Justification and Approval - AMPV STS_Redacted.pdf

CMO Control Number: 2019-004

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command Warren (ACC-WRN), Warren, Michigan 48397-5000, is the responsible contracting activity for this action.

2. Description of Action: ACC-WRN proposes to award a new five-year (base plus four option years, 12 months each) Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract with BAE Systems Land & Armaments, LP (BAE), in support of the Armored Multi-Purpose Vehicle (AMPV) and M113 Family of Vehicles (FOV). This contract effort will include System Technical Support (STS), Post Production System Support (PPSS), and Sustainment System Technical Support (SSTS) services. The contract period of performance is Fiscal Year (FY) 2020 to FY24.

The contract will allow for individual Task Orders (TOs) to be awarded as a Cost-Plus- Fixed-Fee (CPFF) effort on a Completion or Level of Effort (LOE) basis, based upon the nature of the requirement, with approximately 60% estimated to be awarded as Completion and 40% awarded as LOE. Each TO will detail the Scope of Work (SOW) to be performed by the contractor and Contract Data Requirements Lists (CDRLs) to be delivered by the contractor.

The Government will fund this action utilizing the following types of funding:

Type of Funding Purpose Research, Development, Test, and Evaluation

(RDT&E)

STS for U.S. Army vehicles

Army Procurement Appropriations (APA) / Army Wheeled Tracked Combat Vehicle (WTCV)

STS for U.S. Army vehicles

Operations and Maintenance, Army (OMA) PPSS/SSTS for U.S. Army vehicles Army Working Capital Fund (AWCF) PPSS/SSTS for U.S. Army vehicles Foreign Military Sales (FMS) STS/PPSS/SSTS for FMS vehicles

3. Description of Supplies/Services: The planned contract efforts will allow for critical STS/PPSS/SSTS services to be provided for vehicles managed by Project Manager (PM) AMPV for development of changes to existing products, production activities, and the sustainment phase of the acquisition life cycles. These services include engineering, logistics, and fielding support for AMPV and the M113 FOV.

a. Engineering support includes:

Configuration Management, Technical Data Package (TDP) and Computer Software Package maintenance Obsolescence Management Engineering Change Proposals (ECPs) FOV Field Problem Analysis Design and Development

AMPV EMD / LRIP contract establishes requirements which define a specific set of platform attributes, capabilities, and support provided. The Army is in a constant state of improving capabilities across its portfolio which result in new program requirements or services that are not encompassed in the current EMD/LRIP contract.

STS/PPSS/SSTS services enables the Program Office to address new requirements by providing a contractual mechanism to address change outside the scope of the current EMD/LRIP contract.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C) 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." Specifically, FAR 6.302- 1(a)(2)(ii) (A) and (B) provides that d likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling PM AMPV vehicle systems requirements.

5. Reason for Authority Cited:

a. BAE, as the Original Equipment Manufacturer (OEM) and sole producer of the AMPV variants, is the only contractor with the engineering and logistics experience for all systems that encompass the AMPV and M113 FOV required to support the vehicles at the time of contract award. The STS/PPSS/SSTS program requires performance of extensive vehicle support tasks that include Program Management, Logistics, Engineering, Configuration Management, and Product Assurance and Test. No other firm except BAE is capable of meeting documentation needed to fully support the vehicles within the required timeframe.

Support is required for AMPV FOV to support production and fielding to the warfighter. AMPV production is scheduled to begin upon completion of the November 2018 Milestone C review. The M113 is currently fielded and in its sustainment phase. Any needs that arise would require immediate action to mitigate any negative impacts to the operational forces.

b. BAE has the engineering experienced personnel capable of developing timely and accurate responses to issues arising on complex software and electrical systems, armor requirements, ammunition, turrets, and system integration of the vehicles. BAE has engineers with years of experience working on each vehicle system. A new firm attempting to develop the engineering expertise to efficiently and effectively respond to the multitude of mechanical, electrical, and armored structural design issues across these vehicle systems would have to learn various subsystems on each vehicle. This would result in added expenditures to pay a new contractor to learn each vehicle system, and would require additional time for a new firm to respond to field issues, possibly causing vehicles to be dead-lined for indeterminate periods.

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.

Name: Thomas M. Landy Date: 29 Oct 2018

Title: Deputy Project Manager, Signature: see hardcopy Armored Multi-Purpose Vehicles

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.

Name: Michael W. Milner Date: 29 Oct 2018 Colonel, AR Project Manager, Signature: see hardcopy Armored Multi-Purpose Vehicles

13. Fair and Reasonable Cost Determination: The negotiated price will be determined fair and reasonable through a combination of Cost Analysis to thoroughly analyze each of the proposed individual cost elements, in addition to conducting a price analysis to ensure the proposed price is consistent with the Independent Government Cost Estimate (IGCE) and actual historical pricing of similar Program Executive Office Ground Combat Systems (PEO GCS) programs. ACC-WRN has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the PCO by performing the Cost and Price analysis. This analysis will also be supported by a PM-AMPV technical review. The PCO will request that engineers or similar personnel familiar with the end item review labor types and quantities to ensure that what is proposed is fair and reasonable. The Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) expertise and audit support may be requested for input if applicable. The recommendations contained in the DCAA Audit, DCMA Technical report, and PM AMPV Engineering Technical reports will be used by the Cost/Price Analyst to develop a recommended negotiating position. This detailed Government Position will be approved in a comprehensive Business Clearance Review (BCR) consisting of reviews from senior contracting officials at ACC-WRN.

Certified Cost or Pricing Data will be required and will form the basis for this analysis.

The results of negotiations, and the detailed Fair and Reasonable determination from the Contracting Officer, will be documented in a Post Negotiation Memorandum (PNM) that will be reviewed and concurred upon by senior Contracting personnel within the Pricing Division.

Name: Suzanne Kay Doetsch Date: 30 Oct 2018

Title: Procuring Contracting Officer Signature: //skd//

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

Name: Suzanne Kay Doetsch Date: 30 Oct 2018

Title: Procuring Contracting Officer Signature: //skd//