JA-Stryker STTE Containerization FINAL - Redaction - SAM.pdf

Control No: CMO #2022-021

Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Army Contracting Command-Detroit Arsenal (ACC-

DTA)

2. Description of Action: ACC-DTA proposes to award a new, five-year Firm- Fixed-Price Indefinite Delivery Indefinite Quantity (IDIQ) contract to BOH FPU Systems, a division of Boh Environmental, LLC (BOH) (CAGE:1NSG3) utilizing Wheeled and Tracked Combat Vehicles (WTCV) funds.

3. Description of Supplies/Services: Special Tools and Test Equipment (STTE) have expanded the footprint of Stryker Maintenance Units, which in turn, creates a challenge to account for, locate, transport, store and access tools to effect timely repair on the battlefield. In order to reduce cost and increase efficiency, the USG proposes an acquisition of 2 variations of containers; 20 foot (FPU-20-3) (MODIFIED) (NSN: N/A) (P/N 15510023-001) and 8 foot (FPU-8-4) (NSN:

N/A) (P/N 15000804-001) outfitted with internal storage aids that include, modular cabinets, drawers, tie down rings, and a palletized vertical racking designed specifically for the Stryker STTE container system. The minimum and maximum quantities for this IDIQ are set for an estimated quantity of 7 and 154 each 20 foot, and 5 and 59 each 8 foot containers each outfitted with internal storage aids. The total estimated max value of this contract is $18,743,683.00.

The estimate for this action is based on an Independent Government Cost Estimate (IGCE) dated 22 SEP 2021.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is: 10 United States Code (U.S.C.) 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2), “When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

5. Reason for Authority Cited: During the initial planning phase of STTE Containerization, the USG performed proof of concept exercises utilizing multiple container configurations at Joint Base Lewis McCord (JBLM). It was determined that BOH currently offers the only container solutions with multiple key unique features in the appropriate container sizes. As outlined by Stryker Brigade Combat Team (SBCT) engineers, both the 20 foot (FPU-20-3) (MODIFIED) (NSN: N/A) (P/N 15510023-001) and 8 foot (FPU-8-4) (NSN: N/A) (P/N 15000804-001) containers include access doors on both sides of the container.

Since the STTE Storage Systems will likely be fielded in areas with minimal space and multiple containers utilized in the same area, multiple access points are essential for easy accessibility to this important STTE equipment. Without multiple access points it is likely that entry to one or more containers could become blocked limiting usability of the system. Another feature is a built in bail bar which is required for ground lifting and transport by a Heavy Expanded Mobility Tactical Truck (HEMTT) for Palletized Loading System (PLS) applications in addition to a Palletized System Trailer without the need for flat rack. This allows for the units to transport STTE to the required location. These key features make the FPU-20-3 for 20 foot variation and FPU-8-4 for 8 foot variation STTE Storage Systems essential to meet the USG requirement.

Furthermore, after the proof of concept exercise conducted by SBCT engineers and Logistics experts, the USG designed the placement of interior storage components to ensure compatibility within the aforementioned BOH Containers.

This interior configuration, as outlined within the Government developed Bill of Materials (BOM) and "picture book", includes components such as shelves, tie downs, nets, racks, drawers, access ladders, foam cutouts, hard shell cases, which will be used to organize and manage the STTE in the most efficient and effective way possible. The STTE interior components would need to be reconfigured in order to ensure compatibility any other container manufacture’s interior footprint.

BOH has exclusive intellectual property rights to the container exterior. The Government asked BOH if they were willing to sell their Technical Data Package for the container(s), which they declined on 11 MAR 2022. The Government does not have the pertinent technical data to enable competitive re-procurement.

Currently, BOH is the only source that manufactures the containers to meet exterior requirements. On 04 January 2022, the BOH’s Business Development Vice President and Contracts Director met with the PCO and Contract Specialist to discuss BOH’s distribution strategy. BOH does not have any distribution agreements with other entities in place.

