Amend_0006_Final_03-21-2016.docx

AMENDMENT 0006

SPE7LX-16-R-0004

1. This amendment is issued to incorporate the following into solicitation SPE7LX-16-R-0004 and open negotiations:

2. All solicitation references to an “optional site” or “optional IPV site” now read as follows: “additional IPV site”.

3. All solicitation references to “Material Management Fee” or “Spot Buy Fee” now read “Material Management Price” and “Spot Buy Price”, respectively.

4. The bulleted summary definitions for CLINs 0002 through CLIN 0007 in Section A, paragraph 10, are hereby replaced:

· CLIN 0002 (Kitting) is a fixed labor rate for the supply of kits in accordance with each delivery/ task order issued by the Government to include a fixed labor rate for kit assembly.

· CLIN 0003 (Material Management Price for all active NSNs) is a fixed price per month per NSN for active items to include all costs (management, infrastructure, and distribution) of supply chain management functions as stated in the PWS.

· CLIN 0004 (Spot Buys – Cost of Item) is a fixed price per spot buy for only actual material and transportation costs associated with Spot Buys authorized by the Government. This CLIN is not to be priced until the spot buy is initiated.

· CLIN 0005 (Spot Buys Process Price) is a fixed price per spot buy for all processing costs, including profit, associated with Spot Buys authorized by the Government and delivered by the contractor to the designated bin locations in support of production/maintenance lines at RRAD.

· CLIN 0006 (Implementation/Transition) is a one-time firm fixed price for the 120 day transition and implementation of IPV at RRAD. This will not include recurring costs following the implementation date.

· CLIN 0007 (Material Management Price) is a fixed price per month per NSN for warehousing inactive Army-owned inventory at the contractor’s warehouse.”

5. The information provided for CLINs 0002 through 0007 in Section B are hereby replaced:

“CLIN 0002 KittingThis CLIN is for the supply of kits and is to be priced with a labor rate only for the assembly of kits, should kit assembly be required.

Note: Kit Development & Pricing: The contractor shall work with customer and Basic Contracting Administrator to develop kits to meet tailored customer needs. The kits shall be limited to the items being provided under CLIN 0001. Price Negotiations shall be used to establish a fixed price per kit. The price shall consist of the CLIN 0001 pricing of the items making up the kit, plus assembly and packaging cost to develop a fixed price for supply of the kit. (For items being provided in the Kit from CLIN 0001, the pricing for that item for material management shall not be included in the price of the kit). A bilateral modification will be issued for the approved kit and the kit shall be added as an item of supply under CLIN 0002 and the modification shall identify the negotiated fixed price kit, which will include the pricing of the items making up the kit from CLIN 0001, plus assembly and packaging cost. All items used from CLIN 0001 to make the kit will be billed under CLIN 0002 and not under CLIN 0001. CLIN 0002 pricing shall only be modified consistent with any economic price adjustment made to the price of CLIN 0001 items contained within the kit.

CLIN 0003 Material Management Price for all Active RRAD NSNs The CLIN is a fixed price per month per NSN for delivering all parts identified as active NSNs to the designated bin locations in support of production/maintenance lines or as specified in the delivery order. The price shall include:

1. Direct labor associated with material management and distribution of bench stock item to customer site bins;

2. Direct labor associated with managing Army-owned material identified as active NSNs (including but not limited to transporting, receiving, warehousing, and distribution to bins);

3. Direct costs to establish the offeror’s off-site facility used as central receiving or storage area for bin replenishment;

4. Overhead and general and administrative expenses;

5. Other expenses associated with material management; and

6. Profit

The offeror shall provide a fixed price per month per NSN that shall be used during contract performance to adjust the CLIN 0003 price per month when NSNs are added/deleted or moved to or from a list of active NSNs under CLIN 0003. This monthly unit price per NSN shall be fixed and adjusted only in accordance with the applicable EPA clause and is to be included in the CLIN 0003 price for the month it is added or deleted or moved to or from active.

CLIN 0004 Spot Buy – Cost of Item This CLIN is the actual material and transportation cost to RRAD associated with Spot Buys authorized by the Government. CLIN 0004 is not to be priced until the spot buy is initiated and, as such, will not be evaluated.

CLIN 0005 Spot Buy – Price This CLIN is a fixed price per spot buy for all administrative processing costs; inspection, handling, loading and unloading costs; and profit associated with Spot Buys authorized by the Government and delivered by the contractor to the designated bin locations in support of production/maintenance lines (RRAD).

