J - A Stryker STS-STSS PPSS-Services_Redacted.pdf

CMO Control Number: 2023-043 is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited:

Background: DRS-SSI is the Original Equipment Manufacturer (OEM) of the current Stryker FSV MEP (referred to as FSV Legacy MEP throughout this document). The FSV Legacy MEP is not merely a kit (or kits); it is an amalgamation of many components, kits, and subsystems that are comprehensively and precisely combined and integrated into and made part of the fire support mission operation of the vehicle system.

The Government does not possess the pertinent technical data, to include level III drawings, and software for the FSV Legacy MEP, which consists of the Inertial Navigation Unit, the Fire Support Sensor System, the Ruggedized Handheld Terminal Unit and the Next Gen Remote Display Unit, to enable competitive re-procurement of the STS and STSS services. The Government doesn’t possess the Interface Control Documents (ICDs) necessary to provide to another contractor to perform the STS & STSS services.

The Government is also currently transitioning from the FSV Legacy MEP to the FSV Next Generation Architecture (NGA) MEP. The FSV Legacy MEP will be fully transitioned to the FSV NGA MEP in approximately two years once the FSV NGA MEP development is complete. The FSV NGA MEP has been under development by DRS- SSI under contracts W56HZV-15-D-0082 and W56HZV-19-D-0006 to resolve obsolescence issues through a technology refresh of the Next Generation Architecture and improved boresight system to ensure a Fully Mission Capable system for precision, far-target netted sensor capability on the battlefield.

Although DRS-SSI does not own all the tech data related to the FSV Legacy MEP and NGA MEP, they have the relationships and Non-disclosure Agreements (NDAs) in place with various companies that own the technical data that allow them access to the data and software needed to perform the services. DRS-SSI has experienced personnel and technology needed to perform the services. DRS-SSI has the unique capabilities to provide immediate troubleshooting due to their extensive knowledge and experience with the system to support FSV A1 production and vehicles in the field. DRS-SSI has also invested in Electronic Assembly Facilities for repair, inspection and troubleshooting Line Replaceable Units (LRU’s), such as Power Distribution Units.

Duplication of Cost: If the Government were to award to a contractor other than the incumbent, the Government would incur a substantial duplication of cost, as further discussed below in Tables 2 and 3 and the subsequent paragraphs. The duplication of cost is comprised of a cost estimate for FSV Legacy MEP (Table 2) and a cost estimate for the Next Generation Architecture MEP (Table 3). As stated above, the FSV Legacy MEP is expected to be fully transitioned to the FSV NGA MEP in approximately two years.

For another contractor to be considered fully capable of providing the required STS, SSTS, and PPSS services for the FSV Legacy MEP and FSV NGA MEP at the same technical competency level as DRS-SSI, including development of technical data, it would require the Government to spend approximately $41.2M in duplicative costs that the Government has invested in the incumbent. These duplicative costs consist of an estimated $33.5M in Fiscal Year (FY) 23 for the FSV Legacy MEP and $7.6M in FY24, for the FSV NGA MEP, as shown in tables 2 and 3 below. These costs are not expected to be recovered through competitive acquisition procedures.

Table 2

Duplication of Cost Estimate for FSV Legacy MEP

Tasks Cost Reference

Reverse Engineering, Software $32.5M 5a.

Training – Technical Knowledge $971K 5b

Total: $33.5M

Table 3

Duplication of Cost Estimate for FSV NGA MEP

Tasks Cost Reference

Training- Technical Knowledge $3.6M 5c

Facility set up (SIL) $4M 5d

Total: $7.6M

5a. Reverse Engineering: The total cost of $32.5M to reverse engineer the FSV

Legacy MEP includes 228,760 estimated hours to design, develop, create the technical data and computer software, integrate, and test at a labor rate of $142.46 per hour.

This hourly rate is used in the current FSV STS/SSTS contract. The cost includes 35 people over 38 months to reverse engineer the FSV Legacy MEP to be able to compete. The costs include $6M for material, which is based on the material needed for a similar vehicle system for the M1200 AK Targeting Under Armor estimate to include all Non-Recurring Engineering (NRE) costs of design, integration, Human Factor Engineering (HFE), logistics products and prototype testing.

