J A_LCCS_16-17--13APR2015.pdf

SOURCE SELECTION INFORMATION – SEE FAR 3.104

Control No: CC‐14‐010

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

FOR JAVELIN WEAPON SYSTEM

LIFE CYCLE CONTRACTOR SUPPORT

FOR FISCAL YEARS 2016-2017

1. Contracting Activity: Department of the Army, Army Contracting Command – Redstone, CCAM-TM-H, Redstone Arsenal, Alabama 35898-5000.

2. Description of Action: The Close Combat Weapon System (CCWS) Project Office requests approval to award a new sole-source contract to procure the Life Cycle Contractor Support (LCCS) sustainment requirements for the Javelin fielded hardware for Fiscal Years (FY) 16 and 17 forecasted by the United States (US) Department of the Army, the US Marine Corps (USMC), US Department of the Navy, and Foreign Military Sales (FMS) requirements. It is anticipated that this contract will include Firm-Fixed Price (FFP) and Cost-Plus-Fixed-Fee (CPFF) lines. This requirement will be funded utilizing Army Procurement Appropriation (APA), Operation and Maintenance Appropriation (OMA), United States Marine Corps (USMC) funds, FMS funds for the options, if exercised. OMA funds will be utilized for the basic requirement only. The FMS portion of this effort is not source directed and will be included in this requirement.

Australia, Czech Republic, Estonia, France, Lithuania, New Zealand, Norway, Oman, Ireland, Jordan, Taiwan, and UAE are the potential FMS customers that are anticipated to exercise options under this resultant new contract.

3. Description of Supplies/Services:

a. This acquisition is to procure LCCS. The base requirement is for LCCS repair and maintenance support of the Javelin weapon system, (to include hardware, software, supply support, personnel, materials, facilities, and equipment). The option requirement is for LCCS technical program management support to include total package fielding, training, training event support, deployment, associated spares (to include spare parts, repair parts, piece parts and consumables), refurbishment and rework of the Command Launch Units (CLUs), additional repairs for CLUs and trainers (including component assembly repairs), associated travel, data management and reporting requirements, shipping, packaging, and transportation for all Javelin fielded hardware. This acquisition is for repair services, facilities, support equipment, material, and technical data for which the contractor will be responsible for the total life cycle support required to maintain operational readiness for the Javelin system during peacetime and war. The Javelin equipment to be supported will include Javelin CLUs, trainers, system containers, and other associated support items of equipment.

b. The basic and option quantities are summarized in the table below. The total value of this procurement action, including options, is estimated to be $75,624,275. This includes an estimated base award of $20,028,673 for the FY16 LCCS base requirement. The remaining options for FY16 total $17,407,215 for a FY16 total of $37,435,888. The FY17 options total $38,188,388. The Period of Performance (POP) for the basic award will be 17 July 2016 through 28 February 2017. The POP for the FY16 options will be 17 July 2016 through 28 February 2017. The POP for the FY17 options will be 1 March 2017 through 28 February 2018. The contract expiration date is anticipated to be 28 February 2018.

4. Authority Cited: The statutory authority permitting other than full and open competition (FAOC) is 10 United States Code (USC) 2304(c)(1), as implemented by 6.302-1(a)(2)(iii)(A) & (B) of the Federal Acquisition Regulation (FAR), "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Reason for Authority Cited:

a. The anticipated contract will be awarded to the Raytheon/Lockheed Martin Javelin Joint Venture (JV), 1151 E. Hermans Road, Building 80, Tucson, AZ 85706-9367, CAGE Code 0FCZ3. Only the JV can satisfy the LCCS requirements. The JV is the only and current prime contractor of the Javelin weapon system. The Javelin weapon system, including training devices and special tooling and test equipment, has been designed, developed, and fabricated by the JV to performance specifications.

Performance specifications do not specify how to build an item; they merely list the performance requirements. Although the performance specifications are available, any contractor other than the JV would be required to invest in substantial engineering

EFFORT FY2016 FY2017

BASE Award US Army $20,028,673

OPTIONS

US Army -0- $20,429,665 Army Surge $3,365,676 $3,433,060 National Guard LCCS $3,748,047 $3,823,086

USMC LCCS $1,504,152 $1,534,267

FMS LCCS $8,789,339 $8,968,310

TOTAL $37,435,888 $38,188,388

development in order to meet the Government's requirement for total LCCS. The JV is the only source with the corporate knowledge, expertise, and facilities with unique tooling and test equipment to produce, retrofit, repair and support the Javelin weapon system. To date, the JV has produced over 9,000 CLUs for the US Army, USMC, and FMS customers. Additionally, the JV has delivered 3,386 Javelin training devices.