CLIN 0006 – Implementation/Transition Price This CLIN is a one-time fixed price that should include all costs, including profit, for a 120-day or shorter implementation period to transition to full execution at RRAD in accordance with the requirements set forth in the PWS (paragraph 6.0, Implementation).

CLIN 0007 – Material Management Price for Inactive Army-owned Inventory This CLIN is a fixed price per month per NSN for the storage of inactive Army-owned inventory in the contractor’s warehouse. The price shall include:

1. Direct labor associated with managing Army-owned material for inactive NSNs upon closure or re-alignment of a production/maintenance line (e.g., inventorying, transport of material from bin location(s) to warehouse, warehousing at contractor facility);

2. Direct costs to establish that portion of the offeror’s off-site facility used as a central receiving or storage area pertaining to Army-owned inventory for inactive NSNs;

3. Overhead & general and administrative expenses;

4. Other expenses associated with material management of Army-owned inventory for inactive NSNs; and

5. Profit.”

The contractor shall provide a fixed price per month per NSN that shall be used during contract performance to adjust the CLIN 0007 price per month when items are added, deleted, or moved to/from the list of inactive items under CLIN 0007. This monthly price, per NSN, shall be fixed and adjusted only in accordance with the applicable EPA clause and is to be included in the CLIN 0007 price for the month it is added or deleted or moved to or from inactive status.

6. Section 1.3 Contractor Responsibilities, the first sentence is updated to read as follows: “The contractor shall perform all functions of the PWS, including:”

7. Section 2.14.3 Receipt of Government Inventory, the first paragraph is hereby replaced: “During the receiving process, if there appears to be a discrepancy in the kind, count, or condition of Government parts received, the Contractor shall reflect the discrepancy in Accountable Property System of Record (APSR) and shall advise the Government of the discrepancy within 24 hours of discovering the discrepancy.”

8. Section 2.18 Material Management Support, the fourth sentence is hereby replaced: “To determine if the bins need restocked, the Contractor shall physically monitor all bins a minimum of twice weekly with one of those days occurring on the last day of the work week, which is currently Thursdays for RRAD employees.”

9. Section 2.19.1 Returns and Discrepant Orders, is hereby replaced:

“The Contractor shall maintain a process to handle RRAD returns and complaints. The VMI inventory must be properly identified, packaged, stored, inspected, catalogued, etc., prior to shipment. The Contractor shall respond to requested pick-ups within 24 hours after receiving the request.”

10. Section 2.3.4 Administration of Additions and Deletions under this Provision, the following example is added to the end of this section:

“When the number of inactive Army-owned NSNs warehoused at the contractor’s warehouse changes, the CLIN 0007 fixed monthly price shall be adjusted. For example:

During the month of June, the following changes are made at RRAD:

Number of inactive Army-owned NSNs no longer warehoused at the contractor’s warehouse: 35 Number of inactive Army-owned NSNs newly warehoused at the contractor’s warehouse: 40

The total NET change in the number of NSNs under CLIN 0007 is an upward adjustment of 5. The final monthly fee for June is increased by $100.00 (5 x $20.00) for a fixed monthly price of $2,100.”

11. Section 2.3.4 Administration of Additions and Deletions under this Provision, 3rd paragraph in the first example, is hereby replaced to state, “The total NET change in the number of NSNs under CLIN 0003 is an upward adjustment of 5. The final monthly fee for June is increased by $100.00 (5 x $20.00) for a fixed monthly price of $20,100.”

12. Section 2.4 Sourcing of Covered Items of Supply, letters c. and d. are hereby removed therefore the remaining items move up in sequence.

13. Section 2.5 Sourcing Order of Priority, letter b now reads as follows: “2nd sourcing order of priority: DLA VMI.”

14. Section 2.5.1 Department Of Defense Activity Address Code (DoDAAC), letter a, (ii) and (iii) are hereby removed. The last item moves up in sequence.

