F404 Propulsion Grp Interim Sys

Question Set:

Question #1: Can you advise of the bid receiving unit hours of
operation?

Response #1:

Bid Receiving Unit is open from 7:30am to 4:00pm Monday through
Friday. Holidays and afterhours bids can be dropped in the drop
box located outside of the Bid Receiving Unit.

Question #2: The MC-14 indicates a requirement for onsite or
offsite storage of at least 28,000 cubic feet. The response to
Question 2 posted on March 3rd indicated the types of inventory
that require storage (thanks). The estimated dollar value of the
material is very significant at well over $200M;
Question #2.a: Is this breakout of material $ (estimate) all
expected to be stored at the contractor facility?
Response #2.a: The Contractor is expected to co-locate with MRO
operations the following items:

• CIS;
• AAS;
• GFOS;
• items awaiting induction; and
• items awaiting engineering disposition.

Question #2.b The space requirement of 28,000 cubic feet does
not seem to be consistent with the $ of material listed
(estimates). The $ value of inventory quoted would seem to
require significantly more space than the RFP requirement.
Please clarify.
Response #2.b: The space requirements to dollar value are not
considered relevant. As indicated in MC #14, 28,000 cu ft is a
workable minimum spare requirement for the materiel.

Question #2.c Can you advise how the 28,000 cubic feet of
storage required would translated into actual floor space (ie.
square feet)?
Response #2.c: No further clarification is available. Ultimately
the contractor will determinethe appropriatematerial storage
requirements that willsatisfy the contractwhile providing best
value toCanada.
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Please note that for this requirement the closing date has been
amended to March 19, 2014 at 14:00 Eastern Standard Time (EST).

Question set:

Question 1a: Would Canada clarify why this procurement seems to
contradict government policy on Key Industrial Capabilities for
defence procurement?
Response to item #1a: This procurement was initiated prior to
the announcement of the current Defence Procurement Strategy.
As such, the existing industrial regional benefits and national
security exemptions were applied. However, for the long-term
F404 Propulsion Group System Support solution, all applicable
elements identified within the Defence Procurement Strategy will
be applied.

b. The timeframe required to identify IRB transactions for IRB
mandatory requirements seem misaligned with the 1+1 year
contract duration.

Question 1b: Would Canada consider adjusting the required timing
for submission of eligible IRB transactions to the following:
i. 70% of IRB transactions identified at time of proposal;
ii. 100% of IRB transactions identified 1 year ACA.
2. Technical Evaluation Mandatory Requirements Questions:

The points expressed in Questions b & 1b are reflected in the
amendment to the IRB portion of the RFP.

Question #2

Please clarify the contents of Volume V. Section 1. Bid
Preparation Instructions. This section identifies Section V as
Industrial Regional Benefits, however, further in Section 1, Bid
Preparation Instructions, the same section (Section V) is titled
Additional Information and requests 1.1 Bidder's Proposed Site
or Premises Requiring Safeguarding. Is this additional
information regarding safeguarding to be included in Section V:
IRB Bid?

Response to Question #2

PART 3 - BID PREPARATION INSTRUCTIONS, paragraph 1. Bid
Preparation Instructions, article V should be renamed as
"Additional Information" and not Industrial and Regional
Benefits Bid (2 hard copies)

The Industrial and Regional Benefits (IRB) bid is to be
submitted as per the IRB bid instructions contained in the IRB
Model Bidder Instructions.

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The revised documents have been included in the attached
RFPEv2.zip

