SCAAP_Industry_Day__2_Charts_15-16_Nov_2016.pdf

DISTRIBUTION STATEMENT A - Approved for public release; distribution is unlimited. PAO# 069-17FINAL

Scranton Army Ammunition Plant (SCAAP) Industry Day #2

Property Management Contract and Companion Production Contract

15‐16 November 2016

Hilton Conference Center Scranton, PA

Agenda

Tuesday, 15 November 2016

Time Activity Location 0830‐0900 • Registration Hilton

Amphitheater

0900‐1200 • Opening remarks – welcome

• General Information

• SCAAP Property

• Property Management

Contract

• Production Contract

• Large Caliber Metal Parts

• Sections L & M Overview

• Schedule & Transition Plan

Hilton Amphitheater

1200‐1300 • Q&A Session (Full Group) Hilton Amphitheater

1300‐1400 • Lunch Off‐site choices available

1400‐1900 By Appointment/ As Scheduled

• 1‐on‐1 Sessions Hilton Amphitheater

Wednesday, 16 November 2016

Time Activity Location 0800‐1330 By Appointment/ As Scheduled

• Tech Library

• Tours

SCAAP

Industry Day Purpose

To promote Industry understanding of the planned competitive acquisition for the Property Management and Operation of SCAAP and Large Caliber Ammunition Metal Parts

To solicit feedback from Industry on the Draft Request for Proposal (RFP)

Industry Day Information

Industry Day is for information and planning purposes only This does not constitute a formal solicitation or a RFP This is not to be construed as a commitment by the USG in any way The USG does not intend to award a contract on the basis of this Industry Day or otherwise pay respondents for participation in this event

Should a RFP be issued, any information contained within the RFP supersedes this Industry Day

Disclaimer

All items are in planning stages Milestones and other timeframes are estimates Numbers/quantities are estimates only Do not rely on information presented today in formulating your proposal The USG is NOT bound by any of the quantities presented today No USG personnel except the Contracting Officer can make commitments for the USG

Industry Comments & Questions

During the Q&A Session, the USG will attempt to answer verbal and written questions:

• Questions may be written on the provided index cards and passed to the aisles for collection, or may be asked verbally

• Questions and responses will be recorded and posted the Federal Business

Opportunities Website (Fed Biz Opps), www.fbo.gov, under Solicitation #W52P1J‐15‐R‐0023

One‐on‐one sessions will be an open dialogue. USG responses to questions will be added to the SCAAP Acquisition page on Fed Biz Opps.

ONLY pertinent data will be shared. NO proprietary data will be shared.

Key USG Stakeholders

Project Director Joint Services (PD JS) COL Joseph Chan – Project Director Mr. Matt Zimmerman – Deputy Project Director Ms. Melissa Markos – Project Management Officer Ms. Mary Comerford – Acquisition Manager

Project Manager Combat Ammunition Systems (PM CAS) COL Willie D. Coleman – Project Manager Mr. Peter Burke – Deputy Project Manager Ms. Nicole Campesi – Industrial Base Project Management Officer Ms. Donna Demarest – Acquisition Team Lead

Joint Munitions Command, Industrial Capabilities (JMC IC) Ms. Stefani Miner – Industrial Capabilities Director Mr. Donald Tice – Chief, Mortars & Artillery Division Mr. JaMarlon Figgs – Industrial Base Specialist

Key USG Stakeholders

Armament, Research, Development & Engineering Center (ARDEC) Mr. Mark Carlini – Chief, Producibility Division Mr. Doug MacGorman – M795 Product Specialist Mr. Charlie D’Amato – 120mm Product Specialist

Army Contracting Command – Rock Island (ACC‐RI) Ms. Barbara Voss – Procuring Contract Officer Ms. Katie Young – Contract Specialist Mr. Brian Tuftee – Legal Advisor

Army Contracting Command – New Jersey (ACC‐NJ) Ms. Karen Thompson – Procuring Contract Officer Ms. Mariah Hanko – Contract Specialist Mr. Lawrence Brady – Legal Advisor

SCAAP USG Staff Mr. Richard Hansen – Commander’s Representative Ms. Jacqueline Ramsey – Administrative Contracting Officer

Government Team Organization

HQDA

ASA(ALT)

