JA for Stryker DVH A1 ECP Vehicle Exchange Production Final - REDACTED.pdf

CMO Control Number: 2018-130

FOR OFFICIAL USE ONLY

Justification Review Document for Other Than Full and Open Competition

Program/Equipment: Stryker Family of Vehicles FY20-25 Double “V” Hull (DVH) A1 Engineering Change Proposal (ECP) Vehicle Exchange

Authority: Title 10 United States Code (U.S.C.) 2304 (c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)

Amount: $6.01 billion (B)

Prepared by:

Typed Name: Jenna McGinnis DSN: 786-3205 Title: Contract Specialist Production & Program Support Team Email: jenna.n.mcginnis.civ@mail.mil Date: 23 October 2018

Contracting Officer:

Typed Name: Jaclyn M. Flewelling DSN: 786-4819 Production & Program Support Team Email: jaclyn.m.flewelling.civ@mail.mil Date Reviewed: 29 October 2018

Technical Representative:

Typed Name: Steven E. Curtis DSN: 786-2188 Title: SBCT Production and Product Assurance & Test Email: steven.e.curtis12.civ@mail.mil Date Reviewed: 23 October 2018

Requirements Representative:

Typed Name: Clifton J. Boyd DSN: 786-2188 Title: Deputy Project Manager, PMO SBCT Email: clifton.j.boyd.civ@mail.mil Date Reviewed: 29 October 2018

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Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Project Manager

Typed Name: COL GLENN A. DEAN III DSN: 786-2001 Title: Project Manager, Stryker Brigade Combat Team

See Hand Signature Page 29 October 2018 Signature Date

Program Executive Office

Typed Name: MG BRIAN P. CUMMINGS DSN: 786-6662 Title: Program Executive Officer, Ground Combat Systems

Signature Date

Legal Counsel

Typed Name: TARA YALDOU DSN: 786-3995

//s//Tara Yaldou 5 October 2018 Signature Date

Command Advocate for Competition

Typed Name: LARUTH SHEPHERD DSN: 786-6597

__//s//LaRuth Shepherd____________ 5 Nov 2018 Signature Date

Principal Assistant Responsible for Contracting

Typed Name: DANIEL J. GALLAGHER DSN: 786-7025

//S// Daniel J. Gallagher__ __26 Nov 2018__ Signature Date

Freedom of Information Act - Exemption #5

Freedom of Information Act - Exemption #5

Freedom of Information Act - Exemption #5

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7. Actions to Increase Competition: A complete systems-level TDP for the Stryker FoV will not be procured for the reasons stated in paragraph 5 above. The Government is continuously conducting market research in an effort to provide for future competition.

8. Market Research: PMO SBCT continuously conducts market research in accordance with FAR 10.002(b)(2) to determine whether other capabilities of industry can be used to fulfill its lifecycle requirements and to ensure its acquisition methods obtain the best value for the Government. The following actions are examples of how PMO SBCT acquired market information in preparation for this acquisition:

a. ACC-WRN and PMO SBCT issued a Sources Sought notice for the DVH A1 ECP Vehicle Exchange requirement on 02 August 2018. The notice was issued to assess the capabilities and readiness of qualified contractors and to determine if commercial equivalents for the requirements discussed in this justification exist.

The Government did not receive any responses related to the DVH A1 ECP Vehicle Exchange Sources Sought notice by the 04 September 2018 closing date; therefore, the market research conducted supports the assertion and rationale detailed in paragraph 5 that GDLS is the only contractor that can meet the program requirements within the required timeframe and available funding.

b. Representatives from each program discipline and ACC-WRN launched an ongoing competition campaign to research, plan, and build a business base to increase long-term competition opportunities in support of the Stryker FoV.

