ACC1939.pdf

CMO Control #: 2014-170; MaxxPro FoV

Amendment No. 1 Department of the Army

Justification and Approval For Other than Full and Open Competition

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

2. Description of Action: (Amended)

The proposed new contract action is a Cost Plus Fixed Fee (CPFF) Indefinite Delivery Indefinite Quantity (IDIQ) contract with the Original Equipment Manufacturer (OEM) Navistar Defense LLC (Navistar), located in Lisle, IL. This action procures System Technical Support (STS)/System Sustainment Technical Support (SSTS) services through 31 December 2018 for the in-production and out-of-production Mine Resistant Ambush Protected (MRAP) MaxxPro Family of Vehicles (FoV). The funds utilized are Other Procurement Army (OPA), Foreign Military Sales (FMS), Operation and Maintenance-Army (OMA), Research, Development, Test, and Evaluation (RDT&E), and funds from other United States services depending on program requirements.

Based on the revised Independent Government Cost Estimate (IGCE) completed 16 December 2014, the total estimated value of the STS/SSTS contract $83,424,223.

3. Description of Services: (Amended)

The Government proposes contract award to Navistar in support of the MaxxPro FoV.

The purpose of this procurement is to provide STS/SSTS support for the in-production and out-of-production MaxxPro FoV. The services to be procured will be further defined by individual task orders issued throughout the contract’s period of performance and could include any of the STS and SSTS services listed below. Hardware may be procured under this contract but only if it will be incidental to the STS/SSTS services being procured. This contract will allow the Government to order up to 713,392 hours over the four year contract period that will expire on or about 31 March 2019.

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

b. Engineering Support: Provide design, analysis, and test review for required upgrades to meet Capabilities Production Document 1.1 compliance.

c. Configuration Management: Manage and track required spare parts and provisioning through Depot Logistics Agency (DLA) and other sources to ensure adequate Government field spare parts inventory.

d. Technical Data Package Revision Services: Maintain updated Technical Data

Package (TDP) incorporating Government designs, upgrades, equipment integration, and analysis. Support later-stage logistics and provisioning.

e. Analysis of Field Problems: Provide design, analysis, and test review for emerging field issues requiring safety and engineering resolution.

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f. Software Support Equipment: Maintain software associated with vehicle subsystems that must be supported in coordination with OEM vehicle subcontractors.

g. System Test Program Description: Support upgrades, part swaps, and test failure analysis based on Full Material Release testing conducted by the Government at various test centers.

h. Integrated Logistics Support (ILS) Automated Data Processing (ADP) Systems Development: Provide provisioning data input for systems as

Government moves to online manuals.

i. Special Tools and Support Equipment: Identify and procure non-standard tools that are not part of the US military tool inventory.

j. Product Assurance and Quality: Resolve Product Deficiency Reports to ensure continuous product improvement and issue resolution. Deliver quality engineering and quality assurance support services as defined by individual task orders.

k. Support for Government-Furnished Vehicles: Maintain Government-furnished vehicles while in Navistar’s possession for directed design upgrades and logistics actions.

l. Logistics Management Information for Distribution: Provide required part data during provisioning process to ensure essential data is available and provided for Government logistics systems.

m. Publications: Support both Commercial-Off-The-Shelf (COTS) manuals for initial fielding as well as development of Government Technical Manuals (TMs).

n. Integrated Logistics Support: Provide recommendation of Authorized Stockage

List (ASL), Prescribed Load List (PLL), and Battle Damage and Repair (BDAR) parts. Procure initial parts until provisioning is complete.

o. Modification Work Orders (MWOs): Develop MWOs in coordination with the

Government to incorporate required upgrades and solutions into fielded vehicles.

p. Training Equipment: Develop training for subsystem training aids and egress trainers.

q. New Equipment Training (NET): Develop Operator NET (OPNET) and Field

Level Maintenance NET (FLMNET) programs.

r. Contractor Field Service Representatives (FSRs): Provide technical repair and assistance, advise, and make recommendations to instruct Government personnel in operations, maintenance, repair, and parts supply. FSRs may be located either in the Continental United States (CONUS) or Outside the Continental United States (OCONUS).

The total estimated value of the STS/SSTS contract is $83,424,223 as detailed below and based on the revised Independent Government Cost Estimate (IGCE) dated 16 December 2014.

4. Authority Cited: (no change)

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 Army Regulation (FAR) 6.302-1(a)(2)(iii)(A) and (B), “Only One Responsible Source and No

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Other Supplies or Services Will Satisfy Agency Requirements,” and would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Army Program Office (APO) MRAP MaxxPro requirements.