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Questions and Answers
Question 1: Reference Part 7Annex B, Para 3.5.1 and 3.5.2:
The dates referenced in this paragraph are before the bid due
date. These dates should be amended.
Response to item #1: DND has reviewed the request to update the
CTIP schedule. Revisions toPart 7, Annex B, Technical SOW
paragraphs 3.5.1,3.5.2,3.5.4 and 3.6.1have been amended from
a. Contract Award / Contract Start Date:3 Mar 14 (estimated);
b. Kick-Off Meeting:4 Mar 14;
c. Commencement Readiness Review Meeting #1:18 Mar 14;
d. IOC/ Commencement Readiness Review Meeting #2: 1 Apr 14;
e. Commencement Readiness Review Meeting #3: 15 Apr 14; and
f. FOC / Commencement Readiness Review Meeting #4: 1 May 14
to:
a. Contract Award / Contract Start Date:25 Mar14 (estimated);
b. Kick-Off Meeting: 27 Mar 14;
c. Commencement Readiness Review Meeting #1: 28 Mar 14;
d. IOC / Commencement Readiness Review Meeting #2: 1 Apr 14;
e. Commencement Readiness Review Meeting #3: 15 Apr 14; and
f. FOC / Commencement Readiness Review Meeting #4: 1 May 14

It is to be noted that the IOC date of 1 Apr 2014 and FOC date
of 1 May remain unchanged.
Question 2: Reference Part 4, Annex B MC14: Could you clarify
the intended use of the inventory storage requirements (Ref MC
14)

"Inventory holding report 25 Feb 2014".
Response to item #2: DND has reviewed the request for
clarification of the inventory storage requirements (Ref MC
#14). The inventory storage requirements consist of a mix of
consumables, repairables, AAS, GFOS, CIS etc.
(a) The following estimates AAS, GFOS, and CIS are within the
table below:

$180M unrestricted stock in containers and triwalls.
$ 7M blocked stock Note: -Blocked items estimate based on
scrap only formerly DS items from old system. Some of value may
include items in quarantine area or previously scrapped. Delay
in processing items into DRMIS may make the amount appear
larger. About 3000 OIRs with scrap action are pending.
$ 13M quarantined stock
$ 14M AA spares
$ 22M GFOS consumable
$ 3.7M GFOS repairable

(b) The attachedspreadsheet entitled "Inventory holding report
25 Feb 2014"contains the estimated quantityof AAS, GFOS and CIS
held in inventory.

Question 3: Reference Part 4, Para 1.2.1, (Management
Evaluation Criteria): Could you clarify what evaluation criteria
will be used to evaluate Section II of the proposal.
Response to item #3: Part 4, paragraph 1.2.1 (Management
Evaluation Criteria) shall be removed.
Question 4: Reference Part 3, Section II Management Bid: The
bid preparation instructions indicate that Bidders are to
provide their client contacts. Could you clarify? Please also
advise what level of detail is required, and for what work.
Response to item #4: Part 3, Section II Management Bid shall be
removed.
Question 5: Reference Part 4, Annex B MC 8: Could you clarify
how the amount of R&O work to be done in Canada was calculated
and why it is different from the recent T56 solicitation that
only required 50% NSE. Such a high threshold drives a level of
inefficiency and cost that may not in the best interests of the
Government of Canada.
Response to item 5: The National Security Exception was
requested to be invoked by The Department of National Defence to
ensure a source of supply in Canada for particular goods or
services necessary for DND and CF operational readiness. The
Department of National Defence has identified that in this
specific case, it requires 90% of the maintenance, repair and
overhaul labour to be conducted in Canada for national security
reasons.

Ref Reference Part 4, Annex B MC 12;

Question 6: MC12 is not clear on the level of detail required.
Is it is your intent that we provide the entire contract or
alternately, could we submit the relevant sections of the
contract that show its scope, scale and complexity. By limiting
the documentation to the relevant sections of the contract (or
contract SOW), one could significantly reduce the efforts and
page count required to provide compliance with MC.
1. Has the Bidder (or its subcontractor) provided relevant
portions of their publications contract that demonstrate that
they provide services similar in scale, scope and complexity to
Annex F, Publications Management Services SOW?
Response to item #6: To clarify,the bidder shall provide the
complete contract with a clear indication of the relevant
sections which demonstrate their compliance toMC #12. It is
acceptable to submit the response to MC #12 in an electronic
format.

