FAR-Part6-JandA_GTS20201124_REDACTED.pdf

Control No: ACC ORL 20-017 Program: Gunnery Training Systems

FOR OFFICIAL USE ONLY

1. Contracting Activity: U.S. Army Contracting Command-Orlando, 12211 Science Drive, Orlando FL 32826-3224.

2. Description of Action: PdM VTS intends to award a single-source Indefinite- Delivery/Indefinite-Quantity (ID/IQ) contract based on full and open competition.

Delivery Orders (DOs) will primarily be Firm-Fixed Priced (FFP) but may contain Cost Plus Fixed Fee (CPFF), Cost, and Time and Material (T&M) Contract Line Item Numbers (CLINs) to ensure the most efficient performance. The proposed $105M ID/IQ contract is planned for award in November 2021. The GTS will have a five-year ordering period with final deliveries required no later than two years beyond the end of the ordering period.

3. Description of Supplies/Services: This effort will result in tech refreshes and upgrades for the Advanced Gunnery Training System (AGTS) and Conduct of Fire Training (COFT) simulation training devices. All systems will continue to utilize the latest Government approved version of the existing Scalable Advanced Graphics Engine (SAGE) software. SAGE is a commercially available Image Generator (IG) Run Time Software (RTS) developed and licensed by Lockheed Martin. The Army currently holds licenses for all existing gunnery simulators and will provide the licenses to the successful bidder, who will be required to upgrade the licenses. The current unit cost of a SAGE IG RTS license upgrade is $1,875. A new license will be required for any new training device produced under this contract. A basic runtime license costs between $7,500 and $10,000 each depending on the quantity bought. The total cost of the SAGE license portion of the requirement is estimated to be $877K which will be on separate and distinct FFP CLINs. The total value of the contract is estimated at $105M.

4. Authority Cited: 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 justification is to cover only the portion of the acquisition, which is brand-name, restricting consideration to an item peculiar to one manufacturer.

5. Reason for Authority Cited: The GTS single-source ID/IQ Contract will have a requirement for the successful bidder to use the existing databases, models, and special effects integrated with the SAGE IG. All GTS bidders have the ability to obtain costs from the SAGE runtime license commercial catalog. The GTS successful bidder will have the ability to purchase a new or upgraded SAGE RTS software license as necessary.

Background: PdM VTS has procured over 1,500 gunnery exercises integrated with the SAGE IG across the various device platforms over the past 11 years. The current database of exercises received extensive verification and validation by Government engineers and Subject Matter Experts (SMEs) over that period to ensure the prescribed training was accurate, realistic, and achieved the specific objectives laid out in Training Circular 3.20-31 (Gunnery Manual). The vehicle platforms are utilizing the SAGE IG in their embedded training solutions and these exercises are also in the

FOR OFFICIAL USE ONLY

devices we sell to our allies via Foreign Military Sales (FMS).

Alternatives: The Government considered three options. First, the Government can allow the use of any IG software which will require either rebuilding or significant modifications and integration of the current 1500+ library of exercises, databases, models, and special effects. This will also require an additional year of schedule and substantial labor effort for the bidder to verify the exercises, databases, models and special effects prior to Government validation. The cost to the Government associated with this option will exceed $5M in additional labor costs considering the technical manpower required by the bidder and the Government to validate hundreds of hours of exercises, databases, models and special effects. The Government does not consider this a feasible option given the substantial duplication of cost and time necessary to implement and the fact that any new exercises introduced on the GTS contract with a different IG will not be available for use by FMS customers or with the platforms' embedded training capabilities that also use the SAGE IG. This will also result in an unacceptable delay in meeting mission requirements.

The second option has the Government reducing the requirement of maintaining the 1500+ exercise library down to only those that are critical Gate to Live Fire and specialty exercises. Since PEO STRI does not have the authority to reduce this requirement unilaterally, this option will delay the effort a minimum of 12 months while we coordinate with the multiple platforms’ stakeholders to get a critical exercise list approved. Given the urgent need for tech refresh across all platforms in the field, this option creates a risk to ongoing training and readiness when fielded device failures increase as components reach end of life. This also assumes that all of the stakeholders agree to reduce the exercise libraries, which is not likely unless the benefit to do so outweighs the loss of training capability. Lastly, option two does not allow FMS or embedded systems to share newly developed exercises created on the GTS contract. The Government feels this option is also not feasible given the same restrictions in option one with the added substantial time delay needed to change the training requirement.

