Redacted_-_JA_DSESTS _W56HZV-12-C-0199_P00082.pdf

CMO Control Number:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command–Warren (ACC-WRN).

2. Description of Action: ACC-WRN proposes to award a modification under contract W56HZV-12-C-0199 with DRS Network & Imaging Systems, LLC (DRS-NIS), Huntsville, Alabama, for services necessary to support the Abrams, M1A2 System Enhancement Program (SEP) and Abrams M1A1 Situational Awareness (SA) vehicles under the Ground Combat Services Program Executive Office for the Abrams platform for the United States Army. This will be a Cost-Plus-Fixed-Fee (CPFF) Term Contract, managed under Level of Effort (LOE) work directives. Procurement Appropriations Army and Operations and Maintenance, Army funding will be used. This contract modification award is projected for the 4th quarter of Fiscal Year 2016.

3. Description of Supplies/Services: The Contractor shall provide System Technical Support (STS) services, System Sustainment Technical Support (SSTS) services, and Post Production Software Support (PPSS) services for the Direct Support Electrical System Test Set (DSESTS), Embedded Diagnostics (ED), and Software Loader/Verifier (SL/V). This contract action is for the purchase of 5,406 option hours for the 6,000 to 8,000 series of CLINs currently incorporated into this contract. The hours support DSESTS and ED software and hardware necessary to support the Abrams, M1A2 SEP, and Abrams M1A1 SA for the United States Army. The estimated dollar value of this action is $679,884.05. The support services provided by the Contractor consist of the following:

Management and Administration: Provide lead engineering, logistics, and program management support. Manage and control resources and subcontractor performance.

DSESTS and ED: Analysis, technical publications, facility vehicle maintenance, Technical Data Package (TDP) maintenance and distribution markings, obsolescence monitoring, and product improvements.

Configuration Management: Provide insight and a demonstration of established configurations and data management processes applied in the performance of systems.

Technical Data Package Revision Services: Maintain updated TDPs, incorporating Government designs, upgrades, equipment integration, and analysis.

Contractor Field Service Representatives (FSRs): Provide technical repair and assistance for DSESTS and ED software/hardware upgrades. This effort will also include all Technical Manuals and Integrated Electronic Technical Manuals change support for the different platforms. This action will insure continuous support through 31 August 2016.

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is 10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B), Only one responsible source and no other supplies or services will satisfy agency requirements. Additionally, “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 unacceptable delays in fulfilling the agency’s requirements.”

5. Reason for Authority Cited: DRS-NIS (and its predecessor PEI Electronics, Inc.

who has since been acquired by DRS-NIS) has been the sole source contractor for the off vehicle (DSESTS) and on-board (ED) ground combat diagnostics systems since the 1990s. DRS-NIS is currently the only known manufacturer of the hardware and software of DSESTS and ED and the only known contractor with the ability to provide system technical support, technical updates, and program management for these systems.

a. An award to a source other than DRS-NIS would result in an unacceptable delay in meeting Army requirements. Listed below are the tasks and timeframes required to select and qualify another source to perform DSESTS and ED manufacturing and field service support as described in paragraph 2 above. The impact of absorbing a 4.5 year delay would result in a lack of ability to diagnose or repair the Abrams platforms and would render units Non-Mission Capable and adversely affect the operational readiness of the US Army. DRS-NIS is uniquely positioned to provide these required STS, SSTS, and PPSS services immediately upon contract award without unacceptable delays to the Government.

b. The schedule duplication resulting from using a competitive approach to acquire the ground combat vehicle diagnostics hardware, software, and services from a contractor other than DRS-NIS is described immediately below:

Task Length of Time Requirements Development, RFP, Source Selection Evaluation and Award 12 months Qualification of New Supplier (Prime Contractor 7 months Development of Technical Drawings and Logistics Data 18 months

Validation / Verification of Technical Documents 6 months Manpower Ramp Up (full rate production) 12 months TOTAL 4.5 years

*NOTE: The time estimates outlined above and explained below are based on actual durations incurred and MBTS Logistics Division Subject Matter Expert experience with On and Off-board Diagnostics Equipment. It ignores the fact that the Government lacks a complete technical data package sufficient for competition of this effort (see paragraph 5b below).

(i) Requirements Development, Request for Proposal, Source Selection Evaluation (SSE) and Award (12 months): During the requirements development phase of the acquisition, it would take the Government, based on an aggressive scope development timeline, 2 months to get an approved scope, 90 days for customary RFP development and issuance, 30-45 days for proposal receipt, and 6 months for SSE board planning timelines.

(ii) Qualification of a New Prime Contractor (7 months): During the proposal evaluation phase of a new competition, the Government would perform a pre-award survey to assess whether the new contractor could meet contractual requirements (7 days), including manufacturing and software processes (4-6 months), qualification of the new contractor’s quality systems (International Standards Organization 9001:2008, Quality Management Systems) compliance (2 weeks), as well as, contractor familiarization with Government Production Quality Deficiency Reports.

(iii) Technical Data and Logistics (18 months): Development and delivery of technical drawings and logistics data by a new contractor would require approximately 18 months including all performance requirements and drawings necessary to ensure software compatibility with the vehicle variant.

(iv) Validation and Verification (6 months): It would take approximately 6 months for a new contractor to learn the validation and verification process. Additionally, a new source would have to validate and verify its Technical Data Package and logistics documentation against the specific vehicle variant.

