JandA - Redacted.pdf

CMO Control No: 2020-073

W56HZV-20-R-0139

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER

THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command-Detroit Arsenal, (ACC- DTA), Detroit Arsenal, MI 48397-5000 is the procuring activity responsible for this action.

2. Description of Action: ACC-DTA proposes to award a new five year requirements contract with five 12 month ordering periods; Cost-Plus-Fixed-Fee (CPFF) Level of Effort (LOE) to Raytheon Company (2501 W. University Dr., McKinney, TX 75071) with Completion and Level of Effort (LOE) Work Directives. The funds utilized include: United States Marine Corps (USMC) Operation and Maintenance (O&M), and other USMC funds depending on program requirements.

3. Description of Services: The purpose of this service contract is to obtain STS/SSTS services for the ITSS and ATWS systems. The contract will be to provide System Technical Support and System Sustainment Technical Support (STS/SSTS) for the Improved Thermal Sight System (ITSS) and the Anti-Tank Weapon System (ATWS) on the USMC Family of Light Armored Vehicles (FoLAV).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 an estimated 37,000 labor hours during the five 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

p. Field Service Representative Support

The anticipated period of performance for this action is five 12-month ordering periods, beginning in November 2020 through November 2025. Based on the USMC Independent Government Cost Estimates (IGCE) obtained on 30 March 2020, the total estimated cost for this effort is $5,007,422 with an estimated 37,000 labor hours.

4. Authority Cited: The statutory authority permitting Other Than Full and Open Competition is Title 10 United States Code (U.S.C.) 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A) and (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- (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition; or (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 Raytheon Company. The Government does not have the technical data required to compete this action. Raytheon owns the technical data (Propriety Rights) needed to complete the activities required under the proposed contract. (In the 7 April 2020 response to an inquiry from the contract specialist, Raytheon declined to sell the ITSS and ATWS proprietary TDPs.) An inordinate amount of time and money would be required to provide the system technical support services described herein without access to both TDPs.

Background: The USMC LAV fleet was initially acquired in 1982 and has been continuously sustained with upgrades and modifications to improve reliability, performance and survivability in order to manage obsolescence.

requiring ongoing support to sustainment activities to maintain viable war fighting capabilities. This requirement provides STS/SSTS support for the following Raytheon components:

i) Integrated Thermal Sight System (ITSS): The ITSS was fielded in 2007.

The ITSS provides the crew with thermal imaging and Day View Optics (DVO) while providing the commander with thermal imaging. The ITSS also provides the gunner with an Eyesafe Laser Rangefinder (ELRF), and the commander with a lasing capability.

ii) Anti-Tank Weapon System (ATWS): The ATWS was fielded in 2017.

The ATWS is a mission suite upgrade that improves reliability, availability, and maintainability. It consists of a new turret suite that mounts to the vehicle roof and the turret ring includes: Modified Improved Target Acquisition System (MITAS), Bradley TOW Missile Launcher (TML) & TOW interface Unit, Azimuth-Elevation servo System (on the move performance) and an Embedded GPS North Finding Module for Far Target capability.

approximate cost per drawing includes $3,000, or 30% for the labor involved to reverse engineering the vehicles technical data; $3,000, or 30% for the development of design criteria and performance models, and $4,000, or 40% for the development of Computer-Aided Design (CAD) models. The estimated total cost of $7.5M reflects the $10,000 estimate for the reverse engineering of 750 drawings that comprise the TDP for ITSS and ATWS.

ii. Logistics Development: The ITSS and ATWS is maintained through the use of over 24 Technical Manuals (TMs) that cover the seven LAV variants. Each TM is comprised of approximately 800 pages, for a total of 19,200 pages. It is estimated to cost $308 per page to develop and validate content for each page of the TMs.

iii. 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. This is in accordance with (IAW) the PM LAV Configuration Plan that would allow the ECP to be added to the overall LAV Technical Data Package.

This action is assumed to be an effort similar in scope and cost to the LAV Electrical System Modification (ESM) effort which has spent $2.2M to date.

iv. FAT Build: After the technical data is available from reverse engineering, a total of three FAT prototypes would be required for both ITSS and ATWS. The estimated unit cost for the ITSS is $0.5M, and the ATWS is $1.5M.

v. FAT Evaluation: This would include setting up 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. The estimated cost for this effort is based on subject matter expert opinion, which is approximately $5M.

b. Unacceptable Delay: Raytheon is the only source with the unique engineering and technical expertise required for the complex vehicle engineering tasks associated with the ATSS and ATWS systems. The proposed engineering effort requires a contractor with existing expertise and capabilities for the ITSS and ATWS 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 configurations of the FoLAV. 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. Raytheon is the only source with the engineering expertise and capability of developing timely and accurate responses to issues arising on the ITSS and ATWS systems, and as it relates to the various configurations of the FoLAV.

vi. FAT Evaluation: It will take an additional three months to complete validation. This would include setting up new verification methods, preparing documentation, and setting up 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.

In summary, the cost to the Marine Corps of approximately $26.6M total would be required to address the above requirements and would cause a delay of approximately 72 months to qualify a new contractor.

