JA MPF STS Follow On_Redacted.pdf

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 is the contracting activity responsible for this action.

2. Description of Action: ACC-DTA proposes to award a five-year contract to General Dynamics Land Systems (GDLS) for System Technical Support (STS) services to support the M10 Combat Vehicle, formerly known as the Mobile Protected Firepower (MPF) vehicle. The contract type is Indefinite Delivery, Indefinite Quantity with Cost- Plus-Fixed-Fee (CPFF) contract line item numbers for both Level of Effort (LOE) term and completion efforts. The period of performance is for five ordering years, starting in Fiscal Year (FY) 2024 through FY 2029. The contractor will be required to provide program management, engineering, logistics, and technical services. The minimum guaranteed value is $12,815,034 with a maximum ceiling of $291,646,844. The contract will be funded with Weapons and Tracked Combat Vehicle (WTCV) Procurement Appropriation, Research, Development, Test & Evaluation (RDT&E), and Operations and Maintenance, Army (OMA) funds. A CPFF contract is appropriate because the uncertain nature of the STS requirements makes it impractical to accurately predict a fixed-price proposal. The United States Government (USG) determined that the fixed fee and estimated costs on the contract will be determined fair and reasonable through cost and price evaluation in accordance with FAR 15.404-1, Proposal Analysis Techniques.

3. Description of Supplies/Services:

a. The purpose of this acquisition is to provide program management, engineering, technical, and logistical services to support both a currently awarded M10 Booker Low Rate Initial Production (LRIP) contract as well as a future planned M10 Booker Full Rate Production (FRP) contract. The services will be further defined by individual work directives issued throughout the five ordering years. The proposed effort includes the following STS activities:

Engineering support includes:

• Systems Engineering

• Reliability Engineering

• Cybersecurity

• Software Engineering

• Obsolescence Management

• Configuration Management

• Data Management

• Engineering Change Proposals and Process Engineering Changes

• Test support, including identification of Failure Modes and Mechanisms, System Validation/Testing, and Qualification Testing

• Quality Assurance and a Reliability and Maintainability Program

iii. Facilities/Capability Development for Logistics. There are two driving capabilities required to support M10 Booker STS logistics efforts. These are technical manuals transfer and platform training expertise.

(1) Technical Manuals Transfer

The M10 Booker is maintained through the use of 17 Operator and Field Maintenance Technical Manuals (TM) volumes covering a single M10 Booker variant. Development and validation of the logistics data, received from Logistics Demonstrations (Log Demo), Logistics Product Verification, Production Qualification Testing (PQT), and Initial Operation Test and Evaluation (IOTE), will feed any changes or errors discovered into the TMs for development of the Full Reproducible Copy (FRC). Transferring these TMs and the management of content to another vendor would require transferring all current documentation, establishing configuration control processes and procedures, and developing technical familiarity with the M10 Booker system. A new firm attempting to develop the logistics expertise to respond to the multitude of mechanical and electrical issues efficiently and effectively on the vehicle systems would have to learn numerous subsystems on the platform. In order for the new vendor to gain the expertise required, an additional 18-24 months will be required to hire instructors, train students, and have engineers support logistics product development; the estimated cost for this effort is $39.3M.

(2) Platform Training Expertise In order for a vendor to provide training materials and services, the vendor would require significant experience with the vehicle design, maintenance procedures, and training materials. Additionally, training materials would need to be updated to include validation of process, procedure, and effectiveness with the new vendor’s facilities. Much of vehicle platform expertise cost will be attributed to facilities leasing. The cost of leasing facilities was assumed to be $1.25M per year based on estimates of facilities used in programs for similar size and capabilities. With an estimated duration of at least 24 months, this facilities/capability development is estimated to cost in excess of $2.5M.

6. Efforts to Obtain Competition:

a. Effective Competition: For reasons stated in sections 5 and 8, ACC-DTA and PdM Booker do not anticipate effective competition for this acquisition beyond GDLS.

The USG is taking no further action to increase competition at this time and, therefore, this effort will be limited for competition to GDLS. Notices required by FAR 5.201, Synopsis of Proposed Contract Actions, will be published and any bids or proposals received shall be considered.

b. Subcontracting Competition: All appropriate Small Business Subcontracting clauses will be included in the solicitation and contract award.

