BROADS AGENCY ANNOUNCEMENT PROPOSER INFORMATION PACKET Broad Agency Announcement SP0500-97-BAA01, Amendment #2. ADDENDUM # 9 For the United States Marine Corps Logistics Bases (MCLBs) in Albany, GA; Barstow, CA and Blount Island Command, FL. By the use of Broad Agency Announcement (BAA) SP0500-97-BAA01, Amendment 02, Addendum 09, the Defense Industrial Supply Center (DISC) is seeking industry assistance in the reengineering of the methods by which DISC, as an Inventory Control Point (ICP) within the Defense Logistics Agency (DLA), will provide logistics support to its military customers. This initiative is referred to as the DISC Industrial Prime Vendor Program (DISC-IPVP). Addendum No. 9 is a request for the submission of Concepts for innovative methods for DISC to provide the full breadth of Customer Oriented Supply Chain Management (COSCM) with respect to the spare parts and industrial hardware requirements of the United States Marine Corps Logistics Bases located at Albany, GA, (MCLB Albany), at Barstow, CA (MCLB Barstow),and at Blount Island Command, FL (BIC, FL). This announcement is an expression of interest only and does not commit the Government to make any award or to pay for any response preparation costs. PLEASE NOTE THAT, IN 1999, DISC WILL BE INTEGRATED WITH DEFENSE SUPPLY CENTER, PHILADELPHIA (DSCP). ANY REFERENCE HEREIN TO DISC MEANS "DISC" OR ITS SUCCESSOR, "DSCP". DISC does not anticipate issuing a formal Request for Proposal (RFP) or any solicitation document issued in conjunction with this BAA. Prospective offerors are cautioned that only the Contracting Officer is legally authorized to commit the Government. The cognizant contracting activity is the Defense Industrial Supply Center (DISC). The Contracting Officer is: Tom Pawlowski, DISC-APG Defense Industrial Supply Center 700 Robbins Ave. Phila., PA 19111-5096 Phone #: 215-697-0961 Facsimile: 215-697-3630 E-mail: tpawlowski@disc.dla.mil This Proposer Information Packet (PIP), together with the sources of information listed below, constitute the entire Broad Agency Announcement, and should be consulted, reviewed or referred to, in conjunction with each other. A. Data Bases: On the World Wide Web, at HYPERLINK, http://www.disc.dla.mil under Broad Agency Announcement. See BAA01, Amendment No.2, Addendum No.9. 1. Blount Island, FL: Data provided by U.S. Marine Corps Blount Island, reflecting annual demand/usage and descriptive data on SKCs for its site. 2. DISC provided database of MCLBs historical demand/usage for the past nineteen (19) months for DISC managed items, and also for items managed by DLA Inventory Control Points other than DISC. B. Broad Agency Announcement (BAA) SPO500-97-BAA01, Amendment 2, Addendum 9, Parts Supplier/Parts Integrator. Note: Requests for information only may be directed to Garth McBride (215) 697-3458, Andre McKenzie (215) 697-9785, Mindy Guida (215) 697-1154 or Ruth Barnett (215) 697-9228. 1. PROGRAM OBJECTIVES DISC is seeking from industry, the submission of Concepts that will incorporate into the logistics supportsystems of MCLB Albany, MCLB Barstow and BIC innovative and efficient methods of supply chain management currently being employed in the commercial market place. DISC is seeking concepts that will take those commercial processes and design them to replace or adapt the current in-place systems, to make them more efficient. The term "innovative" means by which the involvement of Marine Corps, DISC, DLA and DOD infrastructure in the supply chain will be significantly reduced or eliminated. In this endeavor, the successful contractor, DISC and the Marine Corps customers will form a strategic alliance whereby the use of a third party parts supplier/parts integrator (an Industrial Prime Vendor) will allow all parties to capitalize on the successful supply chain management processes currently being demonstrated in the private sector. DISC anticipates awarding a contract for a single integrator for the logistics support of the two (2) MCLBs and BIC. As a single source of supply, in addition to the providing of spare parts and industrial hardware, the successful contractor will be expected to provide inventory control and supply maintenance, planning and forecasting, engineering and technical services, as well as surge and sustainment. In addition, the successful contractor will be required to maintain the supply chain system, together with information technology that will be seamless to the Marine Corps, will eliminate redundancies, will simplify procedures, and will provide for overall efficiency so as to reduce the total logistics cost and reduce the time required for the MCLBs and BIC to accomplish their respective missions. The contractual vehicle in which DISC proposes to use for this initiative is a