PR11491679_Approved Justification.pdf

PR11491679 – INL Kyiv MRAPs

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

FAR Part 6.3

1. Identification of the agency and the contracting activity.

The Department of State, Office of Acquisition Management (A/OPE/AQM), proposes to award a sole-source contract to Roshel Inc., of Canada, to provide eighty (80) Mine Resistant Ambush Protected Vehicles (MRAPs) and associated spare parts on behalf of the Bureau of International Narcotics and Law Enforcement Affairs (INL) to support foreign-assistance programs in Ukraine. The total estimated cost is

2. Nature and/or description of the action being approved.

Approval to negotiate and award a non-competitive contract to Roshel Inc. for the provision of the items described in paragraph 3 of this justification. The Government intends to award a Firm-Fixed-Price (FFP) contract to include delivery. However, the Government may consider awarding delivery costs on a reimbursable basis if advantageous to the Government.

3. A description of the supplies or services required to meet the Department’s needs.

The Government requires the purchase of the following items to be delivered no later than ninety (90) calendar days after award of the contract.

For the following reasons, delay in award of a contract will result in serious injury, financial or other, to the Government. Law enforcement personnel at SBSG and NPU are currently operating near the frontlines and are exposed to regular shelling by Russian forces, in addition to landmines and other explosives - their personnel need more reliable cover and protection while rendering law enforcement duties in these mine and explosive loaded areas.

The acquisition of MRAPs will provide law enforcement and border security agencies in Ukraine with enhanced safety and protection, responding to the increasing threats that officers are facing. MRAPs are designed to withstand various forms of attacks and threats, including explosive devices, small arms fire, and improvised weapons. With the necessary equipment, officers can safely and effectively carry out their duties in high-risk areas.

Moreover, MRAPs are versatile and can be used in a variety of situations, including urban, rural, and off-road environments, making them an ideal choice for law enforcement agencies in Ukraine, where the terrain and environment can vary greatly. By acquiring MRAPs, law enforcement agencies will have the necessary equipment to enhance their operational capabilities and carry out their duties more effectively and efficiently.

• Eighty (80) MRAPs meeting the following minimum specifications:

o Ballistic Certification: STANAG 4569 level 2 o Mine Blast Certification:

▪ STANAG 4569 level 2a; and

▪ Side explosion (IED): 15 kg TNT.

o Preferably built on a Ford F450 – F650 chassis. This requirement is due to the familiarity of host-country personnel and availability of replacement parts.

o Engine designed to utilize high-sulfur diesel.

o Approximately 330 HP o Torque of at least 750 lb-ft at 2000 rpm o Seating capacity for 6 – 10 passengers o All-wheel drive o Military-grade tires. Rims with RunFlat inserts.

o Operational range of at least 600 km o At least 5 gunports (two on each side and one at the rear) o Roof hatch with 360-degree rotating turret

• Spare parts package, to include transparent armor and tires.

4. An identification of the statutory authority permitting other than full and open competition.

This acquisition is conducted under the authority of 41 U.S.C. 3304, as implemented by FAR

6.3 and substantiated by the following: FAR 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

Based on the market research conducted, as supplemented by the special notice posted to the System for Award Management (SAM), no other contractor can deliver the required number of MRAPs within the stipulated delivery timeframe. Other contractors’ production capabilities and/or current commercial commitments do not allow for a significant number of MRAPs to be delivered within ninety (90) days.

Roshel proposed to deliver 80 units within 60 days, and subsequently, they can ship over units each month.

Production Capability: The company has units in production and currently available. Current production times are months for new builds. For larger quantities:

• 50 Units: Months

• 100 Units: Months

Vehicle: Company stated that requested armoring standards require clarification as it relates to the 20 kgs TNT side blast, as this is not a STANAG 2a requirement nor a CEN B7 requirement. Company stated that its vehicle meets INL requirements.

Price: Estimated pricing for this model is per vehicle.

Production Capability: Company stated that the first batch of vehicles will take approximately weeks to produce and additional vehicles will be ready at a rate of vehicles every weeks.

• 50 Units: Months

• 100 Units: Months

Vehicle: Company stated that the meets INL specifications.

Price: Estimated pricing for this model is per vehicle.

Production Capability: The dates provided below are from company’s receipt of Ford chassis.

