LCAAP_Industry_Day_2_-_General_Brief.pdf

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FINAL

As of 28 MAR 18

LTC Andrew Lunoff

Jennifer Paul Lake City Army Ammunition Plant (LCAAP) 11 April 2018

Industry Day #2

28MAR18 FINAL

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Agenda

General Briefing – AM

0800: Registration

0830: General Briefing

• Opening Remarks

• Acquisition Milestones

• Acquisition Strategy

• Contract Terms & Conditions

• General Information

• Future Technologies

0915: Modernization / Production Base Support (PBS) Projects Overview

1000: Break

1030: Resume Briefing

• Question & Answer (Q&A) Session

1100: Lunch

Facility Tour – PM

1230: Depart Hotel for LCAAP

• Tour Overview

• Protective Gear Distribution

• Tour Energetic Production Areas

1645: Tour Wrap Up

1700: Depart LCAAP for Hotel

April 11, 2018

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Agenda

Facility Tour – AM

0800: Depart Hotel for LCAAP

• Tour Overview

• Protective Gear Distribution

• Tour Facility & ARMS Areas

1200: Lunch Onsite

Facility Tour – PM

1300: Resume Facility Tour

• Tour Facility & ARMS Areas

1645: Tour Wrap Up

1700: Depart LCAAP for Hotel

April 12, 2018

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Industry Day #2 Objectives

•Provide potential offerors with a program overview, Draft Acquisition Strategy, as well as status of ongoing Modernization projects & facility upgrades

•Provide tour of LCAAP facility and production areas

•Provide attendees the ability to meet potential partners

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

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Disclaimer

• Industry Day is for information and planning purposes only. This does not constitute a formal solicitation or a Request For Proposal (RFP). This is not to be construed as a commitment by the Government in any way

• All items are in planning stages. Milestones, timeframes, and quantities are estimates only. The Government is NOT bound by any of the quantities or information presented today

• Do not rely on information presented today in formulating your proposal

• No Government personnel, except for the Procuring Contracting Officer (PCO), can make any commitments on behalf of the Government

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

• Should an RFP be issued, any information contained within the RFP supersedes the information presented at this Industry Day

• This briefing package, along with all information, questions, and answers that are provided as part of this Industry Day, will be posted to Federal Business Opportunities (FBO) website: www.fbo.gov http://www.fbo.gov/

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Rules of Engagement

•The Government will NOT answer verbal questions during Industry Day briefing

•Questions/Comments must be submitted via the forms provided -Some questions may require additional time for complete response

-Q&As will be posted on FBO website

-Contractors should not submit questions with proprietary information

•Personal Electronic Devices are NOT permitted at any point

•All questions are to be directed to:

-Contracting Officer at jennifer.n.paul.civ@mail.mil

-Contract Specialist at benjamin.j.gillen.civ@mail.mil mailto:jennifer.n.paul.civ@mail.mil mailto:benjamin.j.gillen.civ@mail.mil

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Milestones (Subject to Change)

Tentative Acquisition Milestones

INDUSTRY

DAY #1

INDUSTRY

DAY #2

DRAFT RFP

RELEASE

INDUSTRY

DAY #3

FINAL RFP

RELEASE

OCT 17

APR18

JUN 18

JUL/AUG 18

NOV 18

PROPOSALS

DUE

DISCUSSIONS

(IF NEEDED)

FINAL

PROPOSALS

DUE

CONTRACT

AWARD

JAN 19

MAY 19

JUN 19

SEP 19

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Draft Acquisition Strategy

Requirement

• Production of 5.56mm, 7.62mm, Cal .50, Cal .30, and Cal .22 Small Caliber

Ammunition and the Operation, Maintenance, and Modernization of LCAAP

Procurement Strategy

• Best Value Tradeoff Source Selection

• Restricted to U.S. and its outlying areas

Facility Security Clearance (FCL)

• The operating contractor will be required to obtain a Secret FCL

- It is anticipated that the next contract will require the generation, handling, and storage of classified material up to Secret

Technical Data Packages

• Ammunition must be built to U.S. Military Technical Data Packages (TDPs)

• Drawings for TDPs are restricted and available only to firms registered with

US/Canada Joint Certification Program (JCP)

Acquisition Strategy in Staffing with PEO AMMO

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Tentative Acquisition Strategy

Contract Type

• Single Award Delivery Order Contract

• Firm-Fixed Price with Economic Price Adjustment (EPA)

- Both Requirements and Indefinite Delivery Indefinite Quantity (IDIQ) Contract Line Item Numbers (CLINs)

