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83		20080905233743	https://web.archive.org/web/20080905233743/http://www.defence.gov.au/dmo/asd/c130j/Industry_Brief_12Sep07.ppt	2008-09-05	2008-12-07	500	RAAF C-130J Hercules Through Life Support Industry Briefing 12 Sep 2007 Ms Beverley Kerr Project Manager C-130J Through Life Support Project Administration • Industry Briefing is Unclassified • Hold all questions until end of presentation • Extracts from the presentation will be posted on the website Disclaimer Industry briefings are conducted for the purpose of providing background information only. Tenderers must not rely on a statement made at the Industry Briefing or during and/or private meetings as amending or adding to the RFT, unless that amendment or addition is confirmed by the COA in writing. The COA may, at it’s discretion and at any stage, terminate or amend the RFT process or participation by any company in the RFT process for any reason. Air Commodore Steve Drury Director General Airlift and Training Systems Welcome to Industry • C-130J provides a globally deployable combat airlift capability • Defence is seeking: – a whole of life support arrangement – the right partner/s – value for money – visibility of cost – contain support costs Ms Beverley Kerr Project Manager C-130J Through Life Support Project Industry Briefing Agenda • RFT Objectives, Structure and Scope • Industry Consultation • Conditions of Tender • Conditions of Contract • Government Furnished Facilities • Docking • Performance Based Contracting • Incentives • Liquidated Damages • Length of Contract • Cost Visibility • Phase In • OEM Specific Services • Schedule • Contact Details • Facilities Site Inspection • Questions RFT Objectives • Whole of life support arrangement for C-130J • The right partner/s – trust and communications • Value for Money solution • COA to understand cost drivers • Containment of support costs • Performance Based Contract/s • Inclusive and responsive COA/Contractor environment Value for Money • Comprehensive assessment that takes into account both cost represented by the assessment of price and value represented by technical assessment in the context of the risk profile presented by the tender. RFT Structure • Two completely separate RFT packages released 31 Aug 07: – RFT 1 ASD 10/2006: Entire TLS package with core engines costed separately and able to be excised, and – RFT 2 ASD 16/2007: Core Engines Maintenance package • The outcome will be either a single prime contract or two prime contracts – one for RFT 1 (Platform Prime) and one for RFT 2 (Engine Prime) • An initial VFM assessment will be made at the tender evaluation stage to determine the support solution. • Equally important will be the continuing assurance of value for money RFT 1 Structure • CD 1: Covering Letter, Conditions of Tender, Conditions of Contract, Cost Model • CD 2: Unclassified reference publications • CD 3: Data pack • CD 4: Lockheed Martin Original Equipment Manufacturer (OEM) publications • CD 5: Hangar 522 condition appraisal report RFT 2 Structure • CD 1: Covering Letter, Conditions of Tender, Conditions of Contract • CD 2: Unclassified reference publications • CD 3: Data pack RFT 1 Scope IN SCOPE OUT OF SCOPE Recurring Services  C-130J Airframe DM activities  AE2100 (Engine) DM activities  RI's (avionics, propulsions, hydraulics)  Engineering support  Publications and Drawing office  Airworthiness Management  Configuration Item Management  Supply support for DM  OM provisioning for C130J unique items  OM Provisioning for C130H + C130J common items  Project Management capability  GSE certification and management Ad Hoc Services  C-130J operational maintenance support  Incorporation of Block upgrades  Disposal  Surge  Provision for additional Aircraft  Provision for skilling COA staff – technical mastery  Other capability upgrades  C-130H DM activities  All T56 activities  Any support to other platform unique items  Simulator  Supply support for C-130H unique items  Training provided by 285 SQN  C-130J Block Upgrades concept and design  Joint User Group activities  Design Acceptance Representative functions RFT 2 Scope IN SCOPE OUT OF SCOPE Recurring Services • Deeper maintenance of AE2100D3 - core engines scheduled servicing - repair of AE2100D3 core