Question 7: Reference Part 4, Annex B MC 3:Airworthiness:

Could you clarify if we need to submit our approved Design
Approval Organization Procedures and Maintenance Process Manuals
if these documents have been already approved by DND through
DTA. Alternatively, could we submit our DTA approval letter or
provide a printout of the DND web page that lists the TAA
approved organizations (which also includes scope of their
approvals). See the following link:
http://www.forces.gc.ca/en/business-regulations-technical-airwort
hiness/accreditation-recognition.page

Response to item #7: Yes, the Bidder shallsubmit the complete
airworthiness process manual as specified in MC #3. The
Technical Evaluation team shall only evaluate thosedocuments
provided as part of the bid submission.It is acceptable to
submit the response to MC#3 in an electronic format.

Question 8: Could you extend the proposal due date to March
10th?

Response to item 8: Proposal due date will be extended to March
17th.

Significant Issues

Question 9: Ref Reference Part 4, Annex B MC 5 (Sub Contracts):
Could you provide clarity on the level of detail required of
the "subcontractor agreements"? Would a MOU (memorandum of
understanding) or Letter of Offer (including commitment to
support and the agreed to roles and responsibilities)? Industry
doesn't typically establish executable subcontracts until they
have been awarded a particular competition. Only the incumbent
would likely have executed subcontracts with their team as they
are already performing the work.

Response to item #9:An agreement between the Bidder and their
sub-contractor to undertake the work specified in the RFP by the
sub-contractor will be required by contract award. These
agreements must demonstrate the ability to have sub-contract(s)
in place by contract award date.

Question 10: Reference Part 4, Annex B, MCs 1, 3, 10, 11, 12:
Is it Canada's intent that only the Bidder meet these
requirements (and not their subcontractors)? If so, this
precludes the use of critical subcontractors, who already
possess the required capabilities and in some cases are already
doing this work today. We don't believe that it is in Canada's
best interests in terms of a fair and open competition to
restrict these requirements to only the Bidder (or Prime).
Additionally, we note that there is an inconsistency between MC3
and 10. If a subcontractor is accredited as ADO then that same
subcontractor should also satisfy the requirements of MC10 .
The absence of the subcontractors in MC10 places a stringent
requirement on this RFP that is inconsistent with MC3.
Accordingly, we suggest that subcontractors be added to MC10 and
also the other listed MCs above, and that Annex B is amended to
include "Bidder or their subcontractors".
Response to item #10: For MC # 1, 3, 10, 11 and 12, the Crown
agrees to the request to include both the Bidder himself and/or
the entity performing the Work when evaluating these criteria

Question 11: Reference Part 6, as well as Part 7 Annex G
(SRCL): Could you clarify the security requirements by work
stream? Please note that with the potential for work streams to
be performed in different Facilities/locations. Also, could you
confirm that the security classification of the production
category?
• The Security Requirements Checklist (SRCL) at Annex G to the
RFP (Part C - Safeguards (Supplier)) indicates that the
production of classified material or equipment will occur at the
supplier's site (see checkmark in Yes box). This requirement is
further amplified on the Summary Chart in Part C where a"
Secret" security level is specified the production category.
• To the best of (the Bidder's) knowledge, there isn't a
security level associated with the MRO of the F404 engine. Is
the security classification of the production category correct?
• In a related matter, according to paragraph 19.2 of Part 7 -
Resulting Contract Clauses, a supplier must possess a
"Confidential" security level for its Production capabilities.
Alternatively, the SRCL indicates that the production category
must have a security level of "Secret". Is the security
classification of the production category in paragraph 19.2.

Response to item #11:With reference to the SRCL Supplemental
Security Guide, Part B, clarificationfor thesecurity requirement
by work streams isas follows:
The following work streams require SECRET clearance:

• Engineering
• IM/IT
• Program Manager
• Offsite Services- LCMM
• Offsite Services -CSR
• Offsite Services -TSR

The remainder, including MRO, require enhancedreliability
clearance. Production, as referred to in paragraph 11 of the
SRCL was considered to include production in terms of engine MRO
but also software programs.

