SPE7MX-14-R-0106_-_Draft_PWS.docx

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED

SPM7MX-14-R-0106 – Draft PWS

PAGE

NAME OF OFFEROR OR CONTRACTOR

PLEASE NOTE THAT SECTIONS A THROUGH M ARE NOT IN SEQUENTIAL ORDER

PLEASE READ SOLICITATION IN ITS ENTIRETY

SECTION A – GENERAL INFORMATION

1. This acquisition is for the purchase of sustainment spares for the following 6 military vehicles manufactured by GDLS: 1) Abrams Main Battle Tank, 2) Stryker Family of Vehicles, 3) Light Armored Vehicle Family of Vehicles, 4) Cougar, 5) Buffalo, and 6) RG-31. This action aims to effectively and efficiently provide sustainment support to the above listed vehicles though end-to-end logistical support by providing on time delivery (OTD), reducing customer wait times, responsive customer service, and conforming supplies at a reduced overall cost to the Government. The primary method of support will be customer direct shipments for the consumable NSNs managed by DLA and stock support for the Depot Level Repairable (DLR) NSN items that are managed by the individual military services. Contract terms are also incorporated to allow stock shipments for DLA managed NSNs in the event periodic stock shipments are necessary. The solicitation also includes a “Price Pending” CLIN that will allow for NSNs to be added to the any resulting contract on a “Price Pending” basis. The functions the awardee will perform include: 1) Forecasting, inventory management, warehousing, and delivery; 2) Maintaining industrial preparedness through configuration management, obsolescence management, and supplier base maintenance; and 3) Providing dedicated program customer support representatives. See Section C, Performance Work Statement (PWS), for full details. This acquisition intends to take advantage of the technologies, technical expertise, vehicle knowledge, supplier base knowledge, flexibility, existing business relationships, and business practices of the Original Equipment Manufacturer (OEM) the contractor.

1. Under this solicitation, the resulting contract will be a Fixed-Price with Economic Price Adjustment (EPA) for CLINs 0001 and 0003 and Firm Fixed Price for CLINs 0002 and 0004, Indefinite Quantity Contract issued under FAR Part 15 with a 3-year base period and two 1-year option periods that may be exercised at the discretion of the Government, for a total contract period of five years, if both options are exercised. The resulting contract will require Time Definite Delivery (TDD) standards, or shorter if offered, for customer direct shipments that include CONUS (Continental US), OCONUS (Outside Continental US) and Foreign Military Sales (FMS). Shipments to stock locations will not require TDD standards and delivery requirements will be based on production lead-times. GDLS will not merely provide individual spare part support, but will also be required to perform functions that include supply chain and inventory management, warehousing, delivery, and material forecasting for the DLA managed NSNs. An expected outcome under this acquisition is to ensure industrial preparedness for the project’s vehicles through configuration management, obsolescence management, and supply base maintenance; while also providing a reduction in the Government supply chain, inventories, and overall Government costs; and improving response time.

2. NSNs may be added on a Price Pending basis. Those NSNs have not yet been identified. The parameters for adding NSNs on a Price Pending basis including the pricing methodology will be detailed in an upcoming section. The pricing methodology for adding NSNs will be consistent with the applicable policies and guidelines of the FAR and DLAD.

3. The solicitation consists of the written Request for Proposal (RFP) and an Excel Spreadsheet Attachment. Please complete the written RFP and Excel Spreadsheet attachment with your company’s offer. The solicitation and Excel Spreadsheet Attachment are available for download on the DLA Land and Maritime Internet Bid Board System (DIBBS) located at https://www.dibbs.bsm.dla.mil/RFP/.

4. Please note that all pages of the solicitation must be completed and returned to the Bid Room. E-mail offers are acceptable, please note the following: Submission of proposal by electronic commerce (e-mail) is allowed. E-mailed proposal shall not be transmitted directly to the contracting officer. Submit e-mailed proposals to the Bid and Abstract Room at: ContractorProposalDLALandandMaritime@dla.mil. E-mailed proposals cannot exceed 15 MB. The item descriptions posted in the solicitation will be in full force throughout the life of any contracts issued under this solicitation, unless modified by the contracting officer.

5. SCOPE: In addition to those NSNs specified in the Section B spreadsheet, the scope of this acquisition is for supplies and logistical support for all other NSNs that support the following GDLS vehicles 1) Abrams Main Battle Tank, 2) Stryker Family of Vehicles, 3) Light Armored Vehicle Family of Vehicles, 4) Cougar, 5) Buffalo, and 6) RG-31. NSNs within the scope may be added to the contract at a later date in accordance with DLAD clause 52.216-90006, “Addition/Deletion of Items”, at the discretion of the Government.

The NSNs shall be priced under contract line item numbers (CLINs) 0001, 0002, 0003, and 0004 in the Section B spreadsheet. See Section B paragraph 2 for CLIN structure details.

5.1. The offeror must comply with all technical data requirements as cited in the Procurement Item Descriptions (PIDs). No alternate offers will be considered prior to award.