(v) Manpower (12 months): A new source would have to obtain security clearances, training on DSESTS, ED, SL/V programs, and training on Abrams vehicles. Additional time would be needed to gain the expertise and experience with DSESTS, ED, troubleshooting, repair, configuration management, and production. There is no reason to believe that a new contractor would be able to establish the organizational relationships, assemble a pool of technical experts with sufficient experience and knowledge of the DSESTS and ED for the customers listed in paragraph 3, and develop the processes necessary to accomplish the tasks listed above without duplicating DRS- NIS’ efforts to date. It is highly unlikely this amount of time would be recovered through competition.

c. The Government does not own a complete TDP suitable for full and open competition. Key component designs and manufacturing process are owned by DRS.

In an email response from DRS-NIS to the Contract Specialist dated 19 January 2016, the Contractor stated that they were “not interested in selling the intellectual property rights or data rights for the Abrams platforms diagnostic equipment.”

6. Efforts to Obtain Competition:

a. Effective competition: There is no plan to obtain competition for this contractual action on the prime contractor level for the reasons stated above in paragraph 5; however, this action will be synopsized in FedBizOpps as required by FAR 5.201, to maximize subcontracting opportunities.

b. Subcontracting competition: The Government will require DRS-NIS to submit a subcontracting plan IAW FAR 19.704 in order to achieve small business subcontracting opportunities. To ensure DRS-NIS competitively subcontracts to the maximum extent possible, this contract contains FAR Clause 52.244-5 titled Competition in Subcontracting.

7. Actions to Increase Competition: There are no anticipated actions to increase competition for subsequent procurements. The U.S. Government is currently in the process of replacing DSESTS with the Next Generation Automated Test Sets. It would not be cost effective for the Government to qualify a new vendor at this time.

8. Market Research: Pursuant to FAR 10.002(b)(2), a sources sought questionnaire was publicly posted to FedBizOpps on 29 Sep 2015 and closed on 14 Oct 2015. No responses were received. The Procurement Analyst performed market research in the form of internet web searches to include: Google, Bing, HIS Haystack Gold and the review of other recent market research done on similar service requirements (DSESTS and ED support and repair). As of 25 January 2016, results from the market research produced no companies that were capable of immediately satisfying these requirements.

9. Interested Sources: To date, no other sources have written to express an interest.

Notices required by FAR 5.201 shall be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement History

(1) Contract: W56HZV-12-C-0199

Contractor: DRS-NIS Requirement: FMS M1 Abrams diagnostic requirements, SL/Vs, DSESTS etc.

Basic Award Date: 2012 APR 13 Total amount: $86,100,000 Competitive Status: Sole Source Authority: FAR 6.302-1

Contract: W52H09-06-G-0001 Contractor: DRS-NIS Requirement: Support United States Government and FMS M1 Abrams diagnostic requirements, SL/Vs, DSESTS etc.

Delivery Orders: 0004, 07, 08, 09, 13, 43, 82, and 98 Basic Award Date: 2006 JUN 08

Total amount: $84.5M Competitive Status: Sole Source Authority: FAR 6.302-1

Contract: W56HZV-11-C-0364 Contractor: DRS-NIS Requirement: Support CMED STS diagnostic requirements, SL/Vs, DSESTS etc.

Award Date: 2011 JUL 28 Total amount: $2.3M Competitive Status: Sole Source Authority: FAR 6.302-1

Contract: W56HZV-11-C-0167 Contractor: DRS-NIS Requirement: Armored Breacher Vehicle ED STS Abrams Award Date: 2011 FEB 22 Total amount: $1.5M Competitive Status: Sole Source Authority: FAR 6.302-1

Contract: W56HVZ-11-C-0219 Contractor: DRS-NIS Requirement: ED STS Abrams Award Date: 2011 MAR 25 Total amount: $198,783.44 Competitive Status: Sole Source Authority: FAR 6.302-1

Contract: W56HVZ-11-C-0383 Contractor: DRS-NIS Requirement: DSESTS Upgrades Award Date: 2011 SEP 16 Total amount: $8.7M Competitive Status: Sole Source Authority: FAR 6.302-1

(2) Competitive Status of the previous contracts was Sole Source.

(3) The Justification and Approvals for the previous procurements were based on 10 USC 2304(c)(1), “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements as authorized by FAR 6.302-1.”

(4) The previous Justification and Approval stated that the Contractor was not going to sell the rights to its software or hardware. The previous Justification and Approval also mentioned that it was cost prohibitive at that time to pursue the development of a TDP and it would result in unacceptable delays in fulfilling the agency’s requirements.

(5) No prior contract for this requirement was accomplished using full and open competition.

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

(7) The previous contracts were Sole Source contracts that were issued under the authority of FAR 6.302-1. There have been no significant changes to the need for this support contract.

11/12. Technical/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.

DONALD J. BURTON Date: 14 April 2016___ Deputy Project Director, Main Battle Tank Systems Signature:

13. Fair and Reasonable Cost Determination

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on Cost Analysis and other than cost and pricing data.

Due to the dollar value certified Cost or Pricing Data will not be required in accordance with FAR 15.403-4.

LISA BEHNKE: Date: __16 April 2016_______

Contracting Officer Signature:

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

LISA BEHNKE Date: __16 April 2016_______

Contracting Officer Signature:

//S// Donald J. Burton

//S//LB

//S//LB

Approval

Based on the foregoing justification, I hereby approve the procurement of STS services, SSTS services, and PPSS services for the DSESTS, ED, and SL/V for an estimated total dollar value of $679,884.05 on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c), as implemented by FAR 6.302- 1(a)(2)(iii)(B), “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.” Approval is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: _22 April 2016__________ __//S//LB____________

LISA BEHNKE

Contracting Officer Heavy Combat Support Team