W31P4Q-23-F-B002 LSJ (Mar 26 2024)_Redacted.pdf

Control Number:

CUI//SP-PROCURE//FED ONLY

Justification Review Document for Limited Source Justification- FAR Part 8

Program/Equipment: The Security Assistance Management Directorate (SAMD) - Product Assurance, Production Engineering, Systems Engineering, Test and Evaluation, Technical Data Management and Product Assurance / EXPRESS Technical Domain.

Authority: Title Ill of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(C) Limiting sources. In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) order provided that the original order was placed in accordance with applicable FSS ordering procedures. The original order or Blanket Purchase Agreement (BPA) was not previously issued under sole-source or limited sources procedures.

Amount: $7,356,553.08

Prepared by: DSN:

Date:____________

Email:

Contracting Officer

DSN:

Date:_____________

Email:

Technical:

Date:_____________

Email:

Requirements:

Date:_____________

Email:

CUI: March 2024 Controlled by: AMCOM SAMD Controlled by: AMSAM-SAN-HPO CUI Category: CTI Limited Dissemination Control: DL

Limited Source Justification � FAR Part 8

1. Contracting Activity: Department of the Army, Army Contracting Command-Redstone Arsenal (ACC-RSA), CCAM-MLP, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The Security Assistance Management Directorate (SAMD) requests approval to award a contract modification, non-competitively, to Torch Technologies, Inc. (further referred to as Torch), 4090 Memorial Parkway S, Huntsville, AL 35802-1382, Commercial and Government Entity (CAGE) Code: 3CBV3, Federal Supply Schedule (FSS) GS-23F-0321N, under United States Army Aviation and Missile Command (AMCOM) Expedited Professional Engineering Support Services (EXPRESS) Program Blanket Purchase Agreement (BPA) W31P4Q-23-F-B002 to increase ceiling for Option period 1. The current not-to-exceed (NTE) ceiling amount for this period is

. The current total obligation amount for this option period is .

The overage was caused by administrative error. The estimated fixed price (FP) labor increase is , travel , and material/other direct cost is for a total option period 1 ceiling increase of $7,356,553.08. The original award was a hybrid fixed price and time and material requirement. The current funding available for this effort will be Foreign Military Sales (FMS) Case Funds as well as FMS Administrative (FMS-Admin). The FMS country/case/ line(s) are as follows: United Arab Emirates UAE (AE-UDP-011), Bahrain (BA-ULD-002), Spain (SP-WBH-006), Japan (JA-UWO-003), Egypt (EG-VBS-0005, EG-VIN-003, EG-VIS-002, EG-VDX-013), Ukraine (NX-B-VGA and NW-B-WTD) and Turkey (TK-VDO-001). FMS Cases and FMS-Admin funds are not source directed.

A summary of the actions covered by this Limited Source Justification is provided below:

Estimated value Period of Performance $7,356,553.08 11 Feb 2024 � 03 Sept 2024

3. Description of Supplies/Services: This task order is to provide Technical Support Services in monitoring, assessing, coordinating, analyzing and integrating component programs and activities in SAMD. SAMD�s mission is to provide aviation and missile weapon system support to US foreign allies. SAMD has a requirement for technical support to meet contractual obligations for the procurement, delivery and sustainment of U.S. Army Aviation and Missile Command (AMCOM) systems entered into by a Letter of Offer and Acceptance (LOA) between the U.S. Government (USG) and numerous foreign governments. This includes the technical support requirements for the SAMD managed missile weapon systems, their associated support/test equipment, and repairable secondary items. The requested modifications to the TO allow continuous support of technical support services in the areas of Product Assurance, Production Engineering, Systems Engineering, Test and Evaluation, Technical Data Management and Product Assurance.

4. Authority Cited: Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et. Seq) as implemented by FAR 8.405-6(a)(1)(i)(C) Limiting sources. In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with applicable Federal Supply Schedule ordering procedures. The original order or BPA was not previously issued under sole-source or limited-sources procedures.

