[REDACTED]_JA_2018-084.pdf

CMO Control Number: 2018-084

• Compared to the M872A0-A3 semitrailers, the M872A4 semitrailer includes an enhanced electrical system for the attachment of diagnostic equipment, anti-lock brake controllers for improved control, and tires and rims that add service life.

• The M872A4 semitrailer has a variant that is ADR compliant. ADR is an authoritative agreement intended to increase the safety of international transport of dangerous goods by road in Europe. Only ADR compliant trailers are allowed to carry hazardous materials on European roads; therefore, an ADR compliant semitrailer is required to meet the mission requirements in Europe.

• The M872A4 semitrailer is Ammunition Certified for the transport of Class V material (ammunition). In March 2005, the U.S. Army Defense Ammunition Center (USADAC) tested the Talbert-manufactured M872A4 semitrailer IAW AR 740-1, “Storage and Supply Activity Operations,” and provided approval for the transport of bulk ammunition. Ammunition Certification is required by paragraph 1.2 of ATPD 2332F, which states that the M872A4 semitrailer will have a mission profile to transport two M113 Family of Vehicles variants, one 40-foot or two 20-foot ISO containers, equivalent in break bulk cargo, including palletized cargo, such as ammunition.

Talbert is the Original Equipment Manufacturer (OEM) and sole developer of the M872A4 semitrailer. Talbert owns the Technical Data Package (TDP), including drawings and technical data rights for the highly specialized M872A4 semitrailer. On 29 January 2018, Talbert informed the Government via email that it does not sell its proprietary design work and

A reverse engineering effort of the M872A4 TDP would take an estimated 18-24 months to complete. The reverse engineered TDP would then need to be competed IAW the timeline listed in paragraph 5(b) below, which would result in an unacceptable delay and would negatively impact unit readiness and the ability to conduct major contingency operations.

b. Unacceptable Delay: Talbert is the only source that has produced the M872A4 semitrailer for the U.S. Army, has passed Government testing, and has all associated provisioning and technical manuals. Any other source, through a competitive procurement, would require at least 57 months to commence initial delivery as shown in the Sole Source/Competitive table below:

SOLE SOURCE (Talbert) Justification and Approval (J&A) May 2018 Letter Request for Proposal May 2018 Award June 2018 Initial Delivery December 2018

Freedom of Information Act (FOIA) Exemption #4

COMPETITIVE

Synopsize July 2018 Request for Proposal–Full and Open August 2018 Proposals Received October 2018 Source Selection Evaluation Board/Evaluation Complete July 2019 Contract Award August 2019 Low Rate Initial Production Trailer Build April 2020 Test and Evaluation (including Ammunition Certification) July 2022 Logistics Development (Technical Manual Verification and Provisioning)

July 2023

Initial Delivery September 2023

A sole-source modification award to Talbert in the June 2018 timeframe would result in the production and delivery of M872A4 semitrailers starting no later than December 2018, compared to deliveries starting around September 2023 with a competitive procurement. As indicated by the table above, a competitive procurement would require the following:

Request for Proposal Development: The estimated time it takes to prepare and receive approval to release a Full and Open Request for Proposal (RFP) is six months. Activities to issue an RFP include statement of work development and reviews, evaluation criteria development and reviews, and Source Selection Plan development and associated briefings and approvals.

Source Selection Evaluation Board (SSEB): The estimated time it takes to conduct a SSEB to award a contract based on historical averages from the ACC- WRN Source Selection Support Center of Excellence (S3COE) is six to twelve months. The Government is utilizing an average of nine months for the SSEB, composed of staffing and convening an SSEB and conducting all Source Selection activities, including briefings and debriefings through contract award.

Low Rate Initial Production (LRIP) Trailer Build: During this phase the contractor would be required to build test trailer assets so the Government would be able to perform necessary testing and logistics development. Historical data shows a total of six to nine months for LRIP production. The Government is utilizing an average of eight months for LRIP trailer builds, which includes three months for contractor manufacturing, quality, and material purchasing processes and procedure development, four months for material lead time, and one month for production lead time.

Test and Evaluation: The testing and evaluation phase based on historical averages of similar commercial trailers annotated by Product Manager, Heavy Tactical Vehicles (PdM HTV) Test personnel is 27 months. The semitrailer is required to be sent to a Government test facility where key events, including inspection, reliability, availability, maintainability, transportability, and performance testing, shall be performed. Additionally, the M872A4 is a line

Operations Security (OPSEC)

Operations Security (OPSEC)

(5) Contract DAAE07-03-D-S067 was awarded under FAR Subpart 6.1, “Full and Open Competition.” Talbert is the sole developer of the M872A4 semitrailer and owns its TDP. This upcoming effort is a reprocurement of M872A4 Semitrailers.

(6) No unusual patterns have been revealed by a review of the procurement history.

(7) The justification for the prior M872A4 semitrailer was FAR 6.302-1 and this justification is FAR 6.302-1(a)(2)(ii)(b) due to the follow-on nature of this requirement. There are no other significant changes to this circumstance.

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: LTC Jeffery Jurand TITLE: Product Manager, Heavy Tactical Vehicles

//s// 9 May 2018

13. Fair Reasonable Cost Determination:

The negotiated price will be determined fair and reasonable by conducting a price analysis to ensure that the price agreement is consistent with the IGCE and historical pricing for the M872A4 semitrailer. ACC-WRN has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the Procuring Contracting Officer (PCO) by performing the Price Analysis. This analysis will also be supported by a PdM HTV Technical Review. A Defense Contract Audit Agency (DCAA) audit is not required for this effort, as this has been determined a commercial item. The recommendations from the Cost/Price Analyst and PdM HTV technical review will be used to develop a recommended negotiating position. This detailed Government position will be approved in a comprehensive Business Clearance Review consisting of reviews from senior contracting officials at ACC-WRN. In accordance with FAR 15.403-1(c)(3), Certified Cost and Pricing Data will not be required, as this has been determined a commercial item. The results of negotiations and the detailed Price Fair and Reasonable Determination from the PCO will be documented in a Post Negotiation Memorandum (PNM) that will be reviewed and concurred upon by senior contracting personnel within the Pricing Division.

NAME: Eric D. Murphy TITLE: Contracting Officer

//signed-edm// 9 May 2018

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Eric D. Murphy TITLE: Contracting Officer

//signed-edm// 9 May 2018

APPROVAL

Based on the foregoing Justification, and as Principal Assistant Responsible for Contracting pursuant to Army Materiel Command Head of Contracting Activity Delegation of Authority #18-23, I hereby approve the procurement of an additional 494 M872A4 semitrailers for an estimated $47,350,000 on an other than full and open competition basis pursuant to the authority of Title 10 United States Code (U.S.C.)

Section 2304(c)(1), as implemented in FAR 6.302-1,”Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

15 May 2018 //DJG// Date: _________________ Signature: ____________________________

DANIEL J. GALLAGHER

Principal Assistant Responsible for Contracting