LCAAP_Industry_Day__2_Questions_and_Answers.pdf

05 June 2018

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.

Industry Day #2 Questions & Answers

General Questions:

1. Q: When the production order is decreased out of normalcy, how is the excess manpower managed?

A. The management of manpower is at the sole discretion and responsibility of the operating contractor.

2. Q: What is the production ratio of commercial ammunition for the last three (3) years?

A: Commercial production is proprietary information and will not be released.

3. Q: Will any of the work being done by McKinsey over the last four (4) years to reduce PWS costs be incorporated into the Lake City RFP?

A: Yes, the Government has taken the McKinsey analyses and other Government internal studies into consideration for opportunities to reduce costs where possible.

4. Q: Will the Government discuss the current plan for inclusion of a Small Business goal for the

LCAAP opportunity? Is there a percentage Small Business goal planned?

A: The Small Business evaluation criteria, to include Small Business goals, will be addressed in the

RFP.

5. Q: Will the Government assess the contractor’s efficiency in meeting their Small Business Plan during the execution of the contract?

A: Yes, the Contractor’s ability to meet the small business goals will be assessed during contract execution and included in the CPARS assessment.

6. Q: On Slide 8: Procurement Strategy and Slide 12: Nitrocellulose, please define “Restricted to U.S.

and its outlying areas.”

A: FAR Part 2 defines “outlying areas.”

7. Q: Slide 11, NTIB Restrictions: “All production work is required to be performed at LCAAP, with the exception of .22 caliber.” Should an exception for .50 Cal MK211 projectiles (manufactured in Norway) be added to this statement?

A: Load, Assemble, and Pack (LAP) is restricted to LCAAP. As the MK211 projectile is manufactured in Norway, the projectile is not restricted, but LAP of DODICs that include the MK211 projectile will be restricted.

8. Q: Slide 13, 20mm Requirement: “The Government will own tech data for 20mm at the end of the contract.” What contract is being referred to? The current LCAAP contract? Other?

A: The industry day chart referred to 20mm M52A3B1 electric primer manufacturing technical data.

The Government does not own, nor is expected to own, the current manufacturing processes for 20mm electric primers, however, the Government will provide the electric primer TDP (drawings and specifications) and manufacturing process information that it owns from 2000. The Government intends to own the 20mm electric primer manufacturing technical data in accordance with the terms and conditions of the LCAAP contract to be awarded on 01 October 2019.

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.

9. Q: Slide 14, Delivery Schedule: Does the 24 month NTE example apply for all the production periods, or just year 1?

A: The timeframes in the example apply to all delivery orders. A production order in a particular fiscal year will have a NTE delivery date of 30 September of the following year.

10. Q: Could the Government provide a chart with volumes by caliber, similar to briefing chart #8 from Industry Day #1, updated with volumes for FY2017 and an estimate for FY 2018.

A: The Government will update Chart #8 from Industry Day #1 and post it to the VTL.

11. Q: Could the Government provide a chart with link volumes by caliber, similar to briefing chart #8 from Industry Day #1, updated with volumes for FY2017 and an estimate for FY 2018?

A: The Government will post this information to the VTL.

12. Q: On slide 13 of the Industry Day #2 charts, the Government showed the requirements to support 20mm production, including production of M52A3B1 electric primers. Could the Government provide a history of primer volume requirements in support of 20mm production?

A: The Government will post historical 20mm production volumes to the VTL.

13. Q: Which components or products are represented by the Canadian Dollar Currency Fluctuation clause?

A: The MK263 cartridge.

14. Q: Will the Government provide a funding breakdown of the FY18 $49.6M modernization project not yet awarded?

A: The Government does not plan to provide a funding breakout for FY18; however, the list of projects anticipated to be awarded in FY18 was provided in the Modernization brief.

15. Q: Slide 10: As the Government deliberates on the final Award Term Plan, is the Government still considering a period of performance which could result in a potential award term, including options that extend beyond the current plan of ten years?

A: No. The strategy communicated at Industry Day #2 has been approved.

16. Q: Successful contractors will be required to continue medium caliber support functions, including primers. What are the requirements for the contractor maintain medium caliber link production for 20mm, 25mm, 30mm, and 40mm?

