Draft_PWS.pdf

WATER PURIFICATION SYSTEMS

This solicitation provides worldwide logistics parts support for the 600 GPH and 3,000 GPH Reverse Osmosis Water Purification Units (ROWPU), the 1500 GPH Tactical Water Purification System (TWPS) and the Lightweight Water Purifier (LWP). The contractor will assume total supply chain management for the parts listed in Exhibit 1, and supply the required parts to both military and civilian customers in accordance with the requirements of the performance work statement.

SECTION C – PERFORMANCE WORK STATEMENT

The Water Purification Initiative establishes a contractual partnership between private sector supplier and the government to improve the level of material availability, readiness and overall support by increasing the availability of consumable assets to military services/ customers worldwide

The contractor shall:

1. Facilitate sharing of maintenance forecast data and other relevant logistics information

2. For each NSN, forecast demand and establish an appropriate asset/stocking level and position

3. Function as a source of supply for the population of NSNs listed in the schedule of supplies

4. Coordinate and synchronize its logistics and production processes to provide a predictable and reliable supply of items to meet normal, contingency and surge requirements.

5. Purchase all assets needed to meet stocking objectives for normal and contingency requirements

6. Manage the contractual relationships of the Original Equipment Manufacturers (OEMs) and suppliers that will provide the NSNs listed in the schedule of supplies

7. Manage and provide the warehousing network

8. Manage the supplier base (maintaining sources of supply with emphasis on expanding small business participation)

9. Perform obsolescence management

10. Provide dedicated program customer service

1.1 Strategic Objective

The partnership between the contractor and DLA under the water purification contract will enable optimum support by leveraging commercial best practices into the DLA logistics processes. Under the water purification contract, DLA’s strategic objectives, which are to be achieved through contract performance, are to consistently provide responsive best value supplies and to its end customers.

This shall be accomplished by satisfying customer demands on time, providing accurate forecasting through supplier management eliminating delinquent items, and establishing a reliable warehousing and distribution network. Ultimately, the strategic objective is to improve supply chain performance so as to improve the readiness of the Water Purification based worldwide customers. Many of these customers are mobile and therefore ship to addresses will not be static.

1.2 Implementation and Execution Phases

1.2.1 Implementation Phase

The implementation phase begins upon contract award and ends no later than 180 days after award, and the Contractor shall perform any effort necessary to meet all requirements set forth in the PWS for the implementation phase to include any corrective actions needed for the contractor to be ready of execution of the contract requirements. During the Implementation Phase the Contractor shall put in place the infrastructure, material/inventory, EDI capabilities, systems, and processes necessary for the Contractor to meet the forecasted demands. The government will also need to attrite all inventories for these items. In the event that an NSN has government stocks, the Government reserves the right to delay the start of the Execution Phase for an NSN until those stocks are depleted.

If the awarded offeror fails to implement the activities described in its Implementation Plan within the times specified as to endanger timely and successful completion of the Implementation Phase, the Contracting Officer may terminate this contract and award to the next eligible offeror to this solicitation. If, within 2 years after award, this contract is terminated, the Government will request the most highly rated unsuccessful Offeror’s to revive their offers. The Government will re-open discussions with those unsuccessful Offeror’s agreeing to revive their offers and will re-award the requirement. The offeror must state in its proposal whether it may be agreeable to this procedure.

1.2.2 Execution Phase

Upon day 181 after contract award, the contractor shall perform all requirements set for in the contract in accordance with performance requirements, for all NSNs and part numbered items listed in Exhibit 1, and in accordance with each delivery/task order issued by the Government. Additionally, In the event an item is needed prior to day 181and 90 days after receipt of written notice issued by the contracting officer, the contractor shall perform all requirements set forth in the contract in accordance with performance requirements, for the NSN(s) identified by the contracting officer, and in accordance with each delivery/task order issued by the Government.

1.3 Addition/Deletion of Items/Part Number Changes and Customer Changes, 52.216-9006 Addition/Deletion of Items.

During the course of the contract and in support of changing Water Purification customer requirements, NSNs may be added, deleted from the contract (due to obsolescence, technical issues), or transferred to active/inactive status. When items are added/deleted or transfer to active/inactive status in the contract, the NSN will be adjusted in the metric calculations. Many of these customers are mobile and therefore ship to addresses will not be static. Changes to the customer profile will be accomplished at no cost to the Government

1.4 Other Than Cost Price Data

The government requires that the contractor provide, on request, their buying price, all their indirect cost rates, the profit rate, and any other add-on fees pertaining to items which are purchased by the offeror and passed through to the government. Further the method of deriving the indirect rates shall be disclosed to include the makeup of the bases and pools. The contractor shall also, on request, describe the methodology used to determine their purchase was fair and reasonable (competition, should cost, like item etc). For items manufactured by the contractor, a cost breakdown shall be provided (upon DLA request) along with a short narrative describing the process. The information on the indirect cost rates shall be the same as described for pass through items. Profit rate shall also be required. In the event the government decides an audit type review of any facet of the pricing process is necessary, by DCAA, DCMA or other government activity, full cooperation shall be required. Although the above describes various data types that the government may find is needed to establish price reasonableness, the list is not all inclusive. The contracting officer may require information other than certified cost or pricing data/other than cost and pricing information adequate for evaluating the reasonableness of prices. It is solely within the Contracting Officer’s purview to determine what “other than cost & pricing” information is necessary to determine price reasonableness.

