JA ManTech W31P4Q21D0026P00005.pdf

Control No. MZA-B-J&A23-1443

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Combat Capabilities Development Command, Aviation & Missile Center’s (DEVCOM AvMC) Systems Readiness Directorate (SRD), Manufacturing Science and Technology (MET) Division requires engineering services for analysis, development, and implementation of manufacturing technology for the defense industrial base.

Authority: 10 U.S.C. 3204 (a)(3)(B), as implemented by Federal Acquisition Regulation (FAR) 6.302-3(a)(2)(ii) - Industrial mobilization; engineering, developmental, or research capability; or expert services.

Amount: $176,378,205.50

Prepared by: Sabrina Harris

General Engineer Email: sabrina.a.harris1.civ@army.mil

Phone:

Date:

256-876-4495

Contracting Officer: Joel Koppinger Contracting Officer Email: joel.m.koppinger.civ@army.mil

Phone:

Date:

256-746-8061

Technical/Requirements Dr. Amy Lawrence Phone: 256-842-7991 Representative: Chief, Manufacturing and Electronics Date:

Technology Division, SRD Email: amy.j.lawrence7.civ@army.mil

Controlled by: Army Controlled by: ACC-RSA, CCAM-MZA-B Category: Procurement & Acquisition

POC: Joel Koppinger, joel.m.koppinger.civ@army.mil

Chief Counsel

Typed Name: SN:_____________

Signature: _________________________________ Date:_____________________

Senior Contracting Official

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

Program Manager

Typed Name: _ DSN: ______________________

Signature: __________________________________Date: ______________________

Legal Counsel

Typed Name: ___David E. Coenen DSN: ______________________

Signature: _________________________________ Date: _______________________

Command Advocate for Competition

Typed Name: Virginia A. Rosacia DSN: ______________________

Typed Name: Joseph A. Giunta Jr. DSN: ______________________

Signature: _________________________________ Date: ______________________

LAWRENCE.AMY.JANE.1230727100 Digitally signed by LAWRENCE.AMY.JANE.1230727100 Date: 2023.06.15 15:15:12 -05'00'

COENEN.DAVID.E.14027893

Digitally signed by

COENEN.DAVID.E.1402789340

Date: 2023.06.16 09:58:40 -05'00'

Signature: _____________________________

ROSACIA.VIRGINI

A.A.1230065108

Digitally signed by

ROSACIA.VIRGINIA.A.1230065108

Date: 2023.06.20 09:01:10 -05'00'

FONTENOT.GENEV

IA.M.1230853122

Digitally signed by

FONTENOT.GENEVIA.M.12308531

Date: 2023.06.21 14:26:03 -05'00'

GIUNTA.JOSEPH.ANT

HONY.JR.1067543137

Digitally signed by

GIUNTA.JOSEPH.ANTHONY.JR.106

7543137 Date: 2023.06.22 12:39:54 -05'00'

FAR PART 6 JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Army, Army Contracting Command – Redstone Arsenal (ACC-RSA), CCAM-MZA-B Division, Redstone Arsenal, AL 35898-5000.

2. Description of Action: ACC-RSA, on behalf of the Combat Capabilities Development Command, Aviation & Missile Center (DEVCOM AvMC) Systems Readiness Directorate (SRD), requests approval to increase the ceiling on the current Cost-Plus-Fixed-Fee (CPFF) Indefinite Delivery, Indefinite Quantity (IDIQ) contract. The contract number is W31P4Q-21-D-0026 and it expires on 29 September 2026. The contract is awarded to the National Center for Defense Manufacturing and Machining (NCDMM), 486 Cornell Road, Suite 2, Blairsville, PA 15717-8007 (Cage Code 3RXG4). The contract provides engineering services for analysis, development, and implementation of manufacturing technology for the defense industrial base. The contract was awarded utilizing limited competition to an educational or other non-profit institution whose proposal represented the Best Value to the Government. The contract ordering period is five-years, from 29 September 2021 through 28 September 2026.

The ceiling will increase by $176,378,205.50, from $69,771,368.16 to $246,149,573.66.

Research, Development, Test and Evaluation (RDT&E) are the primary source of funds used on this contract. However, customer funding is also used on a direct cited basis if the Statement of Work is appropriate for that type of funding, e.g., Operation and Maintenance, Army (OMA), Army Working Capital, Army Procurement Appropriations, or other appropriated funds.

