JA_Abrams_Obsolescence_2019-24_Redacted.pdf

CMO Control Number: 2018-108

5. Reasons for Authority Cited: GDLS has been the sole-source contractor for the Abrams weapon system since the early 1990s. GDLS is currently the only manufacturer for the vehicle and the only known contractor with ability to provide competent management and execution of Abrams obsolescence services immediately upon contract award without unacceptable delays to the Government.

An award to a source other than GDLS would result in an unacceptable delay of approximately 51- 63 months. The impact of absorbing any delay would result in an inability to identify and acquire obsolete parts, rendering field units Non-Mission Capable and severely decreasing operational readiness over time. GDLS is uniquely positioned to provide these services without unacceptable delays to the Government.

The events necessary to establish a competitive approach to acquire obsolescence management and support services from a contractor other than GDLS were developed in four phases. Phase I, Source Selection, is the amount of time required to award a contract to an outside vendor. Phase II, Process Proficiency, is the amount of time required to understand current processes and interactions. Phase III, System Engineering Proficiency, includes time to understand the weapon system, its components, and their form, fit, and function. Phase IV, Diminishing Manufacturing Assessment, represents the time it would take for a contactor to do a preliminary assessment of the industrial support for the components.

The schedule delay resulting from using a competitive approach to selecting and qualifying a new source is shown in the table below:

Estimated Schedule Impact of Competitive Award—Abrams FoV

Source Selection, Qualification, and Development Tasks

Time (Months)*

Phase I Source Selection 6-18 Phase II Process Proficiency 3 Phase III System Engineering Proficiency 30

Phase IV Diminishing Manufacturing Assessment 12

Total 51 – 63 *Note: New Source Qualification durations are based on Product Manager Abrams Engineering Division experience.

Phase I Source Selection: (6-18 months.) The competitive source selection process is composed of developing a Source Selection Plan and contract sections L and M, staffing and convening a Source Selection Evaluation Board, conducting all Source Selection activities through contract award, and conducting debriefings. Qualification of a new prime contractor would take 4-7 months. During the proposal evaluation phase of a new competition, the Government would perform a pre-award survey to assess whether the new contractor could meet contractual requirements and storage facility supplier relationships; and three months to make final obsolescence determinations on high risk components.

6. Efforts to Obtain Competition:

a. Effective Competition: There is no plan to obtain competition for this contractual action on the prime contractor level for the reasons stated above in Section 5.

b. Subcontracting Competition: GDLS is required to submit a subcontracting plan in accordance with FAR 19.704 in order to achieve small business subcontracting opportunities. To ensure that GDLS competitively subcontracts to the maximum extent possible, this contact will contain the following FAR and Defense Federal Acquisition Regulation Supplement (DFARS) clauses to maximize subcontracting opportunities for small business: FAR 52.244-2 – Subcontracts, 52.219-9 – Small Business Subcontracting Plan (Deviation 2018-O0013), 52.219-16 – Liquidated Damages – Subcontracting Plan, 52.219-8 – Utilization of Small Business Concerns, 52.244-5 – Competition in Subcontracting, and DFARS 252.219-7003 – Small Business Subcontracting Plan (DoD Contracts).

7. Actions to Increase Competition: There are no anticipated actions to increase competition for subsequent procurements. If new requirements are identified in the future, market research will be conducted at that time.

8. Market Research: A Market Survey questionnaire was posted to FedBizOpps from 5- 19 December 2017 to assess the current market’s ability and experience to provide obsolescence services for multiple Abrams electronic components. Respondents were required to answer all the questions in the Market Survey, such as company experience, Government licensing agreement, storage facilities, “Out-of-Production” management, packaging and shipping, handling, Hazardous Materials, and Electrostatic Discharge (ESD). During this period, one response was received from General Dynamics Land Systems (GDLS) in Sterling Heights, MI. The Abrams Subject Matter Expert (SME) Government Team conducted an analysis of the GDLS response and determined that GDLS has procured, managed, stored, packaged, and shipped “Out of Production” material for the USG and FMS customers to include: electro-mechanical devices and subcomponents, circuits, circuit cards and subcomponents, video display glass, electrical power supplies and subcomponents, and electrical and electronic connectors. The Abrams “Out-of-Production” material storage facility is located at the GDLS Tallahassee facility in Florida. This GDLS facility is the electronics manufacturing center for Abrams and the entire facility is ESD compliant. The storage area is secured and controlled with restricted personnel access. GDLS has packaged and shipped ESD material to repair facilities for approximately 16 years, including shipping to the

As a result of the Government’s technical analysis, it was determined that GDLS would meet the requirement.

9. Interested Sources: To date, no other sources have written to express interest.

The Contracting Officer will publish notices required by FAR 5.201 and consider any proposals received.

10. Other Facts:

A. Procurement History: Procurement history for the Abrams Obsolescence contracts is as follows:

(1) Contract: W56HZV-12-C-0105

Contractor: GDLS Requirement: Abrams Obsolescence Management – Last Chance Buy

(LCB)

Basic Award Date: 27 January 2012 Total amount: $22.8M (Obligated as of 24 June 2018)

Contract: W56HZV-07-D-0062 Contractor: GDLS Requirement: Abrams Obsolescence Management - LCB Basic Award Date: 1 December 2006 Total amount: $31M

Contract: DAAE07-01-G-N001 Contractor: GDLS Requirement: Abrams Obsolescence Management - LCB Basic Award Date: 7 March 2001 Total amount: $44M

(2) The previous procurements were sole source to GDLS.

(3) The Justification and Approvals for the previous procurements were based on 10 U.S.C. Section 2304(c)(1), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements,” as authorized by FAR 6.302-1(a)(2)(iii)(B).

(4) The previous justification stated that the Government is not contemplating further competition because GDLS is the only source capable of providing the required services without a substantial duplication of cost. There are no plans to increase competition as only GDLS has the prerequisite experience and knowledge to perform this effort.

(5) Prior contracts for this requirement were not accomplished using full and open competition.

(6) No unusual patterns were revealed in the procurement history.

(7) The previous justification was issued under the authority of FAR 6.302-1.

That justification stated that GDLS is the only source capable of providing the required services without a substantial duplication of cost. That justification has not changed.

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: EDWARD O. LEWIS Date: 1 June 2018

Title: Deputy Project Director

Main Battle Tank Systems Signature: //s// EOL_________

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. Certified cost or price data will be required in accordance with FAR 15.403-4.

Name: JOSEPH A. NEUMANN Date: 04 June 2018

Title: Contracting Officer Signature: //Signed//

14. Contracting Officer Certification:

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

Name: JOSEPH A. NEUMANN Date: 04 June 2018

Title: Contracting Officer Signature: //Signed//