• 50 Units: Months

• 100 Units: Months

9. Any other facts supporting the use of this justification.

As Roshel is located in Ontario, Canada, the purchase of the vehicles through a Canadian company will allow for export to Ukraine via an expedited ( week) export approval process by the Canadian government. The company also appears to have a robust support structure in Ukraine, providing a full cycle of support services.

10. A listing of any sources that expressed a written interest in the acquisition.

The following companies responded to the special notice posted to SAM. For the reasons stated below, the Government does not believe these companies propose viable alternatives to the current requirements.

The company is a US 8(a) small business. The company acknowledged receipt of the special notice. A capability statement was not provided.

The company, a US 8(a) small business, is not an MRAP manufacturer.

offered to utilize its 8(a) status to accomplish this procurement via a non-competitive basis under the 8(a) program. The company did not identify nor proposed a specific vehicle. In its response, the company stated that: “ will work with the manufacturer of your choice to procure and deliver the MRAPs of the Government’s preference within the specified timeline.”

, a US small business, provided information as part of market research efforts.

The company also responded to the special notice by stating: “We know that they ( ) are doing this type of work. We are glad you found a solution for your requirements.”

The company, a Ukrainian business, proposed its vehicle. The vehicle is manufactured in Ukraine and meets INL’s minimum requirements. The estimated price of the is competitive at approximately , with minimal shipping cost within Ukraine. The company offered in-country, to include service in conflict areas. can deliver vehicles per month starting from days after award of a contract. The proposed delivery timeframe is contingent upon the lead time required to receive Ford chassis.

Aside from not being able to meet the required delivery schedule, is not registered in SAM and stated in its response that it will require an advanced payment of of the contract price.

, a Canadian company, responded to the Government’s special notice by providing a capability statement and additional information via email.

The company proposed its vehicle with an estimated unit price of approximately . While the capability statement did not address the requirement for side blast testing, the company stated via email that the side blast certification was “available – pending customer requirements”.

In terms of delivery, in its first email the company stated that: “If the US government can supply the truck chassis, we could prepare units within the first days while we ramp up production to meet higher rates. If needs to secure the truck chassis, we will have to discuss the lead time with Ford.”

On a subsequent email, stated that: “Previous production rate achieved of units per month. We still had capacity available, and this is scalable upward. We could prepare units within the first days after receipt (emphasis added) of truck chassis. We could achieve a production rate of units per month after initial units are delivered.”

The Government has doubts regarding the company’s vehicles side blast certification and proposed delivery dates. The Contracting Officer contacted , President & CEO , via telephone on July 27, 2023, and explained the Government’s decision to move forward with a reduced quantity sole-source award to Roshel to be followed by a competitive procurement for the remaining vehicles.

, a US small business, submitted a generic capability statement that did not address the requirements of the special notice. The company did not identify specific vehicles and associated delivery time frame.

, a US service-disabled veteran owned small business, submitted its response on

July 10, 2023, after the due date stated in the SAM special notice. Nevertheless, in an effort to consider all information provided, the Government reviewed response.

proposed to deliver MRAP. The estimated unit price ranged from million, which greatly exceeds the estimated price of the other armored vehicles considered by INL. Additionally, stated that production time would be “ days depending on quantities ordered and based on current supply chain availability”.

The company also offered to deliver non-TAA complaint vehicles within days. The Contracting Officer informed the company that non-TAA compliant vehicles would not be considered.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

The Department of State originally planned to purchase one hundred and ninety (190) MRAPs from Roshel. However, as a result of information obtained via the posting of the SAM special notice, the Department of State has reduced the quantity of MRAPs to be acquired on a non-competitive basis from Roshel to eighty (80) units. The remaining one hundred and ten (110) units will be acquired utilizing competitive procedures.

This approach balances the need to augment and provide an almost immediate impact to our Ukrainian partners’ capabilities while taking advantage of competition to acquire the remainder of the required quantities.

I certify that this submission is accurate to the best of my knowledge, and that it contains complete information necessary to enable other officials to make an informed recommendation for approval or disapproval.

Contracting Officer

A/OPE/AQM/IP/INL

APPROVALS

Branch Chief

A/OPE/AQM/IP/INL

Division Director

A/OPE/AQM/IP

Advocate for Competition

A/OPE/AP

HEAD OF CONTRACTING ACTIVITY (HCA) APPROVAL

Head of Contracting Activity Office of Acquisitions Management