This J&A is required because there has been an increased number of AvMC Manufacturing Science and Technology (MET) project proposals funded by multi-million dollar Congressional Adds/plus-ups that were not anticipated at the time of the original Independent Government Cost Estimate (IGCE). Additionally, there has been an increase in contractor/subcontractor costs, especially in the areas of equipment, supply chain issues, surging demand, production costs, and worker shortages caused by COVID-19.

Worker shortages, especially in the shipping area, caused parts and equipment availability shortage, leading to an increase in costs and a concomitant increase in the prices quoted for task orders. These combined factors have drastically increased the funding size of the task orders; thereby, impacting the contract ceiling.

3. Description of Supplies/Services: The purpose of this effort is to provide performance-based support to DEVCOM AvMC for assessment, development, and deployment of advanced manufacturing technologies that address the needs of the U.S.

Army and the Department of Defense (DoD). This support includes, but is not limited to, manufacturing technology projects that benefit the U.S. Army and DoD Industrial Base including manufacturing assessments, manufacturing process analysis and development, process demonstrations, and implementation of manufacturing solutions.

Types of potential manufacturing technology areas include but are not limited to U.S.

Army Aviation and Missile systems, as well as Manufacturing and Enabling/Disruptive Technologies for the larger DoD Industrial Base.

• Aviation – Platforms/materials/structures, power systems, engines/propulsion systems, drives/rotors, mission systems, avionics/navigation, sensors, networks, data link and communication, survivability, sustainability, autonomy, manned/unmanned teaming, unmanned aerial vehicle (UAV), component cyber security and aviation ground support equipment/systems.

• Missile – Target detection/acquisition/tracking sensors, missile electronics, seekers to defeat moving targets and air defense threats, guidance/control for improved precision and Global Positioning System-denied precisions, lethality mechanisms, warheads, fuses, payloads, radar, datalink and communication, materials and structures, power systems, aerodynamics, navigation systems, modeling and simulation, energetics, component cyber security, propulsion systems for increased range and decisive effects, missile launchers, and support equipment.

• Manufacturing and Enabling/Disruptive Technologies – Innovation enablers, additive manufacturing, high energy creation and storage systems, directed energy, advanced materials/processes, advanced manufacturing techniques, manufacturing cyber security, modeling and simulation, virtual prototyping, robotics, automation, high temperature materials, lightweight & hybrid materials, flexible electronics, reclamation/repair technologies, and open system architectures for enhanced manufacturing productivity (digital manufacturing and Industrial Internet of Things).

The basis of the estimate for the requested ceiling increase was derived from analysis of current data, specifically task order cost information from the contract, as well as actual costs as compared to CLIN pricing. The contract’s negotiated and accepted rates were utilized from the incumbent for the labor categories.

The requiring activity analyzed all current task orders under this contract, which incorporated high inflation rates from FY22 and FY23. An average task order cost was developed using this information. Assuming a total of 60 task orders over the span of the contract, and utilizing an inflation factor of 1.5%, a total cost estimate was developed.

The total IDIQ contract value is estimated at $246,149,573.66. The total estimated labor hours for all task orders anticipated to be issued during the five-year ordering period (2021–2026) is 481,160 labor hours.

Table 1- IGCE for Total IDIQ

Major Cost Element Total for 60 Task Orders (with inflation)

Direct Labor (481,160 hrs.) 9,764,080.61

Direct Materials 2,569,652.38 Direct Travel 870,990.05

Direct Subcontract 123,294,874.57 Direct Consultants - Direct Equipment 40,742,456.90

Other Direct Costs 38,605,949.04

Overhead Cost 10,579,111.32 *G&A 7,389,266.78

**MES&C 3,800,388.48

Fee 8,532,803.53

TOTAL SUM

Total 246,149,573.66

*General And Administrative **Materials, Equipment, Subcontracts and Consultant for the Prime

A yearly breakdown for the IGE amounts is included in the following chart. Task Orders issued during the five-year ordering period are estimated to be between $47,775,004.13 and $50,706,648.02 annually.