7. Actions to Increase Competition: PdM Booker is currently pursuing two efforts to enable more competition for M10 Booker: TDP and CSP Data Rights Reviews and M10 Booker SIL Development.

a. TDP and CSP Data Rights Reviews. As part of the LRIP downselect, the USG encouraged GDLS to offer options for additional data rights. However, additional rights were not offered for referenced in Section 5 (i)(1). GDLS is not willing to sell the USG any additional data rights outside the rights offered in the LRIP/STS downselect proposal. GDLS is the only source that possesses the technical data and CSP and is capable of providing the broad range of engineering and logistics expertise to perform these varied and complex major weapon system requirements. Assuming GDLS’ delivery of the technical data package is , complete, and approved by the Government, the Government still will not have the necessary intellectual property data rights to the TDP and CSP to enable competitive re-procurement for the entirety of this STS effort. After the minimum guaranteed value has been reached, the USG will determine what potential STS requirements can be competed under the upcoming Program Executive Office (PEO) Enterprise Logistics services contract, on a case-by-case basis, prior to awarding under this GDLS sole source STS contract.

b. M10 Booker SIL Development. PdM Booker is exploring the opportunity to obtain the necessary hardware, software, and services required to build an M10 Booker SIL that will be owned by the USG. This SIL would be utilized as Government Furnished Property (GFP) under future procurements to increase competition.

8. Market Research: ACC-DTA posted a Sources Sought Market Survey for M10 Booker STS to SAM.Gov on 16 November 2022. The Market Survey aimed at obtaining information on industry capability and interest in performing M10 Booker STS efforts.

The Market Survey closed on 1 December 2022. Only GDLS responded.

The Market Survey asked interested sources to state the STS experience it has provided for the USG, such as test, engineering, and logistics support, facility clearance, and quality and STS program management support. GDLS’ response demonstrated that it is very capable of meeting the contract requirements. GDLS is the OEM of the M10 Booker vehicle and currently provides STS services for the Booker program. GDLS also has experience supporting other STS programs and projects across several ground combat vehicles.

Based upon the Market Research/Survey results and other information contained in this J&A, GDLS is the only respondent that has demonstrated the experience, technical data, and resources necessary to perform the requirements of the proposed contract.

The USG determined that an award to any firm other than GDLS is impractical and would result in unacceptable duplication of costs. No other firm is currently capable of performing the requirements required by this agency.

9. Interested Sources: To date, no other sources have expressed interest in this type of acquisition. The USG will evaluate any responses to the synopsis.

OPSEC Contractor Bid and Proposal Information

OPSEC Program Schedule below Summary Level

10. Other Facts:

a. Procurement History:

i. Contract W56HZV-19-C-0036 Hardware / Service: M10 Booker LRIP and System Technical Services

Contractor: General Dynamics Land System Award Amount: $1.14B Date of Award: 28 June 2022 Contract Expiration: LRIP – October 2026; STS Services – June 2024 Competitive Status: Competitive down-select Contract Type: Fixed-Priced Incentive Firm (FPIF), Firm-Fixed-Price (FFP), CPFF

ii. Competitive Status: Competitive down-select iii.Sole Source Authority Cited: M10 Booker Middle Tier Acquisition (MTA): Full and Open; M10 Booker LRIP down-select: FAR 6.302-1(a)(2)(ii)(A) and FAR 6.302-1(a)(2)(iii)(A)

iv. Summary of the contents of paragraph 7 on previous justification: The USG may include option prices for Intellectual Property (IP) license rights to technical data and computer software deliverables. The USG will consider these rights as a factor in the down-select to use, modify, reproduce, release, perform, display, or disclose acquired information.

Explanation of results: The contract with GDLS included option prices for data and patent rights. GDLS assertions that are required to be addressed through purchase of data rights or reverse engineering. When GDLS delivers the M10 Booker TDP to the USG the USG will begin analyzing the content of the TDP and vehicle software to determine the required efforts to alleviate any technical data rights concerns. Once quantified, PdM Booker needs to program funding and resources to conduct the necessary data rights negotiations and licensing and reverse engineering efforts needed to compete future requirements.

v. No prior contract for the STS requirement was accomplished using full and open competition.

vi.No unusual patterns were revealed by the procurement history.

vii. No significant changes to the M10 Booker program since the previous

J&A was signed on 25 August 2021.

a) Other facts: There are no other facts regarding limiting competition that were previously stated.

OPSEC Contractor Bid and Proposal Information

OPSEC Program Schedule below Summary Level