JA STS Extension (FY23-25) Final Redacted.pdf

CMO Control Number: 2022 - 083

Department of the Army

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: The United States Army Contracting Command-Detroit Arsenal (ACC-DTA) is the procuring activity for this action.

2. Description of Action: ACC-DTA proposes to award a modification to contract W56HZV-20-C-0072 with Canadian Commercial Corporation (CCC) to add 117,000 hours to the existing contract and to extend the three (3) year period of performance by two (2) years from 21 April 2023 to 20 April 2025. The contract will be subcontracted to General Dynamics Land Systems – Canada (GDLS-C) to continue providing services for the Family of Light Armored Vehicle (FoLAV). The funds utilized include: Foreign Military Sales (FMS) Saudi Arabia Management Office (SAMO) for the Kingdom of Saudi Arabia (KSA) Case SR-B-VTD Line 009, Saudi Arabia Ministry of the National Guard (MNG) FMS Case SI-B-WAW Line 008, United States Marine Corps (USMC) Operation and Maintenance (O&M), and other USMC funds depending on program requirements. The contract type for the proposed modification will be Cost-Plus-Fixed- Fee (CPFF), same as the existing contract.

3. Description of the Supply or Service Purchased: This modification will allow for critical System Technical Support and System Sustainment Technical Support (STS/SSTS) services for the FoLAV (all generations). The services to be procured will be further defined by individual work directives issued throughout the contract’s period of performance and could include any of the STS/SSTS services identified below.

Material and other direct costs (ODCs) may be procured under this contract. This contract will allow the Government to order up to 117,000 labor hours for the additional two (2) year contract period. The proposed effort includes the following STS/SSTS activities:

a. Systems Engineering Support

b. Reliability and Maintainability Support

c. Prototype Hardware/Software

d. Engineering Change Proposals

e. Hardware/Software Configuration Management

f. Technical Data Package (TDP) Maintenance

g. Integrated Logistics Support and Products

h. Product Improvements

i. Systems and Equipment Training

j. Field Failure Analysis

k. Obsolescence Reporting, Analysis, and Resolution

l. Electrical System Modification

m. Hull Analysis

n. Organic Precision Fires-Mounted

o. Technical Publications

The anticipated period of performance for this action is April 2023 through April 2025.

Based on the SWORD, MNG, and USMC Independent Government Cost Estimates (IGCE) obtained on 11 April 2022, 13 April 2022, and 11 April 2022, respectively, the total estimated cost for this procurement is $14,948,407 to include up to 117,000 labor hours, material, ODCs, and travel costs.

4. Authority Cited: The statutory authority permitting Other Than Full and Open Competition for this action is Title 10 United States Code (U.S.C.) 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(B), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements". Specifically, “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in- (B) Unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited: Award of this action on a sole source basis is justified because the services required cannot be procured from sources other than the FoLAV Original Equipment Manufacturer (OEM), GDLS-C. GDLS-C owns the technical data needed to complete the activities required under the proposed contract. GDLS-C is the only source capable of providing the system technical support services described herein without unacceptable delays attributable to learning.

a. Background: The USMC LAV fleet was initially acquired in 1982 and has been continuously sustained with upgrades and modifications to improve reliability, performance, survivability and to manage obsolescence. The programmed LAV life cycle runs through 2025, requiring ongoing sustainment support activities to maintain its viable war fighting capability. Through this STS contract, the FoLAV will undergo vehicle configuration upgrades to maintain or enhance vehicle configurations and reduce material obsolescence for the USMC and SWORD fleets, through engineering and logistics services that only GDLS-C can provide.

The STS contract will provide the capability to rapidly incorporate necessary vehicle modifications to maintain system capabilities and enhance combat effectiveness for both legacy and new build LAVs. The need for continuous engineering and logistics support through an STS/SSTS contract is essential to maintain system readiness and availability. The current STS/SSTS effort is covered under W56HZV-17-C-0044 and expires in November 2019. The proposed contract will avoid a break in service.

