions, loaded heights and weights, and the approximate percentage of inventory stored on pallets, shelving, floor-stack, cartons, or other storage methods. Pallet size may vary depending on the item to be stored, but a typical size is 54 inches high, 52 inches wide, and 43 inches long. Typically on a 40 x 48 inch pallet.

5. What is the current or historical number of unique active NSNs/NIINs under this program? If available, please provide the average and peak number of active inventory items. There are approximately 9,500 – 10,000 NSNs on this program. However, not all items will be stored at a given point in time.

6. The solicitation provides shipment quantities and weights by region, but we could not locate shipment dimensions. Could you provide historical average package/carton dimensions, cartons per shipment, and the approximate percentage of shipments handled as parcel, multi-carton parcel, palletized/LTL, or truckload? This information is important for obtaining accurate carrier quotes. Please see the estimated annual quantity of shipments beginning on page 77 of the solicitation. This is broken up by weight category, region, and priority and should provide an estimate of the size of the orders being shipped. Specific numbers of truckload, multi-carton parcel or less than truckload shipments are not available.

7. Please confirm whether an offer's evaluated total price for MRO fees + Storage/Warehousing fees + Freight must remain below the $65 million maximum contract value. If the evaluated total exceeds $65 million, would the offer be considered unacceptable? Please also clarify whether separately reimbursable items such as approved accessorials, certain international freight, special projects, or phase-out transportation count against the $65 million ceiling. If the evaluated total calculation results in an offeror’s total estimated contract price exceeding $65 million, the offeror will still remain eligible for award.

8. Please specify the required insurance coverage for the estimated $275 million–$350 million of Government-owned inventory, including required policy type, coverage limit, valuation basis, acceptable deductible. This is the approximate value of the inventory to be stored for the program. The policy type to ensure coverage is up to the offerors business decision.

9. May an offeror use more than one warehouse facility to meet the required storage capacity? If so, please identify any additional requirements applicable to multiple locations. There is no prohibition against using multiple facilities to meet the requirements stated in the solicitation.

10. The solicitation references both 61,500/123,000 and 53,601/107,201 MRO evaluation quantities. Which figures govern? The quantities are listed in the table on page 75 under Step 1 – Calculate Offerors total estimated MRO fee over the life of the contract. Begins with 61500 for base year 1 followed by 123,000 for base year two.

11. One section appears to require full operations within 90 days, while another references 120 days. Which phase-in period applies, and how does it relate to the approximately six-month inventory-transition assumption? Please use 120 days.

12. Are incumbent staffing levels available for planning and transition purposes? No, this information is not available.

13. Please provide any available transition plans or lessons learned from previous contract transitions. This information is not available. Please note that the Government will collaborate with the incoming contractor and incumbent contractor after award for transition purposes. In addition, a phase-in plan is required as part of the Inventory Management and Distribution evaluation factor.

14. Section A and Section C establish a potential contract duration of up to seven and one-half years, while FAR 52.217-9(c), as incorporated in the solicitation, states that total contract duration, including options, shall not exceed 60 months. Please clarify. The maximum duration of the contract is 7 and ½ years, should all available option periods be exercised.

15. Sections 2.4 and 2.5 identify numerous required DLA transactions and examples of EDI test transactions but state that the transaction listings are not all-inclusive. Please identify any additional mandatory transactions not expressly listed in the solicitation and confirm what interface specifications, mapping documentation, test requirements, accounts, or Government test resources will be furnished to the successful contractor for post-award integration and testing. The EDI transactions listed under sections 2.4 and 2.5 are expected to cover all of the transactions likely to be needed and tested as part of this program.

16. Please identify the Contractor's and Government's respective responsibilities for customs clearance, import/export documentation, brokerage, duties, taxes, tariffs, ITAR/EAR compliance, and related non-freight costs, including which such costs are Contractor-priced versus Government-reimbursable. Should these customs / clearance charges occur as a result of the contractor making shipment to an international destination, the Government will reimburse the contractor for actual shipping charges for these shipments.

