SPECIAL NOTICE
99 -- Request for Information- Contracting for the Operation and Maintenance of Iowa and Milan Army Ammunition Plants (Reference Solicitation Number W52P1J-06-R-0201)
- Notice Date
- 12/27/2006
- Notice Type
- Special Notice
- NAICS
- 561210
— Facilities Support Services
- Contracting Office
- US Army Sustainment Command, ATTN: AMSFS-CCA, Rock Island, IL 61299-6500
- ZIP Code
- 61299-6500
- Solicitation Number
- USA-SNOTE-061227-004
- Archive Date
- 3/27/2007
- Description
- Request for Information Contracting for the Operation and Maintenance of Iowa and Milan Army Ammunition Plants (AAPs). PURPOSE: The Joint Munitions & Lethality Life Cycle Management Command, which includes the U.S. Army, PEO Ammunition and Joint Munitions Command, has a continuing requirement for a contractor(s) to operate and maintain the following two Government Owned Contractor Operated (GOCO) facilities: ? Iowa Army Ammunition Plant (IAAAP) located in Middletown, IA, and ? Milan Army Ammunition Plant (MLAAP) located in Milan, TN. We are seeking information that may assist us in the formation of a final acquisition strategy. This is a Request for Information (RFI) only. It is being issued solely for information and planning purposes. It does not constitute a Request for Proposals (RFP). This RFI does not commit the government to contract for any supply or service. We reserve the right to accept, reject, or use without obligation or compensation any information submitted in response to this RFI. The U.S. Government will not pay for any information or administrative cost incurred in response to this RFI. OBJECTIVES: In addition to maintaining various critical capabilities at the facilities, the Government desires to implement an Acquisition Strategy that achieves the following short- and long-term objectives: 1. Provide continuous, effective, safe operation and maintenance of Iowa and Milan AAPs. 2. Create an efficient operation that allows the operating contractor(s) to successfully compete for business in the open market (ammunition or otherwise) without the guarantee of product from the Government. 3. Minimize the total cost to the Army (O&M, product, PBS, modernization) by increasing the efficiency of facility operations. 4. Provide a seamless transition from the current facilities use contract to future facilities use contracts to facilitate the production of conventional ammunition for any/all future requirements. 5. Provide increased transparency into O&M costs and the relative impact on ammunition pricing. 6. Maintain maximum flexibility to adapt to changing requirements. BACKGROUND/GENERAL INFORMATION: American Ordnance LLC (AO) has operated and maintained IAAAP and MLAAP since October 1998 under one, no cost, facilities use contract which will expire 31 Dec 2008. Benefits to the operating contractor include: ? The right to use Government owned assets (property, buildings, equipment) to generate revenue. ? The right to bring in tenants via the ARMS program to generate revenue and help offset the cost of operation. ? The Government will provide some initial limited workload, as well as the potential for directed work when justified under a CICA exception. ? The Government will fix and/or modernize the Government-owned assets upon receipt, review, approval, and funding of the operating contractors recommendations. The Government will identify potentially available funds (BRAC, etc). In consideration for the exclusive use of the facilities, the operating contractor complies with the operational plans for base support. Base support tasks typically include: ? Maintenance: Real property and grounds maintenance and management. ? Property: Maintenance and management of Government property, to include buildings, structures, roads, bridges, grounds, railroad equipment & facilities, vehicles, equipment, and utility systems. ? Security/Force Protection: Providing a security program for the protection of the people, facility, and its arms, ammunition, and explosives. ? Safety: Providing a safety program which protects the lives and health of employees (both Government and contractor), the public, and the facility, including lessees and subcontractors. ? Fire Protection: Establish capabilities needed to protect employees and property against fires, hazardous material spills, etc. ? Environmental: Ensuring the necessary environment al and hazardous material permits issued in the name of the operating contractor; the Government is responsible for environmental restoration, and the operating contractor is responsible for everything else, such as compliance with Federal and State mandat ed environmental programs and pollution prevention activities. For additional information including draft scopes of work outlining each of the major