Table 2 – Totals with Inflation Considered

YEAR 1 2 3 4 5 TOTAL

Duration Sep 2021- Sep 2022

Oct 2022- Sep 2023

Oct 2023 – Sep 2024

Oct 2024- Sep 2025

Oct 2025- Sep 2026

Dollars $47,775,004.13 $48,491,629.19 $49,219,003.63 $49,957,288.69 $50,706,648.02 $246,149,573.66

4. Authority Cited:

The statutory authority for other than full and open competition is Title 10 United States Code (U.S.C.), Section 3204(a)(3)(B), as implemented by Federal Acquisition Regulation (FAR) 6.302-3(a)(2)(ii); Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services, which allows the use of non-competitive procedures in order to establish or maintain an essential engineering, research, or development capability provided by an educational or other non-profit institution.

5. Reason for Authority Cited:

DEVCOM AvMC requests approval to increase the ceiling of this contract with a five-year ordering period based on the original limited competition and market research. The ceiling increase is necessary to maintain uninterrupted analysis, development, and implementation of manufacturing technology for the defense industrial base services, currently being provided by the nonprofit NCDMM. The current contract was competed and awarded on 29 September 2021 and quickly approached its ceiling within the first year.

By utilizing FAR 6.302-3(a)(2)(ii), the Army will continue to maintain essential engineering, research, and development capability provided by a nonprofit institution. Additionally, DEVCOM AvMC will maintain its capability to meet the urgent and emerging engineering, research, and development needs of SRD’s customers, as described below, including PEO Aviation, PEO Missiles and Space, AMCOM, and DoD, through the essential engineering and development capabilities provided by the nonprofit institution NCDMM.

DEVCOM AvMC SRD MET Division is the single focal point for execution of Manufacturing Technology improvements and is depended upon to be responsive and meet its customer’s needs for transition and affordability of technical efforts. Any disruption in the delivery of these capabilities will limit the availability, accessibility and utilization of critical technologies, resulting in a negative impact on warfighter readiness.

The current contract addresses and supports the manufacturing and machining needs of the broad DoD and its supporting industrial base. Impeding the execution of a contract modification to increase the contract ceiling would result in a loss of benefits such as affordable manufacturing solutions, enhanced know-how and expertise, reach back support to prime contractors, lower tier subcontractors, small vendors/shops, training in enabling technologies, and minimizing offshore job migration. DEVCOM AvMC SRD, NCDMM has supported and will continue to support US Army Aviation

The DEVCOM AvMC SRD seeks to remain Technology Driven and Warfighter Focused, which entails meeting the needs of our PEO AVN, PEO MS, and AMCOM customers with manufacturing technology improvements and training resources, technologies, and facilities to develop the U.S. workforce. The current contract vehicle allows for the implementation of manufacturing techniques such as Model Based Systems Engineering (MBSE), which has been directed by the Army as part of the transition to a virtual environment for all programs in order to decrease acquisition and operational costs, make the provisioning of resources easier, increase warfighter productivity, increase the efficiency of Development and Operations (DevOps), increase security and provide greater portability of old applications by allowing them to be run on virtual machines (VM) rather than the current out dated hardware. The path forward is that DEVCOM AvMC SRD should support (or continue supporting) its customers with their mission requirements. Failing to execute these projects and address the needs of SRD’s components (i.e., UH-60, etc.) or FVL will be more efficient and increase fleet readiness.

Additive Manufacturing for Future Vertical Lift

– TDD Cong Add

$9.7M 24 April (pending increase of ceiling)

The effort will develop a data driven assessment and machine qualification process for Laser Powder Bed Fusion Additive Manufacturing.

Additionally, the effort will develop a digital file qualification process, for Computer-Aided Design to Laser Powder Bed Fusion workflow, to produce Future Vertical Lift relevant components.

Low Cost Missile Technology - TDD Cong Add

$9M 23 September The purpose of the Low Cost Missile Tech Development effort is to enable rapid development of advanced/affordable missile technologies to deliver flexible/evolving capabilities to defeat future threats by developing an innovation framework to connect universities, national manufacturing institutes, and technology innovation businesses with prime contractors.

Additionally, the effort will investigate digital transformation and additive manufacturing solutions: low-cost missile solutions; combined electronic package; signal and power transmission;

low cost, scalable control actuation system;

commercial seeker innovation; seeker manufacturing and test; and digital twin of a Mach 5 wind tunnel

PIF Internal Projects

$800K 24 April (pending increase of ceiling)

These projects will be various rapid manufacturing prototype programs to benefit both legacy and future army aviation and missile platforms based on customer need. These programs range from but are not limited to additive manufacturing, composites, and digital engineering.

