Redacted_-_JA_GDLS_FFV_Phase_1_extension2016-139.pdf

CMO Control Number: 2016-139 Contract No. W56HZV-15-C-0134

DEPARTMENT OF THE ARMY

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 to contract W56HZV-15-C-0134 with General Dynamics Land Systems (GDLS) to allow the contractor to further expand upon technology assessments by creating and delivering a Future Fighting Vehicle (FFV) Demonstrator. This modification will be an 18 month extension to the existing FFV Phase 1 contract W56HZV-15-C-0134 which will extend the period of performance from 30 April 2017 to 29 May 2018. The contract type will continue to be Cost-Plus-Fixed-Fee, and will utilize FY16 Research, Development, Test, and Evaluation funds. The total estimated dollar value of this action is $6.9M bringing the total contract value from $28.3M to an estimated $35.2M.

3. Description of Supplies/Services:

a. The Ground Combat Vehicle (GCV) program was an Army program which had progressed through the Technology Development (TD) phase of the acquisition lifecycle for a new Infantry Fighting Vehicle (IFV). Due to financial constraints, the Army was unable to continue the program. In an effort to support improved requirements and financial management, the FFV Bridge contract engaged the GCV contractors to utilize their GCV designs, and allow them to further explore trades and technological concepts. The FFV Phase 1 contract requires GDLS to continue to refine their designs by creating system concepts for both a new IFV and also modifications to the Bradley Fighting Vehicle (BFV). These system concepts are to be completed using the GCV Performance Specifications as the upper threshold and the Bradley Operational Requirements Document as the lower threshold.

b. This action will support the integration of two technologies onto the same platform, for the development of a FFV Demonstrator. GDLS will be provided, as Government Furnished Equipment, a BFV A3 configuration as the basis for the FFV Demonstrator. In support of technology assessments, GDLS will use the BFV for the following:

1. Integration of a split mechanical transmission system mated to an existing engine.

2. Modification of the hull to join existing aluminum upper hull to a new ballistic steel lower hull utilizing explosive bonding techniques.

c. These two technologies listed above were previously studied and analyzed under the current FFV Phase 1 contract; however, there is a need to further assess the capabilities these technologies may offer. Therefore, the USG needs the technologies integrated onto a FFV Demonstrator so it can conduct testing activities. The initial FFV Phase 1 contract Scope of Work did not include the receipt of a hardware deliverable. This action will permit the acceptance and delivery of the FFV Demonstrator, which Tank Automotive Research Development and Engineering Center will conduct testing on. These technologies will influence the future designs of combat vehicles.

4. Authority Cited: 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 in Federal Acquisition Regulation (FAR) 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Specifically, FAR 6.302-1(a)(2)(ii) states, “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in– (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the agency’s requirements.”

5. Reason for Authority Cited: In accordance with the statutory authority, award to any other sources would result in a substantial duplication of cost to the Government which is not expected to be recovered through competition, and unacceptable delays in fulfilling the agency’s requirements, as described below.

a. Duplication of Costs:

(1) GDLS is the only source with the necessary technical expertise to accomplish the efforts set forth in this procurement. The requirements will require GDLS to leverage a portion of its efforts from the GCV TD phase, FFV bridge contract, and the current FFV Phase 1 contract. The contractor’s knowledge, experience, and expertise are essential to developing a FFV Demonstrator.

Award to another contractor would result in duplication of costs from portions of the GCV TD phase development efforts, FFV bridge contract, and FFV Phase 1 contract. The following costs have been identified, which would be duplicated if the current action was competed:

b. Subcontracting competition: At the subcontract level, GDLS will be required to maximize competition between qualified sources. GDLS will be required to submit a Subcontracting Plan. In addition, the contract includes FAR clause 52.244-5,"Competition in Subcontracting," which requires the maximum practical competition in subcontracting.

7. Actions to Increase Competition: The Army will continue to engage in market research, industry days, Advanced Procurement Briefing to Industry, and electronic tools (FedBizOps) to publicize program requirements and engage all segments of industry to find relevant emerging technologies and reduce investment and ownership cost.

8. Market Research:

a. On 23 May 2016, FFV issued a sources sought notice to FedBizOps.

The aforementioned sources sought was posted for 30 days. Contractors were required to submit responses to the questions contained in the sources sought regarding the integration of both a split mechanical transmission and an explosively bonded hull modification into a BFV. GDLS was the only company to respond. FFV’s technical team, to include the Assistant Product Manager and several engineers with various disciplinary backgrounds, performed an assessment of GDLS’ response. The technical team deemed GDLS’ response to all of the questions poised in the sources sought as acceptable and complete.

9. Interested Sources: To date, no other parties have expressed an interest in the FFV Phased program. The notices required by FAR 5.201 will be published, as appropriate, in conjunction with this acquisition and any proposals received will be considered.