15. Section 2. 8 Supply of Parts RRAD, the first paragraph is hereby replaced: “The Contractor shall supply and maintain the required items of supply in all bin and/or line side stock locations, or other RRAD-designated delivery location(s) (for bench stock inappropriate for bin storage due to size or storage requirements), at levels not to exceed the quantity of 10 days’ demand, and such that any and all bench stock items are available to the artisans or mechanics at or near the point of use, when the mechanics or artisans require such bench stock items for the maintenance, overhaul or repair of military weapons systems or other related military equipment. The Contractor shall break packages of items before placement into the bins unless otherwise coordinated with the Army COR. Prior to delivery of item to the bin, consideration should be given to unit of issue and order of unit and whether or not breaking package in advance diminishes quality of the item. If vendor notices significant changes, issues or errors with the supply levels then vendor shall notify the Army COR, the DLA COR and the DLA Program Manager. ”

14. Section 2.8.1 Procedures for Army-owned Inventory, is hereby replaced to read as follows (NOTE: This section now includes additional numbered subsections and language updates):

“2.8.1 Procedures for Army-Owned Inventory:

1. Initial notification of the need to invoke this process will likely come from the Army COR. However, only with documentary authorization from the BCA is the contractor to execute it.

2. Upon official authorization/notification from the BCA, contractor shall conduct the kind, count and condition inventory of the material. Weighing the hardware is acceptable when counting. Obvious errors such as a washer erroneously placed in a bolt bin will be removed and disposed of in accordance with contract language. Loose material is to be bagged or boxed as needed and properly marked to clearly identify contents as Army-owned inventory with the NSN or part number if applicable, quantity and nomenclature. Then the contractor will remove the bins and/or material from the production line and transport them to contractor’s warehouse.

3. In addition, an automated system for marking may be used by the contractor to aid them in their inventory tracking.

2.8.1.1 Moving material during production line inactivation/relocation:

1. Initial notification of the need to invoke this process will likely come from the Army COR. However, only with documentary authorization from the BCA is the contractor to execute it.

2. Upon authorization/notification from the BCA of a partial or complete line relocation, the contractor shall move items either from one bin/line-side location to another or by moving an entire bin/rack/storage unit to a different line. The Army COR shall direct the contractor where to move the material/bin/rack/storage unit.

3. Upon authorization/notification from the BCA of a partial or complete line inactivation, the contractor shall remove the items from the production line.

a. Items that can be used by other production lines shall be relocated to those lines by the contractor as long as by adding the material, the maximum of 10 calendar days of inventory is not exceeded. For any active material that cannot fit on another production line, the contractor shall move that inventory to its warehouse for management/tracking and disposition in accordance with the sourcing order of priority. The contractor shall conduct a kind, count, condition inspection of this material prior to warehousing. Weighing the hardware is acceptable when counting, if appropriate. Obvious errors such as a washer erroneously placed in a bolt bin will be removed and disposed of in accordance with the contract. Loose material is to be bagged or boxed as needed and properly marked to clearly identify the contents as Army-owned inventory with the NSN and/or part number, quantity, and nomenclature.

b. For inactive material, the contractor shall move that inventory to its warehouse for management/tracking and disposition in accordance with the contract. The contractor shall conduct a kind, count, condition inspection of this material prior to warehousing. Weighing the hardware is acceptable when counting, if appropriate. Obvious errors such as a washer erroneously placed in a bolt bin will be removed and disposed of in accordance with contract language. Loose material is to be bagged or boxed as needed and properly marked to clearly identify the contents as Army-owned inventory with the NSN and/or part number, quantity, and nomenclature.

4. The contractor will move empty bins/shelving/racks resulting from a production line change when directed by the Army COR.

5. The contractor shall use its own material handling equipment to move any material, bins, racks, or shelving moved under this section.

2.8.1.2 Requesting/Obtaining Hardware from Army-owned Warehouses:

1. The contractor will notify the Army COR of the need for Army-owned inventory from the Army-owned warehouse. This notification should come in the form of an email, fax or telephone call with material number, quantity requested, Nomenclature, Production line supported.

2. The Army COR will work with RRAD personnel to retrieve this stock from the Army-owned warehouse using the current LMP procedures.

3. The Army COR will notify the contractor within two business days when the stock is ready for pickup at buildings 321 or 1172. The Army COR will tell the contractor where the stock is available and assist in locating the stock. The Army COR will assist in setting up a receiving bin in building 321 for Army-owned and issued material.

4. The contractor will record at a minimum the material number, quantity, and Nomenclature with any identifying supplier information (CAGE Code, Supplier name, Contract delivered under) if available. The contractor will retain this record for at least three (3) years from the date of the last invoice for the applicable products. The contractor will not be held liable for quality problems or inventory inaccuracies in Army-owned inventory such as, misidentified material, wrong quantity on location, wrong quantity delivered.

5. The contractor will deliver the hardware to the bin location on the production line. Inventory that will not fit into the bin will be handled with Returning Stock from Production line to Contractor’s Warehouse procedure.”

