ACC-WRN-18-0010_W56HZV-16-G-0003_0009_Redacted_J&A.pdf

CMO Control Number: 2017-114

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Warren (ACC-WRN) is the contracting activity for this action.

2. Description of Action: This action will result in a new Firm-Fixed-Price (FFP) Delivery Order 0009 (DO 0009), under Basic Ordering Agreement W56HZV-16-G-0003, with General Dynamics Land Systems (GDLS), Sterling Heights, MI for various deployment kits (Engineering Change Proposal (ECP) Delta variants, Base variants, and Double V-Hull Delta kits) supporting Stryker Family of Vehicles (FoV) variants. The award is projected for the fourth quarter of Fiscal Year (FY17). FY15 Procurement, Weapons, and Tracked Combat Vehicles funds will be used.

3. Description of /Supplies: This acquisition is for the procurement of nine different types of deployment kits, consisting of 44 individual part numbers among the nine kits.

DO 0009 will be priced per each, by individual part number. Deliveries shall begin 120 days after award.

A description of each kit is listed below.

a. CREW V2 ECP Delta Kit - Counters Radio Controlled Improvised Explosive Device (RCIED) threats by producing a jamming signal which allows the Stryker to pass safely over an RCIED.

b. DUKE V3 ECP Delta Kit – Works in conjunction with the CREW V2 to counter

RCIED threats.

c. External Light Kit – Provides increased visibility during night operations.

d. SLAT Armor – Grated armor that provides protection against rocket propelled grenades.

e. Mine Roller Adapter Kit – Allows the Stryker mine roller to be installed and operated on Stryker variants. The mine roller locates buried mines in front of the vehicle.

f. Extended Tow Bar – Modified mounting of the tow bar increases vehicles capability to be pulled when disabled or stuck.

g. Lower Limb Energy Attenuating or SKYDEX Kit – Mitigates lower limb injuries of passengers if the vehicle takes an IED blast from below. The material is installed on the interior floor. *

h. Mine Protection Kit – Armor on underbelly of vehicle for extra ballistic protection.

Commented [IKMCUA1]: Operational Security (OPSEC)

i. Stand Alone Conversion Kit – Additional armor kit for the Common Ballistic

Shield which mounts to the roof of a Stryker vehicle.

Each subcomponent of the kit will be procured individually due to the varying quantities required. A list of each part number and quantity is shown below.

DESCRIPTION PART

NUMBER QUANTITIES

EA LOWER LIMB ENERGY ATTENUATING (LLEA)

(SKYDEX)

10690231- 011 379

EA LOWER LIMB ENERGY ATTENUATING (LLEA)

(SKYDEX)

10690232- 011 23

EA LOWER LIMB ENERGY ATTENUATING (LLEA)

(SKYDEX)

10690233- 011 53

EA LOWER LIMB ENERGY ATTENUATING (LLEA)

(SKYDEX)

10690236- 011 11

EA LOWER LIMB ENERGY ATTENUATING (LLEA)

(SKYDEX)

10690357- 011 4

EA LOWER LIMB ENERGY ATTENUATING (LLEA)

(SKYDEX)

10690356- 011 26

MINE PROTECTION KIT (MPK) REAR BLAST

DEFLECTOR

10683319- 011 498

MINE PROTECTION KIT (MPK) REMOVAL AND

INSTALLATION TIME ENHANCEMENT (RITE)

10686552- 011 401

MINE PROTECTION KIT (MPK) REMOVAL AND

INSTALLATION TIME ENHANCEMENT (RITE)

10686553- 011 6

MINE PROTECTION KIT (MPK) REMOVAL AND

INSTALLATION TIME ENHANCEMENT (RITE)

