HSAAP Industry Day 2 QA.pdf

# Question Answer

1 Does the Government intend to keep all existing ARMS tenants in place?

The successful offeror will be required to abide by the terms of the HSAAP ARMS Tenant Use Agreements (TUA) in existence and effective beyond 30 September 2022.

2 Will ARMS TUAs be provided to bidders?

ARMS TUAs that will be required to be maintained by the successful awardee will be provided as an attachment to the RFP.

Will the Government consider hosting an international ARMS tenant at Holston?

The Government will consider hosting an international ARMS tenant at Holston.

Has there been any commercial explosive production at Holston? Will you be able to provide an order of magnitude you've seen in recent history for commercial sales?

Yes, there has been commercial explosive production at Holston in the past;

however, historical information regarding commercial production at HSAAP is proprietary and cannot be released.

How heavily will the commercial utilization plan be weighted in the evaluation criteria?

Refer to the draft RFP for the evaluation criteria the Government currently intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

Based on the current backlog and ongoing modernization projects, when does the Government expect to allow commercial production?

Upon operational control, the contractor may use the HSAAP facility and its equipment in support of commercial orders on a non-interference basis.

Can you further explain the 20 year award structure? Specifically the two unevaluated option periods?

The contract will consists of a five-year base period, an evaluated five-year option exercised at time of award, and two additional unevaluated five-year option periods. Therefore, the total potential ordering period is 20 years. The Government will have the unilateral right to execute option periods in the future.

Pricing for the two five-year unevaluated option periods (i.e. year 11-20) will not be required with the initial RFP.

8 Is there a plan to down select between initial and final proposals?

The Government does not intend to utilize a phased evaluation approach. Refer to the draft RFP for the evaluation criteria the Government currently intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

Is there a plan for how you will adjust pricing in the RFP for the unknown of commercial sales?

The Government does not intend to adjust prices within an ordering period based on actual overall facility volume. Refer to the draft RFP for the evaluation criteria the Government currently intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

10 Does the Government plan to evaluate key personnel?

Refer to the draft RFP for the evaluation criteria the Government currently intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

Transition and readiness are priorities for the Government. How does the Government plan to evaluate transition in and start up plans?

Refer to the draft RFP for transition requirements and evaluation criteria intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

Has the Government considered including energetics production to the past performance factor in lieu of explosives production?

Refer to the draft RFP for the evaluation criteria the Government currently intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

Will the Government be requiring a submittal response for a hypothetical project? If so, will the Draft RFP have this project requirement?

Refer to the draft RFP for transition requirements and evaluation criteria intends on utilizing. Draft RFP evaluation criteria is subject to change and will be superseded with the final RFP.

We understand there will be another on-site Industry Day #3 in January 2022 during which facility tours will be conducted; however, will the Government allow for additional on-site visits either prior to or after the final RFP release?

An announcement for on-site facility tours the week of January 31, 2022 has been posted to sam.gov. Additional site tours can be provided before and/or after release of the final RFP at the request of industry.

15 Will the Government offer indemnification under this contract?

Requests for Indemnification under Public Law 85-804 will be considered for this RFP to cover unusually hazardous risks. Refer to the draft RFP for indemnification requirements.

16 If we bring existing IP, does that transfer to the Government?

The Government intends to establish Unlimited Rights to all IP developed and/or utilized during execution of the contract to support Government production an plant operations. Refer to the draft RFP for specific language regarding IP rights.

How does the spare part and facility maintenance project relate to the maintenance for PWS?

This project is focused solely on procuring critical spare parts.

18 How do you gain access to the virtual library?

Direction for obtaining access to the Virtual Library can be found on sam.gov under solicitation W52P1J-19-R-0142.

19 Will an Industry Day #2 attendee list be made available?

A list of all companies and individuals who attended Industry Day #2 is available on sam.gov.

How do contractors gain access to the HSAAP Technical Data Packages and Virtual Technical Library?

Direction for obtaining access to the Virtual Library can be found on sam.gov under solicitation W52P1J-19-R-0142. Technical Data Packages will be provided with the draft RFP.

