JA_Redacted_0182_pdf_Redacted.pdf

CMO Control Number: 2016-071

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 for this action.

2. Description of Action: The proposed action will result in a new Cost Plus Fixed Fee (CPFF) and Firm Fixed Price (FFP) contract with the Light Armored Vehicle (LAV) Original Equipment Manufacturer (OEM), General Dynamics Land Systems – Canada (GDLS-C), through the Canadian Commercial Corporation (CCC). The proposed acquisition is for the continuance of LAV Field Service Representative (FSR) support in the Kingdom of Saudi Arabia (KSA) for the Saudi Arabia Ministry of National Guard (MNG). This effort will be funded by Foreign Military Sales (FMS) funding from case SI-B-WXN. The proposed action will result in a five-year contract which consists of a two-year base period of performance and three one-year options.

3. Description of Supplies/Services: The services covered under this contract will include:

general maintenance, diagnostics, repairs, inspection/troubleshooting, and fire control software upgrades and to implement approved Engineering Change Proposals (ECPs) and conducting New Equipment Training (NET) for the entire LAV fleet (all variants) in KSA. Work Directives of additional man-days, will be available in addition to the required hours for the base period of performance and each option period. Federal Acquisition Regulation (FAR) clause 52.217-8, Extension of Services, will also be available to be exercised in the event additional work is required. Based on an Independent Government Cost Estimate (IGCE), the total estimated contract value, including labor, other direct costs (ODCs), and travel costs is $80M. Details of the IGCE are summarized below:

The proposed contract will utilize CPFF for FSR performance and FFP for Training Courses.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302- 1(a)(2)(iii)(A)(B), “Only one responsible source and no other supplies or services will satisfy agency requirements”.

5. Reason for Authority Cited:

a. The Program Manager for the Light Armored Vehicle (PM LAV) has procured LAVs through the United States FMS system for the last 22 years totaling 1,949 LAVs of different variants.

The most recent award was in Nov 2009 (contract W56HZV-10-C-0077) for 724 LAVs of different variants. Since LAV fielding began in 1994, GDLS-C has provided the KSA with FSR support and training under multiple contracts to provide support activities including vehicle de-processing and hand-off, maintenance, diagnostics, vehicle inspections and troubleshooting, repairs, and fire control software upgrades. These support services require highly specialized knowledge and experience and access to the vehicle’s design. GDLS-C will not release the LAV vehicle Technical Data Package (TDP) to third parties. Therefore, it is impossible for a third party to perform this particular effort. A contract to another firm would not meet the customer’s needs for technical support and training.

Per its 31 Jul 2015 response to a PM LAV Market Research Questionnaire, GDLS-C considers the LAV an item used exclusively for Government purposes and not available on the commercial market.

Based on a sample of non-recurring costs paid to GDLS-C for development of new LAV variants in the past, it is estimated that development of technical data through reverse engineering by the Government would cost approximately $16.8M per LAV variant ($168M for the ten FMS variants) and take and four years to complete. The cost to reverse engineer the LAV variants includes disassembly of each variant, material analysis, taking measurements, developing drawings, developing performance specifications, prototype creation, and test/validation.

The Government is not expected to recoup any of the cost through competition.

b. FMS case SI-B-WXN directs performance of in-KSA FSRs and training.

Based on historical performance and current analysis, GDLS-C is the only source able to perform the required services. The current FMS FSR contract (W56HZV-11-C-0343) with GDLS-C expires on 15 Aug 2016. Award to another contractor would cause unacceptable delays because reverse engineering would require, at a minimum, four years to develop a competitive TDP, after which there would be one year of acquisition lead time, and six weeks to obtain visas and accommodations. In addition, this action is a companion to contract W56HZV-11-C-0077, which was awarded in accordance with FAR 6.302-1 and includes all FSR efforts performed to support the MNG outside of KSA.

6. Efforts to Obtain Competition:

a. Effective Competition: Based on the cost and schedule issues cited in paragraph 5, it is not anticipated that other sources will be interested.

b. Subcontracting Competition: A subcontracting plan will be required per FAR 52.219-9, “Small Business Subcontracting Plan.”

7. Actions to Increase Competition: No action will be taken to increase competition for future procurements. This is an FMS specific effort with no future requirements known.

8. Market Research: A Sources Sought Notice was released on 19 October 2015, and closed 19 November 2015 for the action described above. GDLS-C was the only company to respond to the notice. On 22 March 2016, in a response to the Government’s request, GDLS-C expressed its unwillingness to sell the technical data for the LAV. In accordance with FAR 10.002(2)(i), the PM LAV Procurement Analyst contacted knowledgeable Government and Industry personnel, who both stated that GDLS-C is the only source for the FSR support required. GDLS-C, as the technical data owner, is the only company that can provide FSRs with the knowledge of LAV systems to support general maintenance, diagnostics, inspection/troubleshooting, repairs, and upgrades required under this effort.

9. Interested Sources: The notices required by FAR 5.201 will be published, and any proposals received will be considered. To date, no other source has written to express an interest.

10. Other Facts:

a. Procurement History:

1. DAAE07-99-C-M025 awarded Apr 1999 no information available DAAE07-03-C-0015 awarded 15 Oct 2003 W56HZV-11-C-0023 awarded 3 Nov 2010 W56HZV-11-C-0343 awarded 16 Aug 2011

2. Competitive status: sole source to CCC/GDLS-C

3. Authority used for less than full and open competition: FAR 6.302-1 for W56HZV-11-C- 0023 and W56HZV-11-C-0343.

4. A Justification and Approval (J&A) for Other Than Full and Open Competition was approved for previous contract W56HZV-11-C-0343. Paragraph 7 of that J&A stated, “No action will be taken to increase competition for future procurements. This is an FMS specific effort with no future requirements known.”

5. No prior award used full and open competition.

6. There were no unusual patterns revealed.

7. The J&A for W56HZV-11-C-0343 stated that GDLS-C would not release its TDP to third parties, by sale at an affordable price, or otherwise. This same position was confirmed in its response to a PM LAV Government Request for Information Questionnaire on 31 Jul 2015.

11/12. Technical/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:__John S Myers __________DATE:______22 Jan 2016________

Deputy Program Manager hardsigned signature in PCF TITLE: __Light Armored Vehicles_____ SIGNATURE:__//s// JSM_________

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Per DFARS 215.403-1(c)(4)(C), DoD has waived the requirement for submission of cost or pricing data for the CCC and its subcontractors. The contractor’s proposal will be reviewed and endorsed by the CCC. By virtue of that endorsement and an independent Government price analysis, the price will be considered fair and reasonable.

NAME:____Thomas K. Sargee_______ DATE:__21 MAR 2016______________________

TITLE: ____Contracting Officer______ SIGNATURE: __//s//tKS____________________

14. Procuring Contracting Officer’s Certification:

I certify that this justification is accurate and compete to the best of my knowledge and belief:

NAME:____Thomas K. Sargee_______ DATE:__21 MAR 2016______________________

TITLE: ____Contracting Officer______ SIGNATURE: __//s//tKS____________________

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) #15-19, , I hereby approve the procurement of LAV FSR support and training for the MNG for a period of five years, on an other than full and open competition basis pursuant to the authority of 10 USC 2304(c)(1) as implemented by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”, at an estimated value of $80M, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

4 May 2016 //signed// KAM

DATE____________ SIGNATURE: ___________________________

KRISTAN A. MENDOZA

Principal Assistant Responsible for Contracting Army Contracting Command-Warren