W56HZV-23-R-0093 JA w Amend 001 - DRS STS Follow-on Redacted.pdf

CMO Control Number: 2023-035 CMO Control Number: 2023-035 Amend 001

CUI

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command–Detroit Arsenal (ACC-DTA), Detroit Arsenal, Michigan, 6501 East 11 Mile Road, 48397-5000

2. Description of Action: ACC-DTA proposes to award a new five-year Cost-Plus Fixed Fee (CPFF), Completion and Level-of-Effort (LOE), follow-on contract with DRS – Land Electronics, (Leonardo DRS), in support of the Bradley Fighting Vehicle System (BFVS) Family of Vehicles (FoV), Armored Multi-Purpose Vehicle (AMPV) System, the Carrier of the Multiple Launch Rocket System (MLRS), and all derivatives of those vehicles. This contract effort will include five years of System Technical Support (STS) services.

The contract will allow for individual Work Directives (WDs) to be awarded as CPFF effort on a Completion or LOE basis, based upon the nature of the requirement(s), with approximately 33% estimated as Completion and 67% estimated as LOE. Each WD will detail the Scope of Work (SOW) to be performed by the contractor and Contract Data Requirements List (CDRL) items to be delivered by the contractor.

The Government will fund this action utilizing the following types of funding:

Type of Funding Purpose Research, Development, Test, and Evaluation

(RDT&E)

Note: RDT&E is used for new product development.

STS for PM MAV U.S.

Army vehicles

Army Procurement Appropriations (APA) / Army Wheeled Tracked Combat Vehicle (WTCV) Note: APA / WTCV is used to address reliability and / or obsolescence mitigation of current products.

STS for PM MAV U.S.

Army vehicles

3. Description of Supplies/Services: The planned contract efforts will allow for continuation of critical STS services to be provided for the vehicles managed by Project Manager Mounted Armored Vehicles (PM MAV). These services include the Software Integration Lab (SIL) for Program Management, Engineering, Logistics, and Quality Assurance efforts required to manage and update all on-vehicle components (e.g., Power, Diagnostics, and Optics hardware and software systems) that are source-controlled to Leonardo DRS on the BFVS, AMPV, and MLRS. This contract will be awarded for the potential use of total hours to support all tasks required to train, update, modify, and field software/hardware services for Power, Diagnostics, and Optics components produced by Leonardo DRS.

The support consists of the following:

a) Management and Administration support includes:

• Lead Engineering

• Logistics

• Program Management Support

• Manage and control resources

• Subcontractor Performance

b) Engineering support (Power, Diagnostics, and Optics) includes:

• Analysis

• Technical publications

• Facility vehicle maintenance

• Maintenance and distribution markings

• Obsolescence Monitoring

• Product Improvements

• Software Integration Lab (SIL)

c) Configuration Management / Technical Data Package (TDP) Revision Services

Support includes:

• Engineering Change Proposals (ECPs)

• Engineering Record Releases (ERRs)

• Request for Variances (RFVs)

• Provide insight and a demonstration of established configurations

• Incorporate Government designs and revisions

• Data management processes applied in the performance of systems

d) Integrated Logistics Support (ILS) includes:

• Provisioning

• Technical Manuals (TMs) and Integrated Electronic Technical

Manuals (IETMs)

• Supply Logistic Support Analysis (LSA)

e) Contractor Field Service Representative (FSR) support to Engineering and Development support only includes:

• Technical troubleshooting

• Maintenance, assistance, and training

• Data collection

• Software / hardware upgrades

The total estimated value of this procurement is as reflected in the table below. The estimate for this action is based on an Independent Government Cost Estimate (IGCE) dated 07 October 2022, which utilized the actuals of the current DRS STS/SSTS effort. The breakdown by year is as follows:

8. Market Research: PM MAV conducted market research in order to determine if other contractors are able to provide the services required under this effort. Pursuant to FAR 10.002(b)(2)(i) and (ii), a market survey was issued on 06 September 2022, in the form of a Sources Sought Notice (SSN), to determine whether new sources are capable of performing the tasks currently included under the follow-on Power, Diagnostics and Optics STS contract. This market survey included coverage of BFVS, AMPV, and MLRS for this action. The SSN closed on 20 September 2022 and was extended for another three days until 23 September 2022 in an effort to obtain responses. The market survey addressed all major tasks, including the following:

• General: Knowledge of networks – 1553, CAN J1939 and Ethernet; knowledge of optics and Soldier Machine Interfaces (SMI) of multiple systems; knowledge of power distribution and management; software development and support for fielded combat platforms.

