JA-BELV-24-324_2GEN B-Kit Ceiling Increase -Redacted.pdf

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Control Number: JA-BELV-24-324

Program/Equipment: 2GEN FLIR B-Kit

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JUSTIFICATION REVIEW DOCUMENT

for OTHER THAN FULL AND OPEN COMPETITION - FAR PART 6

Program/Equipment: Program Executive Officer Intelligence, Electronic Warfare and Sensors (PEO IEW&S), Project Manager Terrestrial Sensors (PM TS), Product Manager Ground Sensors (PM GS) contract for Second Generation Forward Looking Infrared (2GEN FLIR) B-Kit Components and Spares

Authority: 10 United States Code (U.S.C.) § 3204(b)(B)(i) as implemented by FAR 6.302-1(a)(2)(ii)(A), Substantial duplication of cost to the Government that is not expected to be recovered through competition.

Amount of Increase: $95.0M

Prepared by:

Contracting Officer:

Technical Representative:

Requirements Representative:

Controlled by: Army Controlled by: ACC-APG CUI Category: General Procurement and Acquisition Distribution/Limited Dissemination Control:

FEDCON

(b) (1) (B), (b) (6)

(b) (1) (A), (b) (6)

(b) (6)

(b) (6)

(b) (1) (B)

Contractor:

Program/Equipment: 2GEN FLIR B-Kit

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JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION – FAR PART 6

1. Contracting Activity: U.S. Army Contracting Command Aberdeen Proving Ground (ACC-APG), Belvoir Division

2. Description of Action: This action is for a modification to increase the ceiling on contract number W909MY-19-D-0004. The contract is a single award Indefinite Delivery Indefinite Quantity (IDIQ) type Firm-Fixed-Price (FFP)/Cost-Plus-Fixed-Fee (CPFF) contract with a five

(5) year base ordering period and two (2) optional one (1) year ordering periods, awarded to on 30 January 2019.

This action is a result of contract ceiling increase will allow for the continued procurement of Horizontal Technology Integration (HTI) Second Generation Forward Looking Infrared (2GEN FLIR) B-Kit components and spare parts to support existing U.S. Army customer requirements through the end of the current contract performance period of 29 January 2026. The period of performance will remain the same. The ceiling will be increased by $95.0M from the current ceiling of $67.3M to the new total ceiling of $162.3M on the Firm-Fixed-Price CLINs only.

Approximately $1.124 million (or 1.67% of the total ceiling) remains. Based on current projected program requirements the current remaining ceiling will not be adequate to procure the remaining components and spare parts to support the mission through FY26, as originally planned. This effort will be funded with Fiscal Year (FY) 2024-2026 Operations and Maintenance, Army (OMA); Other Procurement, Army (OPA); Weapons and Tracked Combat Vehicles (WTCV) Army funding; Army Working Capital Funds (AWCF) and FMS funds.

3. Description of Supplies/Services: The U.S. Army Program Executive Office Intelligence Electronic Warfare & Sensors (PEO IEW&S), Project Manager Terrestrial Sensors (PM TS), and Product Manager Ground Sensors (PM GS) is responsible for the 2GEN FLIR program which provides night vision targeting capabilities for armored vehicles and long-range night vision reconnaissance capability to the Warfighter and FMS customers. The 2GEN FLIR program entails the production of a common Forward Looking Infrared subassembly (known as the B-Kit) which is integrated, through the use of platform unique components (known as A-Kits), into multiple vehicular platforms such as the M1A2 System Enhancement Package Abrams tank, M1A1 Abrams Integrated Management tank, M2A3 Bradley Fighting Vehicle (BFV), and Long- Range Advanced Scout Surveillance System (LRAS3). Existing Army customers include PM Abrams, PM Bradley, Communications-Electronics Command Integrated Logistics Support Center (CECOM ILSC), Tank-Automotive & Armaments Command (TACOM ILSC)

