JA ATGM ECP MITAS CMO 2019-070 REDACTION_Redacted.pdf

CMO Control Number: 2019-070

DEPARTMENT OF ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command - Warren (ACC - WRN) is the contracting agency for this action.

2. Description of Action: This action will result in a new four-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity (IDIQ) contract with General Dynamics Land Systems (GDLS), Sterling Heights, Ml. The purpose of this acquisition is to obtain Modified Improved Target Acquisition System (MITAS) A-kits for the Stryker Anti - Tank

- Guided - Missile (ATGM) Double V Hull and Double V Hull A 1 fleet. The award will be on a sole-source basis and is projected for the 4th Quarter of Fiscal Year (FY) 2019. FY 2019 - 2023 Weapons & Tracked Combat Vehicles funds will be used.

3. Description of Supplies/Services: The MITAS A-kit is required by Project Management Office, Stryker Brigade Combat Team (PM - SBCT) to retrofit the ATGM

The MITAS A-kit includes the following hardware: upgraded Slip Ring Assembly, Vehicle Mounted Charger bracket guard, Gunner's Display bracket, Precision Far Target Locator Brush Guard bracket, Full Functioning Crew Station & Stowage relocation brackets, interconnect cable modifications, and modified electrical harnesses.

The MITAS A-kit is required to incorporate the MITAS upgraded components provided b Pro ram Mana ement Close Combat Wea ans S stems PM CCWS to include:

This procurement is only for the MITAS A-Kit; under a separate effort, the contractor will be required to incorporate the MITAS upgraded components provided by PM CCWS into the MITAS A-kit.

The proposed IDIQ contract will procure the MITAS A-kit part number LS1160893, with a guaranteed minimum quantity of 1 O each and the maximum contract quantity of 125 each. The kits must begin delivery by JAN 2021 because they must be staged and retrofitted, which takes two months, rior to fieldin and there is a 48 week lead time for Ion lead items within the kits.

Based on an Independent Government Cost Estimate, the total estimated maximum value for this action is $14.5M broken out as follows:

OPERATIONAL SECURITY (OPSEC)

OPSEC

Kit Name: Cost Per Kit: Kits Req: Extend Cost:

FY20 A-Kit MITAS, ATGM $88,111 50 $5,824,076 FY21 A-Kit MITAS, ATGM $88,111 40 $4,578,424 FY22 A-Kit MITAS, ATGM $88,111 25 $2,912,038 FY23 A-Kit MITAS, ATGM $88,111 10 $1,245,652

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) Section 2304(c)(1) as implemented by 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)(iii)(A) provides that 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 (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition

5. Reason for Authority Cited: The Government does not have access to the technical data for the MITAS A-kit. GDLS is the designer and configuration manager of the upgraded MITAS A-kit and the Stryker ATGM variant on which the A-kit will be installed. The A-kit components are unique to the ATGM variant and the Government does not have proper rights for Technical Data Packages (TDPs) sufficient for competiting the A-kit. Only GDLS possesses a complete TDP, the manufacturing processes, tools/test equipment, and technical drawings required for this procurement effort. Since GDLS holds the TDPs for the kit and the kit components, as well as the vehicle as a whole, they are the only source with the specific and unique knowledge to provide the required A-kit hardware. As explained below, the Government would not recover the duplication in costs necessary to compete this effort.

a. Duplication of Cost: The ATGM already has a MITAS system designed and integrated into the Stryker fleet. GDLS was the MITAS designer and integrator when the Stryker ATGM was first fielded in 2003. It would require an extensive reverse engineering effort associated with this procurement to obtain specifications and dimensions for proper manufacturing, since the Stryker TDP and its subcomponents are not available for purchase. In response to a request for information on 19 Sep 2018, GDLS declined to sell the technical data rights for all Stryker variants to the United States Government. Access to the TDP for the entire vehicle is required for the successful integration of a newly designed MITAS A-kit. This effort would cost another contractor, on average, approximately $5.98M to redraw, reverse engineer, test, and re-validate the A-kit. The Government is not expected to recoup these costs through competition. This is the only known requirement for the A-kit described above so the opportunity to recoup these costs does not exist at this time. This estimate is based on PM-SBCT engineering knowledge of the kits and takes into account historical data on similar design activities.

