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> Home / Archives / Logistics / Contract Logistics Support / Contract Logistics Support (CLS) / Competitive Procurement of Contractor Logistics Support

Competitive Procurement of Contractor Logistics Support

Competitive Procurement of Contractor Logistics Support

Organization: NAVAIR, PMA-273

Team Name: T-45 CLS Competition Team

Related Acquisition Topic(s): Acquisition Practices Streamlining, Contract Logistics Support (CLS), Cycle Time Reduction (CTR), Integrated Product and Process Development (IPPD), Paperless Contracting, Performance Based Acquisition

Description:

PMA-273 has incorporated several streamlining improvements in the past seven years, all aimed at steadily reducing or controlling the total ownership cost of the T45TS. The most recent is to move the T45 Contractor Logistics Support (CLS) effort from a sole source to a competitively procured contract, to allow the Navy to reap the savings associated with a competitive environment. Using formal NAVAIR source selection procedures, the team, acting in concert with other government and industry representatives, formulated and executed a procurement effort based on full and open competition.

The T-45TS CLS Contract provides for one base year and four option years. The contractor is required to provide safely flyable aircraft to the Navy's daily flight schedule and provide high quality Ground Training Systems (GTS) equipment necessary to complete the daily training schedule commitments at NAS Kingsville and NAS Meridian. The contractor provides all materials, services, tools, and data required to support and maintain T-45TS, with the exception of Government Furnished Equipment (GFE) and those materials and services provided separately under the Integrated Logistics Support (ILS) and production contracts. Maintenance scheduling and T-45TS availability are the sole responsibility of the contractor.

Our CLS acquisition strategy focused on two main tenets:

  • a commitment to understanding and meeting the needs of the Chief of Naval Air Training (CNATRA). CNATRA representatives were involved with all aspects of the competition, from the initial draft of the Request for Proposal (RFP) and Performance Work Statement (PWS) to the subsequent Source Selection Advisory Council and Source Selection Evaluation Board teams.
  • extensive coordination with industry during RFP and PWS development. This included hosting a Pre-Solicitation Conference/Aircraft Day, establishing a Competition Library, and setting up an Internet web site that contained Draft Acquisition Materials for industry. These initiatives provided the means for industry to offer comments and suggestions for improvement and to streamline the acquisition process. Because of them, we were able to ensure the resulting contract fully met the needs of the customer.

The acquisition strategy developed by the T-45TS CLS Competition Team resulted in a contract based on best value to the Government, price savings, reduced cycle time, and ensured selection of the best technically qualified contractor. The competition of the $654 million T-45TS Program was an unqualified success, attested to by the following:

  • Savings of $38.4 million through reduction in profit and changing specific line items from Cost Reimbursement to Firm Fixed Price efforts.
  • Only a 4% increase in total price while providing 19% increase in total flight hours flown.
  • $184 cost per flight hour reduction for Firm Fixed Price Items
  • 39% reduction in proposal submission time
  • 20% reduction in total Contracting cycle time
  • 6 man year reduction in Government labor efforts over 5 years (Technical, Contracts, Administrative personnel)
  • $50K travel cost avoidance over 5 years
  • Contract incorporated both FFP and Cost plus Fixed Fee CLINS to more effectively manage risk involved to both the government and contractor.
  • Continuous dialog with industry established throughout the process - approximately 90% of industry comments incorporated into the RFP
  • Introducing specific delivery requirements that will enable the government to more effectively manage risk when negotiating follow on contracts. Proposal evaluations performed "paperless" using NAVAIR NESS system
  • Reengineering Statement of Work into a Performance Based Work Statement
  • CLIN reduction from 46 to 25 lines

By involving the customer early in the process; making use of electronic media, a Competition web site, draft acquisition materials; and embracing a "One Team" approach, the CLS Competition Team was able to conduct and complete a full and open competition in just 5 months time.

NAVAIR, PMA-273

T-45 CLS Competition Team



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