DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Defense Supply Center Richmond
Pre-Proposal Conference
Chemical Management Services
for Tinker AFB
Solicitation SPM4A2-08-R-0002
January 8 & 9, 2008
PROCUREMENT SENSITIVE INFORMATION
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Chemical Management Services (CMS)
• CMS Background/Vision/Expectations
• Timeline
• General Information
• Networking & Teaming
• Acquisition Overview
• Statement of Work
• Material Sourcing
• Information Technology
• Performance Metrics & Reporting
• Pricing
• Transition
• Instructions to Offerors
• Evaluation Procedures
• Summary
• Points of Contact
• Q&A
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
CMS DoD Background
• Feb 2005 – Office of the Secretary of Defense (OSD) tasked DLA to provide an integrated chemical supply chain management solution for DoD customers - Expressed interest in Proof of Concept with an Air Force site
• June 2006 – OSD directive to initiate CMS pilot at Tinker AFB
• June 2006 – OSD Supply Chain Capability Group (SCCG) established CMS Executive Steering Group (ESG) - To execute CMS pilot - To ensure CMS made available for all of DoD in the long-term
• June 2006 – Dec 2007 – Multiple acquisition strategy changes and Business Case presentations to management • Dec 2007 – Approval to solicit granted
• Dec 2007 – Solicitation issued
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
• CMS aligns with DoD’s transformation efforts for the future
• CMS aligns well with Lean Transformation efforts at the organizational level:
CMS provides cost savings and greater overall operating efficiencies CMS affords greater data keeping and allows for more informed business
decisions
• CMS is supported by the OSD
Why CMS?
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
CMS: Aligning Objectives
CMS model:
Aligned objectives
Lifecycle costs (material, labor, waste management)
Service Provider
wants to
decrease
Customer
wants to
decrease
Traditional models incentivized to sell more chemicals when customer wants to buy less
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
DoD – An Emerging CMS Market
• Commercial concept approximately 13 years old
• Commercially active in approximately 12 business sectors
• Significant increase from 5 to 12 sectors since 2000
• Continual increase in number of commercial CMS programs
• Continual increase in number of CMS providers
• DoD is an emerging business sector for CMS penetration
• CMS industry has opportunity to grow as the DoD CMS grows
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
CMS Vision in DoD
•Short-term Vision: Solicit CMS pilot at Tinker AFB Award pilot contract at Tinker AFB Expect CMS expansion to Tinker Fence Line during initial pilot contract period Establish proof of concept
•Mid-term Vision: Explore possibility of procurements for additional pilot sites
•Long-Term Vision: Firmly establish proof of concept within DoD Utilize lessons learned from pilot contract(s) Established regionalized CMS program available to all DoD customers
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
upstream downstream
CMS Expectations
Looking to industry expertise to help DoD achieve these objectives.
• Streamlined purchasing
• High material availability rates
• Minimize waste and costly disposal
• Utilize greener products
• Improve business, operational and regulatory record keeping
• More informed organizational decision making
• Continual process efficiencies
• Cost savings
Chemical Lifecycle
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Synopsize 14 Sept 2007
Issue RFP 10 Dec 2007
• Pre-Proposal Conference 8 & 9 Jan 2008
• Close RFP 11 Feb 2008
• Evaluation / Source Selection Feb – April 2008
• Negotiations (if needed) 31 May 2008
• Contract preparation/review/clearance 30 June 2008
• Contract Award 31 July 2008
CMS Timeline
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
General Information
Website:• http://www.dscr.dla.mil/UserWeb/FAGA/cms.htm
Check - Your responsibility All information and questions to be posted
• Sign in sheet
• Tour
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Networking Networking
• Opportunity to market
• Personal relationships, word of mouth and on-going involvement in the business community will facilitate finding good teaming partners
• Other resources include: - business associations - publications - online services; i.e. SBA’s SUBNET and CCR Dynamic Small Business Search
• Ways to team - joint venture - subcontracting
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Explore Subcontracting OpportunitiesExplore Subcontracting Opportunities
• Subcontracting is a competitive field.
• Prime contractors look for reliable companies that provide quality goods and services on deadlines.
• Understand the terms & conditions of a contract with the prime contractor before serving as a subcontractor.
