Solicitation Number: SPAPR1-18-R-002U Estimated Award Date: 31 OCT 2019 Description of Product(s)/Service(s)/Program: A nine (9) (5 year priced base period and a 4 year unpriced option period) year Firm Fixed Price Incentive Fee proposal for the acquisition of a comprehensive and holistic performance based supply chain management program in support of the AH-64 and CH-47 aircraft parts with The Boeing Company (cage: 1PXV4), estimated at $450 million. Contracting Officer: Irena Cepele:
[email protected]; 215-737-3762 Justification: The Contracting Officer has found the bundling of this requirement necessary and justified based on the following: - Market Research result: Potential Sources DLA Aviation performed a comprehensive market research effort to identify potential sources in accordance with FAR Part 10.0002(b)(2). DLA Aviation issued a Federal Business Opportunities (FedBizOpps) Potential Sources Sought (PSS) advertisement on December 07, 2017 as required by FAR 5.201. This market research resulted in one response from The Boeing Company. The results of the market research efforts did not identify any source other than Boeing with the capability or interest to meet the entirety of the requirement. - Cost Savings: The anticipated 9 year (5 year priced base period and a 4 year unpriced option period-for a total of approximately 1,403 NSNs) contract for this effort will be awarded against the Boeing Captains of Industry (BCOI) contract, SPRPA1-14-D-002U. The PCO has determined to proceed with the initiative based on a minimum estimate of 5-10% in cost savings per FAR 7.107, which reflects the expected savings associated with the various efficiencies that are anticipated under the COI. However, DLA expects to see cost savings closer to 20% as achieved on Performance Based Increment 1 through 4 of the COI contract. The value of the anticipated savings meets the threshold for measurable substantial benefits required to justify a bundled acquisition. - Historical Acquisition: The three year total dollar value of the historical DLA contracts awarded to support the AH-64/CH-47 Consumables Supply Chain includes an item population of 603 NSNs valued at $27.9M, with approximately $10.44M going to small business, an average of $3.48M per year. As noted above, the total number of NSNs for this requirement is approximately 1,403 (refer to attached list of NIINs) which includes material currently being provided by The Boeing Company directly to Corpus Christi Army Depot (CCAD). The 3 year acquisition history shows that there will be only minimal impact for small businesses. Out of the 186 sub-contractors, only 2 small businesses were doing over $1M in business with the Government. - Small Business Action Plan Under this program, Boeing is incentivized to actually increase workload to the small business sector. The requirement for compliance in small business subcontracting will be closely monitored under COI. The benefits of having Boeing act as the integrator with "single point accountability" for the supply chain transfers to the small business community in a variety of ways. Under COI Phase I, Boeing introduced competition at unprecedented levels in an effort to reduce costs. The introduction of competition to requirements previously subcontracted under single source scenarios resulted in small business statistics which are an increase from those previously achieved by Boeing. - Other matters: The proposed acquisition cannot be divided into reasonably small lots (not less than economic production runs) to permit offers on quantities less than the total requirement. Delivery schedules cannot be established on a realistic basis that will encourage small business participation to the extent consistent with the actual requirements of the Government. Finally, the proposed acquisition cannot be structured so as to make it likely that small businesses can compete for the prime contract.