Redacted11C0073P75.pdf

CMO Control No: 2013-046

W56HZV-11-C-0073

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: The Army Contracting Command-Warren (ACC-WRN), CCTA- ASG-B, Warren, MI 48397-5000, is the contracting activity for this action.

2. Description of Action:

a. ACC-WRN proposes to negotiate and award a modification to Contract W56HZV- 11-C-0073 to DCS Corporation of Alexandria, Virginia, on an other than full and open competition basis to provide continued technical support services for vehicle programs for Tank Automotive Research, Development, and Engineering Center (TARDEC) and the multiple program and project offices it supports. The modification would (i) extend the ordering window by 12 months and (ii) increase the current ceiling amounts by adding an additional 435,630 labor hours of technical support services and an estimated $12M for supporting material and travel. These amounts would not be obligated in the proposed modification itself; they would represent hours and dollars added to the current contract ceiling amounts, and would be available for execution on individually funded work directives under the contract. The estimated maximum value of the added hours and supporting material and travel is $56.2M.

b. Contract W56HZV-11-C-0073 is a Cost-Plus-Fixed-Fee (CPFF), Indefinite Delivery Indefinite Quantity (ID/IQ) contract with DCS Corporation for TARDEC technical support services both within the Continental United States (CONUS) and Outside the Continental United States (OCONUS). The current ordering period on the contract ends 31 January 2014. Extending the current ordering period through January 2015 will provide both continuity of service and a transition period for engineering services until the TACOM Strategic Service Solutions (TS3) contracts for continued work on these programs are in place (see Paragraph 2d below).

c. A CPFF contract is appropriate for this modification as performance involves the conduct of research and development and related technical services and because the level of effort is unknown for the various work directives until their individual scopes are defined, funded, and determined to fall within the overall contract scope.

A combination of Operation and Maintenance, Army (OMA), Other Procurement, Army (OPA), Army Working Capital Funds (AWCF), Procurement Appropriations, Army (PAA), and Research, Development, Test, and Evaluation (RDT&E) funds may be used for this action, with a majority expected to be RDT&E funds.

d. This proposed modification action, to add labor hours and material and travel dollars to raise the contract ceiling values, is necessary to provide contractual coverage until the new TS3 omnibus contract Multiple Award Task Order (MATO) suite can be awarded to continue work on critical programs that provide direct support to programs managed, integrated, engineered, and developed by TARDEC for

Program Manager Mine Resistant Ambush Protected (PM MRAP), Program Manager Light Armored Vehicle (PM LAV), Program Manager Robotic Systems Joint Project Office (PM RSJPO), Program Manager Heavy Brigade Combat Team (PM HBCT), Program Manager Stryker (PM Stryker), Program Executive Office Ground Combat Systems (PEO GCS), and Program Executive Office Combat Support/Combat Service Support (PEO CS&CSS). This modification will allow continuity of this contract for an additional 12 months, through 31 January 2015.

e. A competitive MATO contract family, specifically the TS3 contract suite, is anticipated to be awarded by January (CY) 2015 to replace the current contract upon its expiration. Extension of the ordering period of the current contract through January 2015 will allow enough time to write scope for new work directives to be executed under the newly awarded TS3 omnibus, thus providing continuity of coverage for TARDEC and the various program and project offices it supports.

3. Description of Supplies/Services:

a. The proposed contract modification to add hours and increase the ceiling for supporting material and travel will allow for the purchase, via work directives, of up to an additional 435,630 man-hours and up to $12M in supporting material and travel. The TARDEC Software Engineering Center (SEC), Ground Vehicle Robotics (GVR) Business Area, Vehicle Electronics and Architecture (VEA) Business Area, and Center for Systems Integration (CSI) will utilize these hours, material, and travel for urgent technical support services for internal and external projects, programs, and the PM offices listed in Paragraph 2d above. The technical support services to be performed will be specified on individually funded work directives, each of which will draw from the available cumulative contractual ceilings of hours and dollars for supporting material and travel, to provide critical ongoing development, engineering, and production efforts to support the warfighter.

b. Types of services this contract provides to date include:

Warfighter Information Network-Tactical (WIN-T) enhancements to Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems

Program management support

Systems Integration Lab (SIL) support

Integration of Global Information Grid (GIG) and Net Ready Key Performance Parameters (NR-KPP) into MRAP C4 systems

Training and maintenance of pre-fielding and fielded systems, including development of training materials and technical manuals and conducting training for the warfighter on the new or upgraded systems

Continuing systems and software support for new MRAP C4 systems

Support of critical warfighter machine interface technologies, hardware and software integration and prototype functions and configuration, and control of technology insertion programs for the key systems listed in Paragraph 3c below.

