JNA - NSCV LCR 17Jul23 FINAL REDACTED.pdf

United States Special Operations Command

(USSOCOM)

Justification and Approval (J&A) For Non Standard Commercial Vehicles (NSCV) Life Cycle Replacement (LCR)

27 June 2023

CUI

Ju tification for Other Than Fun and Open Competition (J&A)

Authority: (10 U.S.C. 3204(a)(l), as implemented by FAR 6.302-1)

Project rogram. Name: on- taudard Commercial ebi le ·· C. de Replaceme11t LCR

Component/PEO/Other: PEO- OF \l an:ior / PM-FO OV

E timated Contract Co t inciudin.g option ) : $3.'."0 000,000.00

T e J&A: Jndividual or Cla D

1. Agency and Contracting Acthity: (FAR 6.303-2(b)( l))

Program Office:

• nited tate·· pec ial Operation Command · SSOCO.r\lI) Program fanager: Famil of Special Operation \ ehicle • Special Operations Forces Acqu ition, Technolog and Logi tic

701 Tampa Point Blvd MacDill .i\FB FL 336_1

Cont1acting Office:

HQ USSOCO SOF AT&L-KR

701 Tampa Point Blvd facDill AFB, FL 336_1

Life

2. Description of Action: (FAR 6.303-2(b)(2)) Bridge Action Yes Dor No C8'J

J&A 1 o.

23-3557

Thi J&A i for the award of an Indefinite Del" er) , Indefinite Quantity IDIQ contract for NSC s to Battelle 11emorial Institute B IT) a 50l (c (3 non-profit corporation on a ole . ource ba is. B:MI was determined via US OCOlvI led Market Re. ea.rcb to be the only capable and respon ible source to meet on-Standard·Commercial Vehi le C ) requirement . The estimated quantity of SC to be purchased under thi IDIQ acrn s the seven eax is 1111 This contract action also provides for Engineeri11g Service . tern T ch 'e1 ice and Repairs, Training, hipping O and O O , parts, tra el, and CDRL .

PEO- W - PM FOSO request approval for a new ole ource IDIQ Contract to be completed predominate! u ing procurement funding and RDT &E for potential engineering changes.

The cmTent NSCV fleet (multiple variant annorecl and unmmored) has received Full Deployment and Releases (F&DR and are currentl being produced for all Theater Special 0 erntions Commands (T OC , Commnent and Home Station Trainers (HST ·) as the 2016

CUI.

J&A o. 23-r5

NSCV Capabilities Production Document (CPD) is an enduring requirement. This new contract will enable the continuance of the iterative replacement of the NSCV fleet against current requirements. The award and execution of this contract will ensure that the NSCV fleet is postured to support non-standard ground mobility life cycle replacement requirements (estimated■ vehicles across 7 years) now and into the future without a break in current operational readiness.

Small Business Consideration: Although BMI is classified as a large business, the non-profit organization has demonstrated a small business utilization rate greater than 81.2% on the current NSCV contract per the Electronic Subcontract Reporting System (eSRS). For reference the current contract Small Business goal for BMI is 58.1 %. The planned goal is to maintain the current small business utilization rate.

Proposed Contract: The IDIQ contract is intended to be a 5-year Middle Tier of Acquisition Rapid-Fielding effort with two option years, with a total estimated contract ceiling of $350,000,000.00. The current contract, H9222216D0043 expires on 13 November 2023 . The Government intends to award this follow-on effort October/November of 2023 with an ordering period starting no later than 14 November 2023 to prevent any breaks in ordering capability.

NSCV Contractual Background: The current / existing contract (i.e. H9222216D0043) was competitively awarded as an IDIQ contract with a base 5-year ordering period and one option for an additional 2-year ordering period to create the potential for a 7-year ordering period through 13 November 2023. The original $310,000,000.00 contract ceiling was awarded based on the full operational capability (FOC) otJII NSCVs and the additional operational requirements from organizations previously listed with a current annual average budget of ~$22M per year through the Future Years Defense Program (FYDP). Based on the current requirements document, the FOC remains at■ NSCVs where PM FOSOV will continue to maintain that basis of issue (BOI).

