BMW_X5_JA_Sept_1_2015_FINAL_draft.pdf

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Identification of Agency and Contracting Activity: The U.S. Department of State’s

Office of Acquisitions Management (A/LM/AQM) is conducting this acquisition on behalf of the Defensive Equipment and Armored Vehicle Division (DS/C/PSP/DEAV) of the Bureau of Diplomatic Security (DS).

2. Nature and/or description of the action being approved: This justification and approval is for the award of a definitive contract for commercial items, on a sole-source basis, to O’Gara-Hess & Eisenhardt Armoring Company, LLC for the procurement of

BMW vehicles on a brand-name only basis and the armoring of those vehicles to

Department of State ballistic and blast protection standards.

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

(including the estimated value): DOS intends to acquire forty eight (48) armored mid-size

BMW X5s, to include a worldwide 2-year factory-manufactured warranty that is acceptable in 3,300 BMW service centers in 150 countries, for use at several DOS

Embassies. DEAV has requested the procurement for world-wide deployment at U.S.

posts. The estimated base unit vehicle cost will be $3,624,000.00 and the estimated armoring cost will be $5,472,000.00 for a grand total of $9,096,000.00.

4. An identification of the statutory authority permitting other than full and open competition: 41 U.S.C. 3304(a)(1), as implemented at 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 acquisition requires use of the authority cited: The BMW X5 is the only brand that meets the Government’s needs for a mid-size crossover base vehicle to be armored, as it provides unique capabilities required by the Government. BMW is the only vehicle manufacturer that has a direct relationship with a U.S. armorer to ensure acceptable baseline engineering quality, provides a complete armoring package that offers a uniquely integrated end product, and includes a two (2) year worldwide warranty.

Acquiring the BMW X5, and associated armoring system, reduces integration risk while simultaneously increasing end product quality. Further, acquiring the BMW X5 with its associated armoring package, the USG receives the full benefit of a BMW Germany warranty. By having this two (2) year warranty issued with each vehicle, the U.S.

Department of State will receive immediate benefits in obtaining servicing or any possible motor vehicle diagnosis and armoring issue at a BMW service center.

With respect to the armoring requirement, the BMW X5 is the only vehicle that is covered under a unique partnership between the manufacturer of the base platform, BMW North America LLC, and a U.S. vendor O’Gara-Hess & Eisenhardt Armoring

Company, LLC, that offers two-year certifications and warranties worldwide on not only the base vehicle but also the vehicle after being armored, which is not provided for a

BMW base vehicle armored by other armor vendors in the U.S. industry. GM, Ford, and other U.S. manufacturers do not offer an armored mid-size vehicle with any such certification or after-armor warranty from the manufacturer. O’Gara-Hess & Eisenhardt

Armoring Company LLC is the only U.S. source that manufactures and has an exclusive agreement with BMW North America LLC to offer such an exclusive warranty for worldwide use, which is necessary for our posts overseas to receive immediate servicing when needed.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable: A FedBizOpps notice will be publicized as required by FAR 5.2, along with a copy of the solicitation for all interested parties to review this opportunity. As required by FAR 5.207(c)(16)(i), the agency shall consider all proposals submitted by responsible sources in response to the FedBizOpps posting.

7. A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable: The Contracting Officer has reviewed the pricing established between manufacturer (BMW) and the armoring company. The

Contracting Officer has also reviewed the pricing offered to USAID, which recently purchased four (4) units along with past acquisition history for this specific vehicle and concluded that the offered price for forty-eight (48) vehicles is fair and reasonable.

8. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted: The Government has conducted informal market research online and spoken with experts in the industry along with reviewing the proprietary agreement between BMW North America LLC and O’Gara Hess and concluded no other potential competitor can meet this requirement.

9. Any other facts supporting the use of other than full and open competition: O’Gara-

Hess and BMW of North America LLC have supplied a copy of the redacted proprietary support agreement which supports the exclusive partnership and both manufacturers are well known in the vehicle industry for being capable of supplying armored vehicles at a high commercial quality standard with proprietary design specifications. In high threat post environments, it is necessary to drive more aggressively using quick maneuvers and high speed to mitigate vulnerabilities from organized attacks of small arms fire, and improvised explosive devises. In order for an armored vehicle to perform under these conditions it requires armoring that is lighter in weight and still provides the required level of protection.

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

N/A

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: This J&A for other than full and open competition will be published on FedBizOpps in accordance with FAR 6.305 within 14 days after award and the

Government will continue to check the marketplace to see if other armor vehicle manufacturers are able to offer similar solutions for future competitive opportunities.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that all supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or schedule requirements or other rationale for other than full and open competition) and which form a basis for the justification are complete and accurate.

//Signed// 09/01/2015

Jeff Howard Date

Division Director

DS/C/PSP/DEAV

REVIEWED BY:

//Signed// 09/02/2015

Deborah J. Koplen

Branch Chief

A/LM/AQM/DSCD/SB

Date

Sharon James

Division Director

A/LM/AQM/DSCD

LEGAL SUFFICIENCY REVIEW:

This J&A is hereby determined to be legally sufficient.

Dennis Gallagher

Assistant Legal Adviser

L/BA

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

I certify that this justification is accurate and complete to the best of my knowledge and belief.

//Signed// 09/03/2015

Patrick Dermidoff

Contracting Officer

A/LM/AQM/DSCD/SB

APPROVAL

//Signed// 09/03/2015

Raymond Bouford

Procuring Activity Competition

Advocate (Ref. FAR 6.501)

Office of Acquisition Management