F100 Engine Performance-Based Supplier Initiated Order Contract

This agency proposes to issue a letter solicitation for a Supplier Initiated Ordering, performance-based, sole source contract with the Original Equipment Manufacturer (OEM), Pratt and Whitney (P&W), CAGEs 52661/77445 as supported by a J&A IAW FAR 6.302-1.  The proposed contract will be in support of the United States Air Force (USAF) and worldwide US Military and Foreign Military Sales (FMS) customers for the F100 Aircraft Engine. The total population targeted for this effort includes 1,612 sole source National Stock Numbers (NSNs), of which 205 are USAF-managed Depot Level Repairables (DLRs) and 1,407 are DLA managed Consumables.  Within the structure of the contract, P&W will be responsible for the demand forecasting of the entire F100 BOM of 5,886 NSNs; and supplying the 1,612 sole source NSNs to the Government under the proposed contract. SPE4AX-22-D-0001. 

This proposed contract will be for a total 10-year performance period which consists of a five-year base period and a five-year option.  Based on historical spending trend data and future demand projection modeling, the total maximum dollar value of this requirement is estimated at $3B.  The contract will be a subsumable contract under the umbrella terms and conditions of the P&W Captains of Industry (COI) Supplier Capabilities Contract (SCC), SPE4AX-22-D-0001 (awarded October 1, 2021). The effort will be Fixed Priced with Prospective Price Redetermination over two five-year periods (one five-year base period and one five-year option period). 

The proposed contract will have unique elements of program management and will incorporate performance metrics with incentives and/or disincentives. The program management elements and brief descriptions are included below:   

• Planning and Forecasting of the entire F100 BOM of 5,886 NSNs items to provide OEM demand planning and forecasting support with the overarching goal of increasing F100 engine availability.
• DLR support of P&W sole source items managed by the USAF using a Transactional LTC approach in conjunction with forecasting collaboration with the contractor to reduce F100 engine repair delays.
• Consumables support of P&W sole source items to sustain serviceable inventory to meet customer demands via a Supplier Initiated Ordering (SIO) approach. A SIO approach will foster a collaborative effort between DLA and P&W to share consumption and inventory data, plan inventory levels, facilitate just-in-time deliveries, and set metric goals to achieve maximum performance levels to improve warfighter support. 

It is the Government’s intent to use a letter solicitation format to the sole source OEM; therefore, if any non-OEM source is interested in any of the sole source NSNs, please notify the Contracting Officer prior to the synopsis closing date.  Responses to this announcement from other than the OEM should identify items of interest and include evidence of ability to supply the items for the contract period as identified.  In addition, respondents should identify the quantity available and price.  A copy of the letter of interest should be forwarded to the contracting officer identified herein and the Small Business Administration Procurement Center Representative (SBA PCR) DeeAndra.Heath@sba.gov.  The Government may alter the acquisition strategy if purchase of existing surplus or newly-manufactured inventory is in the best interest of the Government.