Proposed End-State: The NSCV program continues to have an enduring requirement to maintain an operationally relevant and capable NSCV fleet. Through the timely award of this contract to the only capable vendor, the Program Office will be able to adequately support the SOF Operator' s NSCV ground mobility needs/requirements. The type of funding and estimated amount to be used across the seven years is shown below. Although the estimated funding profile reflects a total estimate of $288M, the program is requesting an additional $62M in contract ceiling (i.e. total ceiling of $350M) as a mitigation to increased rices due to inflation and supp~ns. In addition, this will cover the NSCVs ratio with- integration, at an estimated unit cost of 436,000.00 for a total o- replacement vehicles.

J&A No. 23-3557

CU1

mlll•H!l•mllEIIEDIIJIIIIElllEmlt•i@I

PROC 35.432 36.849 37.955 39.473 40.249 41.859 43.115 274.93

RDT&E 1.77 1.84 1.90 1.97 2.01 2.09 2.16 13.75

3. Description of Supplies/Senices: (FAR 6.303-2(b)(3)) re a cla ~s of, ehi le \Vhose pmpo e .i for g • bili . and force protection for operation ofForei... emal Defen e tional arfar n of the Environme ) and ectni F ) in po r all con trained per · mi-pen o e • • . The o ·am in talls • •

The current ·eai· unit co t for an unarmored ·, ithout C4I R Integration -Kit i approximate!) $192,000.00 or .., 32,000.00 \: ith C I R , -Kit integration. The ctUT nt ear unit o t fir an aim red SC\ witl1out - i approximatel $ 96,000.00 or

436,000.00 ,. ith integration. While hist rical data i u eel to calculate cost, actual , ehicle ost per u er requirement ma , ar greatly, depending on OF mi ion pecifi modification .

4. Authority Cited: (FAR 6.303-2(b)(4)) fZl 10 .S.C 3204(a (I , Only One Resp n ible omce and o Other upplie or er ice ill Sati fy Agency Requirement. a implemented b FAR 6."'0- -1

5. Reason for Authority Cited: (FAR 6.303-1

B 1I i • the only ource that ha the capability and capaci _ to produce the that will meet the Gm1eroment s need . BMI is cunentl the ale manufacturer and ori?inal equipment manufacturer OE 1 of the JSC\ for OCO L The current contract i.e.

H9-2-216D0043) ,,-ill expire u 1.., ovember _Q_ . The program need to life cycle replace an ag:ing fleet· to maintain the exi ting fielded capab:ili . The Go emmenf's exten ive 1 - e,ir hi_ tory with BMI ha produ ed imilar and equi alent encl items and ha resulted in a productive and co t-effective in e tment to the Go emment. B fI i an integrat r of pecial Operation 111 dificati n rnnging from f, r e protecti n, vehicle performance, cmmnunication and countennea ure . The e integration effort are a differentiM r from alternative s urces who are onl ehi:cle manufacturer and fabrication hops. BNil o, I • th t chnical data package for integrating the e SOF rnodificati n in addition to ha ing the manufacturing capacity. te, ting facility, o ·erseas paifaer hip with the ba e vehicle OEM and the wananty ervice relation hi with the OE f net\: i:k. Thi ole ource J&A re xe ents the

J&A o. 23-..,- -

Government · re :po.11 ible acti n to reduce risk and cost that would be inclmecl if the Government were to compete for an alternate source. pecificaHy .. all the altemati e source will introduce significant co t and time to develop and test a comparable materiel oluti011 follovvecl b the cost and time t tand up cornparable manufactrning and integration capacity.

It j estimated that force protection apabili1y would be et back 18-- month while the exi ting fleet age . Furthe1more, the technical data package for - integration continue to evolve in complexity a thi techuol. g area continue t inno, ate and iterate at a rapid rate .