Currently the JV is the only qualified source that can provide LCCS repair and support for the Javelin weapon system. The JV has unique capabilities gained during the performance of Javelin Engineering and Manufacturing Development (EMD), Low Rate Initial Production (LRIP), Full Rate Production, Interim Contractor Support, and LCCS contracts. These capabilities are required to satisfy the LCCS requirements. It is estimated that any other source (other than the JV) would incur at least $1.419B in cost to develop this LCCS capability which would make their offer significantly higher and cost prohibitive (as outlined in the Javelin LCCS 2016-2020 Business Case Analysis (BCA), dated 27 May 2014). This cost includes the purchase price of the technical data package (TDP) from the current contractor; costs to prepare the TDP for competition;

and the costs to transfer the current LCCS facilities, test equipment, and spare parts from the JV to the new contractor. Award to any source other than the JV would result in substantial duplication of EMD, LRIP, and production costs that are not anticipated to be recovered through competition.

b. A Business Case Analysis (Contract File) has been developed which explores different alternatives to maximize competition for the Javelin weapon system. The analysis reveals several reasons why any source other than the JV will result in unacceptable program delays and/or risks, and duplication of costs, as set forth below, that are not expected to be recovered through competition.

c. Award to any source other than the JV would result in a substantial break in support of the 6,250 CLUs currently fielded to US Army Warfighters and approximately 590 fielded to USMC Warfighters, as well as cost inefficiencies associated with the shut down and restart of the support infrastructure after the break in sustainment support.

Award to any other source would also result in significant increases in the Javelin program costs and would delay the LCCS contract award by approximately 24 to 36 months to award the new contract and qualify the new contractor due to: non-availability of an adequate competitive TDP, specifications, engineering descriptions, or statement of work; JV proprietary data necessary to perform; and new contract learning process. In addition, 18 to 24 months would be required to transition to another contractor any portion of the current infrastructure that is available because it is required by the JV for performance of ongoing Javelin LCCS contracts. These delays would result in unacceptable support and a drop in readiness for the Warfighters. Any delay is unacceptable to the Government's requirements because Javelin hardware used by the

US military and friendly foreign countries in covert and tactical environments will be unsupportable if the base award and additional options for LCCS requirements are not available for award by January 2016. Award to any source other than the JV could severely impact the mission and endanger the lives of American and friendly foreign country Warfighters. No producer other than the JV can fulfill the LCCS requirements in the combined areas of price, schedule, and quality without prohibitive cost increases, untimely schedule delays, and design producibility issues. The JV is the only source with the corporate knowledge, expertise, facilities with unique tooling and test equipment, and infrastructure necessary to meet the Government's LCCS requirements to support and sustain the CLUs, training device, and other assets fielded to the Warfighter.

6. Efforts To Obtain Competition: This requirement was published in the US Army Aviation and Missile Command (AMCOM) Competition Advocate Shopping List (CASL) on 9 June 2014 and was revised on 23 July 2014, with no responses received as of this date. The CASL is accessible to all contractors through the AMCOM Contracting Center Bulletin Board System. The notice required by FAR 5.201 will be released to the Federal Business Opportunities (FEDBIZOPPS) on or about 21 May 2015. Any source that provides a written interest in this requirement will be given consideration by law.

However, no effective competition is anticipated for the reasons stated in paragraph 5.

A Sources Sought was issued on 10 September 2014 and closed on 26 September 2014. One response was received from MILSPRAY, located in Lakewood, New Jersey.

The respondent’s package was evaluated by the CCWS technical team and it was determined that the respondent lacked the capability and experience to comply with the Statement of Work (SOW) requirements.