5.2. If at any point during the performance of a contract that results from this solicitation an NSN is identified as being part of a special small businesses program, such as 8(a) or AbilityOne, the NSN may be removed from the contract via modification. When an NSN is identified the Contracting Officer will send notification of intent to remove the NSN and the contractor will be required to provide the Government with the following information within 10 days of receiving the notice: current stock on hand and due-in quantities. A modification removing the NSN will not be issued until the contractor’s existing stock on hand and due–ins are exhausted.

6. Cost or Price Data: DLA Land and Maritime requires that the offeror provide, on request, cost or price data for any NSNs that may require cost or pricing data. In the event the Government decides an audit type review of any facet of the pricing process is necessary, by DCAA or DCMA, full cooperation shall be required.

7. A Subcontracting plan and Surge and Sustainment plan are required.

8. For the consumable NSNs managed by DLA, the contractor shall perform all aspects of (see Section C, PWS, for complete details):

· Forecasting

· Demand planning

· Inventory management (i.e., stock levels & locations)

· Storage/warehouse operations

· Supplier management (Maintaining sources of supply)

· Timely notification of obsolescence and equipment upgrades

· Configuration Control and Obsolescence Management Support/Coordination to maintain industrial preparedness

· Buyback excess retail level inventory resulting from obsolescence issues/configuration changes that were not identified in a timely manner

· Dedicated 24/7/365 program customer support

9. For the repairable NSNs managed by the services the contractor shall perform all aspects of (see Section C, PWS, for complete details):

· Providing shipment stock support

· Supplier management (Maintaining sources of supply)

· Timely notification of obsolescence and equipment upgrades

· Configuration Control and Obsolescence Management Support/Coordination to maintain industrial preparedness

· Buyback excess retail level inventory resulting from obsolescence issues/configuration changes that were not identified in a timely manner

· Dedicated 24/7/365 program customer support

10. The goals of this acquisition are:

· Contractor management of DLA consumable NSNs on the resulting contract

· Stock support for DLR NSNs

· Maintaining industrial preparedness through configuration management, obsolescence management, and supplier base maintenance

· Reduced Government costs (inventory/overhead)

· Improved supply chain performance

· Improved end-to-end supply chain visibility

· Improved Customer Service

11. Delivery orders under each contract may be placed by the activities listed below. DLA Land and Maritime will administer the basic contracts, but each activity may issue and administer its own delivery orders for NSNs managed by that activity. Management of the NSNs could be changed/transferred to another activity or DoD Agency over the life of the contracts; in which case other ordering activities may be added to the list below. Orders will be issued using Electronic Data Interchange (EDI) transmissions. Electronic invoicing will be mandatory. The centers are:

DLA Land and Maritime (Columbus, OH) DLA Troop Support (Philadelphia, PA) DLA Aviation (Richmond, VA) DLA Land at Warren (Warren, MI) DLA Albany (Albany, GA)

12. The proposals received in response to this solicitation will be evaluated as described in Section M. Section L delineates deliverables required for proposal evaluation.

SECTION B – SCHEDULE OF SUPPLIES

1. This acquisition is for the delivery of supplies for the following 6 military vehicles manufactured by GDLS: 1) Abrams Main Battle Tank, 2) Stryker Family of Vehicles, 3) Light Armored Vehicle Family of Vehicles, 4) Cougar, 5) Buffalo, and 6) RG-31. The project’s NSNs are listed in the Section B spreadsheets attached to the RFP in DIBBS. NSN data including the pricing, PIDs, surge, etc are found on these spreadsheets. For applicable NSNs, drawings are available for download in cFolders located at https://pcf1.bsm.dla.mil/cfolders. Any problems experienced downloading the RFP, spreadsheets, or drawings should be directed to the contract specialist listed as the POC on the cover sheet of this solicitation.

2. The Section B spreadsheet tab titled “Pricing”, contains columns for proposing base year pricing for the NSNs as follows:

· CLIN 0001 – The offeror shall input a unit price for each NSN for customer direct orders into the Section B spreadsheet for the following:

· CLIN 0002 – The offeror will then enter a cost, per NSN, that will cover supply chain management costs to include:

CLIN 0001 plus CLIN 0002 is the CONUS and OCONUS customer direct unit price (CDUP) for delivery orders.

· CLIN 0003 – The offeror will enter a stock unit price (SUP) for DLA Direct and service direct shipments to the Government’s warehouses. CLIN 0003 is a stand alone unit price for stock orders. Stock orders will not require delivery IAW TDD standards. The Government required delivery for stock is annotated on the Section B spreadsheet. DLR NSNs have quantity range pricing for CLIN 0003. Please supply quantity range pricing for the DLR NSNs. The estimated unit price for DLR NSNs will be based on the average weighted unit price (AWUP) formula found in provision DLAD 52.216-9013.

· CLIN 0004 (applies to FMS customer direct shipments only) – Offerors will enter a cost, per NSN, that will cover supply chain management costs for FMS shipments to include:

CLIN 0001 plus CLIN 0004 is the FMS unit price (FUP) for FMS customer direct delivery orders.

