RedactedACC13C0261.pdf

CMO# 2012-160

Department of the Army

Justification and Approval for Other Than Full and

Open Competition Justification

1. Contracting Activity: The United States Army Contracting Command – Warren is the procuring activity responsible for this action.

2. Description of Action: Approval is being requested for a new cost-plus-fixed-fee, Work

Directive (WD) driven contract to General Dynamics Land Systems (GDLS), of Sterling

Heights, Michigan. The contract will not exceed 50,000 hours of labor and engineering services to reduce the current weight of the Light Armored Vehicle (LAV) while maintaining lethality and survivability of the vehicle. RDTE funds are available for this contract.

3. Description of Supplies/Services:

This effort seeks to reduce vehicle weight. The engineering services to be provided under this requirement include: conducting a detailed design analysis of a Government Furnished Vehicle’s

(GFV’s) architecture; manufacturing a vehicle using materials to reduce weight but maintain the vehicle’s maneuverability and protection characteristics; and supporting government testing of the manufactured vehicle.

The contract period of performance shall be no more than 36 months. This contract shall be structured as a base effort for 15,000 hours with an option for up to 35,000 additional hours. The options will be exercised incrementally as WDs are awarded and funding becomes available.

Each work directive will have its own period of performance. The first year is valued at $250k with a total estimated cost, including option years, of $6.5M.

4. Authority Cited: Acquisition of this requirement is authorized under authority of 10 U.S.C.

2304 (c)(1) as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source and No Other

Supplies or Servies Will Satisfy Agency Requirements”.

5. Reason for Authority Cited: Acquisition using other than full and open competition, under the authority of 10 U.S.C. 2304(c)(1) and as implemented by FAR 6.302 -1(a)(2)(i)(A), is justified due to the unique qualifications of the proposed contractor and the highly specialized capability which are required.

This effort requires the contractor to have intimate knowledge of the vehicle requirements, configuration, and operational characteristics. The LAV is expected to undergo a significant evolution during the course of this effort. It is envisioned that large portions of the vehicle structure will be substituted with advance materials. It is vital that the contractor who performs this effort is thoroughly familiar with the goals and vehicle characteristics so that the project will be completed within schedule. Additionally, the contractor will need to disassemble the LAV-25.

Specifically, the contractor will need to separate the upper and lower hull without damaging the lower hull or releasing the residual stresses.

The Contractor must be able to acquire the current LAV-25 technical product data either directly or through reverse engineering, as the Technical Data Package (TDP) contains all the interface information with other systems.

Based on the above, only General Dynamics Land Systems (GDLS) can enter the project without a learning curve for the LAV. GDLS has been in full production of the LAV system since its initial award and owns the LAV TDP. If this contract were to be awarded to another contractor the delay would significantly stall the project as GDLS owns the TDP and has no intention of selling it to the Government or other contractors.

Only GDLS can enter the project with full understanding of the prior alternatives and work that was conducted under previous R&D efforts. It will be able to immediately execute this contract without second guessing the prior work, duplicating effort, thoroughly investigating the relationship between the requirements and the material and architecture choices, or other actions that could delay the project by at least 6 months and cause a loss of funding which must be awarded by the end of Fiscal Year 2012.

GDLS has experience in the development of the composite systems for armored combat vehicles.

It understands the environmental, operational, and ballistic requirements of the LAV as well as emerging requirements yet to be formalized. GDLS has extensive composite laboratories on its campus in Sterling Heights, Michigan, where the majority of the work will take place.

GDLS has developed special tools and processes for dis-assemblying the upper half of the vehicle while maintaining the structural integrity of the lower half of the vehicle.

GDLS is the only contractor that can cost effectively and simultaneously meet all these requirements due to the fact that GDLS owns the TDP, which another company would have to purchase, which GDLS will not sell.

6. Efforts to Obtain Competition: This action will be synopsized in the FedBizOpps. All written responses will be considered.

7. Actions to Increase Competition: Other than synopsizing the requirement, no formal action to increase competition is contemplated at this time. The Government shall continue to survey the marketplace and review our acquisition strategy should additional information be received.

Any information received shall be considered to determine if a future acquisition should be conducted as a competitive action.

8. Market Research: The market research conducted was limited to the Michigan companies, since a majority of the funding has come from the Michigan Economic Development

Corporation so the work must be performed in the State of Michigan.

FAR 10.002(B)(2) has been referenced and several of the acceptable forms of Market Research have been conducted:

(iv) 1 May 2012, queried the government-wide database of contracts and other procurement instruments intended for use by multiple agencies to identify if other similar efforts have been contracted. None were identified.

(v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers. TARDEC spoke with several military vehicle manufacturers at the National

Defense Industrial Association (NDIA) expo 15 May 2012. General Dynamics and Navistar, amongst others, all stated that the OEM of a vehicle platform is the best candidate for this type of work due to its intimate knowledge of the materials, processes, and construction of said vehicles.

(vii) 7 May 2012, searched to identify other manufacturers of the LAV-25, the only one being

GDLS.

9. Interested Sources: To date, no other sources have written to express an interest. However, as required by FAR 5.201(d) this action shall be published in Fed Biz Opps, and any proposals received shall be considered.

10. Other Facts:

a. Procurement History: N/A

b. Acquisition data availability. GDLS has stated that it is not interested in selling the TDP for this platform.

c. Unusual and compelling urgency: N/A

d. Subcontracting competition. Given this is a research contract, some areas of specialized capability and expertise may limit the number of qualified suppliers, such as in specialized weld heads capable of welding steel to aluminum. In other areas, such as tooling development, competition should be widely available. The government will request and monitor the contractor to openly bid any and all appropriate subcontracts. The Contractor will be required to provide a

Small Business Subcontracting Plan per FAR 52.219-8.

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.

Typed Name: David Thomas Date: _14 JUN 2012__________________

Title: Signature: _______________

12. 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.

Typed Name: Richard J. Gerth Date: _14 JUN 2012__________________

Title: Signature:

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost for this contract action will be fair and reasonable.

The contractor’s proposal shall be reviewed using cost/price analysis to discern whether the costs proposed are current and justifiable. Furthermore certified cost or pricing data will be obtained from the contractor. The final negotiated agreement shall give full consideration to all contractual requirements including the performance period to support a determination of a fair and reasonable cost for this effort.

6/27/2012

LYNN M. BYRNE

Contracting Officer

14. Contracting Officer Certification:

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

6/27/2012

LYNN M. BYRNE

Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the procurement of engineering services to reduce the Light Armored Vehicle (LAV) weight provided by the OEM General Dynamics Land

Systems of Sterling Heights, Michigan, on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) and FAR 6.302-1, subject to availability of funds, and provided the services and property herein described have otherwise been authorized for acquisition. The total value of this contract shall not exceed $6.5 million.

DATE:_____________________ SIGNATURE:____________________

LA RUTH SHEPHERD

Competition Advocate