ACC-WRN-_17-2096_REDACTED_JA_-_W56HZV-17-C-0044.pdf

CMO Control Number: 2016-070

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

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 action is a new Cost-Plus Fixed Fee (CPFF) Level of Effort (LOE) contract. Under the Code of Federal Regulations (CFR) 48 Chapter 2 Subpart 225.870-1 (c), the Canadian Commercial Corporation (CCC) will be awarded the proposed contract and the contract will be subcontracted to General Dynamics Land Systems – Canada (GDLS-C). This requirement procures System Technical Support and System Sustainment Technical Support (STS/SSTS) services for the Family of Light Armored Vehicles (FoLAV) (all generations). The STS/SSTS activities include: technical data management, engineering change proposals (ECPs), configuration management, software maintenance and testing, validation/verifications, redesigns, system integration, analysis, recommendation of solutions to human factors and Reliability, Availability, Maintainability (RAM) issues, logistics products, and safety engineering. The funds utilized include: Foreign Military Sales (FMS) for the Kingdom of Saudi Arabia (KSA) Royal Saudi Land Forces (RSLF), also known as the SWORD Program under FMS Case SR-B-VTD, United States Marine Corps (USMC) Operation and Maintenance (O&M), and other USMC funds depending on program requirements.

Based on the SWORD and USMC Independent Government Cost Estimates, completed on 27 April 2015 and 25 February 2016 respectively, the total estimated value of this procurement is and includes a base year and two one-year options.

3. Description of Services: The purpose of this acquisition is to provide STS/STSS support to the FoLAV. The services to be procured will be further defined by individual work directives issued throughout the contract’s period of performance and could include any of the STS/SSTS services identified below. Material and other direct costs (ODCs) 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 54,000 hours for up to a three year contract period (inclusive of options). The proposed effort includes the following STS/SSTS activities:

a. Systems Engineering Support

b. Reliability and Maintainability Support

c. Prototype Hardware/Software

d. Engineering Change Proposals

e. Hardware/Software Configuration Management

f. TDP Maintenance

g. Integrated Logistics Support and Products

h. Product Improvements

i. Systems and Equipment Training

Operations Security Information (OPSEC)

7. Action to Increase Competition: At this time, no action can be taken to increase competition for future procurements. The support efforts to be performed by the contractor under the anticipated STS contract will require access to the TDPs. Included in a letter to PM-LAV dated 9 April 2015, GDLS-C noted that it is not willing to sell any part of the LAV TDPs to third parties.

8. Market Research:

a. As a result of the market research conducted in accordance with FAR 10.002(b()(2) detailed below, PM-LAV and SAMO expertise, LAV Engineers’ knowledge, and continued collaboration efforts with industry and organic research and development staff, it has been 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 above to meet mission requirements.

b. PM-LAV subject matter experts conduct continuous market place surveillance in efforts to promote competition. In August 2015, a Sources Sought notice was posted to Federal Business Opportunities for 30 days; the only response received was from the OEM, GDLS-C. On 13 March 2016, Saudi Arabia Management Office (SAMO) LAV subject matter experts attended the Bi-Annual Association of the United States Army (AUSA) Symposium. The AUSA Symposium provided SAMO LAV an opportunity to conduct market research through direct discussion with defense contractors including Raytheon, OshKosh, BAE Systems and DRS Technologies. The discussions/reviews with the contractors considered the capabilities of industry to accomplish the proposed acquisition. The SAMO LAV subject matter experts concluded that the requirements for LAV System Technical Support (STS) are not available in the commercial marketplace and subsequently determined the Government’s need cannot be met by a type of item or service customarily available in the marketplace. To further investigate alternatives for LAV support, the internet was utilized to conduct a market survey and search for alternatives for systems technical support, however no company other than GDLS-C (the OEM) was identified.

c. To further investigate other opportunities for technical support, GDLS-C was sent a questionnaire regarding the LAV Technical Data package (TDP) on 9 April 2015 with the following two questions: “Is GDLS-C willing to sell the LAV TDP?” and “Has GDLS-C ever sold the LAV TDP to outside commercial parties?”. In response, GDLS-C stated that they are not willing to sell the proprietary FoLAV TDP and have never sold, nor otherwise released FoLAV technical data to outside commercial parties. In addition, the PM-LAV Director of Engineering was questioned regarding the information on the availability of other contractors to perform system technical support for the LAV. In his expert opinion, it would be cost prohibitive to purchase the drawings from GDLS-C (if they were willing to sell) to open up competition to other contractors. Barring the purchase of the drawings, no other contractor would be able to provide system technical support for the SWORD Program.

9. Interested Sources: To date, no other sources have expressed any interest in this acquisition. However, all notices required by FAR 5.201 shall be administered, as appropriate, in conjunction with this acquisition. It is intended that only CCC/GDLS-C will be solicited for this acquisition, due to the reasons listed in section 5 above.

10. Other Facts: Procurement History. The Government awarded contract W56HZV- 11-C-0076 for the procurement of STS services in support of USMC and SANG FoLAV on 18 February 2011 to GDLS-C on a sole-source basis pursuant to the authority of 10 USC 2304 (c)(1), FAR 6.302-1(a)(2)(ii) and (iii), “Only One Responsible Source.”

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.

Typed Name: _Chad Young ___Date:_3/7/2016___________ Title: _ Chief, Saudi Arabia Management Office (SAMO) Signature: __//S//_____

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.

Typed Name: _Chad Young ___Date:_____ 3/7/2016__________ Title: _ Chief, Saudi Arabia Management Office (SAMO) Signature: __//S//_____

13. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. An Independent Government Cost Estimate (IGCE) will be prepared for each work directive under the proposed contract.

Confirmation and endorsement of each work directive will be performed by the Canadian Commercial Corporation in accordance with DFARS 225.870-3(a)(2), and Appendix T-210 of the MOU with Canada, whereby CCC is responsible for conducting audits, verifying costs, and certifying these prices to the U.S. Government.

Typed Name: __Thomas K Sargee___________ Date: _09 Mar 2016_ TITLE: Contracting Officer Signature: //s// tKS__________

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

Typed Name: Thomas K Sargee______________ Date: 09 MAR 2016 TITLE: Contracting Officer Signature: ___//s// tKS__________