areas of base support your attention is directed to: http://www.afsc.army.mil/ac/aais/ioc/iowamilan/index.htm . These draft scopes of work are currently undergoing thorough review by the government to assure their contents clearly and accurately reflect the Governments requirements. Other services are separately funded under a companion contract (often on a fixed-price basis; however, time and materials or other terms and conditions can be used). Such services include: ? Tenant Support ? ACO Support ? Specialized Testing ? Production Base Support ? Project Work, to include disposal activities and installation restoration ? Execution of special programs for forestry, agriculture, fish, and wildlife programs ? Commercial Reuse Efforts ? Material Management Efforts ? Planning for emergency demands in the event of a national emergency ? BRAC transition project efforts. The mission of these facilities is the Load, Assemble and Pack (LAP) of finished ammunition product in support of DOD training and war-fighting requirements. In order to fulfill this mission, these LAP facilities must possess sufficient expertise, capabil ity and capacity to provide manufacturing core capabilities consisting of melt-pour, the pressing of precision missile warheads, and the ability to LAP 120mm training and tactical tank rounds at IAAAP, and mortar melt-pour as well as C-4 extrusion, and hig h-speed loading of high explosive 40mm rounds at MLAAP. SUPPLEMENTARY INFORMATION: Armament Retooling and Manufacturing Support (ARMS): Numerous ARMS agreements are currently in place at each facility. New Operating Contractor(s) (NOC(s)) will be required to retain and manage any ARMS Agreements in place at the time of the new Facilities Use contract award. Transition from Current Operating Contractor to NOC(s): Potential Encumbrances: Both facilities may have production lines encumbered by the current operating contractor through 31 Dec 2012 (depending on the outcome of product solicitations currently in competition and other potential future product awards). T he current operating contractor can elect one or both of the following if they are not the successful offeror under the new Facilities Use contract: ? Negotiate an assignment of any then-ongoing production contracts with the NOC(s) - OR - ? Make appropriate payments to the NOC(s) for services provided to them as long as they remain the prime contractor under such production contracts. Anticipated services which would be purchased from the NOC(s) include: material handling/storage, technic al support, administrative, safety, security, and environmental. Total payments for 2009 are currently estimated at $30M for the services listed at: http://www.afsc.army.mil/ac/aais/ioc/iowamilan/index.htm . It will be up to the NOC(s) to negotiate the appropriate amount of rent from the current operating contractor for the services provided in the outyears. Intellectual Property/Contractor-Owned Equipment: Whether in the near term or at the end of the current production contracts, the transition from the current operating contractor to NOC(s) also poses challenges in the areas of intellectual property and con tractor-owned equipment. The current operating contractor may retain ownership of some proprietary production process information as well as some pieces of production equipment. Due to the complexity of ownership and intellectual property issues, it appe ars these may best be resolved by making use of industrys expertise and assistance. Productio n Contracts: The Government does not intend to guarantee product with this acquisition, but it is considering the acquisition of some product at the time of award. Specific quantities, terms, and conditions relative to such product are yet to be determined. However, i tems under consideration include M112 demo charge, MICLIC, 40 lb Cratering Charge, and M107 and 75mm/105mm Blanks. The 40mm LAP is also directed to MLAAP through at least 2009 (via systems contracts). Refer to Transition from Current Operating Contracto r to NOC(s) above for potential NOC(s) constraints in assuming such production. PROPOSED ACQUISITION STRATEGY: The U.S. Army, PEO Ammunition, and Joint Munitions Command propose the following: Issue one solicitation with the Government reserving the right to award one Facilities Use contract covering both facilities or two separate contracts (one for IAAAP, one for MLAAP), twenty-five years in length. The Government contemplates a 25-year performance period for the contract to allow the contractor to plan for an optimum return on investments in an efficient, modern plant. Periodically (proposed as every five years) the Government and contractor may rev iew the contract to incorporate changes necessitated by changes in Government policy, budgets, and