7. Actions to Increase Competition:

a. There are currently no plans anticipated to compete for subsequent actions of the prime contractor for the Javelin weapon system.

b. This requirement is not suitable for FAOC. Therefore, no action will be taken to increase competition for the reasons stated in paragraph 5 above. The contractor who performs this effort would rely upon the current TDP of the Javelin CLU and training devices. Upon Government request, the JV provided a formal Rough Order of Magnitude (ROM) estimate, in December 2011, for the cost to provide an “as-is” reproduction-only copy of the current Javelin TDP at a cost of $22M. While this TDP delivery would not be sufficient for competition because of the level of restricted, limited and special license rights claims anticipated, this delivery would allow CCWS to baseline rights in Javelin technical data by obtaining formal delivery of the TDP which invokes the requirement for assertions and markings compliant with the Defense Federal Acquisition Regulation Supplement. In order to obtain a TDP suitable for competition, the Government would have to purchase at least Government Purpose License Rights to those items considered to be restricted, limited, or covered under a special license in the current TDP. The JV provided a ROM estimate in September 2011, of $1.0B for the cost of delivering a TDP that would be suitable for competition to the Government. CCWS has evaluated the estimate but has not pursued negotiations with the JV due to the prohibitive costs. Even if the TDP could be procured, it would take an additional 60 months to develop additional sources for this effort, which would result in an unacceptable delay in fulfilling the Government’s requirement. This requirement will be published in the FEDBIZOPPS on or about 21 May 2015.

c. As a part of the Javelin Cost Reduction Program, the CCWS Project Office has invested in activities to assist the JV in identifying opportunities for competition within their supply chain at sub-tier suppliers for major subsystems.

8. Market Research:

a. Market research was initiated by publishing the requirements into the AMCOM Market Research Report/Commerciality Determination database on 8 August 2012.

The Market Research No. 150003 was approved by the Competition Advocate on 3 October 2014. This requirement will be synopsized on or about 21 May 2015 in accordance with FAR 5.201. Market Research was conducted in accordance with FAR 10.002(b)(2)(i), “Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements”. This Market Research was conducted in May-August 2014 and utilized both personal knowledge as well as contact with knowledgeable persons in the Government including, Mr. Philip Skelton, CCWS, Javelin Product Director, Ms. Misty Glover, CCWS, Javelin Deputy Product Director, and Mr. Steve Potts, CCWS, Senior Logistics Supervisor and persons in industry regarding market capabilities to meet the requirement. Additional Market Research was conducted by reviewing technical/non technical databases (e.g. technical reports collection, research summaries, and independent research and development reports) in August 2014, and no relevant information was found regarding a source other than JV who has the capability to perform the maintenance repair and support of the Javelin weapon system. This requirement was published in the CASL on 9 June 2014, and the last revision was made on 23 July 2014. This action was also researched by the Redstone Scientific Information Center library on 3 September 2014 to determine if a source other than the Javelin JV could provide this effort. No companies were found during this search.

b. The results of market research indicate that these services are not commercial and FAR Part 12 policies and procedures will not be used to buy these services. There are no commercial or non-developmental items that can be used for this requirement since the services and spare parts required are unique to the Javelin weapon system.

No other source can provide these Javelin-unique items at this time.

9. Interested Sources: One response to the Sources Sought was received on 22 Sep 2014 from MILSPRAY, located in Lakewood, New Jersey. The CCWS technical team performed an evaluation of MILSPRAY’s package and determined this respondent lacked the capability and experience to comply with the SOW. To date, no other sources have expressed an interest in writing. The notice required by FAR 5.201 shall be released to FEDBIZOPPS on or about 21 May 2015. Any source that provides a written interest in this requirement will be given consideration.

10. Other Facts:

a. Procurement History:

(1) The following contract was awarded to the JV for Javelin LCCS Support on a sole source basis utilizing the authority of FAR 6.302-1(a)(2)(iii)(A) & (B):

Contract Number Award Date Description of Action Contract Dollar Value W31P4Q-04-C-0046 25 Jan 2004 Javelin LCCS FY 04 -13 $627,700,000 W31P4Q-04-C-0046 15 Jan 2009 Javelin LCCS FY 09 NTE $ 14,729,419 W31P4Q-04-C-0046 30 Apr 2009 Javelin LCCS FY09 Defz $ 24,667,235 W31P4Q-14-C-0127 10 July 2014 Javelin LCCS FY 14 NTE $ 7,634,942 W31P4Q-14-C-0127 26 Sep 2014 Javelin LCCS FY14 Defz $ 65,700,043

(2)Contract W31P4Q-04-C-0046 was the first Javelin LCCS Contract. All previous Javelin contracts were interim contractor support efforts awarded using other than FAOC competition under the authority of l0 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii)(A) & (B), "Only one responsible source and no other supplies or services will satisfy agency requirements".