These factors are deemed b the Go · ernment to equate o tma ee1 tabl d lay f re engineering, le elopment, and te. t for a c niparnble material olntron. Fwiher "ignificant delays and duplicati e co t v ould be experienced by the G ermnent in the pr ce s f tanding up a comparable pr lucti u a ili . Thi would also creat a fi ldino- gap of SCVs for a period of 18- 4 month .

Sub tantial Duplication of C t Pursuant to the authority ci the B are h:iocbly •. ialized mo • • meet the trict technical • • only c mpim. tliat ha b latform that R 1I, i . the

Competition resulting inane,, mannfachu-er v ould incur a duphcati n of co t to the Government outlined within Table 1 li ted below. . dditionall 1, there v ould be wmeces at sustainment costs by introdacing additional variant . n t compri ed ofthe current fleet that meet requirement . TI1e creation of a new inventory of another manufacturer s pare part would force USSOCO"M to inventory, manage and maintain replacement part from multiple manufacturer . The inefficient and redundant act of maintaining an inventor of multiple brand re ult in the acqui ition of mailer qnantitie of parts upporting multiple brands of vehicle . thereby reducing the purchasing povve.i- oftbe Go eruruent.

Duplication of co ts that would not be recovered through competition are outlined below. The e timatecl duplication of co, t to the Government, ould be -4.9 U O .0 and vvould c n ist of the fo.llowing area h ted in Table I below.

Table l: Dtolication of Costs

Test $ 15,686,813.68

ECO $ 6.518.616.48

Sust $ 1,614,814.55

RJ)T&E :& 1.06:.739.00

Trnin.ing $ 85,1-4.36

$ 24.97U08.07

A breakdo"vu of the Program Management Office co t tlrnt are u111U1arized in ilie tabl.e above:

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1.

3. Sustainment: T ,· • • • ackage , • • Mam, gernent. I

4.

- Training: Four ew Equipment Trainino da e ha e ah·ead been e ·ecuted a ,. ell a the development of the mechanic cnn:iculum specific for all ariant of Battelle N CVs.

6. Efforts/Actions to Increase Competition: (FAR 6.303-2(b)(6) & (1 1))

A · the N Program evolve mature , and di er i:fie_ the materiel olutions developed to meet the needs a defined by Commander Guidance and the ational Defense Strategy

DS , the Program see opportunity to openl compete bu ·ine for ne,, requirement. and new platfonn ariant but not 1 c, LCR requirement . pecificall ·, the introduction of Pmvose-Built vehicle , Urban :Niis ion Profile , and low vi ibilit SOF c mmercial vehicles int:r duces ne\v opportuni £ r the Go emment to drive full and open competitions f r ne" platfo1m that a1·e not already fielded.

A Market Re earch Repo11 wa complete l on f fa L , _0_2 , hich i detailed in ection e en Ii ted below. IA FAR -. 01 b) and DFAR _05 .205- 1 a ource Sought notice a well a a Notice of Intent to go ole Sour e 11 tice \i ere both po fed to . ,f.o-ov. Both v ere p ted £ r 1- da . dming o ember _0_2 to JanuarJ 0- ~. See ectio11 9. below 011 the Intere ted ource that responded. La tly the appro ·ed Jc ·will al ·o be posted to httpsJ eta . am.Q:ov per FAR 6.305(a within 14 da . after contract a an!.

ee below ·ection , 'Iarket Re earch, for additional in.£ rmation regarding the cune11t ituation of the marketplace for C that, ill be bruTier t competiti n for thi foUov, - n contract.

7. .Market Research: (FAR 6.303-2(b) (8)).

