LCAAP_Industry_Day__1_-_Questions__Answers_17_Nov_2017.docx.pdf

Lake City Army Ammunition Plant (LCAAP) Questions & Answers 11/17/2017

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

1. Q: Will the 10-year period of performance be Firm Fixed Price (FFP) beyond the 5-year base?

A: Yes. The acquisition strategy is still under review, however, the 2-year option and the 3- year award term would also be FFP.

2. Q: Is the Government considering a period of performance longer than 15 years?

What advantages does the Government see in a 15-year term vs a 10-year term?

A: The acquisition strategy is still under review, however, the Government is considering all opportunities to maintain long term stability and promote contractor investment in the plant.

3. Q: Would the Government consider awarding the Facility contract and the

Production contract to two different offerors?

A: No.

4. Q: How will past performance, to include maintenance, be evaluated?

A: Evaluation criteria has not been finalized, however, recent and relevant experience involving the same or similar manufacturing capability, to include commercial contracts, may be evaluated. Absent any recent or relevant past performance history, a neutral confidence rating will be assigned and the proposal will be evaluated neither favorably nor unfavorably.

5. Q: Is a contractor allowed to bring vertically integrated experience to LCAAP?

How flexible is the Government with implementing change?

A: The Government is amenable to this concept and will consider any initiative to promote increased operating efficiencies recommended by the operating contractor.

6. Q: Is there anything out of the ordinary at LCAAP that you would not see at another Government Owned Contractor Operated (GOCO) facility?

A: LCAAP has three waste water treatment plants; Explosive Waste Incinerator, Pyrotechnics and Industrial waste water facilities. The Explosive and Pyrotechnics facilities are unique to LCAAP and not present at all facilities. Multiple Industry Days will be conducted to allow interested parties to tour the facility.

7. Q: Is steam a predominate source of heating and power?

A: Steam is primarily used for production process heating, storage magazine heating, and comfort heat in buildings; not for power generation.

8. Q: Will modernization efforts require building new buildings and facilities?

A: The majority of projects will be within existing infrastructure, however, there is potential for new construction.

9. Q: In considering a reopener for Nitrocellulose (NC), a similar situation exists with propellant. Will the Government entertain an Economic Price Adjustment (EPA) for propellant or set the price to level the field?

A: The Government is considering a reopener for propellant and looking for feedback from industry that minimizes the risk to both the Contractor and the Government.

Rationale shall include specifics detailing why a reopener is necessary and how it would be executed.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating

10. Q: Will the Government consider an EPA for NC and lead?

A: The Government is considering a reopener for NC and looking for feedback from industry that minimizes the risk to both the Contractor and the Government. Rationale shall include specifics detailing why a reopener is necessary and how it would be executed. An EPA for lead is not being considered.

11. Q: Is the Government willing to provide ball powder as Government Furnished

Material (GFM)?

A: The Government does not plan to provide propellant as GFM.

12. Q: How can the LCAAP operator get FFPs or guaranteed pricing for NC out of

Radford?

A: The Government is considering a reopener for NC and looking for feedback from industry that minimizes the risk to both the Contractor and the Government.

13. Q: Will there be an EPA for zinc and copper?

A: Yes

14. Q: Will there be an EPA for energy/gas, oil, and electric?

A: No. The Government is not considering a reopener for energy or utilities.

15. Q: Why are ammunition cans GFM? Is there an issue with the cans?

A: There are no issues with the cans. The Government is considering consolidating the M2A2 cans under the LCAAP contract in lieu of ACC-RI executing separate contracts.

16. Q: Could you clarify the U.S. Army Corps of Engineers (USACE) involvement with the water treatment plant?

A: Funding has been provided to the USACE to design the water treatment plant. More information associated with this project will be provided on the Virtual Technical Library (VTL) or On-Site Library (OSL).

17. Q: Would the Government consider direct funding transition? How is performance from the incumbent guaranteed?

A: The Government plans to include transition as an indirect Performance Work Statement (PWS), and each company shall make a business decision on whether to include the cost of transition in its ammunition unit prices. The Government is seeking feedback and additional information from industry on proposed alternate approaches.