The third option, presented in this document, requires the use of the commercially available SAGE IG to meet cost and schedule, but removes the cost of the SAGE IG license from the Total Evaluated Price (TEP) to level any perceived unfair competitive advantage. This option has no loss of training curriculum, allows for seamless transfer of crews between gunnery trainers and their embedded training platforms, sharing of exercises, databases, models and special effects with FMS customers, and reduces the cost of the requirement to the lowest possible level.

Justification: The detailed rationale for this decision is:

a. The U.S. Army has invested an estimated $47 million in developing and integrating the current library of over 1,500 gunnery exercises using the SAGE IG software, not including the cost of the Government verification/validation process. In the last 11 years, this is the first time a specific IG software is a

FOR OFFICIAL USE ONLY

requirement on a contract. The two primary contractors that developed the existing gunnery trainers used the SAGE IG through multiple evolutions of the software. To revalidate the library of exercises using an alternate IG would take in excess of $5M in bidder and Government labor and an estimated 12 months to complete.

b. The exercises developed for the U.S. Army Armor School Program of Instruction (POI) are a combination of prescribed crew training programs (e.g.

Gate to Live Fire per TC 3.20-31) and special purpose exercises that allow crews to virtually train using ammunition that is restricted from live fire ranges due to the distance it travels and/or damage inflicted to the range itself. If this request is denied, the Government team believes the special purpose exercises that are not required to qualify in the tank will be greatly reduced to lower the total cost of the effort, therefore, critical training capability will be lost to U.S.

and allied armor crews.

c. AGTS has a symbiotic relationship with PM Abrams and FMS Customers where SAGE IG investments made by any of the four parties (PEO STRI, USMC PMTRASYS, FMS and PM Abrams) are shared amongst the group. If this request is denied and the SAGE IG software is replaced, the other stakeholders’ training will be affected because improvements cannot be shared among the programs.

d. During Market Research, two industry respondents proposed using a different IG and automation tools to verify the exercise library, in order to replace the extensive man-hours for the validation process. The automated software tools proposed are helpful to the developers only and do not remove the Government's requirement to validate each exercise frame-by-frame prior to signing the acceptance. Automated testing does not catch various visual anomalies that would be distracting to a training crew. If a new IG solution is allowed, the increased labor cost of the bidder verification and Government validation processes is not considered in the GTS contract ceiling, has not been authorized by the GTS Stakeholders, nor has the additional time necessary been included in the Period of Performance.

The mandatory use of the commercially available SAGE IG software avoids substantial duplication of costs to the Government that is not expected to be recovered through competition, and unacceptable delays in fulfilling the Government’s requirements.

a. Impact: If this request is denied and the SAGE IG software is replaced, the other stakeholders’ training will be affected because improvements cannot be shared among the programs. Additionally critical training capability will be lost to U.S. and allied armor crews. There will be substantial duplication of costs to the Government that is not expected to be recovered through competition, and unacceptable delays in fulfilling the Government’s requirements.

FOR OFFICIAL USE ONLY

6. Efforts to Obtain Competition: The single-source ID/IQ contract will be competitively awarded.

7. Actions to Increase Competition: The single-source ID/IQ contract will be competitively awarded. Fair opportunity will be provided to all GTS bidders. If in the future, the systems can be upgraded without the use of SAGE IG software, the Government will consider that option.

