Signed JA(FMTV)12 Dec 23 (25JUN24)_Redacted.pdf

CMO Control Number: 2023-099

Justification Review Document for Other than Full and Open Competition

Program/Equipment: Combat Support & Combat Service Support (CS&CSS), Project Manager Transportation Systems (PM TS), Product Director Multi-Mission Protected Vehicles Systems (PdD MPVS), Family of Medium Tactical Vehicles (FMTV)

Authority: 10 United States Code 3204(a)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii)(A)(B)

Amount: $696M

Prepared by:

Ms. Marla Dalzell DSN: 786-3743 Procurement Specialist Date:

marla.k.dalzell.civ@army.mil

Contracting Officer:

Mr. Charley G. Jackson DSN: 786-6613 charley.g.jackson.civ@army.mil Date Reviewed:

Technical Representative:

Zina J. Kozak-Zachary DSN: 786-5569 Project Manager Date Reviewed:

Transportation Systems zina.j.kozak-zachary.civ@army.mil

Requirements Representative:

Zina J. Kozak-Zachary DSN: 786-5569 Project Manager Date Reviewed:

Transportation Systems zina.j.kozak-zachary.civ@army.mil

Controlled by: US Army, PEO CS & CSS Controlled by: PdD MPVS CUI Category: PROCURE, OPSEC Limited Dissemination Control: FEDCON POC: MAJ Nicholas Corby

(586) 298-0092

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DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command – Detroit Arsenal (ACC-DTA), Detroit Arsenal, MI 48397 is the contracting activity for this action.

2. Description of Action: This action is for a modification to the existing competitively awarded seven-year Requirements contract (five-year base with two one- year options), W56HZV-18-D-0010, with Oshkosh Defense, LLC (Oshkosh) to procure Family of Medium Tactical Vehicles (FMTV) hardware and services. This modification extends the contract by three years, revising the expiration date from 06 February 2025 to 06 February 2028. The modification is adding Firm-Fixed-Price (FFP) and Cost-Plus- Fixed-Fee (CPFF) Contract Line Item Numbers for Hardware, System Technical Support (STS) hours, Maintenance Technical Representative (MTR), Total Package Fielding (TPF) hours for Fiscal Year (FY) 2025 through FY 2028. The anticipated funding for this action is from FY 2025 through FY 2028 Other Procurement Army (OPA), Other Department of Defense (DoD) agencies Procurement and Foreign Military Sales (FMS) funds.

3. Description of Supplies/Services: The FMTV A2 is comprised of several variants of the eight-ton Medium Tactical Vehicle (MTV) and three-ton Light Medium Tactical Vehicle (LMTV). FMTVs are multi-purpose transport and utility vehicles that provide for rapidly deployable worldwide operations on primary and secondary roads, trails, cross-country terrain, and are operable in all weather and climatic conditions. FMTVs are used for combat operations and civil disaster relief necessary by the active and National Guard reserve components of the Armed Forces for homeland defense missions, domestic emergency responses, and providing military support to civil authorities. The vehicles operate throughout the theater as a multi-purpose transportation vehicle used by combat, combat support, and combat service support units. The Army needs FMTV variants built to the current A2 Technical Data Package (TDP) to supplement the aging two and a half and five-ton MTV truck fleet, modernize the aging FMTV Low Velocity Air Drop (LVAD) fleet and fulfill Integrated Fires Mission Command (IFMC) and Command Post Integrated Infrastructure (CPI2) program requirements currently undergoing integration and testing utilizing A2 vehicles.

The following FMTV truck and trailer models, along with over 19 various kits (not listed below), such as Underbody Armor Kits (UAKs), B-Kits, Arctic Kits, Tarps & Bows, etc., are available under this contract for the three-year extension. The B-kit is the only new item being added to this contract, which was not part of the first seven years of this contract.

M1078A2 2355-01-654-5306 LMTV Cargo M1079A2 2355-01-654-5324 LMTV Van M1080A2 2355-01-654-5286 LMTV Chassis M1081A2 2355-01-708-2171 Three Ton Cargo LVAD M1083A2 2355-01-654-5294 MTV Cargo

M1084A2 2355-01-654-5311 MTV Cargo with MHE* M1085A2 2355-01-654-5212 MTV Cargo, LWB** M1086A2 2355-01-654-5308 MTV LWB** Cargo with MHE M1087A2 2355-01-654-5321 MTV Expansible Van M1088A2 2355-01-654-5319 MTV Tractor M1089A2 2355-01-654-5325 MTV Wrecker M1092A2 2355-01-654-5314 MTV Chassis M1093A2 2355-01-708-2100 Eight Ton Cargo LVAD with winch M1094A2 2355-01-708-2257 Seven Ton Dump LVAD with winch M1096A2 2355-01-654-5279 MTV LWB** Chassis M1148A2 2355-01-654-5245 Load Handling System Truck M1157A2 2355-01-654-5323 10 Ton Dump M1157A2 2355-01-654-5304 10 Ton Dump with winch M1273A2 2355-01-655-0840 MTV 10 Ton Chassis M1082 2330-01-449-1775 MTV Trailer, Cargo M1095 2330-01-449-1776 MTV Trailer, Cargo M1147 2330-01-508-7887 MTV Trailer, Load Handling System

* Material Handling Equipment (MHE) ** Long Wheel Base (LWB)

The following services/items are also available under this contract for the three-year extension.