4123 Advanced Manufacturing Workforce Development

$500K 24 March Investment would expand middle and high school level advanced manufacturing centric curriculum, aimed at carrying the student from introductory/exploratory level topics to more advanced studies (to include real world, AvMC relevant hands-on application and demonstrations). AvMC has identified several of these technologies as key to 1) existing customer requirements (hypersonics), or 2) emerging areas of interest, needing further establishment (digital engineering). For future support of Army modernization and readiness mandates, the AvMC will need to continue sourcing top-tier talent from across the country - the proposed growth of the existing AvMC partnerships with K-12 enables the organization to not only cultivate tomorrow's scientific and engineering expertise but does so locally. Undertaking this effort would ensure the Army and AvMC's technology needs are kept at the forefront of educators as they equip tomorrow's engineers and scientists.

4123 Manufacturing Training

$200K 24 March This effort will provide multiple sessions of in-person and online training and provide real-time experience for members of the AvMC workforce.

These classes include a basic overview of traditional manufacturing processes with some hands on aspects as well.

PIF Internal Projects

$500K 24 April These will be various manufacturing prototype programs to benefit both legacy and future army aviation and missile platforms based on customer need. These programs range from but are not limited to additive manufacturing, composites, and digital engineering.

These projects will need to be awarded in a timely manner. If this action is not awarded as stated in this J&A, there could be a service interruption resulting from issuing a new contract. There are several high dollar value/ high visibility tasks being executed/planned on this contract in support of at least three of the six Army modernization priorities – long range precision fires, next generation combat vehicles, future vertical lift, network, air and missile defense, and Soldier lethality. Relevant examples and their area of priority and the impact of service interruption/ non-availability are listed below:

Priority: The Future Vertical Lift (FVL)

Project: Additive Manufacturing for Future Vertical Lift – Implementation of advanced manufacturing methods and techniques (including additive manufacturing, hybrid manufacturing, ruggedized hybrid manufacturing in-theater) in FVL technologies including US Army future attack reconnaissance aircraft and future long-range assault aircraft.

Impact: Degradation of joint force mission effectiveness in the transregional multidomain and multifunctional threat environment.

Priority: Air and Missile Defense

Project: Liquid Hydrogen Energy Refueling Phase II – Continuation of current program to expand use of non-traditional fuel sources and the ground support equipment for Army unmanned aerial vehicles.

Contract Support: Identify, evaluate, mature, and demonstrate the necessary advanced manufacturing technologies and techniques required to manufacture autonomous liquid hydrogen refueling systems. The contract will also validate manufacturing process improvement through the manufacture and demonstration of production representative liquid hydrogen autonomous refueling systems, modified platform payload/sensor capabilities, and overall system operational testing. ($9M)

Impact: Phase II of the Liquid Hydrogen Energy Refueling project will halt, and the a low-cost, rapidly deployable, secure, mobile communications network that is being developed will cease advancement.

Project: Materials, Manufacturing, and Machine learning for Hypersonics in extreme environments – Research for developing manufacturing methods to build affordable hypersonic platforms.

Contract Support: Define Key Performance Parameters, Benchmark Current State-of-the-Art, Perform Comparative Study, Integrate System Components and Processes, to develop a versatile physical vapor deposition (PVD) coating system for leading-edge structures that are commonly found on hypersonic vehicles.

($2M)

Impact: The US Army’s modernization in the area of Materials, Manufacturing, and Machine learning for Hypersonics will suffer if this technological advancement does not receive the required contract support.

Project: Solid Oxide Fuel Cell Development Phase II – Continuation of current program to expand the manufacturability of solid oxide fuel cells to reduce the size and increase the efficiency of auxiliary power units for tactical or traced vehicles and stationary power generation.

Contract Support: Manufacturing Assessments, Manufacturing Process Analysis and Development and Process Demonstrations, to produce a laboratory grade demonstration unit to meet the performance and Size Weight and Power (SWAP) requirements of battlefield-ready power units for the Army. ($9M)

Impact: Warfighter ability to maintain superiority on the battlefield to speed, range, agility, endurance and sustainability of the Army Air and Missile Defense systems.

Priority: Long Range Precision Fires

Project: Low-Cost Missile Development – Advanced manufacturing and technology innovation to design and develop low-cost missile solutions with a combined electronic package, optimized signal and power transmission, low-cost control actuation system, and evaluation of current commercial seekers for the US Army Long Range Precision Fires Technology.

