A11 - SPRBL120Q0065_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRBL1-20-Q-0065

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[X ] ORIGINAL

1. The Defense Logistics Agency (DLA) Land at Aberdeen is the contracting activity.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis.

3. The supplies/services required to meet the using activity’s needs are described as follows: See Attachment

0001.

Identify end item, weapon system, or class of item:

The items being sought under this Solicitation are spare parts that support the sustainment and function of the AN/VSQ-6B Vehicle Optics Sensor Systems (VOSS). The VOSS is an enabler/modular payload capability for the Medium Mine Protected Vehicles (MMPV) Type I and Type II supporting route and area clearance, and Explosive Ordnance Disposal (EOD) and Chemical, Biological, Radiological, Nuclear and high yield Explosives (CBRNE) Response Team operations. The VOSS fills a critical capability gap to interrogate and classify explosive hazards, provide force protection, and enhance platform and Soldier survivability. The VOSS is a vehicle mounted multi-sensor optical device integrated onto a telescopic mast. The system can be raised or lowered to improve line of sight (LOS) and enable Soldiers inside the MMPV to visually scan, locate and identify suspected improvised explosive devices (IEDs), explosive hazards indicators, and explosive hazard activities far forward of the formation. The specific spare parts to be covered by the solicitation and resulting contract is identified in Attachment 0001.

Federal Acquisition Regulation (FAR) Part 13.5 for Commercial Items under Special Emergency Procurement Authority (SEPA) procedures will be used for this procurement. Army Working Capital Funds (AWCF), FY20 Other Procurement Army (OPA), FY20 Operations and Maintenance Army (OMA), and Foreign Military Sales (FMS) Funding will be used for this effort.

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE: N/A

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

4. The statutory authority permitting other than full and open competition is:

[X] 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

Brief narrative supporting the situation and weapon system:

The VOSS is a commercial-based system. The Government does not currently possess the Technical Data Package (TDP), and all associated firmware and software are proprietary to Lockheed Martin Gyrocam Systems (LMGS) (CAGE 1UMJ7) whose parent company is Lockheed Martin Corporation Missiles and Fire Control (LMMFC) (CAGE 04RY2). As the Original Equipment Manufacturer (OEM) supplier of VOSS at the system and individual spare parts levels, LMGS is the only manufacturer with the comprehensive knowledge and expertise necessary to produce these parts. While LMGS is the manufacturer on some, but not all, of the National Stock Numbers (NSN) listed on Attachment 0001, as system integrator, it is the sole source contractor for all VOSS components.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

Lockheed Martin Gyrocam Systems (LMGS) (CAGE 1UMJ7)

The use of the authority cited below:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[X] AMC 5. Acquire directly from the sole source contractor, who is not the manufacturer.

The use of the authority cited is based on:

* Note: VOSS is managed by Army Program Manager Ground Sensors (PM GS), transitioning to Army Communications-Electronics Command (CECOM), and this contract is the first time these parts are purchased as individual spares. Through the early months of Calendar Year 2020, PM GS and CECOM worked with provisioners on coding for all parts (Attachment 0001). While some may still have temporary codes for this single purchase contract under SEPA with expiring OMA and OPA funding, attached is the list of the latest provisioning per the contracting office’s numerous communications with the customer/provisioner.

[X] AMSC A*. The Government's right to use data in its possession is questionable. This code is only applicable to parts under immediate buy requirements and for as long thereafter as rights to data are still under review for resolution and appropriate coding. This code is assigned only at the conclusion of limited screening, and it remains assigned until the full screening process resolves the Government's rights to use data and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, or if the data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

[X] AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

[X] AMSC H*. The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[X] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data.

If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

[X] The supplies are urgently required to maintain VOSS and the military capability of the Service using it will be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals and not delay award of the contract. The negative impact if not procured in an urgent manner can be described as follows:

It is paramount that the Government has a viable contract to sustain fielded systems as well as support the reset and upgrade of systems at Tobyhanna Army Depot, thereby enabling fielding of capability to Warfighter. To do otherwise would adversely impact the Army’s ability to successfully provide the Warfighter with VOSS and could increase the risk of serious injury or loss of life to Warfighters. LMGS has made the decision that it will no longer support any additional contracts above and beyond the current limited contract SPRBL1-18-D-0024. In order for VOSS to be sustained until Economically Useful Life (EUL) (FY 35), LMGS has agreed to support a one-time Spot Buy of both Line Replaceable Units (LRUs) and Shop Replaceable Units (SRUs) for parts that are not on the current Contract.

[ ] The requisitioner has assigned a priority designator within Issue Priority Group I. The assignment of a priority designator within IPG I is controlled by the procedures of Department of Defense Directive 4410.6 and indicates that the Services’ military capability will be seriously injured unless the agency is permitted to limit the number of sources from which it solicits proposals. Requirements citing an IPG 1 priority are certified as accurate by review of the commanding officer of the requisition unit or designated representative. Only the most urgent requirements are properly coded within IPG 1.

[ ] The requisitioner has also cited an expedited handling signal of 999, N , or E or an Office of the Secretary of Defense/Joint Chiefs of Staff project code beginning with a "9". (DoD 4000.25-1-M describes the circumstances where these codes may be assigned.)

[ ] Procurement from a specified source or agency is authorized by statute, (list).