The proprietary BOH designed container meets requirements specific to the USG’s intended function for the STTE system. As the specific interior configuration is designed within the BOH container footprint, other currently available vendor container options do not meet the requirement and would need to be reengineered, tested and would need to go through a re-verification of concept, causing an unnecessary delay to the USG. As shown in Table 1 below, a contract award for STTE Containerization would take approximately 43 months to award and field if competitive procedures were pursued:

a. In order for the Government to pursue competitive procurement, it would first need to develop and release a Request for Information (RFI) that would outline industry interest and ability to develop a container system. This would take 15 days to develop, and be posted on SAM at a minimum of 30 days, along with 15 days to review. This is based on procurements with similar complexity.

b. Developing the required Performance Specifications would be, at a minimum, a 7 month process to complete. This process would include conducting a comprehensive design review of STTE and the requirement needed, reverse engineering the current container capability in order to support the performance specifications, development and submission of a test plan for approval, and production/release of the performance specifications. This estimate was derived from prior performance specification development within SBCT for similar items.

c. Historically, ACC has seen that procurements of similar complexity have taken at least 6 months to develop a solicitation, post a Request for Proposal (RFP), evaluate offers, and award a contract.

d. Once a Performance Specification is developed, the contract would be awarded based off that Performance Specification. A new manufacturer’s prototype asset would then need to be developed, received, inventoried, and tested by the Government to ensure that the new container meets the Government requirement. This timeline developed in coordination with PM- SBCT engineers is inclusive of the following events: receiving the asset, validation testing, configuration of interior and foam inserts, verification, provisioning, TM Authentication, Basis of Issue Plan (BOIP), Line Item Number (LIN) Assignment, Type Classification, AESIPS/LDPS certification.

There are 15 months of SBCT Logistics Engineering activities and production

Event Sole Source Cumulative Months Competitive Cumulative Months Milestone Schedule to Develop a Performance Specification and Award a Contract to Another Vendor Begin competitive procurement package N/A N/A March 2022 1 Prepare and Release RFI N/A N/A April 2022 2 Develop Performance Specification* N/A N/A September 2022 7 Justification and Approval (J&A) signed March 2022 1 N/A N/A Finalize Sole Source Procurement Package April 2022 2 N/A N/A Complete Competitive Procurement Package, Finalize Evaluation Factors N/A N/A July 2023 17 Solicitation Release April 2022 2 August 2023 18 Receipt of Proposals June 2022 3 October 2023 20 Negotiations/Source Selection Evaluation Board Complete August 2022 5 December 2023 22 ATTLA Certification September 2022 6 January 2024 23 Contract Award October 2022 7 June 2024 28 Post Contract Award Schedule for STTE Containerization Receive Asset and Inventory N/A August 2024 30 Log Engineering Testing, Validation, and Certification Process** N/A July 2025 40 STTE Containerization Fielding January 2023 10 October 2025 43

Table 1: Milestone Schedule for STTE Containerization lead time that would be required post contract award before STTE Containerization fielding would commence. This estimate is based on the testing and fielding current container approval as provided by SBCT engineers. **see Table 1.

In order for successful fieldings to occur beyond JAN 2023, STTE Containerization is required. A further delay in contract award would lead to significant reduction in mission capability and efficiency for SBCT and would further risk STTE becoming disorganized, ultimately causing valuable items to be misplaced, damaged, and/or destroyed. As a result of lost or damaged tooling, soldiers will be unable to service Stryker vehicles in a timely manner, affecting readiness and mission requirements. Certain SBCT units have been fielded without the STTE Container System which has led to lost accountability of STTE, as there is no dedicated storage. Any further delay in a contract award would exasperate this problem since there are already SBCT units who are awaiting STTE containerization for fielded units.

6. Efforts to Obtain Competition:

a. For the reasons stated above, effective competition is not anticipated for this acquisition. However, this acquisition will be synopsized at the SAM.gov website as required by FAR 5.201, which allows firms the opportunity to identify their interest and capability to respond to the requirement or submit proposals.

Any responses received from responsible sources will be considered.

b. Subcontracting competition: At the subcontract level, BOH, will be required to select subcontractors on a competitive basis to the maximum practical extent consistent with FAR clause 52.244-5, Competition in Subcontracting. This action will be synopsized and the prime contractor will be required to submit a subcontracting plan. It will be evaluated and BOH’s goals will be negotiated, if necessary. Additionally, the solicitation and resulting contract will also include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.219- 16, "Liquidated Damages--Subcontracting Plan"; and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: At this time, the Government does not have any further plans to execute future requirements that are not stated within this document. This procurement will outfit the 9 SBCT Brigades as outlined within the Government requirement.

