SRC Industry Day Briefing.pptx

Strategic Replenishment Contract (SRC)

Industry Day

29 Jan 2020 Kathrine Goddard Support Equipment & Vehicles

AFLCMC/WNZ

(478) 222-2304 Kathrine.goddard@us.af.mil

AFLCMC… Providing the Warfighter’s Edge

Disclaimer The Government does not intend to award a contract on the basis of the information received at this event.

Discussions are for informational purposes only. The contents of any future RFP take precedence over anything provided during this briefing and one-on-one sessions.

Questions and answers will be posted to beta.SAM.gov and are considered public record.

Costs incurred as a result of this meeting are considered bid and proposal cost and will not be reimbursed by the Government.

All information in this briefing is current as of today but is subject to change.

Note: Question and answers from both open discussions and one-on-one discussions will be posted to beta.SAM.gov and are considered public record unless industry identifies the content of those discussions/questions/answers as proprietary information.

SRC Industry Day Overview General Information Agenda Introductions Small Business Presentation Program Description Program Requirements NSN List Electronic Data System (EDS) Program Transparencies Proposed Contract Strategy

General Information Please….

Sign in and wear a name badge.

Be courteous to all attendees.

Silence all electronic devices.

Smoking (tobacco and e-cigarettes) not permitted within 100 feet of any building; must be within designated area.

In case of an emergency… Fire/Emergency Exits Sheltering Location

Utilize index cards for anonymous questions/comments.

Food and drink are permitted, but please ensure all spills are taken care of immediately.

Smoking areas are located… Restrooms are located…

In the event of a fire, you will exit…….

In the event of a tornado, we will go ……..

In the event of an active shooter, we will …….

Utilize index cards for anonymous questions/comments. Questions/answers will be addressed and added to the Industry Day Minutes on the Beta.Sam.Gov posting. Please be sure to identify any proprietary information to avoid its inclusion in the releasable notes.

Emergency Management

General Information

Food and drink are permitted, but please ensure all spills are taken care of immediately.

Smoking areas are located… Restrooms are located…

In the event of a fire, you will exit…….

In the event of a tornado, we will go ……..

In the event of an active shooter, we will …….

Utilize index cards for anonymous questions/comments. Questions/answers will be addressed and added to the Industry Day Minutes on the Beta.Sam.Gov posting. Please be sure to identify any proprietary information to avoid its inclusion in the releasable notes.

Agenda

SRC POC Listing

(478) 222- 2307 Robins Small Business Director Dr. Angela Harris Anglea.harris.1@us.af.mil (478) 926-7073

Small Business

Randy Miller

Small Business Structure

Air Force Sustainment Center (AFSC) Tinker AFB OK

AFSC/SB

Hill AFB / SB Robins AFB / SB Tinker AFB / SB

Small Business Office

Maximize Small Business Participation Counsel Contractors Small Business Liaison Small Business Outreach Education Source Development Engage with payment matters Track SB Performance Expectations (SPLE)

Role of the SB Office (Performs these services for AFSC, AFLCMC, and AFNWC)

SB Set-Aside FAR Deviation 2019-O0003 Changes applicable to Total/Partial Set-Asides and Sole source awards under FAR Part 19.

Deviation incorporated into 10 FAR clauses 52.219-6 Notice of Total SB Set-Aside 52.219-14 Limitations of Subcontracting

Limitations of Subcontracting (Deviation 2019-O0003) & FAR 19.811-3(e) Applies to SB Set-Asides over SAT (13 CFR 125) Percentage now based on total contract value (to include first-tier subcontractors that are similar situated Same small business/socio-economic program (if applicable) status as the Prime for the NAICS code awarded By submitting an offer the Prime will not pay more than X% of contact (excluding material) to a non-similar situated subcontractor Supplies – 50%; Service – 50%; Construction – 85% ; Special Trade Construction – 75%) Work further subcontract by the Similar situated subcontractor counts towards this percentage Compliance: Each Period (i.e. base & option periods) unless contract states other more restrictive terms (13 CFR 125.6(e))

Limitations of Subcontracting Deviation 2019-O0003 Example: ABC SB Prime propose to do 20% of the cost and subcontract out 30% of the cost to 2 other 8(a) SB subcontractors (15% each).

