JandA W56HZV-20-C-0121 Redacted.pdf

CMO Control Number:

3 | P a g e approximate cost per drawing includes $3,000, or 30% for the labor involved with reverse engineering of 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 $76M reflects the $10,000 estimate for the reverse engineering of 7,500 drawings that comprise the LAV TDP and additional reverse engineering efforts associated specifically to the slip ring itself ($0.7M).

(ii) Duplication of Current Efforts: The development and testing of the ESM was accomplished as part of the STS/SSTS effort covered under W56HZV-17-C-0044. The Government has Government purpose rights to several of the kit components like the cabling and power switch. However, GDLS retains the rights to the HPDM, as well as the computer software required to operate the ESM Kits. In addition, only they have the requisite knowledge necessary to integrate the kits they designed into the vehicles. If a new contractor were responsible for the development and integration of the ESM Kits, even with possession of the portions of the ESM Kit TDP the Government is able to provide them, the prospective contractor would be required to reproduce many of the ESM Kit drawings as well as design a new HPDM at an approximate cost of $2,000,000. This effort would be required to allow for reverse engineering of the slip ring.

(iii) Building Test Vehicles: A new contractor would be required to build four prototype vehicles in order to validate and verify the newly re-engineered TDP and support follow-on testing efforts. The estimated cost required to build four new vehicles, including the development of manufacturing and production processes, is approximately $6M per vehicle, or $24M total. This estimate is based on the last known price of a new build LAV of $2.8M, rounded to $3M to account for inflation. This cost was then stepped up by a factor of two to account for the fact that these test vehicles will need to be built in a bay in lieu of a production line. This factor of two also included estimated cost for production tooling and manufacturing set up.

(iv) Production Qualification Testing (PQT): A new contractor would be required to perform PQT as it is required to verify new designs and manufacturing processes. PQT includes Reliability, Availability, and Maintainability (RAM) testing as well as Performance testing. Two vehicles are required for each test. The estimated cost required to complete test is $43M. This estimate is based on 15 man-years of PM Support for PQT ($4.2M), contractor test support ($5.5M), additional hardware and spares ($6.7M), and testing/test center support ($25.6M). Additionally, there would be slip ring specific testing required, including (but not limited to) high/low temp storage and operation, humidity, salt fog, and blowing sand/dust, and brown-out testing ($1.5M).

b. Unacceptable Delay: In order for a contractor, other than Moog, to design and integrate a comparable slip ring, the contractor would be required to have the engineering capability to reproduce the existing LAV TDP, validate the new TDP by building a test set of vehicles, and successfully accomplish PQT. They would then need to design a compatible slip ring according to the Government performance

5 | P a g e the program. Assuming a 10% savings through competition results in the maximum expected savings of $1.3M through competition. Awarding this effort to a source other than Moog 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 Moog has the knowledge and expertise necessary to satisfy this requirement. 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 issued a Sources Sought notice to industry through Beta SAM from 24 March 2020 through 10 April 2020, in accordance with FAR 10.002(b)(2). The Sources Sought notice requested that the interested vendor demonstrate the capability to produce an estimated 280 fully integrated slip rings, part number CX7176, for the LAV-25 vehicle with delivery completed by October 2022. Additional questions contained on the notice pertained to the interested vendor’s experience and past performance with designing and producing similar components.

Moog was the only respondent to the RFI. Additionally, only Moog has the experience, and resources necessary to provide the hardware under this proposed justification. No other firm is currently capable of providing the slip ring required within the schedule requirements based on market research.

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

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10. Other Facts:

Procurement History:

1) 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. The design of the ESM Kits, to include the slip ring, was accomplished under a work directive of this contract.

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

11. Technical and 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: Stu Meyer Date: 4/29/2020 Title: Project Lead, LAV Signature: //signed//slm//

12. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. An Independent Government Cost Estimate (IGCE) has been prepared for the proposed contract. Cost/Price Analysis and audit recommendations will be used to discern whether the costs proposed are current and justifiable. The final negotiated agreement will give full consideration to all contractual requirements, including the delivery schedule, to support a determination of fair and reasonable prices for this action. The Contractor will be required to submit Certified Cost or Pricing Data, which will be subject to DCAA audit, and will form the basis for negotiating a fair and reasonable price.

Typed Name: Michael R DePeal Date: 29 APR 2020 ____

Title: Supervisory Contract Specialist, LAV

Signature: //signed//mrd//

13. 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: 29 APR 2020 _

Title: Supervisory Contract Specialist, LAV

Signature: //signed//mrd//