firm fixed price or fixed price with economic price adjustment Indefinite Quantity Contract (IQC) having a base period of two (2) years and three (3) one-year options to extend the contract term. The maximum term of the contract will not exceed five (5) years. Each contract year, whether in the base period or an option year, will have a specific dollar amount guaranteed. To the maximum extent practicable, the contract will be structured in accordance with Part 12 of the Defense Federal Acquisition Regulation Supplement (DFARS). Specific modifications or revisions to the suggested provisions of those regulations, referred to as tailoring, as well as other provisions unique to government acquisition, will be implemented by an appropriate Addendum. II. CURRENT PROCEDURES NOTE: Prospective vendors should review the following information as baseline conditions from which to formulate improved logistical solutions. Vendors should determine the most efficient solution possible to enable the customers to perform their missions. A. MCLBs Albany, GA and Barstow, CA There are 283 weapon systems maintained at MCLB Albany, some examples are: LAV, M88, AAV, M1A1, and HMMWV. There are 285 weapon systems maintained at MCLB Barstow, some examples are LAV, M88, AAV, M1A1, HMMWV and M109. At MCLBs Albany and Barstow a typical LSS or PEB/BS area consists of unattended open bins. Generally, the bins are located on shelving. However, some items may be stacked on pallets. Mechanics draw needed quantities of parts from the LSS or PEB/BS location and indicate on their "inventory lists" the source or sources of the part(s) (i.e. LSS or PEB/BS area). If part(s) is/are not available in the LSS, PEB/BS area(s), mechanic "orders" it through "Shop Stores". If required part(s) is/are not available from Shop Stores, the Shop Stores initiates the acquisition process. LSS, PEB/BS locations are routinely replenished through the Shop Stores. Replenishment of Shop Stores is accomplished through the normal DOD MILSTRIP system. Priority backordered supplies, when received by Shop Stores, are hand carried by Shop Stores personnel to the mechanic. B. BIC Jacksonville, FL At Blount Island Command there are 609 major end item systems for which this facility assists in providing material and/or maintenance such as: AAV, LAV, HMMWV, SINCGARS and M60. When technicians at Blount Island Command require normal repair items they provide a written request to the person who attends the PEB/BS area storeroom. The storeroom attendant then withdraws the requested material from the shelved bins in the PEB/BS area and issues it to the mechanic. The issue is then input into a computerized database to keep record of the transaction. The SKCs are basically maintained and provided for in the same manner. An inventory on the SKC is conducted and an Equipment Repair Order (ERO) is assigned for shortages. The attendant receives the ERO of items that are to be provided in the SKCs and withdraws these items from the storeroom area. He then places them into the SKCs. Items that are not available from the PEB/BS are ordered through the DOD MILSTRIP requisition system. On incoming material the government requisition number and the ERO are used to identify it to a specific SKC upon its arrival. When 100% of all shortages or as close to 100% as possible (during deployment) are identified and remedied, the SKC is closed. SKC is then placed in containers or placed on vehicles as a mobile load for embarkation to the ship. These issues are also input into the computerized database to keep record of the transactions. III. EXPECTATIONS A. The customers have the following expectations for this initiative: 1. A Prime Vendor who acts as a parts supplier/parts integrator in supplying and managing all parts (all items must conform to specifications, standards, quality conformance, quality certifications, identification and shelf life requirements as defined by the Purchase Item Description (PID) (including all applicable drawings); 2. A total supply chain manager of integrated logistics that participates in all planning meetings and provides: a. 100% supply availability; b. Pricing and Material cross-referenced to MILSTRIP NSN by PN and technical data (prior to on-site inventory placement). c. Forecasting and tracking of material demand/usage and associated reports. d. Engineering and technical services, and configuration control; e. On-site positioning, replenishment, management of material and storage bins. f. Billing on the basis of usage, rather than at time of bin replenishment. g. Provide initial stock based upon historical demand with adjustments to stock based upon real time usage. h. Material warranties i. 24 hour emergency delivery j. Kitting services (initially required for BIC) 3. Surge and sustainment capability; all Deployed Support Units (Maritime Prepositioned Ships) are to be supported at all times; 4. Implementation of information technology that interfaces with organic information systems in a transparent manner. 