Per the current contract, the incumbent is in the plant until 30 September 2020 and is responsible to perform/deliver up until that date. A detailed Contract Startup PWS is in place on the current contract for the incumbent to negotiate in good faith and assist in transition, if required.

18. Q: What is the facility’s overall safety record?

A: Information regarding the facility’s overall safety record can be accessed via the OSHA website.

19. Q: Will OSHA logs/ratings be available on the VTL/OSL?

A: The Government will provide redacted versions of the OSHA logs on the VTL or OSL.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

20. Q: Are ergonomic issues (slips, trips, falls) tracked?

21. Q: What is timeline for completion of repairs at the primer facility?

A: Repairs are complete and the facility is back in production.

22. Q: Are there any environmental issues that industry needs to be aware of?

A: LCAAP is a Superfund site. A Baseline Facility Assessment (BFA) as well as an Environmental Assessment will be posted to the VTL or OSL.

23. Q: Will historical maintenance and environmental records be disclosed in the

RFP?

A: Maintenance costs and records will not be disclosed as they are proprietary to the incumbent. Maintenance procedures will be posted to the VTL or OSL.

24. Q: Is commercial work strictly small caliber or does it include third party work?

A: Commercial work includes commercial small caliber ammunition. Third party work is work in which the Government is the ultimate customer.

25. Q: Would the Government consider expanding sales internationally for commercial utilization to find new customers for LCAAP?

A: Commercial utilization is being considered as an evaluation factor. Pursuit of International sales are not discouraged but would need to be approved through the State Department.

26. Q: Will the Government consider long term commercial use approval?

A: The Government will consider a long term commercial facility use approval with conditions in which approval may be revoked. Government orders will take precedence.

27. Q: Will the Government provide rent-free use of the small caliber equipment for commercial purposes in order to encourage commercial use and absorb fixed costs of the facility? What is the Government considering with respect to the evaluation factor for commercial use?

A: The Government plans to allow commercial use of the facility by the successful offeror, however, the contractor will be required to provide consideration for exclusive use of the facilities. Evaluation criteria has not been finalized. The Government requests feedback from industry on the preferred method to obtain consideration for commercial use of the facilities.

28. Q: Will the Government consider a retroactive discount model based on actual commercial production quantities instead of a usage fee?

A: Yes. The Government recommends industry provide input outlining its proposed commercial utilization program.

29. Q: Will the Government provide the actual output/efficiency data of modernized equipment (i.e. front end/back end cells) to offerors?

A: The Government will provide equipment operating procedures and specifications on the VTL or OSL. The actual output will not be disclosed as it is proprietary to the incumbent.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

30. Q: Will this source selection be Full and Open?

A: Yes, however, a facility clearance will be required.

31. Q: Can you provide the order of importance for evaluation factors?

A: Evaluation criteria has not been finalized.

32. Q: How will the Government manage second source when the majority of items appear to be requirements?

A: Indefinite Delivery Indefinite Quantity (IDIQ) CLINs can be procured under any contract vehicle, not solely LCAAP or Second Source. The contract vehicle used to procure IDIQ CLINs is at the sole discretion of the Government. If circumstances in accordance with the terms of the requirements clause are present, requirement CLINs can also be procured outside of the LCAAP contract.

33. Q: How is capital investment in the plant determined?

A: Government investment is ultimately determined by the Government, however, contractor input is considered via the annual Production Based Support (PBS) Call Letter process and subject to the availability of funds. Contractor investments must meet specific objectives/criteria to be outlined in the Request for Proposal (RFP) and receive Government approval prior to executing.

34. Q: How will modernization efforts impact the transition period?

A: All modernization projects that may extend into the transition period are being evaluated in order to mitigate and assist in eliminating project transition risk.

35. Q: Can a contractor use its own development funding at LCAAP? Should it be included in its proposal? Will it be positively received?

A: Yes, however, evaluation criteria have not been finalized. It is recommended that any self-investment be included in the proposal.

36. Q: Is all equipment and Intellectual Property used for production of small caliber ammunition, linking, and packing currently owned by the Government?

A: Yes. A Government Furnished Property (GFP) listing and the incumbent’s property that will transfer to Government ownership at the end of the contract will be provided with the draft RFP.

