The action that is being solicited for is to purchase DLA owned buffer stock and have the manufacturer manage and maintain the buffer stock through Vendor Managed Inventory (VMI) requirements for 5 years. The supplies to be acquired – the FRH, a significant support component to the final MRE product. Without working FRH units, the MREs cannot be heated. The proposed contract will establish an upstream FRH buffer stock level at the sole source manufacturing facility (Luxfer Magtech) The maximum dollar value of the proposed contract is $1,725,000.00 which is based on government estimates contained in Program Description and Approval Document (PDAD) prepared on February 10, 2020 and shall include the actual FRHs and Management Fees for the first year as two separate line items.  In a report by a contractor (BATRA) and after discussions with the MRE assemblers, it was recommended that DLA make a one­time investment for a total of 4.3M FRH to bridge the lead time gap of 70 days.

Market Research suggests establishing a buffer stock of FRH material has the clear benefit of increasing DLA's readiness response time in order to serve a growing demand for MREs from the Federal Emergency Management Agency (FEMA) while still providing ongoing support to the Warfighter. Establishing a buffer upstream decreases the logistical complexity and overall cost of managing material for the suppliers rather than multiple vendors buying, holding, and rotating FRHs.

It is anticipated that a firm-fixed price commercial purchase order will be awarded for the requested supplies as a result of this request. Award will be based on industry capability, past performance, technical specifications and price for commercial items.