VIRTUAL PRIME VENDOR Part 1 OF 2 The Defense Logistics Agency (DLA) serves within the Department of Defense (DOD) as a wholesale level industrial distributor of spare parts, maintenance, repair and operating supplies for the military services worldwide. DLA is interested in demonstrating unique and innovative approaches for providing logistics support to the military services that will maintain the highest state of weapons systems readiness, to include surge and sustainment capability to enhance the defense mobilization base by improving the logistics support provided to the military service s maintenance facilities. These facilities perform the major repair and/or rebuild of weapons systems and major components. To facilitate performing to the expected objectives of the program, new strategies are required utilizing advanced manufacturing, distribution, and materials management techniques to improve repair turn around time, and the ability of the industrial base to respond to changes in customer demand and effectively reduce the overall cost to the government. This requires integration of commercial and military supply and distribution systems, electronic data interchange, management of demand based customer inventory and direct vendor delivery. The desired level of performance is broadly categorized in terms of improving order fulfillment cycle-time, product quality, total cost, and the capability to deliver other information and/ or technical support services. The private sector provider of this service will act as an extension of DLA and will be expected to establish a partnership between the maintenance customer, DLA and other supply sources; and to use innovative, state of the art methodologies to reorganize, synchronize, supplement and otherwise improve the effectiveness of the support provided by the existing DOD supply chain processes and systems. The purpose of the Broad Agency Announcement (BAA) is to announce that DLA is soliciting concept papers for this effort under the Virtual Prime Vendor Program (VPV). Concepts should be directed at improving total logistics for currently assigned weapon systems, subsystems, weapon and line replaceable assemblies, and refurbished or remanufactured end items. Because DSCR has already successfully demonstrated the implementation of bold Business Practice Changes, as acknowledged by an independent government audit agency, DSCR has established itself as an organization to effect change. DSCR in pursuit of logistics affordability, is entaining concept papers that address command goals. A key goal is to develop a process which can be exported from a single demonstration site to other DOD locations and/or will serve as an example for expansion to other weapons systems programs. The successful VPV contractor(s) will be expected to provide and/or coordinate the supply support effort for the full range of parts and components consumed in operation and repair of the weapon system and/or its major components. Initially the use of the existing DLA inventory of parts and/or long term contracts is encouraged to avoid unnecessary materials and/or operations expense for DOD. Once the DLA pipeline is exhausted, it will be incumbent on the VPV contractor to determine the best method of support to meet performance criteria of the program. Teaming arrangements between developers, systems integrators, universities, research institutes, or other collaborators, are encouraged, and single offerors should anticipate the possibility of being expected to work collaboratively with other organizations if they receive an award. Program Scope: Management of the supply networks has undergone radical transformation over the past decade. Driven by reducing budgets, global competitive pressures, and correct sizing of the DoD, US OEMs and their associated suppliers must move rapidly from the arms length relationships of the past decades to a more cooperative relationship of today. In today's information age with new approaches, the new watchword is virtual enterprise . Virtual enterprises are by definition dynamic entities. They form in response to a specific business need and either dissolve or transform themselves when the need is met. Technologies and business practices which have a significant impact on key logistics metrics, that deal with the complexity and dynamics of the entire supply chain, that have real time flexible scheduling, and that have management solutions that are predictive and adaptive and can potentially meet the current DoD needs will be given highest priority. Proposals are to include cost data in relation to overall cost reduction or cost avoidance to the program. Contract award(s) if may be made under FAR 6.203-3. Progress, and performance, will be assessed monthly and action items will be determined to ensure timely completion of the project and to capitalize on findings. Each year of the contract must have performance objectives which are a part of the option decision evaluation, to include achievement of socioeconomic objectives. Evaluation Criteria:: Concepts will be evaluated on technical meritand price or cost. The technical evaluation criteria are listed below in descending order of importance: 1. Enterprise Linked Logistics (Concept) 2. Information Technology 3. Management Plan 4. Industrial Readiness 5. Past Performance 6. Competition Goals 7. Small Disadvantaged Business 8. DLA Mentoring Business Agreements. During the initial development of concepts, complete pricing may not be available or realistic. Those concepts, if selected for full discussions (full concept papers) will provide pricing proposals as part of the negotiation process. Offerors are encouraged to recommend pricing arrangements suitable for the concepts selected for demonstration. As pricing proposals are evaluated, the technical merit or expected performance outcomes will be considered more important than price. Those proposals committed to product or full cycle cost reductions over the demonstration period will be considered more favorably. Customer affordability and cost/price realism are also important factors. The final award decision will reflect an integrated analysis of expected outcomes and the price to achieve these results.

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