A: There is no requirement to maintain medium caliber link production at LCAAP.

17. Q: Regarding the Government’s Industry Day #1 Question and Answer #63 from last November which addressed the Award Term Option. How will the Government assure that a prospective contractor doesn’t submit unreasonably low pricing for the Award Term option, and then simply walk-away when the Government desires to exercise the option?

A: If an Offeror chooses to propose unreasonably low pricing for the Award Term option, unbalanced pricing would be assessed. In accordance with FAR 15.404-1, Unbalanced Pricing, a proposal may be rejected if the PCO determines the lack of balance poses an unacceptable risk to the Government.

18. Q: The Government notes in Q&A #17 that the incumbent has specific obligations under an established Contract Start-Up PWS. Does the Government plan to provide the specifics of this contractual obligation to prospective contractors?

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.

A: The Government will post the Contract Start-Up PWS to the VTL.

19. Q: The Government notes in their Q&A list the existence of a Collective Bargaining Agreement.

How does the Government plan to address specifics of this CBA including expiration, current terms, successor clauses, etc.?

A: The Government will provide the current CBA as an attachment to the solicitation.

20. Q: Is there a known Government Second Source Acquisition Strategy to include items such as quantity and round type determination? Will the Government share this with prospective Lake City contractors?

A: The Government strategy is an approximate 85%-15% production breakout between Lake City and Second Source, respectively, for the IDIQ DODICs.

21. Q: What are the current annual projections for Government funding of the Army Industrial Base Program through the end of the period of performance?

A: The following is the OSD comptroller website information for the PresBud 19-23 funding information: http://comptroller.defense.gov/Budget-Materials/fy2019Army/

22. Q: Regarding the Government’s Industry Day 1 Question and Answer #81 which addressed the ERP system currently in use at Lake City, the Government identifies that it has ownership of technical data rights to the ERP software applications. Does the Government plan to provide comprehensive system architecture documentation, and system operational instructions including input and output documentation to all prospective contractors?

A: Under Review

23. Q: Will current state baselines be established and provided for the Environmental PWS so that a prospective offeror can determine potential environmental liabilities?

A: The Government will include a Baseline Environmental Condition Assessment (BECA) on the VTL.

24. Q: Will the Government provide a complete VTL taxonomy to show what documentation will be provided to prospective bidders? Can the Government provide this soon?

A: The Government has provided an index on the VTL to assist potential offerors in locating information. As documents are added, the index will be updated accordingly.

25. Q: To what extent will “secret level” security clearances be required for the New Operating Contractor on Day 1?

A: Contractors are required to have a valid FCL at time of contract award in order to access classified information.

26. Q: Will prospective offerors be provided with current, accurate, and complete cost estimates for supporting all facets of the current ARMS contract?

A: It will be up to the operating contractor to determine the resources required to operate the ARMS program. ARMS agreements that the new operating contractor will assume will be provided on the

VTL.

27. Q: Will the Government be selecting the same four PWS requirements for proposal evaluation purposes?

A: Evaluation criteria will be specified in the Draft RFP.

http://comptroller.defense.gov/Budget-Materials/fy2019Army/

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

28. Q: Will a current state baseline be provided for the Enterprise Information System so that a bidding contractor can clearly understand the current IT infrastructure and what elements are available under Government ownership or data rights?

29. Q: Will a comprehensive technical configuration audit be performed for all TDPs prior to facility turnover?

A: A thorough TDP certification process is being conducted in order to update the TDPs prior to solicitation release.

30. Q: Given that Modernization of the Lake City facility is an important Government strategic objective, will the past performance evaluation factor require recent and relevant performance history specifically related to modernization of ammunition manufacturing facilities?

31. Q: Given that Commercialization of the facility is an important Government strategic objective, will the past performance factor require recent and relevant performance history specifically related to commercial ammunition contracts?

32. Q: Since integration of future developmental SCA capabilities is a strategic objective, will the past performance volume require input specifically related to the development and introduction of new SCA calibers and round types?

33. Q: Since years 8 to 10 of the contract would be contingent upon a bi-lateral option, how will the Government ensure price evaluation for those years is based upon not only reasonable, but probable pricing for those years?