ABC SB Prime meets Limitations of Subcontracting and Notice of Total SB Set-Aside. The 8(a) Prime and 8(a) SB subcontractors completes 50% of the cost

Limitations of Subcontracting Deviation 2019-O0003 If 8(a) subcontractor #2 – further subcontracts out 1/2 of the cost, then the total amount performed by similar situated small business entities = 42.5% and do not meet Limitations of Subcontracting 52.219-14 Note: For Supply - Material is NOT included in the calculations of Limitations of Subcontracting

Questions Contact Information Dr. Angela Harris Email: Angela.Harris.1@us.af.mil Phone: 478-926-7073

SRC Program Description

Lisa Mitchell

SRC Program Description Sourcing of Ground and Aircraft Common Support Equipment (CSE) replenishment items, currently including:

492 National Stock Numbers (NSNs) 56 Federal Stock Classes (FSC) Items with and without full technical data packages (TDPs) One and multiple approved sources COTS and military-unique items Items with and without recent procurement history

Incidental services incurred to provide the supplies First Article Testing as applicable Process to ensure quality and performance requirements met Delivery - tracking enabled and delivery verified Electronic Data System for data exchange Warranty of items procured

Scope:

Many of the end-items within the scope of this effort are military-unique with no commercial equivalent. Some assets have one currently qualified source, while others have multiple. For some of the assets, the Government retains full rights to the data; however, for many others, the Government does not. Any data available will be utilized to the fullest extent possible. Some of the items have been procured recently/regularly; however, others have not been procured for several years, so those sourcing efforts may be more challenging. Both USAF and FMS requirements will be met via this contract.

A descriptive range of the assets involved consists of but is not limited to aerial stores lift trucks, aircraft engine trailers, air conditioners and heaters, base and aircraft arresting systems, basic expeditionary airfield resources, cranes, dollies, lift-adapters, and various electronic and mechanical aircraft maintenance testers. NAICS Codes associated with previous procurements of this equipment include but are not limited to: 314910, 332212, 332311, 332439, 332710, 332721, 332913, 332993, 332999, 333111, 333112, 333243, 333312, 333314, 333318, 333413, 333415, 333514, 333515, 333517, 333518, 333519, 333618, 333911, 333912, 333923, 333924, 333991, 333994, 333999, 334112, 334419, 334513, 334515, 334516, 334519, 335224, 335311, 335312, 336413, and 339999.

Incidental Services:

-In certain instances, the Government will require First Article testing on this contract.

--Anticipated instances include when an item has not been procured in a substantial amount of time, to qualify a new vendor (only utilized when the currently approved sources are not available), and when component parts are replaced due to obsolescence.

--The specific requirements for testing will be identified by the Government per NSN at the time pricing is requested.

-Establish and manage process(es) to ensure quality and performance requirements are met (will be outlined in the Statement of Work (SOW)).

-Electronic Data System --The Government SRC Team shall be provided access to the data system.

--Contractor should maintain it to show real time data regarding: pricing information, contract information, shipment information (more specifics on EDS slide).

-Warranty of deliverables shall be provided for both USAF and FMS assets

Current NSN List 491 NSNs on the initial list 53 Masters (non-procurable) 438 Bachelor items, Deliverables Demand 231 with demand or backorders 207 without current demand Procurement history 192 procured within last 10 years 141 within last 5 years Approved sources 254 with one currently-approved source 184 with multiple currently-approved sources Data 94 with complete data 343 with incomplete or no data Commerciality 88 COTS items, 349 non-COTS

More than one company requested forecast/quantities and/or need requirements for the NSNs in the SRC Draft List posted to FBO/Beta.SAM.gov.

The current NSN list contains 491 NSNs, 53 of which are Sub-Group Masters, leaving 438 Bachelors (stand-alone NSNs, not linked to another) or Deliverables (linked to a Master). Essentially, this is 438 procurable NSNs.

