RedactedACC13-016.pdf

CMO Control No.:13-016

JUSTIFICATION AND APPROVAL (J&A) FOR OTHER

THAN FULL AND OPEN COMPETITION

M109 Storage and Demilitarization

1. Contracting Activity: United States Army Contracting Command, Warren (ACC-

WRN), MI 48397-5000 is the responsible contracting agency.

2. Description of Action: ACC-WRN proposes to award a new Firm Fixed Price contract to Maine Military Authority (MMA) for storage and demilitarization of M109 Howitzers. ACC-WRN projects an award in the first quarter of FY13 utilizing AWCF funds. The current contract expires on 18 December 2012.

3. Description of Supplies/Services: The proposed action supports the Army’s requirement to disassemble selected M109 Series Self-propelled Howitzers (SPH) (NSN: 2350-01-281-1719 for the M109A5), remove and store cannons and selected assemblies to fill future Army requirements, create accountable records for those cannons and assemblies, and build cannon shipping containers for storage of the disassembled cannons. The basic quantity of Howitzers for storage and disassembly under the proposed contract is 228 each at an estimated amount of $2,500 per vehicle for a total of $570,000. The proposed contract will include two one-year priced options for 228 each estimated at $570,000 per year for an additional amount of $1,140,000. This will result in a total estimated dollar value of $1,710,000. The option will provide the Army with the flexibility to remove valuable, long-lead components from the vehicles on an as needed basis. Valuable components include the cannon, gun mount assemblies, and other repairable assemblies that will support future Army requirements. The Army’s end-goal is to transport the demilitarized vehicles to an Army location such as Sierra Army Depot for long-term storage. Currently, no funding is available to move the vehicles from MMA to Sierra Army Depot. Additionally, demilitarization services are not available at Sierra Army Depot.

4. Authority Cited: 10 USC 2304(c) (1), Only One responsible Source and No Other Suppliers or Services will Satisfy Agency Requirements as authorized by FAR 6.302-1.

5. Reason for Authority Cited: ACC-WRN requires award of this action on a sole source basis because shipping the Howitzer vehicles from MMA, (their current location) to another contractor’s location for disassembly is cost prohibitive and would negate the benefits of the disassembly effort. The U.S. Army no longer uses the M109A5 series vehicles. The vehicles were stored and offered for sale to eligible foreign countries, and not sold. The estimated cost to ship 228 M109A5 Medium Self Propelled Howitzers (NSN: 2350-01-281-179) with dimensions L: 361" x W: 124" x H: 129.12" and weight of 52,000 lbs each from Maine Military Authority, ME to the nearest railhead for onward movement to another contractor is $1,970,000. This estimate includes the protective services required for transporting

Justification and Approval M109 Storage and Demilitarization

Howitzers. There are also additional costs required for MMA to pull vehicles from storage and prepare them for shipment to another location.

ACC-WRN currently has a Firm Fixed Price Contract W56HZV-10-C-0414 in place with MMA for storage of these vehicles with a Period of Performance (PoP) through 18 December 2012. Upon completion of the current contract, the U.S. Army is proposing this new effort to include the storage and disassembly of M109A5 Howitzers at the current facility. Use of the current contractor and place of performance will enable ACC-WRN to avoid paying duplicative costs to move the vehicles to another facility. ACC-WRN does not expect to recover the duplicative cost through competition.

6. Efforts to Obtain Competition: ACC-WRN will synopsize this procurement action in FedBizOpps as required by FAR 5.201(c).

7. Actions to Increase Competition: ACC-WRN has not taken any actions to increase competition because the shipping costs from MMA to another contractor exceed the total estimated cost of this proposed contract.

8. Market Research/Procurement History:

a. On 27 June 2012, the Self-Propelled Artillery & Robotics Group (AMSTA-LCG- FP), conducted an internet search to find a secure, low-cost storage facility that could provide preservation of the valuable cannon assembly until the Government sold the vehicles to foreign military customers or disassembled and sent them to the Defense Reutilization and Marketing Office (DRMO). The market research determined that no other contractor could perform the effort.

Sierra Army Depot, CA can store the M109 Howitzers but the estimated cost to ship the Howitzers to the nearest railhead for onward movement to Sierra Army Depot is $1,970,000. Therefore, market research regarding transportation cost showed that the best value for the Government would be to maintain the current storage at Loring Air Force Base, Limestone, Maine, in buildings under contract to the Maine Readiness Sustainment Maintenance Command (MERSMC), which is under the control of the National Guard Bureau. The MERSMC offered the secure, climate-controlled storage necessary to preserve the value of the cannon assembly at a fraction of the cost for outside storage at any other available facility. ACC-WRN signed a Memorandum of Agreement with the National Guard Bureau on July of 2000 to use the storage facilities provided by the MERSMC.

b. Since that time, MMA, a commercial facility established in 2005, at the MERSMC facility in Limestone, ME has taken over the storage contract for the vehicles while continuing to provide a low-cost storage alternative.

c. MMA is currently a disposal and demilitarization site for DRMO. They are authorized to perform demilitarization actions required by DRMO pursuant to the Demilitarization Manual, DoD 4160.21-M-1. They are also authorized and capable of handling and storing radioactive fire control assemblies that may be present within the vehicles. This necessary capability is very limited within other facilities.

9. Interested Sources: To date, no other sources have expressed an interest in performing this requirement. ACC-WRN will publish the notice required by FAR 5.201 and any proposals received shall be considered for future requirements.

10. 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: Walter C. Charles Date: 09 October 2012

Title: Logistics Management Specialist Signature:

11. 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: Steve Natole Date: _16 Oct 12______

Title: Group Leader: Self-Propelled & Artillery Field Artillery & Support PSID Signature

12. Fair and Reasonable Cost Determination:. I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Cost/Price Analysis will be used to discern whether the costs proposed are current and justifiable. Certified Cost or Pricing Data will be required and will form the basis for negotiating a fair and reasonable price.

Typed Name: Raena R. Swanson_ Date: 17 Oct 12____________

Title: Contracting Officer ___ Signature:

//signed//

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

Typed Name: Raena R. Swanson_ Date: 17 Oct 12____________

Title: Contracting Officer ___ Signature

//signed//

Approval

Based on the foregoing justification, I hereby approve the procurement of services for the demilitarization and storage of M109A5 SPH, in the amount of $1,710,000 on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1): Only One responsible Source and No Other Suppliers or Services will Satisfy Agency Requirements as authorized by FAR 6.302-1, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: _______________ Signature: ______________

LA RUTH SHEPHERD

Competition Advocate

COORDINATION: The following individuals concur with the above justification.

Business Law Advisor

Name: Sean A. Daigle Date:

Signature:

C, Artillery Contracting Group

Name: Howard J. Lewis Date:

Signature: