RFAAP Industry Day 1 Charts 02Oct2024.pdf

UNCLASSIFIED / DISTRIBUTION STATEMENT A:

Approved for Public Release; Distribution is unlimited

Radford Army Ammunition

Plant (RFAAP)

Industry Day #1 October 22-23, 2024

UNCLASSIFIED

DISTRIBUTION STATEMENT A

Radford Army Ammunition Plant Industry Day Agenda

DAY #1

October 22, 2024

• 0830 – 0900: CHECK-IN (at Hotel)

• 0900 – 1030: GENERAL OVERVIEW

SESSION

– Opening Remarks

– RFAAP Overview

– Acquisition Strategy

– Contract Terms & Conditions

– Tour Logistics

• 1030 – 1245: TRAVEL TO RFAAP &

LUNCH

– No Lunch or Transportation from

Hotel to RFAAP Provided

• 1245 – 1330: CHECK-IN (at RFAAP)

– Safety Briefing, Personal Protection

Equipment (if required)

• 1330 – 1400: ASSEMBLE TOUR GROUP

• 1400 – 1700: RFAAP FACILITY TOUR

– Windshield Tour

– Transportation to/from RFAAP Not

Provided

DAY #2

October 23, 2024

• 0830 - 1530 ONE-ON-ONE SESSIONS (at Hotel)

– 15 minutes per company

• Industry Day is for information and planning purposes only and does not constitute a formal solicitation or Request For Proposal (RFP)

– The Government does not intend to award a contract on the basis of Industry Day or otherwise pay or reimburse respondents for participation in this event.

– Milestones, timeframes, and quantities are estimates only; Do not rely on information presented today in formulating proposals.

– Should an RFP be issued, any information contained within the RFP supersedes the information presented here.

– No Government personnel, except for the Contracting Officer, can make any commitments on behalf of the Government.

• Questions and Comments

– This briefing package, along with all information, questions and answers (Q+A) will be posted to the SAM.gov website: www.sam.gov

– Questions received prior to this briefing (IAW the sam.gov announcement deadline) will be answered during this briefing. However, no new questions will be answered during the General Overview Session. The USG will answer questions during one-on-one sessions.

– ALL Q+A (those submitted prior to today’s briefing and those from the One-on-One sessions) will be posted to SAM.gov; therefore, no proprietary information should be included.

• One-on-One sessions: The USG intends for the Contractor to lead the discussion.

• No pictures or recording of briefing information is permitted.

Disclaimer http://www.fbo.gov/

• Provide potential offerors with a general program overview

• Initiate dialogue with industry during one-on-one sessions

• Solicit input and comments from industry for use in finalizing a strategy that will promote a mutually beneficial contract for Government and industry

• Provide windshield tour of Radford Army Ammunition Plant

• Provide attendees the ability to meet potential partners

• Encourage open and continuous exchange of information and ideas throughout this process

Industry Day Objectives

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Overview of Radford Army Ammunition Plant

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Radford Army Ammunition Plant Radford, VA | Est. 1941

Mission: Manufacture large volumes of propellants and propellant ingredients Contractor: BAE – Ordnance Systems Inc.

Size: 6,901 acres, 2,540 buildings, 214 igloos, 657,003 sq ft storage capacity Contract Information: 15-year Facility Use Contract through Dec 2026 with two 5-year Award Term Periods remaining; 5-year Supply Contract through Dec 2026 Historical Modernization Focus Area:

• New Nitrocellulose Facility

• Safety and Environmental Upgrades Energetic Waste Incinerator/Contaminated Waste Processor

• Modernized Chemical Grind Facility

• NAC/SAC Process Improvements

CONGRESSIONAL INTEREST:

Senator Mark Warner (D) Senator Timothy “Tim” Kaine (D) Congressman Morgan Griffith (R – 9th District)

Historic Production Base Support Modernization Investments

$50.00

$100.00

$150.00

$200.00

$250.00

PB

S

In ve st m en ts

M

PBS Investments into Radford AAP

RFAAP Production

*Based on recent estimates

• Government products are either purchased directly the by U.S. Government (15%*) or through a third party (85%*)

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23

Po un ds

RFAAP Production Calander Year (CY) 2013 - 2023

Total Nitrocellulose Solvent Solventless

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Armament Retooling and Manufacturing Tenants (ARMS) (as of 12 September 2024)

• RFAAP’s operating contractor executes an active ARMS Program that must be transitioned to retain existing ARMS Tenant Use Agreements (TUA)

– ARMS Program was authorized by the ARMS Act of 1992 (10 USC §7553)

– Scope provides for commercial, third party, and tenant use of facilities with USG approval

– ARMS revenue is approved by PL JS for funding facility infrastructure improvements, renovations for tenants, and compensation to the operating contractor for performance of ARMS related activities