engines • Engine condition reports • Provision of spares for use in Engine contractor facilities • Propeller Gearbox Adhoc Services • Provision for skilling COA staff – technical mastery • Whatever task priced services are in contract • Delivery of engine and propeller gearbox to and from repair venue • Removal and replacement of Quick Engine Change Unit from aircraft • Removal and replacement of engine and propeller gearbox from QEC • Field Service Representative • Propeller • Auxiliary Power Unit • Engineering Services • Spares support to COA (OM) Industry Consultation Feedback Key Elements of Conditions of Tender Contact Officer • The contact officer for RFT1 and RFT2 is the C-130J TLS Project Manager • All communications and questions concerning the RFT to Project Manager in writing: – to C130J.TLS@defence.gov.au or – Facsimile (02) 4587 2868 • No communications with any media, news or publishing organisation without prior COA approval • All submitted questions must be signed by a company representative • The COA may circulate tenderer’s questions and COA answers to other tenderer’s – no attribution Lodgement • Tenders must be lodged on or before noon (Canberra local time) on Thursday 13 Dec 07 at Tender Office in the Canberra Tender Room • COA may consider or exclude any late tenders from consideration • Tenders to remain open for acceptance for a period of no less than 12 months • COA may request an extension of tender validity period • Tenderers must lodge:- – 1x original hard copy – 2x hard copies of tender – 1x electronic copy (read only) in MS Office 2003 and/or MS Project 2000, and – 1x tracked changes version of Conditions of Tender and Conditions of Contract Commercial in Confidence Information • Tenderers must: – treat this RFT as Commercial-in-Confidence – not disclose or use that information except as strictly required for the purpose of developing a tender in accordance with this RFT – not disclose that information to another tenderer unless that tenderer is a member of a consortium which is preparing a tender in accordance with clause 4.10 – return original copies of the Deed of Confidentiality to the COA – ensure all companies to whom you pass any part of the RFT execute the Deed of Confidentiality prior to receipt of the RFT. A copy of the executed deed must be forwarded to the COA – security classified documents cannot be passed to third parties without the express written permission of the COA – Lockheed Martin original equipment manufacturer documents cannot be passed to third parties without the express written permission of the COA • The COA may exclude a tender if it fails to comply with the above guidelines. Use of Former Defence Personnel • Tenderers must seek written approval from the COA to use employees of Defence in the preparation of the tenderer response, if the person: – at any time during the six months immediately preceding the date of issue of this RFT, was an employee of, service provider to, or otherwise engaged by, the Department of Defence or the ADF (Employee of Defence) – at any time during the 12 months immediately preceding the date of issue of this RFT, was an Employee of Defence and: • has been involved in the planning or performance of the project or activity to which this RFT relates • has had access to ALSPO financial information • has had access to C-130J contracts • has audited ALSPO C-130J contracts • was normally employed at ALSPO • has worked on a C-130J contract development or renegotiation activity, or • has developed ALSPO policy – at any time, was an Employee of Defence involved in the preparation of this RFT or management of the RFT process. General Conditions of Tender • Tenderers must notify COA of any conflict of interest • Tenderers must submit unconditional offers • All GFI must be returned to COA by tender closing time • COA will not consider a tender for part of services • COA intends to enter into Contract with a single legal entity • Tenderers must not engage in collusive or anti-competitive conduct Alternative Tenders • COA may at its discretion consider alternative tenders providing tenderers: – have also submitted a compliant tender that conforms to the requirements specified in this RFT – demonstrate that such alternative solution may be more beneficial to the