10686554- 011 20

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6532 37

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6533 27

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6534 13

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6542 139

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6545 3

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6547 33

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6549 13

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6553 10

STAND ALONE CONVERSIONS KIT (SACK) W/O

BLAST PLATES 57K6554 66

STAND ALONE KIT (REPLACES SACK DELTA) LS1098275 190

STAND ALONE KIT (REPLACES SACK DELTA) LS1098276 13

STAND ALONE KIT (REPLACES SACK DELTA) LS1098277 33

STAND ALONE KIT (REPLACES SACK DELTA) LS1098278 14

STAND ALONE KIT (REPLACES SACK DELTA) LS1098279 37

STAND ALONE KIT (REPLACES SACK DELTA) LS1098280 27

STAND ALONE KIT (REPLACES SACK DELTA) LS1098281 10

CREW V2 A-KIT (ECP Delta Kit) LS1094827 11

CREW V2 A-KIT (ECP Delta Kit) LS1094208 74

CREW V2 A-KIT (ECP Delta Kit) LS1094728 40

CREW V2 A-KIT (ECP Delta Kit) LS1094855 20

CREW V2 A-KIT (ECP Delta Kit) LS1094853 6

CREW / DUKE V3 A-KIT (ECP Delta Kit) LS1094848 11

CREW / DUKE V3 A-KIT (ECP Delta Kit) LS1094209 74

CREW / DUKE V3 A-KIT (ECP Delta Kit) LS1094854 6

CREW / DUKE V3 A-KIT (ECP Delta Kit) LS1094732 22

CREW / DUKE V3 A-KIT (ECP Delta Kit) LS1094731 18

CREW / DUKE V3 A-KIT (ECP Delta Kit) LS1094856 20

EXTERNAL LIGHTING KIT (ELK) (ECP Delta Kit) LS1094231 144 MINE ROLLER ADAPTER KIT (MRAK) ECP Delta Kit LS1094232 24

SLAT DELTA KIT (ECP) LS1094389 79

SLAT DELTA KIT (ECP) LS1094713 42

SLAT DELTA KIT (ECP) LS1094687 18

SLAT DELTA KIT (ECP) LS1094389 6

Extended tow bar ( ECP Delta) LS1094401 73

The proposed kits enable a Stryker crew member enhanced real time situational awareness and improved protection in a design that fully integrates with the vehicle platform, or chassis. A Stryker crew can operate in hostile environments with full protection using the various deployment kits. These kits enable units to increase survivability of the vehicles, crew, and meet requirements of a strategic objective as directed by the unit’s operational requirements document. * Based on an Independent Government Cost Estimate (IGCE), the total estimated value of this action is $10,971,469.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A)(B), “Only one responsible source and no other supplies or services will satisfy agency requirements”, which states “supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in -- (A) substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) unacceptable delays in fulfilling the agency’s requirements.”

5. Reason for Authority Cited: These kits are proprietary to GDLS, who developed them to meet Government critical survivability needs. They represent a significant investment to the Government and are considered essential to deploy vehicles to hostile environments.

a. Duplication of Cost: Only GDLS possesses a complete Technical Data Package (TDP), the manufacturing processes, tools/test equipment, and technical drawings required for this procurement effort. It would be necessary to reverse engineer all nine kits associated with this procurement to obtain specifications and dimensions for proper manufacturing, since the TDPs are not available for purchase. In response to a request for information, GDLS denied a request to sell the technical data rights for all Stryker variants to the United States Government on 27 Jun 2017. Additionally, kits redesigned and manufactured by new sources of supply will require first article testing and validation adding cost and procurement time. This effort would cost the Government or another contractor, on average, approximately $4.2M (some could be higher based on complexity of kit) for a total of close to $37.8M to redraw, reverse engineer, test, and validate. The Government is not expected to recoup any of these costs through competition. This estimate is based on Stryker Government engineering knowledge of the kits and takes into account historical data on similar design activities.

This $4.2M estimate per kit (for 9 kits; $37.8M) is further broken down as follows:

1. Based on Stryker Government engineering knowledge of these kits and historical data of similar design activities, an analysis determined that typical vehicle improvement cases, of similar scope, cost the Government approximately 8,075 labor hours each (contract W56HZV-07-D-M112/0262 MOD 04) at an estimated rate of $140.75 per hour ($1,136,556).

2. Approximately $1M is needed to develop a TDP, for a new contractor or Government to establish facilities, develop fixtures, and obtain planning and system technical support.

Commented [IKMCUA2]: OPSEC

3. An estimated $600,000 is required to complete associated logistics products.

This includes complete update, authentication, and validation of associated technical manual and installation instructions of the kits.