16. Section 4.10 Audit Readiness Requirements, number 5, the following is added to subparagraph 6: “n. Spot Buy Control Number”

17. Section 4.3 Financial and Management Control Considerations the last paragraph is hereby replaced:

“The Contractor shall invoice only after items have been placed in bins UNLESS the Contractor buys materiel in the DLA standard unit of issue, but the standard unit of issue does not fit into bins. In these cases, the Contractor shall invoice for the full DLA standard unit of issue, but part of the materiel will be stored at the Contractor’s warehouse as Army-owned inventory to be used in accordance with the sourcing order of priority. Contractor shall submit document identifier code D7B post goods issue, billing of customer, after placement of item in bins.”

18. Section 5.5 Inventory report of Army-owned material (exact count) in the contractor’s warehouse, is hereby updated to include the following bullet:

· “Number of consecutive days item inactive (applies to inactive NSNs)”

19. Section 6.1 Implementation Phase, the following is hereby added after subparagraph g: “h. Upon relabeling bins on the production/maintenance lines the Contractor is responsible to remove any inventory that would exceed 10 calendar days and move that material to the Contractors’ warehouse as Army-owned inventory to be used in accordance with the sourcing order of priority.”

20. Section 6.6 Map is hereby replaced: “Monthly, the Contractor shall provide an installation reference sheet to identify each building, bin and/or delivery point location with appropriate bin numbers for each bin location identified by this contract.”

21. Add the following requirement to Section L under Transition and Implementation: “g. Plans and actions to relabel bins on the production/maintenance lines and to remove any inventory that would exceed 10 calendar days and move that material to the Contractors’ Warehouse.”

22. Section 7.5.1 Unused Inventory is hereby replaced with the following language:

“On an annual basis, until 12 months before contract expiration, any Army-owned items on the Schedule of Supplies that have been inactive for one year (365 days) and are not projected to be active in the upcoming contract year shall be liquidated by the Contractor. Items that meet the above criteria will be taken off of CLIN 0007 upon direction by the Army COR. Army COR will determine how Army-owned items will be liquidated.

If the contract ends and the Contractor has not been awarded a follow-on contract to continue IPV support at the Army site, the Government, Contractor, and Government-designated follow-on contract contractor shall coordinate the shipment of this inventory either to the follow-on contractor or directly to the end users. This transition will occur in a manner similar to the original transition, if applicable, and the inventory must be properly identified, stored, inspected, catalogued, etc., prior to shipment. The new contractor will be required to purchase excess Commercially Sourced material from the incumbent contractor at a price not to exceed the DLA contract price of active CLIN 0001 for the final contract period. The new contractor shall purchase excess material not to exceed three months of demand quantities, based on the most recent forecasted quantity estimates. The new contractor may purchase more than the three (3) months forecasted demand quantity, if it is available and they choose to do so.

In the event there is no follow-on contract at a given site, the Government will have 12 months prior to contract expiration to notify the Contractor whether the Government will purchase any excess material. If such timely notice is provided, the Government may elect not to purchase any excess material, in which case the Contractor will be responsible for completely drawing down its inventory. In the event there is no follow-on contract and the Government has not provided the aforementioned notification to the Contractor, the Government shall purchase excess material not to exceed 6 months of demand quantities, based on the most recent forecasted quantity estimates. If available, the Government may elect to purchase more than the 6 months forecasted demand quantity. The price will not exceed the DLA contract price of active CLIN 0001 for the final contract period.”

23. Section L, Volume I – Price Proposal, is updated as follows:

a. Subparagraph a, “NOTE”, is hereby revised: “As this is a fixed price contract, prices should include all of the cost elements plus profit. Cost elements include price(s) obtained by the offeror from its vendor(s), transportation, and expenses related to the preparation for delivery requirements (preservation, packaging, marking, and bar coding) to move the replenishment parts and industrial hardware from the vendor’s facility to the offeror’s.”

b. Subparagraphs b (Material Management Price Formula CLIN 0003) and c (Material Management Price Formula CLIN 0007) are now subparagraphs c and g, respectively.

c. New subparagraph b is: “CLIN 0002 (Kitting) is to be priced with a labor rate for kit assembly only.”

d. Subparagraph c is hereby replaced: “CLIN 0003 (Material Management Price for Active NSNs) is a fixed price per NSN to accomplish the contractual objectives, including:

1. Direct labor associated with material management and distribution of bench stock to the customer site bins;

2. Direct labor associated with managing Army-owned material identified as active NSNs (including but not limited to transporting, receiving, warehousing, and distribution to bins);

