Seaport-Enhanced Procurement for 8(a) Small Business Set-Aside: The Naval Surface Warfare Center, Port Hueneme Division is preparing a solicitation for a task order to provide Engineering resource to install, test and integrate Tactical TOMAHAWK Weapons Control System (TTWCS), TOMAHAWK Communication Management System (TCOMMS) and Naval Fires Control System (NFCS) equipment on US Navy ships. The TTWCS upgrade requires that the legacy TOMAHAWK Weapons Control System (TWCS) and the Advanced TOMAHAWK Weapons Control System (ATWCS) be removed, refurbished and provided as Government Furnished Equipment (GFE) to the contractor building and installing the TTWCS equipment onboard US Navy ships. The TCOMMS upgrade is installed in conjunction with TTWCS. The NFCS equipment interfaces with TTWCS and provides interface to the MK86 Gun Fire Control System. These Systems are being updated to take advantage of modern Commercial Off-the-Shelf hardware and software to improve the overall system operation and reduce costs over the life cycle of the sys! tem. System installations shall meet the requirements of Technical Specification No. 9090-310C for the CG-47 Ship Class and Technical Specification No. 9090-310D for the DDG-51 Ship Class and shall be accomplished by the Alteration Installation Team (AIT). This will be a Nationwide 8(a) Small Business Set-Aside competitive procurement. GLOTECH, Incorporated under Contract N63394-04-D-1268, is currently performing the work. The performance period will be 3 years and include a 24-month (2 years) Base period and a 12-month (1 year) option period, with period of performance from August 2005 through August 2008. A Cost Plus Fixed Fee type of order is anticipated. This will be a Best Value Source Selection on the basis of Technical & Management Capability and Past Performance. It is anticipated that the Request For Proposal will be available in Seaport Portal in July 2005, and will be open for 14 workdays. This Solicitation is open to Nationwide 8(a) Small Business Seaport-Enhanced Geographical Zone 6 Multiple Award Contract holders. Cost Reduction Plans: Note: This is a proposed Cost Reduction Plan to be tailored and included in future procurement evaluation factor. The Government is requesting from prospective offerors to provide input or comments for inclusion to the solicitation. FACTOR 1B, COST REDUCTION PLANS (CRPs). a. The contractor shall identify from the requirements contained in Section C no fewer than one process for a cost reduction plan (CRP) to be carried out in the base period of this task order using Lean Methodology, Six Sigma techniques, Business Process Reengineering (BPR), or other industry-recognized process improvement technique(s). Proposals that fail to provide at least one CRI that meets criteria stated herein will no longer be considered for award. b. In a maximum of two pages per identified process, the contractor shall identify (1) The process to be improved during the base year; (2) The person(s) or consultant(s) who will lead the process improvement effort along with his/her/their qualifications (training and nature of any previous similar efforts); (3) The type of process improvement technique(s) to be applied; (4) A timeline for implementing the improved process; (5) A timeline showing anticipated point at which cost savings can be realized to the Government; (6) The metrics that will be used to manage the process and show cost savings; (7) A rough order of magnitude, expressed in hours, dollars, or percent of effort, of anticipated savings; and (8) A rough order of magnitude, expressed in hours, dollars, or percent of effort, of the planned investment. Investment cannot exceed 33% of the planned savings. c. Processes identified for CRP and approach to process improvement shall be evaluated on (1) Scope of effort, identifying process by paragraph(s) of Section C; (2) Realism of potential cost savings and a minimum 200% return on investment (ROI); (3) Realism of approach to process improvement; and (4) Total overall savings to the Government; (5) Use of existing technology; (6) Traceability/auditability of process improvement; and (7) Implementation costs and associated costs. d. No later than 45 calendar days after receipt of order, the contractor will meet with the Task Order Manager (TOM) and technical points of contact selected by the TOM to review the planned CRPs. At that meeting, the contractor shall present a written plan for achieving savings under the CRP. That plan will include (1) A process chart showing the steps of the current, existing or legacy (as-is) process identified in the proposal; (2) A list of personnel (both contractor and Government, if a joint team is working the process) who are participating in the CRP; (3) A schedule of planned CRP events; and (4) The metrics that will be used to manage the process and show cost savings e. Subsequently, the contractor will meet with the TOM and his/her selected technical POCs by the 15th day of each month to review progress toward the planned cost savings goals. f. Within 5 business days of implementation of the improved process, the contractor shall meet with the TOM and technical POCs and detail (1) The revised, reengineered or improved (i.e., - to-be) process; (2) The schedule of deliverables, products or services generated by the process; (3) The planned accrual of cost savings; and (4) The metrics that will be used to manage the process and demonstrate cost savings g. Within 30 business days of the conclusion of the base period and any exercised option periods of this task order, or within thirty business days of the conclusion of any discrete reengineered process task within this task order, the contractor shall present, in writing, to the TOM a statement with supporting billing information showing any contractor cost reductions realized as the result of CRPs carried out under plans identified in the proposal. Such cost reductions must be accompanied by (1) A description of the modified or reengineered process, showing all significant process steps to the level of detail necessary for a qualified worker to understand what actions the steps require; (2) An explanation of how the process improvement lowered contractor costs; and (3) A breakdown of savings to be returned to the Government via de-obligation of funds. h. Upon validation of the base year(s) cost savings by the Government, 30% of the amount de-obligated to the Government shall be returned to the contractor. i. If any option period is exercised, the contractor shall, within 30 calendar days of the start of each option period, identify to the TOM one additional process from Section C to undergo CRP using Lean Methodology, Six Sigma techniques, Business Process Reengineering (BPR), or other industry-recognized process improvement technique(s). These processes may be either (1) processes that have not previously been improved under the provisions of this task order, or (2) processes previously improved that the contractor identifies for further improvement. The provisions of paragraphs (b) through (g) above apply to all option periods exercised. j. Upon validation of the cost savings by the Government, 35% of the amount de-obligated to the Government during the first option year, if exercised, shall be returned to the contractor, and 40% of the amount de-obligated to the Government during the second and subsequent option years, if exercised, shall be returned to the contractor. k. Savings returned to the contractor will occur only for the Period of Performance or Option Period in which the process improvement occurs. Validated cost reductions on any process will, upon the exercise on any subsequent option year, become the new base price for that process for that year and no CRP incentive monies shall be paid in that year and subsequent years, if options are exercised. All validated cost savings realized via CRP for any process during the task order base year shall be counted for incentive payment during that same base year only. No process CRP savings monies shall be returned to the contractor in task order option years beyond the base or option year in which the CRP for that process occurred, unless a subsequent option year CRP on that process garnered further validated savings. All process improvements are identified and included in option years by contract modification. l. All process improvements must be sustained throughout the life of the task order, including all option years that may be exercised.
