Bradley A4 Follow-On JA _Redacted.pdf

CMO Control Number:2020-041

JUSTIFICATION REVIEW DOCUMENT FOR OTHER

THAN FULL AND OPEN COMPETITION

Program/Equipment: Bradley A4 Follow-on Production

Authority: Title 10 United StatesCode.2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii)(A)(B)

Amount: $1.696 Billion

Prepared by:

Typed Name: John Finn III DSN: 786-4112 Title: Procurement Analyst/Contract Specialist Date: 11 Mar 20 Email: john.j.finn75.civ@mail.mil

Contracting Officer:

Typed Name: Scott L. Follen DSN: 786-3589 Email: scott.l.follen2.civ@mail.mil Date Reviewed: 11 Mar 20

Technical Representative:

Typed Name: BRYAN J. MCVEIGH DSN: 786-6346 Title:Project Manager, Date Reviewed: 11 Mar 20 Mounted Armored Vehicles Email: bryan.j.mcveigh.civ@mail.mil

Requirements Representative:

Typed Name: BRYAN J. MCVEIGH DSN: 786-6346 Title:Project Manager, Date Reviewed: 11 Mar 20 Mounted Armored Vehicles Email: bryan.j.mcveigh.civ@mail.mil

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Executive Office (PEO, for PEO-managed items)

Typed Name: MG Brian P. Cummings DSN: 255-9949

(signature on hard copy) 17 March 2020

Signature Date

Legal Counsel

Typed Name: Alyssa Labinski DSN: 282-5146

(signature on hard copy) 11 March 2020

Signature Date

Command Advocate for Competition

Typed Name: LaRuth Shepherd DSN: 282-6597

(signature on hard copy) 11 March 2020

Signature Date

Senior Contracting Official (SCO)

Typed Name: Daniel J. Gallagher DSN: 282-7025

Signature on hard copy 24 March 2020

Signature Date:

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

1. Contacting Agency: Army Contracting Command-Detroit Arsenal (ACC- DTA), Detroit Arsenal, Michigan is the responsible contracting agency.

2. Description of Action: ACC-DTA proposes to award a new Fixed Price Incentive Firm (FPIF) Target Requirements contract to BAE Systems, York, Pennsylvania (BAE). This proposed contract is for the production of an estimated 850 Bradley M2A4 and M7A4 vehicles, and repair of legacy components using M2A3, M7A3 and Operation Desert Storm-Situational Awareness (ODS-SA) vehicles as a baseline. This new contract will consist of a base year and four priced option years (FY21-FY25) utilizing Weapons Tracked Combat Vehicles (WTCV) funding.

3. Description of Supplies/Services:

a. The effort acquired under this justification is to produce the M2A4 and M7A4 vehicle platforms developed as a result of the Engineering Change Proposal (ECP) 2 Research and Development (R&D) contract (W56HZV-12-C- 0358). For this effort, BAE shall upgrade M2A3 and M2 Operation Desert Storm- Situational Awareness (ODS-SA) source vehicle to M2A4 vehicles. The contractor shall produce M7A4 vehicles from A3 Bradley Fire Support Team (BFIST) with Fire Support Sensor System (FS3) and M7 BFIST-SA source vehicles.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Specifically, FAR 6.302-1(a)(2)(ii) provides that “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…when it is likely that award to any other source would result in either (A) 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:

Background/History: BAE is the Original Equipment Manufacturer (OEM) of all Bradley variants (A0, A1, A2, ODS, ODS-SA, A3 and A4), BAE is the only known contractor with the requisite technical knowledge, design experience, production facilities, configuration control, and overall management capability to manufacture the Bradley Family of Vehicles (FOV) without a substantial duplication of cost and unacceptable delay. BAE was the source for the upgrade of the Bradley vehicles that were performed through the Bradley ECP2 Research and Development (R&D) effort. Under the Bradley ECP2 R&D contract, BAE designed and developed the M2A4 and M7A4 vehicles and delivered 16 prototype vehicles. The R&D prototypes were used as a baseline to produce the current vehicles under the Bradley A4 Production contract

The Government does not possess the complete technical data package (TDP) nor the complete computer software package to enable competitive re-procurement of the Bradley A4. However, the Government has recently obtained the complete technical data and computer software, with Unlimited Rights, for some key unique Bradley A4 components, The Bradley Government team will continue to address obtaining data and data rights for key readiness-driver components going forward. Without the missing Bradley A4 technical data and computer software, , a new contractor would not be able to produce an A4 vehicle that meets the operational needs.