8. Market Research: A sources Sought Notice was posted and market research was conducted for this action.

a. The Contract Specialist issued a Sources Sought Notice on the SAM.gov website with a closing date of 07 January 2022. Three contractors responded with capability statements, which were reviewed and concurred on by SBCT and ACC-DTA contracting professionals. The responses are as follows:

1. Boh Environmental, LLC (Large Business), does meet the requirement:

BOH’s FPU-8 Series 4 container is currently not Air Transportability Test Loading Activity (ATTLA) certified. As other BOH FPU-8 Series containers meet this certification, BOH is pursuing the said certification and it will be met prior to any contract award.

2. HDT Expeditionary Systems, Inc. (Large Business), does not meet the requirement due to the following:

While this contractor currently offers an 8 x 8 x 20 foot container, they do not currently offer an 8 x 8 x 8 foot container, as outlined within the BOM. They currently produce an 8 x 8 x 6.6 foot container. While they do offer similar sized configurations, and it is reasonable to presume that this contractor has the capability to construct the size required, the impact of using this contractor would incur additional performance specification engineering and delay the production.

This would cause a delay in contract award, which in turn would cause harm to the solider and unsuccessful STTE fieldings beyond JAN 2023. This will lead to STTE becoming lost or damaged. This lost or damaged STTE hinders the soldier’s ability to service Stryker vehicles in a timely manner, effecting readiness and mission requirements.

3. Patriot Products, LLC. (Small Business), does not meet the requirement due to the following:

Although this contractor outlined their engineering expertise, containerization is not their core competency. The contractor expressed their capabilities to redesign other Commercial off the Self or Original Equipment Manufacturer containers in order to meet the specific interior configuration, implying that they do not currently manufacture their own containers, nor have any readily available in the configuration SBCT requires . This would require performance specifications to be developed, as outlined within Table 1. In order for successful fielding of future STTE to occur beyond JAN 2023, there cannot be a delay in contract award. The process of developing, reengineering, and obtaining a revised proof of concept required for using this firm, would cause a delay in fielding STTE containers. This would cause a reduction in capability and efficiency for SBCT fielding, along with an increase in risk STTE becoming lost or damaged. This lost or damaged STTE hinder the soldier’s ability to service

Stryker vehicles in a timely manner, affecting readiness and mission requirements.

b. Market Research, which began in FY20 and has been an ongoing effort, was conducted IAW FAR Part 10.002(b)(2) for this acquisition. SBCT Program Management Engineers and ACC-DTA contracting personnel used techniques including contacting knowledgeable individuals in Government and industry regarding market capabilities. Based on the knowledge obtained by PM SBCT Log Engineers, any company other than BOH would not be able to manufacture suitable container systems and have them validated within the time constraints listed above. A sole source award to BOH can meet the schedule requirement because this design has already been validated by the USG and is field ready.

9. Interested Sources: To date, besides the three contractors listed above, only one additional source expressed interest in this procurement (7 STAR INDUSTRIES, LLC). This contractor failed to provide key details regarding their capabilities or intent. This includes failing to show any current container systems they offer with any of the required features, certifications, or capabilities. All notices required by FAR 5.201 will be published, as appropriate, in conjunction with this acquisition and any proposals will be considered.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history: This is the first time SBCT has purchased these items, and this is intended as a onetime buy.

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.

Typed Name: Cynthia Macheske Date: 23 Mar 22

Title: Product Support Mgr, PM SBCT Signature: //s//

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.

Typed Name: William R. Venable Date: 4 APR 22

Title: Project Manager, SBCT Signature: //signed//

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Provide the basis for this determination (e.g., describe techniques to be used to determine fair and reasonable price, such as cost analysis, price analysis, audit, should cost, independent Government estimate, etc.). As part of this basis, indicate whether certified cost or pricing data will be required or if one of the exceptions in FAR 15.403 will apply.

Typed Name: Vincent S. DiSanto Date: 2022 APR 06

Title: Procuring Contracting Officer Signature: //signed//vsd//

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement:

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

Typed Name: Vincent S. DiSanto Date: 2022 APR 06

Title: Procuring Contracting Officer Signature: //signed//vsd//

Approval

Based on the foregoing justification, and as Senior Contracting Official pursuant to Army Materiel Command Head of the Contracting Activity Delegation of Authority #18-52, I hereby approve the procurement of STTE Containerization on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. This approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The total estimated value of this action is $18.7M.

X Daniel J. Gallagher ACC-DTA Executive Director

I