· CLIN 0005 (Price Pending NSNs) – NSNs may be added to the contract on a “Price Pending” basis in the future as they are identified. NSNs that are added on a Price Pending basis will be listed as “Price Pending” in CLIN 0005 when added. Upon receipt of a requirement for a Price Pending NSN, pricing and delivery for CLINs 0001 through 0004 will be requested for the NSN based on the NSN’s individual status as either a DLA managed consumable or a DLR service managed item. The contractor has 30 days to submit pricing and delivery from the date a pricing and delivery request is made by the Government. Once the pricing and delivery is accepted, the item will move from a Price Pending item to a Priced NSN and be activated under the same terms and conditions as any NSN added to the contract. See the Performance Work Statement (PWS) in section C for details regarding adding NSNs to the contract. By submitting an offer for this solicitation the contractor agrees to supply any Price Pending items once a demand is identified. For the purposes of this solicitation, the deliverable for this CLIN is a pricing methodology for any Price Pending NSNs that may be added to this contract. The Price Pending methodology should be consistent with the FAR and DLAD.

· CLIN 0006 – The offeror will enter all “transition” costs necessary to implement the program. The offer should be submitted in the space below. The “transition” costs should include all costs that will be associated with program implementation and it will be a one-time charge payable at the completion of the implementation stage. “Transition” costs may include all of the following:

CLIN 0006 Unit Price: $_______________________________

Please return a completed CD or DVD (for pricing, etc) with your company’s offer. Please clearly identify the CD or DVD with SPM7MX-14-R-0106, COMPANY NAME and CAGE CODE, and date of submission.

3. Please note that the Procurement Item Description (PID) data found in the Section B Spreadsheets tab titled “Item Descriptions” and this solicitation will form the basis for proposal and the PIDs may contain additional requirements not described by the Quality Control Code (QCC) or Place of Inspection Code (PIC) coding guidance. The Section B spreadsheets include information such as QCC, PIC, production lead time (PLT) of record, etc. PIDS will be retained in the final contract in CD format and will remain in effect for the duration of the contract unless otherwise changed by the KO.

4. Section B Spreadsheet Explanation

4.1. Section B Spreadsheet tab titled “NSN Data”

· NSN/ITEM NAME/UNIT OF ISSUE: Self Explanatory.

· ADQ: Estimated annual demand quantity.

· PIC: Place of Inspection Code – A “1” or “C” requires origin inspection. All other codes require destination inspection.

· QCC: Quality Control Code (a three position code) – See QCC definitions at the end of the document.

· AMSC: Acquisition Method Suffix Code. See DFARS 217.7506 Part 2-201.1.

· MWR – Monthly Wartime Rate. A quantity in this column indicates surge requirements apply to the NSN.

· Criticality Code – NSN essentiality code

· AAC – Acquisition Advice Code

· SOH – Current stock on hand

· ADF – Estimated Annual Demand Frequency.

· Applicable PPI Table – Lists the applicable producer price index (PPI) table per NSN IAW clause I16C23 (b)(1).

· Delivery Order Minimum / Maximum – Self-explanatory.

4.2. Section B Spreadsheet tab titled “Pricing”

· CLIN 0001 - Offeror’s Unit Price - Offeror shall enter their unit price for each NSN for customer direct delivery orders.

· CLIN 0002 – Offeror’s CONUS and OCONUS Supply Chain Management Cost - Offeror shall enter their cost to be added to the Offeror’s Unit Price for CONUS and OCONUS customer direct delivery orders.

· CLIN 0003 – Stock Unit Price - Offeror shall enter an all-inclusive price for each NSN for DLA Direct (stock) delivery orders.

· CLIN 0004 – Offeror’s Supply Chain Management Cost for FMS Shipments – Offeror shall enter its cost to be added to the Offeror’s Unit Price for FMS customer direct delivery orders.

· CLIN 0005 – Price Pending NSNs - The offeror shall submit a pricing methodology for any Price Pending NSNs that may be added to this contract.

· CLIN 0006 – Transition Costs – The offeror shall submit its offer for all one-time costs associated with the set-up necessary to perform the contract.

· Government Required Delivery for DLA Direct and service direct (Stock) Orders – Self-explanatory. This delivery time is also the expected ramp-up period.

· Proposed Delivery for DLA Direct and DLR direct (Stock) Orders – Offeror will enter their offered delivery for DLA Direct and DLR direct orders for each NSN in days. If no entry is made in this column for an NSN(s), it will be determined that the offeror is complying with the required delivery.

· Note: Yearly percentage adjustments to CLINs 0002 and 0004 are entered in Section I that follows.

4.3. Section B Spreadsheet tab titled “Item Descriptions”

· Offerors must comply with the item descriptions and packaging requirements listed on this tab throughout the duration of any resultant contract, unless modified by the KO. If there is a discrepancy between the PID and/or packaging data on this tab and any other NSN data referenced anywhere in the RFP or on DIBBs, this tab will take precedence.

4.4. Packaging

· Packaging is as noted in the PIDs.

4.5. Section B Spreadsheet tab titled “Sources”

· A listing of the approved part numbers or applicable drawings. See PIDs for complete details.

