PRC Defense Industrial Complex RFP FINAL DRAFT.doc

REQUEST FOR PROPOSALS

May 16th, 2008

PERIOD OF PROPOSAL SUBMISSION ENDS: 5:30 PM Friday, June 6th, 2008 The U.S.-China Economic and Security Review Commission (hereafter “the Commission”) invites submission of proposals to provide a report on the state of reforms in the defense industry of the People’s Republic of China (PRC).

ABOUT THE COMMISSION. The Commission was established by Congress in 2000 to monitor and report to Congress on the economic and national security dimensions of the United States’ trade and economic ties with the PRC. Further details about the Commission are available on its website at: www.uscc.gov .

ABOUT PROPOSALS. The Commission solicits proposals from contractors capable of providing a one-time report which would examine recent changes and reforms in the PRC’s defense industry, and particularly those changes which increase the capabilities of this industry to produce more sophisticated and capable weapons systems.

Key issues and questions to be addressed by the report are:

· Building off of previous studies on the subject (such as the 2005 RAND Corp. study A New Direction for China’s Defense Industry), the study would produce an updated picture of the industry’s organizational infrastructure, and explicate the relationships among its major players in both government and industry.

· Identify the sectors in which the industry has seen the most significant improvements in its ability to produce high-tech equipment. Identify as well the sectors in which the industry still appears to face difficulty in reforming itself, or otherwise continues to lag significantly behind the advanced defense industries of the U.S., Russia, Israel, etc.

· Assess the role that U.S./Western companies may have had in contributing to improvements in the capabilities of the PRC defense industry, particularly in the area of technology transfer. Assess the extent to which access to international capital markets has strengthened PRC defense industrial companies.

· Assess the extent to which reforms in the defense industry will allow the PRC to become less dependent on foreign weapons sales in the intermediate term (next 5-10 years).

Additional Requirements of the Commission:

· Once a contractor has been selected by the Commission, a draft of the report must be submitted to the Commission for review no later than 120 days from the date of contract confirmation. The Commission will then endeavor to provide comments and requests for adjustments within 30 days; subsequently, the final report must be submitted within 30 days of formal receipt of the Commission’s comments.

· As work on the report progresses, the Commission’s Research Coordinator shall act as a representative of the Commission in monitoring the progress, quality, and relevance of the report to the identified major issues of concern. The Research Coordinator shall, on request to the contractor, be entitled to informal briefings on the status of the research work and to readings of the draft in progress.

· The contract shall be subject to termination if the Commission deems that the work is of unsatisfactory quality.

· At the Commission’s discretion, the report procured via this Request for Proposal may be posted on the Commission’s website.

· Each organization or individual responding to this request must warrant that it/he/she will perform this work solely for the Commission, and that the resulting report will not be shared with other parties without the prior written consent of the Commission.

· The Commission expects contractors to identify all personnel working on the contract, and that there not be any delegation of responsibilities to other parties without prior approval of the Commission.

Primary Selection Criteria:

· The Commission will determine which organization or individual responding to this request will be awarded the contract based on a comprehensive “best value” analysis of the proposals received, to include costs, technical value, and ability to complete the work satisfactorily and on time.

· The primary weighting criterion in selection shall the assessed qualifications and ability of an organization or individual to address the fundamental points enunciated above (“issues and questions to be addressed by the report”), with the most important points as follows: (1) ability to explicate the relationships amongst major institutional players in the PRC defense industry; (2) identification and explication of the sectors in which the industry has seen the most significant improvements in its ability to produce high-tech equipment; (3) explication of the role that U.S./Western companies have had in contributing to improvements in the capabilities of the PRC defense industry, particularly in the area of technology transfer.

· The cost and amount of time necessary to complete the report will also be considered as criteria in the selection process.

Proposal submissions should include:

· A statement of the applicant’s relevant qualifications to satisfy the terms of this request for proposals (RFP);

· An description of the research methodology the applicant proposes to employ;

· An estimate of the time the applicant will need to complete the required work;

· The price the applicant will charge to the Commission to complete the work set forth in this RFP.

Firms and individuals wishing to submit a proposal in response to this Request for Proposal must ensure that the response arrives at the following location by 5:30 p.m. on Friday, June 6th, 2008, or it will not be accepted or considered.

Electronic submissions are acceptable.

Proposals, as well as any other correspondence related to this matter, should be directed to:

John Dotson

Research Coordinator

U.S.-China Economic and Security Review Commission

Hall of the States, Suite 602

444 North Capitol Street, N.W.

Washington, D.C. 20001 phone: 202-624-1482 jdotson@uscc.gov

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