To further investigate other opportunities for technical support, GDLS-C was sent an email on 12 April 2019 asking if GDLS-C was willing to sell the LAV Technical Data package (TDP). In response, GDLS-C stated that they are not willing to sell the proprietary FoLAV TDP. At this time, no other contractor would be able to provide system technical support for the USMC and SWORD Program without having access to the TDP. The Government sent out a secondary email asking if GDLS-C was willing to sell the LAV Technical Data Package on 27 July 2022. In response, GDLS-C stated they are not willing to sell the proprietary FoLAV TDP.

b. Unacceptable Delay: GDLS-C is the only source with the unique engineering and technical expertise required for the complex vehicle engineering tasks associated with the FoLAV. The proposed engineering effort requires a contractor with existing expertise and capabilities for the FoLAV to begin work without disruption to services previously provided. The contractor must possess the engineering expertise in relation to legacy and future vehicle configurations.

Contractors without prior system experience do not possess the historical or current technical knowledge of the various vehicles of GDLS-C. The development of the expertise required to perform this effort in a competent manner (learning curve) would require a minimum time period estimated to be at least 72 months. GDLS-C is the only source with the engineering expertise and capability of developing timely and accurate responses to issues arising on the LAV electrical system, turrets, and total system integration of all variants.

Event Competitive (months)

Contract Award based on Source Selection Evaluation Board (SSEB)

Technical Data Package (TDP)/Interface Control Drawing (ICD) Development

Logistics Development 3

Engineering Change Proposal (ECP) Development

First Article Test (FAT) Build 3

FAT Evaluation 3

Total 72

(i) SSEB: When requested, the Source Selection Advisory Council (SSAC) performs a comparative analysis of the SSEB's evaluation of each proposal. The SSAC then forwards a recommendation to the Source Selection Authority (SSA). With the above requirements it would be a lengthy process to review contractor proposals and the selection process would be approximately twelve (12) months.

This may take longer depending on the complexity of the requirements.

(ii) TDP/ICD Development: The LAV is composed of over 16,000 individual components that will require reverse engineering. Reverse engineering will take an estimated 48 months to complete. This estimate is due to the time it takes to reverse engineer each item and the ICD required for ECPs to be developed.

(iii) Logistics Development: The LAV is maintained through the use of over 200 Technical Manuals (TM) that cover the seven LAV variants. Developing and validating the logistics data that would be used to update the TMs would add three months to the effort and would be done concurrently to the TDP development.

(iv) ECP Development: It will take an additional three months to develop and process an ECP to the USG. This includes the time to implement an ECP process In Accordance with the PM LAV Configuration Plan that would allow the ECP to be added to the overall LAV Technical Data Package.

(v) FAT Build: It will take an additional three months to create the FAT Prototypes after the technical data is available from reverse engineering. This would include setting up a new supply chain for procurement.

(vi) FAT Evaluation: It will take an additional three months to complete validation.

This would include setting up new verification methods, documentation and facilities to conduct the validation activity. The Government conducts validation to ensure the contractor can operate the equipment and show it will perform in the way the Government expects. The contractor will be required to put the equipment into operation and operate it step by step to show it will meet performance expectations.

6. Efforts to Obtain Competition: For the reasons stated above, effective competition is not anticipated for this acquisition.

7. Actions to Increase Competition: The Government is taking no further action to increase competition at this time. Only GDLS-C has the knowledge and expertise necessary to satisfy these requirements. Although no further action to increase competition is contemplated at this time, the Government will continue to survey the marketplace and review our acquisition strategy should additional information be received. Any information received will be considered to determine if a competitive acquisition should be conducted or to determine potential future requirements.

8. Market Research: ACC-DTA and PM LAV originally issued a Sources Sought notice to MyBiz from 28 March 2019 through 11 April 2019, in accordance with FAR 10.002(b)(2). The Sources Sought notice included questions related to System Technical Support activities, from the products and services the entity provides in support of the description of the STS/SSTS requirements, to the length of time the firm(s) have been in existence, and finally asking if the entity has provided the services outlined to the USG. PM LAV continuously engages in collaborative interactions with industry, organic research and development staff, PM-LAV, Saudi Arabian Management

Office (SAMO) and MNG, in on-going efforts to glean competitive resources. At the time, GDLS-C was determined to be the only source capable to provide the services under the proposed justification.

Pursuant to FAR 10.002(b)(2) (i) and (ii), a market survey was issued 30 June 2022 through 20 July 2022, in the form of a Sources Sought Notice, to determine whether new sources are capable of performing the tasks currently included under the LAV STS/SSTS contract. General Dynamics Land Systems – Canada (GDLS-C) Inc., (GDLS-C) was the only firm to respond to the posting.