Contractor: DRS Network & Imaging Systems, LLC Program/Equipment: 2GEN FLIR B-Kit

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Government. The Government’s estimate to qualify an alternate source for the 2GEN FLIR B- Kit components would require a reverse engineering effort of the current system, prototyping, and qualifying the prototypes at both the component and system level. Furthermore, the new B- Kit components would require establishing logistics support. As a result, it is anticipated the cost to qualify a second source would cost the Government over $200 million. The breakout of which would include the reverse engineering and redesign of a new TDP. The cost alone of a new TDP is estimated to be $60 million. It is also estimated that it will take an estimated $150 million to build prototypes, perform first article testing, perform operational testing on each of the various platforms, productionize the unit, and build the logistics infrastructure to support the new 2GEN FLIR components. In addition to the duplication of costs, it would take three (3) to five (5) years to perform the tasks associated with this effort, . Utilizing any other contractor (other than the incumbent), would require a duplication of expenditures to replicate manufacturing and test equipment to perform first article testing for deployment. The replication investment of over $200 million would not realize any U.S. Government savings, and the amount to be recovered through competition would be $0.00. Furthermore, the process described above would cause significant unacceptable delays of at least 5 years. Replication would require the Government to perform platform testing across all Abrams, Bradley, and FMS variants prior to accepting deliveries. It was, therefore, determined that such an investment would not be recovered through competition due to the late stage in the product’s lifecycle. It is also important to note, presently, Government funding is not available to develop and qualify a new source and customer demands cannot withstand subsequent delays inherent with the qualification of new production line(s) and processes.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201, Synopses of Proposed Contract Actions, and any bids or proposals received shall be considered. There are no other plans to increase competition for these 2GEN FLIR products.

a. Effective Competition: This requirement was originally planned as a limited competition contract between . However, in November 2018, “no bid” prior to award, resulting in the award of a single award contract to On 17 October 2023, re-confirmed written disinterest on this effort. Hence, effective competition is not possible or applicable. To keep the industry apprised of 2GEN FLIR requirements and survey industry capabilities, a Sources Sought Announcement under Notice ID W909MY-19-D-0004 was published to the SAM.gov website on 26 October 2023 for 2GEN FLIR B-Kit components. The announcement and response period remained open from 25 October 2023 until 22 November 2023. The only relevant response received was from which indicates that there is only one source able, willing, and capable of satisfying the Army’s 2GEN FLIR B-Kit requirements.

b. Subcontracting Competition: FAR 52.244-5, Competition in Subcontracting, will be included in the proposed action. DRS has been and will continue to be encouraged to further both the socio-economic goals identified in FAR Part 19, Small Business Programs, and employ competition among small businesses to increase the potential for competitive participation at the

(b) (1) (B)

(b) (1) (B) (b) (1) (B)

(b) (1) (B) (b) (1) (B)

Program/Equipment: 2GEN FLIR B-Kit

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November 2017 by , on an Other than Full and Open Competition basis as implemented by FAR 6.302-1(a)(2). In November 2018, before award of the contract, notified the ACC that they were no longer interested in providing support for this effort. In January 2019, contract W909MY-19-D- 0004 was awarded to for the procurement of 2GEN FLIR B-Kit components to support existing Army production, sustainment, and FMS customer requirements through 29 January 2026. See the table below for tabulated list of the applicable contracts.

Table 3

b. Other Facts: N/A

Contract Number Award Date Contractor NAICS Business

Size Extent Competed/

Authority W15P7T-06-C-M209 31-Jul-2006 334511 Large Sole Source/FAR 6.302-1

W909MY-15-D-0001 13-Nov-2014 334511 Large Limited Comp/FAR 6.302-1

W909MY-15-D-0002 13-Nov-2014 334511 Large Limited Comp/FAR 6.302-1

W909MY-19-D-0004 30-Jan-2019 334511 Large Limited Comp/FAR 6.302-1

2GF B-Kit Components Contracts

(b) (1) (B)