J A_0313-16__PFRMS_LSJ_TO_0002_27_Sep_16_Redacted.pdf

W31P4Q-09-A-0019/0002

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FAR 8.405-6 Limited Sources Justification Under the General Services Administration

Federal Supply Schedule Program

1. Contracting Activity: Department of the Army, Army Contracting Command – Redstone Arsenal, CCAM-ESB, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The PFRMS Project Office requests approval to award a contract modification to task order W31P4Q-09-A-0019/0002 on a firm-fixed price, level of effort with System Studies & Simulation (S3), Inc., 615 Discovery Drive, Huntsville, AL 35806 CAGE Code 0WYZ8, under Expedited Professional Engineering Support Services (EXPRESS) Program Blanket Purchase Agreement (BPA) W31P4Q-09-A-0019 Task Order 0002. Projected award is September 2016. The funds used on this action will be Army Procurement, Research Development Test and Evaluation (RDT&E), and Foreign Military Sales (FMS).

The original task Order W31P4Q-09-A-0019/0002 was competed and awarded on 30 September 2010 for a period of five years. The awarded ceiling amount was

. The total obligated amount to date on this task order is

. This modification would increase the ceiling by and extend the period of performance (POP) from 1 October 2016 to 31 March 2017.

The modification of W31P4Q-09-A-0019 Task Order 0002, technical support to the PFRMS Project Office will allow sufficient time for uninterrupted technical support to the PFRMS Project Office until the follow-on competition is completed. The Government will execute this action against Federal Supply Schedule GS-00F-0037P.

3. Description of Supplies/Services: Precision Fires Rocket and Missile Systems Project Office (PFRMS) has been fielding launchers and weapons for over 35 years, and has performed Navigation Satellite Timing and Ranging (NAVSTAR) Global Positioning System (GPS) aided weapons systems for over 20 years. Experienced technical support is required to develop, field and upgrade these weapon systems. The development, preparation and coordination of plans for systems improvements to address Insensitive Munitions (IM) requirements, safety and hazard classification, propulsion systems, fuzes, alternative warheads and payloads, launch pod redesign, launcher improvements and technology initiatives, and other activities necessitate this engineering support. The technical support is required to address all lifecycles with expertise in the functional areas of electrical/electronics engineering, systems engineering, mechanical engineering, configuration and data management, quality engineering, production engineering, GPS technology and policy, software, and foreign military sales (FMS) for the field artillery launchers (M270A1, M270A1 variants, High Mobility Artillery Rocket System (HIMARS) and HIMARS variants), rockets and missiles Army Tactical Missile System (ATACMS) and ATACMS variants, Guided Multiple Launch Rocket System (GMLRS) and GMLRS variants, and Long Range Precision Fires- type munitions.

The contractor shall provide technical services in electrical/electronics engineering, systems engineering, guidance, NAVSTAR GPS, software, safety, quality engineering, IM, FMS, mechanical engineering, technical data management, manufacturing and

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production support, test and evaluation, propulsion, simulation, warhead and fuze support throughout the PFRMS Project Office.

The total estimated cost of the proposed modification during the POP from 1 October 2016 through 31 March 2017 is (Labor: ; Travel:

). This modification will result in the addition of approximately labor hours. The FMS funds used for this requirement are not source directed. The FMS funds used for this requirement are FMS admin and case funded dollars supporting Bahrain (case BA-UJK-001), Japan, (cases JA-XIJ-001 and JA-XJA-004), Jordan (case JO-WYB-117), South Korea (case KS-YUH-007), and United Arab Emirates (case AE- ZUD-079). The FMS funded portion of this requirement is labor hours and total dollars.

The increase in ceiling and POP extension will provide continuity of support for these critical technical services until a competitive, logical follow-on contract can be solicited and awarded.

4. Authority Cited: Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.), and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(C). 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 applicable Federal Supply Schedule ordering procedures. The original order of BPA was not previously issued under a sole-source or limited-sources procedures.