c. Key systems this contract supports to date include:

MRAP CS13 and DASH upgrades

PM ABCT Abrams, Armored Knight, and Bradley upgrades

PM Stryker

TARDEC VEA/VICTORY SILs, which feed critical technology to PEO GCS and

PEO CS&CSS

PM RSJPO for key interoperability of fielded and future unmanned ground systems

TARDEC Electrical Power Architecture Support

United States Marine Corp (USMC) Light Armored Vehicle (LAV) and SIL

TARDEC Dismounted Soldier Autonomy Tools (DSAT) program with the U.S. Army Special Operations Command (USASOC).

d. The estimated maximum CPFF value for the additional 435,630 man-hours is $44.2M plus the additional estimated $12M for supporting material and travel, for a maximum potential modification value of $56.2M. This modification will not exceed $56.2M but may be less, because these amounts represent increases in the contractual ceiling values and do not represent immediate obligations. Funds are obligated only per individual work directives issued under the contract, and the requested increases to the contractual ceilings will provide for issuance of work directives between the modification issue date and 31 January 2015. The previously negotiated composite hourly labor rates were $97.12 for CY12 and $98.48 for CY13.

CY14 hours are as yet not negotiated, but are anticipated to be approximately $101.40 per hour.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(2) as implemented by Federal Acquisition Regulation (FAR) 6.302-2, “Unusual and Compelling Urgency.”

5. Reason for Authority Cited:

a. The technical services described in Paragraph 3 above support critical programs which provide direct support to PM MRAP, PM LAV, PM RSJPO, PM HBCT, PM Stryker, PEO Integration, PEO GCS, PEO CS&CSS, and TARDEC. TARDEC is responsible for the integration, systems engineering, development, and management of command and control hardware and software, integration of new hardware as determined by the PM and PEO offices, and additional command and control items commonly referred to as C4ISR, which are being integrated in both CONUS and OCONUS locations.

b. DCS is the only contractor that can provide highly technical engineering services in the areas of software and hardware, development, design, analysis, and integration to SEC, GVR, VEA, and CSI. DCS has over 19 consecutive years of experience and can perform the effort without significant start-up and learning-curve delays.

Currently, DCS personnel are integrated in the design, integration, program management, and software development of the command and control capability for various tactical vehicles and weapon systems. Impact to the main programs and projects in which DCS is heavily involved are cited in descending order of the degree of detrimental impact to Army programs if the services provided under contract W56HZV-11-C-0073 were to cease before a successor contract is available:

i. PM MRAP Support: DCS is the only contractor that has and is currently providing the domain expertise and field experience needed to manage, develop, modify, and maintain the MRAP Command, Control, Communications and Computing (C4) systems and capabilities required by the PM MRAP C4 Team.

DCS is currently providing management and engineering support to multiple critical projects for PM MRAP, including the MRAP Caiman Command and Control On The Move (C2OTM) upgrade to a Multi-Terrain Vehicle (MTV), MRAP Capability Set (CS) 13 Integration, and MRAP Integrated Bridge development.

The results of these projects will be deployed to the field over the next year; each project has urgent milestones and schedules, and the timely fielding of each directly impacts the warfighters in Afghanistan and Korea. DCS engineers are involved in significant aspects and key elements of these projects and are providing developmental support directly to the PM overseeing these efforts.

DCS is also providing engineering support for the development of C4 systems required by these projects, developing and providing Integration Kits to be installed on the vehicles within these projects, and providing field and log support for the deployment and sustainment of the C4 systems within these projects.

With DCS’s extensive domain knowledge, MRAP experience, and skilled, multi-disciplined workforce, it is able to provide engineering support that is both unique and vital to these efforts. Transfer of the DCS allocated tasks to another contractor would require an unacceptable learning-curve delay estimated at over 180 days to bring the other contractor up to speed, as well as additional costs estimated at $18.4 to $22.8M based on the current hourly burn rate for a 180 day delay for these projects. Any delay in continuity of DCS support to these efforts will, as a consequence, prevent a key enabler from being provided to the warfighter and would impact their overall mission and safety.

ii. Warfighter Information Network-Tactical (WIN-T) Support: WIN-T is a critical part of the MRAP program that directly feeds the PM MRAP and PM WIN-T C4ISR requirements. DCS provides TARDEC with ongoing technical support in the integration, installation, documentation, maintenance, and fabrication of C4ISR systems on the many variants of MRAP vehicles. This function is vital in maintaining aggressive PM schedules and deliveries of vehicles for use in theater. DCS maintains and provides full documentation of engineering changes to systems and creates system drawings and installation and operations manuals necessary to provide the warfighter with the most current technology without the ability to use a finalized Technical Data Package (TDP) as a starting point. DCS provides logistical support in procuring materials, fabrication of kits, and testing and installation of systems whenever and wherever needed to meet the PM MRAP and PM WIN-T C4ISR requirements.

iii. Dismounted Soldier Autonomy Tools (DSAT) Support: The DSAT program requires continued DCS support due to DCS’s unique experience and knowledge of advanced Warfighter Machine Interface (WMI) technologies and concepts developed under predecessor GVR Advanced Technology Objective (ATO) and Science & Technology (S&T) programs on the prior technical services contracts.