PEO Ammo

PD‐JS PM‐CAS

JMC

ACC‐RI ACC‐NJ ARDEC

RDECOMACC

AMC

Industrial Base Management

& GOCO

Modernization

Artillery and Mortar Procurement & Life Cycle Management

Property Ownership & Facility Requirements

Facility Operations

Property Management Contract Administration & Execution

Production Contract Administration & Execution

Technical Expertise & Engineering Support

Ar ea s o f R es po ns ib ili ty

Re la te d to T hi s Ac qu is iti on

Industrial Capabilities

Commander’s Rep & ACO

Scranton Army Ammunition Plant (SCAAP) Scranton, PA (est. 1951)

Mission:Manufacture 105mm to 155mm diameter projectiles, including M795, 120mm family of mortar projectiles, and 5”/54 caliber Navy projectile

Facility Characteristics:

• 15.3 acres, 8 buildings

• 451.3k sq ft of manufacturing space

• 54.5k sq ft of administration space

• Rail access for shipping & receiving

• Central subway system

Government Employees: 8 Department of Army civilians

Contract Information: No cost Property Management contract with General Dynamics Ordnance & Tactical Systems (GD‐OTS) as the Facility Operator through 31 Mar 18

Core Capabilities:

• Manufacturer of high volume LC‐MPTS (ability to produce 3 items simultaneously)

• Long stroke High tonnage forging (hydraulic and mechanical presses)

• Band welding

• In‐house tool shop

Production Lines:

Installation Facts:

• Government Owned ‐ Contractor Operated facility

• USG owns 100% of the equipment and Intellectual Property (IP) for the production of Large Caliber Metal Parts (LC‐MPTS)

• Some equipment used for commercial work is contractor owned

• USG oversight defined by Performance Work Statements (PWS)

• Efficiency Line vs Full Line

• Five (5) forge press systems with rotary furnace or induction heating capabilities

• Five (5) heat treat systems

• Four (4) nosing press systems

• Ten (10) band welders

• Five (5) rough turn lines

• Four (4) finish turn lines

• Three (3) phosphate systems

• Three (3) paint lines

DISTRIBUTION STATEMENT A - Approved for public release; distribution is unlimited. PAO# 069-17FINAL 11

Historical Procurement Quantities

Procured Quantities of 155mm HE Artillery Projectiles and 120mm Mortar Shell Bodies

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

M795 Total 120mm Shells

Contract Structure

One RFP for Property Management, Solicitation # W52P1J‐15‐R‐0023, with Production RFP Included as an Attachment

• Award 2 contracts to 1 awardee

• Separate contracts, each with their own clauses

• One combined Sections L & M for source selection

• Competition limited to the National Technology and Industrial Base (NTIB)

Property Management Contract

• No Direct Cost (Product priced to cover Operational and Maintenance costs)

• 15 Years Total (Base of Five 1‐year Ordering Periods with Two 5‐year Options)

• Firm Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) Contract

• Contract Value: NTE $103M Over 15 Years

Production Contract

• Products Include: 155mm M795 Artillery Projectile and Family of 120mm Mortar Shell

Bodies

• 10 Years Total (Base of Five 1‐year Ordering Periods, Plus a 5‐year Option)

• FFP Requirements Contract

• Contract Value: NTE $891M Over 10 Years

Contract Execution

2 Contracts, 1 RFP, 1 Awardee

• Property Management Contract (IDIQ) to be executed through ACC‐RI

– PCO: Ms. Barbara Voss

– Specialist: Ms. Katie Young

• Production Contract (Requirements) to be executed through ACC‐NJ

– PCO: Ms. Karen Thompson

– Specialist: Ms. Mariah Hanko

Offerors must provide proposals that address both property management and production

Please send any and all correspondence through both acquisition offices

Unique Features of This Competition

Companion Production Contract

Place of Performance Not Specified; Ability to Layaway All or Part of SCAAP

Surge Facilitization Plan

Layaway Option

If Offeror has an alternate location to produce the 155mm and 120mm bodies that will be more efficient than producing at SCAAP, they may layaway all or portions of

SCAAP

Cost to layaway (LIF), maintain the facility while in layaway (MIF), and for surge facilitization will be part of the Total Evaluated Price

Facility must be maintained in accordance with all PWSs

• Gov‐owned equipment and facilities must be maintained in active state unless laid away via an approved LIF project

LIF, MIF, and Surge Facilitization are Direct funded – do not include these costs in production overhead

If entire facility is laid away, MIF will cover overhead costs (utilities, security, etc); if only a portion is laid away, overhead costs are covered by the active lines

If equipment is moved from SCAAP, it shall be maintained IAW PWSs, and be returned and installed at conclusion of this contract at Contractor’s expense

Surge Facilitization Plan

Offerors will be required to submit a detailed facilitization plan describing how given surge requirements will be met within 18 months