5b. Training Technical Knowledge (FSV Legacy MEP): The costs of $971K includes six contractor personnel to dedicate 6,816 hours, at a rate of $142.46, to become proficient on the FSV Legacy MEP. The hourly rate is used in the current FSV STS/SSTS contract. It would take 9 months to train a Field Service Representative (FSR) and an additional 4 months to train a Senior Level Project Engineer to become proficient. A Senior level engineer would then spend an additional 9 months to train Project Engineers. The FSV Legacy MEP would be relevant for approximately two years until it is transitioned to the FSV NGA MEP

5c. Training Technical Knowledge (FSV NGA MEP): The cost of $6M includes 25,175 hours at a rate of $142.46 per hour. The hourly rate is the current FSV STS/SSTS contract rate. Of these hours 4,988 were for a Subject Matter Expert (SME) educator would need to master the FSV NGA MEP setup, operation, and troubleshooting. This SME would be self-taught and be required to train the MEP trainer. Next, 7,568 labor hours were estimated for Field Service Representatives (FSRs), who are required to learn the system to be able to troubleshoot and repair the MEP and become MEP SMEs. Next would be Project Engineer labor which would require 12,619 hours to become proficient in MEP theory and operation, system interconnections, system usage, and interfaces.

5d. Facility Set up - Systems Integration Lab (SIL): The total estimated cost for a new contractor to set up their SIL is $4M. This cost consists of a total of the remaining 28,512 labor hours, over a 24-month period, would be used for Software Engineers to set up a SIL. The engineers would need to set up the build environment, add appropriate emulators, and Line Replaceable Units (LRUs), cabling and networks to include Ethernet, serial data and 1553 data buses. The estimated labor rate is $142.46.

The estimated hours are based on historical SIL set-up costs from the M1200 Armored Knight SIL.

Unacceptable Delay: DRS is the only known source that owns or has access to the requisite technical data and software and possess the unique engineering expertise related to the FSV Legacy MEP or FSV NGA MEP. In order to avoid a break in coverage for the STS and STSS services, the Army requires a contract be in place by 13 December 2023. Table 4 below, and the subsequent paragraphs, detail the estimated length of time that it would take for a new vendor to begin performance of the FSV Legacy and NGA MEP STS/SSTS/PPSS services.

Table 4

Unacceptable Delay

Tasks Time

Reverse Engineering processes (5.e) 38 months

Source Selection Evaluation Board & Contract Award (5.f) 6 months

Facility Set-up and Training-Technical Knowledge (5.g) 24 months

Total: 68 months

5e. Reverse Engineering processes: It would take approximately 38 months for either the USG or another contractor to reverse engineer the FSV Legacy MEP technical data and software to be able to compete the STS/STSS/Services. The 38-month estimate includes all Non-recurring-engineering (NRE) for the design, Integration, prototype testing. This estimate is based upon previous reverse engineering estimates for similar efforts and technologies.

5f. Source Selection Evaluation Board (SSEB): It would take approximately six months for SSEB and award of a competitive contract based on ACC-DTA procurement lead time estimates for acquisitions similar in dollar value and complexity.

5g. Facility Set-up and Training- Technical Knowledge: It would take approximately 24 months for a contractor to set up a facility System Integration Lab (SIL) which is required for a contractor to successfully perform the services. This estimate is based on the historical timeline for the M1200 Knight SIL. This 24 month estimate also includes the time associated with a new vendor to become educated and proficient with both the FSV Legacy and NGA MEP.

Based on the estimated timeline above, it would take a total of 68 months before STS/STSS/PPSS services could begin if the services were awarded competitively. An award to DRS SSI for the FSV MEP STS and STSS services is necessary because an award to any other source would result in an unacceptable delay to the Government.

As stated above, a follow-on contract for STS/SSTS and PPSS services must be awarded by 13 December 2023 to prevent a break in service. If services are not in place on time it would affect Army’s Readiness if deployment were needed. Also, a break in service would disrupt the on-site support to soldiers and delays with production would occur as DRS provides troubleshooting for FSV production vehicles.

6. Efforts to Obtain Competition:

a. Effective Competition: The Government intends to solicit only DRS-SSI for STS/SSTS/PPSS services for the common FSV Legacy and NGA MEP in the Stryker FSVs based on the rationale provided in paragraph 5 above. This action will be synopsized in accordance with FAR 5.201.

b. Subcontracting Competition: To ensure the contractor competitively awards subcontracts to the maximum extent possible, the contract will contain FAR Clauses 52.244-5, “Competition in Subcontracting,” and 52.244-2, “Subcontracts.” DRS will also be required to submit a subcontracting plan for review and approval.

7. Actions to Increase Competition: While there are no known future requirements at this time, the Government will continue to conduct market research to identify capable vendors for these services in the future. The Government has established CDRL’s for specific deliverables for software, drawings, and models and will continue to look for opportunities for competition in the future.

8. Market Research: Market research was performed in accordance with FAR 10.002(b)(2)(iii) by posting a formal Sources Sought Notice for STS/ SSTS & PPSS Services for the FSV MEP. The Sources Sought was posted on SAM.gov for a period of 34 days, from 12 May 2022 through 15 June 2022.Two responses were submitted in response to the Sources Sought: one response from DRS Sustainment Systems, Inc.

and the other from

The responses were evaluated by PMO SBCT which included SMEs from Engineering, Program Management, and Contracting. DRS-SSI’s response submittal demonstrated capability to perform for each of the potential requirements. DRS-SSI is the incumbent contractor that is currently performing all of the required services. Based on DRS-SSI’s current successful performance, as well as its thorough response to the Sources

Sought, the Government has determined that it possesses the capability and readiness to perform this effort.