A: The Government will review the pricing for all years. As stated above, if an Offeror chooses to propose unreasonably low pricing for the Award Term option, unbalanced pricing would be assessed.

In accordance with FAR 15.404-1, Unbalanced Pricing, a proposal may be rejected if the PCO determines the lack of balance poses an unacceptable risk to the Government.

34. Q: Since years 8 to 10 of the contract would be contingent upon a bi-lateral option, would the Government evaluate the TEP only on years 1 to 7 prices and apply a standard escalation factor for all bidders for years 8 to 10, since those prices are not really Firm Fix Prices?

A: The Government will require Firm Fixed Prices (FFPs) for all 10 years and the pricing for all years will be evaluated in the Total Evaluated Price (TEP).

35. Q: What is the Government ownership on dies, equipment, and IP on Medium caliber links?

A: Medium Caliber links does not fall under the scope of this contract. However, to the extent prospect offerors wish to purse commercial or 3rd party work, the Government does own the link dies, equipment and IP.

36. Q: What is the number of round (approximate) that is used annually for training purposes only?

A: Training and combat consumption information cannot be made publicly available; however, Industry Day #1 charts did provide historical Government orders per year.

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

37. Q: Will the RFP include requirements for incorporation of future efforts listed on the future potential technologies slide 26?

A: The Government anticipates evaluating offeror’s ability to incorporate new technology into the plant. Evaluation criteria will be specified in the Draft RFP.

38. Q: Will projected quantity splits for the M855A1 and the M80A1 round between Lake City and the Second Source be provided to prospective offerors?

A: Specific EPR breakouts will not be provided, but the Government strategy is an approximate 85%- 15% production breakout between Lake City and Second Source, respectively.

39. Q: Will the Government allow a prime contractor to subcontract with a 3rd party operator for a portion of the facility? e.g. 5.56mm manufacturing A: Subcontracting is not prohibited.

40. Q: Will Government authorization be required if the selected operating contractor desires to novate the contract to a foreign 3rd party after contract award?

A: This is prohibited as the acquisition is restricted to the U.S. or its outlying areas.

41. Q: Will the New Operating Contractor be able to renegotiate the existing ARMS agreements?

A: The operating contractor is bound to the existing agreements at time of award; however, the operating contractor can attempt to renegotiate terms with a tenant.

42. Q: Must the New Operating Contractor utilize the remaining WIP and raw material inventory that remains on October 1, 2020?

A: The Government does not own the work in progress (WIP) or raw materials. Use or purchase of WIP could be negotiated as part of transition, but is not required by the Government.

43. Q: Will the calculation of the TEP include pricing for the 3 year award term given that the award of these years is based upon a bilateral agreement?

A: Yes, in order for the Award Term prices to be binding, they have to be evaluated.

44. Q: Slide 14: Will a 12 month extension to Delivery Order 0001 NTE be provided if a new contractor is chosen as the successful bidder? Current information indicates a new contract would only have 12 months to complete DO 0001 requirements based on assuming operation on October 1, 2020.

A: No, a 12 month extension to DO 0001 for a new contractor will not be provided. A production order in a particular fiscal year will have a NTE delivery date of 30 September of the following year.

45. Q: Slide 14: “Delinquent quantity will be assessed a standard consideration charge.” How is a standard consideration charge calculated?

A: This information will be provided with the Draft RFP.

46. Q: Slide 17: “Government is considering including an evaluation factor for offeror’s compensation to the Government for use of facility.” Is the term compensation considered the same as consideration?

A: Yes. The terms consideration and compensation are one in the same. Both refer to something of value owed to the Government.

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: Slide 18: “Ownership and right for all Capital and Intellectual Property vests in the Government for all Government furnished property, modifications to Government furnished property, contractor acquired property, and intellectual property.” As stated, will the Government provide the intellectual property, such as run rates, tool usage, and similar types of intellectual property, related to current GFM equipment and contractor acquired property?

A: Actual run rates and toll usage is proprietary to the incumbent and will not be provided. The Government will provide equipment operating procedures and specifications on the VTL.

48. Q: Will the CBA be included in the RFP? If so, will the incoming contractor be required to adhere to the terms of the CBA, or will it be provided as a reference only?