• Does NOT include actual procurement of surge quantities

– Depending on head space and procurement quantity, may need an additional

Production contract

– Given surge capacity requirements include similar items that are not on this contract

• USG’s way to react quickly to surge in requirements – prepare facility while getting Production contract in place

• May utilize SCAAP or other facility

• Plan will be evaluated as part of proposal

• Cost for Surge Facilitization will be part of the Total Evaluated Price

• Surge Facilitization plan must be updated as needed

Changes from Industry Day #1

Offerors are no longer required to operate SCAAP for 3 years prior to moving production

Although the USG is no longer requesting 2‐tiered pricing, Offerors are required to submit a breakdown of the proposed PWS costs for information purposes

Production contract will be a Requirements Contract (not IDIQ)

Property Management is now FFP (not FFP/CPFF Hybrid); however, we reserve the right to request CPFF contract type on Production Based Support efforts, if warranted by the risk

SCAAP Property JaMarlon Figgs, JMC

Government‐Owned, Contractor‐Operated (GOCO) Facility

USG retains ownership of the land, facilities, and equipment

To ensure proper care, USG includes its requirements written as Performance Work Statements (PWS) in Property Management Contract

• Indirectly Funded PWS:

– USG does not pay for these requirements directly – they are indirectly funded

(included as overhead) in the price of all products and services at the facility

• Direct Funded PWS:

– USG does pay for these requirements directly (costs are not to be included in overhead)

USG Oversight/ Contract Administration

• On‐site Government Staff

• Routine Audits: i.e., EPAS, Government Property

Role of On‐Site Government Personnel

Commander COL Norbert Fochs – Commander of Blue Grass Army Depot, Anniston Army Depot, & SCAAP

On‐Site Army staff are present to ensure proper use and care of Government Property

• Commander’s Representative Rich Hansen – Responsible for safety, security, environmental, and care of Government property at SCAAP

• Administrative Contracting Officer (ACO) – Ensure contracts are executed IAW SOW, PWS, and delivery schedules; liaison for Contractor with DFAS on invoice payment delays, and ensures open communication between buying activities and Contractor

• Property Administrator – Ensure Contractor is compliant with DPAS & GFEBS requirements, and maintaining GFP according to PWS and regulations

• Security Specialist – Ensure Contractor maintains security posture IAW regulations, including security of GFP and personnel

• Safety Specialist – Ensure Contractor is compliant with OSHA regulations while maintaining a safe and healthful working environment for all personnel including Government personnel and visitors

• Environmental Specialist – Ensure Contractor is compliant with Federal Environmental Protection Agency regulations, State of PA Department of Environmental Protection, and Local Regulations

• Facility Engineer – Provide on‐site review and status of ongoing PBS projects; ensure compliance with Energy and Facility PWS requirements

• Quality Assurance Representatives – Approve LAT, FAT, spot check in‐process inspections

• Public Affairs Officer – Handle requests for Congressional Visitors and media announcements

Modernization Strategy Production Based Support (PBS) (1 of 2)

Key Objectives:

• Increase and maintain manufacturing readiness to meet current & future USG Large Caliber Metal

Parts production requirements

• Improve and sustain safety and environmental compliance

• Reduce SCAAP operating costs and footprint

• Improve quality and efficiency

• Improve Quality of Work Environment at SCAAP

Critical Requirements:

• Investment necessary to avoid significant supply disruptions or to provide an immediate improvement to operating efficiencies

• Efforts requiring action in order to meet specific environmental compliance regulations or safety standards

Validation:

• Process established w/ HQDA G8/G3; AMC, ABO, ASA(ALT); USD(AT&L)

̶ Determination & Findings (D&F) used to validate requirement ̶ <$10M PEO Ammo approves ̶ >$10M USD (AT&L) approves

Modernization Strategy Production Based Support (PBS) (2 of 2)

Production Based Support includes:

• Provision of Industrial Facilities (PIF)

• Layaway of Industrial Facilities (LIF)

• Maintenance of Inactive Facilities (MIF)

Approach:

• Annual Call Letter requests new project proposals from Contractor

• Contractor submits a 1‐N List of Proposed PBS Projects prioritized by:

– Operational Continuity, Environmental, Safety, Return on Investment, and Cost Reduction

• USG prioritizes PBS projects amongst all GOCO AAPs

Each PBS project negotiated and awarded separately via task order to the Property Management contract

FY14 PBS Efficiency Initiative

$26M was invested into the SCAAP Efficiency Initiative to be implemented by the end of the current facility contract

• Facility overhead reductions based off reduced footprint and flexible equipment