5. Reason for Authority Cited: (no change)

Award of this action on a sole source basis is justified because the services required cannot be procured from sources other than the MaxxPro FoV OEM, Navistar. Navistar owns the necessary MaxxPro technical data needed to complete the activities required under this contract. Navistar is the only source capable of providing the services described herein without unacceptable delays attributable to reverse engineering of vehicles and substantial duplication of costs that are not expected to be recovered through competition.

a. Background: (Amended)

(1) The Government awarded contract W56HZV-10-C-0011 for the procurement of

STS/SSTS Services in support of MaxxPro FoV to Navistar on 27 October 2009. The current period of performance for contract W56HZV-10-C-0011 ends 31 March 2015.

The anticipated period of performance on this contract is 1 April through 31 March 2019.

Services are needed to support the MaxxPro FoV enduring fleet, not only with upgrade enhancements for fleet readiness and Soldier safety, but also the upgrade and reset efforts being performed at Ft. Bliss, El Paso, TX, Red River Army Depot (RRAD), Space and Naval Warfare Systems Command (SPAWAR), West Point, MS, and Livorno, Italy.

Additionally, services are required to support remaining activities in Operation Enduring Freedom (OEF). FSRs are currently stationed at these locations, among others, providing expertise for efforts required for fiscal year (FY) 2015 through FY2018 fielding dates, and until the full enduring fleet is completely upgraded and reset and fielded to Army Prepositioned Stock (APS) sites around the world. It is also anticipated that this contract will provide support for potential FMS requirements with various countries that have already inquired about MaxxPro vehicles and services, along with support to the United States Marine Corp (USMC) and the United States Air Force (USAF), mainly for FSR and engineering support. In order to continue support for these ongoing efforts, a follow-on contract must be awarded by 31 March 2015.

b. Unique Qualifications of Navistar: (no change)

As the OEM of the MaxxPro, Navistar owns the drawings and technical data needed to provide STS/SSTS services. APO MRAP does not own vehicle TDPs for the MaxxPro FoV. The Government lacks the data rights to the MaxxPro FOV TDPs needed to conduct a competitive procurement for this requirement. Navistar developed and maintains the only existing collection of technical information on the MaxxPro FoV, including technical analyses, trade-off studies, and problem investigation reports, and has produced vehicles and related components since 27 October 2009. Navistar also maintains responsibility for overall configuration control of the MaxxPro FoV. In June 2011, the Government contacted Navistar concerning rights of use of Navistar technical

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(1) Further, only Navistar has the corporate experience and technical expertise required to to support MaxxPro FOV mission requirements without unacceptable delay and duplication of cost and effort. This conclusion is supported by the fact that since the start of MaxxPro production in 2007, the OEM made over 1,000 engineering changes to the vehicle, most of which were urgently needed in OEF. Major engineering changes were required by Joint Urgent Operational Need Statements (JUONS) and Operational Needs Statements (ONS) to improve safety and survivability. As a result, many of the engineering changes were not fully provisioned, and installation instructions and MWOs were not developed and authenticated. The Government has neither a validated current configuration nor verified TMs reflecting all of the changes made to these vehicles with current provisioning data. The TM effort is currently on contract with Navistar, but is not expected to be completed until December 2016 for the MaxxPro Dash and November 2017 for the MaxxPro Long Wheeled Base Ambulance vehicles (LWB AMB). To complete the MaxxPro Dash and LWB AMB sustainment efforts, Navistar will need to complete a System National Maintenance Work Requirement (NMWR), NET, Instructor and Key Personnel Training (I&KPT), and FLMNET by August 2019. The proposed contract will be an IDIQ, which will allow for task orders to be awarded up to March 2019 to carry the System NMWR into August 2019 for completion.

(2) Navistar is the only source with the unique engineering and technical expertise required for the complex vehicle engineering tasks associated with the MaxxPro FoV, outlined above, as well as the FSR and logistician tasks. These efforts proposed for award require a contractor with existing expertise and capabilities for the MaxxPro FoV to begin work without disruption in the STS/SSTS services previously provided. To undertake the required engineering and technical tasks, a contractor must first understand the current vehicle engineering, technical, and support needs in relationship to past and future vehicle configurations. Contractors without prior MaxxPro vehicle experience do not possess or have the access to the unique technical knowledge, experience, and historical data held by Navistar. The OEM is the only source with the technical expertise and body of experienced personnel capable of developing timely and accurate responses to issues arising on the electrical system, armor requirements, and total system integration of all vehicles.