21 Is there a requirement for handling of CUI with a foreign subcontractor?

Access to CUI will be provided to authorized data custodians. Handling of CUI with a foreign subcontractor with be the responsibility of the prime contractor and shall be managed in accordance with applicable laws and regulations.

HSAAP Industry Day #2 Q&As

07 January 2022

22 Is there a 3-5 year funding projection the Government can share?

The Government cannot release Program Objective Memorandum related numbers.

Have safety training and drug testing been completed on modernization contractor personnel?

Safety training and drug testing are required for all subcontractor personnel working on HSAAP. The frequency is defined in the PWS requirement provided with the draft RFP. The HSAAP operating contractor is responsible for ensuring compliance with these requirements.

Can the Government provide a site visit and modernization status update briefing just prior to release of the Request for Proposal?

A site visits and update on the status of modernization efforts will be provided at Industry Day #3 in February 2022.

From slide # 33 In the 2nd Industry Day presentation, it appears this is an ongoing effort to procure critical equipment spares and parts and to execute facility maintenance to repair or replace failed or failing infrastructure. Is the government interested in enterprise asset management/total asset visibility (TAV) to improve its stockage or spares and parts using Artificial Intelligence and Machine Learning (AI/ML), which can also better predict and prevent potential equipment failures that could impact manufacturing uptime? On the facilities maintenance and management side, is the Government interested in modernizing capabilities to pro-actively monitor facility preparedness and improve maintenance resolution?

The intent of the critical spare parts project is not to upgrade/modernize the Government's capability to pro-actively predict equipment failures and pro-actively monitor facility preparedness. However, such applications may be considered in the future.

Does the Government have a perspective to how quickly they’re looking to award modernization projects after award of contract?

Award of future modernization projects and their timing are funding dependent.

27 Who has oversight of modernization at Holston? Project Director Joint Services

Can the Government explain how it will decide if projects will be directed to prime, USACE, or 3rd party?

The decision to award modernization projects to the USACE or a third party will be made on a case by case basis and will consider factors including, but not limited to, the project scope/complexity, proximity to production capabilities, need for specialization, and urgency.

Does the Government plan to have a PWS to outline the support required in support of 3rd party modernization? Can you describe to what level of effort the awardee will be required to support and how will costs be allocated and schedule and performance be managed?

Refer to draft RFP Narrative C0014 - Modernization Support for Third Party Modernization for the requirement for support of third party modernization. The level of effort/support required and its associated costs will be negotiated on a case-by-case basis as requirements become known.

30 How involved is the USACE at Holston? USACE is currently managing the EDC and ANSOL destruction projects

Does the Government anticipate any other projects in the earlier phases to be added to the list of projects that go across the award timeline?

At this time, no. The Government provided the projects that could potentially go past the current facility contract PoP. Future projects award schedules are pending funding and prioritization efforts as well as urgent needs that may occur.

If additional projects do go past the award timeline, will they be added to the incumbent's scope or the new operating contractor?

At this time, the USG does not intend to award additional projects to the incumbent that will go past the current facility contract PoP. This could change pending funding availability and priorities and any urgent needs that may occur.

Who is responsible for commissioning and acceptance for the projects that extend past the PoP?

The incumbent is required to complete commissioning. Acceptance is the responsibility of the Government.

Is there going to be any information provided about future projects or level of projects post-award? Will future projects be provided at some point in the source selection process?

The Government does not intend to provide information on future projects with the source selection. Future projects are dependent on budgets and budget priorities.

Will the ongoing modernization projects be able to handle the explosive waste at Holston?

The goal is to significantly reduce open burning. The Government intends to maintain the capability of open burning for unique situations and pending approval from the State and EPA.

Slide 13 of the briefing charts - Can the Government clarify what is an OCI and couldn't be bid on?

FAR Subpart 9.5 provides the general rules and procedures for identifying and evaluating organizational conflicts of interest.

Will any of the planned modernization projects have an impact on environmental risk? If so, which ones and what is the magnitude?

