NOTICE OF MARKET RESEARCH Katz 215-637-5000) NOTICE OF MARKET RESEARCH The Defense Industrial Supply Center, Metals and Metal Products Group is the Inventory Control Point for ferrous, non-ferrous and precious metals including Federal Stock Groups 35 and 36. Our intention is to issue a Request for Proposal (RFP) for the award of one, or possibly multiple contracts to acquire bulk metal and metal products for Government installations worldwide. These installations are mainly military bases throughout the United States. Our largest customers include the Puget Sound Naval Shipyard in Bremerton, WA, the Norfolk Naval Shipyard in VA, the Anniston Army Depot in AL and Tinker Air Force Base in Oklahoma City, OK. We also serve smaller customers such as the NASA Langley Research Center in VA and McGuire Air Force Base in NJ. The contract(s) are to replace expiring Direct Vendor Delivery contracts. We are issuing this Notice of Market Research as a vehicle for industry to provide recommendations/comments on the best business practices for supplying this material to our customers. History: Prior to 1333, most metals purchased by the Defense Industrial Supply Center were bulk purchases placed into Government warehouses for distribution to our customers. After 1333, a Direct-Vendor Delivery (DVD) program was initiated to reduce inventory and total system costs. Long-term, Indefinite Quantity Contracts (IQCs) were established with vendors for specific National Stock Numbers (NSN's, which are Government part numbers). These NSN's are entered into our Paperless Ordering Procurement System (POPS) and when material was requisitioned by our customers, a delivery order is electronically issued to the contractor. The contracts are regional, based upon either East or West of the Mississippi River. Material is delivered in 7 or 23 days directly to the ordering activity. Most orders are for small quantities of material, one or two sheets or bars of metal. Our total metal sales in FY 37 was $54 million and this amount is expected to increase to $100 million by FY 2000. The type of material currently on DVD contracts are as follows: Federal Stock Class Material 3505 Non Electrical Wire 3510 Bar 3515 Carbon Steel Plate 3520 Structural Carbon Steel 3535 Aluminum Sheet and Plate 3530/3540 Aluminum Extrusions The primary concern of our customers is the quality of the metals ordered. To assure the quality of material, a Qualified Supplier List (QSL) has been established. Before receiving an award, a contractor must be approved for the Defense Industrial Supply Center QSL. For further information, please contact Elsie Dennis at 215-637-3364.

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