JA (AMPV FRPI) 13 Jan 25_Redacted.pdf

CMO Control Number: 2024-83

CLASS JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Armored Multi-Purpose Vehicle (AMPV) Full-Rate Production (FRP(I)) Quantity Increase - up to 703 Vehicles

Authority: Title 10 United States Code (U.S.C.), 3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii) (A) and (B), “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements”

Amount: $2.95 Billion (B)

Prepared by:

Typed Name: DALE L. PEMENT Phone: (571) 588-9394 Title: Procurement Analyst Email: dale.l.pement.civ@army.mil

Contracting Officer:

Typed Name: JILL T. WAGNER Phone: (571) 588-9275 Email: jill.t.wagner.civ@army.mil

Technical Representative:

Typed Name: DANIEL O. RAMOS Phone: (586) 282-0968

COL, AR

Title: Project Manager Mounted Armored Vehicles

Email: daniel.o.ramos4.@army.mil

Requirements Representative:

Typed Name: DANIEL O. RAMOS Phone: (586) 282-0968

COL, AR

Title: Project Manager Mounted Armored Vehicles

Email: daniel.o.ramos4.mil@army.mil

DEPARTMENT OF THE ARMY

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command–Detroit Arsenal (ACC-DTA) is the responsible contracting activity for this action.

2. Description of Action: This class justification seeks approval to award on an Other Than Full and Open Competition basis with BAE Systems Land & Armaments, LP (BAE) in support of the AMPV Family of Vehicles (FOV) full rate production (FRP) phase, for the class of requirements listed below.

a. FRP(I) Option year 3 increase. A modification to the existing Fixed Price Incentive AMPV FRP contract W56HZV-23-C-0024 will be issued to establish pricing for up to an additional 103 AMPV vehicles and associated kits. This effort may be executed in one modification or be modified as necessary to add pricing as it is negotiated. The 103 vehicles and kits described in this paragraph are over-and-above the currently approved quantities for Option Year 3. The acquisition will be funded utilizing Weapons and Tracked Combat Vehicle (WTCV) funding. The total anticipated amount for this contract action is

b. FRP(I) Option years 4-5. A modification to the existing Fixed Price Incentive AMPV FRP contract W56HZV-23-C-0024 will be issued to establish pricing for up to 600 AMPV vehicles and associated kits. This effort may be executed in one modification for both years or be modified as necessary to add pricing as it is negotiated. The acquisition will be funded utilizing WTCV funding. The total anticipated amount for this contract action is

3. Description of Supplies/Services: The AMPV is designated to support the Armored Brigade Combat Team by replacing the M113 to eliminate or mitigate capability gaps in protection levels and interoperability. The AMPV has five platform variants: General Purpose, Mortar Carrier, Mission Command, Medical Evacuation, and Medical Treatment. The contract actions covered by this class justification will procure up to 703 additional vehicles and associated kits under the existing FRP(I) contract. All associated kits for FRP(I) will be structured as priced contract options, and kits must be available or configurable for use on each of the five AMPV platform variants. The kit configurations consist of Cold Start Kit, Supplemental Air Transport Kit, Reactive Armor Kit (High Back), and Reactive Armor Kit (Low Back).

The total estimated value of the above actions is $2.95B as provided in the table below.

The source data for the estimate below is the AMPV Independent Government Cost Estimate (IGCE) dated 07 October 2024:

until 2QFY25 after completion of LRIP vehicle deliveries; also, the Government does not have data rights sufficient for competitive reprocurement for all the data needed, as described in section 5.c, above.

e. Table: Duplication of Cost and Unacceptable Delay Factors

AMPV

Task Length of Time

Cost ($M) Ref.

Design Parameters, Technical Data and Computer Software, and Logistics Data and Documentation for Vehicle Systems

$390 5.e (i)

Build Test Vehicles (*Concurrent with Design) * $148 5.e (ii) Vehicle Performance Testing (*Concurrent with Design) $59 5.e (iii) Source Selection -- 5.e (iv) Total 66 Months $597 5.e (v)

Duplication of Cost and Unacceptable Delay, Rationale:

i) Design Parameters, Technical Data and Computer Software, and

Logistics Data and Documentation for Vehicle Systems: Per the above, the additional time of and the duplication of cost of $390M can be attributed to the need to redesign, qualify, and integrate components for which the Government does not have data rights necessary for competitive reprocurement of the technical data and computer software. To accomplish this, another contractor would need to develop complete design parameters for components and integrate into a full system to meet requirements. BAE has the following documented: design parameters, Computer-Aided Design (CAD) models and performance models for the entire vehicle, and each Line Replacement Unit (LRU) interface. The development and delivery of technical drawings and logistics data required to field new systems are also reflected in the table above. These estimates include reverse engineering of the vehicle and LRU and the development of design criteria, CAD models, and performance models.

ii) Build Test Vehicles: A new contractor would be required to build and test prototype vehicles. The estimated time of , running concurrent with design, and cost of $148M required to build and test vehicle systems, including the development of manufacturing and production processes, validation of technical data, and qualification of components, are reflected in the table above. These estimates include time and costs to validate the technical data is complete and dimensionally correct against vehicles produced, and that all models and manufacturing processes are sufficient.