3. Direct costs to establish the contractor’s off-site facility used as central receiving or storage area for bin replenishment at RRAD;

4. Overhead and general and administrative expenses;

5. Other expenses associated with material management; and

6. Profit.

e. Subparagraph d is added as follows: “CLIN 0004 (Spot Buy Cost of Item) is a fixed price per spot buy for only actual material and transportation costs associated with Spot Buys authorized by the Government. This CLIN is not to be priced until the spot buy is initiated.”

f. Subparagraph e is added as follows: “CLIN 0005 (RRAD Spot Buy Price) is a fixed price per spot buy. Pricing should include all administrative processing costs; inspection, handling, loading and unloading costs; and profit associated with Spot Buys authorized by the Government and delivered by the contractor to the designated bin locations in support of production/maintenance lines (RRAD).”

g. Subparagraph f is added as follows: “CLIN 0006 (RRAD Implementation Price) is a fixed price that should include all costs, including profit, for a 120-day or shorter implementation period to transition to full execution at RRAD in accordance with the requirements set forth in the PWS (paragraph 6.0, Implementation).”

24. Section M, Paragraphs A through G under “Price Factor”, are hereby replaced with the following: “CLINs 0001, 0002, 0003, 0005, 0006, and 0007 will be evaluated taking into account consideration of each CLIN’s respective cost factors, profit, etc., as identified in Section L. CLIN 0004, RRAD Spot Buys, is the actual material and transportation costs to RRAD associated with Spot Buys authorized by the Government. As it is not to be priced until spot buy authorization, it will not be evaluated prior to contract award.”

25. DLA estimates the current 3 months of active inventory (CLIN 0001) value that the non-incumbent successor contractor would be required to purchase from the incumbent is $1,200,000.00.

26. Attachment 2 of this amendment hereby replaces Exhibit 1 of the PWS found at attachment 0003 of amendment 0001.

27. Attachment 3 titled Vendor Managed Inventory (VMI) Procedures for Government-owned inventory or transferred inventory of this amendment is hereby incorporated into Section I clauses of solicitation SPE7LX16R0004.

28. Negotiations are hereby open.

Signed and dated amendments/replacement pages shall be provided based on the format stated below and submitted to the address and point of contact below:

Proposal revisions must be submitted via hard copy on BLUE paper as well as Compact Disc (CD) as page changes with each page identified by amendment number or date, as well as by page number. Paper submissions must be delivered to the Contracting Officer prior to the date and time of receipt for this update.

HAND CARRIED PROPOSALS ARE NOT ACCEPTABLE

VIA FACSIMILE OR EMAIL: NOT AUTHORIZED

The number of BLUE replacement pages is listed in the following chart:

OF COPIES

Part 1 – Completed Schedule of Supplies (Attachment I of the solicitation) for CLINs 0001, 0002, 0003, 0006 and 0007

Part 2 – Proposal will include entire solicitation with clause and provision fill-ins addressed

Part 1 – Transition and Implementation

Part 2 – Operations and Management

Part 3 – Information Technology

Part 1 – Past Performance

Part 2 – Financial

Documents must be submitted no later than Thursday, April 4, 2016 TIME: 1300 hours/1:00 p.m. o’clock (Eastern Standard Time, Columbus, OH).

Requests for clarification, questions and/or information concerning this amendment shall be submitted in writing via electronic mail to the following:

Primary: Heidi Treadway, Contract Specialist Email: DSCC.IPV@dla.mil Subject: Solicitation SPE7LX-16-R-0004

Alternate: Tracy Holmes, Contracting Specialist Email: DSCC.IPV@dla.mil Subject: Solicitation SPE7LX-16-R-0004

Alternate: Julie Miller, Contracting Officer Email: DSCC.IPV@dla.mil Subject: Solicitation SPE7LX-16-R-0004

The Government will acknowledge receipt within one business day. Offerors not receiving an acknowledgement within one business day should assume the request was not received and resend. The Government assumes no responsibility for delay or loss of correspondence.

Request(s) for clarification and/or information concerning this solicitation/amendment should be submitted in the following format:

Contractor Name and Fax number: _______________________

All other terms and conditions stated in the solicitation remain unchanged.

Amendment 0006 Attachments:

1. Question and Answers Part 3

2. Exhibit 1 of PWS

3. Vendor Managed Inventory (VMI) Procedures for Government-owned inventory or transferred inventory.