the operating environment. In addition, the Government may include periodic award term evaluations (proposed as every five years) to review contractor per formance with the Government option whether to extend the period of performance to the full 25 years. Potential offerors will have the opportunity to compete for one or both of the facilities but are not required to bid on both. Prospective offerors will provide technical proposals for the following: a. Operate & Maintain the Facility: Prospective offerors will be required to identify their proposed business and management approach to operating and maintaining the facility. Offerors will be required to provide a Performance Based Work Statement (PBWS) to accomplish the objectives set forth in Statements of Objectives for each of the identified base support tasks. The PBWS will become part of the contract and the contractor will be required to perform these objectives through the implementation of thes e documents. b. Optimization Plan: Prospective offerors will be required to identify their plan(s) (one for Iowa, one for Milan, and/or both) for minimizing the total cost of operations to the Army (O&M, product, PBS, modernization) throughout the life of the contract. Included might be such recommendations as modification and/or reduction/reconfiguration of facility footprint, infrastructure improvements, facility modernization, etc. c. Prospective offerors will also be required to demonstrate financial capability as well as a legal ability to assume ammunition related responsibilities. The Government will evaluate the proposals and make a best value source selection decision as to whether it is in our best interest to award one or two, twenty five year facilities use contract(s). It is estimated that beginning no later than 01 Jan 09, the NOC(s) will assume the contractual duties as facilities use contractor(s). Supply and additional service requirements will be purchased through a companion contract(s) to the facilities use contract. INFORMATION REQUESTED FROM INDUSTRY: In responding to this RFI, potentially interested parties are asked to submit information on the following: 1. Briefly describe your company, products, services, history, ownership and any other information you deem relevant. In particular, describe any contracts you have been involved in that are similar in concept to what is described in this RFI, including m anagement and operations approach, ability to assume ammunition related responsibilities, financial capability, security requirements, and any relevant lessons learned 2. Suggest or comment on the Armys proposed acquisition stra tegy as outlined above, relative to the stated objectives 3. Identify potential risks associated with the Armys proposed acquisition strategy, along with possible methods of mitigation 4. Assess the likelihood of the Government achieving its objectives; also assess the likelihood of the Government achieving zero cost 5. Assess the impact of the transition period on this acquisition 6. Provide recommendations on any preferred alternative strategy(s) that is capable of achieving the Armys aforementioned objectives for the proposed acquisition 7. What, if any, incentives are needed to interest you in this facilities use contract. 8. Provide comments/recommendations on the proposed period of performance, periodic review of the contract, and award term provisions. 9. Provide comments on the draft scopes of work posted at the following Website; specifically, feedback on requirements contained within those documents which would not be applicable in a purely commercial ammunition production facility: http://www.afsc.army.mil/ac/aais/ioc/iowamilan/index.htm . GENERAL INFORMATION: Responses: Responses to this RFI are due NLT 31 Jan 07. Responses should be submitted to: Ms. Cindy Peterman, Army Sustainment Command ATTN: AMSAS-ACA-L Rock Island, IL 61299-6000 One-on-One Discussions: It is the Governments intent to hold one-on-one discussions with respondents to this RFI sometime in Feb 07. Any information provided to the Government during one-on-one discussions will be treated as proprietary upon your request to treat it as such. Proprietary information discussed at the one-on-ones will not be included in a draft or formal Request for Proposal (RFP). The Government intends to use RFI responses and feedback from one-on-one sessions with RFI respondents to help finalize our acquis ition strategy, to be followed by issuance of a draft RFP.
- Web Link
-
Army Sustainment Command: Iowa/Milan Acquisition Information
(http://www.afsc.army.mil/ac/aais/ioc/iowamilan/index.htm)
- Record
- SN01202990-W 20061229/061227220441 (fbodaily.com)
- Source
-
FedBizOpps Link to This Notice
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