• Vehicle Diagnostics: Interaction with vehicle systems to support vehicle health and management systems; support of IETMs; and activities to support and interface with Direct Support TMDE Reduction Application (DSTRA). Includes activity from LRU and SRU components to the vehicle health management systems.

• Soldier Machine Interface and Optics: Support how user interacts with vehicle systems for maintenance, diagnostics, and operation; input for system operations; feedback to user for status of systems and external optical system interface for situation awareness and movement.

• Power Distribution: Systems to provide information to user, control of power to vehicle systems, diagnostics support with troubleshooting to isolation, and interactivity with multiple networks.

• Model and Simulation Capabilities: Tools and capabilities.

• Test and Evaluation Capabilities: Capabilities internal, tools to assess field issues and corrective actions, and ability to support USG sites.

• Logistics: Support product fielded by documentation, TMs, IETMs, personnel for training and investigation of field problems, and activities for changes/support to fielded products.

Below is a summary of the evaluation results:

Vendor Business Size

Location Capability

Leonardo DRS Large Huntsville, AL Respondent has full capabilities with known history of development and

Melbourne, FL support to the Bradley and AMPV FoVs.

In October 2022, PM MAV SMEs performed an analysis of Leonardo DRS’ response. The SME team assessed the information provided by the single respondent against the areas to perform as the prime contractor for the STS contract. Although the Market Survey only received one response from potential vendors, the information was still assessed against the criteria. The SME team found that DRS possesses the available resources with sufficient and successful past experience to meet the required STS program deliverables. As DRS was the only contractor to respond to the USG’s sources sought survey for this requirement, no other identified vendor has the technical data to immediately perform this effort for comparison.

Additionally, on 22 February 2023, the USG conducted an internet survey and found no contractors with the capabilities to perform the work required. The USG did identify potential suppliers that could support a small amount of parts of products and services for this requirement, but these suppliers did not have capabilities to support all areas of power distribution, optics and diagnostics for both hardware and software. Additionally, the small amount of parts and services that could potentially be provided by another contractor are not able to be broken out from the larger effort for a competitive procurement.

9. Interested Sources: As detailed in Paragraph 8, only one contractor responded to the market survey. Leonardo DRS was determined to be capable of providing the technical services required by the Government for the vehicle systems managed by PM MAV. To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement History. The following contracts are STS/SSTS for the BFVS Power, Diagnostics, and Optics hardware and software systems.

(1) Contract Numbers and Dates

a) Contract: W56HZV-19-C-0055 Awarded: 17 April 2019 Value: $22.7M (Obligated as of 06 October 2022) Competitive Status: Non-competitive J&A Authority Cited: 10 U.S.C 2304(c)(1) and FAR 6.302-1

b) Contract: W56HZV-12-C-0199

Awarded: 13 April 2012 Value: $60.5M

c) Contract: W56HZV-12-C-0405

Awarded: 26 September 2012 Value: $7.3M

(2) A Justification and Approval (J&A) for Other Than Full and Open Competition was approved (CMO 2020-054) on 30 March 2020 by the Senior Contracting Official (SCO) for a contract modification to W56HZV-19-C-0055 to add 193,020 hours, include AMPV and the Carrier of the MLRS, and extend the period of performance of the current STS/SSTS contract from three years to five years.

(3) No prior contract for this STS/SSTS requirement was accomplished using full and open competition. As noted in section 10.a.(1), all previous contracts were awarded on a sole source basis using the authority at 10 U.S.C. 2304(c)(1) (since renumbered to 10 U.S.C. 3204(a)(1) and FAR 6.302-1.

(4) No unusual patterns were revealed by the procurement history.

(5) The previous justification was issued under the authority of FAR 6.302-1. The circumstances justifying the previous J&A were based on the fact that only DRS has the engineering expertise and experienced personnel capable of developing timely and accurate responses to issues relating to Power, Diagnostics, and Optics components, including SIL for BFVS, AMPV, and MLRS, without “unacceptable delays in fulfilling the agency’s requirements.”

c. Other facts. None.

11. 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.