37. Q: What is the scale of modernization efforts and will they fall under an indirect

PWS?

A: Projected PBS programs will be addressed at future industry days.

38. Q: Will modernization efforts be separate contracts or modifications to the existing contract?

A: Modernization efforts will be modifications to the existing contract. However, the Government reserves the right to execute project work to the USACE or other entity.

39. Q: What is your vision of modernization and to what level will the enhancements to current equipment and operations be (i.e. leading edge technology, or just simple upgrades to equipment)?

A: The Government is focused on continuous improvement opportunities that support increased efficiencies, and cost effective production of quality ammunition while focusing

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

on a sustainable base by moving to more current technology. Modernization strategy is to ensure production continuity, reduce operating costs, improve quality, and ensure environmental and safety compliance. The strategy will pursue technology solutions that provide the best cost/benefit results.

40. Q: What are your biggest priorities/challenges for LCAAP over the next five years?

A: The Army is focused on readiness, modernization, and continuous improvement in the production processes. The upcoming RDT&E programs will also be important with execution of the new contract, as will production continuity, modernization and new technology/capability insertion.

41. Q: What is the name of the public forum that was mentioned where we can find funding information relative to modernization?

A: The public forum is the National Defense Industrial Association (NDIA) Industrial Committee of Ammunition Producers (ICAP). The last meeting was held the week of October 9, 2017. The charts can be found on the internet or by request to the Procuring Contracting Officer (PCO).

42. Q: Are maintenance costs steady state or variable?

A: Maintenance costs are variable.

43. Q: Will fixed price facility costs be adjusted depending on production volumes?

A: The Government will require unit prices for multiple ranges. Any operations and maintenance costs of the facility should be reflected in the unit prices. The range price utilized will reflect cumulative quantities per ordering period at time of award. The Government will adjust unit prices for previously awarded DODICs if the change in the cumulative family quantity results in a reduced price to the Government.

44. Q: Is the Armament Retooling and Manufacturing Support (ARMS) program focused on optimizing idle time in production or repurposing other portions of the facility?

A: The ARMS program is primarily focused on repurposing underutilized portions of the facility to reduce cost of ownership.

45. Q: Can contractors talk to Government representatives about Lake City in general and about the upcoming contract?

A: General questions relative to LCAAP can be discussed with Government representatives. The Joint Munitions Command (JMC) website (www.jmc.army.mil) is a good resource for general information. Specific questions about the competition need to be directed to the PCO.

46. Q: How will the Government ensure 20mm production should the operating contractor change?

A: The successful offeror is required to abide by the terms of the 20mm Load Assemble Pack (LAP) ARMS agreement. The Government will define the requirement to maintain other aspects of 20mm that are currently being handled at LCAAP. The Government requests white papers outlining concerns and an optimal path forward with regard to 20mm.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

47. Q: Is the Government planning to transition MK211 production to the US?

48. Q: Will non-standard ammunition (NSA) be included under the next LCAAP contract?

49. Q: Will the new operating contractor have access to the equipment and

Intellectual Property (IP) associated with the primer issue resolution?

A: The next operating contractor will have access to the equipment and IP associated with the tetrazene reestablishment following the April incident.

50. Q: Will the Government consider Not-To-Exceed prices for Indefinite Delivery

Indefinite Quantity (IDIQ) items?

A: IDIQ pricing will be FFP and established at time of award. However, the Government will consider any feedback on an alternate strategy.

51. Q: How long does it take to implement a process change?

A: Changes in the small caliber process must be in-line with Government requirements (i.e. first article testing, etc.). Timing associated with approving a specific change depends on the complexity and scope of the change.

52. Q: How long have modernization changes taken to be implemented?

A: The contractor will provide its input for new project requirements via the annual PBS Call Letter which plans for projects two years in advance. The highest ranked projects based upon defined criteria are priority. The period of performance for each project varies based upon magnitude of the work to be completed.

53. Q: Will information on equipment usage be available?

A: Operational costs and equipment usage will not be disclosed as it is proprietary to the incumbent. However, equipment operating procedures will be provided on the VTL or

OSL.

54. Q: Will offerors be provided current cost information for existing PWS requirements?

A: PWS costs will not be disclosed as they are proprietary to the incumbent.

