TAB A_MCSC_CJA_19133.1_ACV_MRV_FRP_RDA(Rev01-signed)_redacted.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO, VIRGINIA 22134-6050

IN REPLY REFER TO

CT 028-PEO LS

CJ&A No. 19,133.1

CLASS JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

(Amendment (1))

Except for the amendments herein, the rationale for other than full and open competition remains unchanged.

1. Contracting Activity

Marine Corps Systems Command

PEO LS

Program Manager Advanced Amphibious Assault (PM AAA) 2200 Lester Street Quantico, VA 22134-6050

2. Description of the Action Being Approved

Amendment (1) to the CJ&A approving the use of other than full and open competition to award sole source contract modifications to the current ACV FoV contract, number M67854-16-C-0006 with BAE Systems Land & Armaments LP (BAE), 34201 Van Dyke Avenue, Sterling Heights, MI 48312-4648, to manufacture, deliver, and provide fielding support for the ACV MRV production vehicles.

The purpose of this amendment is to increase the estimated dollar value, revise the funding profile for Fiscal Years (FYs) 22, 23, and 24, and include FY25 and FY26 funding for the Amphibious Combat Vehicle (ACV) Family of Vehicles (FoV) contract for the manufacture, delivery, and fielding support for up to command and control (ACV-C), maintenance/recovery (ACV-R), and medium caliber cannon (ACV-30) Mission Role Variant (MRV) production vehicles.

Under CJ&A 19,133.0, the Marine Corps identified contract modifications for the initial design activities of the MRVs, procurement of up to four Production Representative Test Vehicles (PRTVs), vehicle testing support and corrective action applications, and associated data for each MRV. All deliverables resulting from these modifications under CJ&A 19,133 were to be complete no later than September 2025.

CT 028-PEO LS

CJ&A No. 19,133.1

The original CJ&A 19,133.0 was limited to the design, manufacture and testing of the MRV PRTVs and did not address the quantities and estimated dollar value for manufacture, delivery and testing of the production MRVs. The amended CJ&A 19,133.1 adds the production quantities and estimated dollar value for the MRVs based upon the current Approved Acquisition Objective as part of Force Design 2030 and in recognition of the Milestone Decision Authority authorizing procurement of the ACV MRV production vehicles1. All deliverables resulting from these modifications under CJ&A 19,133.1 will be complete no later than June 2027.

Authority to act under this class justification expires on 30 June 2027.

3. Description of Supplies and Services

The ACV is an Acquisition Category IC program intended to provide expeditionary protected mobility and general support lift to a Marine infantry battalion as part of a Ground Combat Element (GCE) based maneuver task force. The ACV will enable the GCE to conduct, support, sustain, and maneuver armored formations in both close and extended combat. The ACV will also close and mitigate capability gaps within the Assault Amphibian (AA) Battalion. The Marine Corps awarded a contract to BAE to procure ACV Personnel (ACV-P) vehicles.

Headquarters Marine Corps, Combat Development & Integration identified a requirement for three ACV MRVs to complement the ACV-P and support the operational requirements of the AA Battalions. These include an ACV-C, ACV-R, and ACV-30.

Introduction of the MRVs established the ACV FoV.

The ACV-C and the ACV-R modernize legacy Assault Amphibious Vehicle command and control and maintenance/recovery capabilities resident in the AA Battalion of the Marine division. The ACV-30 represents a lethality upgrade for a portion of the ACV personnel carrier inventory.

1A Gate 6 Full Rate Production (FRP) Review for the ACV FoV program was conducted on November 20, 2020. Program Executive Officer Land Systems (PEO LS) was authorized to procure FRP units for the ACV-P MRV and was instructed to brief ASN RD&A status of ACV-C, ACV-30, and ACV-R prior to awarding production contract options.

Estimated Dollar Value

The original Independent Government Cost Estimate (IGCE) of for the initial design of the MRVs, PRTV build, and testing, did not include the costs associated with the MRV production vehicles. Based on the revised IGCE, the estimated dollar value for the proposed action is , which is more than if the program were to procure the same quantity of ACV-P vehicles instead of MRVs. The estimated dollar value, if fully executed, for this procurement is increased to . The funding profile is illustrated in the below table by fiscal year and includes costs for Contractor Furnished Equipment, Engineering Change Orders, Government Furnished Equipment (GFE) for the Communication Suites, and GFE for the Weapon Stations. In addition, the table lists the quantity and unit price for each MRV by FY and provides the unit price of the competitively awarded ACV-P for comparison purposes. The last row of the table shows the additional cost of procuring MRVs instead of ACV-P vehicles.

The table is based on the IGCE and represents what the program believes are fair and reasonable prices for each MRV. The slightly higher ACV-C cost compared to the ACV-P is driven by the ACV-C’s unique capabilities, including its the ACV-C’s lower production quantity and the additional components required to support the installation of the .

The higher cost of the ACV-30 compared to the ACV-P is driven by the addition of a

The higher cost of the ACV-R compared to the ACV-P is driven by the lower production quantity and addition of a

Estimated Dollar Value

FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 TOTAL

MRV

Design/ PRTV Build/

Testing

(RDT&E) $

ACV-C qty ACV-C unit price ACV-R qty ACV-R unit price ACV-30 qty

ACV-30 unit price ACV-P unit price1

MRV Prod

(PMC)2 - - -

Total MRV Delta MRV to ACV-P

(PMC)

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting use of other than full and open competition for this action is 10 United States Code (U.S.C.), § Section 2304(c)(1) as implemented by the Federal Acquisition Regulation (FAR) Section 6.302-1(a)(2)(ii) “Only One Responsible Source and No Other Supplies Or Services Will Satisfy Agency Requirements”.