5. Reason for Authority Cited: This LSJ regarding Torch, 4090 Memorial Parkway S, Huntsville, AL 35802-1382, Commercial and Government Entity (CAGE) Code: 3CBV3, FSS GS-23F-0321N supports the authority cited above in that this LSJ to increase Option period 1 ceiling from to by $7,356,553.08. The ceiling increase is logical because it is a continuation of the same, already existing effort/scope, which was placed in accordance with the applicable FSS ordering procedures. The original contract of GS-23F-0321N task order W31P4Q-23-F-B002 was competitively awarded using a Small Business Set-Aside on 13 January 2023 for a period of a 12-month base period and 4 option years, plus extension if needed, through 03 Mar 2028, as a FP, Time and Material Contract. This increase is for the FFP portion of the contract. Torch has the required personnel in place and would eliminate duplication of efforts. If this ceiling increase are not approved, there will be a degradation of support capabilities and failure to perform the Performance Work Statement (PWS) requirements which will hinder SAMD support to our foreign allies. Torch currently provides highly specialized technical support services by providing technical expertise in support of the performance of life cycle producibility and systems engineering analysis to ensure material production capabilities for the Chaparral, HAWK and other SAMD supported missile systems. This support also includes design, development, and delivery of prototype modification kits in support of FMS-altered end item requirements. Technical support provides for the evaluation of alternative system/subsystem components to determine their suitability for use as replacements for unavailable/obsolete items required by foreign military customers. Torch also possesses the applicable working knowledge of Security Assistance/Security Cooperation rules, regulations, processes, and procedures associated with FMS. Torch is the only alternative right now as to effectively compete another contract will take up to a year and there is no time to recompete this program. Currently there has been an increase in need from Ukraine that has necessitated that were not foreseen in the planning prior to award. The number of personnel needed has doubled currently. The Homing All the Way Killer (HAWK) Missile System is a high visible and integral piece of the U.S. National Security strategy and currently part of the National Security requirements for Ukraine to provide engineering, logistics and technical support and services for CONUS and OCONUS operations. Torch contractors are on-site HAWK Program Office (HPO), Security Assistance Management Directorate (SAMD) contractors performing critical functions within the aforementioned areas inclusive of programmatic integration activities, readiness, transportation, HAWK delivery, training, safety, and security. Current and future requirements necessitate that HAWK Torch contractors perform activities consistent with the HPO mission both in CONUS and at HAWK Forward, Rzeszow, Poland, non-conflict area in support of the Ukraine FMS HAWK Program. The need to have Torch contractor logistics support to Ukraine�s medium-e Air Defense requirements is critical to the defense of that nation. Without this system and the support personnel provided by this requirement Ukraine would potentially suffer catastrophic loss of life.

Alternatives:

Suspend Operations: Currently, if this LSJ to increase Option 1 ceiling, is not granted, there are no other alternatives based of the current burn rate except to suspend operations when the current ceiling is exhausted. As previously mentioned, failure to provide expert technical support for FMS customers will negatively impact SAMD�s mission. SAMD has legally binding international agreements for the procurement, delivery and sustainment of AMCOM systems entered into the FMS process between the USG and numerous foreign governments. This LSJ to increase Option 1 ceiling is critical to continuing to meet US allies� defense needs and ongoing FMS technical activities. If a lapse of service is experienced, it will force the immediate withdrawal of contractor personnel from critical missions and impact contractor technical services to multiple countries/ missions most notably Ukraine, damaging the current foreign relations and programs operating under this TO. It is anticipated that without the approval of this LSJ to increase Option 1 ceiling, there will be a significant break in service. The impact of any break in service incurred by these foreign countries and programs could be damaging to foreign military safety as these technical services are closely supporting FMS sales and the foreign countries� ability to purchase the products and support, they need for their defense and potentially the defense of the United States of America. As these services are directly related to the ongoing foreign relationships throughout the world, the USG cannot entertain the possibility of losing these relationships. Suspension of operations is not a viable alternative.