(3) Additionally, Navistar has the trained personnel with expertise and experience with MaxxPro FoV design, trouble shooting and repair, configuration management, and production. With these resources, Navistar is uniquely positioned to continue these required STS/SSTS services immediately at the time of award.

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(4) Troubleshooting, integration of components, and future upgrade developments under this contract, such as the Suspension Upgrade of the Electronic Stability Control (ESC) System, will require Navistar’s expertise and will involve extensive use of its proprietary data. Therefore, Navistar is the only contractor with the technical knowledge and expertise required to conduct upgrade development efforts to meet the mission requirements and maintain vehicle performance specifications without delay and duplication of costs and effort.

c. Unacceptable Delay: (no change) Based on professional knowledge and comparison to similar work performed on similar systems, APO MRAP Cost Analysts and Engineers estimate that procuring these services through competitive procurement would take approximately 48 months.

(1) Based on the Government’s experience with other programs, such as the

Family of Medium Tactical Vehicles (FMTV) program, where STS or SSTS type of tasks are broken out and competed, it would take a new contractor approximately three years to develop the expertise required to perform MaxxPro FoV STS and SSTS efforts at the skill level demanded by these complex vehicles. In order to provide the services as described in paragraph 3, a contractor must have access to the TDP.

Because Navistar owns the vehicle TDP and is unwilling to sell it, this information would only be available through reverse engineering. Based on professional knowledge and comparisons to similar work performed on MRAP systems and variants, APO MRAP Cost Analysts and Engineers estimate it would take approximately 36 months to reverse engineer a MaxxPro to develop a competitive TDP. Further, efforts to develop TMs required to compete this requirement are ongoing; however, they will not be complete until December 2016 for the Dash and November 2017 for the LWB AMB.

(2) After the development of the necessary technical data, award to any source other than Navistar through a competitive acquisition would result in an additional delay estimated at approximately 12 months for acquisition efforts and contractor personnel hiring, training, and equipment obtainment. This includes acquisition lead-time of 45 days to prepare a solicitation package, 15 days to synopsize, 30 days for proposal receipt, 60 days for proposal evaluation, and 30 days to execute an award to another source. Further, based on comparisons with similar efforts, MRAP Cost Analyst and Engineers estimate that it would take any source other than Navistar approximately 6 months to obtain equipment and hire and train sufficient personnel in order to support the services required for this effort. As discussed in paragraph 8, market research shows Navistar is the only source that currently has the resources required to immediately begin service. This is because only Navistar has the existing trained personnel, equipment, and facilities to support STS/SSTS efforts.

(3) The below milestone comparison chart reflects the estimated lead time difference between the proposed sole-source acquisition with Navistar Defense and a competitive procurement.

Event

Sole

Source

Competitive

J&A Approval Oct 2014 N/A

Sole Source Procurement Package Oct 2014 N/A

Competitive Procurement Package and TDP update

N/A

May 2017

RFP/Solicitation Release Nov 2014 July 2017

Receipt of Proposals Nov 2014 Aug 2017

Source Selection Evaluation Board N/A Oct 2017

Negotiations Dec 2014 N/A

Contract Award Dec 2014 Nov 2017

Hiring, Training and equipment purchase lead time

N/A

May 2018

Ready to perform services Dec 2014 May 2018

(4) Award to any source other than Navistar would compromise the Army’s ability to meet the APS fielding schedules imposed by the Department of the Army Operations G3/5/7 office and jeopardize the current training plans for units deploying into theater.

The APS effort must be completed in order to field vehicles with the communication systems required for wartime events and insure interoperability between vehicles within units and interoperability between units and other units. Delays would limit the ability to fill APS. These war stocks are located in strategic regions of the world and can quickly be mobilized to address any emergency. The MaxxPro FOVs are required to be fielded in APS 2, APS 3, APS 4, and APS 5. Fielding has begun in APS 5, located in Kuwait. It is critical that the MaxxPro fleet be ready to protect the war fighter in current and future operations. Disruption of STS/SSTS services will ultimately compromise the availability and quality of vehicles because they will be lacking current needed upgrades and future improvements. Should this occur, the war fighter in theater must either use another, less safe vehicle due to the lack of an operable MaxxPro vehicle or go without the use of a vehicle altogether, increasing the risk of serious injury and loss of life and impact to mission readiness. As a result, Navistar is the sole source that can meet the requirements without unacceptable delay.

