[REDACTED]_2018-049.pdf

CMO Control Number: 2018-049

Justification Review Document for Other than Full and Open Competition

Program/Equipment: M872A4 Semitrailer

Authority: 10 U.S.C.2304(c)(1), as implemented under FAR 6.302-1

Amount:

Prepared by:

Typed Name: Kyle Szwarc DSN: 786-6266

Title: Procurement Analyst Date: 9 May 2018

Email: kyle.a.szwarc.civ@mail.mil

Contracting Officer:

Typed Name: Mr. Eric D. Murphy DSN: 786-5483

Email: eric.d.murphy20.civ@mail.mil Date Reviewed: 9 May 2018

Technical Representative:

Typed Name: Mr. Joseph M. Keusch DSN: 786-8660

Title: Division Chief, Engineering Date Reviewed: 9 May 2018 Transportation Systems

Email: joseph.m.keusch.civ@mail.mil

Requirements Representative:

Typed Name: Mr. Robert E. Fletcher DSN: 786-7891

Title: Deputy Project Manager, Date Reviewed: 9 May 2018 Transportation Systems

Email: robert.e.fletcher6.civ@mail.mil

Freedom of Information Act (FOIA) Exemption #4

Justification Review Document for Other than Full and Open Competition

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

Program Manager, Heavy Tactical Vehicles

Typed Name: JEFFERY W. JURAND DSN: 786-5800 Lieutenant Colonel, AR

Signature: //s// Date: 9 May 2018

Project Manager, Transportation Systems

Typed Name: DANIEL L. FURBER DSN: 786-5569 Colonel, FA

Signature: Mr. Eric Fletcher for //s// Date: 9 May 2018

Program Executive Office

Typed Name: ROSS R. GUCKERT DSN: 786-5107 Program Executive Officer

Combat Support & Combat Service Support

Signature: //RRG// Date: 9 May 2018

Legal Counsel

Typed Name: Ms. Crystal Monroe DSN: 786-7532

Signature: //CM// Date: 11 May 2018

Command Advocate for Competition

Typed Name: Ms. La Ruth Shepherd DSN: 786-6597

Signature: __ //LS// __ Date: 11 May 2018

Justification Review Document for Other than Full and Open Competition

Principal Assistant Responsible for Contracting (PARC)

Typed Name: DANIEL J. GALLAGHER DSN: 786-7025

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

• The M872A4 semitrailer axles have greater capacities to carry increased weight and the suspension was designed to improve flexion and deflection of the trailer deck for non-standard shape loads compared to the M872A0-A3.

• 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 semitrailer 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. In addition to the 18-24 months necessary to reverse engineer the TDP, any other source, through a competitive procurement would require at least 58 months more than Talbert to commence initial delivery as shown in the Sole Source/Competitive table below (December 2023 initial delivery under a competitive procurement is 58 months more than February 2019 initial delivery under a sole source procurement to Talbert):

FOIA Exemption #4

SOLE SOURCE (Talbert) Synopsize June 2018 Request for Proposal June 2018 Award December 2018 Initial Delivery February 2019

COMPETITIVE

Synopsize July 2018 Request for Proposal–Full and Open November 2018 Proposals Received February 2019 Source Selection Evaluation Board/Evaluation Complete October 2019 Contract Award November 2019 Low Rate Initial Production Trailer Build July 2020 Test and Evaluation (including Ammunition Certification) October 2022 Logistics Development (Technical Manual Verification and Provisioning) October 2023 Initial Delivery December 2023 *Does not include the 18-24 months necessary to reverse engineer the TDP prior to solicitation)

A sole-source award to Talbert in the December 2018 timeframe would result in the production and delivery of M872A4 semitrailers starting no later than February 2019, compared to deliveries starting around December 2023 with a competitive procurement.

As indicated by the table above, a competitive procurement would require the following, in addition to 18-24 months prior to solicitation to reverse engineer the TDP:

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 based on historical averages. 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 award to a new contractor 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

OPSEC

OPSEC

Atlantic Diving Supply being the logistic integrator. This was a onetime buy, as the REF has approval to use this contracting mechanism, but the Army does not.

Total contract value is $3,045,500.

Contract DAAE07-03-D-S067, awarded on 28 August 2003 to Talbert, was issued as an IDIQ type contract with a maximum five-year quantity for a total quantity of 2,476 M872A4 semitrailers. The acquisition was made under FAR Subpart 6.1, “Full and Open Competition.” Total contract value is $132,475,452.

(2) There are no current active contracts for the M872A4 semitrailer that were made through full and open competition.

(3) The most recent procurement (contract W56HZV-18-C-0004) cited the authority of Title 10 U.S.C. 2304(c)(1) and FAR 6.302-1.

(4) A Justification and Approval (J&A) for M872A4 semitrailers was signed by Principal Assistant Responsible for Contracting (PARC) Kristin Myers on 2 August 2017 for contract W56HZV-18-C-0004.

(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. 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: Mr. Joseph M. Keusch Signature: //s//

Title: Division Chief, Engineering, Date: 9 May 2018 Transportation Systems

12. Requirements Certifications: 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.

Type Name: Mr. Robert E. Fletcher Signature: //s//

Title: Deputy Project Manager, Date: 9 May 2018 Transportation Systems

13. Fair and 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.

Type Name: Mr. Eric D. Murphy Signature: //signed- edm//

Title: Contracting Officer Date: 9 May 2018

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

Type Name: Mr. Eric D. Murphy Signature: //signed-edm//

Title: Contracting Officer Date: 9 May 2018

APPROVAL

Based on the foregoing Justification, I hereby approve an FFP IDIQ contract for the procurement of a maximum quantity of 3,123 M872A4 semitrailers for an estimated 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(a)(2)(ii)(B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” The approval is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: ___JUN 14 2018 Signature: //BDJ// Bruce D. Jette Senior Procurement Executive

FOIA Exemption #4