Pre-Proposal Conference Presentation

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


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


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


• 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?


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


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


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


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


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


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


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


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]


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.


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


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


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.


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)


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


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


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


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)


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


• 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


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.


Questions & Answers

http://www.dscr.dla.mil/UserWeb/FAGA/cms.htm

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