17. The solicitation incorporates FAR 52.222-41, Service Contract Labor Standards; FAR 52.222-42, Statement of Equivalent Rates for Federal Hires; and FAR 52.222-43, Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment, but does not provide an applicable Wage Determination or identify whether incumbent service employees are covered by a Collective Bargaining Agreement. Please provide the applicable Department of Labor Wage Determination and confirm whether a Collective Bargaining Agreement applies to the incumbent workforce. If a CBA applies, respectfully request the Government provide the applicable CBA, including the wage, fringe-benefit, and other compensation provisions necessary for offerors to develop compliant pricing. Because there is no geographic requirement for the location of the warehouse, the Service Contract Wage rate determination and any relevant CBA, if applicable, will vary depending upon the offerors proposed warehouse location. The need for a CBA will be unique to each offeror.

18. The solicitation also does not identify Government-established pricing inputs or “plug” amounts, where applicable, for cost elements that may be common to all offerors.

Please provide the complete Section B pricing schedule and detailed Business/Price Proposal instructions, including any required pricing template and all Government-established quantities, estimated costs, ceilings, plug amounts, or other common pricing assumptions that offerors are required to use in developing and submitting their proposals. Please see Section II – Evaluation of Business Proposal, beginning on page 75 of the solicitation attachment. This provides instruction as to how offerors prices will be used to calculate the total estimated contract cost.

19. The solicitation does not identify whether contract performance will require contractor access to, handling of, or storage of classified information or material. Please confirm whether performance of this requirement will require access to, handling of, or storage of classified information or material. Handling or storage of classified material is not anticipated under this contract.

20. The solicitation does not establish a maximum staging duration or otherwise bound this requirement. Can the Government establish a maximum staging duration, expressed as a number of calendar or business days, that offerors may use for facility sizing and fixed-price development? If the Government cannot establish a specific maximum duration, respectfully request the Government provide a not-to-exceed staging period or other defined parameter that reasonably bounds the Contractor's staging obligation.

The time needed to stage shipments can vary depending on the destination and/or requirements of the receiving location. There is no maximum or not-to-exceed time period that will be provided.

21. The solicitation does not specify whether these delivery timeframes remain unchanged during sustained surge operations. Please define the Priority Delivery Timeframes applicable during sustained surge operations and confirm whether the normal 1-, 3-, and 6-business-day delivery requirements remain applicable regardless of surge quantity and duration. If different delivery timeframes apply during sustained surge operations, respectfully request the Government identify those timeframes and the conditions under which they become effective. The required delivery timeframes specified in the solicitation are expected to remain the same should a sustained surge operation be needed.

22. The solicitation's AEQ calculation references a six-month transition period during which the new 3PL may not receive MROs while the warehouse is being phased into operation and inventory is transferred. Please clarify how the six-month transition assumption relates to the required full operational service date and whether inventory transfer may continue after the contractor achieves full operational capability. It is possible that the transfer of inventory will continue after a new contractor achieves full operational capability.

23. For planning purposes, can the Government provide the approximate square footage, cubic capacity, clear height, number/type of pallet positions, loading dock count, and other relevant characteristics of the warehouse facility currently supporting this requirement? Please see the estimated cubic footage and pallet count found page 13 of the solicitation attachment. Specific information regarding the current OCIE-Southeast warehouse is unavailable. Offerors are advised to describe their capabilities in this area under Sub Factor 1b – Warehousing Capabilities.

24. Please provide, if available, the average and peak number of occupied pallet positions and/or cubic feet of inventory maintained during the most recent 12-month period. Per solicitation page 13, the estimated required pallet space count is 17,000 to 20,000.

25. To assist Offerors in developing an efficient distribution network and transportation solution, can the Government provide historical MRO destination data for the most recent 12 months by destination ZIP Code and/or DoDAAC, including shipment priority and weight band? If ZIP-level information is unavailable, please provide destination state or 3-digit ZIP information. Please see the estimated annual quantity of shipments beginning on page 77 of the solicitation. This is broken up by weight category, region, and priority and should provide an estimate of the size of the orders being shipped.

Ship-to information down to the ZIP code or DoDAAC level is not available.

26. Please provide historical information regarding seasonality, surge events, and peak operating volumes under the incumbent program, including average and peak daily/weekly MRO volume, approximate peak percentage or volume increases above normal activity, and the percentage of MROs categorized as Priority 1–3 and Overnight/Expedited. Please also provide, if available, the historical frequency and approximate volume of emergency orders requiring weekend or off-hours warehouse support. Please see the estimated annual quantity of shipments beginning on page 77 of the solicitation for an estimation of MRO shipments categorized as Priority 1–3 and Overnight/Expedited. From a historical standpoint, the processing of emergency orders requiring weekend or off-hours warehouse support has not been a frequent occurrence.

