Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF SEPTEMBER 8,1999 PSA#2427

Defense Supply Center Columbus, PO Box 16595, DSCC-PBAB, Columbus, OH 43216-6595

25 -- VEHICULAR EQUIPMENT COMPONENTS SOL SP0700-00-R-0099 POC Michael Turner, 614-692-7349 The Defense Logistics Agency (DLA) has developed a logistics support concept known as Prime Vendor. The main goal of this effort is to provide improved logistics support to the military customer by applying commercial distribution systems and practices to the military support infrastructure. A "Prime Vendor" is awarded a contract to provide integrated logistics support for a region, product line, or specific customer. The Prime Vendor assumes total supply chain management which includes inventory management, distribution, parts acquisition, and material forecasting. A significant feature of Prime Vendor contracts is that the customer interfaces directly with the Prime Vendor, thus the contracts will be as flexible and broadly stated as possible, so that the Prime Vendor can provide the support required by the customer, to include changes in the method of support as the customer's environment changes. The benefits expected from a Prime Vendor arrangement are significantly decreased order ship time, Government reductions in wholesale and retail inventory, and an overall reduction in Government costs to provide logistics support. The Defense Supply Center Columbus (DSCC) has DLA Inventory Control Point responsibility for land based vehicles and weapon systems. DSCC has developed the Fleet Automotive Support Initiative (FASI), which applies the Prime Vendor model to its support of customers' automotive fleets. Under FASI, the continental United States has been divided into five regions. This solicitation will result in Prime Vendor contract awards in two of the regions; i.e., Southeast and Southwest. The initial contract period will be for two years beginning on the date of award, with three additional option years available. Each Vendor will be required to support the identified vehicles at military installations within the region(s). Contract(s) will result with award for an integrated supply chain manager, under the Virtual Prime Vendor (VPV) program. The VPV should be capable of providing integrated logistics support for automotive/vehicle parts within a particular region. The VPV must be capable of achieving a 98% on-demand issue rate; have the ability to forecast the customer's future needs and develop required levels of inventory. The VPV must be capable of providing value added anticipatory services such as, technical support, local Customer Service Representatives and meet surge and sustainment requirements during times of mobilization. As DSCC solicits each region, a lead military installation will be identified as the initial site. The lead site will specify vehicles and customer requirements to be supported. Contract award for the region will be based on the evaluation of Vendors' proposals for the initial site's requirements. After contract award, and once the initial site is implemented, other customers' requirements within the region may be added to the contract. These sites may include any DoD activity, as well as the Reserves and National Guard. The solicitation will be solicited on an unrestricted basis. Copies of the solicitation may be obtained from DSCC, ATTN: Industry Coordination Office/PBAB, P.O. Box 16704, Columbus, OH 43216-5010 or by fax 614-692-2262. Estimated Closing date for the solicitation is August 18, 1999. See Note(s) 12 and 26. Posted 09/03/99 (W-SN376542). (0246)

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