Current Tenant Industry TUA Final Expiration Date

Northrop Grumman Systems Corporation Propellant Manufacturer - (FEF/Advanced Ammo, Med Cal, NRE/Commercial Powder) 9/8/2025

Alacran Ordnance Storage, Mowing Service, Office Space 5/12/2026

Pyrotechnique by Grucci DoD Contracts & Commercial Pyrotechnic Devices 10/31/2027

US Cellular Communications 5/12/2036

Crown Communication Communications 6/30/2024

Salem Tools, Inc. Supply Chain Logistics 5/12/2026

Alexander Arms Alexandar Arms Manufacturer 5/12/2026

Safety Management Services Safety Consultants 5/12/2026

SPARC Research LLC Research & Development - Rocket & Air Breathing Technology 5/31/2029

Acquisition Strategy

• Overall acquisition strategy objectives:

- Establish a new operating paradigm to enable the transition from the current state of the facility to the desired future state for production capabilities, modernization, and overall operating model.

- Implement cost effective solutions to maximize effective plant capacity through high levels of operational availability, preserve surge capacity, accomplish plant re-configuration, and secure long-term viability of RFAAP capabilities.

- Position RFAAP to compete for product by aligning operations with industry standards, reducing costs, enhancing performance, enhancing safety, improving reliability and ensuring sustainable operations.

– Ensure long-term, cost-effective sustainment of production capabilities

Acquisition Strategy Overview

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Acquisition Strategy

• Acquisition Strategy has NOT been formally approved

– Plan to finalize by next Industry Day

• Competition will be ‘Full and Open (Limited to US, its outlying areas and Canada)’ and use a Best Value Tradeoff Source Selection

• Approach is intended to be Two (2) draft RFPs, One (1) Final RFP, One (1) Proposal, and One (1) contract:

– Property Management: Costs for base support operations included in production item unit prices

– Production: Firm-Fixed-Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) Production Items

– Modernization Projects: FFP or Cost-Plus-Fixed-Fee dependent on scope/complexity/risk

• Modernization Projects may be awarded to the operating contractor, through US Army Corps of Engineers or directly to another 3rd-party

• Modernization may be included in the RFP and Source Selection

• Duration (contemplated): 10 years

– 5-year base award and evaluated 5-year option awarded with base

– 2 Additional 5-year unevaluated options

– Followed by 12-month transition

Year 1 2 3 4 5 6 7 8 9 10 11

RFAAP Contract Base Award 5-year Option Transition or Option

• In consideration for exclusive use of RFAAP facility, the operating contractor provides property management support

– Government includes property management requirements in the form of PWS

– The following PWS are currently under consideration:

Indirect: Shall be accomplished by contractor at no direct cost to the Government (i.e., borne by the product) (PWS 1-13 and 16)

Direct: Shall be subject to availability of funds, and may be cost reimbursable IAW FAR 52.216-11;

no fees are permitted (PWS 14, 15, 17-19)

Property Management Performance Work Statements

1. Facility Plans, Strategies and Analyses 12. Contract Transition

2. Government Property Management 13. Facility Ops Production Reporting Production Support

3. Environmental 14. Support of Onsite Government Staff Natural and Cultural Resources

4. Safety 15. Material Management

5. Installation Security and Antiterrorism 16. Armament Retooling and Manufacturing Support

6. Utilities and Energy 17. Acquisition, Logistics, and Technology Enterprise Systems and Services (ALTESS) Support Services

7. Fire and Emergency Services 18 Ground Water Monitoring & Installation Restoration Program Support

8. Maintenance of Facilities 19. Radford Family Housing Support

9. Cyber Security

10. Occupational Health Program

11. Transition and Start-Up

Grey = Paid through product Blue = Directly paid

• RFP will request FFP price matrix based on:

– Product

– Quantity range

– Ordering period

• Price matrix will be applicable for:

– Direct buys from the Government

– Third-party buys in support of Government requirements (Not-to-Exceed pricing shall apply)

– Pricing required for all ten years

– Quantity ranges may be at the plant-wide or individual product level

• Specific details and products for price matrix will be developed for inclusion in final

RFP

Product Price Matrix

Product XYZ Ordering Period

1 2 3

0 to 1M lbs $_._/lb $_._/lb $_._/lb

1M to 5M lbs $_._/lb $_._/lb $_._/lb

5M to 10M lbs $_._/lb $_._/lb $_._/lb

PRODUCT TYPES

ETHYL CELLULOSE (EC)

NITROCELLULOSE

NITROGLYCERIN

SOLVENT PROPELLANTS

(SINGLE AND MULTI-BASE)

SOLVENTLESS PROPELLANTS

ROCKET GRAINS

Seeking Industry Feedback

Anticipated Contract Terms and Conditions

• Contract to be executed through Army Contracting Command- Rock Island

– Current contract expires 31 Dec 2026

• Accommodation of Third-Party Operations:

– Production:

Production CLINs may be severable if operating contractor is not performing Operating contractor may be required to accommodate/support multi-contractor operations

– Modernization Projects:

Operating contractor to support execution of third-party modernization projects

• Utilization of Facilities for Commercial Purposes:

– RFAAP facilities may be allowed for commercial use with PCO approval and consideration

– Government is considering requirements for compensation to the Government for use of facility

– Quarterly reporting of all commercial and third-party activities will be required

General Terms & Conditions

Seeking Industry Feedback

• Capital Investment & Intellectual Property Rights:

– Government to retain unlimited ownership and rights for:

All Government furnished property Modifications to Government furnished property Property acquired by the contractor under this contract Intellectual property

• Safeguarding Permanent and Enduring Records:

– Contractor responsible for capturing, cataloging, retaining, and preserving records that are necessary for the operation of RFAAP

• Contract Financing:

– Progress Payments may be offered for production orders, predicated on an adequate accounting system

– Performance Based Payments are planned for direct funded projects

• Economic Price Adjustments:

– May be considered with appropriate justification

• Indemnification

– Requests for Indemnification will be considered for this acquisition

– Operating contractor must still maintain both usual and customary commercial insurance coverage for itself, its operations, and its employees

General Terms & Conditions (continued)

Seeking Industry Feedback on EPAs

• Requirement for contractor to provide actual cost data on a quarterly or annual basis for production and facility operations

• Cost reporting format to be grouped by operational relevancy rather than by activity type

– Enable better estimation and tracking of the total cost of targeted facility operations

– Example potential cost reporting structure

Cost Reporting

Funding FUNDING

A Solvent - Config A FFP Price List A MK90 - Config A FFP Price List A Administration

B Solvent - Config B FFP Price List B MK90 - Config B FFP Price List B Security

C Solventless - Config A FFP Price List C Maintenance ("Inside") NSP C Fire

D Solventless - Config B FFP Price List D Utility Consumption NSP D Common Ops (Waste Stream)

E Maintenance ("Inside") NSP E Modernization ("Inside") Priced as Needed E Utility Consumption

F Utility Consumption NSP F ARMS Program Execution

G Modernization ("Inside") Priced as Needed G Modernization: General

A General Requirements NSP

A NC - Config A FFP Price List

B NC - Config B FFP Price List A To Be Determined NSP

C Maintenance ("Inside") NSP

2. PRODUCTION: NC (including NAC/SAC)

Production Capabilit

1. PRODUCTION: Solvent, Solventless, NG

5. TRANSITION SUPPORT

CLIN/SUB-CLIN(s)CLIN/SUB-CLIN(s)

6. FACILITY MANAGEMENT

4. UTILITY GENERATION

3. PRODUCTION: MK90

A Solvent - Config A A Rocket Grain - Config A A Facility Plans B Solvent - Config B B Rocket Grain - Config B B Property C Solventless - Config A C Maintenance ("Inside") C Environmental and Energy D Solventless - Config B D Utility Consumption D Safety E Maintenance ("Inside") E Security F Utility Consumption G Support of Onsite Gov't Staff

H Fire & Emergency Services A Modernization Projects I Maintenance

A NC - Config A J ARMS B NC - Config B K Material Management

C Maintenance ("Inside")

D Utility Consumption A To Be Determined

5. FACILITY MANAGEMENT3. PRODUCTION: Rocket Area

COST AREAS

6. OTHER

2. PRODUCTION: NC (incl. NAC/SAC and Acids)

1. PRODUCTION: Solvent, Solventless, NG

4. MODERNIZATION

Seeking Industry Feedback on Cost Reporting Structure

Sheet1

Production Capabilit Funding CLIN/SUB-CLIN(s) FUNDING CLIN/SUB-CLIN(s) FUNDING

1. PRODUCTION: Solvent, Solventless, NG 3. PRODUCTION: MK90 6. FACILITY MANAGEMENT

A Solvent - Config A FFP Price List A MK90 - Config A FFP Price List A Administration NSP

B Solvent - Config B FFP Price List B MK90 - Config B FFP Price List B Security NSP

C Solventless - Config A FFP Price List C Maintenance ("Inside") NSP C Fire NSP

D Solventless - Config B FFP Price List D Utility Consumption NSP D Common Ops (Waste Stream) NSP

E Maintenance ("Inside") NSP E Modernization ("Inside") Priced as Needed E Utility Consumption NSP

F Utility Consumption NSP F ARMS Program Execution NSP

G Modernization ("Inside") Priced as Needed 4. UTILITY GENERATION G Modernization: General Priced as Needed

