Direct Vendor Delivery Contract for A-CRI System

Direct Vendor Delivery Contract for A-CRI System

Organization: NAVSEA, NAVICP

Team Name: Acoustic Rapid Commercial-off-the Shelf (COTS) Insertion (A-CRI) Team

Related Acquisition Topic(s): Cycle Time Reduction (CTR), Direct Vendor Delivery (DVD), Performance Based Logistics

Description:
Recently the ARCI team concluded negotiations and signed a unique submarine direct vendor delivery contract with Lockheed Martin Undersea Systems of Manassas, VA. The negotiations have resulted in a long term agreement with a first year order of $1.98 million. This is the first NAVICP DVD candidate to use the new NAVSUP Business Case Analysis (BCA) process. This contract is unique from the standpoint that there was no NAVICP-M inventory investment. Over the 5 year BCA period, the NAVICP-M will have a cost avoidance of approximately $4.8 million.

ARCI is made up of Commercial Off the Shelf (COTS) and Non-Developmental Item components which replaced major portions of the AN/BQQ-5&6 and AN/BSY-1 sonar systems on SSN 688CL and SSBN 726CL submarines. The system presently has 119 Lockheed Martin depot level repairable and consumable parts included in this order. This Cost Plus Fixed Fee order is unique based on the following:

• Actual "Fee" applicable to order has a sliding scale. Fee received by contractor will be based on the actual number of requisitions received by Lockheed Martin over a 12-month period.
• Requisitions pass to contractor automatically via the DISC Automated Message Exchange System.
• Lockheed will use production test bay assets to fill requirements (avoiding a wholesale inventory investment of $940K in the first year alone.
• ARCI will use a priority shipment of carcasses back to Lockheed within 35 days.
• Lockheed will fill Priority 1-6 requisitions within the continental United States within 2 working days and 3 working days if requirement is in Hawaii.

NAVSEA, NAVICP

Acoustic Rapid Commercial-off-the Shelf (COTS) Insertion (A-CRI) Team