5. Reason for Authority Cited: The proposed acquisition requires the use of the above cited authority FAR 8.405-6(a)(1)(i)(C) based on the following:

This limited justification regarding S3, Inc., 615 Discovery Drive, Huntsville, AL 35806 CAGE Code 0WYZ8, supports the authority cited above in that the ceiling increase and POP extension is a logical follow-on to an existing Federal Supply Schedule (FSS) order which was placed in accordance with the applicable FSS ordering procedures. Further, the original task order W31P4Q-09-A-0019/0002 was competitively awarded on 30 September 2010. This is the third limited source justification using FAR 8.405- 6(a)(1)(i)(C).

This acquisition is in the interest of economy and efficiency because the increase in ceiling and POP extension is necessary to prevent duplicate costs required to perform the technical services. In addition to the administrative cost associated with transferring the services to another contractor, it is anticipated that it would take approximately four to six months to train and familiarize them with processes and policies associated with performing the required tasks, and it is therefore not economical or efficient to award this action as it is only required for a short amount of time, until the new contract is awarded in the second quarter of FY17. Historically, transition costs (staffing, training, time lost due to learning curve) are estimated at 10% of the contract value. In this case, the transition costs are likely to be in excess of 20% of the increased value ( ) as resourcing a contract for short term, many additional costs beyond those associated with

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labor would need to be factored in (i.e. TDY, security clearances, temporary office set up costs, etc.) In addition, a new contractor would need to establish temporary infrastructure which would be a cost in addition to the resource transition cost.

S3, Inc. is the only source that can provide the effort in a short period of time until the new competitive AMCOM EXPRESS task order is awarded. No other contractor can gain the necessary expertise during this short time frame to meet the government’s requirement to begin work immediately and continue support without there being a severe learning curve, which could result in a significant break in customer support during a transition. Allowing the current contractor to continue performance under the existing contract for six additional months greatly reduces the lead-time to obtain continuing technical support for the period of performance. Only the current contractor has the capability to provide the required services in the required timeframe.

S3, Inc. currently has a staff of technical personnel familiar with the mission of PFRMS and its customers. Therefore, S3 is uniquely qualified to continue to provide engineering and technical support to PFRMS due to its established and proven technical team with extensive experience supporting PFRMS requirements, and its understanding of government regulations, policies, and systems engineering that govern the project office mission. S3 can continue to provide invaluable munitions, launcher, and software engineering support; test, quality, and product assurance support; and configuration/data management, Foreign Military Sales, and program integration support.

As supported by the above stated facts, this ceiling increase and POP extension to W31P4Q-09-A-0019 Task Order 0002 is critical to satisfy the PFRMS Project Office needs and ongoing operations. PFRMS has been responsible for fielding launchers and weapons to the warfighter for over 35 years, and that responsibility continues today and into the future as warfighters use PFRMS equipment to accomplish Army defense objectives in theatre. Without the approval of this LSJ, PFRMS will suffer a significant decrease in service support, which will decrease its ability to field weapons and support the warfighter, potentially endangering the lives of those warfighters who rely on PFRMS operations.

The PFRMS has on ongoing requirement for these services from 1 October 2016 to 31 March 2017 for the technical, systems engineering and technical support for the PFRMS products. Disapproval of the LSJ would lead to insufficient manpower to assess and resolve real time technical issues for all of the PFRMS weapons system products. In addition, the PFRMS would not be able to provide expert recommendations and assessments and develop a path forward for implementing developmental, testing, production and fielding solutions for these launchers and munitions. This could result in unacceptable delays in providing system modifications and improvements to fielded units. Disapproval significantly increases the risk that hardware and software technical problems will not be identified, manufacturing process variability will occur, program milestone activities will be incomplete and program planning and coordination functions will be untimely or inadequately accomplished. It is critical that the Alternative warhead be fielded and have sufficient quantities to meet operational needs. It is also critical that effective munitions are available and acceptable to meet the unexploded ordnance (UXO) requirements imposed by the Department of Defense (DoD) Policy on Cluster

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Munitions and Unintended Harm to Civilians” dated 19 June 2008. This policy required that cluster munitions must produce not more than 1% unexploded ordnance (UXO) by 2019). Technical support to identify and address technical issues including command and control and effectiveness is imperative to meeting this requirement. Support is also needed to ensure the on time fielding of the M270A1 with IAC will provide further protection and safety for the crew. Technical support is needed to ensure issues are identified and resolved and timely development is conducted with a clear path to production.

