J-A HMEE SLEP_Director Review_Redacted_4.9.24.pdf

CMO Control: 2022‐023 expected SLEP cost. Therefore, since the duplication of cost for the SLEP effort are substantial, the Government does not expect to realize savings by pursuing competition. Based on the information provided above, JCB, Inc. is the only qualified source with the necessary engineering data and expertise capable of meeting HMEE SLEP program requirements in an economical manner without imposing substantial duplication of cost to the Government.

6 . Efforts to Obtain Competition:

a. Effective Competition: The Government does not plan to pursue competition for this action based on the rationale provided in paragraph five above. In accordance with FAR 5.201, the Government will publish a synopsis for the proposed contract action to www.SAM.gov at least 15 days prior to issuance of the solicitation and any resulting proposals will be considered.

b. Subcontracting Competition: In accordance with FAR 19.702 (a)(1), a subcontracting plan will be required for this action. As such, FAR clauses 52.219-9, Small Business Subcontracting Plan; 52.219-16, Liquidated Damages – Subcontracting Plan; and Section L language, Submission of a Subcontracting Plan; will be included in solicitation. The proposed subcontracting plan will be reviewed and incorporated by reference into the contract.

7 . Actions to Increase Competition: The Government does not plan to seek additional competition for this effort. As detailed in section 5 above, the costs to create a competitive SLEP program would result in substantial duplication of cost which the Government does not expect to recover through a competitive procurement. The Government will continue to survey the marketplace and will review its acquisition strategy should additional requirements or additional sources be identified.

8. Market Research: Pursuant to FAR 10.002(b), ACC-DTA posted a Sources Sought Questionnaire to SAM.gov on 06 December 2021, which closed on 06 January 2022, to investigate the ability of existing contractors to support the HMEE-IV SLEP effort. Only one contractor responded to the sources sought questionnaire, the OEM, JCB, Inc. In the firm’s response, JCB, Inc. included its experience with specific capabilities such as structural welding, integrated armor, safety, quality, and several other capabilities. JCB, Inc. has not performed a SLEP for the Government but the firm has demonstrated its experience with the HMEE vehicles by purchasing HMEE-I vehicles from the Government to undergo a refurbishment pilot effort. In addition, JCB, Inc. mentioned the SLEP systems would use the same assembly line as the new HMEE production systems. The target SLEP turn-around time would be days from HMEE arrival to shipping the completed system.

9. Interested Sources: To date, no other sources have expressed interest in performing this effort. Only JCB, Inc. the OEM has provided extensive information on its technical capabilities and engineering knowledge regarding the HMEE IV vehicles proposed for this SLEP effort.

10. Other Facts:

a. Procurement History: The Government has not procured the HMEE SLEP services before, but has procured HMEE vehicles via multiple contracts as follows:

(1) Contract Numbers and Dates:

Contract W56HZV-05-D-0414 was awarded on 23 September 2005.

Contract W56HZV-08-D-0028 was awarded on 03 July 2008.

Contract W56HZV-14-D-0066 was awarded on 30 April 2014 and was extended twice, once on 19 September 2017 and again on 24 September 2018.

Contract W56HZV-20-D-0084 was awarded on 26 June 2020.

(2) Competitive Status: Contract W56HZV-05-D-0414 was awarded as the result of a limited competition based on an assessment of demonstration testing under an initial Research & Development (R&D) effort established under open competition.

Contracts W56HZV-08-D-0028, W56HZV-14-D-0066 and W56HZV-20-D-0084 were awarded on a sole-source basis to JCB, Inc. of Pooler, GA.

(3) Authority previously cited if less than full and open competition was used: FAR

6.302-1, “Only One Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements” was the authority used in all previous J&As.

(4) Summary of Paragraph 7 of the previous J&A for contract W56HZV-20-D-0084:

A competitive action is only possible if the Government procures the HMEE-I TDP from JCB or solicits sources of an alternate system to meet the performance specifications under ATPD 2301. However, the Government does not plan to pursue either of those actions for this procurement because JCB will not sell the TDP, and qualification of an alternate system would incur unacceptable delays in meeting requirements for the HMEE-I program. The Government intends to procure the remaining quantities of the Army AAO and the emerging requirements with the proposed long-term follow-on contract with JCB

(5) Explanation of the changed circumstances causing this action to now limit the sources: Only the initial R&D effort was full and open competition with a down-select for production. The remaining prior awards for the HMEE-I program were sole source to JCB Inc.

(6) Unusual Patterns: ACC-WRN extended Contract W56HZV-14-D-0066 twice due to increases in the AAO. The extended ordering period for W56HZV-14-D-0066 expired on 28 April 2019, therefore the AAO could not be fulfilled. The award of contract W56HZV-20-D-0084 was issued to satisfy the AAO.

(7) The extension of Contract W56HZV-14-D-0066 was sole source to JCB Inc. in accordance with FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302-1(a)(2)(ii) states, “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in – (A) Substantial duplication of cost to the Government that is not expected to be recovered though competition, or (B) Unacceptable delays in fulfilling agency’s requirements.”

(8) Award of Contract W56HZV-20-D-0084 was sole source to JCB Inc. in accordance with FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302-1(a)(2)(ii), which states, “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major component thereof, when it is likely that award to any other source would result in – (B) Unacceptable delays in fulfilling the agency’s requirements;” and, (iii) “For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in-- (B) Unacceptable delays in fulfilling the agency’s requirements.”

b. Other Facts: None.

11/12. Technical and Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signature: //signed// 24MAR2022 COL Shane M. Sullivan Project Manager, Force Projection

Date:

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The contractor’s proposal will be reviewed by Government requirements personnel who will address the appropriateness of the proposed labor hours and labor categories, materiel, other direct costs, and other cost elements as requested by the Contracting Officer. A Cost/Price analysis will be used to discern whether the costs proposed are current and justifiable. I will request field pricing audit assistance from the cognizant Defense Contract Audit Agency office local to JCB. The final negotiated agreement will give full consideration to all contractual requirements, including the delivery schedule, to support a determination of fair and reasonable prices for this action. The contractor will be required to submit Certified Cost and Pricing Data, which will form the basis for negotiating a fair and reasonable price. I hereby determine that the final negotiated price to the Government for this contract action will be fair and reasonable in accordance with FAR 15.403.

Signature: //SCS// Shane C. Strehler Procuring Contracting Officer

Date: 24 MAR 2022

14. Contracting Officer Certification:

I certify the facts and representations under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

Signature: //SCS// Shane C. Strehler Procuring Contracting Officer

Date: 24 MAR 2022