GSA_GSQ0217CJ0002_Jand_A_for_adding_material-_with_signatures.pdf

General Services Administration

Federal Acquisition Service Northeast and Caribbean Region

Limited-Sources Justification December 19, 2017

This justification is prepared in accordance with FAR Part 8.405-6 (C) Limiting Sources.

1. Description of Action

The purpose of this document is to justify adding a maintenance material CLIN with a total Not-To- Excess (NTE) amount of $1,000,000 including all option periods for the task order GSQ0217CJ0002, Management, Technical and Manufacturing support services for US Army ARDEC Prototype Manufacturing Technology Division.

Background:

GSA awarded task order in January 26, 2017, this original solicitation was put out as a small business set aside for 30 days and put out again for another 30 days as full and open competition on GSA eBuy. This contract includes provisions to support classified ammunition development programs with engineering services and manufacturing services. These manufacturing programs involve long term tool and die development efforts that are unique to bullet manufacturing and the particular bullet designs.

This is a performance-base, Time and Materials task order with Fixed Management costs. However, at the time of the contract award, the Government only anticipated labor and travel needs;

therefore, a maintenance material CLIN was not included in the original award.

After the contract awarded, the programs ARDEC supporting have been expanded due to the acceleration of the major program of record, XM1158 – 7.62mm Advanced Armor piercing. PEO

– Ammo and Program Manager Maneuver Armament Systems have formally requested ARDEC to support an acceleration of XM1158 which triples manufacturing efforts for FY18, FY19, 20, 21.

PM-MAS has also created two other new RDT&E programs of record that ARDEC has also partnered on (One Way Luminescence and 5.56mm Advanced Armor Piercing).

2. Description of Supplies or Services: Material CLIN for Maintenance of Industrial Equipment:

The Government has identified work efforts to be included in this maintenance material CLIN, summarized in the table below:

Government Estimate CLIN Functional Requirement OP1 OP2 OP3 OP4 x004 Maintenance Materials $250,000 $250,000 $250,000 $250,000

During the original source selection process an issue was brought to the attention of the technical lead and COR. There were requirements in the Performance Work Statement (PWS) for two maintenance technician labor categories but there is no maintenance material CLIN to allow the contractor to purchase parts or supplies to maintain the industrial equipment. This creates a situation where all the repair parts and supplies have to furnish as Government Furnished Property (GFP). The current process is inefficient because Government Purchase Card purchasing of parts and supplies from 100’s of different vendors is mixed in with several other mission critical purchases. There are limited resources at ARDEC for purchasing staff. This creates a high risk of production delays that will last multiple days or weeks while a machine can be diagnosed, repair parts identified, quotes prepared for Gov’t purchaser, approvals, database entries, and communications with OEMs (Original Equipment Manufacturers) and part suppliers.

Without a maintenance material CLIN in the contract, the maintenance technicians working on the contract cannot be efficient and effective at keeping industrial equipment in good repair and available for small caliber ammo production.

For these reasons, a maintenance material CLIN is critical to allow $250k annually in a maintenance materials line. This would include repair parts, supplies (belts, fluids, spindles, transmissions, sensors, etc..), OEM technical support, and fabricated machine parts that are not available. Since this is a Time and Material contract and the Material CLIN is supporting the maintenance technician labor categories; therefore the addition CLIN is within scope of the original contract.

3. Market Research

All prior market research for this task remains applicable. Original market research was done throughout 2016 by ARDEC and GSA Region 2 AAS Office. Original source selection was done competitively in January 2017.

In summary, the work that UTRS is already supporting on the 7.62mm Advanced Armor Piercing ammo has required personnel to hold security clearances and support long term manufacturing tooling efforts over several years. In response to the acceleration requirement of Dept. of Army it would not be efficient to try and bring another contractor in to support with additional personnel instead of expanding this contract ceiling for labor. With the UTRS maintenance staff on site under this contract vehicle we can improve their effectiveness and response time by allowing them to purchase parts and supplies for those machine repairs directly. This will also allow a more predictable repair schedules to be planned and executed with efficient use of the personnel resources. In whole, this will lower schedule and cost risk for PM-MAS manufacturing programs by reducing downtime on production equipment.

4. Determination of Fair and Reasonable Pricing

The Client has estimated the price for the requirements described herein, and the Contractor has provided its Rough Order of Magnitude (ROM). The two estimates produced roughly equivalent total ceiling increase values. GSA will request a discount for individual work efforts that exceed the simplified acquisition threshold, prior to award of any modification that initially obligates funding for one of the requirements discussed within this justification.

5. Impact if Maintenance Material CLIN is Not Added:

ARDEC has a need to ensure critical equipment is repaired and serviced in a timely fashion to minimize downtime and negative effects to an accelerated program schedule and urgent priority of the Chief of Staff of the Army. In order to meet production schedule, it is critical that machines are repaired in hours or days and not weeks. There is a need to have a contract mechanism and funding in place to react fast enough to avoid lengthy downtime on mission critical equipment. This equipment includes (but not limited to) assembly machines, transfer presses, rotary transfer machines, CNC lathes and mills, CNC screw machines, grinding equipment, and material handling equipment."

6. Interested Source

No additional sources were sought and no other sources expressed interest.

7. Other Facts

This acquisition is conducted under the Multiple-Award Schedule Program.

8. Technical Personnel Certification

Data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

Date:

Signature:

Joshua T. Gallagher Mechanical Engineer Munitions and Prototyping Branch Manufacturing and Prototyping Tech Division US Army RDECOM ARDEC 3150 Gately Rd.

Picatinny Arsenal, NJ 07806 Ph: 973 724 9229 Email: Joshua.t.Gallagher.civ@mail.mil

Determination

GALLAGHER.JOSH

UA.T.1246894325

Digitally signed by

GALLAGHER.JOSHUA.T.1246894325

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=GALLAGHER.JOSHUA.T.1246894325 Date: 2017.12.22 13:41:02 -05'00'

In according with FAR 8.405-6 (C) Limiting Sources, “in the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures” I hereby determine that the material CLIN along with it anticipated Not-To-Excess (NTE) cost for this contract action represent the best value to the Government.

9. Contracting Officer Certification

I certify that the above information is accurate and complete to the best of my knowledge and belief.

Date:

Wei Lu-Gin Contracting Officer (2QFAC)

9. Approvals

Joe Urbanik Deputy Director

Theresa Ramos Competition Advocate

Joe Urbanik Digitally signed by Joe Urbanik DN: cn=Joe Urbanik, o=FAS, ou=GSA, email=joe.urbanik@gsa.gov, c=US Date: 2018.01.09 09:08:27 -05'00'

THERESA

RAMOS

Digitally signed by THERESA

RAMOS

DN: c=US, o=U.S. Government, ou=General Services Administration, cn=THERESA

RAMOS,

0.9.2342.19200300.100.1.1=47001 000214557 Date: 2018.01.09 10:26:59 -05'00'