JA for MSV(L) STS_7March23_FINAL REDACTION_Redacted.pdf

CMO Control Number: 2023-037

CUI

CUI

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of the Action: ACC-DTA proposes to award a new five-year Indefinite Delivery, Indefinite Quantity (IDIQ) Cost Plus Fixed Fee (CPFF) contract to Vigor Works, LLC (Vigor). The contract will provide Systems Technical Support (STS) services solely for the Maneuver Support Vessel Light (MSV(L)) within Product Manager, Army Watercraft Systems (PdM AWS). The STS services will be funded with Research, Development, Test & Evaluation (RD&E) or Other Procurement, Army (OPA) based on the nature of the work to be performed. CPFF term and completion Contract Line Item Numbers (CLINs) will be used for the STS services with the determination based on whether the requirement states a definite goal and specifies an end product.

3. Description of Supplies/Services: The purpose of this acquisition is to provide STS services for the MSV(L). The proposed service contract will include Component Obsolescence and Replacement, Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) Support, Electromagnetic Environmental Effects (E3) Support and Testing, Component Improvement, Configuration Management and Technical Data Package (TDP) Maintenance, Engineering Change Proposals (ECPs), Environmental Issue Resolution, Failure Analysis, Logistics Support, Program, Engineering, and Quality Management, Safety Engineering, System Operational Verification Test (SOVT), Systems and Equipment Training, Contractor Field Services, and Maintenance Work Orders (MWO).

The total estimated dollar value of all MSV(L) STS program requirements, as derived from a 12 December 2022 Independent Government Cost Estimate (IGCE), is

4. Authority Cited: The statutory authority permitting Other than Full and Open Competition is Title 10 United States Code (U.S.C.) 3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302- 1(a)(2)(iii)(B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Specifically, supplies or services may be deemed available only from the original source, in a follow- on contract for the continued development or production of a major system or highly specialized equipment. This would include major components thereof, or for the continued provision of highly specialized services, when it is likely that award to any other source would result in “unacceptable delays in filling agency requirements.”

CUI

5. Reason for Authority Cited:

a. Only one responsible source:

Vigor Works, LLC, (Vigor) is the only source that can fulfill the Government’s requirement for STS services for the MSV(L) vessel, as the Government does not have the pertinent technical data to enable competitive re-procurement. To date, the Government has not accepted or released a TDP, and lacks the TDP data needed for a third party to perform STS work on the MSV(L). While Vigor has this data, it is not complete, and cannot be released to a third party until the Government has accepted the deliverable. Without access to a complete TDP with sufficient detail, another contractor cannot perform the required program management, technical services, logistic management, and contractor field services required to support the MSV(L) program’s immediate needs to ensure the vessel contains the most up to date C5ISR suite to ensure timely fielding of vessels, maintain the expected TDP package, incorporate ECPs, perform configuration management, and develop the most affordable and producible design to meet the performance requirements. Once the TDP is completed, accepted, and released, Vigor will still maintain custody throughout production, and will remain the only source able to update the TDP and cut engineering changes into production.

b. Unacceptable delays:

To implement a competitive acquisition strategy, it would take up to 31 months to receive the required data, refine the drawings, validate and verify that the drawings match the design, conduct a Source Selection, and award the contract. Below are the time delays required to compete the MSV(L) STS contract:

REF. TASK DELAY

5.c(i) Refinement of drawings & acceptance of TDP 12 months 5.c(ii) Physical Configuration Audit (PCA) on LRIP 1 15 months 5.c(iii) Source Selection and Contract Award 4 months

TOTAL 31 months

i. Prior to providing a TDP to a third-party, the Government must ensure configuration control. The Government’s configuration control processes require the TDP to be released and revisions accomplished through a defined process.

ii.

iii. A competitive source selection, with a technical evaluation factor, would take up to an estimated 4 months to review and analyze all received offers and award the contract.

CUI

The given 31 months lead time for implementing a competitive strategy is reflective on all actions being achieved efficiently and without substantial issues occurring. This is an unacceptable delay to meet the Government’s STS needs for the MSV(L) vessel.

Without a STS contract in place, the Government’s ability to ensure the vessel contains the most up to date C5ISR suite to ensure timely fielding of vessels, maintain the expected TDP package, incorporate ECPs, perform configuration management, and develop the most affordable and producible design to meet the performance requirements, would be compromised. Further, Vigor will still maintain custody of the TDP throughout production and will remain the only source able to update the TDP and cut engineering changes into production, resulting in further delays as Vigor completes this work to implement any design change developed by a third party.