GDLS-C is the experienced OEM for the Light Armored Vehicles (LAVs), Related Hardware and Ancillary Services. GDLS-C has been providing Production and System Technical Support (STS). GDLS-C addressed every question in the sources sought questionnaire, and no deficiencies were noted. GDLS-C has provided, Related Hardware and Ancillary Services to the US Government for more than 15 years. The contractor is not willing to sell the technical data package as of 20 July 2022.

Summary of Market Research Findings:

Based on the results of the RFI, it was confirmed that GDLS-C continues to be the only vendor that possesses the experience and resources necessary to provide the services under this justification. No other firm is currently capable of providing the STS/SSTS required within the schedule requirements.

9. Interested Sources:

10. Other Facts: Procurement History: The following contracts are STS/SSTS for SWORD, MNG, and USMC and derivatives thereof.

1. Contract Numbers and Dates:

a) Contract W56HZV-11-C-0076

Contractor: GDLS-C, Inc.

Award Amount: $196,597.12 Date of Award: 18 February 2011 Requirement: The procurement of STS services in support of USMC and SANG FoLAV.

Competitive Status: Sole-Source basis

Authority: 10 USC 2304 (c)(1), FAR 6.302-1(a)(2)(ii) and (iii), “Only One Responsible Source.”

b) Contract: W56HZV-17-C-0044 Contractor: GDLS-C, Inc.

Award Amount: $1,209,130.19 Date of Award: 30 November 2016 Requirement: The procurement of STS services in support of USMC and SANG FoLAV.

Competitive Status: Sole-Source basis Authority: 10 USC 2304 (c)(1), FAR 6.302-1(a)(2)(ii) and (iii), “Only One Responsible Source.”

2. J&A History: A Justification and Approval (J&A) for Other Than Full and Open Competition was approved (GMO 14-089) on 07 October 2019 by the Senior Contracting Official for the award of contract W56HZV-20-C-0072, totaling $15.3.

3. No prior contract for this STS/SSTS requirement was accomplished using full and open competition. As noted in section 10.a.1, above, all previous contracts were awarded on a sole source basis using the authority 10 U.S.C 2304(c)(1) and FAR 6.302-1.

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

5. The circumstances justifying the previous J&A were based on the fact that only

GDLS-C has the engineering expertise and experienced personnel capable of developing timely and accurate responses to issues. GDLS-C is the developer, producer and current contractor for all technical services of the FoLAVs. GDLS-C has total system responsibility for the vehicle systems and provides overall configuration management and engineering support for subsystems. GDLS-C developed and maintains the only existing complete collection of technical information on the vehicles and major subsystems, including technical analysis, trade-off studies, and problem investigation reports. GDLS-C is also responsible for obsolescence planning and the timely replacement of hardware, software, and firmware as part of configuration control of the vehicle design. The circumstances justifying the previous sole source actions have not changed.

11. Technical Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

Printed Name: Joanne LaBelle Electronic Signature: //Joanne LaBelle

Title: Configuration Management Lead Date: August 4, 2022

12. Requirements Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

Printed Name: Dan Mazzola Electronic Signature: //Dan Mazzola

Title: APM-Engineering Date: August 4, 2022

13. Fair and Reasonable Cost Determination: I hereby determine the cost to the Government for this procurement action will be fair and reasonable. The basis for this determination is:

Printed Name: Richard Harris Electronic Signature: //signed-RH//

Title: Contracting Officer Date: 2022 Aug 10

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Printed Name: Richard Harris Electronic Signature: //signed-RH//

Title: Contracting Officer Date: 2022 Aug 10

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of up to 117,000 labor hours (two additional one-year ordering periods) of System Technical Support and System Sustainment Technical Support (STS/SSTS) services, plus incidental ancillary hardware and travel related expenses for the Family of Light Armored Vehicle (FoLAV).

This procurement will be awarded on an other than full and open competition basis pursuant to the authority of 10 USC 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.” It has an estimated cumulative value of $14,948,407., and is approved subject to the availability of funds, and provided the services herein described have otherwise been authorized for acquisition.

9/7/2022

X LaRuth Shepherd LaRuth Shepherd Competition Advocate Signed by: USA