55. Q: Will any efficiency baselines per product be provided?

A: This information will not be disclosed as it is proprietary to the incumbent.

56. Q: How many shifts does the plant run? What are staffing requirements?

A: This information will not be disclosed as it is proprietary to the incumbent.

57. Q: Will the Government provide additional details (e.g., timelines, rough order of magnitude costs, etc.) for past investments/improvements?

A: Timelines and costs associated with projects will not be disclosed as they are proprietary to the incumbent. However, assets as a result of those investments will be included in the GFP listing and the incumbent’s property that will transfer to Government ownership at the end of the contract will be provided with the draft RFP.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

58. Q: When does the current Collective Bargaining Agreement expire? How will this be handled if expiration of the contract is post-award and pre-contract startup?

A: Under Review. The Government will consider addressing this at the next Industry Day.

59. Q: Will the Government provide current terms of existing collective bargaining agreements applicable to the facility?

A: Under Review. The Government will consider addressing this at the next Industry Day.

60. Q: Is the Government planning to do a should-cost review?

A: The Government will develop an Independent Government Cost Estimate (IGCE).

The IGCE, in conjunction with price competition, will determine if the proposed price is fair and reasonable.

61. Q: How will the Government evaluate cost-realism?

A: The Government does not plan to evaluate cost-realism. The Government will develop an IGCE. The IGCE, in conjunction with price competition, will determine if the proposed price is fair and reasonable.

62. Q: Will the Government allow the LCAAP contract and the second source contract to be awarded to the same contractor?

A: Yes, however a geographical separation between production facilities is required.

63. Q: Will the award term options be bilateral?

64. Q: Will there be National Technology and Industrial Base restrictions for components and raw materials on the new contract?

A: The acquisition strategy is still under review, however, the Government is considering the following restrictions: Load Assemble Pack (LAP), magnesium powder, propellant, NC, and containers. A determination on consolidation of containers is still pending.

65. Q: In the Industry Day charts, are production quantities Government only or inclusive of commercial?

A: All quantities shown in the charts are solely Government prime contract production.

66. Q: Can industry obtain more details on PWS specifics?

A: PWSs will be provided with the Draft RFP (targeting June 2018).

67. Q: Can industry obtain layouts of the buildings?

A: Floor layouts will likely be included in the On-Site Library (OSL). The OSL is anticipated to be ready by Draft RFP.

68. Q: Are there any changes forthcoming relative to critical defects?

A: The critical characteristic requirements are being reviewed for continuous improvement but there are no definitive changes at this time.

69. Q: Are material storage and receiving operations done by a 3rd party?

A: Material storage and receiving is a business decision for the successful offeror.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating

70. Q: Can the Government provide more detail on the nature of the Cost Benefit

Analysis (CBA) analysis currently ongoing?

A: A CBA is being conducted by the Government in order to finalize the Acquisition Strategy. Aspects covered by the CBA include EPA considerations and the period of performance of subsequent contract, taking into account the ongoing/upcoming modernization and RDT&E efforts. This CBA, along with input from industry, will be used to finalize the Acquisition Strategy.

71. Q: Is the highest volume level for each of the calibers based on the maximum capacity of the LCAAP facility with current equipment? If so, is that capacity based on 3 shifts per day, 8 hours per shift, 5 days per week (3/8/5 schedule) or 3 shifts per day, 8 hours per shift, 7 days per week (3/8/7 schedule)?

A: Ranges are based upon historical procurement and production levels. Estimated capacities will be provided on the VTL or OSL.

72. Q: Can the Government provide a list of equipment in the facility and/or a plant layout map in advance of the next industry day to enable a more productive tour of the facility?

A: The Government will take this request into consideration when planning for Industry Day #2. An equipment listing will be provided with the Draft RFP and Industry Day #3 will be held subsequent to its release. Plant maps will be available on the VTL or OSL.

73. Q: Would the Government consider providing equipment layout within the building by operation?

A: Building layout drawings will be provided on the VTL or OSL.

74. Q: Could one of the future industry day plant site visits be scheduled on a non-operating day to enable safe access to equipment for closer evaluation on a tour?

A: The Government will take this request into consideration when planning for future Industry Days.