(b) Alternatives: The use of only in-house personnel/expertise during the time it would take to compete the new contract action would result in decreased support to the PMO by approximately full time equivalents (FTE). This decrease would result in unacceptable delays in scheduling in critical areas of PFRMS operations. The alternative to suspend operations during this time would similarly result in unacceptable delays.

(c) S3 currently provides services to include approximately FTE on the current contract; POP ending 30 September 2016. The PFRMS Project Office will require an additional 6 months POP from 1 October 2016 to 31 March 2017 to ensure there is no break in service while the new contract is competed. S3 is the only source that can provide the effort in a short period of time until the new competitive AMCOM EXPRESS task order is awarded. No other contractor can gain the necessary expertise during this short time frame to meet the government’s requirement to begin work immediately and continue support without there being a severe learning curve, which could result in a significant break in customer support during a transition. Allowing the current contractor to continue performance under the existing contract for six additional months greatly reduces the lead-time to obtain continuing support for the period of performance from October 2016 through March 2017. Only the current contractor has the technical expertise and knowledge to meet the everyday requirements of this contract in the required timeframe in an efficient, economic and effective manner.

6. Efforts to Obtain Competition:

a. Effective Competition: The original contract was awarded utilizing full and open competition. This additional effort was published in the Competition Advocate’s Shopping List (CASL) on 7 June 2016 and revised on 12 September 2016. No contractors expressed an interest in the requirement and no additional sources are being sought because it would not be economical or efficient for this brief period of performance. S3, Inc. is the only source that can complete the effort within the required timeframe. This action is exempt from being synopsized IAW FAR 8.404(a).

b. Subcontracting Competition: Contract W31P4Q09A0019 Task Order 0002 includes the requirements of FAR 52.244-5, "Competition in Subcontracting" in the BPA. To ensure the contractor obtains competition in subcontracting, all applicable clauses required by FAR, DFARS, and AFARS will be applicable to this extension.

7. Actions to Increase Competition: There is acquisition data available for competitive acquisition, based on request for information results. The new contract is in the

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evaluation phase; the task order request for quotes were released competitively under the AMCOM Express Technical Domain to all current BPA holders on 25 July 2016 with an estimated contract award on or before 31 March 2017. Quotes were received 25 August 2016, an evaluation kick-off meeting is scheduled for 8 September 2016.

8. Market Research: Market Research has been performed in accordance with FAR

10.002. In June 2016, PFRMS acquisition analyst and the Chief of the PFRMS Engineering Missile Systems Division conducted market research using both program experience and personal knowledge and posting of the CASL. Other market research techniques used included a review of source lists for identical or similar items obtained from Government sources; on 31 March 2016 research was conducted for similar services on GSA’s Federal Supply Schedules. No other sources were identified that could meet the PFRMS Project Office requirement for technical services within the required timeframe. The PFRMS personnel have determined that S3, Inc. is the only vendor that can meet the PFRMS Project Office requirement during the interim period. This follow-on action was published in the AMCOM CASL on 7 June 2016, and revised 12 September 2016, and revised again on 12 September 2016. FAR Part 12 was used for the GSA contract, this task order is based on the GSA contract, so it utilizes FAR Part 8.

9. Interested Sources: This requirement will not be synopsized in accordance with the exception stated in FAR 8.404(a) which states "when establishing a BPA, or placing orders under Federal Supply Schedule contracts using the procedures of 8.405, ordering activities shall not seek competition outside of the Federal Supply Schedules or synopsize the requirement." As indicated in FAR 8.405-6(a)(2)(i) and (iii), a redacted version of the limited source justification will be posted within 14 days after executing this action. A copy of the posted notice will be placed in the contract file. To date, there have not been any other sources expressing an interest in writing. In the event any bids/proposals are received they will be considered.

10. Other Facts:

Procurement History.

