W15QKN-23-D-0007_P00004_Redacted-JA.pdf

Justification and Approval for Other than

Full and Open Competition

1. Requiring Activity: Next Generation Automated Test System (NG.ATS) for the Product Director Test, Measurement, and Diagnostic Equipment (PD TMDE)

2. Contracting Activity: United States (U.S.) Army Contracting Command - New Jersey located at Picatinny Arsenal, NJ.

3. Description of Action: PD TMDE requests approval of a modification to procure the final-NGA TS consoles, Self Test Interface Adapters (STIAs), and shelter integrations for fielding for Fiscal Year (FY) 2027 and 2028.

This modification will increase the contract ceiling by $25,450,321.35 and extend the Contract ordering period by adding two (2) additional one-year ordering periods to the current NG.ATS production Contract W15QKN-23-D-0007 with The Boeing Company (Boeing) located at 6200 JS McDonnell Boulevard, Saint Louis, Missouri. The period of performance for the contract will be extended until 19 December 2027. Further., the modification will increase the ceiling from $118,654,047.00 to a total ceiling amount of $144,104,368.00. It is anticipated that FY 2027 and 2028 Other Procurement Army funds will be used to satisfy this requirement.

4. Description of Supplies/Services: In 2025, an update to the Basis of Issue Plan increased the Approved Acquisition Objective (MO)

NGA TS. The current contract ceiling supported the original AAO of the

-NG.ATS.

In order to meet the revised MO, PD TMDE requires an increase of $25,450,321.35 to the contract ceiling and the addition of two one-year ordering periods. This will enable PD TMDE to procure the remaining• NGA TS consoles, STIAs, and shelter integrations in accordance with the revise MO.

5. Authority Cited: Title 10, Unjted States Code (U.S.C.) Section 3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2) Only One Respons.tJle Source and No Other Supplies or Services Will Satisfy Agency Requirements.

6. Reason for Authority Cited: FAR 6.302-1(a)(2) is the appropriate cited authority for this requirement as Boeing is the Original Equipment Manufacturer (OEM), and the only vendor capable of meeting the government's requirement. Boeing is the current and only producer of NGATS production system that has completed First Article Testing (FAT), Qualification, and received Approval for fielding. Further, Boeing is the only company that can manufacture and deliver the NGA TS consoles, adapters and shelter integration in the time frame necessary to meet the fielding requirements due to completing FAT.

a. Background: Contract W15QKN-23-D-0007 is a sole source Indefinite Quantity Indefinite Delivery contract that was awarded on a Firm-Fixed Price basis to the Boeing Company on 21 December 2022 for the Full Rate Production of NGATS consoles, STIAs, and shelter integrations in order to meet the Army's fielding schedule.

PD TMDE needs to procure an additional - NGA TS consoles, STIAs, and shelter integrations for fielding I- NGA TS is the latest addition to -

-the Army's approved family of Automated Test Equipment (ATE). It is a highly mobile, rapidly deployable, general-purpose, reconfigurable automatic test system which directly supports testing and screening of Army weapon systems to maintain their readiness to shoot, move, and communicate.

NGA TS is a modern, state of the art system designed and built utilizing open architecture and commercial instrumentation.

The NGATS was designed and developed to replace the Direct Support Electrical System Test Set, Integrated Family of ATE Version 3 and Version 5, and to support future weapon systems requirements. The NGA TS is the only system which has the capability to perform field level diagnostics at the Brigade level for multiple Army platforms, including Abrams, Bradley, Stryker, Husky Mounted Detection System, and Common Remotely Operated Weapons Systems.

b. Alternatives: There are no other known alternatives. Boeing is the only qualified manufacturer with Qualification and Approval for fielding the NGATS.

Significant financial resources were consumed during performance of the current contract, which brought the current OEM to the point of full-rate production approval. If alternate vendors were to be considered, the total additional cost to the Government would be around l!!l!ll!!l.1!11!!!!1■ · This would include the cost to qualify a Full Rate Production (FRP) NGATS, Assembly of a First Article NGATS Console, Assembly of a First Article STIA, Physical Configuration Audit (PCA), Integration, Contractor Acceptance Testing, 'Contractor First Article Testing (FAT), Government Operational Testing, and costs associated with Cybersecurity Compliance (per NIST SP 800-171). An alternative vendor would also duplicate logistical efforts and events such as verification, validation, and logistics demonstrations. Further, this would cause a delay to the program- since it would take a new vendor time to complete qualification and be at FRP. The -substantial duplication costs, and additional time cannot be recovered through competition.

Furthermore, due to the U.S. Army Transformation Initiative to modernize and restructure the Army and operational factors and threat concepts coupled with evolving warfare tactics, military strategies and reallocated budgets, the NGATS budget has no known requirements for production past FY 2028.

Therefore, due to the duplication costs, program delays, and the fact there are no known NGATS requirements beyond FY 2028, considering an alternative vendor would not be advantageous to the Government.

c. Impact if not approved: If this modification is not approved, it would result in an additional cost to the Government, and lead to unacceptable delays. Based upon the costs for qualifying the NGA TS system under the current contract, the

-estimated duplication of cost to qualify a new vendor . This includes the costs to test, qualify and support FRP NGA TS as well as First Article Contractor and Government Costs, as well as duplicative FAT equipment costs. The estimated duplication c'ost of is over

■ the overall available program funding for the FY27 and FY28 requirement.

If the Government was unable to approve this modification, it would lead to the Government incurring duplicative costs, degraded capabilities, and reduce the Army's ability to field NGATS Consoles and self-test adapters. The charts below illustrate the individual activities required to reach FRP of the NGA TS console and their associated costs:

These a~tivities result in an overall duplicate cost . All the required FAT listed above is not required for the current OEM (Boeing), since this vendor is currently producing the NGATS and has already completed the mandatory testing/evaluation for fielding, making them the only qualified source for this requirement. If this requirement was competed under Full and Open Competition, the duplication costs to qualify another vendor, other than the current OEM would cost over- the total available funding ■ ~ for the additional FY27 and FY28 requirement and is not in the best interest of the Government.