5. A seamless system, elimination of redundancy and simplification of procedures; 6. Quality parts equal to or greater than those currently provided; 7. Reduction in contract prices in each option year as productivity efficiencies are achieved; 8. Easy access to a customer service representative. It is anticipated that adopting this program will result in the reduction of total logistics costs, a seamless system, elimination of redundancy and simplification of current procedures and a reduction in the time required to accomplish the customer's maintenance and overhaul mission. The MCLBs and BIC consider this program as a viable means of building a lean, responsive organization which manages services vice material and replaces mass with timely information, knowledge and speed. The scope of the contract will include a requirement that the Contractor supply related items that have not been identified as LSS, PEB/BS, or SKCs at the date of contract, but which are required by the MCLBs or BIC to accomplish their respective missions. We invite Concept Papers that take advantage of state-of-the-art technology and innovative contracting to achieve these goals. CUSTOMER SITE VISIT Site Visits are tentatively scheduled as follows: MCLB BARSTOW, CA: AUGUST 13, 1998 MCLB ALBANY, GA: AUGUST 18, 1998 BIC, FL: AUGUST 20, 1998 In the event that the above mentioned dates must bechanged, notice of the change will be publicized via an Amendment on the World Wide Web, and in the Commerce Business Daily. While attendance at the above sites is not mandatory, the site visits are for the specific purposes of providing each prospective vendor as much available information as possible for the preparation of a Concept Paper. Each site visit will consist of a tour of the facility, and will accord all who attend the opportunity to review the types of the materials required, the number and location of the bins, the types of weapons systems for which the parts are required, and the general layout of each facility. All prospective attendees must register with the contracting officer no later than AUGUST 10, 1998. Failure to register might preclude entrance to a site. Visitors may ask questions for the purpose of clarifying customer support needs. However, there will be no discussion regarding contractual content or agreements. IV. SUBMISSION PROCESS The administrative cutoff date for submission of Concept Papers is 14 September 1998 at 1:00 P.M. Eastern Standard Time (EST). Concept Papers received on or before that date will be evaluated for utilization at the Marine Corps Logistic Bases and BIC. Concept Papers received subsequent to that date may be evaluated for feasibility or utilization at other sites. If a Concept is received late and is not evaluated for utilization at the MCLBs, the Proposer will be notified. The BAA number should be used on all correspondence regarding Concept Papers. A Concept Paper should outline, describe and otherwise explain the vendor's approach to support this initiative and the manner in which it will maintain sources, manufacturers, producers and other suppliers available for furnishing of these spare parts and others services in case of a nation emergency and to achieve industrial mobilization in time of war, international turmoil, and any anticipated surges in requirements. The offeror may submit a phase in schedule in their Concept Papers. All Concept Paperswill be reviewed by Government officials only and will be treated as proprietary data. Concept Papers submitted by FAX, E-MAIL or other electronic medium will not be accepted. Oral presentations may be required to clarify concept submitted. In addition to offerors addressing their technical approach to achieving the program objectives outlined in Section 1 of this BAA, each offeror must address the information as requested within the technical factors as listed in Section V below. Concept Papers shall not exceed fifty (50) pages. Proposers are to submit an original and four (4) copies of their Concept Paper (in hardcopy) and one copy of the concept Paper, on a 3 1/2" disc, in MICROSOFT OFFICE format to the following address: Defense Industrial Supply Center ATTN: DISC-PODP (Bid Opening Officer) 700 Robbins Ave. Philadelphia, PA 19111-5096 DISC intends to award a contract to a single integrator for the logistics support of the two (2) MCLBs and BIC unless a determination can be made that employing more than one integrator can attain the overall purpose of this Addendum to the BAA. Concepts that support all