• Program Management and Log Management Support (FFP)

• C-kits, B-Kit & other kit installation (FFP)

• Corrosion Prevention Compound (CCP) (FFP)

• Alternate & Overspray Paint Configurations (FFP)

• STS efforts Cost-Plus-Fixed-Fee (CPFF) (For both A2 and A1P2)

• MTR support (CPFF)

• TPF support (CPFF)

This action will add an estimated $696M to the contract value for FY 2025 through FY 2028, as stated in the table below. This will result in a total estimated contract value of $1.56B for the 10-year contract duration when adding to the current obligation of $864M as of 22 August 2023.

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*Event timelines may run concurrently. Total of 49 months is without the concurrent events.

d. Background data for supporting Duplication of Cost and Unacceptable Delay

1) TDP and Data Rights:

i. The Government procured the A2 TDP and received the first draft of the production Level III TDP with unlimited rights in June of 2023; a three-year delay from the original expected delivery of 01 June 2020. Thus, preventing the Government from executing a competitive action at this time. The Government intends to review, validate, and ensure the TDP is approved and suitable for competition by 31 December 2023.

ii. If the contract were to be recompeted, all completed development for LVAD would need to be conducted again. This cost of $17.9M is calculated using actual LVAD development expenditures under the current contract. In addition, Government-funded LVAD development commenced with task order award on 30 July 2021 and will need to continue past 06 February 2025 under this current contract. This development time of 42 months up through 06 February 2025 would need to be repeated with a new contractor.

2) Source Selection Evaluation Board (SSEB):

Based on historical average from the ACC-DTA Source Selection Support Center of Excellence for a procurement of this complexity, the estimated time it takes to conduct a competitive award is 8 months. The SSEB process is comprised of staffing and convening a SSEB, conducting all Source Selection activities, to include briefings and de-briefings, through contract award.

3) Test Asset Build for Government Testing and Logistic Evaluation:

Based on testing requirements under the current contract, a contractor other than Oshkosh must produce 44 trucks, four trailers, and a mixture of nine kits for testing before proceeding to production. To produce the vehicles, a contractor other than Oshkosh will have to update tooling and would incur start-up costs. Understanding that all test assets (less the live fire vehicles) can be refurbished and fielded (thus making it not a duplication), the cost of $3.2M was calculated by only taking the delta between what might be expected for a test vehicle versus a regular production vehicle. A source other than Oshkosh must build test vehicles and pass both performance and ballistic testing before proceeding to production. Oshkosh has already built test vehicles and passed Live Fire Test (LFT), PVT & Operational Test (OT) testing; therefore, Oshkosh is not required to build additional test vehicles. A new source would need time to build and provide vehicles for testing, and if competed, this would cause a delay of 15 months. This would consist of five months for part lead time and 10 months production.

4) Vehicle Testing:

i. If a source other than Oshkosh is utilized, the Government will incur approximately $28.1M in duplicate costs, which are based on actual values from the current contract for performance and ballistic testing consisting of PVT, Reliability and Maintenance (RAM), LFT, OT and test maintenance support. To proceed to production without testing would lead to a high risk of premature failure of the vehicles, which could lead to loss of equipment and possibly put soldiers’ lives at risk. Oshkosh has already passed testing; therefore, Government test costs will not be incurred on the contract extension. In addition, it is estimated that it will take another contractor 20 months to complete the LFT, PVT, RAM and OT required to pass First Article Testing.

ii. Contractor Test Support Personnel is required from a source other than Oshkosh during vehicle testing. This amount of $23.0M is based on actual values from the current contract. Oshkosh has already passed testing;

therefore, Oshkosh will not be required to provide Contractor Test Support on the contract extension.

iii. The cost of $23.0M does not account the potential duplication of costs incurred by CPI2 and IFMC. CPI2 would potentially incur $500K-$1M of duplicate costs for safety release and safety testing leading to materiel release. IFMC will incur an estimated $5M in re-integration and testing costs alone for Army Test and Evaluation Command services, which does not include various other associated costs such as shipping, or personnel/manpower required for test support focused on the A2 produced by Oshkosh.

5) Contractor System Engineering and Program Management (SEPM):

If a source other than Oshkosh was used, the new contractor would likely incur higher initial Program Management costs to learn, understand, and properly run the program along with seeing through test and production set up. The additional costs are estimated at $3.2M.