Market r earch conducted from May 20-2 to December 202·_ found that the market i fragmented into niche egme11t , ith few competitor re ulting in there beiuo a ole re po11 ible somc.e, that being B::ittelle Memorial In titute. Thi report finds that there i a limited competiti e land cape. ince 1Vlay 12, 02_ , hen the Go enunent perfonned initial market re earch, t\: o companie have hut cl wn peration . In the time foU wing the Ma o __ Market Re earch Re) rt PM FOSO ha. co11tinl!ecl it own market research to ntinuall

J&A o. 23-r5 earch and contract 1· that could p requirement and 01· er mpetition. Thi ha incl . 1e pecial Operations Force \ at erational Requirement Di cu p ium an 1e pecial Operation Force Indu onfe1·ence. Furthe1more P f , tinuaH c • nunicate • w1fh other ffice • . ·nch A.nu PEO round C mbat _ terns and ageucie uch a Department f fate w , hare inrilar requir m nt the lat t finding in technolog and potential end r .

The Government mru·ket unent , end r i manacing a11 integrated ground mobili plat£ rm for SO O f \: herea other p tential endor perfi rm manufacturing:

for the vehicle but cl n t demon trate the ame le el of techn l t:- integrati u. Thi i a critical finding in t~ d it i , e 1 e i~ll rele ~1:t f~r th~ , l of which U SOCO f adapt ----The mtegranon capalnh 1 cnh program t the futme in uppo1t of the I\1D .

Additionally, the Program ha collaborated with , ther Government A&enci OGA £ r a wider ·iew of the c,ommercial tactical ehi le market. pecificall the Pr gram lo ked at imilar materiel olution from ther ource . :fau differen es in the development, manufach1ring and u tainment were di. co ered a the program manufa turing and integrati n are performed b different cornpanie . FO 0\ found~ o ource . whi b ha e repeatedl opted n t to engag OCOM n potential bu ine opp rtunitie , FO 0\ im e tigated the circum tance utrnun ling the non-competing c mpanie ' and found that ne c mpan ceased operation in _O~l and the ther company i unable to cale pr duction t meet ehicle deli ·ery oblio-ation ofit cuneut Go ·erumeut custom.er. The e finding ' further, alidate the market re earch of a\railable and re pondino- omce .

Summary

Hi toricall , the Go emment wa challenged to find a contractor \l. ith the abili to provid a con. istent and quali , material luti 11 v ith the requisite integration and u taiument ervice , Thi. ha led to i.ncrea ed cl wn time in the field re ulting iu perat r~ \ ho are unabie t u e ebide \ hen the mi . ion dictate . The e i ue drive an increa el t to the Government po t-award due to a need £ r additional te ting, increa ed over ight Engin ering Change Propo al ECP , ub equent retrofit and maintenance. Th Go emment ha c n em in tbe ho1t tenn ,, ith small bu ·ine ability t imultaneou 1 manage the de igi engineering, production, and te t pha e for i.x. different vehicle models narmorec A1111ored~ four ariations each; 48 t tal con.figmation . Ba ed on BMI' performance managing the production of SC it i he Program' determination that this cornpan i the be t position at the present time to upport thi unique OF mi i 11 requirement for ground mobili .

8. Other Authorities/Factors: (FAR 6.303-2(b)(9)) one

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9. Interested Sources: (FAR 6.303-2(b )( 10))

A omc ought notice was. published a ired by FAR -.201 b and DFARS 20:.205-71 from 08 1ember 20-- to • mbe and an Notice of Intent to go ol S urce \ a

• 1 :..9 Decet • • 023 . The pr g:n-1U1 offi • iewed three 1 the ur • cl them al . •

The e ompanie , ere deemed unacceptable fr ma lack of inform< i at the) od pro ide the required capability and meet the cla ification requirements. wa the thir-cl response, but wa deemed unacceptable by a lack f e ·idence the could provide the apability required. Thi anal i wa conclncted b the lead e:ngi:neer for FO who re ie,; eel -