Approximately $5.0M is expected to be awarded to STS efforts through the duration of the contract. Assuming a 10% savings through competition results in the maximum expected savings of $0.5M through competition. Awarding this effort to a source other than Raytheon would result in a substantial duplication of cost not expected to be recovered through competition.

6. Efforts to Obtain Competition:

a. Effective Competition: The Government will not compete this effort for the reasons stated above in section 5. The Government will post all notices required by FAR

5.201 for this action.

b. Subcontracting Competition: The solicitation and contract will contain the following clauses: FAR 52.219-8 "Utilization of Small Business Concerns," FAR 51.219-9 "Small Business Subcontracting Plan," and Defense Federal Acquisition Regulation Supplement 252.219-7003 "Small Business Subcontracting Plan (DoD Contracts).” To maximize competition at the subcontracting/vendor level, the Government will also include FAR 52.244-5 "Competition in Subcontracting.” The solicitation will request that the contractor propose positive goals for each of the socioeconomic categories of small businesses and the TACOM Life Cycle Management Command (LCMC) Office of Small Business Programs will review the subcontracting plan. ACC-DTA will incorporate the contractor's negotiated subcontracting goals into the contract.

7. Action to Increase Competition: The Government is taking no further action to increase competition at this time. Only Raytheon 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: Market research was conducted in accordance with (IAW) FAR

10.002(b) (2) for this acquisition. ACC-DTA and PM LAV issued an RFI (Sources

Sought notice) to industry through SAM, BETA, 1 April 2020 through 8 April 2020, 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 Government. Result: Three contractors responded: (i) Raytheon

Company, 2501 W. University Dr., McKinney, TX 75071, (ii) WJAB Enterprises Inc. dba

ReliaTrain (1281 Twin Maples Ln, Bloomfield Hills, MI 48301, and (iii) VSS Logistics

LLC, 2025 Louisville Rd, Ste. C, Savannah, GA 31415.

Both WJAB Enterprises Inc. and VSS Logistics LLC are small businesses. Both have indicated in their RFI responses they have an understanding or experience in the design, engineering, and logistics support of weapon systems including anti-tank, (i.e.

the TOW, and medium caliber weapons systems; combat vehicle platforms including the LAV, gun/turret drives, and FCS including day/night optics, thermal sight technologies and LRFs), but neither has access to the ITSS and ATWS Raytheon propriety TDPs. Access to these TDPs is essential to performing to the Statement of

Work (SOW).

It has been concluded through market research, the expertise of PM-LAV, LAV engineers’ knowledge, and continued collaboration efforts with industry, that only Raytheon has the experience, and resources necessary to provide the required STS/SSTS services in support of the ITSS and ATWS. Raytheon is the R&D and production source for both systems. Raytheon owns the Proprietary TDPs for both systems. No other contractor currently possesses the skill sets, experience, and requisite knowledge associated with owner of Proprietary TDPs, to provide the required STS/SSTS services in support of these systems.

In an effort to promote possible competition in the future, PM-LAV subject matter experts continue to conduct market place surveillance.

9. Interested Sources: To date, no other sources except as described in section 8 above have expressed an interest in this acquisition.

10. Other Facts:

Procurement History:

1) Contract W56HZV-02-C-M001

Hardware: ITSS (Development, T/E, Production)

Contractor: Raytheon Company

Award Amount: $137,133,317.22

Date of Award: 21 May 2002

Contract Expiration: 31 Dec. 2010

Requirement: Phase I: The design, development, test and fabrication prototypes of the ITSS for the LAV-25. ITSS to be producible and supportable. Develop manage and maintain the ITSS TDP for 5 yrs., starting with contract award. Phase II: Installation in a GOVT supplied LAV-25 (SLEP complete) for test and evaluation. Production Phase (Qty: 406 ITSS)

Competitive Status: Competitive

Contract Type: FFP and CPFF

Kind of Contract: Supply and Priced Orders w/ modifications

2) Contract W56HZV-12-C-0046

Hardware: ATWS (R&D)

Contractor: Raytheon Company

Award Amount: $208,492,320.83

Date of Award: 16 April 2012

Contract Expiration: 16 April 2019

Requirement: Convert ten (10) Improved Target Acquisition System (ITAS) (Part # 13582780-2) to the Modified Target Acquisition System (MTAS) (Part # 4971752-3) and eight (8) Fire Control Subsystems (FCS) (Part # 13582793-

4) to the LAV Anti-Tank Weapon System (ATWS) configuration FCS (Part # 4971800-4). Test and Evaluation.

Competitive Status: Competitive

Contract Type: FFP and CPFF

Kind of Contract: R&D

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: Dan Mazzola Date: 14 April 2020______

Title: APM-Engineering_____________ Signature: //signed//dam//

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: Dan Mazzola Date: 14 April 2020______

Title: APM-Engineering_____________ Signature: //signed//dam//

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

Cost and Estimate (IGCE) will be prepared for each work directive under the proposed contract.

Typed Name: Michael R. Depeal Date: 14 April 2020

Title: Contracting Officer Signature: //s//mrd//

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

Typed Name: Michael R. Depeal Date: 14 April 2020

TITLE: Contracting Officer Signature: //s//mrd//