W56HZV-20-C-0072 STS-SSTS LAV Redacted JUSTIFICATION APPROVAL.pdf

CMO Control Number: 2020-002

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DEPARTMENT OF THE ARMY JUSTIFICATION AND

APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity: Army Contracting Command, Warren (ACC-WRN), is the contracting activity responsible for this action.

2. Description of Action: ACC-WRN proposes to award a new 3 year (base year and two one-year options), Cost-Plus-Fixed-Fee (CPFF) Level of Effort (LOE) Requirements contract to Canadian Commercial Corporation (CCC). The contract will be subcontracted to General Dynamics Land Systems – Canada (GDLS-C) to provide services for the Family of Light Armored Vehicles (FoLAV). The funds utilized include:

Foreign Military Sales (FMS) for the Kingdom of Saudi Arabia (KSA) FMS Case SR- B-VTD, United States Marine Corps (USMC) Operation and Maintenance (O&M), and other USMC funds depending on program requirements.

3. Description of Services: The purpose of this acquisition is to obtain System Technical Support and System Sustainment Technical Support (STS/SSTS) services for the FoLAV (all generations). The services to be procured will be further defined by individual work directives issued throughout the contract’s period of performance and could include any of the STS/SSTS services identified below.

Material and other direct costs (ODCs) may be procured under this contract. This contract will allow the Government to order up to 110,300 labor hours for up to a three year contract period (inclusive of options). The proposed effort includes the following STS/SSTS activities:

a. Systems Engineering Support

b. Reliability and Maintainability Support

c. Prototype Hardware/Software

d. Engineering Change Proposals

e. Hardware/Software Configuration Management

f. Technical Data Package (TDP) Maintenance

g. Integrated Logistics Support and Products

h. Product Improvements

i. Systems and Equipment Training

j. Field Failure Analysis

k. Obsolescence Reporting, Analysis, and Resolution

l. Electrical System Modification

m. Hull Analysis

n. Organic Precision Fires-Mounted

o. Technical Publications

The anticipated period of performance for this action (including base year and two one-year option periods) is November 2019 through November 2022. Based on the SWORD and USMC Independent Government Cost Estimates (IGCE) obtained on 24 April 2019 and 22 July 2019, the total estimated cost for this procurement is

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$15,323,710.00 to include up to 110,300 labor hours, material, ODCs, and travel costs.

4. Authority Cited: The statutory authority permitting Other Than Full and Open Competition for this action is Title 10 United States Code (U.S.C.) 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(B), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements". Specifically, “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- (B) Unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited: Award of this action on a sole source basis is justified because the services required cannot be procured from sources other than the FoLAV Original Equipment Manufacturer (OEM), GDLS-C. GDLS-C owns the technical data needed to complete the activities required under the proposed contract. GDLS-C is the only source capable of providing the system technical support services described herein without unacceptable delays attributable to learning.

a. Background: The USMC LAV fleet was initially acquired in 1982 and has been continuously sustained with upgrades and modifications to improve reliability, performance, survivability and to manage obsolescence. The programmed LAV life cycle runs through 2025, requiring ongoing sustainment support activities to maintain its viable war fighting capability. Through this STS contract, the FoLAV will undergo vehicle configuration upgrades to maintain or enhance vehicle configurations and reduce material obsolescence for the USMC Fleet and SWORD fleet, through engineering and logistics services that only GDLS-C can provide. The STS contract will provide the capability to rapidly incorporate necessary vehicle modifications to maintain system capabilities and enhance combat effectiveness for both legacy and new build LAVs. The need for continuous engineering and logistics support through an STS/SSTS contract is essential to maintain system readiness and availability.

Furthermore, the RSLF may seek to acquire new LAVs from GDLS-C to replace future combat losses. The current STS/SSTS effort is covered under W56HZV-17-C- 0044 and expires in November 2019. This effort directly relates to U.S. national security interests of regional peace and stability in Saudi Arabia. Any break in service will cause the fleets to be non-mission capable (NMC). The proposed contract will avoid a break in service.