5. Surge Requirements: The NSNs in the Section B spreadsheet tab titled “NSN Data” that have a quantity in the column titled “MWR” (Monthly Wartime Rate) have been designated as surge NSNs and are covered under clauses DLAD 52.217-9006, 52.217-9007, and 52.217-9010 and provisions DLAD 52.217-9008 and 52.217-9009. The individual quantity requirements for each period are identified. Offerors are required to comply with the specific surge clauses/provisions. Surge Support is an evaluation factor.

The MWR is the quantity to be delivered every 30 days for 6 (six) months. The following table outlines deliverables for surge and sustainment.

Surge Surge Surge Surge

CAP**

Test Plan Testing Report

UNPRICED

UNPRICED

UNPRICED UNPRICED

DUE WITH OFFER

If required after award If required after award If required after award

**Capability Assessment – CAP (is to be submitted via the WICAP-eCAP website (https://www.dla.mil/wicap/) and send a copy along with proposal to the buyer)

MWR is the surge quantity that may be ordered by the Government in a military contingency. The Government is not obligated to order any of the surge quantities and the contractor should not ship such quantities without receipt of an order clearly designated for surge quantities.

SECTION C – PERFORMANCE WORK STATEMENT

1. The contract intends to establish contractual partnership between the contractor and the Government to improve the level of material availability of assets to military services for customers worldwide. The contractor shall:

· Facilitate sharing of forecast data and other relevant logistics information

· Maintain industrial preparedness through configuration management, obsolescence management, and supplier base maintenance

· For each consumable NSN, forecast demand and establish an appropriate asset/stocking level and position

· Function as a source of supply for the population of NSNs listed in the Section B spreadsheet

· Coordinate and synchronize its logistics and production processes to provide a predictable and reliable supply of NSNs to meet normal and surge requirements

· Manage the contractual relationships of the suppliers that will provide the NSNs

· Manage and provide the warehousing network for DLA managed NSNs

· Manage the supplier chain

· Notify the Government of NSN obsolescence and/or the anticipated effect on demand/usage resulting from a weapon system configuration change

· Provide dedicated program customer support 24/7/365

· Provide CONUS, OCONUS, and FMS customer direct shipments to TDD delivery standards for the DLA managed consumable NSNs included in this acquisition

· Provide occasional DLA Direct support shipments for the DLA managed consumable NSNs included in this acquisition

· Provide service direct stock support shipments for the DLR service managed NSNs included in this acquisition

2. Strategic Objective: The partnership between the contractor and DLA will enable optimum customer support by allowing the OEM to maintain industrial preparedness, leverage best pricing from the supplier base and also rely on the contractor to incorporate knowledge of obsolescence and vehicle platform upgrade releases into the forecast to ensure optimal inventory and supplier base management resulting in improved support and reduced costs to the customer. Under the contract, DLA’s strategic objectives, which are to be achieved through contract performance, are to consistently provide responsive, timely shipment of conforming parts to military customers at a reduced overall cost. This shall be accomplished by the contractor via actions that include the following: satisfying customer demands on time, providing timely information regarding obsolescence/configuration management, providing accurate forecasting through supplier management, eliminating delinquent NSNs, establishing a reliable warehousing and distribution network, and leveraging purchasing volume to obtain price concessions from the supplier base. Ultimately, the strategic objective is to improve supply chain performance at a reduced cost to the customer.

3. Implementation, Ramp-up, and Execution Stages: The awardee will be required to attend a post-award conference at DLA Land and Maritime, upon request, prior to commencement of the implementation period. The purpose of this conference will be to highlight essential requirements, coordinate implementation timelines, and answer any questions the contractors may have prior to commencement of work.

3.1. Implementation Stage

3.1.1. During the implementation stage the contractor shall put in place the infrastructure, EDI capabilities, systems, and processes necessary for the contractor to meet the Government’s performance requirements for the execution stage. Within _____ days (Offeror fill-in – Government required delivery is 30 Days) after award, the contractor shall have EDI capabilities and systems ready to support the contract. Within _____ days (Offeror fill-in – Government required is 60 Days) after award, the contractor shall make their warehouses available for inspection. The implementation stage shall last no more than _____ days (Offeror fill-in – Government required delivery is 90 Days).

3.1.2. If the awardee fails to implement the activities described in its implementation plan within the times specified as to endanger timely and successful completion of the implementation stage, the KO may terminate the contract for default. The KO will monitor the contractor’s progress toward meeting the milestones outlined above throughout the implementation period.

3.2. Ramp-up Period

3.2.1. Customer Direct Orders: The ramp-up period for each NSN that may be supported through customer direct shipments will be the awarded PLT plus _____ days (Offeror fill-in – Government required is 90 Days) or the point in time for which the Government has depleted inventory, whichever is later. No customer direct orders will be issued prior to each NSN’s stated ramp-up period (PLT + _____ days - Offeror fill-in – Same as above in paragraph 3.2.1), unless mutually agreed to by both parties. The PLTs to be used for the ramp-up determination will be the awarded delivery for DLA Direct orders for each NSN. The ramp-up period for awarded NSNs start on the effective date of contract award. The ramp-up period for add-on NSNs will start upon the date of the modification adding the NSN(s). Individual NSNs will be “turned on” for customer direct orders when their respective ramp-up periods are completed and the Government’s inventory has been depleted, whichever is later.