d. Duplication of Costs: (no change) Award to any source other than Navistar would result in substantial duplication of costs to the Government which would not be expected to be recovered through competition. First, in order to complete the STS and SSTS services required for this effort, the Government would have to conduct an extensive reverse engineering effort to develop Government-owned TDPs, to include all upgrades. Each TDP would have to be reviewed by Government personnel to ensure it contains data suitable for competition. A physical configuration audit would be needed to verify the accuracy of the TDP. The MRAP Cost Analyst and Engineers estimate the TDP assessment, development, and update would amount to $6,300,000. MRAP Engineers and the APO MRAP

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(1) Besides the TDP, a contractor other than the OEM would need to have current TMs, MWOs, or installation instructions to complete this effort. As discussed above, there is currently a contract in place to develop this data, but it will not be available until December 2016 for the Dash variant and November 2017 for the LWB AMB variant. Therefore, interim manuals and instructions would need to be developed in order to meet the timeframe needed for this requirement. Based on previous procurement costs for TMs and MWOs and procurement history of other MRAP platforms, MRAP Cost Analyst and Engineers estimated this data would cost an additional $5,000,000 for this effort.

(2) In addition, a new contractor would need to hire personnel, train, and provide equipment/tools which would be less efficient than the current Navistar workforce, as described in paragraph 5.c.(1) above. The duplication of cost relating to labor for learning curve and training time to bring a new contractor up to the same efficiency as Navistar is $5,393,760. Using factors for Other Direct Costs (ODCs), such as equipment and tools, and travel developed from the Joint Logistics Integrator contract, the duplication of ODC costs are estimated at $897,674, and the duplication of travel costs are estimated at $138,638, for a total of $1,036,312. These estimates are based on engineers’ knowledge of similar systems and efforts needed for MRAP vehicles along with the Program Management Cost Estimating Team’s comparisons to similar MRAP efforts and historical data, which are deemed conservative.

(3) As explained above, the total estimated duplication of costs associated with a competitive procurement is a follows:

TDP development and reverse engineering $ 6,300,000 TM, MWO install instruction data development $ 5,000,000 Labor for learning curve and training time $ 5,393,760 Equipment, Tools & Travel for personnel $ 1,036,312

TOTAL duplication of costs: $17,730,072

(4) Based on the IGCE calculated using engineering estimates and analysis prepared by an MRAP Cost Analyst, the Government could potentially save 5%, which equates to approximately $3,159,179, if competition was exercised. This savings would be offset by the duplication of costs, totaling $17,730,072. Thus, an award to another contractor would cause an unacceptable duplication of costs.

6. Efforts to Obtain Competition: (no change) Although this effort will be synopsized in accordance with FAR 5.201, competition will not be pursued for this action for reasons stated in paragraph 5. The Government does not currently have a complete competitive TDP or TMs required to support STS and SSTS services for the

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MaxxPro FoV. Further, efforts to obtain competition are impracticable since they would cause unacceptable delays and duplication of costs to the Government.

7. Actions to Increase Competition: (no change) This effort seeks a sole source award to Navistar due to the STS/SSTS requirements specific to the MaxxPro FoV and because the Government does not have the MaxxPro FoV TDPs. There is no way to increase competition within industry without substantial duplication of cost to the Government and an unacceptable delay. This effort, however, will be synopsized in FedBizOpps to maximize subcontracting opportunities, as required by FAR 5.201, and all responsible sources may submit a capability statement, proposal, or quotation, which will be considered by the agency. APO MRAP personnel will ask Navistar Defense again if they are willing to sell the Government the technical data for the MaxxPro FoV.

8. Market Research: (no change)

a. As a result of the market research conducted in accordance with FAR

10.002(b)(2) detailed below; APO MRAP expertise; MaxxPro Engineers’ knowledge;

and continued collaboration efforts with industry and organic research and development (R&D) staff, it is determined that no other contractor besides the OEM has demonstrated the unique knowledge and experience that could provide STS/SSTS services as described in paragraph 3 to meet mission requirements.

b. In December 2013, Product Manager (PdM) MRAP personnel attended the Interservice and Industry Training, Simulation, and Education Conference (I/ITSEC), researched on-line magazines such as Army Technology, Army Magazine, Soldiers Magazine, Army Times, and Army AL&T, and reviewed various marketing publications from vehicle manufacturers discussing their product line and vehicle capabilities. This research has not identified other sources of supply for this effort.

