LSFMA_Industry_Day_Final_Brief.pptx

LOGISTICS SUPPORT FACILITY MANAGEMENT ACTIVITY (LSFMA) Industry Day Briefing Mr. John Caraway LSFMA Director 5 May 2016

LSFMA Concept The Logistics Support Facility Management Activity (LSFMA), is a government/industry partnership contractually established to provide quick reaction, low-cost, high-quality support a broad spectrum of modifications, non-recurring engineering, production, repair and associated logistics functions for present and former US Army aircraft systems to all aviation customers, including Foreign Military Sales and other Government Agencies.

Supports Every PEO Aviation PM by bringing together multiple small quickly required actions to make an economy of scale

LSFMA - Provide customers rapid response support, facilitated by a competitive contract ordering vehicle with high quality OEM like capabilities.

LSFMA History The LSFMA was started in 1999 as a GO/CO activity to bring Special Operations Aviation capabilities to the Traditional Army through the use of IDIQ ordering contracts The first contract was a facility use contract to a small business set aside in 1999 LSF Contract 2 was awarded in 2005 still as a GO/CO and began the transition away from GO/CO status and implemented DCMA oversight LSF Contract 3 was competitively awarded in 2007 as a single Contractor Owned Contractor Operated awardee small business set aside LSF Contract 3 was transferred in 2009 from Rock Island ACC to AMCOM ACC with full DCMA oversight (contract, quality, facilities) implemented LSF Contract 4 was competitively awarded in 2013 as a multiple Contractor Owned Contractor Operated awardee small business set aside with full DCMA oversight of both contractors

LSFMA 4 Concept LSFMA 4 Concept –

Two Contracts Awarded Apr 13

Period of Performance on Both Contracts Apr 13 to Apr 18

Each Delivery Order Expects Competition

Labor , Overhead, G&A, and Profit/Fee Not To Exceeds (NTE) competitively established on both base contracts

Labor , Overhead, G&A, and Profit/Fee competitively determined for each Delivery Order IAW Base Contract Awarded NTE

Authorized Award Types – FFP, CPFF, CPIF

BL- LSFMA Contracts Make the Most Practicable Use of Competition Throughout the Acquisition Life Cycle

LSFMA Delivery Order Oversight LSFMA Contract Administration and in Facility Quality Oversight Provided By Defense Contract Management Activity (DCMA) Aircraft Integrated Maintenance Operations (AIMO)

LSFMA Contract Quality Standards ISO9001 – Quality Management SAE International – AS9100 (Includes Industry 3rd Party Oversight) Quality Systems - Aerospace - Model for Quality Assurance in Design, Development, Production, Installation and Servicing SAE International – AS9110 (Includes Industry 3rd Party Oversight) Quality Maintenance Systems - Aerospace - Requirements for Maintenance Organizations Federal Aviation Regulation Part 145 Repair Station DCMA Instruction 8210.1

BL- LSFMA Contractors Operate IAW Latest Industry Quality Requirements The Same As An OEM

LSFMA Missions, Functions, & Customers Major Missions & Functions Army & Army Derivative Rotary and Fixed Wing Logistics Support Maintenance Work Order (MWO) Kit Design MWO Kit & Non-Provisioned Item Production MWO Integration / Installation Aircraft and Aerial Systems Modification Non-Standard MWO Design / Application Concurrent and Reverse Engineering Program Integrations Program Mgt Contract Execution Management

Customers Supported (25+ Including) PEO Aviation AMCOM / SAMD / Foreign Military Sales USAF – Rotary Wing Office

USN – NAVAIR

USCG

FBI / Border Patrol / State Dept. / OGAs

FY14 Business Level $241 M / 31 Delivery Orders Issued 156 Modifications Issued

FY15 Business Level $173 M / 29 Delivery Orders 242 Modifications Issued

Significant Contributor to AMCOM Small Business Goals

Small Business Synergy Goals

LSF GOAL – Cost Wise MWO Development – Economy of scale across PEO Aviation –– See next Slide

LSF GOAL – Highest Quality Standard - AS9100/AS9110 recognized by the OASIS Certification/Registration Body

LSF GOAL – Quick Cycle CRP Time – Less Than 90 days

Average Delivery Order Period Of Performance 9 to 18 Months

Facility Cost Wise Synergy

AWARDS

MODIFACTIONS

Life cycle awards average (Award $ + Modifications $ / # Awards) = $7.4 M

1. Multiple small efforts are an effective economy of scale.

Local Facilities are a must to make Small Programs Cost Effective. TDY expenses would be a proportionally major cost impact to such small programs, especially programs at the O5 level and would result in returning to OEM efforts.

LSFMA 5 Re-compete Information LSFMA Contract(s)

Small Business Set-Aside: NAICS code 336411 Aircraft Manufacturing including aircraft conversion (i.e., major modifications to systems) and complete aircraft overhaul and rebuilding (i.e., periodic restoration of aircraft to original design specifications).

Competitively Awarded as a Continuingly Competitive Indefinite Delivery Indefinite Quantity (IDIQ) IAW Federal Acquisition Regulation (FAR) Part 16 Contract

Set Up as an Ordering Contract and operated IAW the requirements set forth in FAR Part 22 – “Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 Statute” formally known as the Walsh-Healy Public Contracts

Complies with the Competition in Contracting Act (CICA)

Government Owns Complete Data Rights to all Efforts Performed by LSFMA Prime Contractors

BL- LSFMA Contracts Increase Competition and Reducing the Requirement for Exclusive Use of Sole Source Contracts to the OEM to Perform Aircraft Support

LSFMA Corporate Requirements

FACILITY REQUIREMENTS

Contractor’s primary aircraft facility shall be within 60 miles of Redstone Arsenal. Thresholds defined as- A minimum of 32,256 square feet of fueled aircraft hangar space.

A minimum of 32,256 square feet of production/modification space.

A minimum of 20,000 square feet for logistics support operations.

Compliance with applicable fire safety standards set forth in DCMA 8210.1 and NFPA 409 and NAS 3306.

A vault for the storage of COMSEC equipment and armaments during maintenance of aircraft.

A minimum of 2,000 square feet to store hazardous material used in aviation maintenance and modifications.

The ability to moor 10 rotorcraft on-site.

Possess or have ready access to tooling and equipment necessary to perform aircraft maintenance and modifications.

Aviation Is an Expensive Endeavour

Conclusion LSFMA Is – IAW DOD Better Buying Power Directives A revolutionary business practice that uses continuingly competitive Small Business contracts to compete against over-reliance on Sole Source Original Equipment Manufacturers (OEMs) contracts.

Operated as an Ordering or Supply based contract (i.e., formally known as Walsh-Healy Act Contracting) Is for fast reaction requirements A significant cost savings to the USG – Rate differences alone between OEMs and Small Businesses can represent a 30 to 40 percent cost savings LSFMA Requires – Diverse support base throughout Army Aviation to have an Economy of Scale Local facilities to be cost effective for Army AWR programs because of the significant cost associated with TDY requirements associated with MWO approval .

LSFMA Provides Direct Support to the Field with Significant Schedule and Cost Savings While Maintaining the Highest Quality Standards image6.jpeg image7.png image8.png image4.gif image9.png image10.jpeg image11.jpeg image1.jpeg image2.png image3.png image5.png