• Gives the facility ability to operate efficiently at 5k to 10k monthly production rates based upon product mix

Project Description

Saw Area Transformation Automate pallet loading

Quick Die Change for Press Lines Utilize carts, rails and die packs to minimize tooling change over times for the press systems

Small Batch Heat Treat New small batch heat treat capability to supplement the existing large continuous flow systems

Rough Turn Lathes Adds flexible rough turning capability in the Forge Shop

Flexible Manufacturing Cell, Phase 3 Adds flexible finish turning capability to the facility through the addition of right‐sized equipment

Band Welders Repair and Replace 5 rebuilt and 5 new band welders for efficient and balanced production

Package Boiler Supplements the existing plant boilers during times of lower production and steam demand

Major Maintenance

USG approved purchases, repairs, and/or upgrades made to Government‐ owned facilities or equipment

Contractor will submit 1‐N prioritized major maintenance list to USG for approval

Contractor shall invest an agreed upon amount annually

Major Maintenance Projects Generally are More Urgent and Less Costly than PBS Projects

Armament Retooling and Manufacturing Support

(ARMS)

ARMS is a Congressionally mandated program intended to reduce USG ownership costs at GOCOs

Encourage commercial use of the facility and/or tenants on under utilized portions of the facility on a non‐interfering basis

Deliverables:

• Annual ARMS Marketing Plan

• ARMS Quarterly Activity Report

Contractor is required to maintain all equipment and facilities, even those used for ARMS USG will provide funding for first year for marketing; marketing costs are be covered by the

Contractor in subsequent years USG requires 4% of commercial sale revenue as consideration for depreciation of USG‐owned equipment Benefit to Contractor:

ARMS Revenue Distribution Table

Annual ARMS Consideration (sum of rent and/or commercial revenue consideration)

Contractor Compensation/ Incentive Portion

Army Portion (nominal values) ARMS Project Allotment

Facility Project Allotment

Baseline + (30% loss to 4.9% growth) 20% of Total Consideration 60% 20% Baseline + (5 to 15.9% growth) 25% of Total Consideration 50% 25%

Baseline + (≥ 16% of annual growth) 30% of Total Consideration 40% 30%

Intellectual Property (IP)

USG will provide IP, tooling, dies, and gages to Operating Contractor to facilitate smooth transition and reduced learning curve

• Use of USG‐owned IP is not required and is at Contractor’s discretion on how to utilize IP provided to supplement, or guide, its process development

• The USG makes no claims or guarantees about the information provided, and is not to be held liable for any missing or inaccurate information

• Use of the information contained within the IP does not guarantee acceptable performance

• It is solely the Contractor’s responsibility to develop a process capable of meeting the contract requirements

• The depth and completeness of the Intellectual Property may vary per item

• The Intellectual Property is not intended as step‐by‐step instructions for the manufacture of these items, nor does it represent any USG recommended processes or designs

IP Includes:

• Manufacturing Drawings (Process, Tooling, & Gauge)

• Process Documents (Inspection, Work Instructions, SOPs, Process Control Records

• Programming (NC Tooling and PLC Equipment)

Upon conclusion of this Property Management contract, Contractor shall provide updated IP, tooling, dies, and gages back to USG

National Environmental Policy Act (NEPA) & Preservation of Historic Buildings

Environmental analysis and compliance with NEPA are required for Army actions affecting human health and the environment

Operating Contractor is responsible for preparation and costs of NEPA analyses

Given the historic nature of building and structures at SCAAP, compliance with National Historic Preservation Act and consultation with the State Historic Preservation Office (SHPO) are required for actions affecting these structures

Property Management Contract Katie Young, ACC‐RI

Property Management Contract 5‐year base plus 2, 5‐year options (15 years total if all options are exercised) No Direct Cost Contract

• USG does not pay for these requirements directly – they are indirectly funded (included as overhead) in the price of all products and services at the facility

• Indirectly Funded PWSs:

– Government Property ‐ Safety

– Maintenance ‐ Occupational Health – Industrial Hygiene

– Environmental ‐ Utilities

– Security ‐ Transition

• Other Indirectly Funded Requirements:

– Major Maintenance ‐ Public Affairs/Congressional Visits

• Direct Funded PWS:

– ARMS ‐Maintenance of Inactive Facilities (MIF)

– Facility Plans, Strategies, and Analyses ‐ Surge Facilitization

– Layaway of Industrial Facilities (LIF)

• Other Direct Funded Requirements:

– On‐Site Government Staff Supply Support

FFP – Reserve right to use other contract types for PBS projects (i.e., CPFF, FPI) Ownership and data rights

