Radford Army Ammunition Plant (RFAAP) Operation, Maintenance, and Modernization

Request for Information - RFAAP Acquisition Strategy

The USG is appreciative of industry’s input concerning various potential acquisition strategy options to promote RFAAP procurement objectives. In response to this feedback, the USG intends to further explore potential adaptations to ensure a strategy that properly aligns industry incentive structures with the USG’s desired new RFAAP operating paradigm. Specifically, the USG seeks industry feedback regarding a strategy to direct fund PWS during the initial years of the contract, but gradually reduce this value to zero by contract year 10 under a modified acquisition approach.

The USG intends to incentivize self-investment and addition of new capabilities to expand RFAAP business base to the maximum extent possible. This could include investments to expand current DoD product lines or enable commercial work. The USG recognizes that industry may have a reluctance to invest if a return is not possible within a limited period of performance. Accordingly, the USG is contemplating extending the period of performance to be 35 years, comprised of an initial 15-year award period and two 10-year options.

The USG believes major DoD funded modernization of RFAAP production equipment and infrastructure is necessary to enhance efficiency by reducing production costs and certain PWS costs. The USG is contemplating the commitment of a fixed modernization dollar value that bidders would propose projects against. Bidders would have significant discretion over their modernization plan and approach to reducing costs.

The USG believes that in the hands of a capable operator, the expanded business base due to addition of capabilities through self-investment and cost efficiencies resulting from DoD funded modernization, RFAAP could be financially viable without direct funding, while still remaining competitive on product prices. The USG seeks industry feedback regarding these concepts and willingness to bid under this framework.