JA W56HZV22R0055 FSR Follow-On_Redacted.pdf

CMO Control Number:2022-072

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Detroit Arsenal, MI (ACC-DTA).

2. Description of Action: ACC-DTA proposes to award a new one-year Firm Fixed Price Level of Effort (FFP-LOE) commercial service contract to Cummins Incorporated, for the on-site Cummins V903 Engine Field Service Representative (FSR) technical support at three BAE systems production facilities (York, PA; Elgin, OK; Anniston, AL);

the Fielding site at Fort Stewart, GA; and the Government Material and Field Team (MFT) site at Fort Hood, TX, for diagnoses and repair of engine issues. The FSRs will be supporting Self Propelled Howitzer System (SPHS) and Bradley Fighting Vehicle Systems (BFVS) during vehicle production. This procurement will utilize Fiscal Year (FY) 22 Weapon Track Combat Vehicle (WTCV) funding.

3. Description of Supplies/Services: The services to be awarded under this new contract include on-site V903 engine FSRs at three vehicle production facilities (at York, Elgin and Anniston). FSR support will be provided as followed: 24 hours per week (3 FSRs x 24 per week) at York, PA and Anniston, AL; and 72 hours per month at Elgin, OK. Additionally, there will be FSRs for 40 hours/month or five (8 hour) days/month at both the Government MFT site at Fort Hood, Texas, and at the Fielding site at Fort Stewart, Georgia. This FSR technical support includes technical assistance, technical data collection and reporting, troubleshooting, and repairing V903 engines.

The total estimated value of this procurement is $3,366,923 which includes FSR labor hours, material, and other direct cost (ODC). The total estimated dollar amount of this action is based on an Independent Government Cost Estimate (IGCE) dated 24 May 2022.

Description IGCE

Material $

Labor $

Total $ *3,366,923

*Labor Overhead, Other Direct Charges (ODC), G&A, and Profit/Fee are included in the estimates

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is 10 United States Code (U.S.C.) 2304(c)(1), as implemented under Federal Acquisition Regulation (FAR) 13.5(a) Sole Source Acquisitions, “Simplified Procedures for certain Commercial Items”. This authority authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million.

5. Reason for Authority Cited:

a. This requirement cannot be satisfied through a full and open competition because the service is only available from one source who can satisfy the unique ability of providing Field Support Representative (FSR) Technical Support Services. The engines to be repaired under this follow-on effort were designed and developed by Cummins, Inc. who has retained control of essential design, manufacturing, and maintenance data. In addition to having access to this data, Cummins FSRs receive specialized V903 training through Cummins and must graduate prior to servicing V903 engines. This knowledge is critical to supporting the BAE production lines with GFM V903 engines, since any small problem turns into a Government delay. Cummins engines comes with an Industrial warranty. This warranty is central to the Government’s strategy for responding to V903 problems throughout the Production and Fielding process.

Since repairs and services are performed by an authorized Cummins FSR, the warranty stays intact should additional problems arise down the line. While the Government does pay Cummins for the time FSRs are on site, hours that the Cummins FSRs perform repairs that are covered under warranty are not billed to the United States Government (USG). Further, having engines repaired by a third party would introduce a second source for V903 engines – those to which the warranty applies and those for which it is voided – and these second source engines would have to be cataloged and tracked separately. This would reduce value and increase cost and confusion.

b. Origin of the requirement: Starting with the FY17 Paladin Integrated Management (PIM) production contract, engines transitioned from contractor furnished material (CFM) to government furnished material (GFM) which lead to a nonconformance report in January 2020. Since January 2020, the Government has received over 50 Government Furnished Material (GFM) Non- Conformance Reports (NCRs) for the last 95 Cummins V903 engines received at BAE Systems York, PA and Elgin, OK facilities. Additional BFVS now require the same FSR requirement services at Anniston, Alabama to support Bradley A4 productions.

Having on-site FSR support to quickly diagnose engine issues and repair engine failures would reduce the reoccurring financial and schedule burden to the Government that delays vehicle production, which directly impacts scheduled fielding to units and as a result, increases Soldiers’ vulnerability.

c. Quantity of services: Three Field Service Representatives (FSRs) at three vehicle production facilities, Additionally, an FSR is needed at the Government Material and Field Team (MFT) site for diagnoses and repair of engine issues. FSRs will be supporting Self Propelled Howitzer System (SPHS) and Bradley Fighting Vehicle Systems (BFVS) during vehicle production, diagnosing and repairing engine issues.

d.

6. Actions to Increase Competition: The Government is taking no further action to increase competition at this time. Only Cummins 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.

a. Effective competition: In accordance with FAR 5.201, this action will be synopsized on the SAM.gov web site. The synopsis will direct interested vendors to submit a statement of interest and description of their capabilities for consideration.

b. Subcontracting Competition: Cummins Incorporated, as a large business will be required to submit a subcontracting plan for Contracting Officer approval, prior to contract award. The contract will include clauses under FAR 52.244-5, “Competition in Subcontracting” and FAR 52.219-8, “Utilization of Small Business Concerns”.

7. Market Research: A Market Survey by ACC-DTA was published from 27 April 2022 to 9 May 2022 on SAM.gov, Request for Information (RFI) notice in which no responses were received.

8. Interested Sources: To date, no vendors have responded to the RFI. Cummins has the only known experience required to provide onsite FSR support to diagnose and repair the V903 engine and meet the need as noted in section 5.

9. Other Facts:

a) Procurement History: The below contract was awarded to Cummins in accordance with FAR 6.302-2(a)(2) “Unusual and Compelling Urgency” which states, “When the agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for”.

W56HZV-21-C-0070: In December 2020, ACC DTA awarded an urgent one year, sole source FFP-LOE, contract for Field Service Representative, for maximum value of $429,600 for the V903 engine. Period of Performance was for 10 months from December 2020 through September 2021.

b) Procurement History: The below contract was awarded to Cummins in accordance with FAR13.5(a) Simplified Procedures for certain Commercial Items authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million.

W56HZV-21-C-0133: In September 2021. ACC-DTA awarded a one year, sole source FFP-LOE, contract for Field Service Representative, for a maximum value of $1,033,259 for the V903 engine. Period of Performance (PoP) was for 12 months from October 2021 through September 2022. Modification P0001 was awarded which increased the FSR support effort by $231,260. The PoP remains the same through September 2022.

10. Technical/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.

Name: Lauren Franke-Berlin Date: 11 July 2022 Title: Acting Product Director Paladin Signature: //S// Lauren C. Franke-Berlin

Name: Heather J. Molitoris Date: 18 July 2022 Title: Bradley Deputy Product Manager Signature: //s// Heather J. Moltioris

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The contractor’s proposal will be reviewed by the Government to ensure a fair and reasonable price. Price reasonableness will be based upon a cost and price analysis, an independent Government estimate, and price history. The contractor will be required to submit other than certified cost or price data for negotiations to be conducted.

Name: Jennifer M. Meyer Date: 01 August 2022 Title: Chief, Strategic Support Branch Signature: //signed// Jennifer M. Meyer

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

Name: Jennifer M. Meyer Date: 01 August 2022 Title: Contracting Officer Signature: //signed// Jennifer M. Meyer Chief, Strategic Support Branch