On 04 October 2019, the Contracting Officer requested a Rough Order of Magnitude (ROM) price from BAE for procurement of a competitive TDP for the Bradley Fighting Vehicle to support future sustainment activities. In a response dated 08 October 2019, BAE submitted a “no bid” indicating that this data is core to its future in the defense business and is not for sale.

Duplication of Cost/Unacceptable Delay: Table 2 below depicts the duplication of cost and unacceptable delay that would be incurred to prepare another source to perform the Bradley A4 Follow-on Production effort.

The PM office developed the estimated cost and time listed in the table below using both combat vehicle history from the Bradley FOV and a bottom-up approach by identifying the tasks to be performed, the number of people needed to execute the effort, and the man-years required to perform the tasks. The estimate also includes the costs for materiel and costs to run tests at the Government test sites.

(i) Technical Data and Logistics: The Government has recently obtained the complete technical data and computer software, with Unlimited Rights, for some component technical data . These components were for Bradley Variants such as the A0, A1, A2 and ODS vehicles as well as some A3 legacy components that will be implemented on the Bradley A4. The Government does not have rights to the design documentation, process work instructions, vehicle CAD models, logistics data and documentation required to integrate the upgraded technologies and hardware into the A4 vehicles. The other drawings and technical data are required to support any issues that arise during production on legacy components.

(i)

(ii) Building Test Vehicles:

The estimated time and cost required to build and test vehicle systems, including the development of manufacturing and production processes, validation of technical data, and qualification of components, (i)

These estimates include time and costs to validate the technical data is complete and dimensionally correct against vehicles produced, and that all models and manufacturing processes are sufficient.

(iii) Production Qualification Testing (PQT): A new contractor would be required to perform PQT as it is required to verify new designs and manufacturing processes. PQT includes testing the vehicles.

Reliability Availability and Maintainability (RAM) testing is required for any new vehicle configuration and is included in the cost and time estimate to verify all parts of the vehicles function and meet all requirements called out in the performance specification for each platform.

Awarding this effort to a source other than BAE would result in a substantial duplication of cost not expected to be recovered through competition.

6. Efforts to Obtain Competition.

a. Effective Competition: Based on the detailed rationale provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action at the prime contractor level. In accordance with FAR 5.201, the proposed Bradley Bradley A4 Follow-on Production Request for Proposal (RFP) will be synopsized and any proposals received after the date of publication of the synopsis will be considered by the Government.

b. Subcontracting Competition: To ensure that BAE competitively awards subcontracts to the maximum extent possible, the contract will contain FAR clauses 52.244-5, “Competition in Subcontracting”, and 52.219-16, “Liquidated Damages—Subcontracting Plan”.

7. Actions to Increase Competition: The Government does not possess the complete TDP nor the complete computer software package to enable competitive re-procurement of the Bradley A4. For several A4 unique components, the Government has received a full set of technical data (TD) and computer software (CS) to those specific components.

Although the current plan is not to compete these A4 unique components at this time, these unlimited rights allows the Government to competitively reprocure these specific A4 components, provided the cost and schedule to develop and qualify a new source meets the program requirements.

BAE will, however, will be required to make the maximum use of competition for subcontractors.

8. Market Research: Project Manager Mounted Armored Vehicles (PM MAV) conducts market research on a regular basis in order to determine if other contractors are able to provide the services in the required timeframe. On 05 November 2019, and in accordance with FAR 10.002(b)(2), PM MAV issued a market survey in the form of a Sources Sought Notice to determine the level of interest in this acquisition. The market survey was posted to FedBizOpps, for 30 days, and closed on 05 December 2019. The Market survey requested information from vendors regarding their production history, production rate, quality and test control as well as cost and schedule support.

