MCTIS CLS 6-Month Extension JA Sole Source-Final_Redacted.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO VIRGINIA 22134-5050

IN REPLY REFER TO:

CT 2.78

J&A No. 26,078

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Marine Corps Systems Command (MARCORSYSCOM) Program Manager, Training Systems (PM TRASYS) Product Manager, Range Training Systems (PdM RTS) 12211 Science Dr.

Orlando, FL 32826

2. Description of the Action Being Approved.

The action being approved is the use of other than full and open competition to extend the current Force-on-Force Training Systems-Next (FoFTS-Next) Marine Corps Tactical Instrumentation System (MCTIS) contract (M6785421C8051) for an additional six months on a sole-source basis to Saab, Inc., 2602 Challenger Tech Ct #130, Orlando, FL 32826. This six-month extension is specifically structured to address an immediate, unavoidable gap in service while providing the flexibility to mitigate schedule risks associated with the follow-on sole source contract award.

3. Description of Supplies/Services.

The proposed contract action is to continue current comprehensive support for the FoFTS-Next program, encompassing:

1. Contractor Logistics Support – Maintenance, repair, and logistics support for all fielded

MCTIS equipment at Marine Corps installations worldwide.

2. Training Event and Exercise Support – Support for Marine Corps Combat Readiness

Evaluations and Service Level Training Exercises annually, involving up to 6,200 instrumented entities, plus company-level exercise support.

3. Engineering Support – System engineering, integration, and technical support to ensure continued performance and compatibility with Government-approved engineering change proposals, system updates and configuration changes.

4. Training Systems Integration – Integration of MCTIS with other Marine Corps training systems and devices to create a comprehensive training environment.

CT 2.78

J&A No. 26,078 to demonstrate their existing training instrumentation system’s ability to meet Marine Corps requirements. Upon completion of the first three OTA phases, a down-select resulted in a production award to Saab, Inc. under contract M6785421C8051 for with a five-year Period of Performance (PoP), from June 2021 through June 2026.

Contract M6785421C8051 was awarded to Saab, Inc. for Marine Corps specific adaptations, production, and sustainment. Saab, Inc.'s underlying commercial training instrumentation technology was developed at private expense prior to the Government engagement, with the OTA funding prototype demonstrations and contract M6785421C8051 funding the Marine Corps-specific adaptations and production, and the Government having no rights to Saab, Inc.'s underlying system architecture, core source code, or technical data. Despite the Marine Corps-specific adaptations funded under contract M6785421C8051, Saab, Inc. retains exclusive rights to the foundational commercial technology and Saab, Inc. remains the only source for full lifecycle support. Only Saab, Inc. can sustain the capability, as any other source would require reverse engineering of both the commercial baseline and Government-specific adaptations, resulting in duplicate costs and incompatible systems.

The Government prioritized rapid fielding over TDP acquisition due to an urgent need to replace the obsolete Instrumentation and Tactical Engagement Simulation System (ITESS-II). This decision was driven by Training and Education Command's formal Statement of Urgent Need (2021), limited funding that was directed toward system acquisition rather than TDP procurement, and schedule constraints precluded extended data rights negotiations.

When the Government considered acquisition of the TDP in April 2025, Saab, Inc. quoted , considering it equivalent to selling their business. This cost is prohibitive and would divert resources from critical sustainment needs. Additionally, as the Marine Corps evaluates emerging technologies that may replace current laser-based systems, such investment is not prudent.

Therefore, given the circumstances described above, and the market research results summarized in Section 6, Saab, Inc. is the only known source capable of meeting the Government's requirements for MCTIS Lifecycle Support. In accordance with FAR 6.302-1(a)(2)(ii) and (iii), award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency's requirements.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The Government conducted market research to identify potential sources capable of providing MCTIS Production and Lifecycle Support. A Sources Sought notice (SSN) M6785425I8031 was posted on SAM.gov on 21 March 2025, for a duration of 21 days. The notice specifically requested information on a contractor’s ability to access Saab, Inc.'s proprietary technical data, experience with similar systems, and capability to perform the required functions. Five responses were received: four from potential competitors (Booz Allen Hamilton, Inter-Coastal Electronics, CT 2.78

J&A No. 26,078

Ravenswood Solutions, and Hatalom Corporation) and one from the incumbent OEM (Saab, Inc.).

The evaluation of responses revealed that none of the potential competitors demonstrated the capability to fully replace Saab, Inc. as the prime contractor. Saab, Inc. as the OEM, is the only company that has access to all design and technical documentation required for comprehensive lifecycle sustainment and enhancement of all MCTIS components and their interfaces. None of the non-OEM responses demonstrated an ability to substitute a new solution for the existing OEM solution. Hatalom Corporation's executed teaming agreement with Saab, Inc. allows them access to certain technical data as a subcontractor, but not as a prime. Booz Allen Hamilton proposed an Application Programming Interface/Nondisclosure Agreement (API/NDA) approach that would not provide full technical data access and would present significant challenges and limitations. Inter-Coastal Electronics suggested a potential partnership with Saab, Inc. rather than a direct replacement. Ravenswood Solutions directly stated that they lack a technical data license or agreement with Saab, Inc. Based on market research, it was determined that Saab, Inc. is the only source capable of providing the required MCTIS Lifecycle Support due to their status as the OEM, and exclusive access to proprietary technical data.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A to be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

Based on the factors outlined in paragraph 5, PM TRASYS does not currently have the ability to compete contracts for the services described in this document. Given the prohibitive cost of acquiring the TDP from Saab, Inc. PM TRASYS is unable to pursue this avenue for removing barriers to future competition at this time. No other viable alternative sources were identified through market research.

PM TRASYS is actively monitoring and evaluating emerging technologies for force-on-force instrumented training, including utilizing optical-based tracking, geo-paired systems, and integrating Augmented Reality, which may offer alternative solutions and enable future competition. PM TRASYS will continue to conduct market research to identify potential alternative sources and technologies that could enable future competition for force-on-force training systems.

If a viable alternative source emerges, PM TRASYS will take necessary actions to ensure fair and open competition, if deemed feasible.