DATE: 07MAR2023

HEATHER MOLITORIS

DPdM BRADLEY

MOUNTED ARMORED VEHICLES (MAV)

12. Requirements Certification: I certify that the supporting data under my cognizance

DATE: 7MAR2023

LTC MARIO IGLESIAS

PdM BRADLEY

13. Fair and Reasonable Cost Determination: The negotiated price will be determined fair and reasonable through a combination of cost analysis to thoroughly analyze each of the proposed individual cost elements, in addition to conducting a price analysis to ensure the proposed price is consistent with the Independent Government Cost Estimate (IGCE) and actual historical pricing. Since this action is a continuation of an existing contract, actual pricing history is available for evaluation purposes. Army Contracting Command – Detroit Arsenal (ACC-DTA) has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the PCO by performing the Cost and Price analysis. This analysis will also be supported by a Project Manager – Mounted Armored Vehicles (PM-MAV) technical review. The PCO will request that engineers or similar personnel familiar with the end item review labor types and quantities to ensure that what is proposed is fair and reasonable. The PM MAV Engineering Technical reports will be used by the Cost/Price Analyst to develop a recommended negotiating position. This detailed Government Position will be approved in a comprehensive Business Clearance Review consisting of reviews from senior contracting officials at ACC-DTA. Certified Cost or Pricing Data will be required and will form the basis for this analysis. The results of negotiations, and the detailed Fair and Reasonable determination from the Contracting Officer, will be documented in a Post- Negotiation Memorandum (PNM) that will be review and concurred upon by senior Contracting personnel within the Pricing Division.

DATE: 08MAR2023

MARK E. OTTO

PROCURING CONTRACTING OFFICER

Amendment 001 to JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command–Detroit Arsenal (ACC-DTA), Detroit Arsenal, Michigan, 6501 East 11 Mile Road, 48397-5000

2. Description of Action: ACC-DTA proposes to award a new five-year Cost-Plus Fixed Fee (CPFF), Completion and Level-of-Effort (LOE), follow-on contract with DRS – Land Electronics, (Leonardo DRS), in support of the Bradley Fighting Vehicle System (BFVS) Family of Vehicles (FoV), Armored Multi-Purpose Vehicle (AMPV) System, the Carrier of the Multiple Launch Rocket System (MLRS), and all derivatives of those vehicles. This contract effort will include five years of System Technical Support (STS) services.

The contract will allow for individual Work Directives (WDs) to be awarded as CPFF effort on a Completion or LOE basis, based upon the nature of the requirement(s), with approximately 33% estimated as Completion and 67% estimated as LOE. Each WD will detail the Scope of Work (SOW) to be performed by the contractor and Contract Data Requirements List (CDRL) items to be delivered by the contractor.

The Government will fund this action utilizing the following types of funding:

Type of Funding Purpose Research, Development, Test, and Evaluation

(RDT&E)

Note: RDT&E is used for new product development.

STS for PM MAV U.S.

Army vehicles

Army Procurement Appropriations (APA) / Army Wheeled Tracked Combat Vehicle (WTCV) Note: APA / WTCV is used to address reliability and / or obsolescence mitigation of current products.

STS for PM MAV U.S.

Army vehicles

3. Description of Supplies/Services: The planned contract efforts will allow for continuation of critical STS services to be provided for the vehicles managed by Project Manager Mounted Armored Vehicles (PM MAV). These services include the Software Integration Lab (SIL) for Program Management, Engineering, Logistics, and Quality Assurance efforts required to manage and update all on-vehicle components (e.g., Power, Diagnostics, and Optics hardware and software systems) that are source-controlled to Leonardo DRS on the BFVS, AMPV, and MLRS. This contract will be awarded for the potential use of total hours to support all tasks required to train, update, modify, and field software/hardware services for Power, Diagnostics, and Optics components produced by Leonardo DRS.

