Forward Repair System NATO_JA_FINAL - Redaction.pdf

CMO Control Number: 2024-003

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL for OTHER THAN FULL AND OPEN

COMMUNICATION

1. Contracting Activity: The United States Army Contracting Command-Detroit Arsenal (ACC-DTA) is the contracting activity for this action.

2. Description of Action: ACC-DTA proposes to award a Firm Fixed Price (FFP) contract for a one-time buy to Glaucus ApS, Sankt Annæ Plads 11, 1250 København K, Danmark, for the procurement of four (4) Forward Repair System North Atlantic Treaty Organization (NATO) M22 (FRS NATO) in support of PM Main Battle Tank Systems (MBTS) Material Fielding Team (MFT) at Fort Cavazos, Texas. The MFT has been tasked by the Department of the Army (DA) to provide these systems to support Abrams’ maintainability in the field in the United States (U.S.) European Command (EUCOM) and U.S. Indo- Pacific Command (INDO-PACOM) theaters. The U.S. has prioritized alliances around the world that includes military equipment and deployments. The Government projects award for 1st Quarter (1QTR) Fiscal Year (FY) 2024 utilizing FY 2022 Army Procurement Appropriation (APA) funds.

3. Description of the Supplies/Services: The FRS NATO M22 is a deploy-able workshop and versatile multitool that that can be used by maintenance personnel in a field environment to keep the Abrams tank in a fully mission capable (FMC) status. The FRS NATO M22 is transported and carried by a tactical truck and is operational on the ground allowing MFT mechanics to support a wide spectrum of operations from installation of weapons and sensitive equipment in base locations to urgent field repairs of damaged vehicles to get them back into battle quickly. This specific FRS NATO M22 model is built on a reinforced NATO Standardization Agreement (STANAG) flat rack, which complies with the NATO STANAG requirements for rail transportation in the European theater and includes an on-board crane, generator, air compressor, welder, cutting and full range of diagnostic and hand tools. The crane can move and replace major components from tracked and wheeled vehicles, including the 6,800 kilogram (kg) heavy power pack (engine and transmission) from the Abrams Main Battle Tank (MBT). The generator is capable of simultaneously providing electrical power for all subsystems, including lighting, induction heater and power take-off for the crane. The FRS NATO M22 can also be connected to an external power source like a transporting vehicle or power grid from 240 volt (v) to 440v. The FRS NATO M22 requirement includes the following:

- 4 x Forward Repair System NATO M22 (FRS NATO M22) Flat Rack (FR) Complete assembly with accessories (not including GFE)

- 4 x Forward Repair Systems NATO, Modification, Generator, US/EU Converter

- 4 x FRS NATO Tool Kit, Abrams, with Drawer Foam Inserts

- 1 x FRS NATO Crane Operator Course, Operator Training Course and Maintenance Training Course in Fort Cavazos

- Operator manual and Maintenance manual in English

The Danish company, Glaucus ApS is the only provider of the FRS NATO M22 and has its own designed flat rack, crane, generator, compressor, and tool load that meets flat rack to enable competitive procurement of the FRS NATO M22. The Government has made attempts to procure the needed technical data for full and open competition but was denied, however since this is a one-time buy, the Government is not interested in obtaining a license for technical data.

Therefore, Glaucus ApS will be the sole source solicited for this effort.

b) Subcontracting Competition: Pursuant to FAR 19.702(b), a subcontracting plan is not required from small business concerns. Based on the Code of Federal Regulations system (eCFR), the small business size regulation for NAICS code 336992 is 1500 employees and in Sam.gov Glaucus is reported to have 25 employees, therefore a subcontracting plan is not required for this action.

7. Actions to Increase Competition: The Government does not have the pertinent technical data for the generator, crane, compressor, and flat rack to enable competitive procurement of the FRS NATO M22. The Government has made attempts to procure the needed technical data for full and open competition, most recently in September 2022, but the company denied the request. This is a one-time buy, and the Government does not plan to pursue a specific reverse engineering effort at this time. Without this data, competitive procurement is not feasible. As such, no additional actions are being pursued at this time.

