Meal Cold Weather/ Long Range Patrol

1. Contracts/Acquisition Update Meal Cold Weather/Long Range Patrol R&DA Spring 2009 Russell J. ManuelAcquisition Specialist (215)737-0486Russell.J.Manuel @dla.mil

2. Meal Cold Weather/Long Range Patrol MCW/LRP • MCW • Used for frigid conditions • Packaged in white camouflaged bag • Three menus per person per day • Provides 4500 kilo calories • LRP • Used for long range reconnaissance and special operations • Packaged in tan camouflaged bag • One menu per person per day • Used for up to 10 days

3. MCW/LRP Continued • Benefits: • Lightweight • Less than one pound • Cold weather tailored • Rations will not freeze in cold weather extremes • Cost effective • Combining MCW/LRP into a single product that can be produced under one contract

4. MCW/LRP Continued • Meal Cold Weather (MCW) • Long Range Patrol (LRP) Assets Due In MCW 8970-01-467-1753 20,000 cs LRP 8970-01-467-1749 15,000 cs • No longer a war reserve item

5. MCW/LRP Continued • Emergency acquisition for Afghanistan • Contract awarded to SOPAKCO on 03/15/2009 • One time purchase • Contract Quantity • MCW • 20,000 cs • LRP • 15,000 cs • Total dollar value: $3,608,050 • Required delivery date is 07/15/2009

6. MCW/LRP Continued • New acquisition: Min/yr. Max/yr MCW 19,008 cs 38,016 cs LRP 5,760 cs 15,500 cs • Long term contract • Base and 2 one year options • LPTA • Evaluation factors • PDM samples • For new items not included in previous menus • Solicitation due out in June 2009 • Good candidate for reverse auctioning

7. What is Reverse Auctioning? • Reverse auctions are “downward price” auctions in which suppliers continue to lower their prices until the auction closes. • Revolutionary pricing tool: • Competition will likely drive prices down • Savings to the Government

8. Reverse Auctioning • What makes a good candidate? • Auction items must be fully and accurately specified. • There must be two or more suppliers that agree to participate in the event • FAR 15.306(e)(3) prohibits any conduct that revels an offeror’s price without that offeror’s permission. • Analysis of the item to be reversed auctioned • i.e., “clear” specification, price margin associated, positive return on investment. • The solicitation should allow time for the training of suppliers and the configuration of the Dynamic Pricing Event.

9. Reverse Auction Process • Suppliers submit technical proposals and initial price proposals • Suppliers are pre-screened and approved (Set the Competitive Range) • Only “invited suppliers can view or participate in auction”. • Offerors are anonymous to all except the buyer • Suppliers only see lowest offered prices, not competitor’s names • Evaluation criterion can be price or best value.

10. Reverse Auction Process Competitive Requirement Train Contractors in Competitive Range Conduct Reverse Auction Synopsize Schedule Reverse Auction Buyer adds Reverse Auction clauses Post Auction Analysis Competitive Range Determination Release Solicitation Contract Award Proposals Due

11. Reverse Auction Savings • FY 06 summary • 25 auctions resulted in 25 contract awards • $2.7M saved • FY 07 summary • 21 auctions resulted in 21 contract awards • $932K saved • FY 08 summary • 15 auctions resulted in 15 contract awards • $363K saved • Overall average: • Average savings in commercial sector is 18% • Average savings on NAVICP contracts is 18% • Average savings on DSCR contracts is 16.5% • Savings on DSCPs Vacuum Tote buy was 24%