JA AMPV Fielding SSP _Redaction (1)_Redacted.pdf

CMO Control No: 2020-057

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER

THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command-Detroit Arsenal, Michigan (ACC-DTA) is the contracting activity for this procurement.

2. Description of Action: The Government intends to issue a Firm-Fixed-Price contract modification to contract W56HZV-15-C-A001 for the Armored Multi-Purpose

Vehicle (AMPV). This modification will procure a System Support Package (SSP) to support fielding of the AMPV, on a sole source basis from BAE Systems Land and

Armaments, L.P. (BAE). Army Weapons and Tracked Combat Vehicle funds will be used for this procurement.

3. Description of Supplies/Services: This action will procure a support package consisting of a defined set and quantity of spare parts necessary for initial training and fielding for approximately three brigades of AMPVs being produced under this contract. Refer to the table below. The SSP is comprised of three subsets of parts: 1) Authorized Stockage List (ASL), 2) Special Tools & Test Equipment (STTE), and 3) Spares Acquisition In Production (SAIP). This action also includes a priced option for a relatively small set of SAIP parts (less than 3% of the total estimated value) to be procured in FY21. The contractor shall deliver all spares, properly marked and packaged, in order to support AMPV fielding activities, with delivery of base quantities targeted for early Fiscal Year (FY) 2021.

CLIN & Category Total No. of Unique Parts, in Category

CLIN Qty. Total Est.

Value

0020 - SSP ASL 70 1 Lot $ 7,285K

0021 - SSP STTE 48 5 Lots $ 1,540K

0022 - SSP SAIP Base 88 1 Lot $ 3,075K

0023 - SSP SAIP Option 4 1 Lot $ 370K

The estimated value of this contract action is $12.3M.

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is 10 United States Code (U.S.C.) 2304(c)(1) as implemented in Federal Acquisition Regulation (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)(B) provides that “Only One Responsible Source and

No Other Supplies or Services Will Satisfy Agency Requirements,” and would likely result in unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited:

BAE is both the system developer and the Original Equipment Manufacturer (OEM) of the AMPV. BAE built and delivered 29 AMPV prototypes under this contract, and has begun Low Rate Initial Production (LRIP), with the first production vehicles deliverable in March 2020. As the AMPV system developer and OEM, BAE is managing the current AMPV production effort, and consequently has the AMPV supply chain already in place, including active purchase orders and subcontracts for parts to support vehicle production.

a. Background:

BAE possesses unique knowledge, experience, and technical data pertaining to the AMPV that is necessary for successful delivery of the SSP which is not available from any other source.

The contract also requires development and delivery of logistics products, including provisioning data and assignment of National Stock Numbers (NSNs), which should be complete by late FY2022. Technical data for competitive procurement is not currently available to the Government, however a Technical Data Package is due at the end of LRIP in FY2023. Provisioning data and technical data, which might allow for potential competition or procurement from an alternate contractor if it is determined the Government has sufficient data rights to do so, will not be delivered until after fielding is set to begin. Given that this data is already in development by BAE, it would not be possible for a third party to develop and deliver the necessary data more quickly in order to compete the current spares procurement and meet the Army fielding schedule. The SSP consists of AMPV system-specific spare parts required to support the Army’s fielding of the AMPV system. The package consists of 70 different ASL items, 48 different STTE items, and 88 different SAIP items—over 200 different items altogether. Until complete provisioning data is delivered, the Government cannot procure parts independently of the OEM. The lack of provisioning data and validated technical data with corresponding competition rights prevents the Government from being able to conduct a meaningful competition for these parts at this stage of the AMPV system lifecycle.

b. Unacceptable Delay:

BAE is the only source with the unique technical expertise required to manufacture and deliver AMPV Full Rate Production vehicles. Providing for competition for this contract action would result in an unacceptable delay to the agency, in terms of delay in fielding of the AMPV to the soldier. To create the conditions for competition of these spares would delay the program by at least three to four years. The rationale for unacceptable delay is discussed in further detail below.

Creating the conditions for spares competition at this lifecycle stage would require extended reverse engineering and parts qualification activities to occur now in order to

a. Effective Competition: For the reasons stated in section 5 above this procurement will be solicited on a sole source basis. The subject contract action will be synopsized in accordance with FAR 5.201 and any proposal received for this requirement will be considered.

b. Subcontracting Competition: BAE will be required to provide an updated

Subcontracting Plan, acceptable to the contracting officer, prior to award. The AMPV

LRIP contract already contains FAR clause 52.244-5, “Competition in Subcontracting”, which requires the contractor to compete subcontracting efforts to the maximum practicable extent.

7. Actions to Increase Competition: An AMPV TDP is currently under development but is not scheduled to be delivered until the end of LRIP (FY2023). The Government will monitor Government-funded development of new hardware and software as well as the associated data rights and deliverables, in order to enable potential competition of specific AMPV subsystems or components. Future spare parts procurement actions will be reviewed for competition suitability, including review of data deliverables and rights, on a case-by-case basis. NSN assignment will be complete in FY2022 which will allow for procurement of non-BAE parts from qualified manufacturers.

8. Market Research: This contract action covers a specific listing of spare parts for the AMPV. A Sources Sought notice was posted on beta.SAM.gov on 06 February

2020 to obtain a better understanding of the capabilities of industry as potential sources.

There were no respondents to the Sources Sought notice.

9. Interested Sources: To date, no other contractors have expressed an interest in this procurement.

10. Other Facts:

Procurement History: There is no history for separate procurement of a SSP. BAE is under contract to deliver two SSPs in support of test events under the current AMPV contract W56HZV-15-C-A001 via the exercise of option CLINs 1011 and 1012. The AMPV contract was awarded 23 December 2014 on a competitive basis to BAE. The current contract value is $1.8B.

11/12. Technical/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: William Cuneo Date: 24 MAR 2020 Title: Product Support Manager, PM MAV Signature: //s// 24 MAR 2020

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, based upon a cost analysis and comparison with an Independent Government Estimate. A cost and price analysis will be conducted by ACC-DTA procurement and pricing personnel to verify that the overall price offered is fair and reasonable. The contractor will be required to submit a certificate of current cost or pricing data.

Name: Suzanne Kay Doetsch Date: 24 March 2020 Title: Contracting Officer Signature: //skd//

14. Contracting Officer 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: Suzanne Kay Doetsch Date: 24 March 2020 Title: Contracting Officer Signature: //skd//