JA 20808_JLTV OSHKOSH FSR Support Redacted Final.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO VIRGINIA 22134-5010

F IN REPLY REFER TO:

CT 2.5

J&A No. 20808

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Marine Corps Systems Command (MARCORSYSCOM) Program Manager, Light Tactical Vehicles 2200 Lester Street Quantico, VA 22134

2. Description of the Action Being Approved.

The use of other than full and open competition to procure shipboard Joint Light Tactical Vehicle (JLTV) Field Service Representative (FSR) services in support of deployed 15th and 11th Marine Expeditionary Units (MEU) JLTV Family of Vehicles (FoV). The proposed action is for a sole-source, hybrid firm-fixed-price (FFP) - cost-plus-fixed-fee (CPFF) contract with Oshkosh Defense, LLC (Oshkosh), 2307 Oregon St, Oshkosh, WI 54902. The proposed contract action has an anticipated period of performance of one 12-month base year and two 12-month options.

3. Description of Supplies/Services.

On 8 July 2020, Naval message received from I Marine Expeditionary Force (MEF) requested original equipment manufacturer (OEM) technical expertise during the 15th and 11th MEU deployments to assist MEU mechanics and operators with troubleshooting, diagnostics, supply support, training and maintenance associated with OEM level maintenance actions. Due to the worldwide COVID 19 pandemic, and mandatory travel restrictions FSR support is required to travel with the MEU during the entirety of the deployment to mitigate exposure of the virus to the fleet.

As a result, Program Manager, Light Tactical Vehicles (PM LTV) has a requirement to contract for shipboard and in-theater FSR support for the MEU’s JLTV FoV. The JLTV FSR services will consist of JLTV maintenance, JLTV maintenance training in a shipboard environment, JLTV maintenance advisory expertise, diagnostics and troubleshooting, resolution of mechanical issues as they occur prior to port arrival, during contingent operations, as well as providing supply support. The FSRs will facilitate Marine Corps maintenance of JLTV assets which are an essential component of a deployed fleet Marine force.

The estimated dollar value, if fully executed, for this procurement is not expected to exceed $4,214,435. The PM LTV estimate for each year, by appropriation, is summarized in table 1 below. The IGCE is based on current FSR costs associated with the W56HZV-15-C-0095 contract:

Table 1 – Funding

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B), only one responsible source and no other supplies or services will satisfy agency requirements, and award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Oshkosh Defense was awarded the U.S. Army Joint Program Office (JPO) JLTV Full Rate Production contract W56HZV-15-C-0095 on 23 September 2016. This contract was awarded using full and open competition procedures with a down select to three contractors. As a result Oshkosh was awarded the JLTV Low Rate Initial Production and the Full Rate Production contracts.

To date the USMC has spent an estimated $1.868B on JLTV FoV, and is budgeted for an additional $1.8B for FY21-25 with fielding continuing through FY30, based on the Navy Comptroller budget and planning controls.

Under the U.S. Army JPO JLTV contractW56HZV-15-C-0095, the Government has purchased the Technical Data Package (TDP) which includes the vehicle technical manuals for the JLTV FoV; and is currently waiting on the final acceptance of the TDP. Non–OEM FSRs must have access to the complete TDP for the JLTV FoV to provide the required services. At present the complete TDP is not finalized and will not be available for at least 18 months after award of a contracting action on the JPO contract where the Government is required to provide Oshkosh with the scope of updates to finalize the JLTV TDP. The updates to the TDP also include the conversion from Electronic Maintenance System Next Generation to the Interactive Authoring and Display System (IADS) and Interactive Electronic Technical Manual (IETM) due to software obsolesces. As an interim solution the USMC issues technical and modification instructions to supplement the initial TDP to address operational/maintenance changes requiring a different process, i.e. improved nitrogen suspension fill procedures. Until the TDP update takes place the OEM provides expertise over the shoulder trouble shooting and training to the fleet through the JPO JLTV contract W56HZV-15-C-0095. While the JPO JLTV contract provides for contractor maintenance support, it does not provide for shipboard FSRs.

An alternative contractor would need OEM training and specialized equipment from Oshkosh in order to maintain and repair the JLTV FoV as well as access to the complete final TDP. The time associated with this training is estimated to be 36 months which includes the time pending for the final TDP to be updated and accepted; and provides ample time to train non-OEM FSRs. These delays would not meet the initial 30 September 2020 deployment. Furthermore, as the TDP is not accepted at this time, and if Oshkosh was unwilling to provide the training and equipment to their competitors, the only way for an alternative contractor to gain access to the intricate design of the JLTV FoV would be to reverse engineer the JLTV vehicle, which would result in substantial costs not expected to be recovered through competition

This sole-source procurement will reduce risks regarding technical and schedule delays in meeting MEU’s mission requirements, allowing the Marine Corps to be able to maintain readiness and be prepared to execute Combatant Commander directed activities.

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

In accordance with FAR 5.201, the Government posted a Notice of Sources Sought on BETA.SAM on July 16, 2020, to assess industry’s capability to provide FSR support including maintenance, troubleshooting and repair of the JLTVs FoV. Only one response, from Oshkosh Defense LLC, was received. A market research assessment report on the sources sought response was provided to the Contracting Officer, resulting in a Market Research memorandum signed by PM LTV on 22 July 2020. The market research assessment report concluded that Oshkosh presented information which demonstrated an acceptable approach for meeting the requirements under the accelerated schedule.

A pre-solicitation notice of intent to award a sole source contract was posted on BETA.SAM on 22 July 2020. The Government received only one response to the pre-solicitation from 888844motor. The Government's subject matter experts reviewed 888844motor’s response and came to the following conclusion that this vendor only responded to the familiar NAICS Code and did not hold an OEM certification to maintain JLTV FoV, therefore making them a non-viable source.

7. Determination of Fair and Reasonable Cost.

Oshkosh will be required to submit certified cost and pricing data with their proposal in accordance with FAR 15.403-4. The Contracting will use cost and price analysis to ensure that the negotiated cost is fair and reasonable. The contractor’s cost proposal will be compared to the Independent Government Cost Estimate (IGCE), as well as available historical cost information for similar work. The Contracting Officer will ensure that Oshkosh provides sufficient information to support the accuracy and reliability of the cost proposal. The Contracting Officer will obtain cost analysis support from LTV program office technical personnel, the Defense Contract Management Agency, and the Defense Contract Audit Agency to evaluate the proposed direct and indirect costs. In addition, the Contracting Officer will, as appropriate, refer to published Government and Industry cost information to support the cost analysis.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, PM LTV has no plans to compete future contracts for the types of supplies/services covered by this document. However, if another potential source emerges, PM LTV will assess whether competition for future requirements is feasible. Any future actions will be reviewed by LCES to offer competition to the greatest extent possible.

APPROVED AUGUST 20, 2020