27. The PWS states that DLA may station a Sourcing Strategy Specialist (SSS) at the contractor's main distribution warehouse. Please clarify whether Offerors should assume a Government representative will be permanently stationed at the facility for purposes of planning office space, IT connectivity, and facility access. Offerors should assume that a SSS will be stationed at the warehouse.

28. Please clarify the Government's required insurance coverage applicable to

Government-owned inventory maintained at the contractor's facility, including whether the contractor is expected to insure the full replacement value of the inventory or whether Government property provisions establish a different liability standard. The estimated $275 million–$350 million of Government-owned inventory is the approximate value of the inventory to be stored for the program. The policy type to ensure coverage is up to the offerors business decision.

29. The historical regional shipment estimates exclude overseas shipments to DLA Distribution Depot Europe in Germersheim, Germany. Please provide, if available, historical annual shipment volume to Germersheim and other OCONUS destinations, including shipment count, pallet/container count, weight and/or cube. Please note that shipments to Germersheim and other OCONUS destinations will vary. Specific information regarding these shipments is not available.

30. Please confirm that international transportation costs associated with direct overseas shipments are not required to be included in the Offeror's evaluated freight-rate schedule at time of award and will instead be handled in accordance with the actual-cost reimbursement and VSM procedures described in the solicitation. This is confirmed.

31. Please clarify the past-performance submission requirement regarding contracts valued at $1 million or greater and the number of Government contracts to be submitted, as the solicitation contains differing instructions regarding the scope and number of contracts to be provided. Please see page 69 of the solicitation attachment for information required to be submitted as part of the past performance confidence assessment.

32. Please confirm whether the Government has designated any positions as formal Key Personnel for purposes of proposal submission or contract performance. If so, please identify the positions and any minimum qualification or resume requirements. There are no positions designated as key personnel.

33. The solicitation requires Offerors to describe the proposed warehouse, including location, buildings, square/cubic footage, docks, racking, and time required to outfit the facility. Please clarify the level of facility commitment required at proposal submission—for example, whether the Offeror must currently own/lease the proposed facility or whether a letter of intent, contingent lease, or other evidence of facility availability following award is acceptable. The level of facility commitment at proposal submission is up to the offeror’s business discretion. There is no guarantee that an offeror will receive a contract award for this program.

34. Are there any page limits, font size, margin, spacing, file-size, or other formatting requirements applicable to the Technical and Past Performance proposal submissions?

No formatting requirements – offerors must respond to the proposal and evaluation criteria set forth in the solicitation.

35. For an Offeror that is an other-than-small business, is a formal Small Business

Subcontracting Plan compliant with FAR 52.219-9 and DFARS 252.219-7003 required to be submitted with the initial proposal, or will the apparently successful Offeror be required to submit and negotiate the plan prior to award? Additionally, has the Government established specific subcontracting goal percentages for SB, SDB, WOSB, HUBZone, VOSB, and SDVOSB participation for this acquisition? If so, please provide the applicable goals. Please see page 71 of the solicitation attachment which details the requirements of the Small Business Participation evaluation factor.

36. Does the Government have a defined geographic boundary or preferred location within the Southeast region for the contractor’s warehouse facility? There is no geographic location requirement for the warehouse. Bearing in mind that the military customers to be supported are located primarily in the southeastern tier of the U.S.

37. Would the Government allow an offeror to propose multiple warehouse locations to satisfy the storage, inventory management, and distribution requirements? There is no prohibition against using multiple facilities to meet the requirements stated in the solicitation.

38. Will the proposed warehouse location(s), facility size, and proximity to supported customers be considered as part of the Technical Evaluation under Warehousing Capabilities? An Offeror’s proposed warehousing capabilities will be evaluated using the criteria set forth in the solicitation under “Sub Factor 1b – Warehousing Capabilities.”

39. Does the Government anticipate or permit offerors to utilize subcontractors or teaming partners for warehouse operations, information systems, transportation, or other required logistics functions? This is up to the offeror’s business decision.

