BFV MLRS STS J and A.pdf

CMO Control Number: 2021-038

Justification Review Document for Other than Full and Open Competition

Program/Equipment: System Technical Support (STS) and Sustainment System Technical Support (SSTS) services for Bradley Fighting Vehicle System (BFVS) Family of Vehicles (FOV), Multiple Launch Rocket System (MLRS) Carrier, and all derivatives of those vehicles.

Authority: Title 10 United States Code (U.S.C.), 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(A) and (B)

Amount:

Prepared by:

Typed Name: KRISTINE N. HOLMES DSN:

Title: Procurement Analyst Date: 04 May 2021 Email:

Contracting Officer:

Typed Name: SCOTT L. FOLLEN DSN:

Email: Date Reviewed: 04 May 2021

Technical Representative:

Typed Name: BRYAN J. MCVEIGH, PMP DSN:

Title: Project Manager, Date Reviewed: 04 May 2021 Mounted Armored Vehicles (MAV) Email:

Requirements Representative:

Typed Name: BRYAN J. MCVEIGH, PMP DSN:

Title: Project Manager, Date Reviewed: 04 May 2021 Mounted Armored Vehicles (MAV) Email:

POC: Kristine Holmes

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

Program Executive Office

Typed Name: GLENN A. DEAN DSN:

Title: BRIGADIER GENERAL, U.S. ARMY Program Executive Officer Ground Combat Systems

Signature______________________ Date: _____________

Legal Counsel

Typed Name: JOSEPH M. O’CONNELL DSN:

Signature______________________ Date: 05 MAY 2021

Command Advocate for Competition

Typed Name: LARUTH SHEPHERD DSN:

Signature______________________ Date: 07 MAY 2021

Senior Contracting Official (SCO)

Typed Name: JOHN D. JOLOKAI DSN:

Signature______________________ Date: _____________

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command–Detroit Arsenal (ACC-DTA), Detroit Arsenal, Michigan, 6501 East 11 Mile Road, 48397-5000.

2. Description of Action: ACC-DTA proposes to award a new five-year Cost-Plus

Fixed Fee (CPFF), Completion and Level of Effort (LOE), follow-on contract with BAE Systems Land & Armaments (BAE), in support of the Bradley Fighting Vehicle System (BFVS) Family of Vehicles (FOV), Multiple Launch Rocket System (MLRS) Carrier, and all derivatives of those vehicles. This contract effort will include five years of System Technical Support (STS) and three years Sustainment System Technical Support (SSTS) services. The total contract period with options is fourth quarter of Fiscal Year (FY) 2022 through third quarter of FY27.

The contract will allow for individual Work Directives (WDs) to be awarded as a Cost-Plus-Fixed-Fee (CPFF) effort on a Completion or Level of Effort (LOE) basis, based upon the nature of the requirement, with approximately 60% estimated to be awarded as Completion and 40% awarded as LOE. Each WD will detail the Scope of Work (SOW) to be performed by the contractor and Contract Data Requirements List (CDRL) items to be delivered by the contractor.

All related fielding and logistic support will be included. The Government will fund this action utilizing the following types of funding:

Type of Funding Purpose

Research, Development, Test, and Evaluation (RDT&E)

STS for U.S. Army vehicles

Other Procurement, Army (OPA) STS for U.S. Army vehicles

Operations and Maintenance, Army (OMA) SSTS for U.S. Army vehicles

Army Working Capital Fund (AWCF) SSTS for U.S. Army vehicles

Foreign Military Sales (FMS) STS/ SSTS for FMS vehicles

3. Description of Supplies/Services: The planned contract efforts will allow for the continuation of critical STS and SSTS services to be provided for the vehicles managed by Project Manager Mounted Armored Vehicles (PM MAV). These services include engineering, logistics, and fielding support for BFVS FOV, MLRS Carrier, and all derivatives thereof.

a) The STS Engineering support includes:

• Configuration Management

• Obsolescence Management and Resolution

• Engineering Change Proposals

• Field Problem Analysis

• Design and Development

• Investigation and Trade Studies

• System Integration consisting of human factors of safety and ergonomics

• Reliability Availability Maintainability (RAM)

• Verification Testing

• Safety Engineering

• Software Development & Support

• Packaging Development

• Technical Data Package (TDP) Maintenance

• Quality Assurance

• TDP Revisions

• Platform Cybersecurity

• Technical Manual Publications

• Packaging and Packing Preservation

• Modification Work Order (MWO) efforts for Development

• Depot Logistics Engineering

• Technical Data Provisioning

b) The SSTS support includes:

• Field Service Representative (FSR) and Field Service Technicians (FSTs)

• Supporting Materiel Fielding Teams and various Army units, both Continental United States (CONUS) and Outside Continental United States (OCONUS).

