[REDACTED]_JA_2017-104.pdf

UNCLASSIFIED (U)

(U) CMO Control Number: 2017-104

(U) Justification Review Document for Other than Full and Open Competition

(U) Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

(U) Program Manager

(U) Typed Name: COL SHANE N. FULLMER DSN: 786-2984

(U) Title: Project Manager, Joint Program Office

Joint Light Tactical Vehicles

//signed// 22 September 2017

(U) Signature (U) Date

(U) Program Executive Office

(U) Typed Name: SCOTT J. DAVIS DSN: 786-5105

(U) Title: Program Executive Officer, Combat Support & Combat Service Support

(U) Signature (U) Date

(U) Legal Counsel

(U) Typed Name: LAURA K. ANDERSON DSN: 786-4433

//signed// 25 September 2017

(U) Signature (U) Date

(U) Command Advocate for Competition

(U) Typed Name: LARUTH SHEPHERD DSN: 786-6597 //signed// 1 Nov 2017

(U) Signature (U) Date

(U) Principal Assistant Responsible for Contracting (PARC)

(U) Typed Name: KRISTAN A. MYERS DSN: 786-7027

(U) Signature (U) Date

(U) DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. (U) Description of Action: ACC-WRN proposes to award, on an other than full and open competition basis, a new five-year follow-on requirements contract to AM General LLC (AM General) (also referred to herein as “the contractor” and “the organization”), located in Livonia, Michigan.

(U) This contract will be awarded on a Cost Plus Fixed-Fee (CPFF) basis. Each order will identify CPFF efforts as either Term or Completion form (as defined by FAR 16.306(d)). Requirements will be funded with Fiscal Years (FY) 2016-2022 Other Procurement Army (OPA) funding. Operations, Maintenance Army (OMA) funding may be used as it becomes available. Work Orders (also referred to as Work Directives) will be issued during the contract’s five-year period to authorize specific services to be executed.

3. (U) Description of Supplies/Services: The proposed action will allow for an estimated 697,000 hours for engineering, logistics, and related technical support functions, (collectively referred to as System Technical Support (STS) services) for all variants of the High Mobility Multipurpose Wheeled Vehicle (HMMWV) Family of Vehicles (FoV). The services to be provided apply to all phases of the vehicle system’s life cycle. The HMMWV is a highly mobile, diesel-powered, four-wheel-drive vehicle that performs various special and multipurpose missions in combat, combat support, and combat service support roles. The required STS services address obsolescence issues surrounding proprietary components as a result of the shrinking supplier base for HMMWV parts. This requirement will also provide sustainment, test support, integration of capability set equipment, and system support packages, which include sustainment support relating to the Modernization/Recapitalization of the HMMWV FoV. These services support the Army’s ability to plan and manage the vehicle system throughout its life cycle to include pre-planned technology refreshment and investments to improve safety, force protection, survivability, reliability, maintainability, supportability, and affordability.

(U) In accordance with DFARS 252.216-7006, Ordering, the Government will unilaterally issue orders within the following ordering periods:

(U) Ordering Period 1: Date of base requirements contract award plus 364 days

(U) Ordering Period 2: 365 days after base requirements contract award plus 364 days enhanced armor fragmentation kits. The aforementioned componentry, to which AM General retains sole rights in technical data, is required for successful performance of the required services under this proposed action.

(U) In March 2017, the Government attempted to purchase the proprietary technical data; however, AM General was not willing to sell it. The Government possesses a HMMWV FoV Level III Technical Data Package (TDP) for the basic HMMWV variants, but it is not suitable for competitive procurement because it does not contain the technical information on the aforementioned proprietary components.

b. (U) Unacceptable delays in fulfilling the agency’s requirements:

(U) If the proposed action for HMMWV STS services were competed under full and open competition, it is anticipated that it would result in a minimum delay of 44 months. The Government would have to conduct an extensive reverse engineering effort in order to develop the technical data for the aforementioned HMMWV proprietary components. Based on recent experience with developing technical data and requirements for the HMMWV M997A3 Ambulance Shelter TDP (completed in April 2014), PD LTV estimates that the TDP assessment, development, and update for the subject effort would take approximately 12 months (comprised of 29,000 labor hours). Upon completion of the TDP, it would take another 6 months to complete the competitive procurement package.

It is also estimated that the Government would encounter another 6 month delay due to receipt, transition, and training time for efforts that would have to be duplicated by any other contractor to successfully perform the STS services as required. This is a total of 44 months for a competitive procurement.

These duplicative efforts are addressed in 5.a. above.

(U) Based on PD LTV's previous experience with sole source procurements it will take approximately 5 months to execute a sole source action.

(U) The following table represents the potential schedule implications if the Government was required to qualify new contractors and compete this action:

FOIA # 5

(U) Table 2, Unacceptable Delay Event Sole Source Competitive

J&A Approval December 2017 N/A

Sole Source Procurement Package

December 2017 N/A

Competitive Procurement Package

N/A March 2019

RFP Release December 2017 January 2020

Receipt of Proposals January 2018 April 2020

Complete Evaluations March 2018 October 2020

Contract Award March 2018 November 2020

Transition Period N/A May 2021

First Order Award March 2018 June 2021

6. (U) Efforts to Obtain Competition:

a. (U) Effective Competition: The Government intends to solicit only to AM General for this acquisition based on the rationale provided in paragraph 5.

b. (U) Subcontracting Competition: At the subcontracting level, emphasis will be placed on the contractor’s obligation to continue competitive placement of purchase orders and contracts to maximize competition of components and parts. A small business subcontracting plan will be required for this effort. FAR 52.244-5, Competition in Subcontracting, will be in the contract to maximize competition in subcontracting efforts and enforce Government rights for future procurements. The proposed subcontracting plan will be reviewed and approved by the Office of Small Business Programs (OSBP) and Small Business Administration Procurement Center Representative (SBA PCR) and will be incorporated by reference into the contract.