6. Efforts to Obtain Competition:

a. Effective Competition: There is no plan to obtain competition for this contractual action on the prime contractor level for the reasons stated above in paragraph 5. All notices required by FAR 5.201 shall be published, and any proposals received shall be considered.

b. Subcontracting Competition: The solicitation for this effort will contain FAR clauses 52.219-8, 52.219-9, 52.219-16, and 52.219-28 and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003 to ensure the contractor competitively subcontracts to the maximum extent practicable. Per FAR 19.702, the contractor will be required to submit a Subcontracting Plan that utilizes small businesses and subsets of the small business category. ACC-DTA will evaluate the contractor’s proposed subcontracting plan and work during negotiations to set subcontracting goals at the acceptable levels as defined by Department of Defense (DoD).

7. Actions to Increase Competition: Currently, Vigor is the only source capable of performing the work due to lack of a complete and competitive TDP. For future MSV(L) STS requirements, the Government will own a validated Production Level TDP that can be used to compete the requirements or be utilized within the organic industrial base. The Government will conduct market research as necessary to ascertain if there have been any changes in the competitive marketplace, but as stated above it is the current intent to competitively award future requirements.

8. Market Research: ACC-DTA posted a sources sought market survey for Current Fleet STS program requirements to SAM.gov on 15 Feb 2022 with a suspense date of 30 Mar 2022. The market survey aimed to obtain information on the watercraft industry’s capabilities and interests in performing the Army Watercraft Systems (AWS) Current Fleet STS program. ACC-DTA received six (6) responses from vendors interested in the requirement. Subsequently an additional market survey, specific to the

CUI

MSV(L) vessel, was posted to SAM.gov on 19 Jan 2023 with a suspense date of 24

JAN 2023.

However, as mentioned above, Vigor is the only company able to fulfill these requirements for the MSV(L) without an unacceptable delay.

9. Interested Sources: As indicated above, there are a total of seven (7) additional contractors which are capable of performing STS-type services.

However, for the reasons stated in paragraph 5 above, awarding the MSV(L) STS effort to any other source creates an unacceptable delay to the Government in meeting critical design, development, and subsequently fielding requirements.

10. Other Facts:

a. Procurement History:

(1) W56HZV-17-D-0086, awarded on 28 September 2017.

(2) Competitive

(3) N/A

(4) N/A

(5) The current contract, referenced above, does contain scope related to system technical support, however in relation to Interim Contractor Support (ICS). ICS is a logistics centric function that includes maintenance and training. However, this STS requirement is engineering centric.

(6) N/A

(7) N/A

b. Other facts: None.

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.

Name: Nate Leightner Date: 6 MAR 2023

Title: Program Officer, MSV(L) Signature: //s// Nate Leightner

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.

Name: Nate Leightner Date: 6 MAR 2023

Title: Program Officer, MSV(L) Signature: //s// Nate Leightner

13. Fair and Reasonable Cost Determination:

The negotiated price will be determined fair and reasonable through a combination of Cost Analysis to thoroughly analyze each of the proposed individual cost elements, in addition to conducting a price analysis to ensure the proposed price is consistent with IGCE and actual historical pricing of similar Program Executive Office Combat Support & Combat Service Support (PEO CS&CSS) programs. ACC-DTA has a dedicated Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the Procuring Contracting Officer (PCO) by performing the Cost and Price analysis. This analysis will also be supported by a PdM AWS technical review. The PCO will request that engineers or similar personnel familiar with the end item review labor types and quantities as well as material kinds and quantities to ensure that what is proposed is fair and reasonable.

The Defense Contract Audit Agency (DCAA) and DCMA expertise and audit support may be requested for input if applicable. The recommendations contained in the DCAA Audit, DCMA technical report, and/or Program Office engineering technical report will develop a recommended negotiating position. This detailed Government position will be approved in a comprehensive Business Clearance Review (BCR) consisting of reviews from senior Contracting officials. Certified Cost or Pricing Data will be required and will form the basis for this analysis. The results of negotiations, and the detailed Fair and Reasonable determination from the Contracting Officer, will be documented in a Post Negotiation Memorandum (PNM) that will be reviewed and concurred upon by senior Contracting personnel within the Pricing Division.

Name: Jared Chambers Date: 7 MAR 2023

Title: Procuring Contracting Officer Signature: //s// Jared Chambers

14. Procuring Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Jared Chambers Date: 7 MAR 2023

Title: Procuring Contracting Officer Signature: //s// Jared Chambers