Redacted_-_JA_Bradley_Conversion__PM_Bradley_2015-092.pdf

CMO Control Number: 2015-092

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: ACC-WRN proposes to award a new contract for the conversion of the Bradley M3A3 Cavalry Fighting Vehicle (CFV) into the Bradley M2A3 Infantry Fighting Vehicle (IFV) including repairs to assure vehicles are fully operational and complete, also known as being at 10/20 standard. The proposed award will be made to BAE Systems Land and Armaments, L.P. located in York, Pennsylvania. This will be a follow-on contract to the current M3 to M2 conversion program under contract W56HZV-10-G-0003, Delivery Order 0019. This Justification and Approval (J&A) supports Fiscal Years 15 through 16 (FY15-16) U.S. Army requirements. The conversions will be awarded as Firm Fixed Price (FFP) and the 10/20 repair effort will be awarded as Cost Plus Fixed Fee (CPFF). Weapons and Tracked Combat Vehicles (WTCV) funds will be used for the acquisition of all material, parts components, and labor in support of this requirement.

3. Description of Supplies/Services:

This action is for the conversion of up to 56 each Bradley M3A3 configured vehicles into the M2A3 configuration. On 11 December 2013, the U.S. Army Maneuver Center of Excellence authorized the repair and conversion of M3A3 CFVs to the M2A3 IFV configuration. This decision was made to retire the M3A3 to create a consistent Bradley Fighting Vehicle fleet. The converted vehicles, as a result of this decision, will support the digitization of Bradley Combat Engineer vehicles as directed in the recent Army Force Structure redesign. This conversion will result in the removal of the analog Operation Desert Storm (ODS) configured engineer vehicles from Bradley A3 units.

The converted vehicles will also be used to retire all M3 Cavalry Fighting Vehicles in the Armored Brigade Combat Team. The conversion of the vehicles from the M3A3 to M2A3 configuration will modify the interior stowage capabilities, periscope locations, and ramp configuration and will increase the number of squad seats from two to seven.

This effort will include all parts, components, materials, and labor required to convert and repair the vehicles. The total estimated value for this effort is $42 million. No options are included.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as authorized by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A) and (B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. 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 --

3 Test Six (6) Pilot Vehicles 12 4 Order Production Hardware/Start Vehicle Build 6-8

Total Months 68-74

On 19 February 2013, a PM-AFV cost analyst prepared a report that addressed the time required for a third party vendor to develop a complete Bradley TDP. Based on input from the PM-AFV Bradley lead engineer and a study performed at the direction of the Office of the Deputy Assistant Secretary of the Army for Cost and Economics (ODASA- CE), the analyst estimated it would take approximately 42 months for a third party vendor to complete the development of competitive TDPs for the both the M2A3 and the M3A3 Bradley vehicle configurations. The tasks required to provide a validated and verified TDPs are: (1) reverse engineering of Computer-Aided Design (CAD) models for both the vehicle and Line Replaceable Units (LRU); (2) development of design criteria (i.e., design books); (3) development of performance models; and (4) model validation via vehicle testing. Due to manpower constraints, PM AFV estimates these tasks could take longer if completed in-house by the Government.

Once the Government is in possession of a competitive TDP, the Government estimates lead time from a new source would be 26-32 months beyond what can be achieved by using BAE Systems, the OEM and current provider of the Bradley Fighting Vehicle System (BFVS). As depicted in the table above, award to a contractor other than BAE Systems would require additional time to allow the new contractor to develop, build, test, and document the new vehicles required for the pilot test program and to develop the facilities required to complete the conversions. A new contractor with no prior experience in converting Bradley A3 vehicle configurations would be required to build six test vehicles to validate that it could successfully complete this effort. The Government estimates it would take a new contractor 8-12 months to develop and procure tooling and build these test vehicles. These vehicles would then require performance testing such as maneuver, speed, mobility and steering, which would take at least 12 months followed by live fire testing of the vehicles to assure that protection the vehicles provide has not been compromised. Once the physical tests are complete, operational tests requiring the participation and evaluation by Soldiers would need to be conducted and the vehicles passed successfully. There is no guarantee that a new contractor would pass all of the extensive test requirements and successfully convert the M3A3 Bradley vehicles. Even if another contractor passed all required testing, it would not be able to successfully recreate the M2A3 Bradley vehicles within the required time constraints. This is because the Government estimates that it would take at least 6-8 months for a new contractor to procure production hardware, establish facilities, and build the first production vehicle. BAE, on the other hand, has already completed these tasks and is currently capable of performing this effort. The delay in awarding to a new contractor would result in a break in production between the delivery of the last M2A3 Bradley vehicles currently in production (May 2016) and the first delivery of the converted vehicles under the proposed contract.

Currently, BAE Systems is the only contractor capable of meeting the schedule for conversion of the Bradley A3 configuration vehicles within the required timeframe. BAE

a. Procurement History: The following contracts have been awarded for the conversion of M3A3 vehicles to M2A3 configuration:

Contract Award Date Total Quantity Unit Price

W56HZV-10-G-0003

Delivery Order 0019 (Mod 02) 26 Sep 14 90 each $537,211.22

Delivery Order 0019 (Mod 04) 19 Dec 14 49 each $698,813.10

(1) No prior awards were accomplished by full and open competition. The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” was used for the above awards.

(2) No unusual patterns have been revealed by the procurement history.

(3) There have been no significant changes since the most recent award. The justifications supporting this and previous noncompetitive awards are similar in nature.

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.

NAME: ___TROY M. DENOMY _____ DATE: ____11FEB2015____________

TITLE: Product Manager, Bradley SIGNATURE: ____//SIGNED//______

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.

NAME: TROY M. DENOMY DATE: _____11FEB2015__________

TITLE: Product Manager, Bradley_____ SIGNATURE: ____//SIGNED// ______

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be based on results from DCAA Audit, technical evaluations, and Cost and Price Analysis. Certified cost or pricing data will be obtained for this action.

NAME: Charles E. Gram III DATE: ______25 FEB 15_______

TITLE: Contracting Officer SIGNATURE: ____//CEG//_____

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

NAME: Charles E. Gram III DATE: _____25 FEB 15_____

TITLE: Contracting Officer SIGNATURE: ____//CEG//____

15. Concurrence:

NAME: KRISTAN A. MENDOZA DATE:_________________

TITLE: Principal Assistant Responsible SIGNATURE:_______________ for Contracting

APPROVAL

Based on the foregoing justification and as Principal Assistant Responsible for Contracting pursuant to Army Materiel Command (AMC) Head of Contracting Activity (HCA) Delegation of Authority (DOA) #15-01, I hereby approve the procurement of the conversion of the Bradley M3A3 Cavalry Fighting Vehicle (CFV) into the Bradley M2A3 Infantry Fighting Vehicle (IFV) including repairs for an estimated total of $42M 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)(ii)(A) and (B) subject to the availability of funds, and provided the property and services herein described have otherwise been authorized for acquisition.

Date:_________ Signature:__________________________

THEODORE C. HARRISON III

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