GSA_GSQ0217CJ0002_Jand_A_for_ceiling_limit_increase_-_with_signatures.pdf

General Services Administration Federal Acquisition Service

Northeast and Caribbean Region Limited-Sources Justification

December 19st, 2017

This justification is prepared in accordance with FAR Part 8.405-6 (a)(1)(i).

1. Description of Action

The purpose of this document is to justify a ceiling increase of $6,959,968.32 for the task order GSQ0217CJ0002, Management, Technical and Manufacturing support services for US Army ARDEC Prototype Manufacturing Technology Division.

Background:

GSA awarded this task order in January 26, 2017; the original request for proposal (RFP) was solicited as a small business set-aside for 30 days and solicited 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.

At the time of the original award, the Government placed a cap on the estimated ceiling of the order

– the estimated ceiling was capped of $3,000,000.00 annually due to the Government’s expectation that it would not fund more work than that.

Subsequently, the estimated value has been increased to $5,000,000.00 annually 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).

With the approval of the in-scope ceiling increase, the total awarded value of this contract including all option periods will increase from $15,880,232.20 by $6,959,968.32 to $22,840,200.52 for a total of five (5) years. The incumbent contractor is UNIVERSAL TECHNICAL RESOURCE

SERVICES, INC. (UTRS).

2. Description of Supplies or Services:

The Government has identified work efforts to be increased, summarized in the table below:

Government Estimate CLIN Functional Requirement OP1 OP2 OP3 OP4 x001 FFP Program Management $50,000 $50,000 $50,000 $50,000 x002 Engineering and Manufacturing Labor $4,625,000 $4,763,750 $4,906,662 $5,053,862 x003 Travel $75,000 $75,000 $75,000 $75,000

Totals $4,750,000 $4,888,750 $5,031,662 $5,178,862

Additional details regarding each In-scope addition are provided below:

a. Engineering and Manufacturing Labor Increase:

The Army has the requirement to develop several small caliber ammunition products through Program Executive Office Ammo. These programs are being managed by Program Manager – Maneuver Armament Systems (PM-MAS) which is the single manager of all conventional ammo for the DOD.

The major engineering center supporting ammunition for the Army is RDECOM-ARDEC which is co-located with PM-MAS at Picatinny Arsenal, NJ. The original task order contract was stood up to support ARDEC’s Prototype Manufacturing center with engineering and manufacturing labor. The chief of staff of the US Army has requested that PM-MAS (and ARDEC) accelerate the development of a major 7.62mm armor piercing round to match a rapid fielding of a new marksman rifle. This request will cut two years off the five year development cycle and create a need for additional engineering and manufacturing resources the manufacturing center. The memo from US Army COS has been shared with the PCO already. PM-MAS is also expecting a Joint Urgent Need Statement to come down from the Dept. of Army soon on the same program.

b. Travel Increase:

The additional work the Government required to stand up the supply chain much faster has created a requirement for additional travel expenses.

For this reason, the travel NTE CLIN will need to be raised by $17k to $75k per year.

3. Within Scope Determination:

The NTE ceiling increase requested are within the scope of the Performance Work Statement (PWS) as originally published with the RFP. The PWS was written with the knowledge that programs would be added, modified or scaled to respond to the changing needs of the Army User.

However, it could not have been quantitatively known at the time what these changes would be.

This ceiling NTE increase does not constitute additional work or additional scope.

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

A market research was conducted as part of the evaluation process for award of this Task Order.

Labor rates for the labor categories employed during the evaluation process for award was compared against 3 other GSA Schedule contractors in January 2017 for price reasonableness determination. UTRS’s prices were determined to be fair and reasonable.

The labor mix and amount of additional level-of-effort applied to this modification is considered to be fair and reasonable, as it was established by the Government’s COR, William Bakula.

Furthermore, IAW FAR Subpart 8.404(d) Pricing, GSA has already determined the fixed-price services, and the rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d).

Notwithstanding, if the order amount is expected to exceed the simplified acquisition threshold, an additional price reduction shall be sought IAW FAR Subpart 8.405-4 Price reductions.

5. Impact if Ceiling is Not Increased:

ARDEC Prototype Manufacturing is directly responsible for the prototyping and development of an extensive list of small caliber ammunition products. One such product has been given an urgent priority by the Chief of Staff of the Army. As a result, the four year program development schedule has been accelerated by two years. This acceleration has created a need to add additional cleared personnel to the service contract to meet mission needs over the next four years. The expertise of services contractors to provide support beyond the Government’s existing capabilities is necessary to successfully achieve ARDEC's mission. Due to the need to accelerate the schedule, additional personnel support is required immediately. Any shortfall in the timely increase of support services personnel will negatively impact the aggressive schedule and product quality. This will ultimately place the lives of Warfighters in jeopardy and at the same time degrade system/equipment capability and the success of the Warfighter’s mission.

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 Based on the above, it is determined that it is justified and is in the Government’s best interest to award on a limited sources basis under FAR Part 8.405-6 (a) (1) (i) an urgent and compelling need exists, to increase the Not-to-Exceed (NTE) ceiling for the Task Order Option Periods (in the amount of $6,959,968.32 under UTRS’s ITSS Task ID 02160006.

I hereby determine that the anticipated cost to the Government for this contract action represents the best value consistent with FAR 8.404(d).

9. Contracting Officer Certification

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

Date:

Signature: Wei Lu-Gin Contracting Officer

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 13:48:05 -05'00'

10. Approvals

Signature:

Joe Urbanik Activing Director

Signature:

Theresa Ramos Competition Advocate

Signature:

Kristen M. Nowadly Assistant Regional Counsel