REDACTED_JA_2017136.pdf

CMO Control Number: 2017-136

Department of the Army Justification and Approval (J&A) for Other Than

Full and Open Competition

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

2. Description of Action: The proposed contract action will result in a modification to the current contract, W56HZV-16-C-0068, with AM General, LLC, South Bend, Indiana, for the Recapitalization (Recap) of sixty (60) each Army National Guard’s (ARNG) High Mobility Multipurpose Wheeled Vehicle (HMMWV) Expanded Capacity Vehicles (ECVs).

The new vehicle chassis CLIN will be firm fixed price and the Inspection and Repair Only As Necessary (IROAN) CLIN will be cost reimbursement. FY17 Other Procurement Army funds will be used for this requirement.

3. Description of Supplies/Services: The purpose of this action is to recapitalize by converting, upgrading, and modernizing older M1151 HMMWV ECVs into the current M1167 HMMWV ECV configuration. The Recap program consists of

(i) Vehicle disassembly,

(ii) Production of a new vehicle chassis, inclusive of powertrain and air conditioning, B-kit armor, Tube-Launched Optically-Tracked Wire-Guided (TOW) Gunner Protection Kit (GPK), Automotive Improvement Program (AIP) and Reliability Enhancement Vehicle (REV) components,

(iii) IROAN of the HMMWV cab in accordance with Technical Data Package

(TDP) and Technical Manual requirements, and

(iv) Vehicle reassembly, incorporating the IROAN cab on the new vehicle chassis, inclusive of new production components and applicable mandatory replacement parts and compliance requirements.

The end result of this Recap effort will be M1167 HMMWV ECVs configured in the latest configuration, in a like-new condition. The estimated total value of this requirement is $12,100,000.

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is 10 United States Code (U.S.C.) 2304(c)(1) as implemented 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.”

5. Reason for Authority Cited:

technical data (armor, air conditioning systems, and REV components) required to compete this requirement and the costs required to develop a TDP for use in a competitive procurement would result in a substantial duplication of cost. Further, efforts to obtain competition would result in unacceptable delays as explained above.

Therefore, only AM General will be solicited for this effort.

b. Subcontracting competition. In accordance with FAR 19.702(a)(1), a subcontracting plan will be required for this action. As such, clauses Submission of Subcontracting Plan, are included in the solicitation and clauses 52.219-9, Small Business Subcontracting Plan, 52.219-16, Liquidated Damages -- Subcontracting Plan, and 52.219-4004,are included in the existing contract. The proposed subcontracting plan will be reviewed and incorporated by reference into the contract.

7. Actions to Increase Competition: AM General owns the technical data for the required HMMWVs’ armor, air conditioning systems, and REV components. In March 2017, the Government attempted to purchase the proprietary technical data, but AM General was not willing to sell it. As stated in paragraph 5a above, it is not economical for the Government to develop the required technical data considering anticipated future HMMWV requirements are between vehicles. Without this data (armor, air conditioning systems, and REV components), competitive procurement of these Recap vehicles is not feasible.

8. Market Research: PD LTV conducted market research in accordance with FAR 10.002(b)(2) and found no other source that is capable of providing HMMWV ECVs without unacceptable delay and substantial, unrecoverable duplicative costs.

a. From 27 April 2017 through 12 May 2017, a sources sought notice was posted on the FedBizOpps (FBO) website to identify potential sources for HMMWV ECVs that comply with Automotive Tank Purchase Description 2099. While the variants listed in the source sought were the M1152A1 and M1152A1B2, those variants use the same chassis, powertrain and suspension as the M1167. The sources sought notice requested interested offerors to submit information demonstrating the company’s experience within the last three years with producing HMMWV ECVs that comply with Automotive Tank Purchase Description (ATPD) 2099. For experience (Government or commercial), each company was required to include (a) name of the project, (b) a brief description of the project, and (c) the relevance of the contract/project to the HMMWV requirements stated in the notice. While three companies listed themselves as interested on FBO no company submitted formal responses providing the requested capability information for producing vehicles that comply with ATPD 2099.

b. In April 2017, PD LTV personnel reviewed on-line product literature from other military truck manufacturers (e.g., Oshkosh Truck, BAE Systems, General Dynamics, etc.); however, the reviews conducted did not reveal any additional viable sources for this requirement.

OPSEC Exemption #4

9. Interested Sources: To date, no other sources have written to express an interest in this requirement. The notices required by FAR 5.201 shall be published on the Government point of entry, FedBizOpps, and any proposals received shall be considered.

10. Other Facts:

a. Procurement history. The Government has procured HMMWVs from AM General since March 1983. A summary of recent contracts is below.

(1) Contract: W56HZV-16-C-0068 Contractor: AM General LLC Requirement: 56 Recap M1167s w/ option for 195 additional Recap M1167s Basic Award Date: 25 February 2016 Initial Award Amount: $23,159,070 Competitive Status: Sole Source Authority: 10 U.S.C. 2304(c)(1), as implemented under FAR 6.302-1(a), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Contract: W56HZV-15-C-0155 Contractor: AM General LLC Requirement: 1,752 HMMWV ECVs w/ options for 330 additional HMMWV ECVs Basic Award Date: 6 July 2015 Initial Award Amount: $372,936,476 Competitive Status: Sole Source Authority: 10 U.S.C. 2304(c)(1), as implemented under FAR 6.302-1(a), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Contract: W56HZV-10-C-0405 Contractor: AM General LLC Requirement: 7,623 HMMWV ECVs Basic Award Date: 30 July 2010 Initial Award Amount: $279,911,775 Competitive Status: Sole Source Authority: 10 U.S.C. 2304(c)(1), as implemented under FAR 6.302-1(a), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

(2) Competitive Status of the previous contracts were Sole Source.

(3) The Justification and Approvals for the contracts above were based on 10 USC 2304(c)(1), “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements as authorized by FAR 6.302 1.”

(4) The previous Justification and Approvals for the contracts listed above stated that the Government attempted to purchase the competitive TDP from the OEM;

however the contractor was not willing to sell the data (armor, air conditioning systems, and REV components) to the Government. This is still the case for this justification.

(5) No prior contract for this requirement was accomplished using full and open competition.

(6) No unusual patterns were revealed by the procurement history.

(7) The previous justification for the contracts above were issued under the authority of FAR 6.302-1(a). That justification stated that it was cost prohibitive at that time to pursue the development of a TDP and it would result in “unacceptable delays in fulfilling the agency’s requirements.” There have been no significant changes to that justification.

b. Teaming Agreement. In anticipation of possible HMMWV Recap requirements, AM General and Red River Army Depot (RRAD) executed a Teaming Agreement dated 2 July 2013. The goals of the teaming agreement are to maintain and stabilize the domestic industrial base for work currently residing at RRAD and AM General to ensure that both parties maintain core skills, develop efficiencies from the shared use of resources, exploit the synergy of the pooled RRAD and AM General resources, and establish a future Public-Private Partnership via subcontract agreements that supports HMMWV recapitalization efforts. AM General and RRAD have previously partnered on contracts to performed recapitalization efforts using this teaming arrangement under contract W56HZV-14-C-0146 (130 each M1152A1B1s and 953 each M1165A1B3s) and under contract W56HZV-16-C-0068 (196 each M1167s).