2.0 Requirements

2.1 The contractor shall implement the management, systems, infrastructure, personnel, and inventory necessary to meet the ROWPU customer’s needs for the NSNs identified in the schedule of supplies. The contractor shall have access to government historical data for performing the forecasting requirement; however, the Government makes no guarantees or warranties to the accuracy or completeness of the data and the contractor shall independently assess the usefulness and accuracy of the data provided in developing the forecasts. The contractor shall forecast, purchase and stock the required NSNs in sufficient quantities to meet the normal and spike demand requirements of the customer.

2.2 The contractor is required to provide on-time delivery of conforming parts, in the correct quantity, to the specified destination for each delivery order issued against the basic contract. If the contract fails to comply with the delivery order issued under and the terms of the basic contract, the Government reserves the right to take any appropriate contract administrative action allowed under the terms of this contract.

2.3 The contractor shall forecast quarterly demands and optimum stocking level quantities based on customer requirements for 100% of the items identified in the Section B spreadsheet, Exhibits 1 and 2, to the solicitation. The contractor shall maintain adequate stock levels to meet the needs of the customer and the TDD (Time Definite Delivery) metrics in paragraph 2.5.

2.4 Program Review Board (PRB) Meetings

During the Implementation period, government and contractor representatives will conduct meetings on a quarterly basis to discuss forecasting projections, assess contractor performance, and action item(s) with this Program. For the remainder of the contract period, meetings will be held on (at least) a yearly basis to assess contractor performance, discuss forecasting projections, action item(s), and steps forward. These PRBs will occur 30 days after the end of each performance period. There will be an exchange of issues before this meeting and agenda of items for discussion provided by the government to the contractor The Contractor shall provide status of schedules, program goals, and any process improvement initiatives. The reviews shall provide the Government with the Contractor’s progress and performance on all tasks defined in this PWS. The PRB will be co-chaired by DSCC and the Contractor. The Contractor shall develop an agenda and distribute the agenda to perspective attendees no later than 15 days before the PRB. Meeting slides and resulting minutes for these reviews shall be submitted in Contractor’s format and made available in electronic format by e-mail or access through the Contractor’s website to the attendees. The Contractor will provide PRB minutes within 14-days after each PRB.

Other Program Reviews may be conducted as mutually agreed between the Government and the Contractor.

During the review the Contractor shall provide status on the following elements:

1. Program overview including overall schedule status

2. On-time delivery issues

3. Fill Rate issues

4. Quality/ safety issues

5. Configuration management issues

6. Quality assurance issues

7. Customer support service

8. Repair issues

9. Production issues

10. Transportation issues

11. Sub-vendor/industrial base issues

12. FMS issues (if applicable)

13. Demand data by NSN and location

14. Other issues, i.e. compliance with packaging and marking, compliance with Berry Amendment, etc.

15. Previous PRB open action items/new action item.

2.5 Delivery Requirement -

The contractor has successfully filled a CONUS and OCONUS demand, when after receipt of a delivery order; the contractor has delivered the correct product to the customer designated site, within the Time Definite Delivery (TDD) requirements set forth below.

Partial deliveries shall not constitute compliance with the delivery requirement.

Category Transportation Priority

Priority Code Required Delivery Date

(RDD)

Required Delivery (FOB Destination)

01 through 03 With or without, Excludes any Beginning with X or S

4 Calendar Days

04 through 15 444, 555, 777, beginning with N or E, Julian Date less than 8 days for CONUS or 21 days

OCONUS

7 Calendar Days

04 through 15 No RDD or More than 8 days CONUS or 21 days OCONUS

14 Calendar Days

2.6 Liaison Support The contractor shall interface with the government to facilitate (1) improved delivery performance; (2) decrease costs, (3) supply chain alliances, and (4) improved customer service. The contractor shall provide a dedicated customer support personnel that are accessible to customer at all times; twenty-four hours a day, seven days a week.

2.7 Domestic Sourcing Requirement

Contractor shall periodically assess and monitor supplier’s compliance with domestic sourcing requirement, particularly the Berry Amendment. This shall be done at a minimum on a monthly basis.

3.0 System Interface and Integration

Order placement shall be by Electronic Data Interchange (EDI) transmissions in accordance with ANSI X12 Standards through a registered Value Added Network (VAN). Issuance of an EDI transmissions or email notification from the Contracting Officer constitutes a binding order. Manual Delivery Orders will be issued for items requiring government furnished tooling, or for other special or unique requirements. The Contractor is required to commence performance upon receipt of a binding order.