The support consists of the following:

a) Management and Administration support includes:

• Lead Engineering

• Logistics

• Program Management Support

• Manage and control resources

• Subcontractor Performance

b) Engineering support (Power, Diagnostics, and Optics) includes:

• Analysis

• Technical publications

• Facility vehicle maintenance

• Maintenance and distribution markings

• Obsolescence Monitoring

• Product Improvements

• Software Integration Lab (SIL)

c) Configuration Management / Technical Data Package (TDP) Revision Services Support includes:

• Engineering Change Proposals (ECPs)

• Engineering Record Releases (ERRs)

• Request for Variances (RFVs)

• Provide insight and a demonstration of established configurations

• Incorporate Government designs and revisions

• Data management processes applied in the performance of systems

d) Integrated Logistics Support (ILS) includes:

• Provisioning

• Technical Manuals (TMs) and Integrated Electronic Technical

Manuals (IETMs)

• Supply Logistic Support Analysis (LSA)

e) Contractor Field Service Representative (FSR) support to Engineering and Development support only includes:

• Technical troubleshooting

• Maintenance, assistance, and training

• Data collection

• Software / hardware upgrades

• Support Material Fielding Teams - Continental United States

(CONUS) and Outside Continental United States (OCONUS)

• Vehicle De-processing / Preparation for Issue (PFI) for hand off to units

• Designated locations by PdM Office

• Diagnostics and repair of Power Allocation Transfer Hub Solid

State Power Controller, Digital Video Distribution Box, Smart Power Management Unit, Power Management Diagnostic Controller, Data

Distribution Unit Expandable, Portable Maintenance Aid, Driver Viewer Enhanced, Driver Viewer Enhanced – Wide, and Driver Switch and Indicator Panel.

The total estimated value of this procurement is as reflected in the table below. The estimate for this action is based on an Independent Government Cost Estimate (IGCE) dated 07 October 2022, which utilized the actuals of the current DRS STS/SSTS effort. The original IGCE was amended on 28 April 2023 to reflect added scope as indicated in paragraph 3e. The breakdown by year is as follows:

Year 1

(2024) Year 2 (2025)

Year 3 (2026)

Year 4 (2027)

Year 5 (2028)

Total Estimated

Initial

AMD 001

4. Authority Cited: No Change.

5. Reason for Authority Cited: No Change.

6. Efforts to Obtain Competition: No Change.

7. Actions to Increase Competition: No Change.

8. Market Research: No Change.

9. Interested Sources: No Change.

10. Other Facts: Amendment 001 adds scope as indicated in paragraph 3e. Estimated hours and dollars are adjusted per updated IGCE, dated 28 April 2023.

11. Technical Certification: I certify that the supporting data under my cognizance, DATE: 07MAR2023

HEATHER MOLITORIS

DPdM BRADLEY

MOUNTED ARMORED VEHICLES (MAV)

Amendment 001 Certification:

DATE:07AUG2023

HEATHER MOLITORIS

DPdM BRADLEY

12. Requirements Certification: I certify that the supporting data under my cognizance

DATE: 7MAR2023

LTC MARIO IGLESIAS

PdM BRADLEY

MOUNTED ARMORED VEHICLES (MAV)

Amendment 001 Certification:

DATE: 18AUG2023 LTC MARIO

IGLESIAS

PdM BRADLEY

13. Fair and Reasonable Cost Determination: The negotiated price will be determined fair and reasonable through a combination of cost analysis to thoroughly analyze each of the proposed individual cost elements, in addition to conducting a price analysis to ensure the proposed price is consistent with the Independent Government Cost Estimate (IGCE) and actual historical pricing. Since this action is a continuation of an existing contract, actual pricing history is available for evaluation purposes. Army Contracting Command – Detroit Arsenal (ACC-DTA) has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the PCO by performing the Cost and Price analysis. This analysis will also be supported by a Project Manager – Mounted Armored Vehicles (PM-MAV) technical review. The PCO will request that engineers or similar personnel familiar with the end item review labor types and quantities to ensure that what is proposed is fair and reasonable. The PM MAV Engineering Technical reports will be used by the Cost/Price Analyst to develop a recommended negotiating position. This detailed Government Position will be approved in a comprehensive Business Clearance Review consisting of reviews from senior contracting officials at ACC-DTA. Certified Cost or Pricing Data will be required and will form the basis for this analysis. The results of negotiations, and the detailed Fair and Reasonable determination from the Contracting Officer, will be documented in a Post- Negotiation Memorandum (PNM) that will be review and concurred upon by senior Contracting personnel within the Pricing Division.

DATE: 08MAR2023

MARK E. OTTO

PROCURING CONTRACTING OFFICER

Amendment 001 Certification:

DATE: 18AUG2023

MARK E. OTTO

PROCURING CONTRACTING OFFICER

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