- Cost for base support operations included in ammunition unit prices

Performance Work Statements (PWSs)

• The following PWSs are under consideration to be either indirectly or directly funded:

Facilities, Plans, Strategies, and

Analyses 8 Utilities and Energy 15

Contract Production Delivery

Reporting

On-site Government Personnel

Support 9 Government Property 16

Armament, Retooling, and

Manufacturing Support (ARMS)

3 Safety 10 Material Management 17 Contract Start-up

4 Security / Anti-terrorism 11 Occupational Health Clinic 18 Support of On-Site Government

Ballistic Service Office

5 Fire and Emergency 12 Mowing of Vegetation 19 Cyber Security

6 Maintenance 13 Mail Services 20 Army Family Housing

7 Environmental 14 Propellant Risk Mitigation

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Tentative Acquisition Strategy

Contract Structure

• One Contract

• Period of Performance: 10 years (FY20-29, FY30 Transition)

- Base Period: 5 years

- Option Period: 2 years (exercised at time of award)

- Award Term: 3 years

• Current Production Contract expires for ordering purposes on 30 SEP 2019

• Current Facility Contract expires 30 SEP 2020

• One year period between expiration of production and facilities contract will allow for final deliveries of product and contract transition

Award Term Plan (ATP)

• ATP criteria under review

• Initial draft to be posted by Draft RFP Release

• Government will conduct performance evaluation in accordance with ATP to determine whether an offer is made to extend the contract for up to an additional 3 years

• Written notice of binding acceptance/rejection of any potential award term decision (DEC 2024) required in MAR 2024

FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY 30

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

Follow-on

Contract

LCAAP Contract

Initial Award 5 + 2

Base Award 2 Year Option 3 Year Award Term

Transition Eval 1 Eval 2 Eval 3 Eval 4/AT Decision

Transition

Contract Expires for Ordering Purposes

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Anticipated Contract Terms and Conditions

National Technology and Industrial Base (NTIB) Restrictions

• The following are restricted to the NTIB

- Magnesium Powder

- Nitrocellulose (except that used for M60 HPT and M118 LR)

- Propellants (with exception of Propellant Reloader 15)

- Ammunition Containers

- Comp A-4

- All production work is required to be performed at LCAAP, with exception of

.22 caliber

Economic Price Adjustments (EPAs)

• Materials

- Copper

- Zinc

• Currency Fluctuation

- Canadian Dollar

- Norwegian Krone

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Anticipated Contract Terms and Conditions

Government Furnished Material

• Ammo Cans

- M2A2 (pursuing consolidation)

- M548

• Weapons and Spare Parts

• Reference Ammunition

Nitrocellulose (NC)

• Supply of NC to support LCAAP production of small caliber ammunition is restricted to the US & outlying areas

• Current Government contract for NC facility runs through January 2022

• The Government is considering an EPA/reopener for NC or propellant to account for potential price adjustments

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Anticipated Contract Terms and Conditions

20mm Requirement

• Successor contractor will be required to continue medium caliber primer component production, ammunition support operations, and provide 20mm

M52A3B1 electric primers to medium caliber contractors

• The Government will provide the TDP and dated process tech data to which it has rights

• Support functions include:

- Production of M52A3B1 electric primers

- Blending of pyrotechnic compounds

- Performance of ballistic testing of 20mm components and cartridges

- Storage and transportation of energetic materials and other supplies

- Other support related to processing, logistics, and engineering incidental to these requirements.

• The Government will own tech data for 20mm at the end of the contract

• Support continuity requirement will be articulated in LCAAP prime contract

• Specific terms will be defined in 3rd party contracts under ARMS PWS

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Anticipated Contract Terms & Conditions

Ordering

• Ordering periods will correspond to the Government’s fiscal year

• Delivery Orders (DO) will be placed using established price matrices

Contract Delivery Schedule

• Each production order will have a 24 month Not to Exceed (NTE) delivery date beginning on the first day of ordering period, regardless of the date of award

• Contract delivery schedule will be presented in six month delivery periods

• Monthly forecasts to be provided on a per Department of Defense Identification

Code (DODIC) basis

• If there are actual delivery quantity variations from the contract delivery schedule, the contractor will propose a re-baselined schedule at the end of the delivery period

- Delinquent quantity will be assessed a standard consideration charge

- Will not absolve the contractor from negative Contractor Performance Assessment