To further investigate other opportunities for technical support, GDLS-C was sent an email on 12 April 2019 asking if GDLS-C was willing to sell the LAV Technical Data package (TDP). In response, GDLS-C stated that they are not willing to sell the proprietary FoLAV TDP. At this time, no other contractor would be able to provide system technical support for the USMC and SWORD Program without having access

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b. Unacceptable Delay: GDLS-C is the only source with the unique engineering and technical expertise required for the complex vehicle engineering tasks associated with the FoLAV. The proposed engineering effort requires a contractor with existing expertise and capabilities for the FoLAV to begin work without disruption to services previously provided. The contractor must possess the engineering expertise in relation to legacy and future vehicle configurations. Contractors without prior system experience do not possess the historical or current technical knowledge of the various vehicles of GDLS-C. The development of the expertise required to perform this effort in a competent manner (learning curve) would require a minimum time period estimated to be at least 72 months. GDLS-C is the only source with the engineering expertise and capability of developing timely and accurate responses to issues arising on the LAV electrical system, turrets, and total system integration of all variants.

Event Competitive (months)

Contract Award based on Source Selection Evaluation Board (SSEB)

Technical Data Package (TDP)/Interface Control Drawing (ICD) Development

Logistics Development 3

Engineering Change Proposal (ECP) Development

First Article Test (FAT) Build 3

FAT Evaluation 3

Total 72

(i) SSEB: When requested, the Source Selection Advisory Council (SSAC) performs a comparative analysis of the SSEB's evaluation of each proposal.

The SSAC then forwards a recommendation to the Source Selection Authority (SSA). With the above requirements it would be a lengthy process to review contractor proposals and the selection process would be about twelve (12) months. This may take longer depending on the complexity of the requirements.

(ii) TDP/ICD Development: The LAV is composed of over 16,000 individual components that will require reverse engineering. Reverse engineering will take an estimated 48 months to complete. This estimate is due to the time it takes to reverse engineer each item and the Interface Control Document required for ECPs to be developed.

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(iii) Logistics Development: The LAV is maintained through the use of over 200 Technical Manuals that cover the seven LAV variants. Developing and validating the logistics data that would be used to update the TMs would add three months to the effort and would be done concurrently to the TDP development.

(iv) ECP Development: It will take an additional three months to develop and process an ECP to the USG. This includes the time to implement an ECP process In Accordance with the PM LAV Configuration Plan that would allow the ECP to be added to the overall LAV Technical Data Package.

(v) FAT Build: It will take an additional three months to create the FAT Prototypes after the technical data is available from reverse engineering. This would include setting up a new supply chain for procurement.

(vi) FAT Evaluation: It will take an additional three months to complete validation.

This would include setting up new verification methods, documentation, facilities to conduct the validation activity. The Government conducts validation to ensure the contractor can operate the equipment and show it will perform in the way the Government expects. The contractor will required to put the equipment into operation and operate it step by step to show it will meet performance expectations.

6. Efforts to Obtain Competition:

a. Effective Competition: The Government will not compete this effort for the reasons stated above in section 5. The Government will post all notices required by FAR 5.201 for this action.

b. Subcontracting Competition: The solicitation and contract will contain the following clauses: FAR 52.219-8 "Utilization of Small Business Concerns," FAR 51.219-9 "Small Business Subcontracting Plan," and Defense Federal Acquisition Regulation Supplement 252.219-7003 "Small Business Subcontracting Plan (DoD Contracts).” To maximize competition at the subcontracting/vendor level, the Government will also include FAR 52.244-5 "Competition in Subcontracting.” The solicitation will request that the contractor propose positive goals for each of the socioeconomic categories of small businesses and the TACOM Life Cycle Management Command (LCMC) Office of Small Business Programs will review the subcontracting plan. ACC-WRN will incorporate the contractor's negotiated subcontracting goals into the contract.

7. Action to Increase Competition:

The Government is taking no further action to increase competition at this time. Only GDLS-C has the knowledge and expertise necessary to satisfy these requirements.

Although no further action to increase competition is contemplated at this time, the Government will continue to survey the marketplace and review our acquisition strategy should additional information be received. Any information received will be considered to determine if a competitive acquisition should be conducted or to determine potential future requirements.