Based on the response, is an engineering and technology firm that provides technical services to Department of Defense (DoD) customers in areas of systems engineering, technology integration, software development, combat and tactical vehicle system design & development, integrated product support and life cycle sustainment planning. In the sources sought notice, when, asked what information would be needed to compete this requirement replied it would require the Interface Control Documents (ICDs) for the common Fire Support MEP, as well as any system/subsystem specification and technical data package that exist. The Government doesn’t have possession of the ICDs necessary to provide to another contractor to perform the STS & SSTS services. The Government doesn’t have possession of the complete TDP and the software for the FSV Legacy MEP, Inertial Navigation Unit, the Fire Support Sensor System, the Ruggedized Handheld Terminal Unit and the Next Gen Remote Display Unit which would be required to compete the services. In addition, does not have experience with the FIRES Support Platform based on their response. They also don’t have experience with Fires Targeting software or hardware which is a specialized capability. lacks the subject matter expertise needed to perform the STS and STSS services. does not possess the capability and readiness to perform at least six of the core required services (Configuration Management, Quality Assurance, Engineering Support, Logistics Support, Program Management), which are critical to the requirement; therefore, was determined to be a nonviable source.

In April and August 2022, members from ACC-DTA and PMO SBCT attended Michigan

Defense Exposition (MDEX) and Ground Vehicle Systems Engineering and Technology

Symposium (GVSETS). Attendees viewed exhibits and attended presentations regarding upcoming requirements including the FSV MEP STS & STSS services.

Attendees were encouraged to submit interest related to upcoming requirements presented during the events; however, no interest has been received to date for the

FSV MEP STS & STSS services other than responses to the sources sought notice.

9. Interested Sources: No other sources other than those mentioned above in paragraph 8 of this justification have expressed interest in providing the Stryker FSV

MEPs STS/SSTS/PPSS requirements.

10. Other Factors:

A. Procurement History:

1. Contract: W56HZV-19-D-0006

2. Competitive Status: Sole Source

3. Authority Cited: 10 U.S.C. Section 2304 (c)(1)

4. The applicable paragraph 7 of the J&A stated “There are no known future requirements at this time. Should additional requirements be identified, the Government will conduct market research accordingly.”

5. N/A

6. N/A

7. Justification was prepared using Unacceptable Delay, no changes have occurred.

b. Other Facts: N/A

B. Procurement History:

1. Contract: W56HZV-15-D-0082

3. Authority Cited: 10 U.S.C. Section 2304 (c)(1)

4. The applicable paragraph 7 detailing actions to increase competition reflected that the Government was in the process of collecting

Technical Data under the then current contract, that the data would be collected to be used for provisioning and sustainment of the Armored Knight through spares, and that the ability to compete the M1200 Knight as a system was not anticipated to be a requirement in the foreseeable future.

5. N/A

6. N/A

7. Justification was prepared using Unacceptable Delay, no changes have occurred.

C. Procurement History:

1. Contract: W56HZV-09-C-0398

3. Authority Cited: 10 U.S.C. Section 2304(c)(1)

4. The applicable J&A paragraph of actions to increase competition reflected that it was not cost effective to have a new contractor to take on STS responsibility for the Armored Knight Vehicle System fleet. Because of the unique nature of the requirement, the Government took no further action to increase competition.

5. N/A

6. N/A

7. Justification was prepared using Unacceptable Delay, no changes have occurred

11. Technical 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.

Name: Paul Boak Date: 17 MAR 2023

Title: Deputy, Product Director Management Signature: //PB//

PM Stryker Brigade Combat Team

12 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.

Name: Preston Young Date: 17 MAR 2023

Title: Product Director Production & Signature: //PCY// Variant Management, PM Stryker Brigade Combat Team

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, material, Other Direct Costs, and other cost elements as requested by the Contracting Officer. Cost/Price Analysis and audit recommendations will be used to discern whether the costs proposed are current and justifiable. The final negotiated agreement will give full consideration to all contractual requirements, to support a determination of fair and reasonable prices for this action. Certified Cost or Pricing Data, which may be subjected to DCAA audit, will be required and will form the basis for negotiating a fair and reasonable price.

Name: Ashley L. Velazco Date: 15 Mar 2023

Title: Contracting Officer, Signature: //ALV// Stryker 30MM Production & STS

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Ashley L. Velazco Date: 15 Mar 2023

Title: Contracting Officer, Signature: //ALV// Stryker 30MM Production & STS