Reporting System (CPARS) ratings

Production Award Award Date NTE Date

DO 0001 - Mod 1 30-Oct-19

DO 0001 - Mod 2 30-Mar-20

DO 0001 - Mod 3 30-Jul-20

DO 0001 - Mod 4 30-Sep-20

30-Sep-21

Delivery Order 0001 - FY20

Ordering Period: 01 OCT 2019 - 30 SEP 2020

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Anticipated Contract Terms & Conditions

Pricing

• Volume level unit prices will be proposed for all DODICs broken out by cartridge (Ctg) and pack out configuration

• Price of newly awarded quantity will always reflect the current cumulative family total of a delivery order

• If a new order changes the quantity range of a cartridge family, the price of all previously awarded quantity (Qty) will be adjusted (downward only)

Note: Projected quantity ranges are estimates only and should not be construed as a commitment on behalf of the Government

Range Ctg, 5.56mm Family Ctg, 7.62mm Family Cal .22 Family Cal .50 Family

Qty From Qty To Qty From Qty To Qty From Qty To Qty From Qty To

1 150,000,000 300,999,999 20,000,000 50,999,999 200,000 749,999 10,000,000 19,999,999

2 301,000,000 525,999,999 51,000,000 88,999,999 750,000 1,499,999 20,000,000 29,999,999

3 526,000,000 750,999,999 89,000,000 126,999,999 1,500,000 2,999,999 30,000,000 39,999,999

4 751,000,000 975,999,999 127,000,000 164,999,999 3,000,000 4,299,999 40,000,000 54,999,999

5 976,000,000 1,320,000,000 165,000,000 230,000,000 4,300,000 6,000,000 55,000,000 75,000,000

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Anticipated Contract Terms & Conditions

Pricing Example

• All quantity ranges/prices are for illustration purposes

• 30 OCT 19, Government issues DO for 45M cartridges of A059 at $0.50 each

• 02 JAN 20, Government issues modification to same DO for 40M cartridges of AA33

• As both DODICs are within 5.56mm family, both of their quantities count towards the cumulative family total, resulting in total family quantity for that DO of 85M cartridges

• 40M cartridges of AA33 are awarded at unit price of $0.34 each and price for initial 45M cartridges of A059 awarded is adjusted from $0.50 each to $0.48 each

Quantity

(millions) Unit Price

Quantity

(millions) Unit Price

1 1-50 0.50$ 1-50 0.39$

2 51-99 0.48$ 51-99 0.34$

3 100-200 0.46$ 100-200 0.29$

DODIC A059 DODIC AA33

Range

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Anticipated Contract Terms & Conditions

Contract Financing

•Progress Payments are planned for production orders predicated on an adequate accounting system

•Performance Based Payments are planned for direct funded projects

Commercial Utilization

•Blanket use of LCAAP may be allowed for commercial use with PCO approval, consideration, and revocation terms

•Consideration from the contractor shall be used at the discretion of the Government for investments in the facility to include maintenance

•Government is considering including an evaluation factor for offeror’s compensation to the Government for use of facility

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Anticipated Contract Terms & Conditions

Ownership and Data Rights

•Ownership and rights for all Capital & Intellectual Property vests in the Government for:

-All Government furnished property, modifications to Government furnished property, contractor acquired property, and intellectual property

Safeguarding Permanent and Enduring Records

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

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Anticipated Contract Terms & Conditions

Indemnification

• Clause indemnifies contractor against claims by third persons for death, personal injury, or loss of, damage to, or loss of use of property

- Applicable only to claims or losses resulting from “unusually hazardous” risk when the claim or loss is not covered by insurance

- Generally covers two types of risk – explosive and environmental

- Excludes loss or damage caused by willful misconduct or lack of good faith on part of the contractor’s principal officials

• Requests for Indemnification will be considered for this acquisition

- Offerors will be required to prepare and submit a cost justification package

• Secretary of Army approval is required to include indemnification clause, Federal Acquisition Regulation (FAR) 52.250-1, and should not be assumed to be guaranteed

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

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ARMS Tenants

Armament Retooling and Manufacturing Support (ARMS)

• Scope of work provides for commercial, third party, and tenant use of facilities, with prior Government approval

• Operating contractor will be required to retain any ARMS agreements beyond 30 SEP 2020

• Current ARMS agreements:

Company Industry Date of Expiration

American Marksman Federal Contractor 07 AUG 18

All Copy Products Printing & Mailing 30 SEP 18 dba Temp Help Professional Services 30 SEP 18