• MWO efforts for hardware installation in the field

• New Equipment Training (NET)

• Vehicle Deprocessing/Prep for Issue (PFI) for hand-off to units

The total estimated value of the above actions is as provided in Table 1, below. The estimate for this action is based on an Independent Government Cost Estimate (IGCE) dated 24 June 2020:

Table 1: Estimated Value of BFVS/ MLRS - STS/SSTS*

Total number of Hours Estimated

Labor Estimated Material

Total Estimated

Total

The hours are based on comparable scope and cost to the current STS contract and SSTS services consisting of engineering, logistics, and fielding support for BFVS FOV, MLRS Carrier.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C), Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements." Specifically, FAR 6.302-1(a)(2)(iii)(A) and (B) provides that “Services may be deemed to be available only from the original source in the case of a follow-on contract for the continued provision of highly specialized services, when it is likely that award to any other source would result in – (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the agency’s requirements.”

5. Reason for Authority Cited:

a) BAE Systems, as the Original Equipment Manufacturer (OEM) and sole producer of the BFVS FOV and MLRS Carrier and all derivatives thereof, is the only contractor with the immediate engineering and logistics experience, and knowledge of the BFVS FOV required to support the vehicles. The STS/SSTS program involves extensive vehicle support tasks that include Program Management, Logistics, Engineering, Configuration Management, Product Assurance and Test (PAT), Software Development, Cybersecurity, and Capability Maturity Model Integration (CMMI) related tasks. No other firm except BAE is capable of meeting the Army’s needs and no other source possesses the technical data, Computer Software, documentation, and knowledge needed to fully support the vehicles within the required timeframe. Additionally, BAE currently maintains configuration control and overall system design of the BFVS FOV and MLRS Carrier and all derivatives thereof. BAE has the engineering expertise with experienced personnel capable of developing timely and accurate responses to issues arising on complex software and electrical systems, armor requirements, ammunition, turrets, and system integration of the vehicles. BAE is also responsible for obsolescence planning and timely replacement of hardware, software, and firmware.

BAE has engineers in each field of vehicle design with years of experience working on each vehicle system. A new firm attempting to develop the engineering expertise to efficiently and effectively respond to the multitude of mechanical, electrical, software, and armored structural design issues across these vehicle systems would have to learn various subsystems on each vehicle.

This would result in added expenditures and would require additional time for a new firm to respond to field issues, possibly causing vehicles to be dead-lined for indeterminate periods.

b) BAE, as the OEM and current contractor for the subject vehicles, developed and maintains the existing collection of technical information on the various vehicles and major subsystems, including technical analysis, trade-off studies, and problem investigation reports. BAE has more than forty years of vehicle production experience and is responsible for obsolescence planning and timely replacement of hardware, software, and firmware as part of configuration control of the vehicle design. In addition, as the prime contractor for the Bradley and MLRS systems, BAE is responsible for ensuring the correct versions of software are obtained from vendors and confirming the software is compatible with new vehicle configurations.

c) The tables below depict the duplication of cost and unacceptable delay that would be incurred if another source was to perform STS and SSTS services for PM MAV managed vehicles.

While some components of the tasks listed in 5.d (i) are common across the vehicle systems and could be accomplished concurrently, each listed task would still have to be performed on each vehicle system. The PM office developed the estimated length of time using both combat vehicle history from the Bradley FOV and a bottom-up approach by identifying the tasks to be performed, the number of people necessary to execute the effort and the man-years required to perform the tasks.

In order to generate the costs listed in the chart below, actual historical Bradley contract data along with an in-house Government engineering analysis was conducted to estimate duplicate costs necessary to perform each task.

Bradley

Task Length of Time

Cost $M Ref.

Months $114.45 5.e

MLRS

Task Length of Time

Cost TY21$M Ref.

Months $38.15 5.e

d) In order to introduce competition to the STS effort, additional sources would have to be developed. This would include the Government’s development of the requirement, through the additional sources’ demonstration(s) of technical expertise.

i) Technical Data, Computer Software, Logistics Data, and documentation for

Vehicle Systems: The additional time and duplication of cost can be attributed to the period associated with the need to learn all vehicle parameters, requirements, documentation, procedures and LRUs to support on-going obsolescence redesigns, design upgrades, and safety upgrades. In order to accomplish this, another contractor would need to spend months reviewing all of the documentation for the Bradley FOV and MLRS. BAE has the knowledge of all design parameters documented, along with Computer Aided Design (CAD) models, and performance models for the entire vehicle and each LRU interface. The development and delivery of technical drawings, computer software and logistic data required to field new systems are reflected in the charts above. These estimates include reverse engineering of vehicle and LRU modules, prototype builds, development of design criteria, CAD models, development of performance models and model validation.

ii) Total Time and Cost: All tasks can be accomplished concurrently and would be required for both systems.