The functions procured under this task order are specialized and the USG does not possess the staff to provide support. The use of in-house personnel/expertise is not an option, there are not enough qualified USG personnel to perform the services delineated in the PWS.

6. Efforts to Obtain Competition:

a. Effective Competition. Based on the above- mentioned facts, it is not practicable to utilize another source for this ceiling increase since Torch personnel have the immediate in-depth knowledge and experience necessary to meet the TO requirements in the time available. There are no efforts to obtain competition for this ceiling increase at the current time. In accordance with FAR 8.404(a) Use of Federal Supply Schedules, this action is exempt from pre-award synopsis requirements.

b. Subcontracting Competition. FAR Clause 52.244-5, Competition

Subcontracting is included in the basic contract. Since the Subcontracting Plan is already prevalent on the BPA, it is not required at the TO level. All contract clauses currently contained in the BPA will still be in effect.

7. Actions to Increase Competition: This proposed action is a modification with the incumbent. In the interest of economy and efficiency, it would be neither cost effective nor realistic to expect another contractor to perform during the contract period. There are currently twenty EXPRESS BPA holders in the Technical Domain which will compete for the new task order; therefore, no additional actions are currently being taken to increase competition.

8. Market Research: In accordance with FAR 10.002, market research was conducted by the Contracting Officer�s Representative for W31P4Q-09-A-0021/0013 and SAMD Non-Standard Missile Systems Division Chief. The market research conducted on 24 Jul 2023 revealed that a re-compete of this effort in the necessary timeframe was not realistic or feasible. Both program experience and personal knowledge were used to determine that no other source is capable of mobilizing in time to meet the requirement within the needed timeframe. FAR Part 12 will not be used in this effort;

however, in accordance with FAR Part 8.402(a), GSA provides agencies with a simplified process for obtaining commercial supplies and services and the guidelines and clauses are contained in the EXPRESS BPA.

9. Other Facts:

a. Procurement History: The original TO W31P4Q-23-F-B002 was competitively awarded using a Small Business Set-Aside on 12 January 2023 for a period of a 12-month base period and 4 option years plus extension, Firm-Fixed-Price Level of Effort Contract ( labor hours, and a Not to Exceed (NTE) ceiling price of ) as a follow on to W31P4Q-09-A-0021 which was competitively awarded as a small business set aside on 17 September 2015.

Other facts: No other facts are available

10. 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.

Signature: __Date: ____________________

Typed Name: _________________ Title:

11. 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.

Signature: ___Date: _____________________

Typed Name: ________________ Title:

12. Fair and Reasonable Cost Determination: I hereby determine that the modification to extend the period of performance represents the best value to the Government in accordance with FAR 8.405-6(c)(2)(v). Additionally, I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Determination of fair and reasonable costs or price will be based on the GSA negotiated rates established under the basic contract awarded because of a Small Business Set-aside Competition. Certified cost or pricing data will not be required based on the exception set forth in FAR 15.403-1(b)(3).

The determination will be made using the GSA negotiated rates established under the basic contract.

Signature: __ ___Date: ______________________

Typed Name: ______________ Title: ______

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

Signature: __ __Date: ______________________

Typed Name: __ _______________ Title: ______

Approval

As mentioned above in JRD, the total estimated cost/price of the instant action authorized by the LSJ is to increase the ceiling to $7,356,553.08.

Based on the foregoing justification, I hereby approve limiting sources in the acquisition of Technical Support Services for SAMD, these services include Product Assurance, Production Engineering, Systems Engineering, Test and Evaluation, Technical Data Management and Product Assurance pursuant to the authority of Title III of the Federal Property and Administrative Services, Act of 1949 (41 U.S.C. 251, et Seq.) as implemented by FAR 8.405-6(a)(1)(i)(C) Limiting sources, �In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule (FSS) order provided that the original order was placed in accordance with applicable FSS ordering procedures. The original order or BPA was not previously issued under a sole-source or limited-sources procedures�, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition."

Date:__________________ Signature:

Command Advocate for Competition