three sites are preferred, however at a minimum, a concept must propose support to both the Albany and Barstow MCLBs; a failure to do so may preclude consideration for this initiative. Strategic alliances and partnering arrangements among suppliers are encouraged. The Government reserves the right to select for award all, some or none of the responses received. Any award(s) made as a result of responses received may be made to: (1) all three customer sites combined, (2) Albany and Barstow only, or (3) all three sites separately. V. EVALUATION PROCESS & EVALUATION FACTORS Concepts will be evaluated on their breadth of innovative and efficient supply chain management with respect to support of the spare parts and industrial hardware requirements of the MCLBs at Albany GA, Barstow CA, and the Blount Island Command, FL relating to their respective maintenance, overhaul and repair and logistics support missions. In addition to providing for the furnishing of the required supplies, the COSCM Concept must demonstrate and describe in detail the elements of inventory control and supply maintenance, planning and forecasting, engineering and technical services, as well as surge and sustainment. The items of supply must conform to specifications and standards, quality conformance and quality certifications, identification of shelf-life requirements, and all other requirements of the specific item descriptions for the specific parts associated with maintenance, overhaul and repair of land vehicles at the cited MCLBs and the logistic support mission of BIC. The COSCM concept must include a process and a time by which a 100 percent fill-rate will be achieved. A "100 percent fill-rate" means that a specific, needed, part, set, kit, chest, etc., is available for use when the Marine Corps mechanic or artisan attempts to retrieve it to accomplish his of her mission. The Concept should include innovation and efficiencies of supply chain management currently being employed in the commercial market place, and should reflect how those processes will be designed to replace, or be adapted to, the current supply chain management process in place at the MCLBs and BIC. A. Evaluation Process Concept Papers will be evaluated solely against the criteria set forth in this BAA. Therefore, Concept Papers will NOT be evaluated against each other since they are not submitted with a common work statement. Concept Papers submitted shall be evaluated against the established criteria and if deemed to have merit, the Government will ask offeror(s) to submit proposal(s) for subsequent negotiations for possible contract award. The format for Concept Papers appears in part VI of this document. Concept Papers will be selected for further discussions based upon technical merit, importance to agency programs, and funding availability. When the Concept Paper evaluation is completed, the submitter will be notified whether their submission warrants further discussions with the intent of making a contract award. All Concept Papers will be considered proprietary. All responsible sources capable of satisfying the Government's needs may submit a Concept Paper which shall be considered by DISC. Upon submission of Concept Papers on 14 September 1998, only pricing methodology should be submitted. Firm(s) who submit concept(s) that is/are selected for full discussion, shall provide a complete pricing proposal during negotiations. Those proposals committed to cost control and cost management will be considered more favorably. Customer affordability and cost/price realism are also important factors. The final award decision will then reflect an integrated analysis of expected outcomes and the price to achieve these results. We are requesting a cost management plan showing the methods and amounts of savings on an annual basis. Note: The contractual vehicle in which DISC proposes to use for this initiative is a firm fixed price or fixed price with economic price adjustmentIndefinite Quantity Contract (IQC) having a base period of two (2) years and three (3) one-year options to extend the contract term. B. Evaluation Factors Specific Information -- The offeror shall fully address in the Concept Paper each of the following areas that will be examined as part of the evaluation process. The factors are listed in descending order of importance. 1. Customer Oriented Supply Chain Management The Government will evaluate the concept for its ability to provide supplies, efficient supply chain management, inventory control, on-site stock area management, forecasting, engineering services, technical services, and configuration control that will ensure that the necessary supplies and a Posted 07/23/98 (W-SN227294).

Loren Data Corp. http://www.ld.com (SYN# 0599 19980727\SP-0007.MSC)