OPSEC

7. (U) Actions to Increase Competition: Technical Data for proprietary HMMWV components will not be procured for the reasons stated in paragraph 5. PD LTV will continue to ask AM General to sell the proprietary information to the Government and will continue to do annual market research to support the HMMWV program.

8. (U) Market Research:

PD LTV issued a Sources Sought notice from 20 December 2016 to 19 January 2017 on Federal Business Opportunities (FedBizOps) website seeking additional providers of the required STS services. The sources sought identified the requirement described herein and stated that all responsible sources may submit a capability statement which will be considered by the agency. The capability statement requested the following information: 1) Name of Company, 2) Business CAGE code, 3) Point of contact and phone number, 4) Size of Business according to North American Industry Classification System (NAICS) Code 336992, 5) Other suggested NAICS codes for this program and company size classification based on these codes and 6) A brief summary (no more than two pages) of the company's experience and past performance within the last three years as it relates to this requirement. While three companies, ADYB Engineered For Life Inc., Intrepid Capital endeavors LLC, and Advanced Automation Corporation listed themselves as interested sources, no company submitted a capability statement providing the requested information. As such, the Government received no written responses to the Sources Sought notice. PD LTV is looking for engineering and logistics support for the HMMWV FoV with a contractor that possesses all of the HMMWV data, including proprietary components/systems (including door armor, engine, transmission, transfer case, differential, and air conditioning); however, since no responses were received, PD LTV concluded that no additional viable sources are available to meet this requirement.

9. (U) Interested Sources: To date, no sources, other than those identified above, have written to express an interest in this requirement. In accordance with FAR 5.201, this action will be synopsized on the FedBizOpps website. In accordance with Title 10 U.S.C. 2304 (f)(1)(C), any proposals received in response to publication of a required synopsis notice will be considered to determine if a competitive acquisition should be conducted.

10. (U) Other Facts:

a. (U) Procurement History:

(i) (U) Contract W56HZV-08-C-0016 was awarded on 4 October 2007 on a sole source basis to AM General and originally allowed for a level of effort up to 644,000 labor hours of STS support. The one-year base period included 128,000 labor hours, valued at The four one-year option periods totaled 516,000 labor hours, valued at

FOIA # 4

this effort; however, AM General was not willing to sell it to the Government. There have been no significant changes in the circumstances justifying sole source procurement.

b. (U) Other Facts. None.

11. (U) 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.

(U) Typed Name: COL SHANE N. FULLMER DSN: 786-2984 Title: Project Manager, Joint Program Office

Joint Light Tactical Vehicles

//signed// 22 September 2017 Signature Date

12. (U) 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.

(U) Typed Name: COL SHANE N. FULLMER DSN: 786-2984 Title: Project Manager, Joint Program Office

Joint Light Tactical Vehicles

//signed// 22 September 2017 Signature Date

13. (U) Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable through a combination of Cost and Price analyses. Army Contracting Command -Warren (ACC-WRN) has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who will assist the PCO by performing the Cost and Price analyses. ACC-WRN has a long history with AM General to include award of a 5 year IDIQ type contract in support of FMS requirements for a variety of HMMWV variants with an estimated value of on 29 August 2017.This requirement includes same/similar labor categories for same/similar end items and was determined fair and reasonable based on a detailed analysis of individual cost elements, history and review/input from an audit conducted by the Defense Contract Audit Agency (DCAA). In addition, the contractor will be required to submit certified cost and pricing data.

A price analysis, in accordance with FAR 15.404-1(b) will be conducted, in this instance relying primarily on subparagraphs (2)(ii) comparison to history and (2)(v) comparison to the independent Government Cost Estimate. In addition to the price analysis, a cost analysis, in accordance with FAR 15.404-1(c) will be used to evaluate the reasonableness of individual cost elements. Along with comparison to the recent award, individual cost elements will be compared to commercial rates, where available, and input from DCAA, to discern whether the costs proposed are current, accurate and reasonable. In addition, this analysis will also be supported by a Product Director - Light Tactical Vehicle (Pd LTV) technical review. Engineers or subject matter experts familiar with the end item will review labor types and quantities as well as material kinds and quantities to ensure proposed type and quantity of labor hours and materials are appropriate and realistic. The recommendations as contained in the DCAA Audit and Pd LTV technical review will be used by the Cost/Price Analyst 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. The results of negotiations, and the detailed Price Fair and Reasonable determination from the Contracting Officer will be documented in a Post Negotiation Memorandum (PNM) that will be reviewed and concurred upon by senior Contracting personnel within the Pricing Division.

(U) Typed Name: JESSICA M. BAILIFF DSN: 786-5371 Title: Contracting Officer Army Contracting Command - Warren

//signed// JMB 22 September 2017 Signature Date

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

(U) Typed Name: JESSICA M. BAILIFF DSN: 786-5371 Title: Contracting Officer Army Contracting Command - Warren

//signed// JMB 22 September 2017 Signature Date

(U) APPROVAL

(U) Based on the foregoing justification, I hereby approve the procurement of an estimated 697,000 hours, valued at with a five-year contract period for System Technical Support services for High Mobility Multipurpose Wheeled Vehicles on an other than full and open competition basis. This approval is pursuant to the authority of Title 10 United States Code 2034(c)(1) as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(iii)(A) and (B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This approval is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date JEFFREY S. WHITE

Senior Procurement Executive