7. Efforts to Obtain Competition:

a. Effective Competition: Effective competition is not anticipated for this effort. The notices requi~ed by FAR 5.201 shall be published and any bids or proposals received shall be considered.

b. Subcontracting Competition: The Government intends to ensure as much subcontracting competition as possible. It will be the responsibility of the prime contractors to select any required subcontractors. FAR 52.244-5 "Competition in Subcontracting" and FAR 52.219-9 "Small Business Subcontracting Plan" will be added to the resultant contract. -

9 --

8. Actions to Increase Competition: Full and open competition is not practical currently, as Boeing is the OEM and only Qualified and Approved vendor. At this time, the Government does foresee a requirement for additional NGATS past FY 2028. If NGA TS are required in the future, the Army has obtained Government Purpose Rights to the technical data and computer software relating to the NGATS and STIAs. These rights will allow the Government to effectively compete the requirement in the future through full and open competition if the Army's posture on field level diagnostics and organic support changes. In such an event, the Government would issue a competitive solicitation to procure additional units.

9. 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), Sources Sought Notice (SSN) W15QKN- 25-Q-11V3 was posted to SAM.gov on 20 November 2024 and the results are detailed below. Responses were received from• contractors. The SSN identified all the salient requirements of the effort and requested that industry respond with their capabilities.

There were- vendors who submitted capabilities statements in response to SSN W15QKN25Q11V3. These-businesses are Boein

Boeing Compahy is uniquely qualified as the current prime contractor for NGA TS ATE production, offering a continuous production line established in 2015 and a 45+ year history of designing, developing, and manufacturing ATE systems for the DoD.

They have delivered 46 sheltered and 54+ stand-alone NGA TS systems, demonstrating expertise in both system configurations and self-test adapter production.

Demonstrates limited capability across most areas.

Specifically lacks experience in: ATEfTPS development & maintenance, NGA TS, large-scale production, Government Policies & Standards, obsolescence mitigation, and comprehensive software integration. Possesses limited software developmenUmaintenance skills and minimal experience in large-scale program management. ISO 9001 certifi.ed.

Exhibits similar limitations to . Lacks depth in ATE!TPS development, Government Standards compliance, and large-scale program execution. Demonstrates some ability in software development and reporting. Not CMMI certified. ISO 9001 certified.

Demonstrates no capability across any assessed areas. No demonstrable experience or capability was identified.

Demonstrates no capability or experience across any asses~ed areas (Production, Production Lifecycle, Qbsolescence Mitlgation, Interface/System Software, Management).

Exhibits limited capability across most areas. Lacks TPS developmenUmaintenance, NGA TS knowledge, and experience with Government Standards, large-scale production, and obsolescence mitigation. Limited software development expertise, but demonstrates ability in ATE health monitoring/reporting.

Not CMMI certified.

-Demonstrates the most capability of these-vendors. Possesses experience in large-scale ATE production, obsolescence mitigation, and spare parts management. However, limitations exist in TPS development (limited to self-test), NGATS knowledge, sheltered environment ATE integration, and field support.

Limited expertise in software development and GUI integration. ISO 9001 certified.

Demonstrates extensive capability across all assessed areas. ■ 40+ years of experience. Offers full-spectrum ATE solutions, including development, integration, production, maintenance, and llfecycle support (spares, manuals, engineering changes). Level 3 -

-CMMI & ISO 9001 certified. Proven experience in tactical deployments and obsolescence mitigation.

Demonstrates limited capability, primarily focused on small-scale, specific-target ATE. Lacks significant experience in TPS development, NGA TS, Government standards, large-scale production, and field support. Limited obsolescence mitigation experience ISO 9001 certified.

Demonstrates no capability or experience across any assessed areas (Production, Lifecycle, Obsolescence Mitigation, Software, Management).

In conclusion, market research determined that there are-vendors who are potentially capable of meeting the Government Requirement. However, due to the significant duplication of cost, the qualification delay, and the need for NGATS ending in FY 2028, the Government determined that Boeing is the most advantageous to the Government.

Further, Boeing is currently the only qualified, and approved vendor who can meet the Government's requirement of fielding the NGATS.

10. Interested Sources: To date, no other sources have written to express interest.

11. Other Facts:

a. Procurement History.

Contract Number Contract

The Boeing W15QKN-23-D-0007 Company

The Boeing W1SQKN-14-D-0106 Company

The Boeing W15QKN-1 0-C-0040 Companv

Procurement Method

Other Than Full and Open Competition Full and Open Competition Other Than Full and Open Competition

Amount Period of Performance

Dec 21,2022- $92,995,307.40 Dec 20, 2025

Sep 24,2014- $102,000,000.00 Sep 24,2019

Nov. 20,2009, $72,161,830.68 Nov.19,2011

12. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

13. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

14. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The resulting proposal will be subject to cosUprice analysis, independent government estimates, and technical evaluations that will be used to determine that the anticipated costs are fair and reasonable. Certified cost and pricing data will be obtained for this action.

15. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Approval

Based on the foregoing justification, I hereby approve the procurement of Next Generation Automated Test System on an other than full and open competition basis pursuant to the authority of 10 United States Code 3204(a)(1), as implemented by FAR 6.302-1 (a)(2)- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The estimated value of this modification is $25,450,321.34 which will extend the ordering period for two years for a period of performance of 21 December 2025 to 19 December 2027. The approval is subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for this acquisition.