6) Logistic Management and Logistics Product Data:

If a source other than Oshkosh is selected and utilized, a new A2 Supportability Package would need to be developed, validated, and verified, along with updates to the Logistics Support Analysis Data which includes Integrated Product Support; Failure, Mode, Effects and Criticality Analysis; Reliability-Centered Maintenance; Maintenance planning;

platform line is re-opened. Any delay to production and delivery would drastically and negatively affect IFMC’s ability to provide Government Furnished Equipment to the IBCS manufacturer meeting Full Rate Production contractual obligations enabling IBCS Major End Item production, as well as fielding in accordance with the Army modernization strategy and guidance to field the IBCS capability to two Patriot Battalions per year beginning April 2024. IFMC has estimated that a new vendor would cause an approximate two-year delay and would negatively affect the planned IBCS modernization affecting 75 Units.

6. Efforts to Obtain Competition:

a. Effective competition. The Government does not anticipate competition for this effort. This action will be synopsized in accordance with FAR 5.201, Publicizing Contract Actions.

b. Subcontracting Competition. The contractor is required to submit a Small Business Subcontracting Plan in accordance with FAR 52.219-9 and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219- 7003.

7. Actions to Increase Competition: This sole source contract extension for the FY 2025 - FY 2028 FMTV A2 requirements will continue to utilize the A2 TDP delivered in June 2023 (yet to be validated and approved by the Government) and current A2 Performance Specification. After this three-year extension, the Army plans to award a competitive contract to produce this new A2 configuration vehicle to the A2 Performance Specification and the Level III TDP once validated and approved. Once the Level III TDP is approved, the PdD MPVS will start building a requirements package for a FY 2028 - FY 2038 competitive solicitation and contract award for the tested and approved A2 configuration. The contract extension will act as a bridge to the competitive contract and will allow the Government time necessary to finalize the competitive acquisition strategy, release the solicitation, evaluate proposal submittals, award to a competitively selected offeror, build and test vehicles, and begin full rate production sometime in FY 2029 while satisfying Army and customer requirements during the FY 2025 – FY 2028 timeframe.

8. Market Research: PdD MPVS conducted market research in March 2023 to identify sources considered viable competitors for the production of FMTVs. On 23 April 2023, ACC-DTA posted a Sources Sought Notice on SAM.gov for the production of FMTVs.

The notice closed on 24 April 2023 with an extension granted to 28 April 2023 resulting in three responses. The responses provided information regarding production capabilities and potential subcontractor opportunities. While other contractor entities may possess the knowledge and expertise associated with producing the FMTVs, none except Oshkosh, who has completed LFT, PVT, Developmental Test (DT), and OT, can produce the needed FMTVs to meet the vehicle requirement to ensure there is no delay in fielding FMTVs.

Sources Sought Information

Vendor Name Location Capability Oshkosh Defense, LLC Oshkosh, WI Very capable of meeting the contract requirements. Current supplier of FMTV A2s to the Government. Completed LFT, DT & OT.

Mack Defense Allentown, PA Current supplier of the Heavy Dump truck for the Government and Prototypes for Common Tactical Truck and Family of Heavy Tactical Vehicles for Government and Prototypes for the Canadian Dept of National Defense.

Advanced Global Resources, LLC

New Boston, TX

Does not produce new vehicles. Currently supports FMTV reset efforts for DoD and FMS.

Provides technical and logistics services in support of Aerospace and Ground Systems manufacturing.

9. Interested Sources: As indicated above, three contractors responded with interest for the FMTV contract. However, for the reasons stated in paragraph 5(c) above, awarding the FY 2025 – FY 2028 requirements competitively creates an unacceptable delay.

10. Other Facts:

a. Procurement History.

(1) Contract W56HZV-18-D-0010 was awarded to Oshkosh on 07 February 2018 under full and open competition for five years, plus two one-year options for a total of seven years. This is the first contract for the FMTV A2. As of 22 August 2023, the Government has awarded 1,999 vehicles, 982 trailers, UAKs, B-Kit installs and STS efforts with a dollar value of $864M.

(2) Modification P00010 to Contract W56HZV-18-D-0010 was awarded on 31 July 2019 using other than full and open competition to add STS requirements for the entire “Family” of Medium Tactical Vehicles, not just the FMTV A2. The Competition Advocate Official at ACC-DTA approved the J&A, Competition Management Office (CMO) Control Number 2019-026, on 17 January 2019. The J&A was approved utilizing FAR 6.302-1(a)(2)(ii)(A), "Only one responsible source and no other supplies or services will satisfy agency requirements”. Specifically, FAR 6.302- 1(a)(2)(iii)(A), for DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.

(3) As stated in Paragraph 10.a(1), the current contract was originally awarded under full and open competition with “Family” STS requirements added under other than full and open competition. Paragraph 7 of the justification for these STS services stated that “the Government plans to acquire future STS requirements for the FMTV as part of the next FMTV production contract using full and open competition.”

(4) As stated in Paragraph 10.a(1), the current FMTV A2 contract was originally awarded under full and open competition. A detailed explanation of the changed circumstances causing this action to limit the sources can be found in Paragraph 5 above.

(5) There are no unusual patterns identified in the procurement history.

(6) There were no previous justifications prepared for the FMTV A2.

b. Other facts. N/A

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