A: The Government will provide the current CBA as an attachment to the solicitation.

49. Q: Does the Government review what OATK considers “sensitive” prior to the Industry Day tours?

A: The Government walks through the facility prior to the industry day tours to validate that only proprietary information is covered. Any concerns are addressed directly with the operating contractor.

50. Q: When will the OSL be established and will more information be provided to the VTL?

A: The Government is targeting establishment of the OSL by end of June 2018. A significant amount of additional data/information was uploaded to the VTL in May 2018, with follow on documents being added throughout the solicitation process. The Government recommends industry monitor the VTL site as well as FBO for the latest information regarding this solicitation.

51. How will access to the OSL be provided to industry?

A. Directions on how the OSL can be accessed will be posted to FBO.

Security

52. Q: Who runs the security guards at LCAAP?

A. All requirements associated with security guards are defined in the Security PWS, to include security guard staffing, which is the responsibility of the operating contractor.

53. Q: In section 2.19, recommend additional detail be included on LCAAP posts, patrols and other duty assignments. The draft PWS provides this information will be made available after contract award.

However, details related to the level of support required would help to fully understand costs and formulate a detailed response to the RFP.

A: The Plant Protection Plan (PPP) will be provided in the OSL.

54. Q. In Section 2.21, we recommend changing from “NLT 1000 hrs. the next business day” to NLT 24 hours after the occurrence of the event or situation.

A: The PWS will be updated to clarify that a summary of the event will be required NLT 1000 hours, with a written report to follow.

55. Q. Recommend the costs associated with section 2.22.2, Increasing and maintaining FPCON levels Charlie and Delta are not a part of this PWS. The contractor would still be responsible for executing the elements detailed in this section.

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.

A: An increase in staffing to Charlie or Delta should not be included in the Security PWS cost. IAW paragraph 2.19, the contractor shall staff the security force to meet the manning requirements for FPCONs NORMAL/ALPHA/BRAVO.

56. Q: Will the Government provide the current Plant Protection Plan (PPP) which is provided as a CDRL submittal? This is necessary to properly assess potential cost factors providing the incumbent a significant advantage due to their past experience in securing the facility.

A: The PPP will be provided in the OSL.

57. Q: Is it the Army’s intent to issue CAC cards to all operating contractor employees (Ref Para 2.5.2)?

A: No, only those contractor employees requiring access to Department of Defense (DoD) IT Networks as part of their duties will be required to get a CAC.

Maintenance

58. Q: Can the Government provide the details and the capabilities of the Government General Fund Enterprise Business System (GFEBS)?

59. Q: Are there any other maintenance software/program utilized at LCAAP for scheduling, tracking and reporting maintenance performed on Government assets, other than the Government General Fund Enterprise Business System (GFEBS)? If so, would a new contractor have access and the ability to utilize this system and data entered into the system.

A: Leading to lean is currently being used at LCAAP and the data will be accessible to the new operator should it choose to license the software.

60. Q: Will the Government share the records of maintenance performed on GFE and facilities?

A: The Government will provide maintenance records on the VTL.

61. Q: Will the Government provide the maintenance logs for activities detailed in the draft Maintenance PWS (For example; Waste Treatment plant, electrical systems, etc.)

62. Q: Will the Government provide the maintenance logs for GSA vehicles used within LCAAP?

63. Q: Will the Government provide the Maintenance Plans delivered to the Government as part of the

CDRL requirement?

A: Maintenance procedures are posted to the VTL.

64. Q: Will records of inspections be made available?

65. Q: Is the $1M (Para. 4.1) to be in addition to any shared maintenance related to the proposed model of a percentage investment based on total plant revenue?

A: The $1M would be in addition to any consideration as a result of commercial production.

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.

66. Q: Please provide clarification on what constitutes “non-production related equipment” (Ref Para.

4.1). For example, would a switchgear that supports a building that houses both production areas and office areas be considered production related?

A: No, the switchgear referenced would not be considered production related and it may qualify as a project under major maintenance. Should the Contractor propose a project that the Government does not classify as major maintenance, the Government reserves the right to disapprove the project.