Demand: Based on slightly outdated demand projections, 231 of the 438 NSNs have demand (1+ backorder), while 207 do not have demand– but demand could arise during the Period of Performance of this contract, as these backorders are from a screenshot in time. It is important to note that this contract will include FMS requirements, the quantity and timing of which are difficult to project.

Procurement: The Government’s procurement history indicates 192 of the 438 NSNs have been procured in the last 10 years, and 141 of those were in the last 5 years. The other NSNs (246) have not been purchased in at least 10 years.

Approved Sources: The Government has recent screenings on all NSNs. 254 of the 438 NSNs indicate only one approved source at this time (whether a data package exists or not), and 183 of the 438 NSNs indicate multiple approved sources at this time.

Data: 94 of the 438 NSNs have complete, Government-owned Technical Data Packages (TDPs), while 343 have either incomplete data or no data.

Commerciality: 88 of the 438 NSNs are noted as commercial-off-the-shelf (COTS) items, while 349 are non-COTS.

Electronic Data System (EDS) Contractor-managed database to facilitate electronic exchange of data between Government and Contractor. The EDS must:

Contain current, real-time, query-able information Be accessible to the Government SRC team Provide a level of security necessary to protect business data

At a minimum the EDS must track information related to:

Contract: CLIN data, delivery order number/date, contract ARO Order: NSN, Noun, Part Number, quantity ordered, requisition number, unit price Shipping: quantity shipped, ship date, trackable shipping document number, delivery location Cataloging Vendor: vendor name, CAGE code, and vendor type

Upon conclusion of SRC, all data contained within the system shall be property of the Government at no charge.

The requirements for the Electronic Data System (EDS) will be outlined in the Statement of Work (SOW). The SRC contractor will provide an Electronic Data System (EDS) to the Government, an approved electronic means of exchanging data pertaining to asset management, delivery tracking, financial transaction, and customer management.

The contractor will keep this database current and accessible to the Government within 30 days following contract award and available throughout the entire PoP, as it provides real-time information to the Government program manager (PM) and procurement contracting officer (PCO). At a minimum, the EDS system must be able to track information regarding the contract (CLIN data, delivery order number, delivery order date, contract ARO delivery), order (NSN, noun, part number, quantity, requisition number, unit price), shipping (quantity shipped, ship date, trackable shipping, delivery location), manufacturer (name, cage, and vendor type), and cataloguing.

Although the software tool will not be delivered to the Government at the end of the contract, all data contained within the system shall be property of the Government at no charge.

Program Transparencies The Government will provide the following:

Distinct test plans when required A list of currently-approved sources for each NSN

No guarantees for funding or demand projections for many of the NSNs within the scope of the contract

Government requires the ability to “ramp on” additional NSNs that meet predetermined criteria within the PoP

SRC to support USAF and FMS requirements – no current demand projections for FMS Items

The Government is seeking the best possible result from sourcing actions. To ensure timeliness and reduce the instances of testing being needed, the Government will provide a list of previously used/approved sources that are in good standings, and will require these sources be utilized first, unless the SRC Contractor can provide supporting documentation that procuring from an alternate source would provide the best result. The Government will provide detailed test plans when testing is warranted.

The Government wants to be as transparent as possible with industry.

-Specifically-designated funds have not been projected -The Government does not have demand projections at this time -The Government wants the contract written as such to allow NSNs to be added for procurement within the PoP.

Proposed Contract Strategy Anticipated 10 Year Period of Performance One year Basic Ordering Period 9 Annual Ordering Periods

Small Business Set Aside

NAICS 336413: Other Aircraft Parts and Auxiliary Equipment Manufacturing

Single or multiple award (not yet determined)

Indefinite Delivery/Indefinite Quantity (IDIQ)

Anticipate Firm Fixed Price pricing arrangements

Estimated contract value: $1B

10 Year PoP

Small Business Set Aside – Competitive with Restrictions

NAICS 336413 (supply NAICS), as preponderance of the value of the contract will be the supplies procured rather than the services included in providing those supplies.