• Ownership and rights for all Government Furnished Property (GFP) at SCAAP and IP for all Large Caliber Metal Parts vests in the USG

• USG intends to maintain ownership for all modifications to GFP, all Contractor acquired property (unless otherwise agreed to by PCO), and IP throughout this contract

Commercial use

• Use of SCAAP will be allowed for commercial use with PCO approval and consideration IAW ARMS PWS

Small Business Participation for Other than Small Business

Submittal of a Small Business Subcontracting Plan in accordance with Federal Acquisition Regulation (FAR) 19.7 (FAR Clause 52.219‐9, Small Business Subcontracting Plan) is REQUIRED

The Small Business Subcontracting Plan will be reviewed when the apparent awardee is determined

In accordance with AFARS Appendix DD, the Small Business Subcontracting Plan must correlate with the percentages of small business utilization identified in the Contractor's Small Business Participation Plan in order to be eligible for award

Evaluated Options

Exercising an option is always at the USG's discretion; Offerors should not assume any option will be exercised if a base award is received

When determining whether to exercise an evaluated option, the USG will do analysis IAW FAR 17.207

Production Contract Mariah Hanko, ACC‐NJ

Large Caliber Metal Parts Production Contract

(W15QKN‐17‐R‐0018)

Refer to Section J, Attachment 0001, W15QKN‐17‐R‐0018 for the Large Caliber Metal Parts proposal requirements

Contract Type: FFP Requirements Contract Limited to the NTIB

• ALL of the following Large Caliber Metal Parts requirements will be placed on this contract

Products:

• 155mm M795 High Explosive (HE) Artillery Projectile Metal Parts

• 120mm HE Mortar Cartridge Shell Bodies

• 120mm Full Range Practice Cartridge (FRPC) Mortar Shell Bodies

• 120mm White Phosphorous (WP) Smoke Mortar Cartridge Shell Bodies

• 120mm Illuminating Front/Rear Mortar Cartridge Shell Bodies

Period of Performance: 5‐year base plus 1, 5‐year option (10 years total if option is exercised)

Pricing required for all 10 years (5‐year base plus 5‐year option)

RFP W15QKN‐17‐R‐0018 will be an Attachment to RFP W52P1J‐15‐R‐0023

Unique Contractual Requirements

Fixed Price Type Contract with an Equitable Price Adjustment (EPA) on Steel and Copper

• 10% EPA over first 5‐year period

• 17% EPA over the next 5‐years

All Clauses of this solicitation and resultant contracts must be flowed down to and met by all subcontractors at all tiers

First Article Testing is required for 155mm M795 Artillery Projectiles and ALL 120mm Mortar Cartridge Shell Bodies IAW with item TDPs and USG required delivery schedules

Ballistic First Article Testing (BFAT) & Ballistic Lot Acceptance Testing (BLAT) will be required ONLY for the 155mm M795 Projectiles

• Ballistic Samples MUST be provided to designated USG test location NLT 45‐days prior to Contractual Delivery Date

SPC & MSE will be required for both 155mm M795 Projectiles and Family of 120mm Mortar Cartridge Shell bodies

Economic Price Adjustment (EPA)

EPA will be required for Steel and Copper Actual Method Example:

R1 = Baseline Cost of Steel and Copper applied in Out‐year Unit Pricing R2 = Actual Steel and Copper Cost O = Out year Unit Price So, for 10,000 units if: R1 = $50 R2= $70 O = $200 and EPA Trigger Threshold is > 5%

Step 1: Calculate difference between Baseline Cost of Steel and Copper and Actual Cost of Steel and Copper R2 ‐ R1 = Raw Material Cost Difference $70 ‐ $50 = $20/unit Step 2: Out year Unit Price with Economic Price Adjustment

(R2 ‐ R1) + O ($70 ‐ $50) + $200 = $220

Step 3: Calculate the percent change of the out year unit price with EPA from out year unit price awarded

(R2 ‐ R1) / O ‐ Percent Change ($70 ‐ $50) /$200 = .10 * 100% = 10% (Percentage change of initially awarded unit price)

Step 4: Confirm if Percentage Change > Trigger Threshold warranting an EPA, if yes then calculate EPA Raw Material Cost Difference * Qty = EPA $20.00 * 10,000 = $200,000

Large Caliber Metal Parts Nicole Campesi, PM‐CAS

155mm, M795 High Explosive (HE) Projectile Metal Parts

Part number: 9326055 Material: High Fragmentation steel (HF‐1) Diameter: 155mm Finished length: ~30 inches Finished weight: ~75 pounds Rotating band: welded brass Color: olive drab Additional components (Contractor Furnished Material – CFM):

