JA ATS III Extension redacted 27 APR 2023_Redacted.pdf

CMO Control Number: 2023 - 004

DEPARTMENT OF THE ARMY

JUSTIFICATION AND

APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S Army Contracting Command Detroit Arsenal (ACC- DTA), Detroit Arsenal, Michigan 48397-5000 is the procuring activity responsible for this action.

2. Description of Action: ACC-DTA proposes to add 12 months of additional ordering time to the Army Targetry Systems (ATS) III, Multiple Award (MA), Indefinite- Delivery Indefinite-Quantity (IDIQ) base contracts in Table-1 below. This proposed action will move the contract expiration dates from 14 March 2023 to 14 March 2024.

Contract # Award Expiration Contractor Small

Business

W56HZV18D0001 16 March

14 March

InVeris Training Solutions (IVTS)(formerly Meggitt)

No

W56HZV18D0002 16 March

14 March

Saab Training USA LLC (Saab)

No

W56HZV18D0003 16 March

14 March

Strategic Systems, Inc

(SSI)

Yes

W56HZV18D0004 16 March

14 March

SIUS Target Systems USA, Inc. (SIUS)

Yes

W56HZV18D0005 16 March

14 March

Theissen Training Systems (TTS)

Yes

Table 1 ATS III IDIQ Base Contracts

The ATS III contracts are used to procure live-fire training systems for Army ranges to be installed at various geographical locations throughout the world. The extension request is required in order to allow time for the Government to award a new live-fire training systems contract in Fiscal Year (FY) 2024. This extension will ensure that the Government has the continuous ability to procure and field ranges as required for the

3. Description of Supplies/Services: Program Executive Office Simulation, Training & Instrumentation (PEO STRI) has a continuous requirement to utilize the ATS III contract to procure and install live-fire ATS equipment at various types of

Readiness Capability and Vulnerability

4. Authority Cited: 10 USC 3204(b)(B)(i) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii)(A), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As authorized by FAR 6.302-1(a)(2), procurement is restricted to Sius, Theissen Training Systems (TTS), InVeris Training Solutions (IVTS)(formerly Meggitt), Saab and Strategic Systems Inc. (SSI). They are the Original ve been successfully providing the required hardware and installation since performance started in 2018.

The Government does not have the pertinent technical data specifications or complete build to print Technical Data Packages (TDP) for the targetry equipment recognized in this J&A, nor does the Government have proprietary rights to any of the ATS vendor data.

All ATS III contractors have informed TACOM that they are NOT willing to sell their TDP to the Government. The only way for TACOM to meet the requirements of the targetry equipment is to reverse engineer one of the existing OEMs products prior to the end of the ATS III life in 2023. If TACOM were to reverse engineer ATS devices in order to meet the requirements, it would be a gross duplication of cost and effort already being worked by PEO STRI (see Table 3 below). In addition, there is not enough time to complete a Reverse Engineering effort to continue to field ranges by the ATS III contract expiration in March 2023. The following illustrates the costs associated with Reverse Engineering one of the OEMs products:

a) Target systems are a complex network of highly integrated parts engineered to work in unison. All the ATS contractors own the tech data required for the individual parts, movement mechanisms, communication devices, and computer software package (including firmware) to interface together to achieve a working targetry system. These systems include hundreds of proprietary parts and assemblies. Based on parts information gained from sole source spare parts contracts for target systems, one OEMs parts list includes 222 types of proprietary parts and assemblies alone. Further, all of the components provided by each OEM for its target systems have been fabricated for, and rigorously tested with the equipment it provides to achieve the exact form, fit and function constraints.

b) There is a firmware package manufactured by each OEM, which each ATS III OEM is also unwilling to sell. The firmware package is a very complex piece and the Government does not have the resources to perform the firmware development nor reverse engineer this portion of the targetry equipment in a meaningful time.

c) Reverse engineering and TDP development would be required in order to competitively solicit for each of the required replacement / proprietary parts.

Detailed Financial data.

Financial data

a. Effective competition. All future requirements will continue to be competed amongst the five ATS III prime contractors.

b. Subcontracting competition. Three of the current contractors under the ATS III contract are registered as Small Businesses and will not be required to provide a Small Business Subcontracting Plan (SBSP). The remaining two contractors are Other-Than Small Businesses and will be required to update their SBSP in accordance with (IAW)

FAR 19.705.

7. Actions to Increase Competition: Product Manager (PdM) Live Training Systems (LTS) is in the process of developing Government owned product level TDPs based on the Development Contract (W900KK-18-D-0031, DO 20F0123), which was awarded 10 July 2020 to General Dynamics One Source, LLC (GDOS). The contract is a Cost-Plus Fixed Fee (CPFF) contract and anticipated to be completed in 2024; dependent upon ranges available to complete Low Rate Initial Production (LRIP). After LRIP and full transfer of the Product Level TDP to the Government, GDOS and its major subcontractors will not be able to compete on future procurements for the TDPs due to an Organizational Conflict of Interest (OCI).

With the publication of the TDP as part of the RFP, this should allow numerous other vendors to compete for this work in addition to the traditional target lifter manufacturers in market. The TDP removes all of the typical design, development, and in-plant contractor testing typically required by an OEM in order to produce these products. New production-only contractors, in addition to the traditional target lifter providers, will be competition to that would not normally be able to do the upfront design and development work.

PEO-STRI is actively working a follow-on MAC similar to the ATS III contract but based on the new TDP. The program team anticipates entering into PALT in late Q3 FY23 with a contract award date of Q3 FY24. Initial market research being performed by the team has already indicated that numerous vendors are interested in this new contract and being able to compete for work on these Live Fire ranges. The additional interest is based on being able to produce targets based on an approved design vs needing the engineering, quality control, and other resources to develop their own lifters. Once the base MAC is awarded, follow on delivery orders will then be processed with anticipated award dates in late FY24. It is crucial for the FASIT program to be able to utilize the ATS III contract to continue its tech refreshes and new range deliveries until this new MAC is in place.

8. Market Research: A Request for Information (RFI) was sent to industry in March of 2021 and June of 2022 explaining the plan to extend the ATS III contract and requesting interest in attempting to compete on a new ATS like contract that would start after the current contracts expire. The RFI explained that the Government will be producing a Government owned TDP within the next few years. No responses were received from either RFI; therefore, it was concluded there are no additional industry players interested in the current or future ATS contracts.

PII

Approval

Based on the foregoing justification, I hereby approve the extension of Army Targetry Systems (ATS) III, Multiple Award (MA), Indefinite-Delivery Indefinite- Quantity (IDIQ) base contracts for an estimated total cost of $4,923,293. This approval is based on other than full and open competition basis pursuant to the authority of title 10 USC 3204(b)(B)(i) as implemented by FAR 6.302- Responsible Source and No Other Supplies or Services Will Satisfy Agency ecifically, FAR 6.302- Guard, 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 subject to the availability of funds and provided the supplies and services herein described have otherwise been authorized for acquisition.

X LaRuth Shepherd Competition Advocate