These technologies include driving aids to support augmented tele-operation and dynamic waypoint navigation, digital mapping, mission planning, peripheral integration, and scalable interfaces, all of which are integrated using multi-operating system and multi-graphics environments. DCS provides expertise in the areas of WMI porting to unique Android operating systems and the integration of software services via distributed data services middleware. DCS also provides unique and specialized experience with systems engineering and design for robotic systems and autonomy. Furthermore, due to DCS’s experience with, and knowledge of, the aforementioned technologies and systems engineering approach, the DSAT program is able to quickly develop systems engineering products such as the DSAT Performance Specification, System Segment Specification, System Segment Design Document, Software Requirements Specification, Interface Requirements Specification, and Software/System Test documents for WMI and vehicle software components.

This aggressive schedule combined with the need to field a stabilized software baseline to soldiers in the field requires continued DCS support to ensure TARDEC GVR’s customer requirements are met in accordance with the aggressive schedule. Delay or discontinuity of DCS support would critically endanger the success of this mission.

c. If a contractor other than DCS were selected for award of this proposed bridge action, the start-up time for the new contractor would be approximately six months after award to position the requisite number of personnel in CONUS and OCONUS locations, plus up to an additional six months to fully integrate into the support positions before the contractor could provide the required services at the same performance level as the current contractor provides. In the aggregate, it would take from six to approximately 12 months for another contractor to transition into the support services required. The current contract expiration date is 31 January 2014;

the current award ceiling will be exhausted on or about that timeframe, and there are no other contract mechanisms currently in place to secure continuity of these critical engineering and technical services. This request for additional labor hours and supporting material and travel funding will allow uninterrupted provision of the essential support efforts summarized above to continue over the following 12 months through the revised contract expiration date of 31 January 2015.

d. Without continuous contract coverage during the period of transition to the new TS3 contract suite, the Army and USMC will be seriously harmed, as there would be no contractual mechanism to provide continuity of effort until the new competitive, follow-on MATO contracts are awarded and a contractor is in position to provide the necessary services. Any interruptions or delays to the vital MRAP capability, as well as to the other aforementioned programs this contract supports, are unacceptable because these agency requirements directly impact the warfighter. A break in service will cause upgrade maintenance and repair support to stop, thereby degrading the availability of vehicles. Without the required capabilities, the MRAP vehicles may be dead lined for any mission and training requirements. The warfighters rely on these MRAP vehicles to protect them from serious injury and loss of life. If the vehicles are dead lined, they are no longer fully mission capable and are inoperable to the warfighter. Furthermore, MRAP vehicles in Southwest Asia would be without experienced and qualified maintenance support, which is unacceptable because it puts the warfighters’ safety at risk.

6. Efforts to Obtain Competition: Market research has been conducted to support TS3, which is being competed for future services and targeted for award in January 2015. A 12-month extension to this contract will provide a bridge to the TS3 contract and allow sufficient time to construct the next competitive action. In accordance with FAR 5.202(a)(2), this proposed modification to the current contract will not be synopsized in Federal Business Opportunities (FedBizOpps).

7. Actions to Increase Competition: A competitive MATO contract family, specifically the TACOM omnibus (TS3) contract suite, is anticipated to be awarded by January 2015 to replace the current contract upon its expiration.

8. Market Research: Market research, consisting of an examination of the General Services Administration (GSA) Schedules within the past year, indicates there are potential sources for this type of work, but as indicated above, the incumbent is the only feasible source for providing the interim extension without a break in provision of necessary services. This research confirms there are sources that provide these types of services; however, no other source could perform the work within the required timeframe, as explained in Paragraphs 5c and 5d above.

9. Interested Sources: No other sources have written to express interest to date, since this is a bridge action until the competitive action for the new TS3 MATO contracts can be solicited and awarded. In accordance with FAR 5.202(a)(2), this proposed modification to the current contract will not be synopsized in the Federal Business Opportunities (FedBizOpps).

10. Other Facts:

a. Procurement History: The following contracts were awarded to DCS on a competitive basis.