In general, the process will work as follows: The Government 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) that will be formatting (translating) the Government requisitions into the appropriate EDI transaction set. The TPI Contractor shall provide real-time shipping status corresponding to the customer’s requisition using an appropriate transaction set. The following EDI transactions sets will be used:

EDI 944 (Receipt of inventory)

EDI 945 (Shipment of inventory)

EDI 947 (Inventory adjustments)

EDI 846 (Inventory inquiry)

EDI 214 (Transportation Carrier shipment status message)

EDI 850 (Purchase/delivery order)

EDI 856 (Shipment notice manifest)

EDI 997 (Functional acknowledgement)

EDI 810 (Invoicing)

The use of e-Mall is acceptable and encouraged.

4.0 Quality Requirements

The Contractor shall have, and 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 Government reserves the right to enter the Contractor’s facility as needed. This need will be determined by the Contracting Officer. The Contractor will be given written notification and allowed adequate time to prepare for the visit

1. Inspection criteria described by a Military or Federal specification or purchase description contractor must present evidence showing compliance with all contract and specification requirements including preparation for delivery.

2. For NSNs/ items described by manufacturer's name/code and part number:

(i) Contractor must present evidence of performance of all quality assurance requirements specified in the contract and assure that item will serve its intended purpose by performing examinations and tests to determine (1) completeness of item, (2) absence of rust, contamination, or deterioration, (3) correct identification, (4) absence of any damage, and (5) compliance with preparation for delivery.

If the contractor is not the manufacturer of the supplies, evidence must be furnished to establish that the supplies were produced by the manufacturer (see (ii) below.

(ii) The word "manufacturer" means the actual manufacturer of each NSN/ item. The Quality Assurance Representative (QAR) may require that evidence be furnished establishing the name and address of the plant that manufactures each NSN/ item to assure that a domestic product is being supplied, where appropriate. Inspection will be determined by the type of item; however, commercial inspection practices will apply. The Government also reserves the right to audit the Contractor for compliance with their (Contractor’s) proposed quality system. The Contractor shall notify the Government of any changes to the quality system prior to actual implementation.

3. Additional inspection requirements may be required, based on the type of item.

4. The Contractor will require of its subcontractors all tests and inspections specified in the technical data packages unless the subcontractors have successfully supplied the item in the past and objective quality evidence exists to indicate that the subcontractor can produce a conforming item.

5. The Contractor will maintain a closed-loop system that would ensure corrective action is taken when appropriate. Once a defective item has been identified by the customer and communicated to the Contractor, the Contractor shall ensure a conforming item is expedited to the customer while also researching and determining the cause of the defect to alleviate future product compliance failure.

The Contractor will pass on and monitor any commercial warranties as applicable. If the customer finds a part to be defective, the Contractor will replace it immediately with an acceptable (conforming) part. 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 notice and written approval by the Contracting Officer.

6.0 Transportation/Marking/Packaging

Delivery shall be FOB Destination. The contractor is responsible for shipment of materials from the contractor’s facility to the customer within CONUS. Delivery shall be FOB Destination to the designated Consolidation Containerization Point (CCP) for all OCONUS customers. The Contractor shall utilize Distribution Planning and Management System (DPMS). The Contractor shall establish a DPMS profile using the following website http://www.ddc.dla.mil/dpms/enrollment/default.htm. Any questions in establishing an account should be directed to the Defense Distribution Center (DDC) at 1-800-456-5507 or delivery@dla.mil . The Contractor shall comply with all applicable labeling, marking and documentation requirements of this solicitation.

7.0 Contract Closeout

At the end of the contract, the Contractor shall manage its inventory so as to minimize the amount of excess or unused inventory. The Contractor should seek to sell all other inventory to the commercial marketplace. The government may purchase up to 3 months of inventory within 30 days of contract end date. The quantities purchased under this provision will be based upon a monthly average of the demands for the previous 12 months.

The term “excess or unused inventory” includes supplies that have been identified to this contract and which are:

a. In the contractor’s inventory.

b. Held for the account of the contractor under this contract and are supplies which the contractor and its suppliers or subcontractors acquired in good faith based upon estimated quantities established for this contract.

In the event the successor contract goes to another Contractor, the Government reserves the right to extend the contract in increments of 90 days during the transition period. This is in addition to any option period exercised. The contract may be extended more than once; the total extension of performance shall not exceed six (6) months.

7.1 Exit

During the Execution Phase, to the extent possible and other than in the event of termination, twelve (12) months before commencement of contract exit, the Government and the Contractor shall establish a joint Exit Transition Integrated Product Team (IPT). The Exit IPT shall develop the schedule, milestones, costs (if applicable), and performance requirements for an orderly transition of the H2O Program element to Government control, to performance under another contract, or performance on a follow-on contract.

The Contract Exit phase encompasses those procedures and corresponding timeframes necessary to ensure the orderly and efficient transfer of performance under another contract, or performance on a follow-on contract upon completion or termination of the contract, if necessary.

Contract Exit commences upon the effective date of the contract modification, or, in the event of termination for the Government’s convenience or for cause, upon the Contractor’s receipt of a termination notice from the Government, whichever occurs first.

Within 30 days of the commencement of Contract Exit and at the end of the base period contract term or at the end of any option period as directed by the Contracting Officer, the Contractor shall provide at no additional cost to the Government in writing the current status and the projected status as of the end of Execution Phase and Contract Exit Phase for the quantity and identification of Contractor Inventories available at the end of the contract