40. If an offeror utilizes a major logistics subcontractor or teaming partner, will the subcontractor’s relevant past performance and technical capabilities be considered under the Past Performance Confidence Assessment and Technical Evaluation? Yes, if this subcontractor constitutes a major part of the proposal, recommend providing this information to allow for an accurate assessment of the ability of the proposed subcontractor to perform the effort.

41. If a prime contractor partners with an established 3PL provider for facility operations, does the Government expect the prime contractor to demonstrate direct prior experience operating a warehouse of similar scale, or may equivalent experience from a proposed teaming partner be considered? The teaming partner may be considered if they are performing some or all of the effort.

42. For the Small Business Participation evaluation factor, does the Government intend to evaluate the percentage of subcontracted work, the specific functions assigned to small businesses, or both? Yes – Please see the small business participation evaluation factor for details of the information to be provided.

43. Does the Government have any specific requirements, certifications, or preferred capabilities for the contractor’s Warehouse Management System beyond the interface requirements identified in the solicitation? Only requirements set forth in the solicitation. Offerors must describe their WMS as part of the Inventory Management and Distribution evaluation factor.

44. Will the Government provide additional inventory information, such as SKU counts, item profiles, storage density requirements, inventory turnover rates, or historical demand data to support facility planning and pricing? There are approximately 9,500 – 10,000 items that could be stored as part of this program. However, not all items will be stored at a given point in time. Items to be inventoried and ordered include but are not limited to boots, caps, physical training uniforms, trousers, shirts, and protective equipment. MRO quantity estimates are provided on page 1 of the solicitation attachment. Data on turnover rates or storage density is not available.

45. The solicitation identifies a six-month transition period. Will the Government provide additional transition requirements, milestones, or incumbent transition data to support transition planning? The Government will collaborate with the incoming contractor and incumbent contractor after award. In addition, a phase-in plan is required as part of the Inventory Management and Distribution evaluation factor.

46. Please identify the required maximum number of days allowed for transition to full operational services. Please use 120 days.

47. Does the transition period begin at contract award? If not, what event will be the first day of the transition period? It begins at contract award.

48. Will the Monthly Storage and Warehousing Fee be billed by the contractor during the transition period? Yes – the contractor may bill this expense during the transition period.

49. The solicitation references five one-year option periods in most locations (page 1) but references four option periods in portions of the business evaluation (page 75). Please confirm the complete contract structure, including the option year associated with the potential six-month extension. There are five one-year option periods.

50. Please identify the AEQ quantities that will be used to calculate an “Offerors total estimated MRO fee over the life of the contract”. The quantities are listed in the table on page 75 under Step 1 – Calculate Offerors total estimated MRO fee over the life of the contract. Begins with 61500 for base year 1 followed by 123,000 for base year two.

51. What are the average and the peak monthly volumes for inbound receipts, number of pallets received, outbound MROs, and outbound shipments during the most recent 12-month contract period? Average receipt lines per month are approx. 900 to 1,000.

Receipts tend to peak in Summer Months averaging approx. 1100 to 1200 per month from June to Sept. Shipments of outbound MROs average approximately 10,000 to 11,000 per month and tend to peak in Summer months at approx. 12,000 – 13,000 per month.

52. For total outbound shipments in the most recent 12-month contract period, please provide the number of: small parcel shipments, Less Than Full Truck Load shipments, full truckload shipments, dedicated truck shipments, dedicated air shipments, and other shipment modes utilized. Please see the estimated annual quantity of shipments beginning on page 77 of the solicitation. This is broken up by weight category, region, and priority. Specific numbers of truckload or less than truckload shipments are not available.

53. Please provide the average number of line items, units, and cartons per MRO during the most recent 12-month contract period. If exact averages are unavailable, please provide reasonable estimated ranges for each category. Each MRO will only contain one line item or National Stock Number (NSN), the quantity of which will vary. E.g., 10 pairs of boots, 20 trousers, 1 shirt, etc… Please see the estimated annual quantity of shipments beginning on page 77 of the solicitation. This is broken up by weight category and should provide an estimate of the size of the orders being shipped.

54. Please identify any material categories expected to require each of the following categories: (1) oversized storage, (2) climate control, (2) hazardous-material handling,

(3) enhanced physical security, (4) segregation, (5) crates, (6) skids, (7) overpacks, and

(8) other special handling. If available, please provide the approximate percentage of inventory or shipments requiring such handling in each of the listed categories. With the exception of skids and/or pallets, (the vast majority of incoming shipments will be palletized) none of the categories above is called out in the solicitation as a requirement.