In December 2019, PM MAV engineering, logistics, and quality assurance subject matter experts (SME) performed an analysis of the responses.

9. Interested Sources: Other than the OEM, who responded to the Sources Sought Notice, no other contractor has expressed interest in this requirement.

10. Other Facts:

a. Procurement History:

(i). Bradley A4 Production Contract

1. Undefinitized Contract Action (UCA) W56HZV-18-C-0133 was awarded on 14 June 2018 and definitized on 12 July 2019.

2. Sole-source

3. 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)

4. Restrictions on the Government’s data rights as well as limitations on delivery of manufacturing data.

5. N/A,no prior contract for this requirement was accomplished using full and open competition

6. No unusual patterns

7. No significant changes from this Justification and Approval (J&A) to the previous production J&A.

(ii). Bradley M3A3 to M2A3 Conversion Contract

1. W56HZV-16-C-0057 was awarded on 1 April 2016

2. Sole-source

3. 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)

5. N/A, no prior contract for this requirement was accomplished using

6. No unusual patterns

7. No significant changes from this J&A to the previous production

J&A

(iii). Bradley ECP2 R&D contract,

1. W56HZV-12-C-0358 was awarded 14 September 2012.

2. Sole-source

3. 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)

5. N/A, no prior contract for this requirement was accomplished using

6. No unusual patterns

7. No significant changes from this J&A to the previous production

J&A

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.

NAME: Bryan J. Mcveigh DATE: _11 March 2020____ TITLE: PROJECT MANAGER SIGNATURE: (see hard copy)

MOUNTED ARMORED VEHICLES

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.

NAME: Bryan J. Mcveigh _______ DATE: _11 March 2020_____ TITLE: PROJECT MANAGER SIGNATURE: (see hard copy)

MOUNTED ARMORED VEHICLES

13. Fair and Reasonable Cost Determination: The negotiated price will be determined fair and reasonable through a combination of Cost Analysis to thoroughly analyze each of the proposed individual cost elements, in addition to conducting a price analysis to ensure the proposed price is consistent with the Independent Government Cost Estimate (IGCE) and actual historical pricing of similar Program Executive Office Ground Combat Systems (PEO GCS) programs. ACC-WRN has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the PCO by performing the Cost and Price analysis. This analysis will also be supported by a PM MAV technical review. The PCO will request that engineers or similar personnel familiar with the end item review labor types and quantities to ensure that what is proposed is fair and reasonable. The Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) expertise and audit support may be requested for input if applicable. The recommendations contained in the DCAA Audit, DCMA Technical report, and PM MAV Engineering Technical reports will be used to support the Cost/Price Analyst in developing a recommended negotiation position. This detailed Government position will be approved in a comprehensive Business Clearance Review (BCR) consisting of reviews from senior contracting officials. Certified Cost or Pricing Data will be required and will form the basis for this analysis. The results of negotiations, and the detailed Fair and Reasonable determination from the Contracting Officer, will be documented in a Post Negotiation Memorandum (PNM) that will be reviewed and concurred upon by senior Contracting personnel within the Pricing Division.

NAME: Scott L. Follen _______ DATE: _11 March 2020____ TITLE: CONTRACTING OFFICER SIGNATURE: (see hard copy)

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

NAME: Scott L. Follen _______ DATE: _11 March 2020 ________ TITLE: CONTRACTING OFFICER SIGNATURE: (see hard copy)

APPROVAL

Based on the foregoing justification, I hereby approve the procurement for the production of an estimated 850 Bradley M2A4 and M7A4 vehicles and repair of legacy components, on an other than full and open competition basis pursuant to the authority of Title 10 United States Code 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

The approval is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

_____11 May 2020_____ ___(see hard copy)________ Date BRUCE D. JETTE Senior Procurement Executive