Signed J_A_TSS_NRE_Redacted.pdf

UNITED ST ATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO VIRGINIA 22134-50 I 0

JUSTIFICATION AND APPROVAL

INREPLYREFER TO:

CT 028-PEO LS

J&A No. 20,151

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Marine Corps Systems Command (MCSC) Program Executive Officer Land Systems (PEO LS) Program Manager, Advanced Amphibious Assault (PM AAA) 2200 Lester St Quantico, VA 22134-6050

2. Description of the Action Being Approved.

This justification seeks approval for the use of other than full and open competition to award a sole source, firm-fixed-price (FFP) contract to L3Harris, 7500 Innovation Way, Mason, Ohio 45040, for the procurement of Phase I of the M36E-Tl Thermal Sighting Systems (TSS) Non RecmTing Engineering (NRE) effort. Justification and Approval (J&A) number 19,318 was approved on 09 September 2019 for the use of other than full and open competition to award a sole source, FFP indefinite delivery/indefinite quantity (IDIQ) single award contract for the procurement of M36E-Tl TSS, including the associated NRE. This proposed contract action will provide the ability to conduct Phase I NRE efforts to address obsolescence issues while concurrently executing the FFP IDIQ single award contract to L3Harris for the procurement of the M36E-Tl TSS. The proposed contract period of performance is four months.

3. Description of Supplies/Services.

The proposed contract action will procure the Phase I portion of the M36E-Tl TSS NRE. The seven-month NRE effort will be conducted in two phases with Phase I NRE perfmmed under this proposed contracting action and Phase II NRE performed under the proposed single award IDIQ contract approved by J&A 19,318. The NRE effmi addresses on-going obsolescence issues to replace the Cathode Ray Tube (CRT) with a qualified Liquid Crystal Display (LCD) screen, which will provide a significant improvement in reliability, and to replace the obsolete Circuit Card Assembly (CCA) with a revised design that will offer enhanced sustainability, in conjunction with maximized volume, to provide an optimal path for affordability. The four month Phase I NRE eff mi will perform the CRT to LCD transition from project initiation through Test Readiness Review (TRR) as well as the CCA redesign from project initiation through initial execution of the Design Verification Testing (DVT) procedure. The Letter of Offer and Acceptance (LOA) between the United States of America (USA) and the Taiwan unofficial entity, Taipei Economic and Cultural Representative Office (TECRO), dated 16 May 2016, providys for the TSS requirement.

As shown in the table below, the estimated dollar value for this procurement is , which will be funded with TECRO Foreign Military Sales (FMS) case funds.

Funding Summary

Appropriation Estimated Dollar Value in $

FMS

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition for this action is 10 U.S.C. 2304(c)(l ) , as implemented by Federal Acquisition Regulation (FAR) 6.302- l(a)(2)(ii) "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Rationale Justifying Use of Cited Statutory Authority.

The M36E-Tl TSS is included in the USMC AA V7Al RAM/RS Family of Vehicles approved configuration currently in the sustainment phase of the acquisition life cycle. L3Harris owns the M36E-Tl TSS proprietary design, and has not licensed the design to the Government, any other US, or international company for manufacturing. The Phase I NRE effort is integral to the overall development and production of the M36E-Tl TSS and is the precursor to the Phase II NRE effort. In addition to owning the M36E-Tl proprietary design, L3Harris possesses the requisite technical expertise and established supplier network to resolve the aforementioned obsolescence issues through the NRE effort. Entertaining another offeror to conduct Phase I of the NRE effort would cause a duplication of development cost and significant schedule delays of the TSS delivery in support ofTECRO. As such, the Government concludes that L3Harris is the only manufacturer capable of perfonning the M36E-Tl TSS Phase I NRE effort in a timely and cost effective manner.

The same rationale articulated in J &A 19,318 justifying L3Harris as the only responsible source for the procurement of the M36E-Tl TSS also applies to the associated Phase I NRE effort. The Government estimates that qualifying a new source would take a minimum of 18 to 24 months at a minimum cost that would not be recovered through competition. The duplication of costs estimate is derived from the market research response where L3 Technologies explained costs previously expended to design, develop, test, and qualify their current M36E-Tl TSS system.

If the design of the M36E-Tl TSS were to be competed, the Government estimates that approximately 24 months would be required to establish the manufacturing capability and conduct First Article Testing and an additional 12-18 months for the production period of performance. If awarded to L3 Technologies, the production period of performance for all deliverables ( excluding training in- country) estimated to be 12-18 months could begin immediately upon award. The additional expense and time needed to qualify a new source of supply will not support the Government's delivery schedule or budget.