- re pon e to the ource ought Po t and conduded lack any evidence it can de igu r qualify D r C type ehide that can meet the level of armoring and survivability req11irement. . To upport the anal i. , the lead engineer for FO O • ana1vzed cunent and pa t G A contract utilizing ncl di cu ··ed , ith Department of State wh also conducted market re earch on for their o, n vehicle requirement _ Follm ing thi~ program re ie, . the c ntracti:ng office infonnecl all three ompanie via email they were not found technicall) a ceptable n 19 December 2022. The otice of Intent to go Sole Source po ted fr m _9 December 202_ to 13 Janua1 _0_3, n further legitimate re ponse v ere received. The one intere ted ar • on the Intere ted endor List on~ osti.ng was b a Re earch shov, s---i not a vehicle manufacturer but instead a goYenunent propo al writer for Federal Coutrac.t , and therefore,, a not on idered acceptable for thi requirement. On l Janmu _023 , the contrncting office ·ent an ther follm, up email to the three companies listed ab , e to en ure they recei, eel the fir t email ta ting. they were unacceptable . The only r pon e t thi email wa b fating they looked £ n: ar-cl to eei.ng the Re uest for Propo al. pan ub equent email , the contracting of:fi e infonned hat at thi time it v a not in the be t i.utere t f the Go enunent to include thi re . uirement a ;· - be found ub tantiating that t t 1e capacity. capabi 1e clearance level requ· ..

la t email wa ent t 023 and can be £ und in the contract file under • There ha not been an. further colllillunication from JanUaI) 20-

Prior to appro, al, J&As will be creened to identify propr.ieta.r data and i:nfonnation exempted from di clo ure b - U. .C. -- - , Freedom of lnfonrn1tion ct, that the final JcrA ma be prepared for required po ting to beta. am.g: IA\\ ection . 4 of ID _00 a implemented via DP. P Memo, Public Disclo ure f Justificati nan 1 ppro ·al Documents for oucompetiti e • ontract , dated 13 Februa1 009. J&A shall be posted to beta . am.go within 1 days mile 10 .S.C _J04 c)(- , ' nu ual and Compelling ro-ency i cited. In that articular c e .the J& \ ill be )O ted ,vitbin 30 da .

J~A o. 2"' - ~5 cm

10. Technical and Requirements Certification: (FAR 6.303-2(c))

I certify that the suppo1ting data under my cognizance ,; hich are included in tbe justification are accurate and complete to the be t of m lrnO\ ledge and belief:

DATE:

cur J&A o. 23-3- -

11. Fair and Reasonable Cost Determination: (FAR 6.303-2(b)(7))

I hereb determine that the anticipated co t or price t the Go ernmeut fi r tlu c utract action will be fair and re, onable.

12. Contracting Officer Certification: (FAR 6.303-2(h)(l2))

I hereb) ce1iify that thi J&A i c mplete and a cmate to the be t of m knm: ledge and belief.

id Tenenbaum TITLE: Contracting Officer

TENENBAUM DAV DJgitallysignedby

• • • • TENENBAUM.DAVIDM.11858876

IG ATURE: ID.M.1185887690 :te: 023.07.05 l0:29:55-04'00' DATE:

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13. Legal: SOFARS 5601-1

Attome - d i or Acqui ition

J&A No. _J -r -

14. Agency Advocate for Competition (AAC): SOFARS 5601 - 1

I have reviewed thi document and find the J&A adequate to upport other than full aud open competition:

TITLE: Director eputy Director of Procurement

DATE: 6 Jul 2023

-EUl J&A o. 23-r-

15. Appronl: (HCA Over $13.5M to $93M O or SPE Over $93M [8'.])

Ba ed upon the foregoing jt tification, I hereb) approve the procurement of the n-Standarcl ommercial \ ehicles Life y le Repla em nt a ciated ancillar it m , and a. ociated ustainment :md uppo1t en ice utlined in thi Jc , A. The requirement will be rel ea ed 011 an other than. foll and open competition ba ·i with a maximum ceiling value of 3 ·o f. The action pur uant to thi ' J&A are ubject to fue a ailahility of fund. and the completion of all required sta tut01') and regulator) revie and appro\ al. .

N ME: Senior Procurem nt Executi e

D, TE: 20230717

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