This $5.98M estimate is further broken down as follows:

1. Based on Government engineering knowledge of these kits and historical data of similar design activities, an analysis determined that typical vehicle improvement cases cost the Government approximately 19,600 labor hours each (Systems Technical Support contract W56HZV-16-D-0037, Delivery Order 0013, Modification 19) at an estimated rate of $151.00 per hour ($2.96M).

2. Approximately $820,000 would be needed to procure material, tooling set-up and machining to build prototypes and conduct contractor qualification testing, for a new contractor to establish facilities, develop fixtures, and obtain planning and system technical support.

3. An estimated $500,000 is required to complete associated logistics products.

This includes updating content, contractor validation, United States Government (USG) verification and LOGSA authentication of the ATGM technical manuals and installation instructions for the MITAS A-kit.

4. Required testing includes FAT and systems function testing of vehicle weaponry, which includes scheduling. The average cost of a live fire test on a test range is $1.7M.

6. Efforts to Obtain Competition:

a. Effective Competition: The Government intends to solicit only GDLS for this acquisition based on the rationale provided in paragraph 5. However, this acquisition will be synopsized at the Federal Business Opportunities website as required by FAR 5.201, which allows interested firms the opportunity to identify their interest and capability to respond to the requirement or submit proposals. Any information received from responsible sources will be considered.

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,” 52.244-2 “Subcontracts,” and 52.219-8 “Utilization of Small Business Concerns.” GDLS will also be required to submit a subcontracting plan for review and approval in accordance with 52.219-9 “Small Business Subcontracting Plan.”

7. Actions to Increase Competition: As stated above in paragraph 5, the Government does not have rights in the TDP sufficient to compete this effort. This is the only known requirement for this MITAS A-kit, no additional action for a future competitive action will be pursued.

8. Market Research: PM - SBCT and ACC - WRN issued a sources sought notice on 15 Mar 2019. The market survey asked companies to describe if they have successfully manufactured and delivered similar noncommercial components or kits for Stryker Vehicles or similar vehicles. The survey also asked companies to describe their production capacity and lead times if they had any experience. All responsible sources were encouraged to submit a capability statement, proposal, or quotation for the USG to consider by the 30 Mar 2019 closing date. No responses were received.

Pursuant to FAR 10.002(b) (2)(i), in March 2019, knowledgeable individuals in the fields of engineering and logistics from PM SBCT, were interviewed by the PM SBCT Procurement Analyst on the market for other qualified sources for MITAS A-Kit. All respondents indicated that there are no known sources, other than GDLS, that would have the capability and resources required to perform this effort.

9. Interested Sources: To date no other sources have written to express an interest or are believed to be capable of supplying the kits to suitable fit, form, and function.

10. Other Factors

a. Procurement History:

a. Contract Number: W56HZV-16-D0037 Delivery Order/Modification: 0013/multiple Original Award Date: 31 Jan 2018 Purpose: Design, Development, and Test of Upgraded MITAS A-Kit Price: $3,414,287 Contractor: GDLS Competitive Status: Sole Source Authority Used: 6.302-1, “Only One Responsible Source and No Other Supplies or

Services Will Satisfy Agency Requirements.”

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.

Typed Name: Cynthia Macheske Date: 11Apr 2019 Title: Stryker Product Signature: //s//

Support Manager

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.

Typed Name: Cynthia Macheske Date: 11 Apr 2019 Title: Stryker Product Signature: //s//

Support Manager

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. A price and cost analysis will be performed to determine fair and reasonableness. The contractor will be required to submit certified cost and pricing data IAW FAR 15.403-4(a)(1).

Typed Name: Michael T. Alsip Date: 11 Apr 2019 Title: Contracting Officer Signature: //s// MTA

Kits, Retrofit, and Service Support

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

Typed Name: Michael T. Alsip Date: 11 Apr 2019 Title: Contracting Officer Signature: //s// MTA

Kits, Retrofit, and Services Support