75. Q: On future tours, can the covers be removed from in-process product storage

(buggies, tubs, etc.) to provide visibility into current production at LCAAP?

A: Work in Process (WIP) will not be disclosed as it is proprietary to the incumbent.

76. Q: Would the Government consider providing the current Successor Clause with the union workforce?

A: Under Review. The Government is not a party to the CBA. The Government will consider addressing this at the next Industry Day.

77. Q: Would the Government provide the Site Plan with quantity/distance arcs?

A: Yes, building site plans will be provided on the VTL or OSL.

78. Q: Who owns the source code and software programs for equipment operation?

A: The Government has data rights to the source code. Programs are typically written in commercial PLC software; the Government does not have rights to the commercial software.

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

79. Q: Is wireless service available within the production areas and the warehouses?

80. Q: Will the Government provide a copy and a list of the leases and the lessors?

A: Yes. Tenant Use Agreements will be included on the VTL or OSL.

81. Q: Does LCAAP utilize an Enterprise Resource Planning (ERP) system, if so, which system? Is it the property of the Government?

A: The incumbent utilizes an ERP system, however, the specific system is proprietary and will not be disclosed. The Government does not own the system but has technical data rights to software applications, which is expected to facilitate continued use of the same ERP system, should a successor choose to do so.

82. Q: Will Environmental Plans and Permits be provided?

A: The Government intends to include an Environmental Assessment on the VTL or

OSL.

83. Q: Would the Government consider requesting Intellectual Property proposals from Offerors which permit flexibility so that Offerors can tailor to meet Government needs while protecting private investment?

A: The Government is receptive to input from industry on this topic and will consider contractors input when developing the data rights clause.

84. Q: Will White Papers directly relevant to LCAAP be accepted by ACC through

Industry Day #3? Industry Day #2?

A: White papers will be accepted at any point up to the final RFP release. Please be aware that as the Government continues to progress towards finalization of the acquisition strategy and RFP, the likelihood of incorporating industry input diminishes.

85. Q: What are the anticipated Small Business (SB) goals, if any?

A: The Small Business criteria will be outlined in the RFP.

86. Q: Will ARMS agreements count toward the prime’s SB goals even if funding doesn’t flow directly through the prime?

A: No

87. Q: While we assume the responsibility to source raw materials lies solely on the contractor, have there been historic raw material suppliers that are preferred by the Government? Along the same lines, please confirm Federal Acquisition Regulation (FAR) 52.225-11 applies to LCAAP for “buying American” raw materials.

A: Any directed sources will be outlined in the Technical Data Package (TDP). Buy American will be applicable and the pertinent clause included in the RFP.

88. Q: For Industry Day #2, can the plant tour be geared towards the requirements of the Facility Contract highlighting the facilities support systems, equipment, utilities, etc. with access to the interior of those respective buildings?

Answers provided herein are for planning purposes only. Do not rely on this information in formulating a proposal. Information contained within the Solicitation supersedes the information herein.

89. Q: As part of the plant tour, can the facilities and buildings available to the ARMS program be highlighted with interior/exterior visits and definition of maintenance responsibilities, if any, by existing tenants?

90. Q: Is it possible to improve the establishment of the Virtual Technical and On-Site

Libraries to coincide with or prior to Industry Day #2?

A: The Government will take this recommendation into account and explore opportunities to establish VTL capability by Industry Day #2.

91. Q: It is unclear where the QA/QC requirements will fall pertaining to the PWS and/or contractual obligations such as CDRLs. Request the Government please clarify where QA/QC falls to ensure the successful offeror is clearly accountable for all aspects of QA/QC to be measured.

A: The RFP will outline the Quality requirements.

92. Q: Please confirm that each range for each caliber applies to all DODICS within that family and that each DODIC will require a separate unit price?

A: Correct

93. Q: Can the Government identify which modernization projects have been initiated and/or funded by the operating contractor or Government?

A: A listing of recent modernization projects funded by the Government will be provided on the VTL or OSL. Projects funded by the incumbent will not be disclosed as they are proprietary. However, to the extent those projects resulted in new assets, the assets that will transfer to Government ownership at the end of the contract will be provided with the draft RFP.