1 Prices in this line are provided for comparison purposes only and are not included in the “Total MRV” price. Thus, e.g., for FY22, the “MRV Design/ PRTV Build/Testing (RDT&E)” row value , plus the “MRV Prod (PMC)” row value , equals the “Total MRV” row

. This total is higher than the total would be based on the ACV-P price, which would be or . The per vehicle delta for FY22 is , for a total price delta for FY22 of

2 “MRV Prod (PMC) equals the quantity multiplied by the unit price. For example, for FY22, this value equals the ACV-C quantity of multiplied by the unit price of , for an “MRV Prod (PMC)” total value of

5. Rationale Justifying Use of Cited Statutory Authority

At the end of the competitive Engineering Manufacturing and Development phase under the current ACV contract, M67854-16-C- 0006, and upon careful consideration of both designs as well as production proposals, on 27 June 2018, the Government selected BAE to manufacture the Low Rate Initial Production (LRIP) and FRP vehicles. Under contract M67854-16-C-0006, BAE is responsible for the design, build, test, associated test equipment, and support for the ACV-P vehicle and the design, build, and test of ACV MRV PRTVs.

The ACV MRV production vehicles share a common base vehicle platform with the ACV-P, which avoids significant duplication of design and manufacturing process development costs and reduces sustainment costs of fielded vehicles by the use of common repair parts and procedures. The base vehicle platform for all ACV variants is a Non-Developmental Item (NDI) developed at Contractor expense. The Government does not possess the Technical Data Package (TDP) and associated rights for the NDI base vehicle platform and, therefore, cannot solicit competitive proposals to manufacture the MRVs as currently designed using the base vehicle platform. Based on the EMD contract, selecting a company other than BAE to manufacture the MRVs would require redesign of the base vehicle platform and MRVs, which would duplicate in costs and delay delivery of vehicles to Marines by at least four years, which is unacceptable because it would require the unplanned extension of the service life of the 40+ year old Assault Amphibious Vehicle.

Duplication of Costs Through Inclusion of a New Source Cost Category Assumption/Calculation

New base vehicle EMD contract

Average price of previous EMD contracts

Government Furnished Property

Based on costs incurred to provide GFP to one EMD Contractor.

Government Test & Test Support

Based on costs incurred during original base vehicle EMD

New ACV-C EMD contract Cost of previous ACV-C EMD

New ACV-30 EMD contract Cost of previous ACV-30 EMD efforts to date

Total Duplication of Costs

To confirm no other companies were capable of manufacturing the MRVs, PM AAA issued a sources sought notice on February 3, 2021.

BAE and were the only two companies to respond. response was found to be deficient as described in paragraph 6 below. Based on the lack of respondents and deficient response, BAE is the only company interested in and capable of producing the MRVs.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

In accordance with Defense FAR Supplement Procedures, Guidance and Information 206.302-1, on January 28, 2019, the Government issued a sources sought notice, M67854-19-R-0028, to FedBizOpps to assess industry’s capability to design the MRVs. In addition to BAE, responses were received from

. Representatives of the Program Office reviewed these responses and found the following: 1) While claims to have previous experience in reverse engineering vehicle platforms, without the TDP, the extent of the reverse engineering would increase performance risk and would result in MRVs that have minimal commonality with the ACV-P; 2) Although has experience with integrating different variants onto their

, the configuration differences between the and the ACV-P would result in MRVs that have minimal commonality with the ACV-P variant; and 3) provided information on their turret system, but did not provide a plan to develop any MRVs for ACV. Based on the Government’s assessment of the responses received, the Government determined that BAE was the only known source able to design, manufacture, and deliver the MRVs/PRTVs that maintain commonality with the

ACV-P.

On February 3, 2021, a sources sought notice for the proposed action, M67854-21-R-0014, was posted to Beta System for Award Management (beta.SAM) to assess industry’s capability to manufacture, deliver, and provide fielding support for the MRVs.

Only BAE and responded.

Representatives of the Program Office reviewed the responses and found response consisted of only two questions regarding the lethality of the ACV-30 — did not provide its qualifications for manufacturing, delivering, or fielding support for the three MRVs. On February 16, 2021, the Government updated the sources sought notice via beta.SAM with questions and the Government’s answers. did not respond to the updated sources sought notice. Based on the Government’s assessment of the responses received, the Government determined that BAE is the only known source able to manufacture, deliver, and provide fielding support for the MRVs that maintain commonality with the ACV-P. As such, the Government did not conduct any additional market research for the proposed action.

7. Determination of Fair and Reasonable Cost

No change is required to this paragraph.

8. Actions to Remove Barriers to Future Competition

For reasons set forth in paragraph 5, PEO LS has no plans to compete future contracts for the manufacturing, delivery, and fielding support activities covered by this document.

A TDP for the ACV MRVs is not currently available to facilitate competition. The LRIP/FRP contract includes a TDP option Contract Line Item Number for the ACV-P TDP, which PM AAA may exercise during the second FRP lot. If the Government receives the TDP, future MRV actions will be reviewed by the Program Office to determine actions to offer competition to the greatest extent possible.

SENIOR PROCUREMENT EXECUTIVE APPROVAL:

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. § 2304 (c)(1) as implemented in FAR 6.302-1.