8. Market Research: Multiple Industry Days were held to allow interested bidders to view each of the existing platform trainers in operation and all available program technical documentation. The first Industry Day was held 10-11 September 2019 at Fort Benning, GA. The second Industry Day was held 18-19 September 2019 at Camp Pendleton, CA. Industry Days included briefings and demonstrations provided by the Government to interested parties. The purpose of Industry Days was to ensure that Industry understands the documents posted on the beta.Sam.gov website, to eliminate any potential misunderstanding or miscommunication, to facilitate a positive exchange of information between the Government (PEO STRI and PM TRASYS) and Industry partners regarding the GTS program requirements and contracting approaches, and to strengthen the Government’s market research position, while also sharing the draft requirements to solicit Industry input and eliminate ambiguity and confusion. The requirement for the reuse of the SAGE IG was presented during the Industry Day briefings. The program team also addressed all questions presented at the multi-day events. The Statements of Work (SOWs) for the Base IDIQ and first three DOs and specifications were posted to beta.SAM.gov on 27 Nov 19 as a Request for Information and clearly stated the requirement to reuse the SAGE IG. Responses were due on 20 Jan 20. The Draft Contract Delivery Request List (CDRL) were posted on 16 Jan 20 with responses due 4 Feb 20. Potential bidder questions on the base and first three SOWs were answered in written form and posted to beta.SAM.gov on 19 Feb 20. The fourth Delivery Order SOW and CDRLs were posted on 14 Apr 20 with responses due on 28 Apr 20. Potential bidder questions on the fourth SOW and CDRLS were answered in written form and posted to beta.SAM.gov on 5 May 20. The program team also met face-to-face with five interested companies to address their questions with the requirements from Dec 19 through Mar 20. During initial market research no potential bidders raised any concerns regarding the requirement to reuse the SAGE IG in the GTS effort. As a result of feedback received from the Government’s Draft Request for Proposal, the cost of the SAGE IG has been removed from the TEP. This Justification will be made publicly available with the solicitation in accordance with FAR 6.305(c).

9. Other Facts: The effort necessary to validate a new IG is extensive. The validation effort would include verification of the following items:

• Databases - places of interest, ranges, various terrain types

• Vehicle Models - visual representation, thermal representation, firing animations, dust trails, articulation of parts (turret, cupola, weapons)

FOR OFFICIAL USE ONLY

• Lifeform Models - visual representation, thermal representation, firing animations, stance changes, articulation of appendages (limbs/heads)

• Visual Effects - munition explosions (Kinetic & High Explosive) on vehicle models, ammunition hit effects on buildings and terrain, lifeform models, various terrain types (moving water/dirt/hard surfaces), own vehicle sight obscuration effects due to weapons fire, tracers, smoke grenades, mortar fire, flare illumination, weather effects

• Ownship Model - accurate viewport locations, visual representation out of each sensor

• Detection, Recognition, Identification (DRI) - DRI of targets at various ranges from each sensor (day and thermal)

• Symbology - reticles/symbology for various sensor and weapon munitions, zoom levels

• Fields of View - measurement of fields of view for each sight and periscopes to replicate the tactical platform

• Performance - the image generator performs adequately under all expected exercise conditions, the performance does not degrade when under required load of models/animations/effects, etc.

The above tasks have already been successfully completed with SAGE IG, saving the Government time and cost in meeting the GTS schedule. Integrating a replacement IG, even one that was validated on another system, would require a significant amount of Government validation effort since it has not been integrated with the GTS software.

Contract History:

See Appendix 1

The portion of the requirement related to the SAGE IG is less than 1% compared to the total value of the requirement and is a software license that is commercially available to all contractors. This will ensure that fair opportunity is provided to all bidders.

FOR OFFICIAL USE ONLY

APPENDIX 1

Program Award Date Contract #

Contract Type

Source Selection

Type Awardee Awardee

Size Contract

Value Description

Abrams

AGTS 12/20/2016

W900KK-09-D-

0314-0018 FFP Sole Source LM RMS Large

$11,756, Produce 4 Mobile M1A2 SEP v2 AGTS & 52 M1A@ SEP v2 AGTS FM2 upgrade kits

Stryker

MGS

AGTS 6/22/2016

W900KK-17-C-

0009 FFP Sole Source LM RMS Large

$3,481,7

63.07 TC 3-20.31 concurrency upgrades

Bradley

COFT 1/28/2016

W900KK-09-D-

0569-0004 FFP Sole Source OASIS Small

$55,877, Produce 44 Mobile/Institutional systems & 40 Table Top Trainers

Bradley

COFT 4/16/2014

W900KK-09-D-

0569-0003 FFP Sole Source OASIS Small

$11,962, Produce 7 Mobile systems, 22 Table Top Trainers & 69 TTT upgrade kits

Stryker

MGS

AGTS 12/30/2011

W900KK-09-D-

0314-0014 FFP Sole Source LM GTL Large

$8,533,8 19.09

Produce 2 Stryker MGS AGTS & 11

TAGTS

Abrams

AGTS 9/9/2011

W900KK-09-D-

0314-0013 FFP Sole Source LM GTL Large

$39,990, Produce 11 mobile M1A2 SEP v2 AGTS, 10 M1A1 mobile C-AGTS & 61 M1A2 SEP v2 AGTS/M1A1 C- AGTS tech refresh upgrade kits