Yes, current and planned modernization projects could have an impact on environmental risk. Some modernization project could favorably reduce environmental risk as well.

Can the Government provide the expected impact to energy demand from ongoing modernization projects?

Energy consumption is dependent on many variables to include the amount and type of production orders and how the operating contractor chooses to run the plant. Most of the current and planned mod projects are adding additional capabilities that already exist at HSAAP. The exceptions include projects such as the Flashing Furnace, EDC, and ANSOL projects.

How will support and commissioning for modernization projects extending beyond the incumbent's period of performance be bid?

Refer the draft RFP for modernization support requirements for projects expected to extend beyond the incumbent's facility use contract period of performance.

Will PDJS require specific technology/applications to be used on these projects for scheduling and/or document collaboration to the potential awardee for visibility? If yes, will these requirements be called out in any future solicitations?

If no, will there be specific timelines and reports to be sent to PDJS as these projects are going through design/construction phases?

Documents are generally requested in MS Word or provided in PDF. Schedules should be in MS Project or should be able to be successfully exported to MS Project. PWS 1 has reporting requirements which mainly focus on quarterly PMRs. Additional requirements specific to each modernization project will be identified in their respective RFP.

If modernization contracts are subject to OCI, are all modernization projects subject to that or will some stay with the awardee?

Modernization may still be awarded to the HSAAP prime contractor.

What is the historical data regarding the split the three different contracting methods for modernization?

Historically, most, if not all, modernization projects were awarded to the HSAAP operating contractor. USACE involvement has recently slightly increased with managing the EDC and ANSOL destruction projects.

Operating contractor and subcontractors will be unable to bid on 3rd party modernization. Could you elaborate? Would that be irrespective of their scope of a sub? If we’re performing one area of the scope, would that preclude from all projects?

Should the Government elect to utilize a third party for modernization projects, the successful awardee of the contract resulting this solicitation, and all of its subcontractors and joint ventures partners, will be ineligible to bid on those projects as a prime contractor. The Government has determined that the prime operator of HSAAP, and its subcontractors and joint venture partners have a conflict of interest and therefore are ineligible to compete on third party modernization projects for the duration of this resultant contract. If a subcontractor of the successful awardee, you would not be able to bid on 3rd party mod for the entirety of the Holston contract, regardless of the project scope of work.

Can the USG provide status of major milestones associated with the modernization projects presented in Industry Day #2, on September 15, 2021?

Will potential competitor be allowed to view the projects during future site visits?

The Government will continue to provide status updates on modernization projects that impact facility operations. The Government will consider allowing ongoing modernization projects to be a viewed during future site visits.

45 Will the Government provide bands of production for economies of scale? Refer to the draft RFP for pricing criteria.

Our biggest concern is on the pricing aspect and how you might allow for fluctuations of pricing over the full 21 years of the contract. Given the variable that impact the pricing, we’ll be interested in understanding the flexibility we will have when giving pricing to you.

Refer to the draft RFP for pricing criteria.

47 How many years of Firm Fixed Pricing will be required in the initial RFP?

10 years of FFP will be required with the initial RFP. Refer to the draft RFP for pricing requirements.

48 Is product pricing the only pricing the USG expects to see? Refer to the draft RFP for pricing requirements.

49 Will there be an economic price adjustment for natural gas?

The Government will consider incorporation of an EPA with appropriate justification and method for execution. The Government requests feedback on this topic.

Is the production schedule is a collaboration between the contractor and the Government? Moving forward will that continue?

The production schedule is a collaboration between the contractor and the Government. This is expected to continue moving forward.

Is there a thought that in addition to making the IMX/HMX, that some of the components might be developed and produced at HSAAP?

The Contractor is responsible for managing the supply chain to support production at HSAAP; however, the Government has an assured munitions initiative in which we look at critical components of the end items to determine if it is feasible to bring critical components onshore – whether at HSAAP or another facility, Government or commercial.