[ ] This acquisition is being processed in accordance with the Class J&A which covers Diminishing Manufacturing Sources and Material Shortages (DMSMS) Life of Type (LOT)

6. [ ] Other:

(Explain) . Efforts to ensure that offers are solicited from as many sources as practicable are:

[X] A synopsis exception cited in FAR 5.202 applies. (explain) FAR 5.202(a)(13): The proposed contract action is for an amount not expected to exceed the simplified acquisition threshold; will be made through a means that provides access to the notice of proposed contract action through GPE; and permits the public to respond to the solicitation electronically.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

The required NSNs are determined to be commercial. Fair and Reasonable Cost will be determined based on the commercial market value of similar commercial items. Although this is the first time these NSNs are being procured as individual units, historical pricing on the acquisition of the complete system will also be used to determine cost. Other than certified cost and pricing data will be requested from the Vendor if necessary.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice (SSN) was posted to FedBizOps on 30 August 2018 with a closing date of 11 September 2018. The SSN was amended multiple times as the need for more parts on the VOSS system were realized. The final amendment occurred on 7 June 2019 with a response date of 24 June 2019. There were only 3 respondents to the Survey: BMT Consulting Inc (CAGE 5FZ62), InnaLabs Limited (CAGE SDYY3), and Lockheed Martin Gyrocam Systems (CAGE 1UMJ7).

The technical evaluation of the responses to the SSN determined that LMGS is the only vendor capable of meeting the Government’s requirements for this acquisition.

Due to the age of the initial market research, and in an effort to continuously monitor the commercial market and encourage the opportunity for more competition, a new SSN was posted to beta.SAM.gov on 4 May 2020. The SSN closed on 11 May 2020 with no responses.

Additional market research included reviewing potential alternative parts and vendors through multiple internet searches. Technical experts reviewed the market to evaluate the industry for changes or alternate sources, however, because the Government does not possess the Technical Data Package (TDP), it is not possible to evaluate alternatives to the VOSS on the commercial market. Any attempts to reach out to other potential sources of these parts has resulted in being directed back to LMGS as system integrator/sole provider. Based on the market research, it has been determined that the market for these items has not changed.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

[X] A market survey was conducted on/during 30 August 2018 – 11 May 2020.

Total number of vendors contacted: 3 Names of vendors contacted and responding: Lockheed Martin Gyrocam Systems (CAGE 1UMJ7), BMT Consulting Inc. (CAGE 5FZ62), InnaLabs Limited (CAGE SDYY3) Techniques used to conduct survey: SSN on FedBizOps/beta.SAM.gov Types of information requested:

Summary of information received:

BMT Consulting Inc. is a federally certified Service-Disabled Veteran-Owned Small Business (SDVOSB) that specializes in Governance Information Technology. BMT Consulting currently employs less than 15 employees in which its work focuses on the Management Consulting Services business/industry within the Engineering, Accounting, Research, and Management Services sector. A technical evaluation of BMT Consulting determined that the vendor did not possess the manpower, experience, logistics, or facilities needed to meet the Government’s requirements.

InnaLabs Limited is a Large Business, International Organization based in Dublin, Ireland. InnaLabs responded to the Notice with Major Navigation and Tactical Grade Accelerometer Models, which are not part of the VOSS System. The technical evaluation of InnaLabs Limited’s response determined that InnaLabs Limited did not possess the experience or systems to meet the Government’s requirements.

LMGS was the only respondent with VOSS actual components. LMGS is the OEM for VOSS and owns the electrical and physical interfaces within the primary components. LMGS possesses the manpower, inventory, and facilities to meet the Government’s requirements. In addition, LMGS is the only respondent that possesses experience in production of VOSS components.

Information received regarding the commerciality of the item(s):

In 2012, the Army Inspector General (IG) issued Report: “DoD Countermine and Improvised Explosive Device Defeat Systems Contracts for the Vehicle Optics Sensor System” (Report No. DODIG-2012-005) to determine whether the procurement methods used to acquire parts for the VOSS were in accordance to Federal and Defense acquisition regulations (Attachment 0003). Included in the findings of this report, it was determined that VOSS is commercial and sold to the general public, such as private security firms and cinematographers. Per Defense Logistics Acquisition Directive (DLAD) Section 12.101(a)(90)(6)(vi), prior agency or department determinations of commerciality should be considered a potential indicator of commerciality. The statutory preference is to accept a prior determination of commerciality, absent a reason to the contrary. The VOSS system, which incorporates these parts, is currently being procured on contract SPRBL1-18-D-0024 using FAR Part 12, Acquisition of Commercial Items in accordance with the IG report.

9. Additional facts supporting other than full and open competition are:

[X] As stated in the attached certification by the requiring activity, the Military Services will be seriously injured in contract award is delayed. The extent and nature of harm are detailed in the attached certification: Attachment

10. A listing of sources, if any, indicating an interest in the acquisition is:

BMT Consulting Inc

CAGE 5FZ62

InnaLabs Limited

CAGE SDYY3

Lockheed Martin Gyrocam Systems

CAGE 1UMJ7

11. The following actions are being taken to identify additional sources:

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [ ] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [ ] Other

[ ] over $93,000,000 Senior Procurement Executive (AQ) (DLA General Counsel signature line required when sending to AQ)

Attachments:

Attachment 0001 – NSN List Attachment 0002 – SEPA Justification Attachment 0003 – Army Inspector General (IG) issued Report: DoD Countermine and Improvised Explosive Device Defeat Systems Contracts for the Vehicle Optics Sensor System (Report No. DODIG-2012-005)