AMENDMENT-AMPV Fielding SSP JA_09-Feb-2021v2 - Redaction (1)_Redacted.pdf

Amendment 01 CMO Control Number: 2020-057

AMENDMENT TO JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command-Detroit Arsenal, Michigan (ACC-DTA) is the contracting activity for this procurement.

2. Description of Action: The Government intends to issue a Firm-Fixed-Price contract modification to contract W56HZV-15-C-A001 for the Armored Multi-Purpose

Vehicle (AMPV). This modification will procure a System Support Package (SSP) to support fielding of the AMPV, on a sole source basis from BAE Systems Land and

Armaments, L.P. (BAE). Army Weapons and Tracked Combat Vehicle funds will be used for this procurement.

3. Description of Supplies/Services: This action will procure a support package consisting of a defined set and quantity of spare parts necessary for initial training and fielding for approximately three brigades of AMPVs being produced under this contract. Refer to the table below. The SSP is comprised of three subsets of parts: 1) Authorized Stockage List (ASL), 2) Special Tools & Test Equipment (STTE), and 3) Spares Acquisition In Production (SAIP). This action also includes a priced option for a relatively small set of SAIP parts (less than 3% of the total estimated value) to be procured in FY21. The contractor shall deliver all spares, properly marked and packaged, in order to support AMPV fielding activities, with delivery of base quantities targeted for early Fiscal Year (FY) 2021.

This action will procure a system support package consisting of a defined set and quantity of spare parts necessary for initial training and fielding for AMPVs being produced under this contract. Refer to the table below. The SSP is comprised of three subsets of parts: 1) Authorized Stockage List (ASL), 2) Special Tools & Test Equipment (STTE), and 3) Spares Acquisition In Production (SAIP). The contractor shall deliver all spares, properly marked and packaged, in order to support AMPV fielding and training activities, with initial delivery targeted for CY 2022.

CLIN & Category Total No. of Unique Parts, in Category

CLIN Qty. Total Est.

Value

0020 2100 - SSP ASL 70 1 Lot 6 Lots $ 7,285K $ 7,813K

0021 2101 - SSP STTE 48 34 5 Lots $ 1,540K $ 3,933K

0022 2102 - SSP SAIP Base 88 82 1 Lot $ 3,075K $ 4,651K

The total estimated value of this contract action is $ 12.3M $16.4M.

4. Authority Cited: No change.

5. Reason for Authority Cited:

BAE is both the system developer and the Original Equipment Manufacturer (OEM) of the AMPV. BAE built and delivered 29 AMPV prototypes under this contract, and has begun Low Rate Initial Production (LRIP), with the first production vehicles deliverable in March 2020 delivered in August 2020. As the AMPV system developer and OEM, BAE is managing the current AMPV production effort, and consequently has the AMPV supply chain already in place, including active purchase orders and subcontracts for parts to support vehicle production.

a. Background:

BAE possesses unique knowledge, experience, and technical data pertaining to the AMPV that is necessary for successful delivery of the SSP which is not available from any other source.

The contract also requires development and delivery of logistics products, including provisioning data and assignment of National Stock Numbers (NSNs), which should be complete by late FY2022. Technical data for competitive procurement is not currently available to the Government, however a Technical Data Package is due at the end of LRIP in FY2023 FY2024. Provisioning data and technical data, which might allow for potential competition or procurement from an alternate contractor if it is determined the Government has sufficient data rights to do so, will not be delivered until after fielding is set to begin. Given that this data is already in development by BAE, it would not be possible for a third party to develop and deliver the necessary data more quickly in order to compete the current spares procurement and meet the Army fielding schedule.

The SSP consists of AMPV system-specific spare parts required to support the Army’s fielding of the AMPV system. The package consists of 70 different ASL items, 48 34 different STTE items, and 88 82 different SAIP items— over nearly 200 different items altogether. Until complete provisioning data is delivered, the Government cannot procure parts independently of the OEM. The lack of provisioning data and validated technical data with corresponding competition rights prevents the Government from being able to conduct a meaningful competition for these parts at this stage of the AMPV system lifecycle.

b. Unacceptable Delay:

BAE is the only source with the unique technical expertise required to manufacture and deliver AMPV Full Rate Production vehicles. Providing for competition for this contract action would result in an unacceptable delay to the agency, in terms of delay in fielding of the AMPV to the soldier. To create the conditions for competition of these spares

Based on the foregoing, providing for competition for this contract action would result in an unacceptable delay in meeting the agency’s requirement. Contracting with any source other than BAE would delay AMPV fielding by at least three to four years.

6. Efforts to Obtain Competition: No change.

7. Actions to Increase Competition: An AMPV TDP is currently under development but is not scheduled required to be delivered until the end of LRIP (FY2023 FY2024).

The Government will monitor Government-funded development of new hardware and software as well as the associated data rights and deliverables, in order to enable potential competition of specific AMPV subsystems or components. Future spare parts procurement actions will be reviewed for competition suitability, including review of data deliverables and rights, on a case-by-case basis. NSN assignment will be complete in FY2022 which will allow for procurement of non-BAE parts from qualified manufacturers.

8. Market Research: No change.

9. Interested Sources: No change.

10. Other Facts: No change.

11/12. Technical/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.

Name: William Cuneo Date: 8 Feb 2021 Title: Product Support Manager, PM MAV Signature: //s//William Cuneo

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, based upon a cost analysis and comparison with an Independent Government Estimate. A cost and price analysis will be conducted by ACC-DTA procurement and pricing personnel to verify that the overall price offered is fair and reasonable. The contractor will be required to submit a certificate of current cost or pricing data.

Name: Suzanne Kay Doetsch Date: 09 Feb 2021 Title Contracting Officer Signature: //skd//

14. Contracting Officer 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.

Name: Suzanne Kay Doetsch Date: 09 Feb 2021 Title Contracting Officer Signature: //skd//