• Flexible rotating band cover (FRBC)

• Shock attenuating lifting plug (SALP)

• 155mm wooden pallet

Additional components (Government Furnished Material – GFM):

• None

End item: 155MM, HE, M795

120mm, M933A1/M934A1 High Explosive (HE) Cartridge Shell Bodies

Shell Body

Part number: 12953514 Material: 1090 steel Diameter: 120mm Finished length: ~16 inches Finished weight: ~20 pounds Color: olive drab Additional components (CFM): fuze adapter Additional components (GFM): none End item: 120mm HE M933A1/M934A1

120mm, M931 Full Range Practice Cartridge (FRPC) Shell Bodies

Shell Body

Part number: 12957020 Material: 1090 steel Diameter: 120mm Finished length: ~16 inches Finished weight: ~20 pounds Color: blue Additional components (CFM): fuze adapter

End item: 120mm M931 FRPC

120mm, M929 White Phosphorous (WP) Smoke Cartridge Shell Bodies

Shell Body

Part number: 12953497 Material: 1043 to 1045 steel Diameter: 120mm Finished length: ~16 inches Finished weight: ~20 pounds Fuze adapter section: inertia welded Color: light green Additional components (CFM):

• Thirty (30) felt wedges (per shell body)

End item: 120mm M929 WP Smoke

120mm, M930 Visible Light (VL) Illuminating and M983 Infrared (IR) Cartridge Shell Bodies

Shell Body (Front)

Shell Body (Rear)

Front part number: 12967864 Rear part number: 12967865 Material: 1340 steel Diameter: 120mm Front finished length: ~10 inches Rear finished length: ~8 inches Front finished weight: ~20 pounds Rear finished weight: ~5 pounds Color: white Additional components (CFM): none

End item: 120mm M930 VL and 120mm M983 IR

Anticipated Quantities

Based on FY17 President’s Budget (PB17)

50,000

100,000

150,000

200,000

250,000

FY18 FY19 FY20 FY21 FY22

M795 Metal Parts 120mm Shell Bodies

DISTRIBUTION STATEMENT A - Approved for public release; distribution is unlimited. PAO# 069-17FINAL 43

Sections L & M Doug MacGorman, ARDEC

Katie Young, ACC‐RI Mariah Hanko, ACC‐NJ

Sections L & M ‐ Solicitation Provisions

Basis for Award

• Best Value Subjective Tradeoff Analysis

• The USG reserves the right to make an award to other than the lowest priced Offeror, or to other than the Offeror with the highest technical rating

• Offerors that receive a final rating of Red/Unacceptable at any Factor/Subfactor level are ineligible for award

Disclaimers

• The following charts are for informational purposes only and will provide a general brief overview of the Sections L & M requirements

• The RFP is the Final source of proposal submission requirements and the evaluation approach to be utilized

• Therefore, DO NOT rely on information presented today in formulating your proposal

Factors and Subfactors for Evaluation

Volume Factors Subfactors Evaluates

I

Factor 1: M795 Technical

M795 Manufacturing Plan Product Only

M795 Critical Characteristics Control Product Only

Factor 2: 120mm Technical

120mm Manufacturing Plan (one plan per Mortar item ‐ 4 total)

Product Only

120mm Critical Characteristics Control (one plan for all Mortar items)

Product Only

Factor 3:

Management

Integrated Master Schedule and Analysis of Schedule Risk

Combined Product & Facility

Performance Work Statement (PWS) Breakdown Facility Only

Cost Control Strategies Combined Product & Facility

Quality Management System Combined Product & Facility

Surge Facilitization Plan Facility Only

II Factor 4: Price Combined Product & Facility

III Factor 5: Past Performance

Large Caliber Metal Parts Production Product Only

Property Management Facility Only

IV Factor 6: Small Business

Combined Product & Facility

Factor and Subfactor Relative Importance

Each factor is numbered in order of relative importance

Each subfactor is numbered in order of relative importance

Factor 1, Factor 2, and Factor 3 when combined are significantly more important than Factor 4, Factor 5, and Factor 6

The Technical (non‐cost) Factors when combined are more important than Price

Unique Aspects of L & M

Manufacturing plan required for each item Production rates within L & M will vary per item, are only provided for proposal purposes, and may not reflect actual requirements

• 5,000/month 155mm M795 HE

• 12,000/month combined 120mm HE and FRPC

• 1,500/month 120mm Smoke

• 2,500/month 120mm Illum

Integrated Master Schedule (IMS)