Contract DAAE07-91-C-R078 was awarded on 27 September 1991. At completion, the value of the contract was $7,957,397 with 138,087 hours exercised.

Contract DAAE07-95-C-X088 was awarded on 26 September 1995. At completion, the value of the contract was $20,034,580 for 299,472 hours of effort.

Contract DAAE07-00-C-L034 was awarded on 30 May 2000. At completion, the value of the contract was $29,372,865 for 343,091 man-hours.

Contract W56HZV-04-C-0745 was awarded on 17 September 2004. At completion, the value of the contract was $153,444,985 for 1,414,189 man-hours.

Contract W56HZV-11-C-0073 was awarded on 29 December 2010. The current contract expires on 31 January 2014.

The current contract ceiling is approximately $153,850,000. The estimated CPFF for the additional 435,630 labor is $44.2M. The estimated cost for additional supporting material and travel is $12M. The total maximum modification value is $56.2M

The new total estimated value of the contract, inclusive of this proposed modification, is approximately $210M.

b. Acquisition Data Availability: The new competitive follow-on contract is expected to be awarded late in CY 2014; competitive performance specifications or performance objectives will be used.

c. Unusual or Compelling Urgency: Continued DCS support over the next 12 months is critical to meeting numerous urgent technical support services, including:

Core vehicle electronics science and technology development. DCS provides critical engineering support to TARDEC 6.2 and 6.3-funded vehicle electronics and architectures programs. A lapse or cessation of DCS support would result in unacceptable schedule slippages to these core efforts. In particular, design, development, integration, and test of vehicle power distribution networks and vehicle data networks would be affected, resulting in a one to two year slip to the completion dates for these efforts. PEO GCS is depending on these science and technology programs to complete as soon as possible for inclusion in future ground combat vehicle modernization efforts.

These efforts are key to the survival of our warfighters in the conduct of their missions. They provide modularity and commonality of vehicle electronic technologies as well as mission critical updates and upgrades to soldier survivability systems to increase readiness and respond to ever-changing threats, and to improve maintainability and supportability capabilities. The addition of up to 435,630 hours and a maximum $12M for supporting material and travel will ensure these programs and support to our troops are not adversely impacted as the Army proceeds forward in preparing a competitive, follow-on award of the TS3 MATO contract suite.

d. Subcontracting Competition: In an effort to ensure subcontracting competition, the current contract included the following provisions, which will continue to apply to any and all work covered by this proposed modification: FAR 52.244-5, “Competition in Subcontracting,” and FAR 52.219-8, “Utilization of Small Business Concerns.” DCS will be required to submit an updated Small Business Subcontracting Plan prior to award of the modification adding the additional hours.

11. Technical Certification: I certify 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: Jennifer Hitchcock Date: 20 Dec 2013

Title: Executive Director for Research Technology and Integration Signature: /signed/

TARDEC

12. Requirements Certification: I certify 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: Jennifer Hitchcock Date: 20 Dec 2013

Title: Executive Director for Research Technology and Integration Signature: /signed/

TARDEC

13. Fair and Reasonable Cost Determination: I hereby determine the anticipated cost to the Government for this contract action will be fair and reasonable. The contractor’s proposal will be reviewed using a cost analysis, in accordance with FAR 15.404-1(a), to discern whether the costs proposed are current and justifiable. The contractor’s proposal will also be reviewed by Government requirements personnel who will address the appropriateness of the proposed labor categories, material, travel, and other cost elements as requested by the Contracting Officer. The final negotiated agreement will consider all contractual requirements to support a determination of a fair and reasonable cost for this effort. The contractor will be required to submit certified cost and pricing data only if the proposed composite hourly rates differ from those currently on contract.

Typed Name: John M. Hopfner Date: 20 Dec 2013

Title: Contracting Officer Signature:

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

Typed Name: John M. Hopfner Date: 20 Dec 2013

Title: Contracting Officer Signature:

15. Concurrence:

_______________________ Date: ________________

KENNETH BOUSQUET

Principal Assistant Responsible for Contracting

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing justification, and pursuant to Delegation of Authority HCA 13-03, I hereby approve the issuance of a modification to contract W56HZV-11-C-0073 to provide for up to 435,630 man-hours of additional technical support services for the SEC, GVR, VEA, and CSI and an estimated $12M in associated material and travel costs. This approval is on an other than full and open competition basis with DCS Corporation pursuant to the authority of 10 U.S.C. 2304(c)(2) as implemented by FAR 6.302-2 and subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The maximum estimated value for this action is $56.2M.

Date: ___________ Signature: _____________________________________

MICHAEL D. VIGGATO

Deputy to the Commander