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All acquisition strategies for all dollar value Tailored Logistics Support contracts must be approved by DLA HQ before public notice of the procurement is published and a solicitation is issued. As described below, included in the request for approval must be an acquisition plan, a business case analysis, and a contract management plan.

(a) Acquisition Plans. Acquisition plans shall comply with all requirements for acquisition plans prepared in accordance with the regulatory coverage referenced at 7.102(90) and, in addition, contain the following:

(i) A discussion of the factors that indicate a Tailored Logistics Support contract arrangement is the best acquisition strategy. Discussion should include the type and variety of incidental services included and why the proposed supply arrangement will provide the best support for the customer.

(ii) A description of surge & sustainment requirements, capability, and testing

(iii) A description of how this acquisition will maximize opportunities for Small Business programs.

(iv) Documentation showing how the Tailored Logistics Support contract shall be performance based for the service aspects of the contract.

(v) A discussion of whether the acquisition is or will become part of a current or future Performance Based Logistics initiative.

(vi) Show how the vendor will periodically assess and monitor suppliers’ compliance with domestic sourcing requirements, particularly the Berry Amendment and show how DLA will monitor vendor compliance in this area. For example, a vendor’s plan could include random sampling and unannounced inspections of its suppliers’ product origin. Evaluating proposals should include determining if the vendor has a viable plan. Contract administration responsibilities would include checking to see that the vendor is following its plan. See 25.7002-2(91)(e) for discussion of potential actions to ensure continued contractor compliance.

(vii) If the purchasing review clause is applicable to the acquisition (see 17.9508(a)), discuss how the vendor’s purchasing system will be evaluated, approved, and implemented. Some basic characteristics of a good purchasing system, in proportion to the size and capability of the vendor, are:

(a) Internal audits or management audits, training, and policies and procedures for the purchasing department to ensure the integrity of the purchasing system.

(b) Policies and procedures to assure purchase orders and subcontracts contain all flow down clauses, including terms and conditions required by the prime contract, as well as any clauses needed to carry out the requirements of the prime contract.

(c) An organizational and administrative structure that ensures effective and efficient procurement of required quality materials and parts at the most economical cost from responsible/reliable sources.

(d) Selection processes to ensure the most responsive and responsible sources for furnishing required quality parts and materials and to promote competitive sourcing among dependable suppliers so that purchases are reasonably priced and from sources that meet contractor quality requirements.

(e) Price or cost analysis performed with every purchasing action.

(f) Procedures to ensure that proper types of subcontracts are selected and that there are controls including oversight and surveillance of subcontracted effort.

(viii) Documentation of market research performed.

(ix) A discussion of the management information system being used for the program and its use of acquisition metrics.

(x) If market basket is applicable, describe the approach being taken, such as number of items, dollar value of market basket items, etc.

(xi) Discounts and Rebates. Discuss how trade, quantity, volume, and early payment discounts or rebates are expected to be allocated to DLA orders. Discuss the sharing arrangement to be negotiated with the vendor. Ensure the vendor has a way to track and record the discount or rebate activity and issue the appropriate amounts to the Government.

(xii) A discussion of anticipated unusual freight charges. Discuss how these will be controlled by the Government.

(xiii) A discussion of any system impacts, changes, and approvals needed before implementation of the initiative. Discuss how these are consonant with BSM architecture and other agency system architectures.

(b) A business case analysis (BCA). See the One Book Chapter “Acquisition Business Case Analysis Process” for content requirements. Generally, a Type I BCA shall be sufficient at this stage. The BCA shall discuss acquisition alternatives and risk.

(c) Source selection plan and solicitation.

(d) A contract management plan. A contract management plan describes how performance shall be monitored over the life of the contract. The contract management plan specifically addresses the resources assigned to conduct and sustain contract monitoring procedures. Minimum areas to address in the plan are: resources required and each resource’s responsibilities, assignment of a COR/COTR, order flow, pre-solicitation or pre-proposal conferences, post-award audits describing who shall be responsible for performing monthly, quarterly, and annual reviews, invoicing procedures, performance measurement metrics, incidental services required as part of the contract, assignment of contract administration responsibilities for orders, contracts, and subcontracting plans, options, post-award conferences, domestic preference provisions, special contract administration concerns, responsibilities for monitoring contract performance including ascertaining whether BCA objectives have been met, non-compliance issues, and contract closeout. In short, the contract management plan makes it clear who is responsible for performing which function. See the following pricing tools to be used as a part of this contract oversight in PGI 17.9507(c)(ii) and (v). See PGI 17.9503(e) for an example of a contract management plan.