JA - MRC ILS_19 December 2024 - Redacted.pdf

CUI//SP-PROCURE

Solicitation Number: W31P4Q-24-R-0040

Control Number: PF-J&A24-1914

4. Authority Cited Permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is 10 United States Code (USC) 3204(a)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) and (B) entitled "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

“…services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services 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.”

5. Reason for Authority Cited:

Pursuant to FAR 6.302-1(a)(2)(iii)(A) and (B), LM-RMS is the only responsible source capable of providing ILS support by the initial need date of 01 April 2025.

Award to any other source would result in a substantial duplication of non-recurring cost based on historical cost data, which is estimated at This estimated cost includes for flight tests, Battery 1 Contractor Logistics Services (CLS), New Equipment Training (NET) and in Technology Insertions (TI). The Government does not expect to recover this estimated non-recurring cost through competition.

Additionally, any other source would take at least three years before they can start providing ILS support, resulting in unacceptable schedule delays and missing the required CLS and NET training date of 01 April 2025 to provide this critical capability for the Army. No other vendor is currently positioned to provide logistics support, to make up their significantly increased non-recurring start-up costs at this time.

However, the Army will reconsider the feasibility and benefits of further competition in establishing their acquisition plan for the MRC program going forward for future procurement and production efforts.

a. Field Service and Depot Repairs

Field Support Representatives (FSRs) are embedded with the unit to support on a continuous basis for both test exercises and deployments within the Continental United States (CONUS) and Outside Continental United States (OCONUS) to sustain MRC unique equipment. FSR’s receive specialized LM training for system operation, troubleshooting, and system repair through

Control Number: PF-J&A24-1914 replacement. The FSR’s along with an available 24-hour help desk provide the unit with a quick response, sparing solution, Repair and Return process and other needed resources.

AMCOM Field Maintenance Directorate (AFMD) will sustain the common equipment (e.g., trucks, radios, etc.) through established organic maintenance and supply support activities. MRC unique equipment is maintained by the FSRs LM-RMS and select actions such as inspections and preventative maintenance checks and services (PMCS) are completed by the Solider.

Sourcing another vendor with the necessary expertise and resources required for the unit to fully execute their mission would undoubtedly cause the Army to miss critical need date of 01 April 2025 for NET and CLS. This would result in an unacceptable delay and cause program risk.

b. New Equipment Training (NET)

LM-RMS provides each gaining unit NET as part of the MRC equipment delivery.

It consists of classroom instruction, hands-on labs, interactive training, and simulation for system operators and maintenance personnel. Operational equipment required for NET consists of four PDS, the BOC, and associated equipment.

In conjunction with this contract, the program office is working with Fire Center of Excellence to develop training material. Fire Center of Excellence will assume all follow-on training after NET as the program transitions scope to organic support.

c. Spares

LM-RMS provides a spares package for each Battery consisting of MRC unique spare/repair parts and consumables that will support the system from NET, fielding, and flight tests. MRC peculiar repair parts will be requisitioned and provided by LM-RMS.

Replenishment spares and repair parts for Army specific components will be requisitioned by the Unit. In conjunction with this contract, the program office is working to grow the organic footprint. Utilizing AMCOM Field Maintenance Directorate (AFMD). AFMD product support infrastructure, PM STRIKE is developing an Inventory Control Point which will handle Procurement, Sparing Analysis and Repairs.

d. Resources

As set forth above, LM-RMS is the only responsible source capable of providing Logistic Support by the need date of 2QFY25. An award to any other source

Control Number: PF-J&A24-1914 would result in in an additional three year lead time before they can start providing logistics support, resulting in unacceptable schedule delays and missing required CLS and ILS date of 01 April 2025 to provide this critical capability for the Army. Doing so would also result in a substantial duplication of non-recurring cost based on historical cost data, which is estimated to exceed

This estimated cost includes everything to provide logistics support for Batteries 2 through 4.

6. Efforts to Obtain Competition:

a. The Contracting Officer will publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

b. Given MRC is a Middle Tier of Acquisition Rapid Prototype program, the logistics support for this system beyond the prime contract is not mature. To date, the project office has relied on LM’s logistics capabilities to ensure readiness of fielded assets, new equipment training, and logistics support for the test events.

If competition was to take place for this procurement it would place undue risk to meet the Army’s requirement to field four batteries by 3QFY26. The Government initiated the development of Government led and overseen product support infrastructure by transitioning scope from LM to AFMD. This will allow MRC to strategically position itself to have organic systems and facilities in place for future competition.

c. Subcontracting Competition: LM participates in the Small Business Comprehensive Subcontracting Test Program Agreement, under the Department of Defense (DoD) Test Program, as described in Defense Federal Acquisition Regulation Supplement (DFARS) 219.7, Small Business Programs. LM is required to submit an approved Small Business Subcontracting Plan in accordance with FAR 19.705-4, IAW FAR 52.244-5, the prime contractor shall compete subcontracts from as many potential sources as is practicable.

7. Actions to Increase Competition:

The Government will continue to monitor this unique market for other potential sources for post-production activities. For MRC ILS, the Government will encourage maximum competition at the subcontract level consistent with technical and programmatic requirements. See Paragraph 6 for more information on competition.

8. Market Research:

a. The Market Research Report (MRR) identifies research performed in addition to SSN/RFI that could be included in the J&A. The Government conducted market research by issuing a Sources Sought Notice (SSN) on 27 March 2024 for

Control Number: PF-J&A24-1914

An Office of the Secretary of Defense (OSD) Strategic Capabilities Office (SCO) effort was awarded to LM-RMS on a competitive basis under the Defense Microelectronics Activity (DMEA) Advanced Technology Support Program IV (ATSP4) Multiple Award / Indefinite Delivery Indefinite Quantity (MA/IDIQ) contract (HQ072719F1103). The task order leveraged LM internal investments, without the value of and 1.5 years of development time would have been larger. In addition, LMC RMS demonstrated their capability in a timeframe that allowed MRC to meet the fielding requirements of 1QFY23. RCCTO briefed this approach to the Secretary of the Army (SA) on 01July 2020 and received approval.

The Strategic Fires Study recommended a set of objective weapons to fill the Army's gap for an MRC. The Army gave the MRC mission to RCCTO with a mandate to deliver a residual combat MRC Prototype Missile System capability by 4Q FY23.

Market research found an OSD SCO program, which addresses the MRC's full suite of requirements.

Dr. Bruce D. Jette, former Senior Procurement Executive of the Army, signed the Determination and Finding to award on a sole source basis on 22 October 2020.The Army Rapid Capabilities and Critical Technologies Office (RCCTO) awarded a competitive sole source MRC Prototypes OTAP (Other Transactional Authority Prototype), W50RAJ-21-9-0001, to LMC RMS, on 06 November 2020. The scope of the MRC OTAP to develop MRC Prototype Batteries #1-4, New Equipment Training, Logistics Support, Initial Spares package. The Period of Performance (PoP) is up to eighty-six months (06 November 2020 to 06 January 2028).