Question and Answer Set #2

Question 1a: Would Canada clarify why this procurement seems to
contradict government policy on Key Industrial Capabilities for
defence procurement?
Response to item #1a: This procurement was initiated prior to
the announcement of the current Defence Procurement Strategy.
As such, the existing industrial regional benefits and national
security exemptions were applied. However, for the long-term
F404 Propulsion Group System Support solution, all applicable
elements identified within the Defence Procurement Strategy will
be applied.

b. The timeframe required to identify IRB transactions for IRB
mandatory requirements seem misaligned with the 1+1 year
contract duration.

Question 1b: Would Canada consider adjusting the required timing
for submission of eligible IRB transactions to the following:
i. 70% of IRB transactions identified at time of proposal;
ii. 100% of IRB transactions identified 1 year ACA.
2. Technical Evaluation Mandatory Requirements Questions:

Response to come

2a. Question: MC-1: Could Canada clarify the duration, scope and
depth of the valid F404-GE-400
or F404-GE-402 that would be considered compliant with this
requirement. For example, do valid
F404-GE-400 or F404-GE-402 contracts need to be of similar
scale, scope, and complexity as
the RFP SOW?

Response to item #2a (x-ref Mandatory Criteria #1):Mandatory
Criteria number 1 has been clarified to state: "The Bidder shall
provide the contract numbers and client names of valid MRO
contracts for the F404-GE-400 or F404-GE-402 engines that they
(or their subcontractor) are currently performing."

2b. Question: MC-3: For Method of Compliance, could Canada
clarify whether the documentation
provided by the Bidder under the Method of Compliance needs to
be related to either:
i. F404-GE-400 or F404-GE-402 and related systems; or
ii. An engine(s) and system(s) of similar scope, depth and
complexity (ie. Fighter aircraft
afterburning turbofan engine(s) and related system(s)).

Response to item #2b (x-ref Mandatory Criteria # 3): Yes, the
documentation can be related to either:
i. F404-GE-400 or F404-GE-402 and related systems; or
ii. An engine(s) and system(s) of similar scope, depth and
complexity (ie. Fighter aircraft afterburning turbofan engine(s)
and related system(s)). Similar scope, depth and complexity is
defined as a fighter aircraft afterburning turbofan engine and
related systems.

2c. Question: MC-7: Would Canada clarify whether the Bidder must
demonstrate, through a resource and capacity analysis, that it
has the ability to induct and complete, by the corresponding
monthly amount and completed in the corresponding amount of
calendar days? Or is a simple certification sufficient?

Response to item #2c (x-ref Mandatory Criteria # 7): DND has
reviewed the request and advises that no change is required. The
CTIP provided under MC #4 shall detail and demonstrate the
Bidder's ability to satisfy MC #7. Therefore, certification is
sufficient for MC #7.

2d. Question: MC-8 - NSE Strategic Requirements: Would Canada
clarify why it does not consider the functional areas of Program
Management, Engineering Support, Publication Support and IM/IT
as strategic requirements or Key Industrial Capabilities for the
engine fleet of Canada's fighter aircraft capability? Would
Canada clarify why Program Management, Engineering Support,
Publication Support and IM/IT Support do not require at least
90% of labour content to be performed in Canada?

Response to item #2d (x-ref Mandatory Criteria # 8): The
Department of National Defence has identified that in this
specific case, it requires 90% of only the maintenance, repair
and overhaul labour to be conducted in Canada for national
security reasons. The other elements have not been specified
in the NSE.

2e. Question: MC-9 - MRO Capacity: Would Canada clarify why MRO
experience is not a mandatory requirement, in light of MC 10,
11, 12 requiring both experience and capacity?

Response to item #2e (x-ref Mandatory Criteria # 9): The
mandatory requirements in their totality are being used to
evaluate the required experience of the Bidder (and/or their
sub-contractors).
2f. Question: MC-10 - Would Canada clarify whether the
engineering experience to meet this requirement needs to be of
similar scale, scope and complexity to the RFP SOW requirements?