• FAR Subpart 19.7 The Small Business Subcontracting Program
Point of contact for DLA Small Business questions – Crystal Ober, [email protected]
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Acquisition Overview
• Full range of commercial services EXCLUDING disposal
• 76th Maintenance Wing and STRATCOM Wing-1 (Navy Tenant) with possible expansion to other Tinker base organizations
• Type of contract: - Service contract with supply component - Fixed price for services and government sourced items and fixed price with EPA adjustments for commercially sourced items
• Full and open competition/Unrestricted
• Contract Term: - 3 year base - Two 1-year option periods
• Maximum 5 Year Contract Value: $125M
• Guaranteed Minimum: Three months of management fees. No guaranteed minimum for option periods.
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Statement of Work (SOW)
• Chemical Management Service Requirements:
- Demand Analysis and Forecasting- Purchasing- Inventory Management- Distribution to Point of Use (POU)- EH&S Management Support- Continual Improvement Activities- Information Technology Capability
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Material Sourcing
• Customer Owned Inventory
• DLA/GSA sourced first pass sourcing pass through cost
• Commercially sourcedcompetitively priced - Core List pass through costEPA applies- DSCR clause 52.216-9G46
• See SOW 3.3.2 for additional information
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Information Technology
• Electronic means for ordering, billing, payment, data tracking and reporting (including environmental)
• Order DLA items via MILSTRIP requisition
• Possible requirement for live test demonstration
• Mandatory requirement for use of Hazardous Material Management System (HMMS): Vendor owned systems can be used in addition to HMMS but
not in lieu of HMMS Current Air Force mandate does not allow for patches into or
replacement of legacy systems.
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Performance Metrics & Reporting
• Five standard metrics: SOW 4.0- Customer wait time/issue time- Supply effectiveness rate- Material availability rate- High severity outage response- Overall material cost savings
• Reporting requirements:- General (Section 4.2.1)- Financial (Section 4.2.2)- EH&S (Section 4.2.3)
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Pricing
• Management Fees – Fees paid to CMS provider to manage chemical lifecycle (not to include material costs)
- Two scenarios for the 76th Maintenance Wing -Vendor delivers to but does not manage HAZMAT Distribution Supply Center (HDSC) -Vendor delivers to and mans HDSC- One scenario for the Navy Tenant -Vendor delivers to and mans HDSC
• Transition Fee – the fee to cover transition and implementation costs (one time fee – not recurring)
• Inventory Carrying Cost Fee - the fee for cost of capital for vendor to own
warehouse inventory to meet customer delivery requirements
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Pricing (continued)
• Material pricing – unit pricing for Core List of items in Bill of Materials (BOM)
- Master list of all active items- DLA/GSA items (Standard Unit Price)- Core List – commercial items with demand; pricing must be provided for these items with an offer
- Un-priced Items - commercial items without demand; remain inactive until added when item needed and priced negotiated
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Transition
• Post-Award Conference – 30 days after award
• Establish drawdown procedures for Customer Inventory
• Establish methodology for pricing inactive or new NSNs
• Systems Interface and Integration
• Development of Operating Procedures
• Overview of Reports
• Conflict Resolution Plan
• SOW 7.1
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Section L – Instructions on Proposal Structure
• Format (5 volumes)
• Page limitations and layout
• Volume structure
• ContentVolume I – executive summary, signed RFPVolume II – technical proposal (100 page limit)Volume III– business/management proposal (75 page limit)Volume IV – past performance proposal (30 page limit)Volume V – price proposal (unlimited)
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Section M- Evaluation Procedures
Technical Past Performance- Demand analysis & forecasting - Relevant past performance
- Purchasing of HAZMAT - Past compliance with sub-
- Inventory management contracting goals- Distribution to point of use (POU)- Environmental management support- Continual improvement activities - Information technology capability Business/Management Price - Organizational structure - Material - Second tier relationships - Management fees - Implementation plan
All 4 factors approximately equal to each other with the three non-price factors, when combined, being significantly more important than price
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
• Timeline
• Pilot Program
• Collaboration Among DLA, AF, and Navy
• In-line with DoD Transformation efforts
• Tour
Summary
http://www.dscr.dla.mil/UserWeb/FAGA/cms.htm
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Points of Contact
Contracting Officer: Cindy Lantz, [email protected]
Acquisition Specialist: Diane Sadler, [email protected]
Project Officers: Mike Gargiulo, [email protected]
CDR Steve Morgan, [email protected]
DLA Headquarters POC: Sam Henderson, [email protected]
Website:• http://www.dscr.dla.mil/UserWeb/FAGA/cms.htm
All questions must be submitted in writing.
Offers must be submitted by 2/11/08 2pm EST.
DLA's Aviation Supply & Demand Chain ManagerDLA's Aviation Supply & Demand Chain Manager
Questions & Answers
http://www.dscr.dla.mil/UserWeb/FAGA/cms.htm
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