JA - MRC Production_13 November 2024 - Redacted.pdf

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Attached to
Mid Range Capability (MRC) Production Federal contract opportunity
Solicitation number
W31P4Q24R0038
Issued by
Department of the Army Materiel Command Contracting Command Redstone Arsenal

About this file

This is a Justification and Approval (J&A) document for other than full and open competition for the procurement of Mid-Range Capability (MRC) Ground Support Equipment (GSE) Production. The Department of the Army, Army Contracting Command - Redstone Arsenal plans to award a Cost-Plus-Fixed-Fee (CPFF) sole source contract to Lockheed Martin Corporation (LMC) Rotary and Mission Systems for a fifth MRC battery consisting of four launchers, one Battery Operations Center, one Battery Support Vehicle, and one Reload Trailer, with potential for additional GSE procurement as priced options.

The contract has a three-year base period covering FY25-FY27 and includes potential options for Institutional Training Base equipment. LMC RMS is deemed the only capable source as they are the original equipment manufacturer of the AEGIS Weapon System used in the MRC. A Sources Sought Notice was issued on March 26, 2024 with no responses received by the April 16, 2024 closing date. The contract leverages Navy technology, specifically the MK-41 Vertical Launching System modified for land-based applications. Previous related contracts include an 18-month CPFF contract (HQ072719F1103) awarded by SCO in April 2019 and an 86-month OTAP contract (W50RAJ2190001) awarded by RCCTO in November 2020 for the first four prototype batteries.

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CUI//SP-PROCURE

Solicitation Number: W31P4Q-24-R-0038

Control Number: PF-J&A24-1907

4. Authority Cited Permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is Title 10 U.S.C. 3204(a)(1), as implemented by FAR Part 6.302-1(a)(2)(ii)(A) and (B) – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

Pursuant to FAR 6.302-1(a)(2)(ii)(A) and (B). LM RMS is the only source capable of producing the MRC Weapon System.

a. AEGIS Weapon System (AWS)

i. MRC uses the Navy’s AEGIS Weapon System (AWS) Command and Control (C2) system located in the Battery Operations Center (BOC). This system provides the warfighter coordination, tracking and execution of missile guidance. The AWS controls both Navy Missiles SM-6 and Tomahawk through communication relay to the Vertical Launching System (MRC Launcher).

ii. LMC RMS, as the AWS original equipment manufacturer (OEM), developer, and System Integrator is the only responsible source capable of satisfying MRC’s requirement to modify the AWS and ancillary equipment for its land-based application. The Government does not own the complete Technical Data Packages (TDPs) for these systems, including testing and integration procedures, which would be required to compete subsections of this requirement. As set forth above, LMC RMS is the only responsible source capable of producing and delivering a fifth battery by the initial delivery need date of 30 June 2028. Award to any other source would result in a substantial duplication of non-recurring cost based on historical cost data, which is estimated at This estimated cost includes for flight tests, for Battery 1 Contractor Logistics Services (CLS), New Equipment Training (NET) and n Technology Insertions (TI). The Government does not expect to recover this estimated non-recurring cost through competition.

Additionally, any other source would take at least five years before they can start production, resulting in unacceptable schedule delays and missing required fielding dates to provide this critical capability for the Army. No other vendor is currently positioned to produce the items, to make up their significantly increased non-recurring start-up costs at this time. However, the Army, will reconsider the feasibility and benefits of further competition in establishing their acquisition plan for the MRC program going forward for future procurement and production efforts.

b. MRC Launcher

Control Number: PF-J&A24-1907

CUI//SP-PROCURE

i. MRC uses leveraged technology of below deck missile launcher system developed for Navy ships, called the MK-41 Vertical Launching System (VLS).

The MK-41 Launcher is modified to fit on a custom trailer, along with multiple ancillary support hardware and electronics. The electronics support communication between AWS BOC, Launcher and Missile. With the modification of the trailer this system allows the Army to deploy a capability not previously seen in ground combat systems.

ii. From its initial deployment on Navy ships in 1986, Lockheed has owned the full technical data for this launcher. For this reason, the Government cannot breakout specific areas of the MRC launcher for competition to compete this part of the requirement. MRC’s effective use of leveraged technologies allowed the first prototype to be fielded in three years. This approach has also increased dependency on the Navy’s Acquisition Strategy of its systems and sub-systems.

As set forth above, LMC RMS is the only responsible source capable of producing and delivering additional MRC GSE by the need date of 3rd QTR FY28. An award to any other source would result in an additional five year lead time before they can start production, resulting in unacceptable schedule delays and missing required fielding dates to provide this critical capability for the Army. Doing so, would also result in a substantial duplication of non-recurring cost based on historical cost data, which is estimated to exceed This estimated cost includes everything to develop, produce and field to date Batteries 2 through 4 (Battery 2 , Battery 2 Spares $ Battery 2 CLS & NET $ , Battery 3 , and Battery 4

6. Efforts to Obtain Competition:

a. Effective Competition: For the reasons cited in paragraphs 5a and 5b above, competition is not anticipated for this action. LMC RMS is the only responsible source capable of providing the engineering and production efforts required within the required Period of Performance (PoP) to meet delivery requirements.

b. In accordance with (IAW) FAR 6.302-1 and FAR 6.303, the Government issued a Sources Sought Notice (SSN) to SAM.gov on 26 March 2024 to determine interest in the requirement and provide the opportunity for interested parties to provide capability statements in response. The SSN closed on 16 April 2024 with no responses. IAW FAR 5.201, Synopses of Proposed Contract Actions, ACC-RSA plans to issue a public synopsis on or about 2 December 2024.

c. Subcontracting Competition: LMC RMS participates in the Small Business Comprehensive Subcontracting Test Program Agreement, under the Department of Defense (DoD) Test Program, as described in Defense Federal Acquisition Regulation Supplement (DFARS) 219.7, Small Business Programs. LM RMS is required to submit an approved Small Business Subcontracting Plan in accordance

Control Number: PF-J&A24-1907

An Office of the Secretary of Defense (OSD) Strategic Capabilities Office (SCO) effort was awarded to LMC RMS on a competitive basis under the Defense Microelectronics Activity (DMEA) Advanced Technology Support Program IV (ATSP4) Multiple Award / Indefinite Delivery Indefinite Quantity (MA/IDIQ) contract (HQ072719F1103). The task order leveraged LM internal investments, without the value of and 1.5 years of development time would have been larger. In addition, LMC RMS demonstrated their capability in a timeframe that allowed MRC to meet the fielding requirements of 1QFY23. RCCTO briefed this approach to the Secretary of the Army (SA) on July 1, 2020, and received approval.

The Strategic Fires Study recommended a set of objective weapons to fill the Army's gap for an MRC. The Army gave the MRC mission to RCCTO with a mandate to deliver a residual combat MRC Prototype Missile System capability by 4QFY23.

Market research found an OSD SCO program, which addresses the MRC's full suite of requirements.

, former Senior Procurement Executive of the Army, signed the Determination and Finding to award on a sole source basis on 22 October 2020. The Army Rapid Capabilities and Critical Technologies Office (RCCTO) awarded a sole source MRC Prototypes Other Transactional Authority Prototype (OTAP), W50RAJ- 21-9-0001, to LMC RMS, on 06 November 2020. The scope of the MRC OTAP to develop MRC Prototype Batteries #1-4, New Equipment Training, Logistics Support, Initial Spares package. The PoP is up to eighty-six months (06 November 2020 to 06 January 2028).

File details come from the government source that posted it. Updated .