Response to item #2f (x-ref Mandatory Criteria # 10): To
clarify, 12,000 billable engineering hours across the range of
activities as identified in the SOWs is the experience, scope
and complexity required by DND.
2g. Question: MC-11 - IM/IT: Would Canada clarify whether the
IM/IT experience needs to be of
similar scale, scope and complexity to the RFP SOW requirements?

Response to item #2g (x-ref Mandatory Criteria # 11): No change
is required. The IM/IT experience to be demonstrated in MC #11
is as stated in both the description and method of compliance.
3. Lack of Rated Requirements
a. It seems unprecedented that there are no Rated Requirements
regarding Experience and Risk that the Government considers
important, or of value, for in-service support work of this
scale and complexity.

3b. Question: Would the Government consider rated requirements
for F404-GE-400/-402 experience in each of the SOW functional
areas (Program Management, R&O, Engineering, Publication
Management, and IM/IT support)?
Response to item #3b: No changes are being considered at this
time. The selection criteria are lowest cost compliant.

3c.Question: Would the Government consider rated requirements
for Implementation and Performance Risk as part of the Technical
Evaluation?

Response to item #3c: No changes are being considered at this
time. The selection criteria are lowest cost compliant.
4. Basis of Payment
a. The current method of assigning the bid price neglect the
significant impact that labour efficiency plays in determining
the overall contract price. For example, Bidder A may submit a
labour rate $10 lower than Bidder B, but may take twice as many
hours to perform the repair activity as Bidder B, thereby
resulting in a significant price disadvantage to Canada.

Question: Given that there are many elements of the R&O activity
for which the work-scope is fixed, would Canada consider
amending the Basis of Payment to more appropriately reflect the
expected cost-drivers of the Program. Examples of repairable
work for which Canada should expect a firm labour price include:

i. Fan Module SAC B;
ii. HPC Module SAC B;
iii. Combustor Module SAC B;
iv. HPT Module SAC B;
v. LPT Module SAC B;
vi. Front Frame Repair;
vii. Exhaust Frame Repair;
viii. Fan Rotor;
ix. HPC Rotor;
x. HPT Rotor and;
xi. LPT Rotor

Response to item #4.b:

Canada has indicated that there will be one rate as it will not
penalize or provide an advantage to any one bidders costing
methodology and how they account for their employees.
It will also ease the administrative burden for Canada and the
bidders.

For planning purposes, the following are estimated hours per
functional area:
R&O Shop Floor: 76,000 hrs
Engineering / Graphics: 19,000 hrs
Program Manager: 2,000 hrs
Life Cycle Materiel Manager (LCMM): 6,000 hrs
Technical Service Representative (TSR): 8,000 hrs
CBMSS Service Representative (CSR) : 4,000 hrs

These hours are not guaranteed.

5. Definition of the Bidder as it relates to the Mandatory
Requirements

a. There appears to be some inconsistency in the Mandatory
Requirements and Method of
Compliance regarding what experience/capability must be
demonstrated by the Bidder and what
experience/capability can be demonstrated by subcontractors. For
example, MC-1 permits a subcontractor
to have existing contracts and MC-3 permits a sub-contractor to
have accreditation;
however MC-2 requires the Bidder to have the TAA and MC-9 and
MC-10 require the Bidder to
demonstrate capacity and experience for MRO and Engineering
respectively.

Question: Can the Government provide greater clarification as to
which Mandatory
Requirements need to be met by the Bidder and which ones can be
met by sub-contractors?
Response to item #5: For MC # 1, 3, 10, 11 and 12, DND clarifies
that these criteria include both the Bidder himself and/or the
entity performing the Work.

Original Question from industry
Referencing Solicitation W8485-14DL01/B, ANNEX B TECHNICAL

STATEMENT OF

WORK, Appendix 6 Government Furnished Equipment,
Section 2 Table 2: R&O Tooling, please find the enclosed list
(notlisted_F404_TOOL_REGISTER.xlsx) of items not listed in the
reference Table 2 for review and consideration in the subject
RFP section.
Rationale for Consideration: In conjunction with the reference
Table 2 items, the items listed in the enclosed (or equivalent)
are necessary:

1. 1.
   to carry out our existing F404 R&O Contract with PWGSC and;
2. 2.
   to carry out the Technical Statement of Work noted in

Solicitation W8485-14DL01/B, ANNEX B.