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8. Market Research:

ACC-WRN and PM LAV issued a Sources Sought notice to Federal Business Opportunities from 28 March 2019 through 11 April 2019, in accordance with FAR 10.002(b)(2). The Sources Sought notice included questions related to System Technical Support activities, from the products and services the entity provides in support of the description of the STS/SSTS requirements, to the length of time the firm(s) have been in existence, and finally asking if the entity has provided the services outlined to the USG.

a. Additionally, PM LAV continuously engages in collaborative interactions with industry, organic research and development staff, PM-LAV, Saudi Arabian Management Office (SAMO) in on-going efforts to glean competitive resources.

b. The following firms responded to the RFI:

1) TOMCO Service Group

2) Jason Dozer

3) RV Global Solutions

4) CyQuest Business Solutions, Inc.

5) We Load Freight LLC

6) Automotive Management Services FZ-LLC

7) Davis Defense Group (DDG)

8) General Dynamics Land Systems Canada (GDLS-C), Inc.

Summary of Market Research:

Only GDLS-C has the experience, and resources necessary to provide the services under this proposed justification. No other firm is currently capable of providing the STS/SSTS required within the schedule requirements.

9. Interested Sources: To date, no other sources except as described in section 8 above have expressed an interest in this acquisition.

10. Other Facts:

Procurement History:

1) Contract W56HZV- 11-C-0076

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Contractor: GDLS-C, Inc.

Award Amount: $196,597.12

Date of Award: 18 February 2011

Requirement: The procurement of STS services in support of USMC and SANG FoLAV.

Competitive Status: Sole-Source basis

Authority: 10 USC 2304 (c)(1), FAR 6.302-1(a)(2)(ii) and (iii), “Only One

Responsible Source.”

2) Contract: W56HZV-17-C-0044

Contractor: GDLS-C, Inc.

Award Amount: $1,209,130.19

Date of Award: 30 November 2016

Requirement: The procurement of STS services in support of USMC and SANG FoLAV.

Competitive Status: Sole-Source basis

Authority: 10 USC 2304 (c)(1), FAR 6.302-1(a)(2)(ii) and (iii), “Only One

Responsible Source.”

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.

Typed Name: Kevin Horn Date: 30MAY2019

Title: Assistant Program Manager, Logistics Signature:

Digitally signed by

HORN.KEVIN.MARC.1096792820 Date:

2019.05.30 08:46:21 -04'00'

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.

HORN.KEVIN.MARC.1096792820

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Typed Name: Kevin Horn Date: 30MAY2019 _ Title: Assistant Program Manager, Logistics Signature:

Digitally signed by HORN.KEVIN.MARC.1096792820 Date: 2019.05.30 08:47:13 -04'00'

12. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. An Independent Government Cost Estimate (IGCE) will be prepared for each work directive under the proposed contract. Confirmation and endorsement of each work directive will be performed by the Canadian Commercial Corporation in accordance with DFARS 225.870-3(a)(2), and Appendix T-210 of the MOU with Canada, whereby CCC is responsible for conducting audits, verifying costs, and certifying these prices to the U.S.

Government.

Typed Name: Patricia Pierce Date: 25 Sep 2019

TITLE: Contracting Officer Signature: //ptp//

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

Typed Name: Patricia Pierce Date: 25 Sep 2019

TITLE: Contracting Officer Signature: //ptp//

HORN.KEVIN.MARC.1096792820

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Approval

Based on the foregoing justification, and as Senior Contracting Official pursuant to Army Material Command Head of the Contracting Activity Delegation of Authority #18-52, I hereby approve the procurement of up to 110,300 labor hours (Base year and two one-year options) of System Technical Support and System Sustainment Technical Support (STS/SSTS) services, plus incidental ancillary hardware and travel related expenses. This procurement will be awarded on an other than full and open competition basis pursuant to the authority of 10 USC 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.” It has an estimated cumulative value of $15,323,710., and is approved subject to the availability of funds, and provided the services herein described have otherwise been authorized for acquisition.

X Daniel J. Gallagher

Senior Contracting Official