• One (1) Top level, overarching, IMS, encompassing roll‐up of all major milestones/events

• Three (3) Detailed Schedules including and identify all activities, key milestones, interdependencies, and critical path for each Schedule

1. Property Management

2. M795 Artillery Metal Parts Production

3. 120mm Cartridge Shell Body Production

Risk Areas – Schedule & Cost

• Requesting identification of high risk areas and associated mitigation plans

LIF, MIF, and Surge Facilitization Plan

Total Evaluated Price (1 of 3) Property Management

FY 18 FY 19 FY 20 FY 21 FY 22

CLIN 0001 - Contract Exhibits - CDRLS NSP NSP NSP NSP NSP

CLIN 0002 - SCAAP Facility Plans, Strategies, & Analyses PWS -$ -$ -$ -$ -$

CLIN 0003 - Support of On-Site Government Staff Supplies -$ -$ -$ -$ -$

CLIN 0004 - Production Based Support (PBS) Projects

CLIN 0004A - Maintenance of Inactive Facilities (MIF) PWS -$ -$ -$ -$ -$

CLIN 0004B - Layaway of Industrial Facilities (LIF) Project -$ -$ -$ -$ -$

CLIN 0005 - SCAAP Surge Facilitization -$ -$ -$ -$ -$

BASIC TOTAL EVALUATED PRICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -$

SCAAP Property Management Contract Basic Contract Ordering Periods

Total Evaluated Price (2 of 3) Production

120mm M933A1/M934A1 HE Mortar Shell Body

FY18 THRU FY22 FY 18 FY 19 FY 20 FY 21 FY 22

Unit Price Weight Unit Price Weight Unit Price Weight Unit Price Weight Unit Price Weight

5,000 - 15,000 w% w% w% -$ w% -$ w%

15,001 - 25,000 x% x% x% -$ x% -$ x%

25,001 - 50,000 y% y% y% -$ y% -$ y%

50,001 - 80,000 z% z% z% -$ z% -$ z%

100% 100% 100% 100% 100%

Total $ Total $ Total $ Total $ Total $

Weighted Evaluated -$ -$ -$ -$ -$

Total $ Total $ Total $ Total $ Total $

Total $ Total $ Total $ Total $ Total $

Total $

EVALUATED PRICE -$

120mm Shell Body

Initial First Article Test

Subsequent First Article Test

Basic Contract Ordering Periods

Quantity Ranges

Production

Example of how USG plans to evaluate information provided in Section B of Production Contract

Total Evaluated Price (3 of 3)

SCAAP Property Management Basic Total Evaluated Price -$ SCAAP Property Management Option 1 Total Evaluated Price -$ SCAAP Property Management Option 2 Total Evaluated Price -$ Large Caliber Metal Parts Production Basic Total Evaluated Price -$ Large Caliber Metal Parts Production Option Total Evaluated Price -$

Total Evaluated Price -$

N O V

D E C

J A N

F E B

M A R

A P R

M A Y

J U N

J U L

A U G

S E P

O C T

N O V

D E C

J A N

F E B

M A R

A P R

M A Y

J U N

J U L

A U G

S E P

O C T

N O V

D E C

DRAFT RFP RELEASE

FINAL RFP RELEASE

PROPOSALS DUE

FINAL PROPOSALS DUE

CONTRACT AWARD

NTP I

NTP II

2016 2017 2018

= Award

SCAAP Transition Schedule = Milestone

Notice to Proceed (NTP) I:

• Grants the winning Contractor approval to begin preparing

• The incumbent’s Property Management Contract is still in place; the incumbent is still responsible for the property

• In order to be granted NTP I, Contractor must have approved Transition Plan

• After receiving NTP I Contractor shall:

1. Establish workforce

2. Apply for permit transfer

3. Create procedures, policies, & safety plans

4. Work with incumbent to synchronize and facilitate transition (if applicable)

5. Develop and initiate plans for all PWSs requirements

Notice to Proceed (NTP) II:

• Grants the winning Contractor full responsibility for Operation and Management of SCAAP

• In order to be granted NIP II, Contractor must have:

1. All applicable permits in place or interim approval with a planned path forward in place

2. Management oversight in place for operation

3. Processes/procedures in place to meet process, safety, and management requirements

4. Evidence of liability coverage for full responsibility of the plant provided to the Contracting Officer

• NTP II may coincide with the end of the Incumbent’s Property

Management Contract

= NTP

Closing Comments

Industry Day is for planning purposes only and shall not be construed as a commitment or obligation on behalf of the USG