3.2.2. DLA will draw down existing stock, to include purchase orders in the pipeline, and turn on NSNs for customer direct orders when existing Government inventory has been depleted to required levels (for some NSNs the Government must maintain inventory for special programs). Customer direct delivery orders will not be issued until an NSN is turned on. The Government will provide stock on hand and due-in data during initial stages of the contract, directly to the contractor at time of award and every month thereafter, an NSN is turned on.

3.2.3. Monthly status reports will be required to be provided by the contractor of their progress towards meeting their ramp-up schedule.

3.2.4. At the end of the ramp-up period for each NSN, the contractor shall be fully prepared to perform requirements in accordance with the terms of the contract. It is expected that the majority of awarded NSNs will have completed ramp-up by 360 days.

3.2.5. The awardee shall be ready to support stock orders to DLA or the services not later than _____ days (Offeror fill-in – Government required is 30 Days) after contract award.

3.2.6. During the ramp-up period the percentage of turned-on NSNs which are available and ready to support customer direct shipments (PTASS) will be monitored and calculated at least every 30 days. The PTASS should be at least 95% and will be monitored from 120 days after the effective date of award through the end of the first contract year. The PTASS is a measure of whether or not stock is available for NSNs that could receive a delivery order.

3.3. Execution Stage

3.3.1. The execution stage for each contract will begin on an NSN by NSN basis once ramp-up for a particular NSN is completed.

4. Requirements

4.1. The contractor is required to provide On Time Delivery (OTD) of conforming parts, in the correct quantity, to the specified destination for each delivery order issued against the basic contract. OTD is defined to be receipt of conforming supplies at a designated address in the requested quantity on or before a required delivery date. Other metrics will be detailed below, the other metrics include Fill Rate (FR), Material Availability (MA), Cost Reduction, Quality Assurance (QA), and Back Order Management Performance (BO) will also be measured to track contractor performance.

4.1.1. Measuring OTD Performance. DLA will use the Enterprise Linked Logistics Information Source (ELLIS, http://ellis.dscr.dla.mil/), to measure the contractor’s performance on a monthly basis. For tracking purposes, the date the order is issued will start the OTD tracking. For orders that call out inspection at origin, the date of acceptance by the Government will be used to determine the date of delivery. For orders with destination inspection and acceptance, the Carrier Tracking Data will be used to determine the date of delivery, which ends the OTD period (these orders will be Fast Pay if they are customer direct and less than $100,000 in value). The contractor will be required to utilize and access the Vendor Shipment Module (VSM) for shipping information. Carrier tracking data must be provided for each shipment. The data may be provided in the VSM system (Tracking Nbr field) or via an approved EDI transmission that is suitable for ELLIS.

4.2. For the DLA managed consumable NSNs, the contractor shall forecast demands and optimum stocking level quantities based on customer requirements for the DLA managed NSNs awarded. The contractor shall manage stock levels to meet the needs of the customer and the TDD standards included in Section F. The contractor will be provided Government historical data on a one-time basis for performing the forecasting requirement. The Government makes no guarantees or warranties that future demands will be reflective of historical data. The contractor shall independently assess the value of data provided in developing forecasts. This data will be provided one time within 30 days of contract award.

4.3. The contractor is required to notify the KO of anticipated stock-outs at least 60 days in advance based upon inventory levels, estimated demands and scheduled due-ins. The contractor shall notify the KO of unanticipated stock-outs as soon as possible in advance of the stock-out. When a stock-out occurs or when the contractor identifies a future out-of-stock position on any NSN, the contractor shall provide the following to the KO within two business days:

· NSN

· Noun/Nomenclature

· Date when the NSN will not be available for order

· Expected date when the NSN will be back in stock

· Estimated # of days the NSN will be out-of-stock

· Forecasted monthly demand rate

· Actual monthly demand rate for the preceding six (6) months

· Reason out-of-stock

· Efforts taken to correct the out-of-stock position

· POC: Name, phone number, & email address

4.3.1. The contractor will provide bi-weekly updates regarding the progress it has made to correct the out of stock position.

4.4. Within 10 days after a stock-out, or when the contractor identifies a future stock-out position, the contractor shall provide a root cause analysis to the Government and the process changes necessary to prevent future out-of-stock positions.

