COMPETITION CASE STUDY


in return for government benefit is not a new concept, the approach used in the LCAAP solicitation was truly novel and maximized benefits to the government.


As done historically, the successful offeror would be allowed to use the plant to pro- duce and sell small-caliber ammunition commercially, so long as the commercial endeavors did not interfere with Army operations. However, and uniquely, the government included the amount of con- sideration and the plan for its use as an evaluation criterion, thus maximizing the opportunity for contractor investment and innovative projects.


ENCOURAGING INVESTMENT


In exchange for commercial use, offerors responding to the contract solicitation were required to propose projects for improving the facility. The solicitation gave the government unlimited rights to any contractor investment in the plant. Here, .50-caliber cartridges exit the waterproofing machine tied to the end of the new Manurhin loaders. (Photo by Trevor Beyeler, ATK mod project engineer)


Tis became all the more important as demand has recently increased in the commercial market. Te Army’s $276 million investment for modernizing and making the plant more efficient, coupled with the demand from overseas opera- tions, made additional capacity available for commercial use.


practical. While the government had taken steps to ensure a fair and equi- table competition, it was also of utmost importance that industry recognized this. To communicate that principle, several actions were necessary to assure industry that, although the incumbent might inevitably have an undeniable competitive advantage, it would not be an unfair advantage.


To that end, the government held four industry days, three of which included plant tours. A virtual technical library was created to securely share avail- able documentation with potential offerors. Tis virtual library contained more than 800 documents, including


92 Army AL&T Magazine April–June 2013


information on environmental and utility matters, schematics, manuals, handbooks, etc. In addition, an on-site library was established at LCAAP to make available documents that were considered sensitive or were unavail- able in digital format. All solicitation documentation was posted in a draft format before being formally released, with ample time throughout for inter- ested parties to review, ask questions and provide feedback.


Step 4: Incentivize commercial use in the plant, creating a win-win for the contrac- tor and the government. While allowing the contractor to use a government- owned facility for commercial purposes


In exchange for commercial use, offer- ors responding to the solicitation were required to propose projects and dollar amounts for improving the facility or production capabilities, or reducing prod- uct or overhead prices, in a manner that benefited the government. Tis would allow the Army to leverage the invest- ment in the facility and to benefit from the commercial work that the successful offeror would be permitted to perform. Te solicitation explicitly stated that the government would have unlimited rights to any contractor investment in the plant.


CONTRACT AWARD Te solicitation was released in December 2011, with proposals required in January 2012. Te formal source selection resulted in the award of a best-value contract on Sept. 28, 2012. Te initial award included a five-year base, with a two-year option


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