Single or multiple award (not yet determined) – MRR will drive this

Indefinite Delivery/Indefinite Quantity (IDIQ)

Currently estimated contract value $1B – this is a rough estimate and may change following completion of business case analysis

How is SRC Different from 3PL?

Strategic Replenishment Contract (SRC) Contract for sourcing of some CSE Contractor needs access to JEDMICS Managed by AFLCMC/WNZ Prepping for 1st time Estimated unit costs >$40k No NSN quantity/dollar value maximum More complex end items First Articles may be required Nuclear certified and critical safety items included Approximately 500 NSNs supported Contractor will be provided a list of prior approved sources Third Party Logistics (3PL)/ Third Party Equipment Purchasing (3PEP) Contract for sourcing of some CSE Contractor needs access to JEDMICS Managed by 404th SCMS and 429th ERRC; WNZ is one user Prepping for 3rd iteration Estimated unit costs <$50k NSN buys limited by $1M per year max Less complex items, no first articles Nuclear certified and critical safety items not included 6700 NSNs supported (Higher volume, lower dollar value) Contractor not provided list of approved sources

The Strategic Replenishment Contract (SRC) and Third Party Logistics (3PL) contract, both managed out of Robins AFB, are a source of confusion for some contractors.

-The SRC and 3PL contracts are both sourcing contracts for the sourcing of some ground and aircraft (Common Support Equipment) CSE.

-The SRC is being managed by the Support Equipment and Vehicles (SE&V) Program Office (AFLCMC/WNZ), while the 3PL contract is managed by the 404th Supply Chain Management Squadron (SCMS) and the 429th Enterprise Robins Commodity Council (ERRC) with WNZ being one user of that contract.

-This is the first establishment of the SRC, while the 3PL contract is currently in its second iteration and preparing for its third.

-The scope of the SRC includes more complex end items with higher estimated unit costs. The SRC is not limiting the unit cost of the NSN nor the annual buy amount per NSN. The SRC includes nuclear certified equipment as well as critical safety items. First Article Tests may be requested and will be identified at each pricing request as required or not required.

*Possibility exists for some items previously or currently procured on the 3PL/3PEP to begin being procured on the SRC (exceeding the scope of 3PL/3PEP).

One-on-One Session Discussions Collaborative discussions to include:

Industry-prepared questions/comments Industry-prepared suggestions for improvement

Key topics include but are not limited to:

Contract strategy Pricing preferences Warranties (FMS and USAF) Shipping costs/processes/issues

One-on-one sessions are limited to 20 minutes.

Unless specifically identified as proprietary, information from one-on-one discussions will be captured and posted to beta.SAM.gov for transparency purposes.

The Government welcomes industry feedback on all aspects of the SRC effort and anticipates collaborative discussions with no scripted Q&A. A Government note-taker will be present to capture discussions, which will be posted to beta.SAM.gov to ensure transparency.

Anticipated discussion topics include but are not limited to the following:

Contract strategy, including single versus multiple award Pricing preferences, including transparent fill fees versus all-inclusive pricing Warranties for both USAF and FMS requirements and any anticipated limitations Shipping costs/processes/issues for both CONUS and OCONUS destinations Any miscellaneous questions/clarifications/suggestions for improvement

Reminder: content of Q&A will be captured and posted to beta.SAM.gov unless specifically identified as proprietary information.

One-on-One Sessions

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8(a) Prime

8(a) - Sub1

8(a) - Sub2

OTSB

Other SB

LB

Limitations of Subcontracting

Sheet1

Limitations of Subcontracting

8(a) Prime 20

8(a) - Sub1 15

8(a) - Sub2 15

OTSB 10

Other SB 20

LB 20

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8(a) Prime

8(a) - Sub1

8(a) - Sub2

2nd Tier Sub

Other SB

LB

Limitations of Subcontracting

Sheet1

Limitations of Subcontracting

8(a) Prime 20

8(a) - Sub1 15

8(a) - Sub2 8

2nd Tier Sub 7

Other SB 30

LB 20

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