J&A_(CMO_2018-103)-_Knight-Stryker_FSV_MEP_STS-SSTS-PPSS_Services_-_Final_Redacted.pdf

CMO Control Number: 2018-103 other source would result in – (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.”

5. Reason for Authority Cited:

a. Background: DRS-SSI is the Original Equipment Manufacturer of the M1200 Armored Knight Vehicle and the common Fire Support MEP for the M1200 Armored Knight and Stryker FSV. It developed, tested, and integrated the original MEP for the M707 Knight Fire Support Vehicle, then later transitioned from the M707 Knight Fire Support Vehicle to the M1200 Armored Knight, and integrated an improved common Fire Support MEP on both the M1200 Armored Knight and Stryker FSV. The common Fire Support MEP is not merely a kit (or kits); it is an amalgamation of many components, kits, and subsystems that are comprehensively and precisely combined and integrated into and made part of the fire support mission operation of the vehicle system.

The Government does not possess unlimited technical data rights to the Technical Data Package (TDP) for the M1200 Armored Knight vehicle chassis or other subsystems. The Government does currently possess unlimited technical data rights to all Level III drawings comprising the TDP for the current configuration of the M1200 Armored Knight MEP; however, various upgrade and modification efforts are currently being performed under current Contract W56HZV-15-D-0082 and these efforts will extend beyond the conclusion of the final ordering period. Therefore, additional Level III drawings and required modifications to the MEP TDPs will be delivered after award of this follow-on contract. For instance, DRS-SSI is currently designing and developing a technology refresh of the Stryker FSV MEP in order to resolve obsolescence issues by leveraging and enhancing the non-recurring engineering efforts it performed on the M1200 Armored Knight MEP. The technology refresh of the Stryker FSV MEP consists of development of the Next Generation Architecture (NGA) and an improved boresight system, including development and integration of a new system architecture for the Stryker FSV MEP to ensure a Fully Mission Capable system for precision, far-target netted sensor capability on the battlefield. The Government will not receive delivery of all Stryker FSV NGA MEP Level III drawings with unlimited technical data rights until December 2019.

For the current configuration of the Stryker FSV MEP, the Government does not possess all Level III drawings; however, the composition of both the M1200 Armored Knight MEP and Stryker FSV MEP is so similar that the cost to reverse engineer the delta between the two MEPs is immaterial to the overall effort.

b. Duplication of Cost: If the Government were to award to a contractor other than the incumbent, the Government would incur a substantial duplication of cost, as further discussed below.

People Months Hours per

Month Hours

Hourly Rate

Total

SME Educator 1 9 172 1,548 166,178$

Contractors 4 9 172 6,192 664,711$

SME Educator 1 9 172 1,548 166,178$

Contractors 6 9 172 9,288 997,067$

SME Educator 2 9 172 3,096 332,356$

Contractors 15 9 172 23,220 2,492,667$

29 44,892 4,819,157$

People Months Hours per

Month Hours

Hourly Rate

Total

SME Educator 1 12 172 2,064 221,570$

Contractors 4 12 172 8,256 886,282$

SME Educator 1 12 172 2,064 221,570$

Contractors 6 12 172 12,384 1,329,422$

SME Educator 2 12 172 4,128 443,141$

Contractors 15 12 172 30,960 3,323,556$

29 59,856 6,425,541$

Duplication of Cost New Contractor SME Education for current MEP

FY19, $

Function

MEP

Trainers

107.35$ FSR

Engineers

Training Subtotal

Training Subtotal

New Contractor SME Education for Next Generation Architecture MEP

FY20, $

Function

MEP

Trainers

109.51$ FSR

Engineers

In order for another contractor to be considered fully capable of providing the required STS, SSTS, and PPSS services to support the M1200 Armored Knight and common Fire Support MEP at the same technical competency level as DRS-SSI, including development of technical data, it would require the Government to expend nearly $11.3M in duplicative costs that the Government has already invested in the incumbent. These duplicative costs consist of an estimated $4.8M in Fiscal Year (FY) 19 and $6.4M in FY20 for 29 personnel to dedicate nearly 45,000 and 60,000 hours, respectively, to learn the intricacies of the M1200 Armored Knight and the current common Fire Support MEP in FY19 and new common Fire Support NGA MEP in FY20 in order to become technical Subject Matter Experts (SMEs). The 29 personnel would consist of four contractor employees to become SME Educators who would then educate an additional 25 personnel, including four MEP Trainers, six FSRs, and 15 engineers to be capable of providing the required STS, SSTS, and PPSS support services at the same level as DRS-SSI.

This learning curve would span approximately nine months for the current common Fire Support MEP and 12 months for the common Fire Support NGA MEP at an estimated hourly rate of $107.35 and $109.51, respectively. Nine months is based on the average amount of time it takes to train Government personnel on the Stryker FSV, of which the MEP comprises the majority of vehicle training, while 12 months is based on the fact that the NGA is a complete redesign of the current common Fire Support MEP and includes more complex

The applicable J&A paragraph of actions to increase competition reflected that it was not cost effective to have a new contractor to take on STS responsibility for the Armored Knight Vehicle System fleet. Because of the unique nature of the requirement, the Government took no further action to increase competition.

*Modifications P00005, P00037, and P00053 added a total of 663,892 (250,000 + 300,000 + 83,892) additional option hours. Modifications through P00060 extended the final ordering period through 09 May 2015.

No unusual patterns were revealed by the procurement history.

b. Other Facts: Not Applicable.

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: Peter T. Sturos Date: 10 July 2018 Title: Team Lead, Fires/Scout Signature: Peter T. Sturos, //s//

Vehicles-Sensor/MEP Integration Team (Stryker FSV, FSV/V-A1, RV ICV/V-S & Knight)

Fleet Engineering (P&VM), PM-SBCT

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. The contractor's proposal will be reviewed by Government requirements personnel who· will address the appropriateness of the proposed labor hours and labor categories, material, Other Direct Costs, and other cost elements as requested by the Contracting Officer.

Cost/Price Analysis and audit recommendations will be used to discern whether the costs proposed are current and justifiable. The final negotiated agreement will give full consideration to all contractual requirements, to support a determination of fair and reasonable prices for this action. Certified Cost or Pricing Data, which may be subjected to DCAA audit, will be required and will form the basis for negotiating a fair and reasonable price.

Name: JACLYN M. FLEWELLING Date: 10 Jul 2018 Title: Contracting Officer, Signature: //signed// JMF Production & Program Support Team

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

Name: JACLYN M. FLEWELLING Date: 10 Jul 2018 Title: Contracting Officer, Signature: //signed// JMF Production & Program Support Team