SPRRA224R0017_Redacted JA.pdf

SPRRA2-24-R-0017

DDEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Program Executive Office (PEO) Ground Combat Systems, Mounted Armored Vehicle (MAV), Product Manager (PdM) Bradley Fighting Vehicle (BFV)and other services and commands supported by Defense Logistics Agency. The contracting authority for this requirement is Defense Logistics Agency – Aviation, Huntsville, Alabama, DLA-AH. The PdM BFV and the Defense Logistics Agency Aviation (DLA-A) Huntsville contracting division identified the need for long-term coverage on the production of the Iron Fist Active Protection System (APS), B-Kit, Part Number 13074593 that is sole-sourced to General Dynamics – Ordnance and Tactical Systems (GD-OTS), CAGE 05606. The Purchase Request Order Numbers (PRON) supporting this contracting action are forthcoming and will be initiated at the delivery order level.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described herein, this activity requests authority including production and installation of the Iron Fist APS B-Kit deemed sole sourced to GD-OTS, using Other Than Full and Open Competition as prescribed by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This action will result in the award of a new enterprise contract, which will be a firm-fixed price, 8-year Indefinite Delivery Requirements (IDR) type contract, with a maximum value of , with price redetermination to occur every 2 years. This sole-sources requirement will be negotiated with the following company:

General Dynamics – Ordnance and Tactical Systems Williston, VT 05495

CAGE: 05606

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The Government proposes an award on an 8-year IDR contract that provides contract coverage for production and installation of the Iron Fist APS B-Kit, PN 13074593, that supports the Bradley Fighting Vehicle (BFV) upgrade to the A4E1 version, which is sole source to GD-OTS.

The key overarching objective of the proposed contract is to provide a contract vehicle that has the breadth and depth of coverage to meet the Army’s needs to procure the Iron Fist APS B-Kit for the BFV upgrade to the A4E1.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. §3204(a)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED ABOVE

This will be a sole source procurement based upon the authority of 10 U.S.C. §3204(a)(1), as implemented by Federal Acquisition Regulation 6.302-1. Obtaining an alternate source or sources for the proposed eight years of support for these systems is not feasible or cost effective. As stated in Attachment 1, a market survey was conducted in June FY23 to determine potential candidates for the B-Kit. After consideration, it was decided that GD-OTS is the only source that can fulfill the Government’s immediate requirement for the Iron Fist APS. The US Government does not own the tools nor the test equipment to produce or install these parts. GD- OTS has been determined to be the only source with the engineering and logistical expertise, capability, and technical data to manufacture and deliver the material, and provide the associated installation and repair functions and other services that will satisfy requirements generated by the US Army (or other services) in support of customers worldwide. The technical data is proprietary or not otherwise available to the Government.

The Iron Fist APS B-Kit requirement presented from the PdM BFV program office does not have an associated Technical Data Package (TDP) or an assigned AMC/AMSC. However, one or more of the following AMC/AMSC descriptions that justify limiting competition would apply to the part. This information is certified by the signatures located on the attached Sole Source Determination Memorandum from the requirements office.

Applicable AMCs:

AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMC 4. Acquire, for the first time, directly from the actual manufacturer.

Applicable AMSCs:

AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part.

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation.

AMSC N. Manufacture of this part requires special test and/or inspection facilities to determine and maintain ultra-precision quality for its function or system integrity. Substantiation and inspection of the precision or quality cannot be accomplished without such specialized test or inspection facilities.

AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part.

AMSC Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months.

The requirement to document the contract file set forth by FAR 6.303-1(d) will be met.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized on System for Award Management (SAM.gov) as required by FAR 5.201. To obtain maximum competition, the synopsis will encourage firms that recognize and can produce the items described in Attachment 1 to identify themselves and to seek source approval in order to compete for future solicitations by going through the source approval process of the procuring activity.

In addition to a Synopsis, a Sources Sought will be published any time new parts are added to the contract.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this J&A will be fair and reasonable. GD-OTS will be required to provide certified cost or pricing data in accordance with FAR Part 15 for non-commercial items and DLA will use appropriate cost and/or price analysis to evaluate proposed prices prior to award and at each price redetermination negotiation.

Should data other than certified cost or pricing data be utilized, the Government's negotiation objective will be developed using local technical analysis, negotiated direct and indirect rates, and profit using the Weighted Guidelines Method. As necessary, a fully compliant audit may be performed and DCMA/DCAA assistance will be requested. Detailed documentation and justification of price reasonableness will be disclosed in the official price negotiation memorandum, as required, to be prepared upon completion of negotiations.

Inherent in the eight-year contract structure is an incentive to continue to improve reliability and drive down cost, which not only better serves the Department of Defense and other Federal Government customers, but results in better stewardship of taxpayer dollars.

These contracts will be negotiated assuming decreased costs associated with improved reliability and availability through the potential eight-year performance period of the contract.

Based upon the foregoing, the Contracting Officer shall determine that the anticipated cost to the Government, be fair and reasonable prior to contract award.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

Market research, as defined in FAR 10.001 was conducted. Attachment 2 contains the market survey that was conducted to determine that this requirement was sole source to GD-OTS.

The initial Sources Sought was issued on November 22, 2023, and closed on November 27, 2023. One vendor responded with an interest to become a qualified source. DLA sent the response to PdM BFV for their review and consideration; however, the Government does not own the technical data to provide the vendor. Additionally, PdM BFV recognized the vendor and stated that they would be suited for a different acquisition, of the A-Kit, which will be full and open competition, as the Government does own the technical data. DLA Huntsville acknowledged the vendor’s response to the sources sought and provided information back.

The Sources Sought was amended on December 12, 2023, to change the type of contract from a 3-year IDR, to an 8-year IDR Long Term Contract. The posting closed on December 15, 2023, and no responses were received.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION

As stated in the previous sections, a Sources Sought was posted on November 22, 2023, and December 12, 2023.

This requirement will be synopsized on SAM.Gov on or about January 15, 2024.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

The vendor PMG COS responded with an interest to become a qualified source. DLA sent the response to PdM BFV for their review and consideration; however, the Government does not own the technical data to provide the vendor. Additionally, PdM BFV recognized the vendor and stated that they would be suited for a different acquisition, of the A-Kit, which will be full and open competition, as the Government does own the technical data. DLA Huntsville acknowledged the vendor’s response to the sources sought and provided information back.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

MAKING SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES

Due to the complex nature of this work, there is currently no opportunity to remove barriers to competition at the prime contractor level. The Contracting Officer will continue to synopsize items that may be added to the contract in order to investigate the possibility of competition.

However, parts that have previously been synopsized will not be synopsized again throughout the length of the contract. The Competition Advocate will review the requirements to verify that all requirements can be completed by GD-OTS. As stated above, GD-OTS, a large business, is the only known source with the capability of furnishing the required logistics support.

Future requirements, other than those in the original population, will nevertheless be advertised in the SAM.gov in order to ensure that potential alternate sources are aware of the requirement and can identify interest in support for these items. The contract will include provisions stating that the Government reserves the right to remove any items that become competitive after award.

Firms are encouraged to seek Source Approval Process through the documentation and associated website to potentially become an approved source. No new sources have been approved at this time; however, this is a continuous method of identifying potential new sources of supply.

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document evidence that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

Attachments:

1. Iron Fist Sole Source Memo

2. Market Survey Evaluation