8. Market Research: Market research was performed by the PM MBTS requiring activity and the ACC-Rock Island Arsenal (RIA) and ACC-Detroit Arsenal (DTA) contracting teams to determine industry capability to meet this requirement. The goal of the market research was to expand competition, but the findings support limiting competition based on FAR 6.302-1 “Only One Responsible Source” and no other supplies or services will satisfy agency requirements.

ACC RIA conducted market research from 13 February 2023 through 13 April 2023 to include web searches on the Army Supply System (i.e., FEDLOG), the Federal Prison Industry (i.e., Unicor website), the Federal Supply System Federal Strategic Sourcing Initiative (FSSI) agreements (i.e., GSA website), Ability One website, and inquiries to the item managers and Defense Logistics Agency (DLA). PM Abrams reached out to Industry members to include General Dynamics Land Systems, the Original Equipment Manufacturer (OEM) for Abrams to see if they or other vendors had the ability to provide this capability. From 13 March 2023 to 29 March 2023, the RIA contracting team conducted an initial web search using existing contracts, required sources, Dynamic Small Business Search (DSBS) tool, and other similar web searches to see if there were any businesses that could potentially meet this requirement. A search of the DSB Quick Market Search using the NAICS code 336992 and keyword Texas yielded the following results: Ten (10) Serviced Disabled Veteran Owned Small Businesses (SDVOSBs), two (2) HUBZones, seven (7) 8(a)s, and fourteen (14) Women Owned Small Businesses (WOSB). These companies are unable to fulfill this requirement.

The companies listed as part of this search consisted primarily of engineering services, component manufacturing, and delivery services. None of the companies in this search brought the full capability together that the Army requires, and they represented different parts of the supply chain that form the build of the overall system.

a) ACC-RIA posted an intent to sole source on the Sam.gov website from 30 March 2023 to 13 April 2023 and no vendors stated they could fulfill the requirement.

b) ACC-DTA contracting posted a sources sought notice (RFI) on Sam.gov website from 24 May 2023 to 31 May 2023 and only one response was received from Glaucus ApS stating it could meet this requirement. Based on the market research and inhouse information, no other sources other than Glaucus ApS can provide this product and services.

9. Interested Sources. To date, no other sources have written to express an interest in the requirement. As shown in the market research, Glaucus APS is the only company that can provide this product and service that meets the performance requirements in the timeline necessary.

10. Other Facts:

A. Procurement History: There is no procurement history for the purchase of the FRS NATO M22 IAW with the requirements stated above in paragraph 5.

1) Contract Number: Not applicable (N/A). No previous contracts were competed for this action.

2) Competitive status: N/A

3) Authority Cited: N/A

4) Justification: N/A

5) Full and open competition: N/A

6) Unusual patterns: N/A

7) Justification: N/A

B. Other Facts: N/A

11/12. Technical/Requirements Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

Printed Name: Michael Athey Michael J. Athey

Title: Chief Materiel Fielding Team Date: 28 Sep 2023

13. Contracting Officer’s Fair and Reasonable Determination: I hereby determine cost to the Government for this procurement action will be fair and reasonable. The Government will utilize the price and cost analysis techniques at FAR 15.404(b)&(c).

Certified Cost and Pricing Data will be required in accordance with FAR 15.403-4(a)(1) “Requiring Certified Cost or Pricing Data (10 U.S.C. chapter 271 and 41 U.S.C.

Chapter 35)”

Printed Name: Roxanna M. Genova-Lasecki //RMGL// Title: Contracting Officer Date:04OCT2023

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

Printed Name: Roxanna M. Genova-Lasecki //RMGL// Title: Contracting Officer Date: 04OCT2023

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of an other than full and open competition basis pursuant to the authority of Title 10 U.S.C. 3204(a)(1), as implemented by FAR) Part 6.302-1 “Only One Responsible Source and No Other Supplies and 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. Total estimated dollar value is $2.7M.

10/12/2023

X Rachel Capaldi Rachel A. Capaldi Command Advocate for Competition Signed by: USA