USMC

AGTS 4/8/2011

W900KK-09-D-

0314-0011 FFP Sole Source LM GTL Large

$26,273, Produce and deliver 20 LAV-25 Driver Stations, 42 LAV-25 AGTS UPS kits, 21 LAV-25 AGTS single Instructor/Operator kits, one Integrated Mobility System for the LAV-25 AGTS, and 20 SAGE IG Upgrade kits for the LAV-25 AGTS with M1A1 AGTS enhancements

USMC

AAV-TT 1/1/2011

M67854-11-C-

8002 FFP

Full and Open

Wegmann USA Small

$16,500, Produce tech refresh and performance upgrade to include a higher fidelity driver station and gunner out-of-the-hatch views for enhanced training capabilities

Bradley

COFT 7/9/2009

W900KK-09-D-

0569-0002 FFP

Full and Open OASIS Small

$45,899, Develop & produce 9 Institutional, 25 Mobile and 69 Table Top COFT-SA trainers (later renamed Bradley

COFT)

Stryker

MGS

AGTS 5/7/2009

N61339-07-D- 0707-0011 FFP Sole Source LM STS Large

$8,373,4

16.48 Produce 6 Stryker MGS AGTS

Abrams

AGTS 2/29/2008

N61339-07-D- 0707-0003 FFP Sole Source LM STS Large

$22,958, 811.18

M1A2 SEP Upgrade kits and M1A1 SA C-AGTS Upgrade kits

Stryker

MGS

AGTS 12/29/2006

N61339-00-D- 0707-0036 FFP Sole Source LM STS Large

$10,481, Develop & Produce 5 Stryker MGS

AGTS

USMC

AGTS 9/26/2006

N61339-00-D-

0707-0032 FFP

Modified Existing DO utilizing Sole Source LM STS Large

Produce 2 LAV-25 AGTS & integrate additional M1A1 AGTS P3I

USMC

AGTS 8/12/2005

N61339-00-D-

0707-0010 FFP

Modified Existing DO utilizing Sole Source LM STS Large

Develop and produce M1A1 AGTS P3I

USMC

AGTS 6/30/2005

N61339-00-D- 0707-0034 FFP Sole Source LM STS Large

$3,457,8 10 Develop & produce 10 M1A1 DAGTS

USMC

AGTS 5/3/2005

N61339-00-D- 0707-0032 FFP Sole Source LM STS Large

$7,081,6 65.00

Produce 15 FEP/OIP kits for M1A1

AGTS

Abrams

AGTS 1/15/2005

N61339-00-D- 0707-0031 FFP Sole Source LM STS Large

$24,467, 546.24

M1A2 SEP Upgrade kits and M1A1 SA C-AGTS Upgrade kits

USMC

AAV-TT 1/1/2005 FFP

8A Competitive T.J. Inc. Small

$1,700,0 00 Produce 16 AAV-TTs

USMC

AGTS 2/27/2004

N61339-00-D- 0707-0024 FFP Sole Source LM STS Large

$25,715,

301.93 Produce 16 LAV AGTS & 17 DAGTS

USMC

AGTS 6/30/2003

N61339-00-D- 0707-0023 FFP Sole Source LM STS Large

$6,440,7 83 Develop & produce 2 LAV-25 AGTS

Abrams

AGTS 6/18/2003

N61339-00-D- 0707-0022 FFP Sole Source LM STS Large

$3,581,9 59 Produce 4 M1A2 SEP AGTS

Abrams

AGTS 6/7/2002

GS09K99BHD0

004-HT04; TO

N61339-02-F-

1005 FFP

Full and Open Dyncorp Large

$13,359, 807 Produce 33 M1A1 C-AGTS

USMC

AGTS 6/6/2002

N61339-00-D- 0707-0010 FFP Sole Source LM STS Large

$16,680, 546 Produce 16 USMC M1A1 AGTS

Abrams

AGTS 2/22/2002

N61339-00-D- 0707-0009 FFP Sole Source LM STS Large Unknown Produce 7 mobile M1A2 AGTS

Abrams

AGTS 6/30/1994

N61339-94-C-

Fixed Price with Award Fee

Full and Open LMIS Large

$59,157, Develop and produce M1A2 and

M1A1 AGTS