Impact: provides the Army a strategic attack weapon system to defeat Anti- Access/Area Denial (A2/AD) capabilities, suppress adversary long-range fires, and engage other high payoff/time critical targets. The Army is working closely with the Navy in the development of the LRHW.

Priority: The U.S. Army’s Organic Industrial Base Modernization

Project: Provide immediate access to the required specialized expertise and commercial best practices as an interim solution to minimize risk as the Army continues to set conditions for the long-term OIB Modernization Implementation strategy and evolution to Industry.

Contract Support: Facilities Management process analysis, Tooling and Process Optimization, Workforce Transformation training development, Operational Risk Analysis, Cyber Resilience with Risk Assessments, Energy and Climate subject matter expertise, Data Science / Analytics, development of a communications strategy and roadmap and provide recommendations. ($9M)

Impact: Inability to synchronize resources toward critical facilities and capabilities to build the necessary capacity to sustain the Army’s enduring and future systems.

DEVCOM AvMC SRD’s inability to address urgent and emerging customer needs, affecting equipment, processes and support, needed in U.S. involved areas of unrest because of a lack of contract availability will be detrimental to the warfighter. If these essential engineering, research, and development capabilities are not maintained, it will affect the readiness of the warfighter related to the Aviation and Missile Project Offices and our AMCOM Organic Industrial Base (OIB) Depots, because OIB Modernization training and Implementation for the Army OIB, Aviation and Missile weapons systems, equipment and process improvements for the Liquid Hydrogen Fueling Systems, Army’s Long Range Precision Fires (LRPF) and Future Vertical Lift enhancements will not be implemented. These consequences could cause functions to cease, missions to fail, and ultimately put lives in jeopardy.

6. Efforts to Obtain Competition:

a. Effective competition. Market research indicates that no other sources are available with the unique capabilities required to fully satisfy all requirements of the Performance Work Statement (PWS) for this contract. Two offerors responded (NCDMM and ) during the source selection for this SRD contract, and both are nonprofit institutions (See Paragraph 8 for more detail).

During evaluations of the two proposals, did not meet the requirements, and their proposal was deemed un-awardable by SRD’s evaluators. The requirement at FAR 5.201, Synopsis of Proposed Contract Action, is not required per the exception stated in FAR 5.202(a)(10) – “The proposed contract action is made under conditions described in 6.302-3…”, which is “Industrial mobilization; engineering, developmental, research capability; or expert services.”

b. Subcontracting competition. Significant subcontracting opportunities have been available for this contract, and the Government anticipates that will remain the case throughout the ordering period. NCDMM competes subcontracting opportunities IAW FAR Part 44, Subcontracting Policies and Procedures. All small business clauses required by FAR 19.7, The Small Business Subcontracting Program, are included in the contract. In support of achievement of the small business goals, the contractor is required to provide a subcontracting plan which has been approved and incorporated into the contract. Online Electronic Subcontracting Reporting System (ESRS) submission are required during contract performance to monitor and obtain metrics for subcontracting and associated competition.

7. Actions to Increase Competition: Pursuant to 10 U.S.C. 3204 (a)(3)(B) and FAR 6.302-3(a)(2)(ii), “full and open competition need not be provided for when it is necessary to award the contract to a particular source or sources in order . . . to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center.” There are currently no plans to compete this effort because NCDMM meets the statutory requirement of a nonprofit institution. However, once a new contract is needed, market research will be conducted to indicate if there are additional sources that may be able to submit a competitive proposal. The J&A will be made publicly available within 14 days after contract award and will remain posted for a minimum of 30 days. After the initial contract’s market research was conducted, a Sources Sought Notice was posted on 1 November 2019 to determine potential sources for the action. An updated set of market research was conducted in February 2023 for this request. Commercial firms were considered. However, due to potential data rights issues and conflicts of interest, commercial firms will not be suitable for performing this effort. Other agencies (such as the Air Force Research Laboratory - Materials and Manufacturing Division) were contacted and their PWS reviewed, and a series of online databases were searched to determine whether an existing contract vehicle exists that could satisfy the requirements of this effort. No other contract vehicle was found that had scope to cover the needed tasks. Federally Funded Research and Development Centers were considered as potential sources for this effort; however, while these centers possess the expertise in some technical areas, it is generally related to basic research supporting the Department of Energy. These efforts do not encompass all the specific technology areas needed for the various customers that will utilize this contract.