COA than the requirements specified in this RFT and will deliver the outcomes sought by the COA – proposes a solution which satisfies the defence capability requirements including, without limitation, the functionality and any essential requirements contained in Attachment A of the draft conditions of contract – explains in detail the financial impact on the tender price, the schedule impact and any other consequences of the proposed alternative solution – includes sufficient information to allow a comparison of the alternative tender with tenders that fully address the requirements of this RFT (including the draft Contract). – Populate the cost model COA Rights • The COA may: – Terminate further participation in the RFT process by any tenderer for any reason, regardless of whether the tender submitted conforms with the requirements of this RFT – Permit any person to participate as a tenderer in the RFT process prior to the tender closing time – Reduce or amend the scope of both RFT 1 and RFT 2 packages – Accept a tender without prior notice to any other tenderer – Require additional information from any tenderer – Change the structure and timing of the RFT process – Conduct a subsequent procurement process and utilise information gained in this RFT process for that purpose – Request, attend or conduct any site inspections or observe any product, plant, equipment or other demonstration, trial or test – Utilise the services of third party consultants, professional service providers and/or Legal Service Providers (LSPs) to assist in the evaluation of tender responses and conducting contract negotiations. Responsibility for Tendering Costs • Tenderers participation in RFT process is at tenderer’s sole risk, cost and expense • COA will not be responsible for any costs or expenses incurred by any tenderer under any circumstances Screening Criteria • Tender declaration • Cost model • English • Deed of Confidentiality Tender Evaluation Criteria • Tenders that meet screening criteria will be evaluated against: – extent to which the tender meets the technical, functional, operational and performance requirements – extent to which the tenderer is compliant with the conditions of this RFT and conditions of contract and the assessed level of risk relating to the negotiation of a TLS contract acceptable to the COA – extent to which the tenderer is financially viable Tender Evaluation continued… – tendered prices and pricing structure – tenderer’s demonstrated technical and managerial capability – past performance of contractual obligations of the tenderer, any proposed Approved Subcontractors and any Related Bodies Corporate – intellectual property provisions Tender Evaluation continued… – tenderer’s demonstrated managerial capability to meet the Performance Based Contracting (PBC) contracted requirements – extent to which the tenderer proposes a communications strategy which reflects a willingness to enter into a long-term collaborative relationship with the COA and – Provision of an Ethics Letter Negotiations • COA may conduct negotiations with one or more preferred tenderers • COA will advise all tenderers whether they have been selected as a preferred tenderer or not should negotiations with preferred tenderers prove unsuccessful, COA reserves the right to go to the next company on the list • No debriefing of tenderers until after contract signature Key elements of Conditions of Contract (COC) RFT 1 COC • Outcomes focused • ASDEFCON Support template customised for legacy platform • Hangar 522 offered for Contractor to use (not mandated) • Performance Based Contract • Seven year base period and rolling length of contract • 18 month Phase In period • Contract Price: – Phase In milestone payments (no recurring price until OD) – Task price services – Survey and Quote previsions • Embedded COA personnel (Survey and Quote) • No mandated suppliers • GFI provided to tenderers • Docking offered for sale RFT 2 COC • Maintenance of Core Engine and Propeller Gearbox (not Propulsion System) • ASDEFCON support template customised for legacy platform • No GFF • Performance Based Contract • 7 year fixed term contract length • No Phase In period • Contract Price: – Recurring services = annual number of DM arisings X average cost per DM arising – Task priced = Foreign