Pre-Proposal Conference Presentation
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Pre-Proposal Conference Presentation Pre-Proposal Conference Presentation Presentation Transcript

  • 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
    • 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 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_address]
  • Acquisition Overview
    • Full range of commercial services EXCLUDING disposal
    • 76 th 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 sourced
      • competitively priced - Core List
      • pass through cost
      • EPA 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 76 th 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
    • Content
        • Volume I – executive summary, signed RFP
        • Volume 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_address]
    • Acquisition Specialist: Diane Sadler, [email_address]
    • Project Officers: Mike Gargiulo, [email_address]
    • CDR Steve Morgan, [email_address]
    • DLA Headquarters POC: Sam Henderson, [email_address]
    • 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