News | Dec. 27, 2021

DLA Aviation’s Captains of Industry contract success leads to follow-on award

By Cathy Hopkins DLA Aviation Public Affairs Office

Defense Logistics Agency Aviation’s Captains of Industry contract with Boeing was renewed Oct. 29 for up to 15 years. 

The renewal updates contracting clauses, improves processes and tracking capabilities at the program level, while maintaining shorten administrative-lead times for contract award by pre-negotiating base terms like performance, type of funding and packaging.

Acquisition specialists in DLA Aviation’s Strategic Acquisition Programs Directorate began working on the renewal last November to provide optimal support for customers and update contract clauses. The current BCOI contract vehicle expires in 2028, which allows for existing contract actions to complete their period of performance. New requirements and renewal efforts will be placed against the Boeing Captains of Industry 2. 

“The renewed contract, referred to as BCOI 2, covers a variety of weapons system support for the joint services,” said Amy Yeager, a strategic contracting officer in the directorate working in Philadelphia.  Support ensures logistics management for wholesale and retail supply support, depot-level consumable support, repair of reparables, integrated logistics support, engineering support, packaging, storage, transportation and reliability improvements.

She said performance-based requirements are fixed-priced, incentive fee for non-commercial. performance-based contract line-item numbers and commercial performance-based CLINS are firm-fixed price with performance incentives and disincentives, as well as cost reporting. Clauses for reliability improvements are built into the contract so that if a contractor can improve the performance or the quality of an item, they notify DLA Aviation so changes to the part can be made. 

“BCOI2 includes incentives for suppliers to work with and establish more small business participation as sub-vendors, which in turn helps DLA Aviation meet its small business goals,” said Adam Hubley, the Strategic Contracting Division chief in Philadelphia. “Under the new contract vehicle, any program-level requirements added will include an incentive structure that is expected to maximize subcontractor small business participation.” 

With the success of the first COI and the existing methodology meeting current metrics for material availability, backorder reduction, and small business, metrics will be added to align with our customers’ future requirements as specific program support is added to the BCOI 2 contract. Additionally, Hubley said forecasting and pricing projections for parts requiring tooling will be identified earlier in the acquisition process and with more detail to avoid administrative churn. 

Using contracting vehicles like BCOI 2 reduces the administrative burden not only on DLA but also our military services and suppliers by issuing one contract that can used for various platforms for delivery orders.  There is less administrative lead time because the base terms and conditions of the overarching umbrella contract are already negotiated reducing the need for standalone contracts and proposals. 

“The shorten administrative lead time allows our contracting officers to focus on metrics, performance and pricing during negotiations to add program specific needs to the existing COI contract to support various military services,” said Yeager.