Contract W31P4A-05-A-0028 task order 0003 was competitively awarded under AMCOM EXPRESS Technical Domain on 29 June 2005 to S3, Inc, 615 Discovery Drive, Huntsville, AL 35806. (CAGE Code: 0WYZ8). The task order is for 5 years, 29 June 2005 – 28 June 2010, NTE cost ceiling of for an estimated labor hours, The current contract, W31P4Q-09-A-0019 Task Order 0002 on, was competitively awarded under AMCOM EXPRESS Technical Domain on 30 September 2010. The task order is for 5 years, 30 September 2010 – 30 September 2015, NTE cost ceiling of for an estimated labor hours, and was awarded to S3, Inc., 615 Discovery Drive, Huntsville, AL 35806. (CAGE Code: 0WYZ8).

W31P4Q-09-A-0019/0002 was modified in September 2015 to extend the POP from 30 September 2015 through 31 March 2016 on modification 40. An increase in ceiling was not required as there was enough ceiling and hours available to cover the estimated amount of and labor hours for the six month POP extension. This

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extension was awarded on a non-competitive basis to S3, Inc., 615 Discovery Drive, Huntsville, AL 35806. (CAGE Code: 0WYZ8) under the authority permitting other than full and open competition - Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.), Title 40 U. S. C. 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C) and Title 10 U.S.C 2304(c)(1).

At the time of approval of this Limited Sources Justification and Approval Paragraph 7, Actions to Increase Competition, stated “During the extension, a competitive task order will be awarded. The re-compete of this contract is currently in progress, and an award is anticipated by 1 April 2016. It is not feasible to utilize another source for this extension since it is a follow-on effort for continuing tasks that are being performed by S3 today.”

However, those actions were not completed and the follow-on contract was delayed due to a new requirement for a Time and Materials (T&M) Determination and Findings (D&F).

The new requirement for a T&M D&F halted all new contract awards through the EXPRESS Technical domain from October 2015 until it was signed at the Principal Assistant Responsible for Contracting (PARC) level on 13 Jun 2016.

W31P4Q-09-A-0019/0002 was modified again in January 2016 to extend the POP from 1 April 2016 through 30 September 2016 on modification 45. An increase in ceiling was not required as there was enough ceiling and hours available to cover the estimated amount of and labor hours for the six month POP extension. This extension was awarded on a non-competitive basis to S3, Inc., 615 Discovery Drive, Huntsville, AL 35806. (CAGE Code: 0WYZ8) under the authority permitting other than full and open competition - Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.), Title 40 U. S. C. 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C) and Title 10 U.S.C 2304(c)(1).

At the time of approval of this Limited Sources Justification and Approval Paragraph 7, Actions to Increase Competition, stated “During the extension, a competitive task order will be awarded. The re-compete of this contract is currently in progress, and an award is anticipated by 30 Sep 2016. It is not feasible to utilize another source for this extension since it is a follow-on effort for continuing tasks that are being performed by S3 today.”

However, those actions were not completed and the follow-on contract was delayed due to the ongoing requirement for a T&M D&F. The new requirement for a T&M D&F halted all new contract awards through the EXPRESS Technical domain from October 2015 until it was signed at the PARC level on 13 Jun 2016. TORFQ was issued 25 July 2016 and quotes received 25 August 2016. Quotes are currently being evaluated by PFRMS evaluation team. Task order award anticipated no later than 31 March 2017.

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Approval

Based on the foregoing justification, I hereby approve the ceiling increase and period of performance extension for Technical and Engineering support for the Precision Fire Rocket and Missile Systems Project Office. The services to be provided consist of technical and engineering support required to develop, field and upgrade weapon systems. The technical support is required to address all lifecycles with expertise in the functional areas of electrical/electronics engineering, systems engineering, mechanical engineering, configuration and data management, quality engineering, and production engineering associated with PFRMS. This anticipated contract modification will be awarded to System Studies & Simulation, Inc., CAGE Code 0WYZ8, on an other than full and open competitive basis under Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et Seq.) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. This effort will increase the ceiling by and will extend the period of performance from 1 October 2016 to 31 March 2017 and will result in the addition of approximately labor hours to W31P4Q-09-A-0019 task order 0002.

Date: ____________ Signature Special Advocate for Competition:

Shelley R. Muhammad

21 Sep 2016