Object Damage (FOD) – Data Item Deliverable milestones – Survey and quote provisions • Tenderers to define FOD • Embedded COA personnel (Survey and Quote) RFT 1 Government Furnished Facilities • Hangar 522 offered for RFT 1 contractor use • No mandated facilities • Single C-130J Deeper Maintenance bay • RFT 1 Contractor responsible for remediation of H522 to Building Code of Australia requirements • Contractor to pay Defence Services Group (DSG) lease costs • DSG currently conducting condition appraisal survey of H522 -completed by Sep 07 • Survey results and lease costs to be provided to RFT 1 tenderers Oct 07 • DSG approval to offer facilities by Oct 07 • RFT 1 tenderers advised of DSG approval early Nov 07 C-130J Docking • 1x C-130J Docking available for purchase by RFT 1 Contractors from the COA • Docking purchased in Feb 07 • Constructed by Jetfield Constructions Pty Ltd • The Contractor is responsible for all costs of pick-up and transport of docking from Canberra Airport to Contractor Deeper Maintenance facility • Tier 1 Metrics (Payment Related Metrics) – Unavailable Aircraft Contractor (UAC) – Minimum Asset Level – Quick Engine Change Assemblies (QECA) – Recurring Failed Priority Demands for Like Items of Supply (RFPD) – Failure to Maintain Warehouse Minimum Levels (MML) – Mean Time Between Critical Failures (MTBCF) • PBC regime effective at contract Operative Date • MTBCF metric introduced at Effective Date + 3 years RFT 1 Performance Based Contract RFT 2 Performance Based Contract • Tier 1 Metrics (Payment Related Metrics) – Minimum Asset Level – Engine Power Section (MAL-EPS) – Minimum Asset Level – Propeller Gearbox Assembly (MAL- PGA) RFT 1 Incentives • UAC – COA will pay incentives payments when Contractor achieves requested performance in excess of the Daily UAC contracted level – No incentive payment will be paid for performance in excess of Daily UAC contracted level, where the COA Representative has not requested such performance • MTBCF – Where the Contractor’s quarterly scored MTBCF achieved performance is greater than the quarterly contracted level MTBCF for all four performance review periods within an annual performance review period, the COA will make an incentive payment to the Contractor. Liquidated Damages • RFT 1: – Unavailable Aircraft Contractor (KPI 1) – Failure to achieve/maintain AEO status – Termination for failure to achieve Operative Date – Remaining contract term has reduced to 3 years • RFT 2: – Failure to achieve/maintain AMO status RFT1 Length of Contract • The PWD for the C-130J is 2030 • Rolling length of contract model • Contract base period of 7 years • Extension of contract is at the sole discretion of COA • Rolling extensions to the contract will be reviewed on an annual basis and must represent VFM to the COA • First VFM assessment = Effective Date + 1 year • Annual Performance Review - Successful: 1 year extension is granted maintaining a 7 year base period - Unsuccessful: extension is not granted, base period is reduced to 6 years, 2x successful Annual Performance Reviews are required for base period to return to 7 years - If base period is reduced to 3 years COA will begin the re-tendering process Essential Annual Performance Review Criteria • PBC Metrics • Risk Management • Contract Management • AEO/AMO • Cost of Ownership • Management Relationships Important Annual Performance Review Criteria • Contract Management • System Health Indicators (SHIs) • Reporting • Quality Management System • Time to Make Serviceable (TMS) Management • Support to Block Upgrades and Modifications • Support to fleet Management • Occupational Health and Safety (OH&S) • Performance detractors RFT 1 Cost Model • If airframe maintenance is performed interstate or overseas the COA will factor in the costs of Aircraft delivery to and from Richmond • RFT 1 tenderers to provide two prices: – Engines and propeller gearboxes in – Engines and propeller gearboxes out • Contract price (current day dollars) changes only justified through demonstrable changes to work scope • Cost model used for length of contract and to support Contract Change Proposals RFT 1 Phase In • 18 month Phase In period • 20% “Balloon Payment” for achievement of OD • Other milestones include: – Plans (PHIP, SSMP, RMP and IPP) – First Aircraft