4. Required testing includes live fire testing of vehicle weaponry which includes scheduling. The average cost of a live fire test on a test range (four shots) is $1.5M.

b. Unacceptable Delay: The total time required to reverse engineer/validate multiple TDPs and locate new sources of supply would take approximately 36 months. Based on similar design efforts, it has been determined that the Government or another contractor would require an estimated 12-24 months to set-up facilities, establish expertise, develop and integrate a design, and perform qualification testing. In addition to the 12-24 month delay, there would be a delay of 12 months to get the contract awarded and the products delivered. This 36-month delay would be unacceptable because without the survivability enhancement kit(s), the health/welfare of Stryker soldiers is placed at serious risk, as units would not have the resident survivability capabilities. These kits are essential to operational readiness. The components are required to complete current, on-going training objectives and are required for Stryker vehicles deployed in theater. The Stryker is considered non-mission capable without these kits.

6. Efforts to Obtain Competition:

a. Effective competition: The Government will not pursue additional competition for this contract action due to the reasons cited in Section 5 above.

b. Subcontracting competition: The contractor is required to submit a Small

Business Subcontracting Plan in accordance with FAR 19.708(b). The Government will make every effort to increase the contractor’s small business participation.

7. Actions to Increase Competition: Currently, Program Management Stryker Brigade Combat Team (PM-SBCT) has implemented a team to reverse engineer the parts in these kits so competition can be sought at a later date?” This will allow the Government to gain control of all technical data, control cost and assure kits and kit parts are properly provisioned to allow competition in future procurement and supply sustainment actions. However, this activity is scheduled to take more than four years to complete the full scope of the project. The kits TDP and all drawings are proprietary information owned by the sole source Original Equipment Manufacturer.

While future requirements to complete and maintain a strategic objective exist, there are insufficient quantities to justify incurring a $37.8M expense of procuring/developing a competitive kits TDP for the reasons stated in paragraph 5, above. However, all future requirements will be handled on a case-by-case basis and steps to increase competition will be taken as the circumstances justify.

8. Market Research:

On 06 February 17, in accordance with FAR 10.002(b)(2)(iii), PM-SBCT and ACC-WRN posted a sources sought notice, to the Federal Business Opportunities (FedBizOpps) website, to solicit interest for the Stryker FoV in the areas of kit production regarding survivability, lethality, logistics, etc. This notice closed on 20 February 2017. All responsible sources were encouraged to submit a capability statement, proposal, or quotation for the Government to consider. The Government received zero responses for Stryker ECP Deployment Kits to include spares.

9. Interested Sources: To date no other sources have written to express an interest or are believed to be capable of supplying the kits to suitable, fit, form, and function. A synopsis for this requirement was posted to FedBizOpps on 21 July 2017, as required by FAR 5.201. Any proposals received in response to the synopsis will be considered.

10. Other Facts:

These kits were procured in the past under contract W56HZV-13-D-0008 with GDLS.

a. Procurement History:

a. Contract Number W56HZV-13-D-0008

Delivery Order/Modification 0027/11 and 0043/01 Award Date: 16 September 2014 and 30 June 2015 Contractor: GDLS Competitive Status: Sole Source Authority Used: 6.302-1, “Only One Responsible Source and No Other Supplies or Service Will satisfy Agency Requirements.”

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Miles Davis Date: 27 Jul 2017 Title: Assistant Product Manager - Kits Signature: //s//

PM-SBCT

12. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Miles Davis Date: 27 Jul 2017 Title: Assistant Product Manager - Kits Signature: //s//

PM-SBCT

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. A cost analysis will be performed to determine fair and reasonableness. The contractor will be required to submit certified cost and pricing data. Certified cost and pricing data will be required IAW FAR 15.403-4(a) (1) which states that the threshold for obtaining certified cost and pricing data is $750,000.00.

Typed Name: Michael T. Alsip Date: 28 July 2017 Title: Contracting Officer Signature: //s// MTA

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Michael T. Alsip Date: 28 July 2017 Title: Contracting Officer Signature: //s// MTA

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of Stryker FoV Deployment Kits, with an estimated value of $10,971,469, on an other than full and open competition basis, pursuant to the authority of 10 U.S. C.2304(c) (1), as implemented by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This approval is subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

X LaRuth Shepherd Competition Advocate