Response to item #5: The listing of tooling has been reviewed
and will not be added into Appendix 6, Government Furnished and
Non-Government Provided Equipment, Section 2, Table 2.
Please clarify the contents of Volume V. Section 1. Bid
Preparation Instructions. This section identifies Section V as
Industrial Regional Benefits, however, further in Section 1, Bid
Preparation Instructions, the same section (Section V) is titled
Additional Information and requests 1.1 Bidder's Proposed Site
or Premises Requiring Safeguarding. Is this additional
information regarding safeguarding to be included in Section V:
IRB Bid?
Response to come

Modified RFP documents will be posted shortly.

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Please note that for this requirement the closing date has been
amended to March 17, 2014 at 14:00 Eastern Standard Time (EST).

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Please note that for this requirement the closing date has been
amended to March 10, 2014 at 14:00 Eastern Standard Time (EST).

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--------Industry is hereby notified that there will be a series
of one-on-one engagements to answer questions and provide
clarification regarding the subject tender notice.

These sessions will be conducted at 455 Boulevard de la Carrière
on February 18, 2014 starting at 10am.

Please contact Gianni Barreca at
(email on the official notice) to schedule a session and to
provide your list of attendees.
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The Department of National Defence has a requirement to acquire
services for the Program Support, Maintenance, Engineering,
Material, Field Service Representatives, and Publications
Support for the F404 Propulsion Group and ancillary components.

Procurement Process and Contractor Selection

In order to ensure a successful procurement, Canada will
consider any suggestions that industry wishes to provide and
will allow a consultative process (one on one) along with
including responding to written questions and answers which will
be shared with all bidders. Requests for One-on-One sessions
with DND and PWGSC will be entertained, but are not mandatory,
to allow for a better understanding of the requirement and
recommendations from industry. All industry questions will be
documented and published on "buyandsell.gc.ca". This
information will also be subject to the Access to Information
Act. Canada shall not reveal any designated proprietary
information to third parties.

This requirement is for the Department of National Defence.

Industrial and Regional Benefits (IRB) will be sought and
Bidders are required to commit 100% of the contract value in
direct and indirect IRB's.

Bidders must be a Canadian registered company.

Program and Materiel Support work must be performed in Canada.

A National Security Exception is associated with this
requirement. Therefore, a minimum of 90% of Repair and Overhaul
Labour must be performed in Canada.

Contractors who are performing the Maintenance and Engineering
work must be AMO accredited by Transport Canada or other
international regulatory agencies.

Contractors are required to have a Facility Security Clearance
of SECRET and personnel who will be working DND facilities shall
have a Personal Security Clearance of SECRET.

This procurement is subject to Controlled Goods and the
Contractors must hold a valid Controlled Goods Certificate.

Exceptions:

This requirement falls under DND aircraft (FSC 15) and therefore
is excluded from, the World Trade Organization - Agreement on
Government Procurement under Annex 4, Note 4 and, the North
American Free Trade Agreement under Chapter 10, Annex 1001.1b-2,
Section B, General Note 1.
The National Security Exception under the Agreement on
International Trade (AIT), Article 1804, was invoked for this
procurement.

Provisions of the Comprehensive Land Claims Agreements do not
apply to this procurement, as no goods/services are to be
delivered/performed in a land claim settlement area.

Gianni Barreca
Supply Team Leader
PWGSC
11 Laurier Street,
Gatineau, Quebec
K1A 0S5
Tel: (number on the official notice),
E-mail Address: (email on the official notice)

Delivery Date: 27/03/2014

The Crown retains the right to negotiate with suppliers on any
procurement.

Documents may be submitted in either official language of Canada.

Delivery Date: Above-mentioned

The Crown retains the right to negotiate with suppliers on any
procurement.

Documents may be submitted in either official language of Canada.