Deeper Maintenance Servicing – Implementation: i) OH&S ii) MEA Plan iii) CMP – AEO Certification – AMO Certification – Configuration Item Management – Supply Chain and Inventory Management – Successful First Performance Review – ITAR approvals – Transition complete from current contracts – Operative Date International Traffic In Arms Regulations (ITAR) • Aircraft acquired from Lockheed Martin (Original Equipment Manufacturer) • COA must comply with US ITAR • No transfer of US origin Technical Data (TD) to Third Party Countries or Third Party Nationals without US Department of State approval • COA intends to transfer TD to RFT 1 tenderers • No TD to be transferred to RFT 2 tenderers • Tenderers shortlisted in April 07 to enable COA to seek ITAR approval • TAA amendment submitted to US Department of State on 25 Jul 07 to enable RFT 1 tenderers to access TD. Deeds of Confidentiality • Two Deeds: – 1. C-130J TLS RFT Deed of Confidentiality • All RFT 1 and RFT 2 tenderers • Any other person to whom tenderers wish to pass the RFT – 2. Lockheed Martin (LM) Technical Data Deed of Confidentiality • All RFT 1 tenderers (not LM) • Any other person to whom tenderers wish to pass the LM Technical Data (subject to ITAR and written COA approval) • If tenderer fails to provide executed Deeds, the COA may exclude the tender • Executed Deeds are due to COA by 12 Sep 07 OEM Specific Services • It is COA’s expectation that tenderers will submit a fully costed bid • LM advised it: – will not provide support to other tenderers during tender response period – will negotiate in good faith to provide OEM services to the preferred tenderer(s) when announced in late 2008. • It is COA’s view that it is unlikely that the pricing of OEM services will significantly influence the overall price of tender responses or be a key discriminator in source selection Authorised Maintenance Organisation Status • Authorised Maintenance Organisation (AMO) certification is given to the Prime Contractor only • Prime can use sub-contractors to undertake various maintenance activities, however, the Prime is accountable to the Technical Airworthiness Regulator (TAR) (TAMM Reg 4.4.3.b) • Sub-contractors may well be AMOs for other ADF platforms, however the Prime is fully responsible for the maintenance undertaken by any sub-contractor • The prime is required to include these sub-contractors within its Maintenance Support Network (MSN) • The applicant shall only be certified as an AMO, or retain AMO certification, whilst under contract to the ADF (TAMM Reg 4.2.2.e) Security Classified Documents • The RFTs contain documents security classified as RESTRICTED as defined in the Defence Security Manual. Provision of these documents is conditional on the validation of all security clearances by the COA. Recall of CD 3 • On 31 Aug 07 security classified RESTRICTED documents were inadvertently released by COA to industry • Email of 04 Sep 07 recalled all RFT 1 and RFT 2 CD 3s • New CD 3s issued to industry on 05 Sep 07 • Due 12 Sep 07 – Return of recalled CD 3s – Signed undertaking from industry that all hard copies have been destroyed, all soft copies deleted from IT systems and no copies have been forwarded to third parties Project Schedule • Release of Final RFT 31 Aug 07 • Tender Closing Time 13 Dec 07 (noon) • Tender Evaluation Jan 08 – Mar 08 • Contract Negotiation Jun 08 – Sep 08 • Contract Approval Oct 08 – Nov 08 • Contract Signature Nov 08 • Transition Complete Jun 10 Contacting C-130J TLS • Website: http://www.defence.gov.au/dmo/asd/c130j/c130j.htm • TLS email address: C130J.TLS@defence.gov.au In Summary • Defence is seeking: – a whole of life support arrangement – the right partner/s – value for money – visibility of cost – to contain support costs Facilities Site Inspection • Bus to and from Sebel Resort to Hangar 522 • Security passes already arranged • No open-toed shoes • No mobile phones or cameras • Don’t leave the group • No questions until end of tour Questions?	application/vnd.ms-powerpoint	200	http://www.defence.gov.au/dmo/asd/c130j/Industry_Brief_12Sep07.ppt	au,gov,defence)/dmo/asd/c130j/industry_brief_12sep07.ppt	UKLP4LAEWIWZNG5CA5WGLZ6YLXZSSZ5O	2716496	domains/defence-gov-au/powerpoints/original/au-gov-defence-dmo-asd-c130j-industry-brief-12sep07-ppt-20080905233743.ppt