DEVCOM AvMC determined that a limited competition among educational or other non-profit entities used in the original competition was the best path forward. Section 5 discusses the rationale for this determination.

8. Market Research: In accordance with FAR 10.001, market research was conducted for this acquisition by members of the DEVCOM AvMC SRD, MET Division during the months of February 2023 through March 2023 as documented in this section. Research methods included the following: (1) Personal knowledge in procuring supplies/services of this type; (2) Contact with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practice in this area of supplies/services; (3) Review of Government and/or commercial databases for relevant information; and (4) Other types of market research. The following sections detail the various forms of market research conducted in support of this action.

A Sources Sought Notice that included the PWS was posted to the Government Point of Entry (GPE) at SAM.gov the week of 22 May 2023 through 26 May 2023. No other educational or non-profit institutions responded. The Contracting Officer sent an inquiry to the current contractor on 20 March 2023 to assess their capacity to accommodate the proposed increase in task orders and workload. They affirmed their willingness and ability to support the increased workload on 21 March 2023.

a. Contact with Knowledgeable POCs. Between February 2023 and March 2023 knowledgeable government persons were contacted to inform the market research.

None of those contacted were aware of another contracting vehicle that could perform all of the needed tasks. The following POCs were contacted:

• Charles Taylor, Electronics Engineer FCDD-AMR-ST USARMY

DEVCOM AvMC - MARCH 2023

In March 2023, Charles Taylor, a General Engineer with PWS access to an existing AvMC contract with Georgia Tech Research Institute (GTRI), which is a designated DoD University Affiliated Research Center (UARC) was interviewed.

When asked, Charles provided a copy of and discussion about the GTRI PWS. It was determined that the following Government IDIQ PWS requirements could not be met by the existing contract with GTRI:

3.2.4 Implementation of Manufacturing Solutions

3.2.5 Technology Transition of Manufacturing Solutions

3.3 Industry Training and Outreach

• Jason Duffy, Electronics Engineer ARMY-AFC USARMY FUTURES

COMMAND- MARCH 2023

On March 2023, Jason Duffy, the Deputy Program Manager of the existing AvMC Army Aviation and Missile Technology Consortium (AMTC) Other Transaction Agreement/Authority (OTA) was interviewed. When asked, Jason provided a copy of and discussion about the AMTC OTA. It was determined that the following Government IDIQ PWS requirements could not be met by the existing contract with AMTC OTA:

3.2.4 Implementation of Manufacturing Solutions

3.2.5 Technology Transition of Manufacturing Solutions

3.3 Industry Training and Outreach

b. Review of Government and Commercial Databases. In March 2023, The Contracting Officer Representative (COR) searched a series of online databases to look for similar and current contract vehicles that may have some applicability. None of the search results provided a viable existing contracting vehicle. The following databases were used for the search:

• System for Award Management (SAM) - https://sam.gov

• General Services Administration (GSA) -https://www.gsaelibrary.gsa.gov/ElibMain/home.do

• AMT - The Association For Manufacturing Technology-https://www.amtonline.org/

• Federal Procurement Data System (FPDS) -https://www.fpds.gov/fpdsng_cms/index.php/en/

• Defense Information System Agency (DISA) - https://www.ditco.disa.mil/

c. The results of these searches revealed two distinct types of potential sources:

Junior Colleges and Universities. These institutions exist to train students and are not equipped to meet the technical and program management requirements of DEVCOM AvMC. Some of the organizations offered workforce development courses but these classes also did not appear to address the technical and program management requirements of DEVCOM AvMC.

Manufacturing Industry. A search of the Thomasnet previously known as Thomas Register search under “Manufacturing Consulting Services” found no companies with the background, industry partners, varied machining and manufacturing experience, equipment, and technicians required to perform project management, manufacturing and machining product development, testing and evaluation of DoD weapon system components and systems manufacturing issues found in the Government PWS.

A separate search under “Defense Manufacturing Machining Project Management”.

found two results: General Tool Company (GTC) and MultiSource Manufacturing LLC. GTC does not have the requisite experience regarding U.S. Army Aviation and Missile platforms. MultiSource Manufacturing LLC was not suited to support the needs of multiple Aviation and Missile platforms.