MAST Technology Manufacturing 30 SEP 18

Adecco, N.A. Staffing Services 30 SEP 18

OATK dba Bus. Develop. Professional Services 01 OCT 18

GBA General Contractor 30 NOV 18

Elite Cuisine Food Services 31 DEC 18

OATK dba Comm. Sales Manufacturing 02 FEB 19

Schwoeppe Machine Manufacturing 02 FEB 19

Fastenal Company Supply Chain 07 FEB 19

IAMAW Labor Union 30 JUN 19

ECC Professional Services 31 JUL 19

MC Power General Contractor 30 SEP 19

Bullseye International Laundry Services 30 SEP 19 dba First Impressions Professional Services 30 SEP 19

Federal Cartridge Co. Sporting Products 30 SEP 20

CMG General Contractor 31 MAR 21

BDI Sales 01 SEP 22

20mm L.A.P. (OATK) Manufacturing 30 SEP 24

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General Information

System for Award Management (SAM)

•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 SAM registration process http://www.sam.gov/

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General Information

Virtual Technical Library (VTL) -Access restricted to the Data Custodian of firms registered with JCP and an active DD 2345 form -See FBO for additional details on obtaining an account -Large volume of documentation under review for posting

On-Site Library (OSL) -OSL to be activated by JUN 2018 -Access restricted to U.S. and Canadian citizens of firms registered with JCP and an active DD 2345 form -Access may be limited to certain number of individuals per company -Additional details will be made available via FBO

For information on JCP certification process, please visit:

https://public.logisticsinformationservice.dla.mil/PublicHom e/jcp/default.aspx https://public.logisticsinformationservice.dla.mil/PublicHome/jcp/default.aspx

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Questions

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

•Comments/questions should be submitted via Q&A form on FBO website by 27 APR 18 and directed to:

-Contracting Officer at jennifer.n.paul.civ@mail.mil

-Contract Specialist at benjamin.j.gillen.civ@mail.mil

•Industry should provide rationale for any comments or concerns mailto:jennifer.n.paul.civ@mail.mil mailto:benjamin.j.gillen.civ@mail.mil

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Conclusions

•All information provided today is TENTATIVE and subject to change

•All information regarding LCAAP acquisition, to include future industry day announcements, draft solicitation, Q&A will be posted on FBO website

•Search FBO site for Solicitation Number:

W52P1J-17-R-0141

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

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Potential Future Technology Efforts

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Potential Future Technologies

Materiel

Development

Decision (MDD)

Preliminary

Design Review

(PDR)

Milestone B

(MS B)

Critical Design

Review (CDR)

Milestone C

(MS C)

Fielding

Decision (FD)

Lightweight Small Caliber Ammunition (LSCA) Reduce Warfighter burden

One Way Luminescence (OWL) Significantly reduced signature preventing threat from tracing round back to shooter while providing Enhanced Performance Round (EPR) effects in the tracer

Enhance Warfighter Survivability & Enhance Lethality

Lighten Warfighter Load

Reduced Range Ammo (RRA) Reduce maximum range while maintaining tactically relevant training range Improve Warfighter Training

Advanced Armor Piercing (ADVAP) Provide overmatch capability vs. broad spectrum of hard targets Increase Lethality

All Purpose Tactical Cartridge (APTC) Improve .50 caliber capability to include overmatch capability against broad spectrum of targets; implement LSCA and OWL Increase Lethality / Lighten Warfighter Load / Enhance Warfighter Survivability

Next Generation Squad Automatic (NGSAR) Ammunition Provide leap ahead performance at squad level including improved overmatch against a broad spectrum of targets Increase Lethality / Lighten Warfighter Load / Enhance Warfighter Survivability

Plan / Facilitize for Production

Production

Research & Development

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

7.62mm RRA

7.62mm OWL

7.62mm LSCA

7.62mm ADVAP

5.56mm OWL

5.56mm ADVAP

.50 CAL RRA

.50 CAL APTC

NGSAR

20192018 2020 2021 2022 2023 2024

New Contract Award Facility Control

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Next Generation Squad Weapon/Ammunition

Three Requirements directly related to ammunition:

1. KPP 3 (Accuracy/Dispersion)

2. KPP 5 (Ammunition Weight)

3. KSA 8 (Ammunition Lethality)

General Purpose Round

Special Purpose Round

Acronyms

CDD – Capability Development Document DT – Developmental Testing

CPD – Capability Performance Document LUE – Limited User Evaluation

FUE – First Unit Equipped EUA– Emergency Use Authorization

S&T – Science & Technology PQT – Prototype Qualification Test

Tech – Technology OA – Operational Assessment