(3) The J&A to support the previous LCCS effort (for FY09-13) was approved by the Acting Assistant Secretary of the Army (Acquisition, Logistics and Technology) on 30 May 2008. Based on the approval of the previous J&A, the LCCS effort was not deemed sufficient for potential competition savings to offset the significant expenses for qualification and facilitization of an alternate source.

(4) The J&A to support the current LCCS effort (for FY14-15) was approved by the Executive Director of the Army Contracting Command – Redstone on 3 May 2013.

Based on the approval of the previous J&A, the LCCS effort was not deemed sufficient for potential competition savings to offset the significant expenses for qualification and facilitization of an alternate source.

(5) No prior award was accomplished by full and open competition.

(6) There were no unusual patterns revealed by the Javelin history.

(7) The justification prepared to support the LCCS procurement made before this one was sole-sourced to the JV, as they were determined to be the only contractor qualified to repair and support the Javelin weapon system (as described in paragraph 5). The previous LCCS procurement also contained similar circumstances justifying the buy, and there have been no significant changes.

b. Acquisition Data Availability. TDPs, specifications, engineering descriptions, statements of works, or purchase descriptions suitable for FAOC are not available.

These services are system peculiar and will be used to perform repairs on the Javelin system hardware while also supporting this hardware to and from the field. This will include but is not limited to support of the system’s configuration management, product assurance, reliability, quality, maintainability, obsolescence, and integrated logistics support necessary for maintaining the Javelin weapon system’s performance and its operational readiness and availability. Only the incumbent production contractor has the in-depth knowledge and expertise to provide the required services.

c. Unusual and Compelling Urgency. This is not applicable because FAR 6.302-2 is not the authority cited.

d. Subcontracting Competition. The Government will ensure that the contractor obtains competition in subcontracting to the maximum extent possible by publishing the notices required by FAR 5.201 in the FEDBIZOPS and by inclusion of FAR 52.244-5, “Competition in Subcontracting,” in the solicitation and contract. Submittal of a small business subcontracting plan will be required in accordance with FAR 52.219-9.

Approval

Based on the foregoing justification, I hereby approve the procurement of LCCS repair and maintenance support of the Javelin weapon system, (to include hardware, software, and supply support, personnel, materials, facilities, equipment). The option requirement is for LCCS technical program management support to include total package fielding, training, training event support, deployment, associated spares (to include spare parts, repair parts, piece parts and consumables), refurbishment/rework of CLUs, additional repairs for CLUs and trainers (including component assembly repairs), associated travel, data management and reporting requirements, shipping, packaging, and transportation for all Javelin fielded hardware. This acquisition is for repair services, facilities, support equipment, material, and technical data for which the contractor will be responsible for the total life cycle support required to maintain operational readiness for the Javelin system during peacetime and war. The Javelin equipment to be supported will include Javelin CLUs, trainers, system containers, and other associated support items of equipment. This procurement will be awarded on an other than FAOC basis pursuant to the statutory authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) & (B), subject to availability of funds, and provided that the services and property described herein have otherwise been authorized for acquisition. The base value for FY16 is $20,028,673; the option value for FY16 is $17,407,214; and the option value for FY17 is $38,188,388. The total estimated amount of this effort if the base and all unfunded options are exercised would be $75,624,275. This anticipated contract will be awarded to the Raytheon/Lockheed Martin Javelin Joint Venture (JV), 1151 E. Hermans Road, Building 80, Tucson, AZ 85706-9367, CAGE Code 0FCZ3.

Signature:__________________________________ Date:___________________

REBECCA E. WEIRICK

Executive Director Army Contracting Command - Redstone rebecca.e.weirick Typewritten Text rebecca.e.weirick Typewritten Text I approve this J&A subject to the following: Please prepare a Class J&A, for AAE approval, for all Javelin LCCS buys for the next 7 years. Please. submit to my office NLT 1 July