55. If a new contractor is selected, will the government please describe the anticipated inventory-transfer process, including the following elements: (1) incumbent current location, (Pendergrass, GA) (2) estimated pallets (17,000 to 20,000 as listed on page 13 of the solicitation) (3) estimated truckloads, (estimated number of truckloads is unknown at this time) (4) transfer sequencing, (Truckloads will ship from the incumbent to the new contractor) (5) expected duration of the transfer, (Approx. three to six months) (6) party responsible for transportation and handling costs, (The Government will reimburse the shipping contractor for transportation expenses associated with inventory transfer.) and (7) the point at which custody, accountability, and risk of loss transfer to the successor contractor. (Upon receipt at the new contractor.)

56. The solicitation states that no MRO fee will be paid for an MRO not delivered on time.

Please clarify how timeliness and payment will be determined when delay results from:

Lack of required Government data; lack of required Government authorization; lack of customer availability; customer refusal of shipment; delayed VSM or aerial-port clearance; carrier disruption due to weather, force majeure, or another cause outside the contractor's reasonable control. Per Section 3.3.3 of the solicitation, “The Contractor will be entitled to take certain exceptions to on-time deliveries resulting from delays in getting appointments to shipping docks, delays in getting shipping instructions from the DLA Troop Support Transportation office, force majeure, dedicated weekly truck shipments, bad bar-code labeling from manufacturers, supply unavailability caused by DLA Troop Support and any other forces outside of the Contractor’s control which are approved by the PCO. Allowance of any exceptions shall be at the sole discretion of the PCO.”

57. Will the contractor process, store or transmit Personally Identifiable Information such as information printed on package labels or stored in the Contractors Warehouse Management System? Personally Identifiable Information (PII) will not be stored or transmitted by the contractor.

58. Will the contractor be required to utilize commercial shipping websites that require the sharing of Personally Identifiable Information? Sharing of PII will not be required.

59. Which commercial shipping websites and/or services should be utilized by the contractor? This is the contractors business decision.

60. What NIST assessment (NIST SP 800-171, NIST SP 800-53) or CMMC level will the contractor’s facility, technology and subcontractors be required to meet? If so, please describe which and if there is a deadline for compliance. CMMC implementation is currently in a pause stage as of this writing.

61. Will a contractor-hosted WMS, portal, integration, reporting, database, backup, disaster-recovery, or supporting cloud environments be required to be FedRAMP Authorized or otherwise covered by a Government Authority to Operate? If so, please describe which and if there is a deadline for compliance. FedRAMP is not a requirement of the solicitation.

62. Please provide the anticipated number and type of Government WMS and portal users and any required CAC/PIV, multifactor authentication, network connectivity, audit logging, or user-administration controls that are required. The method of gaining access to the portal is based upon the contractors business decision. Username and password or CAC/PIV is acceptable. The number of users will vary but is estimated at 25 to 40.

63. Must any contractor-operated system or cloud environment utilized in supporting the requirements of the Solicitation meet DoD Cloud Computing Security Requirements Guide Impact Level 4? If so, please identify the applicable data, system components, required impact level, and deadline for compliance. The solicitation does not specify this requirement.

64. Are the production EDI transaction sets, connectivity methods, throughput expectations, test cases, and acceptance criteria required for full operational services?

Yes – All transactions for shipments, receipts, MROs, inventory movements require EDI transactions.

65. Please identify or clarify the availability and anticipated lead times for Government test environments, specifications, test data, trading-partner identifiers, approvals, and integration personnel. After award, the Government will collaborate with the contractor to schedule and perform EDI testing.

66. PWS Section 2.5.10 Vendor System of Record at page 20 states: Responsible for generating, receiving, and maintaining data records sent to and received from DLA through EDI. The data must be archived in accordance with DLA data retention and disaster recovery policies. Examples of systems of record include: Commercial off the Shelf (COTS) software, i.e. Quick Books; office tools, i.e. spreadsheets, custom applications – home grown software solutions, and enterprise solutions, i.e. SAP. The vendor is responsible for the system of record. Please identify the DLA data retention and disaster recovery policies with which the contractor must comply. This schedule can be found at the following link:

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