67. Q: It is understood that the cost of the performance of the indirect PWS’s is to be included in the ammunition price. Will the $1M investment, along with its profit and overhead, also be included in the ammunition price, or will the operating contractor be expected to fund it independently?

A: Offerors can account for the required investment in whatever manner it chooses.

68. Q: Will the operating contractor have sole discretion as to how the $1M will be invested (Ref Para 4.1)?

A: No, the Government will have sole discretion of the maintenance funds being invested (reference paragraph 4.2).

69. Q: Paragraph 3.6.3 includes maintenance of Oil Circuit Breakers. LCAAP has electrical circuit breakers that are too fragile to service. Would the Army consider adding a list of circuit breakers where this requirement will apply?

A: Handling of circuit breakers which are too fragile to service shall be identified and addressed in the contractor’s maintenance plan.

70. Q: Will the operating contractor be required to enter data into GFEBS considering that it may be redundant with their own management systems (Ref Para. 2.10)?

A: Yes. Contractor will be required to meet the requirements within the PWS.

Utilities and Energy

71. Q: It was communicated at Industry Day that energy usage rates and facility schematics/utility distribution drawings would be provided. For what length of time and with what resolution will the usage rates be provided? i.e. time (monthly, quarterly, yearly), total or at different metering points?

A: This information will be posted on the VTL prior to the DRFP.

72. Q: What is the in service date of the Central Plant Compressed Air Facility?

A: The mechanical compressor replacement was accepted by the Government in October 2017.

73. Q: What is the in service date of the HVAC Central Chiller Plant?

A: The Central Chiller Plant Start-up occurred in December 2016.

74. Q: How many Air Compressors are located in Facility outside of Main Air Compressor Building?

A: Virtually every production or process handling and treatment facility on LCAAP has an air compressor located in the facility. The compressed air plant located at building 1 is a centralized plant that provides compressed air to the main production facilities on the installation.

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.

75. Q: How many Chillers are located in Facility outside of Main Chiller Building?

A: There are also chillers located at buildings 1, 3, 6, 65, and 83A.

76. Q: What is the monthly energy consumption/usage at all metering points for the last 24 months?

A: Energy usage data is still being gathered. Any information will be provided on the VTL.

77. Q: What is the monthly peak energy demand at all metering points for the last 24 months?

A: Energy usage data is still being gathered. Any information will be provided on the VTL prior to the Draft RFP.

78. Q: Will the Government provide the inspection reports on utility systems? This is necessary to properly assess potential cost factors, which the incumbent would have an advantage from their experience in the facility.

A: The Baseline Facility Assessment will inform offerors of the general condition of the utility systems.

79. Q: Will data entered into the Army Energy and Water Reporting System (AEWRS) be made available to potential bidders?

A: Energy usage data is still being gathered. Any information will be provided on the VTL prior to the Draft RFP.

80. Q: Can the Government provide an overview, the capabilities, and the user rights for the Energy Management System utilized at the LCAAP?

A: The existing Metasys system has 62 network control/automation engines integrated to it with approximately 58,000 points/objects online. It is used for energy consumption and cost management, as well as HVAC monitoring and control (both critical and non-critical), lighting controls, electrical quality monitoring, water production monitoring, steam production monitoring, remote boiler monitoring, alarming, scheduling, maintenance planning, etc. It is a very large and robust system that the operating contractor and depends on for its daily operations.

81. Q: Will the Government provide metering configuration points and data as metered?

Environmental

82. Q: Does LCAAP currently meet the ISO 14001 standard for an Environmental Management System?

A: Yes

83. Q: Do the existing building roofs contain asbestos? What is the age of the main Building Roofs?

A: Unknown but it is possible some of the roofs may contain asbestos as the age on the main building roofs span from 1941 to current.

84. Q: Has all asbestos been removed from Steam Lines throughout Facility?

A: No

85. Q: Is there lead containing Paint on the Water Storage Tanks?

A: Yes, the exterior coating.

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.

86. Q: Will Environmental permits be posted to the VTL?

A: The permits will be an appendix to the BECA.

87. Q: Can any details regarding the Water Treatment Plant be posted to VTL?

A: The Government will provide information associated with the Water Treatment Plant on the VTL.

All Cybersecurity questions and answers will be posted to the Virtual Technical Library.