c. In April 2014, Tank Automotive Research, Development, and Engineering Center (TARDEC) sponsored the Ground Vehicle Gateway, a forum for the Government to provide industry with future budget and military needs and an opportunity for industry to dialog with Government about its capabilities. APO MRAP engineers attended the forum and obtained information about industry products and capabilities. The information obtained from industry did not reveal additional sources that can successfully repair and upgrade the MaxxPro fleet within the required fielding schedule as directed by Army higher officials.

d. In May 2014, APO MRAP engineers attended the Michigan Defense Industrial

Base Exposition held at the Macomb Community College Expo Center, in Warren, Michigan, and sponsored by National Defense Industrial Association (NDIA). This expo is a forum for Government and industry representatives to meet and discuss current products, capabilities, and Government requirements. Industry representatives from all pay load classes of trucks were present along with second and third tier subcontractors.

The APO MRAP personnel obtained information about industry products and capabilities from marketing presentations, displays/distribution of commercial literature, and conversations with various companies. The information obtained from industry did not reveal additional sources that could successfully repair and upgrade the MaxxPro fleet within the required fielding schedule as directed by Army higher officials.

9. Interested Sources: (no change) To date, no other sources have written to express an interest. This effort will be synopsized in FedBizOpps.gov to maximize subcontracting opportunities as required by FAR 5.201. Any proposals received shall be considered.

10. Other Factors:

a. Procurement History: (no change) On 27 October 2009, Navistar was awarded contract W56HZV-10-C-0011 for the acquisition of STS/SSTS services with a period of performance ending 27 October 2013.

A Determination and Findings with authority to extend contract beyond five years was approved 22 September 2011 for contract W56HZV-10-C-0011 by Director of Combat Support Contracting Mr. Arthur D. Siirila, Army Contracting Command- Warren.

A Class Justification and Approval (J&A) (CMO Control #: 2011-210) was approved 03 November 2011 for W56HZV-10-C-0011 adding a fourth option period, resulting in a period of performance through 31 December 14. The statutory authority utilized permitting other than full and open competition for the contract is 10 U.S.C. 2304(c)(1), 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.”

b. Acquisition Data Availability: (no change) TDPs and engineering descriptions suitable for full and open competition are not available to support the services required herein as Navistar Defense is the owner of this data.

c. Unusual and Compelling Urgency: (no change) N/A

d. Subcontracting Competition: (no change) Navistar will submit a subcontracting plan for Government approval that will be incorporated in the resulting contract. To encourage competition at the subcontractor level, the contract will contain the following subcontracting clauses: FAR 52.244-2, “Subcontracts,” and FAR 52.244-5, “Competition in Subcontracting.”

e. Reason for Amendment 1: (Added) On 16 December 2014, APO-MRAP revised the IGCE to include the Dash sustainment Technical Manuals (TM) and the parts for repairs to the MRAP Recovery Vehicles (MRV) not previously included in the estimate.

The anticipated Period of Performance of the proposed action was revised from 1 January 2015 through 31 December 2018, to 1 April 2015 through 31 March 2019, as a result of extending the current STS contract (W56HZV-10-C-0011) through 31 March 2015.

11/12. Technical and Requirements and 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.”

LTC ELLIOTT R. CAGGINS

Product Manager Army Program Office Mine Resistant Ambush Protected Vehicles

Date 6 Jan 2015

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.”

This determination will be based on the results of a detailed cost and price analysis and the contractor's submission of certified cost or pricing data.

KERRI M. BROMAN

Contracting Officer

Date 6 January 2015

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

KERRI M. BROMAN

Contracting Officer

Date 7 January 2014

15. Concurrence:

JOHN D. JOLOKAI

Principal Assistant Responsible for Contracting

Date

APPROVAL

Based on the foregoing justification, and as Principal Assistant Responsible for Contracting, pursuant to Army Materiel Command (AMC) Head of the Contracting Activity (HCA) Delegation of Authority (DOA) #14-01, I hereby approve the procurement of MaxxPro Family of Vehicles System Technical Support (STS) and System Sustainment Technical Support (SSTS) Services for an estimated total amount of $83,424,223 on an Other Than Full and Open Competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 (a)(2)(iii)(A) and (B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” subject to the availability of funds, and provided that the services and property provided for herein have otherwise been authorized for acquisition.

DATE: __________ Signature: __________________________

THEODORE C. HARRISON III

Major General, U.S. Army Commanding Army Contracting Command