4.5. Performance Review Meetings (PRMs): Prior to the execution stage, Government and contractor representatives will conduct PRMs on at least a quarterly basis to discuss forecasting projections, assess contractor performance, and action item(s) with respect to the contract. For the remainder of the contract period, PRMs will be held on at least a yearly basis, at the discretion of the Government, to assess contractor performance, discuss forecasting projections, action item(s), foster solutions to problems encountered, discuss the potential impact of any materiel obsolescence or upcoming equipment/parts upgrades, and agree upon steps forward. The contractor shall provide status of schedules, program goals, and any process improvement initiatives. The reviews shall provide the Government with the contractors’ progress and performance on all tasks defined in the contract, to include a brief on audits performed ensuring quality and compliance with NSN technical requirements, and ARP status/issues. The meetings will be co-chaired by DLA Land and Maritime and the contractor. The contractor shall develop an agenda and distribute the agenda to perspective attendees no later than 15 days before the PRM. Meeting slides and resulting minutes for these reviews shall be submitted in contractor’s format and made available in electronic format to the attendees. The contractor will provide PRM minutes within 14-days after each PRM. The contractor shall prepare a brief summary of each major issue identified (either both party), identify all agreements achieved, and any open issues which require further coordination or action. Other program reviews may be conducted as mutually agreed between the Government and the contractor. During each PRM, the contractor shall provide status on the following elements:

· Program overview including overall schedule status

· OTD issues

· FR issues

· MA issues

· Cost Reduction issues

· Quality (QA)/ Safety issues

· Back Order (BO) issues

· Configuration management issues

· Obsolescence and Equipment Upgrade issues

· Quality assurance issues

· Alternate Release Procedure issues (if authorized)

· Customer support service

· Production issues

· Transportation issues

· Sub-vendor/Industrial Base issues

· FMS issues (if applicable)

· Demand Data by NSN

· Other Issues

· Any additional topics proposed by the Government

· Previous PRM open action NSNs

4.6. Delivery: Delivery shall be FOB Origin and Destination. All FMS orders will ship on an FOB Origin basis with inspection and acceptance at origin also. All non-FMS shipments will be made on an FOB Destination basis with inspection points based on the individual requirements of each NSN. The contractor shall consolidate shipments to the same destination whenever possible. The contractor shall obtain and retain all documentations, tests, and/or inspections specified in the technical data packages to verify the NSN being supplied is conforming. See Section F for additional information regarding TDD standards and stock delivery requirements. FOB destination point for overseas shipment is a CONUS port of loading.

4.7. Contractor's Progress, Status and Management Reports

The contractor shall submit to the KO on a monthly basis the following:

· Delivery Performance/OTD Report

· FR performance report

· MA performance report

· Cost Reduction performance report (submitted quarterly)

· QA performance report

· BO performance report (submitted quarterly)

· Monthly Material Acceptance Rate to include a Product Quality Deficiency Report (PQDR)

· Plan of action on problem areas related to any performance factor

· Notification of obsolescence issues and/or upcoming platform changes/upgrades in the next 180 days

· Ramp-up Progress Report (during the ramp-up period)

4.8. Liaison Support: The contractor shall interface with the Government to facilitate (1) improved delivery performance; (2) decrease costs; and (3) improved customer service. The contractor shall provide customer support personnel that are accessible to the customer at all times, twenty four hours a day, seven days a week, three hundred sixty five days a year, who will have the ability to respond to customer calls. The contractor shall provide a point of contact listing of the contract’s customer support personnel to the Contracting Officer on a monthly basis. In addition, the customer service representatives should have access to all in-transit shipping information to allow individual customers to track in-transit shipments.

4.9. System Interface and Integration

4.9.1. Order placement shall be by EDI transmissions in accordance with ANSI X12 Standards through a registered Value Added Network (VAN). Issuance of an EDI transmission constitutes a binding order. The contractor is required to commence performance upon receipt of a binding order.

4.9.2. In general, the process will work as follows: The customer will submit requisitions, requisition follow-ups and requisition cancellations to DLA Land and Maritime. The customer requirements will be then forwarded to the contractor via a delivery order issued from the Enterprise Business Systems (EBS) in the appropriate EDI transaction set. The contractor shall provide real-time shipping status corresponding to the customer’s requisition using an appropriate transaction set. At a minimum, the following EDI transaction sets will be used:

· EDI 850 (Purchase/delivery order)

· EDI 997 (Functional acknowledgement)

· EDI 856 (Shipment notice manifest)

· EDI 810 (Invoicing)

4.10. Purchasing System Requirements

Using an established or enhanced network of suppliers, the contractor shall use best practices and techniques to obtain each NSN at the lowest possible price in meeting the objectives and requirements of the contract, or as may be otherwise directed by the KO. The contractor shall maintain such purchasing records as are necessary for the proper administration of provisions of the contract that bear on the element of price or equitable price adjustment.

4.11. Subcontracting Plan

A Subcontracting plan per FAR 52.219-9 is required.

4.11.1. To ensure that small business concerns continue to be an integral supply chain partner in military support, subcontracts should be awarded to domestic small businesses in the various socio-economic programs whenever practicable.

The large business contractor shall ensure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (SDB), 8(a), and woman-owned small business concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance. In order to assure small businesses have equitable opportunity to compete, the contractor shall publicize subcontracting opportunities on the Small Business Administration’s (SBA) SUB-Net (http://web.sba.gov/subnet).

4.11.2. Any contractor or subcontractor failing to make a good faith effort to comply with the requirements and meet goals of the subcontracting plan will be in material breach of contract. “Failing to make a good faith effort” means a willful or intentional failure to perform in accordance with requirements and goals of the subcontracting plan.

