Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF FEBRUARY 28,2000 PSA#2545

Naval Inventory Control Point, 700 Robbins Avenue, Philadelphia, PA 19111- 5098

26 -- PERFORMANCE BASED LOGISTICS FOR NAVAL AIRCRAFT TIRES SOL N0038300Y8551 DUE 032200 POC Mr. Jerry Buday (215)697-6511 WEB: NAVICP Business Opportunities -- Special Notices, http://www.navicp.navy.mil/business/index.htm#specialnotices. E-MAIL: gerald_buday@icpphil.navy.mil, gerald_buday@icpphil.navy.mil. The Naval Inventory Control Point, Philadelphia (NAVICP) provides worldwide material logistics support to over 3,600 Navy and Marine Corps aircraft. As part of this mission, NAVICP manages 23 lines of aviation tires with annual sales of approximately $15.9 million, including $1.1 million in retread tire sales. This function is currently performed in-house using military and civil service personnel managing an inventory of 35,500 tires stored in government warehouses. Through the use of a commercial supply chain integrator, NAVICP believes significant reductions in inventory investment and total program costs can be achieved. To that end NAVICP is exploring the feasibility of a Performance Based Logistics (PBL) contract for Naval tires. NAVICP is issuing to industry a Request For Information (RFI). A (draft) Statement Of Work (SOW) that NAVICP is considering for use for its PBL contract can be found at http://www.navicp.navy.mil/business/index.htm#specialnotices. The purpose of this RFI is to request Rough Order of Magnitude (ROM) prices from industry to perform the PBL. This SOW describes the PBL scope of effort to provide, on a Firm Fixed-Price basis, contractor logistic support for aircraft tires. This SOW outlines basic considerations to arrive at the most cost-effective supply support strategy so that industry can submit a ROM to NAVICP. The PBL will be to support fleet readiness, and reduce logistic support cost. It is anticipated that the primary methods for accomplishing this will be through improvements to forecasting methods, streamlining the logistics pipeline by eliminating the wholesale operation and significantly reducing the retail operation, and reduction of both infrastructure and capital investment costs while providing responsive and timely support to the fleet in accordance with the SOW. The SOW is the vehicle being used to generate a ROM price from industry. A ROM requires an interested party to determine if it has the assets available to support the SOW and the cost associated with the effort. The ROM will be used by NAVICP as one of several factors to determine the feasibility of this PBL effort. A formal Request for Proposal (RFP) will follow if NAVICP determines to move forward with the PBL initiative. Annual Firm Fixed-Pricing shall be established for PBL Level Of Performance addressing normal operations to support a forecasted demand over a fifteen-year ordering period to include a five-year base ordering period, and two five-year options, each with a five-year ordering period . NAVICP requests a ROM price broken down by year to perform the PBL effort. The government will own all information provided by industry and reserves the right to use this information in conjunction with or on future procurements. The government will not provide any funding for industry's effort in this endeavor. We desire the ROM price in writing by close of business, Wednesday, March 22, 2000. Questions or clarification surrounding this effort should be submitted in writing to Mr. Jerry Buday via email at gerald_buday@icpphil.navy.mil. Mr. Buday can be reached at (215) 697-6511 for general information. Posted 02/24/00 (W-SN428306). (0055)

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