Under this campaign, a Sources Sought notice was released on 06 March 2017 on Federal Business Opportunities to gauge industry’s capabilities to provide services and/or components for Stryker vehicles. The Sources Sought notice also allowed contractors to request to have a Stryker vehicle bailed to them in an effort to conduct studies, at its own expense and risk, on possible future capabilities for the vehicles. The Government received 73 responses from 63 contractors, which included Booz Allen Hamilton, Northrop Grumman, and Mandus Group, by the 01 April 2017 Sources Sought notice closing date for potential updates to the Stryker vehicles. At that time, the Government determined there were no effective solutions presented that would fulfill the needs of the DVH A1 ECP Vehicle Exchange requirement; however, the Sources Sought notice resulted in the execution of 14 bailment agreements for contractors to familiarize themselves with the Stryker FoVs through studies on possible future capabilities to enable them to potentially compete on future requirements. Performance under the bailment agreements may result in potential integration of new technologies; however, no contractor has undertaken the effort required to reverse engineer the Stryker FoV and the related variants.

9. Interested Sources: No other sources have expressed interest in providing the DVH A1 ECP Vehicle Exchange requirement.

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Justification: GDLS owns and manages the only complete collection of technical information on the Stryker FoV and major subsystems generated over 15-plus years. Award to any other contractor would result in a duplication of costs and unacceptable delay in order to fulfill the Stryker Authorized Acquisition Objective (AAO).

Scope: This three-year Requirements contract was executed to perform exchange production to replace available FBH chassis with new DVH chassis and incorporate Stryker DVH A1 ECP upgrades. Upgrades include engine upgrades that increase power pack management and horsepower, a newly designed driveline, an electrical power generator management system, and an upgraded in-vehicle network infrastructure to accept future Army network systems. To date, the Government has ordered 523 Stryker DVH A1 ECP vehicles, including an additional 173 awarded in October 2018.

b. Other Facts: N/A

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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: STEVEN E. CURTIS Date: 23 October 2018 Title: Director, Signature: See Hand Signature Page SBCT Production and Product Assurance &Test

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: CLIFTON J. BOYD Date: 29 October 2018 Title: Deputy Project Manager, Signature: See Hand Signature Page

PMO SBCT

13. Fair and Reasonable Cost Determination:

The negotiated price will be determined fair and reasonable through a combination of a Cost Analysis to thoroughly analyze each of the proposed individual cost elements in addition to conducting a Price Analysis to ensure that the price agreement is consistent with the Independent Government Cost Estimate and/or historical pricing for similar items. ACC-WRN has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the Contracting Officer by performing the Cost and Price Analyses. The Contracting Officer 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 contractor’s proposal is typically split between work at the contractor’s US subsidiary and work at its Canadian subsidiary. Defense Contract Audit Agency and Defense Contract Management Agency will provide expertise and audit support for the proposed US work, and Public Works and Procurement Canada will provide expertise and audit support for the proposed Canadian work pursuant to an existing Memorandum of Agreement with the Department of Defense. PMO SBCT and the Stryker Pricing Team have numerous cost reporting CDRLs on existing contracts that report incurred actual cost for various elements of cost, maintained in an archive and used as appropriate for the analysis of each proposal. The recommendations, as contained in the various audits, technical reports, and historical data, will be used by the Cost/Price Analyst to develop a recommended negotiation position. The recommended negotiation position will also incorporate time study results, collected by a joint USG pricing and requirements team at the contractor’s facilities, specifically its Lima, Ohio plant. This detailed Government negotiation position will be approved in a comprehensive Business Clearance Review 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 price fair and

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reasonable determination from the Contracting Officer will be documented in a Price Negotiation Memorandum that will be reviewed and concurred upon by senior contracting personnel within the Pricing Division.

Name: JACLYN M. FLEWELLING Date: 29 October 2018 Title: Contracting Officer, Signature: See Hand Signature Page Production & Program Support Team

14. Contracting Officer Certification:

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

Name: JACLYN M. FLEWELLING Date: 29 October 2018 Title: Contracting Officer, Signature: See Hand Signature Page Production & Program Support Team

FOR OFFICIAL USE ONLY

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of Double “V” Hull (DVH) A1 Engineering Change Proposal (ECP) Vehicle Exchange from General Dynamics Land Systems on an other than full and open competition basis pursuant to the authority of Title 10, United States Code 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii)(A), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The approval is subject to availability of funds for each procurement, and provided that the property herein described have otherwise been authorized for acquisition. The total estimated value for this acquisition is $6.01 billion.

Date Bruce D. Jette

Senior Procurement Executive