The market research conducted supports the conclusion that educational or other non-profit institutions are best suited to satisfy the needs of the Government’s requirement when factors such as data rights and potential conflicts of interest are considered.

Based upon market research, this requirement cannot be met by commercial items, and the Government is not using the policies contained in FAR Part 12, Acquisition of Commercial Products and Commercial Services.

9. Interested Sources: Using the same authority cited for this ceiling increase action (FAR 6.302-3(a)(2)(ii)), a Sources Sought Notice was posted on FedBizOpps in November 2019, to determine if additional entities existed which could address the required manufacturing technology tasks outlined in the PWS. As discussed in section 8, only two of the respondents, NCDMM and ATI were determined to be viable sources to submit proposals.

NCDMM was the successful Offeror. During evaluations of the two proposals, ATI did not meet the requirements, and their proposal was deemed un-awardable by SRD’s evaluators. The FAR 5.201, Synopses of Proposed Contract Actions, notice is not required per the exception stated in FAR 5.202(a)(10) – “The proposed contract action is made under conditions described in 6.302-3…”, which is “Industrial mobilization; engineering, developmental, research capability; or expert services.”

10. Other Facts:

a) Procurement history. The NCDMM has been conducting business in Latrobe, Pennsylvania since 2003 and Blairsville, Pennsylvania since 2012 under congressionally directed and internally generated funding through the MET organization. NCDMM operates as a non-profit 501(C)(3) entity and the personnel currently employed have years of experience running the operation. The first contractual vehicle used was a GSA contract through the Veterans Administration to contract with AT&T Government Solutions as the prime, who then subcontracted with the NCDMM. In an effort to reduce the fees associated with this method of contracting by utilizing the DEVCOM AvMC acquisition system, the DEVCOM AvMC has contracted directly to the NCDMM for the past 16 years.

NCDMM is currently working under contract W31P4Q-21-D-0026 awarded 29 September 2021 under limited competition, using the authority of FAR 6.302-3(a)(2)(ii) to limit competition to nonprofit or educational institutions as a CPFF IDIQ with a ceiling of $69,771,368.

NCDMM completed work under contract W31P4Q-15-D-0043 awarded 16 April 2015, on a sole source basis using the authority of FAR 6.302-3(a)(2)(ii), as a five-year FFP/CPFF IDIQ contract with a ceiling of $77M. On 14 June 2013 , a J&A was prepared for the contract W31P4Q15D0043 using the authority to sole source to NCDMM. For the follow-on to this contract, the Government decided then to limit competition to non-profits. Two proposals were submitted and only one was deemed awardable.

NCDMM completed work under contract W31P4Q-08-D-0047 awarded 10 September 2008, on a sole source basis using the authority of FAR 6.302-3(a)(2)(ii), as a five-year FFP/CPFF IDIQ contract with a $76.6M ceiling. The contract included fifty-nine (59) task orders which have all been completed.

NCDMM completed work under contract W31P4Q-05-D-R003 awarded 22 July 2005, on a sole source basis using the authority of FAR 6.302-3(a)(2)(ii), as a five-year FFP/CPFF IDIQ contract with a $24.3M ceiling. The contract included fourteen (14) task orders which have all been completed.

NCDMM was previously awarded a nine-month DEVCOM AvMC Purchase Order (PO) W31P4Q-04-P-R103 in 2004 for ceramic machining tasks. The PO amount was $99K.

This effort was awarded sole source to NCDMM under the authority of FAR 6.302- 3(a)(2)(ii).

NCDMM was a subcontractor under GSA contract GS-23F- 0018K, BPA 549-00-6, D/O

228. The basic contract action was completed on 28 February 2003 in the amount of $1,334,000. Modification 5 to this contract was also awarded to NCDMM in the amount of $2,765,347. The PO numbers from the prime contractor (AT&T Government Solutions) to the NCDMM were PO S000000149 and PO S000000474 respectively.

b) As stated in Paragraph 2, the contract is approaching its ceiling at a rate far greater than anticipated. There has been an increased number of AvMC MET project proposals funded by multi-million dollar Congressional adds/plus-ups that were not anticipated at the time of award. There is no way to anticipate how Congress will direct funding. There has also been an increase in contractor/subcontractor costs, especially in the areas of equipment, due to inflation, supply chain issues, surging demand, production costs, and worker shortages.