No award will be made as a result of Industry Day

All information provided today is TENTATIVE and subject to change

All information regarding the SCAAP acquisition, to include Industry Day #2 slides, questions and answers, etc. will be posted on the Federal Business Opportunities Website (Fed Biz Opps, www.fbo.gov) under Solicitation #W52P1J‐15‐R‐0023

It is the responsibility of the interested parties to check this website for the latest information regarding this acquisition

BACK‐UP SLIDES

Acronyms (A ‐ J)

• 1‐N List – List of all projects or requirements in priority order

• AAP – Army Ammunition Plant

• ACC – Army Contracting Command

• ACC‐NJ – Army Contracting Command New Jersey

• ACC‐RI – Army Contracting Command Rock Island

• ABO – Army Budget Office

• ACO – Administrative Contracting Officer

• AFARS – Army Federal Acquisition Regulation Supplement

• AMC – Army Materiel Command

• ARDEC – Armament, Research, Development, & Engineering Center

• ARMS – Armament Retooling and Manufacturing Support

• ASA(ALT) – Assistant Secretary of the Army for Acquisition, Logistics, and Technology

• CDRL – Contract Data Requirements List

• CFM – Contractor Furnished Material

• CPFF – Cost Plus Fixed Fee

• DFAS ‐ Defense Finance and Accounting Service

• DPAS ‐ Defense Property Accountability System

• EPA – Equitable Price Adjustment

• EPAS – Environmental Performance Assessment System

• FAR – Federal Acquisition Regulation

• FAT – First Article Test

• Fed Biz Opps – Federal Business Opportunities Website, www.fbo.gov

• FFP – Firm Fixed Price (Contract)

• FPI – Fixed Price Incentive (Contract)

• FRPC – Full Range Practice Cartridge

• FY – Fiscal Year

• GFEBS – General Fund Enterprise Business System

• GFM – Government Furnished Material

• GFP – Government Furnished Property

• GOCO – Government Owned‐Contractor Operated

• HE – High Explosive

• HQDA – Headquarters, Department of the Army

• IAW – In Accordance With

• IDIQ – Indefinite Delivery, Indefinite Quantity (Contract)

• IMS – Integrated Master Schedule

• IP – Intellectual Property

• JMC – Joint Munitions Command

• JMC‐IC – Joint Munitions Command, Industrial Capabilities

• LAT – Lot Acceptance Test

• LC‐MPTS – Large Caliber Ammunition Metal Parts

• LIF – Layaway of Industrial Facilities

• MIF – Maintenance of Inactive Facilities

• MSE – Measurement System Evaluation

• NC Tooling – Numerically Controlled Tooling

• NEPA – National Environmental Protection Act

• NLT – No Later Then

• NSP – Not Separately Priced

• NTE – Not To Exceed

• NTIB – National Technology and Industrial Base

• NTP – Notice to Proceed

• OSHA – Occupational Safety and Health Administration

• PA – Pennsylvania

• PBS – Production Base Support

• PCO – Procuring Contract Officer

• PD‐JS – Project Director Joint Services

• PEO Ammo – Program Executive Officer Ammunition

• PIF – Provision of Industrial Facility

• PLC – Programmable Logic Controlled

• PM‐CAS – Project Manager Combat Ammunition Systems

• PWS – Performance Work Statements

• RDECOM – Research, Development, and Engineering Command

• RFP – Request for Proposal

• SCAAP – Scranton Army Ammunition Plant

• SHPO – State Historic Preservation Office

• SOPs – Standard Operating Procedures

• SOW – Statement of Work

• SPC – Statistical Process Control

• TDP – Technical Data Packages

• USD (AT&L) – Under Secretary of Defense for Acquisition, Technology, and Logistics

• USG – United States Government

• WP – White Phosphorus

Acronyms (K ‐ Z)

Registration to be Eligible for a DoD Contract

All Contractors who provide goods/services to the Department of Defense (DoD) must be registered in the System for Award Management (SAM). If you are not registered in SAM, you cannot be awarded a DoD Contract.

The website for registering is: http://www.sam.gov/.

The TDPs will be provided after issuance of the RFP, upon request to the Contracting Officer. Drawings for the TPDs are Distribution D and available to only those firms registered with the US/Canada Joint Certification Program (JCP). For information on becoming certified, see www.dlis.dla.mil/jcp.

Restricted Technical Data will not be forwarded to a Contractor who has not been certified. A copy of the DD 2345 is required with written request to the Contracting Officer in order to receive the drawings.