CAO-19-0247_Gunners_Displays_for_M777A2_Howitzer_AFC_Approved_-_Redacted....pdf

Control #: CAO-19-0247

FOR OFFICIAL USE ONLY

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Associate Director:

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Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Army Contracting Command – New Jersey

2. Description of Action: Project Manager-Towed Artillery Systems (PM-TAS) requests award of a new Firm Fixed Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract. Fiscal year 2019, Weapons and Tracked Combat Vehicles funds will be used for the minimum ordering quantity.

3. Description of Supplies/Services: The M777A2 Howitzer is a towed 155mm Howitzer that provides increased capability in mobility, survivability, deployability, and sustainability in any expeditionary environment throughout the world. This proposed action is to furnish Gunners Displays to the Government for sustainment of M777A2 Howitzers held by both the Army and the Marine Corps. The Gunners Displays is a Liquid Crystal Display (LCD) used to present fire control data and information to the M777A2 Howitzer Gunner and Assistant Gunner. It has specialized characteristics for daylight readability, viewing angle and data throughput. It also supports special operations via Night Vision Goggle compatibility. Additionally, it is designed to operate in both hot and cold extreme environments. Currently there is insufficient display quantities in stock to meet the Government production and sustainment requirements of M777A2 Howitzers held by both the Army and the Marine Corps. GDC currently makes the M777A2 Howitzer display as well as similar variants in continuous production for other platforms.

The period of performance will be five years from the date of award. The maximum quantity of Gunner’s Displays under this effort is 600 units. The total estimated value is

4. Authority Cited: Title 10 United States Code (U.S.C.) 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A) and (B), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agencies requirements, full and open competition need not be provided for. As further stated in FAR 6.302-1(a)(2)(ii)(A) and (B), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, 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, or (B) unacceptable delays in fulfilling the agency’s requirements. The proposed contractor is General Dynamics Canada (GDC), 3785 Richmond Road, Nepean, Canada K2H 5B7.

2,000 systems to PM TAS. The Gunners Displays have unique display characteristics that have already been competitively determined to be superior to other contractor offerings. GDC owns the technical data. The Government does not have a need to purchase the technical data for this effort, as the underlying system is used by GDC on several other platforms, and the Government owns the Performance Specification, to which GDC’s Gunners Display is compliant. For future acquisitions, the Government will further refine performance specifications for the Gunners Display to meet the requirement with commercial or Non-Developmental Items while still meeting stringent military requirements for security, durability and commonality across platforms. The use of commercial or Non-Developmental Items will increase the available future options for competition for the next generation of Gunners Display solutions.

8. Market Research:

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a market survey, W15QKN-19-X-05DZ, was posted to FedBizOpps on 14 February 2019 and closed on 8 March 2019. No responses were received to the Sources Sought Notice.

A competitive solicitation was conducted for W15QKN-12-D-0087 and GDC’s display was selected for award. What was competed then, however, are no longer the same displays required now because of continued improvements since 2012. Through the market research conducted from January through December 2018, PM-TAS personnel performed internet searches, contacted known sources of supply, and consulted experts both within and outside the Government. Additionally, discussions have been held with and , two contractors who proposed under the 2012 solicitation and are leaders in the marketplace, concerning the availability and capability of contractors to provide a gunner’s display solution. The discussions confirmed that these contractor’s systems are largely similar to the systems proposed under the 2012 solicitation and no major improvements/modifications have been made in the marketplace. Due to the continued improvements since 2012, no other contractor would be able to build a Gunners Display that is compliant with the current Performance Specification. Due to this fact, only GDC was determined to possess the engineering and operational expertise to meet the current requirements and build a Gunners Display that meets the Performance Specification at this time. No competitors from 2012 other than GDC were found to be acceptable, thus, they would not be capable of producing the current Gunners Displays at a competitive price and within the required timetable. These facts explain why no responses were received to the Sources Sought Notice.

9. Interested Sources: To date, no other sources have written to express interest in the requirement.

10. Other Facts:

a. Procurement History

(1) Contract number: W15QKN-12-D-0087

(2) The competitive status of this action was: Full and Open Competition

(3) The previous action was Full and Open Competition

(4) A justification was not prepared in support of the previous procurement.

(5) A performance specification was developed by the Government and was solicited via Full and Open Competition in 2012. GDC was competitively selected for award of contract W15QKN-12-D-0087. The product baseline was developed by GDC under this contract using the solicited Government Performance Specification. During the development of the product baseline for this requirement, which occurred over

GDC and the Government made many changes to the Gunners Display Performance Specification. The Performance Specification was subsequently updated during the entire process and has now been finalized based upon these changes, however, GDC owns the technical data. The Government does not have a need to purchase the technical data for this effort, as the underlying system is used by GDC on several other platforms, and the Government owns the Performance Specification, to which GDC’s Gunners Display is compliant. Currently no other existing system meets the Government’s Performance Specification. Based upon the fact that GDC made changes to the initially solicited performance specification, as well as the fact that they still own the technical data for the Gunners Display, a Full and Open Competition to complete this requirement is no longer possible.

(6) There are no unusual patterns

(7) A justification was not prepared to support the procurement made before this one.

b. Other facts: There are no other facts