52 Will the TDPs be available? TDPs are available on sam.gov with the draft RFP.

53 What is the current rework rate at the facility? This information is considered proprietary and cannot be released.

In order to assist with First Article Test and Transition planning, can the Government provide details regarding any production downtime between Contract Award and Full Operation Control?

Contract award is projected to be April 2023, with the successful awardee assuming full operational control of the facility on January 1, 2024.

55 Will the Government provide forecast information for each product?

The Government does not intend to provide forecast information for each product.

Can the Government provide more specifics about the production requirements contract terms? Will all DoD products be required from HSAAP or only specific products/programs? Will the Government share anticipated quantity of products to be produced? Will the Government direct System Primes to purchase products from HSAAP? Will the requirement be phased with production capacity improvements?

DoD programs must purchase explosives from a qualified source. While Prime Contractors are not directed per se to procure explosives through HSAAP, they must procure from a qualified source.

Will the RFP state if property is moved over to the new contractor? Does this include anything that impacts operations?

The RFP will include a listing of all property that will be provided as Government furnished property. This could include property that impacts operations.

58 Where are new energetics and corresponding processes developed?

Primary source of R&D is the Armaments Center at Picatinny, but we also team with DoE, and work with commercial entities.

How do you all envision new energetic products moving from a lab into production? And what is the timeline for that?

New energetic development takes a long time. Typically it can take years for new energetics to be introduced. It’s a delicate and challenging process to come up with new energetic material. A recent example took 4-5 years to come up with a process that could be provided to industry to replicate.

Can the Government provide more detail on maintaining an R&D capability?

Will what is currently at the facility be communicated to bidders?

Refer to the draft RFP for requirements on maintaining an R&D capability at

HSAAP.

Is the expectation for the R&D capability to be on site? Will the Government consider off-site support activities as well?

Refer to the draft RFP for requirements on maintaining an R&D capability at

HSAAP.

Will there be an actual R&D requirement to bid against? Or is it more to have the capability?

Refer to the draft RFP for requirements on maintaining an R&D capability at

HSAAP.

Do you have any guidance on any of the critical bottlenecks on development or production? Are they within Holston itself or outside of Holston? We are assuming the mod projects are in place to reduce bottlenecks

Bottlenecks are dependent on product mix. The Government aims to minimize areas where bottlenecks occur through the modernization program.

In the case we need to get a security clearance, is there a timeline for how long that would take? Or any guidance on obtaining?

Information regarding the process for obtaining a Facility Clearance can be found at the following link: https://www.dcsa.mil/mc/ctp/fc/

Will transition be a component of the unit pricing? What activities will happen in the early stages of transition?

The Transition PWS will identify key activities necessary to support a seamless transition. The Government intends for the cost of executing the Transition PWS to be indirectly funded and burdened into the price of product.

66 Will the Government consider evaluating the cost of transition separately?

The Government intends for the Transition PWS to be indirectly funded and burdened into the price of product.

Are there concerns of the large ordering gap between old contract and new award. Is there any thought on how to reduce that risk?

The Government acknowledges the potential ordering gap and is managing the situation appropriately with customers.

Is there a disconnect between the end of the supply contract and manufacturing deliveries on that contract?

The current supply contract expires for ordering purposes on September 30, 2022. The incumbent will utilize the transition period to complete deliveries of existing orders. All orders after September 30, 2022 will be placed under the new HSAAP contract.

69 Will the new analytical lab replace the existing R&D facility? No.

70 Will this analytical lab encompass the R&D capability? No, the purpose of the new analytical lab is to support production.

Along with what products and processes happen in each building? Is there a master list of buildings?

A master list of buildings and an overview of the products that each building supports has been uploaded to the virtual library.

Can the Government provide historical production volumes for each detailed product code?

A summary of historical production by product has been posted to the virtual library.

73 Can the Government provide maximum production potential?

The current production capacity at HSAAP in general terms (capacity varies depending on product mix) is 8M lbs/year of RDX, 1.5M lbs/year of HMX, and 2.5M lbs/year of IMX. Modernized capacity goals are 15M lbs/year of RDX, 1.5M lbs/year of HMX, and 6M lbs/year of IMX.