The development of manufacturing and production processes involves acquisition or development of tooling and includes qualification of vehicle expansion funding, the Army has recently positioned itself to now produce AMPVs at economies of scale but can only do this through its present incumbent supplier, BAE. Nearly all major non-recurring costs have been underwritten by the Government already with this supplier during the preceding program phases.

No other source can reasonably produce AMPVs at the full production rate contemplated by this action.

6. Efforts to Obtain Competition:

a. Effective competition: For the reasons cited in Section 5 above, the Government is not pursuing competition for the AMPV FRP(I) contract actions. All notices required by FAR 5.201 shall be published, as appropriate, and any bids or proposals received for any of the contract actions will be considered.

b. Subcontracting competition: The solicitations and resulting contracts already do, or will include, the required FAR and Defense Federal Acquisition Regulation Supplement subcontracting clauses. BAE will also be required to submit new or revised individual subcontracting plans for review and approval for each effort.

7. Actions to Increase Competition: The Government will continue to conduct market research to determine if there is any change in industry interest and capability in connection with AMPV FRP. This will be used to assess whether competition could be suitable in the FRP(II) timeframe at the prime contract level. The Government will also continue efforts to pursue a Specifically Negotiated License with BAE with respect to obtaining rights sufficient to enhance competition.

8. Market Research: Market research was performed pursuant to FAR 10.002(b)(2)(i) and (ii). A market survey was issued on 05 April 2024, (SAM.gov) in the form of a Sources Sought / Market Survey of Interest Notice to determine whether sources other than BAE Systems are capable of manufacturing the AMPV FOV; the survey included 33 detailed questions. The market survey was posted for four weeks and closed on 03 May 2024. The objective was to identify and assess the capabilities and readiness of any and all qualified contractors, with regards to producing AMPVs.

BAE was the only firm to respond (03 May 2024) to AMPV’s posted Sources Sought Notice, and they responded fully to all 33 of the Market Survey Questionnaire Topics.

BAE’s comprehensive response was reviewed by Product Manager (PdM) AMPV Subject Matter Experts, with the following conclusion: BAE is the only source capable of meeting the United States Government (USG) requirements. No other firms responded to the Market Survey.

Evaluation Results:

Vendor Business Size

Location Capability / Assessment

Highly capable of meeting contract requirements. BAE, as the OEM for the

BAE Systems Large Business

Sterling Heights, MI (Program)

York, PA (Primary Manufacturing Facility)

AMPV, Bradley Fighting Vehicle System FOV, MLRS Carrier, M113 FOV, and all derivatives, is the incumbent contractor for the AMPV EMD/LRIP W56HZV-15-C-A001 contract, and the AMPV FRP(I) W56HZV- 23-C-0024 contract. BAE has thus already established the specific AMPV production and management capability, and extensive supply chain, which enable BAE to meet all AMPV FRP requirements with immediate start, and no loss of learning.

9. Interested Sources: To date, there have been no other interested sources other than BAE’s full response to the market survey as noted in section 8. Only BAE was determined to be capable of providing the technical services and production capability required by the Government for the AMPV system prime contractor.

10. Other Facts:

a. Procurement history:

1. Contract W56HZV-23-C-0024 was awarded to BAE Systems Land & Armaments

L.P. (Commercial and Government Entity (CAGE): 06085) March 2023; total contract value: $1.6B (FRP Years 1 & 2). Contract W56HZV-15-C-A001 was awarded to BAE Systems Land & Armaments L.P. (CAGE: 7B726) December 2014; total contract value: $1.995B (EMD and LRIP combined for AMPV) (still active)

2. W56HZV-15-C-A001 was awarded using full and open competition. W56HZV-23- C-0024 was awarded using other than full and open competition.

3. W56HZV-23-C-0024 was awarded under the authority of FAR 6.302-1(a)(2)(ii)(A) and (B).

4. Paragraph 7 of the previous J&A for W56HZV-23-C-0024 (signed 04 February 2020) “The Government will conduct market research to determine if there is industry interest and capability to compete the next production contract. The Government will also 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 subsystems. Once testing has been substantially completed and the design is set, a business case analysis, including review of data rights and deliverables, will be conducted to determine which subsystems are able to be competed. Also, this business case analysis will review which parts are able to be manufactured via advanced/additive manufacturing in order to address potential readiness issues.”

Toward those objectives, since 2020 the AMPV program office has initiated the