10. Other Facts:

a. Procurement History:

(1) Contract: W56HZV-11-C-C002

Awarded: 18 August 2011, $614M Contractor: GDLS Requirement: GCV TD Phase Competitive Status: Competitive

On 18 Aug 2011, GDLS was awarded GCV TD phase contract W56HZV- 11-C-C002. The contractor built and tested subsystems to validate critical portions of its respective vehicle designs and demonstrated how each design mitigates the specific capability gaps identified in the GCV Initial Capabilities Document. During this time, GDLS focused on hull design shapes, and also studied various bonding methods of an aluminum upper hull to a ballistic steel lower hull.

Contract: W56HZV-14-C-0135

Awarded: 13 August 2014, $12.1M Contractor: GDLS Requirement: FFV Bridge contract Competitive Status: Non-Competitive Authority: 10 U.S.C 2304(c)(1) and FAR 6.302-1(a)(2)(iii)(A)

CMO # 2014-143

Approved by Competition Advocate on 10 July 2014

GDLS was awarded the FFV bridge contract, W56HZV-14-C-0135, on 13 August 2014. During the course of the contract, GDLS was able to further prove out its GCV related designs and submit various trade studies and analyses. Included in these analyses, GDLS re-examined ideas related to the hull design, and selected the trapezoidal shape. In addition, they identified the explosive bonding technique as a possible bonding method for joining dissimilar metals.

Contract: W56HZV-15-C-0134 Awarded: 29 May 2015, $28.2M Contractor: GDLS Requirement: FFV Phase 1 contract Competitive Status: Non-Competitive Authority: 10 U.S.C 2304(c)(1) and FAR 6.302-1(a)(2)(iii)(A)

CMO # 2014-183

Approved by Theodore Harrison, MG Army Commanding ACC on 07 NOV

GDLS was awarded the FFV Phase 1 contract, W56HZV-15-C-0134, on 29 May 2015. The contract enables GDLS to continue to refine their previous trade studies while developing system concepts for both a new IFV and also modifications to the BFV. In addition, the contractor is to perform technology assessments which would be of benefit to their system concepts. GDLS continued to refine the trapezoidal hull design, and conducted indepth research regarding the explosive bonding technique.

They also commenced research on examining the use of a split mechanical transmission.

(2) The competitive status of the previous action for FFV Phase 1 contract W56HZV-15-C-0134 is sole source.

(3) The previous authority cited for FFV Phase 1 contract W56HZV-15-C-0134 is Title 10 U.S.C. 2304(c)(1), as implemented under Federal Acquisition Regulation (FAR)

6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302-1(a)(2)(iii)(A) and (B) states, “For DoD, NASA, and the Coast Guard, 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 – (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the agency’s requirements.”

(4) Competition was not sought in the previous action for FFV Phase 1 contract W56HZV-15-C-0134. The previous Justification and Approval (J&A) paragraph 7 stated “The Army will continue to engage in market research, industry days, Advanced Procurement Briefing to Industry, Association of the United States Army biannual events, and electronic tools (FedBizOps and TACOM ProcNet) to publicize program requirements and engage all segments of industry to find relevant emerging technologies and reduce investment and ownership cost. GDLS will be required to maximize competition at the subcontractor level. This action will be synopsized and the prime contractor will be required to submit a subcontracting plan”. GDLS remains the only source available for this effort and the only contractor who responded to the sources sought survey posted 23 May 2016.

The contract contains the following FAR and DFARS clauses: FAR 52.219-8, Utilization of Small Business Concerns, 52.219-9, Small Business Subcontracting Plan, 52.219-16 Liquidated Damages -- Subcontracting Plan, and DFARS 252.219-7003, Small Business Subcontracting Plan (DoD Contracts) for the promotion and utilization of Subcontracting opportunities for Small Business, Small Disadvantage Business, and labor surplus area concerns. The contract also contains clause FAR 52.244-5, Competition in Subcontracting, which will require the maximum practical competition in subcontracting. The contractor will be required to submit a Subcontracting Plan, which will be incorporated into the resulting contract.

(5) The base contract W56HZV-15-C-0134 was not accomplished using full and open competition.

(6) There are no unusual patterns in the acquisition history.

(7) The previous J&A for FFV Phase 1 contract W56HZV-15-C-0134 was justified based on duplication of costs and unacceptable delay. There is no significant change since the last procurement. GDLS is still the only source with the necessary technical expertise to accomplish the efforts set forth in this procurement. The contractor’s knowledge, experience, and expertise in designing, developing, and integration is essential to developing a FFV Demonstrator.

11/12. Technical/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.

LTC Sean M. Burke Date: 31 AUG 2016

Product Manager, FFV Signature: //SMB//

13. Fair and Reasonable Cost Determination: I hereby determine the anticipated cost to the Government for this contract action awarded pursuant to the subject J&A will be fair and reasonable. Certified cost or pricing data will be obtained. Negotiations will use the contractor’s certified cost and pricing data, subject to audits, technical reviews, and detailed cost and price evaluations, as deemed necessary, to form the basis for negotiating a fair and reasonable price.

Raena Swanson Date: 29 Aug 16 Procuring Contracting Officer Signature: //RRS// per PCF workflow

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

Raena Swanson Date: 29 Aug 16 Procuring Contracting Officer Signature: //RRS// per PCF workflow