4.11.2.1. If the contractor fails to meet its subcontracting goals and the KO decides that the contractor has failed to make a good faith effort to comply, the contractor shall be subject to liquidated damages in an amount to be determined by the Government. See FAR 52.219-16 – Liquidated Damages Subcontracting Plan.

4.11.2.2. Before the KO makes a final decision that the contractor has failed to make a good faith effort, the KO shall give the contractor written notice specifying the failure(s) and permitting the contractor to demonstrate what good faith efforts have been made and to discuss the matter. Failure to respond to the notice may be taken as an admission that no valid explanation exists. If, after consideration of all the pertinent data, the KO finds that the contractor failed to make a good faith effort to comply, the KO shall issue a final decision to that effect and require that the contractor pay the Government liquidated damages IAW FAR 52.219-16 – Liquidated Damages Subcontracting Plan.

4.11.2.3. The contractor shall have the right of appeal under the clause in this contract entitled, Disputes (FAR 52.233-1), from any final decision of the KO.

4.11.2.4. Liquidated damages shall be in addition to any other remedies that the Government may have.

5. Quality Requirements

5.1. The contractor shall institute a program that ensures the supplies received from its sub-contractors are in strict accordance with the technical and quality requirements specified for each NSN. Under all circumstances, regardless of the source of supply, all products shall conform to the most recent technical requirements. Unless otherwise provided by the contract or this PWS, or as otherwise authorized by the contracting officer in writing, the contractor shall:

5.1.1. Establish suppliers’ parts qualifications, accomplish supplier delivery and quality performance reviews, and shall evaluate processes to ensure 100% quality compliance.

5.1.2. Ensure that its parts vendors, suppliers and sub-contractors comply with all applicable Government technical requirements.

5.1.3. Ensure that its sub-contractors incorporate a system for obtaining, handling and supplying Original Equipment Manufacturers (OEM) certified parts, and that such system is included in contractual instruments with sub-contractors throughout the entire supply chain.

5.1.4. Ensure that its sub-contractors establish and maintain a system or process that will provide clear traceability to the actual manufacturer of the parts. If the contractor is not the manufacturer of the supplies, evidence must be retained that documents the supplies were produced by an approved manufacturer.

5.1.5. Comply with all clauses and provisions included in this solicitation.

5.1.6. Alternate Release Procedures

5.1.6.1. For NSNs that require source inspection, the Government may authorize Alternate Release Procedures (ARP) or permit the contractor to perform their own inspections on an NSN by NSN basis. ARP means that a DCMA Quality Assurance Representative will not perform standard Government source inspection (i.e. the DCMA has no inspection requirements and/or duties). Under ARP, the Prime contractor is responsible to complete all required inspections. Records documenting that all required inspections have been processed and approved/certified shall be maintained and made available for review by the Contracting Officer, as deemed appropriate, from the effective date of award until four years after payment on the final delivery order issued. For NSNs where ARP is authorized and the WAWF Receiving Report indicates ARP applies (the ARP box is checked at the top of the WAWF receiving report), the prime contractor is not required to include or attach the ARP statement required by DFARS 246.471(b)(3) with the shipping documentation.

5.1.6.2. ARP does not apply to NSNs that are First Article Test (FAT) or Critical Safety Items (CSI). The DCMA will conduct inspections on NSNs identified as FAT or CSI. Orders will be issued containing the applicable testing and/or inspection requirements for the DCMA to take action on for FAT or CSI NSNs. Note: The DCMA will not engage in inspections on FAT NSNs if the source is waived or becomes waived on these requirements, at which point ARP will apply for those instances where source inspection is required.

5.1.6.3. NSNs other than FAT or CSI, which require source inspection, may at the discretion of the contracting officer be removed from ARP and orders will be issued containing the applicable testing and/or inspection requirements for the DCMA to take action on.

5.1.6.4. Until Alternate Release Procedures (ARP) or relaxed inspection requirements are approved by DLA Land and Maritime and DCMA, the contractor is required to have inspections conducted for all NSNs that require source inspection per the codes specified within subject solicitation. The inspections will take place at the place of manufacture of the item(s) and can be for an entire lot of items prior to shipment to either the vendor’s distribution warehouse or the destination called out in a delivery order issued for the item. The DCMA for the awardee will issue Letters of Delegation to the cognizant DMCA Quality Assurance Representative for the manufacture of the item to perform required testing and /or inspection. When the awardee notifies DLA Land and Maritime that the lot of items will be ready for inspection, DLA Land and Maritime will issue an order that will only include the applicable testing and/or inspection requirements for DCMA to take action on.

At the end of the implementation phase, the awardee will provide DLA Land and Maritime with the place of inspection for all items that will require source inspection after that point. The Government reserves the right to require origin inspection on any NSN, at any time during the duration of the contract, which will require the awardee to provide the place of inspection for that NSN(s) at such time.

5.2. The contractor shall maintain a documented system to control the quality of the product supplied to the customer. The contractor is required to provide 100% conforming product, in the correct quantities. The contractor shall establish a process for inspection of incoming supplies for compliance with contract requirements. In addition to any physical inspections, the contractor shall ensure that all certifications and traceability documents will be available to DLA for review, as needed. Supplies found to be nonconforming shall be segregated from supplies to be delivered to the customer, and in no event shall such nonconforming supplies be furnished under the contract. The contractor shall conduct periodic audits or reviews of the quality assurance processes and procedures of its sub-contractors and shall monitor its vendor qualification process on a continuous basis. Additionally, DLA reserves the right to review and audit the contractor’s quality processes to include entering the contractor’s facility. The contractor will be given written notification and allowed adequate time to prepare for a visit.

5.3. Supplies are nonconforming when they are defective in material or workmanship or are otherwise not in conformity with the contract requirements. If the materiel delivered to the customer under this contract does not meet quality or contract requirements, the contractor will be notified and given instructions on how to correct the issue. The cost of replacement parts and the storing of the nonconforming parts will be the responsibility of the contractor. Defective parts returned to a contractor should not be stored at Government expense and should not be subsequently supplied to the Government again (after repair, etc.) without prior written approval by the KO. Additionally, if any portion of delivered supplies is determined to be nonconforming, the government may reject the entire lot/set. The burden to demonstrate 100% conforming product rests with the awardee. The government reserves the right to terminate for default in whole or in part per FAR 52.249-8 Default (Fixed-Price Supply and Service).

5.4. Inspection will be determined by the NSN.

5.5. All technical and/or quality issues or questions that develop during the contract period that will prevent the delivery of material should be provided to the KO as soon as possible. This includes questions or issues as a result of first article testing, waived sources, etc. The Government will normally respond in 10 days with an actionable response or notice of continuation in the case of Engineering Support Activity (ESA) consultation.

5.6. For Government drawing NSNs that do not require FAT, the contractor will require of its subcontractors all tests and inspections specified in the technical data packages.

6. Industrial Preparedness - Obsolete Material/Configuration Change Notification

6.1. The contractor will be significantly involved in the Engineering Change Proposal (ECP) process along with the provisioning military service. As such, the contractor shall notify the Contracting Officer immediately upon determining the unavailability of obsolete materials or components. In addition, the contractor shall notify the Contracting Officer immediately upon determining there has been a configuration change to the project’s vehicles which would alter the items needed to support the project’s vehicles. All pertinent information resulting from the part number change/part obsolescence such as, part numbers affected, specific vehicles affected, updated supplier information, updated part numbers, updated drawing information, timeline of updated part(s) implementation, or any other relevant information shall be provided to the Contracting Officer as soon as it is available.

6.1.1. Should there be an opportunity to purchase the technical data package of an obsolete item, the Government obtains the right of first refusal to purchase the data package.

6.1.2. Should an obsolete item be inadvertently ordered, the contractor is responsible for notifying the Contracting Officer the item is obsolete and the material should not be shipped to the customer. If an item is to become obsolete within 180 days of an order, the contractor should notify the Contracting Officer so the order can be confirmed with the customer. If an obsolete item is shipped to the customer for any reason, it will be returned to the contractor at the contractor’s expense.

6.1.3. Should an incorrect item be ordered due to a configuration/part number update/change, the contractor is responsible for notifying the Contracting Officer of the issue and the incorrect parts should not be shipped to the customer. If incorrect parts are shipped to the customer due to a configuration/part number update/change, the part(s) will be returned to the contractor at the contractor’s expense.

6.1.4. Please note, DLAD clause 52.211-9012 - OBSOLETE COMPONENTS/MATERIALS also applies to the solicitation and any resulting award.

6.1.5. Configuration Change/Obsolete Inventory Disposition – Regardless of the initiating office (Government or contractor initiated action) of any configuration change or obsolescence incident, the Government is under no obligation to purchase inventory that may be left in the contractor’s stock/possession as a result of any configuration change or obsolescence incident.

7. Wide Area Workflow: All invoices and receiving reports, when required, will be electronically transmitted through Wide Area Workflow (WAWF). The contractor shall create an 856 (electronic receiving report) and 810 (electronic invoice) for all orders unless Fast Payment procedures are authorized. On Fast Pay orders the contractor shall create an 810 (electronic invoice) only. WAWF/EDI guides are available on the WAWF website at https://wawf.eb.mil.

8. Supply Tracking

8.1. The contractor shall provide visibility of NSNs supplied under this contract to the Government. The contractor shall maintain, collect, and disseminate data to the Government for use in the measurement of performance metrics. The contractor shall provide data to the Government, as necessary, and provide all appropriate security measures to protect the data integrity from improper release.

8.2. A database, including at a minimum the elements set forth below, is to be established and maintained by the contractor in the contractor’s format and in a manner that allows the Government to monitor performance against the contract metrics and requirements. If the contractor’s database format is insufficient to allow the Government to monitor performance against contract metrics and requirements, the KO may request changes at no cost to the Government. Inclusion of elements in addition to those below shall be subject to mutual agreement. The Government shall have access to such database. The database shall be subject to Government review/audit.