A General Requirements NSP

2. PRODUCTION: NC (including NAC/SAC)

A NC - Config A FFP Price List 5. TRANSITION SUPPORT

B NC - Config B FFP Price List A To Be Determined NSP

C Maintenance ("Inside") NSP

D Utility Consumption NSP

E Modernization ("Inside") Priced as Needed

Microsoft_Excel_Worksheet.xlsx

Sheet1

COST AREAS

1. PRODUCTION: Solvent, Solventless, NG 3. PRODUCTION: Rocket Area 5. FACILITY MANAGEMENT

A Solvent - Config A A Rocket Grain - Config A A Facility Plans

B Solvent - Config B B Rocket Grain - Config B B Property

C Solventless - Config A C Maintenance ("Inside") C Environmental and Energy

D Solventless - Config B D Utility Consumption D Safety

E Maintenance ("Inside") E Security

F Utility Consumption G Support of Onsite Gov't Staff

4. MODERNIZATION H Fire & Emergency Services

2. PRODUCTION: NC (incl. NAC/SAC and Acids) A Modernization Projects I Maintenance

A NC - Config A J ARMS

B NC - Config B K Material Management

C Maintenance ("Inside") 6. OTHER

D Utility Consumption A To Be Determined image1.emf

• The Government plans to establish the following data repositories to post documents in support of proposal development:

– Virtual Technical Library (VTL): Online library to include, but not be limited to:

Baseline Facility Assessment (BFA) Baseline Environmental Conditions Assessment (BECA) Manufacturing, operating, and inspection procedures Maintenance procedures and records

– On-Site Library (OSL): Physical library maintained at RFAAP to include documents and information deemed too sensitive to post online

– Neither library will include classified documents

• VTL and OSL are scheduled to be available to offerors by February 2025

– VTL/OSL rules and instructions will be posted to www.sam.gov

Technical Data Libraries http://www.fbo.gov/

• Classified Data:

– The contract may require the generation, handling, and/or storage of classified material up to Secret

– If required, contractors would need to obtain a Facility Security Clearance

– Eligibility requirements can be found at: https://www.dcsa.mil/Industrial-

Security/Entity-Vetting-Facility-Clearances-FOCI/Facility-Clearances/ Companies outside the U.S. can participate

• Controlled Unclassified Information (CUI):

– The contract will require access to CUI

Sensitive information that does not meet the criteria for classification but must still be protected

– Firms within the US and Canada must be registered with the Joint Certification Program (JCP) via form DD2345 to receive drawings Up to approximately 60 days is required for JCP certification For information on becoming certified, please visit:

https://www.dla.mil/Logistics-Operations/Services/JCP/

– For non-U.S. /non-Canadian firms, there are additional steps required

• Contractors must obtain a SAM.gov vendor account to access TDP

Access to Controlled Information

Placeholder marking / not yet approved for release https://www.dcsa.mil/Industrial-Security/Entity-Vetting-Facility-Clearances-FOCI/Facility-Clearances/ https://www.dcsa.mil/Industrial-Security/Entity-Vetting-Facility-Clearances-FOCI/Facility-Clearances/ https://public.logisticsinformationservice.dla.mil/PublicHome/jcp/default.aspx

• All contractors who provide goods/services to Department of Defense (DoD) must be registered in SAM. If you are not registered in SAM, you cannot be awarded a DoD contract

• Website for registering in the SAM is: http://www.sam.gov

• You may also contact the Federal Service Desk at www.fsd.gov, to request assistance with the SAM registration process

System for Award Management (SAM) http://www.sam.gov/ http://www.fsd.gov/

• Based on today’s presentation, industry is invited to provide comments/questions on the upcoming acquisition

• Comments/questions should be submitted via the Q&A form on SAM.gov no later than 25 OCT 24 and directed to:

– Contracting Officer at anna.e.whitcomb2.civ@army.mil

– Supervisory Contract Specialist at jaclyn.r.senneff.civ@army.mil

• Submission of white papers is encouraged to support Industry recommendations on this acquisition strategy

Questions mailto:anna.e.whitcomb2.civ@army.mil mailto:jaclyn.r.senneff.civ@army.mil

• All information provided today is TENTATIVE and subject to change.

• All information regarding RFAAP acquisition, to include future industry day announcements, draft solicitation, Q&A will be posted on the SAM.gov website

• Search SAM.gov site for Solicitation Number “W519TC-24-R-ROMM”

• It is the responsibility of the contractors to check this website frequently for the latest information regarding this acquisition.

Conclusion

Tour Logistics

• Transportation to/from RFAAP not provided

• Bus will transport group within plant

– Tour will originate at the Visitor Center

– Tour will start on 22 October at 1400; return approximately 1700

– Participants will be issued special event badges upon arrival at plant

You must have your photo ID

Tour Logistics