J_A 24010 RSV Conversions_Redacted.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO VIRGINIA 22134-5050

IN REPLY REFER TO:

Code: CT 2.5 J&A Number: 24,010

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Marine Corps Systems Command (MCSC) Program Manager, Medium and Heavy Tactical Vehicles (PM MHTV) Portfolio Manager, Logistics Combat Element Systems (PfM LCES) 2200 Lester Street Quantico, VA 22134

2. Description of the Action Being Approved

The proposed justification is to award a follow-on sole source Indefinite Delivery, Indefinite Quantity (IDIQ) contract to Oshkosh Defense, LLC, 2307 Oregon St. Oshkosh, WI 54902, to provide the United States Marine Corps (USMC) with additional Resupply Vehicles (RSV).

This follow-on contract will continue the effort to convert, test, and deliver existing Medium Tactical Vehicle Replacement (MTVR) Extra Long Wheelbase (XLWB) Cargo Armored vehicles that have been converted into an equal number of Condition Code “A” RSVs. This conversion of vehicles will support the activation of up to 14 Navy Marine Corps Expeditionary Ship Interdiction System (NMESIS) batteries to include other emerging long-range fire capabilities requirements.

3. Description of Supplies/Services

The Resupply System (RSS) consists of both Resupply Trailers (RSTs) and RSVs. The proposed contract action will provide the USMC with a maximum of and a minimum of RSVs. Existing MTVR XLWB Armored Cargo vehicles, identified as AMK27/AMK28/AMK27A1/AMK28A1, will be converted into an equal quantity of new or Condition Code “A” RSVs in the AMK37 or AMK37A1 configuration. This is a unique requirement in which one vehicle legacy variant is being converted into another variant. In addition, this effort will also provide technical documentation with detailed analysis of all differences between the old vehicle configuration and new vehicle configuration, maintenance and operator training, special tools, and test equipment to support the distribution of resupply vehicles.

The quantities identified below are from Capabilities Requirement Change, as directed by the Headquarters USMC Capabilities Directorate, and are estimated based on current information and may be adjusted to reflect other such quantities authorized and appropriated by Congress.

J&A Number: 24,010 inventory multiple parts from different companies that perform the same function as the current RSS. Commonality in the RSV design and configuration is vital in meeting cost, schedule, and performance requirements of this program, to include long-term configuration management and supportability of the RSS. Furthermore, Oshkosh Defense, LLC already has this capability and an active production line in place to execute the requirements.

The Government developed a cost estimate based on current contract actuals, adjusted for inflation, that indicates that a competitive award of a new contract to produce the RSVs would incur additional costs of for the reverse engineering of the vehicle alone. Additional funding would be needed for the combination of startup costs and reverse engineering of a government furnished chassis to re-create a design that exactly matches the form, fit, and function, which would not be recovered through competition. The Government’s time estimate for another vendor to reverse engineer, establish the manufacturing, material handling, quality control, supply chain processes, establish a production line, and test and assess manufacturing readiness is 21-to-24 months. A 24-month delay would prevent the Government from fielding the RSV capability for the activation of 14 NMESIS batteries by the required fielding timeline.

As a result, an award to any other source would add substantial risk to accomplishing the present RSV conversion effort within the desired schedule parameters and would lead to unacceptable delays in fulfilling Marine Corps requirements. Additionally, substantial duplication of development costs would occur if these efforts were competed due to the lack of a sufficient RSV Technical Data Package (TDP) required to support competition.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

PM MHTV conducted market research to determine if additional sources capable of satisfying the Government’s requirements exist. In accordance with FAR 5.201, Sources Sought Notice (SSN) M67854-23-I-5416 was publicized on the SAM.gov website on 1 June 2023 and closed 30 June 2023. Four capabilities documents were received in response to the SSN and the government performed a complete analysis. Limited and non-established sources of supply were an issue for all vendors and the results of the analysis found no vendors with direct experience converting MTVRs into RSVs. The Government possesses only Limited Rights in the needed RSV technical data and is unable to provide a sufficient TDP for full and open competition. All vendors would require the shipment of an RSV for reverse engineering of the RSV conversion process and components. This approach will neither meet the required project timeline nor is it cost effective for the Government. There is no guarantee that the configuration of a reverse engineered RSV would be 100% compatible with legacy RSVs. Fielding a different RSV variant would cause a mismatched fleet of RSVs and exacerbate supply chain issues.

Oshkosh Defense, LLC did not formally respond with a capability document. However, they provided PM MHTV with assertions of restrictions on technical data rights for the RSS.

J&A Number: 24,010

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition

For reasons set forth in paragraph five, PM MHTV has no plans to compete the MTVR conversion to RSVs. If another potential source emerges, PM MHTV will assess whether competition for future requirements is feasible. Any future actions will be reviewed by PM MHTV to offer competition to the greatest extent possible.

As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).