The above estimates are based on historical actual data from the Bradley program.

e)

The delay would negatively impact the Army and national security. STS/SSTS services must continue

Moreover, a delay to the programs would mean the Army would have to delay providing Soldiers with vehicle improvements, including safety upgrades, thereby reducing fleet readiness rates. In addition to an unacceptable delay, awarding this effort to a source other than BAE would result in a substantial duplication of cost not expected to be recovered through competition.

6. Efforts to Obtain Competition:

a) Effective competition: For the reasons stated above, effective competition is not anticipated for this acquisition. The Government will post all notices required by FAR 5.201 for this action, and any responses will be considered.

b) Subcontracting competition: At the subcontract level, BAE will be required to select subcontractors on a competitive basis to the maximum practical extent consistent with FAR clause 52.244-5, Competition in Subcontracting. This action will be synopsized and the prime contractor will be required to submit a subcontracting plan. It will be evaluated and BAE’s goals will be negotiated, if necessary.

7. Actions to Increase Competition: The Government has no plans to increase competition.

8. Market Research:

PM MAV conducts market research on a regular basis in order to determine if other contractors are able to provide the services required under this effort. Pursuant to FAR 10.002(b)(2)(i) and (ii), a market survey was issued on 20 August 2020 in the form of a Sources Sought Notice, to determine whether new sources are capable of performing the tasks currently included under the Bradley STS/SSTS contract. The market survey was released covering BFVS FOV and MLRS vehicles. The market survey addressed all major tasks, including the following:

• Program Management: Describe your company’s experience and tools to manage project cost, schedule, and performance.

• Configuration Management (CM): Describe your company’s CM Process, tools to perform Configuration Management of the Technical Data Package, and experience in Configuration Management.

• Systems Engineering: Describe your company’s experience and tools to manage requirements, develop specifications, assess and track risk, and address parts obsolescence.

• Software Engineering: Describe your company’s level of certification, processes, and experience in managing software requirements, development, test, fielding and sustainment support. Describe your company’s experience developing and verifying embedded diagnostics software on vehicles with an electronic architecture.

• System Validation/Testing: Describe your company’s experience performing subsystem and vehicle level integration, assembly, test, and checkout. What is your company’s experience performing hardware/software integration and troubleshooting?

• Integrated Logistics Support (ILS) Management: Describe your company’s experience in developing and updating logistics support products for integrated vehicle systems. What is your company’s experience with obsolescence and continuing support for vehicles in light of these issues?

What is your company’s process to ensure the vehicle system remains supportable through spare parts, maintenance, and logistics documents as the configuration changes?

Below is a summary of the evaluation results:

Vendor Business

Size Location Capability

BAE

Systems

Large Business

Sterling Heights, MI

Very capable of meeting contract requirements. BAE, as the Original Equipment Manufacturer (OEM) for the Bradley Fighting Vehicle System (BFVS) Family of Vehicles (FOV), AMPV, MLRS Carrier, M113 FOV, and all derivatives, is the incumbent contractor for the BFVS STS/SSTS contract providing comprehensive systems engineering, services and manufacturing for major defense programs.

In November 2020, PM MAV subject matter experts (SMEs) in Engineering, Logistics, Configuration Management, Quality, Program Management and Business Management performed an analysis of the responses. The SME team identified seven areas which have a direct influence on whether the responder is capable of performing as a prime contractor for the STS/SSTS contract. Although the Market Survey generated four responses from potential vendors, the team eliminated three as sources who are not capable of satisfying the overall requirement. The SME team found that only BAE possesses the available resources with sufficient and successful past experience to meet the required STS/SSTS program deliverables, based on the information provided in section 5 above.

9. Interested Sources: Aside from the responses to the Market Survey, no other contractor has expressed an interest in this action. All notices required by FAR

5.201 will be published, as appropriate, in conjunction with this acquisition and any proposals will be considered.

10. Other Facts:

a. Procurement history (PM MAV): The following contracts are STS/SSTS for Bradley FOV and MLRS Carrier and derivatives thereof.

1. Contract Numbers and Dates:

a) Contract: W56HZV-15-C-0099

Awarded: 09 July 2015 Value: $557,067,646 Competitive Status: Non-competitive J&A Authority Cited: 10 U.S.C 2304(c)(1) and FAR 6.302-1

b) Contract: W56HZV-13-C-0018 Awarded: 18 December 2012 Value: $77 Million

c) Contract: W56HZV-07-C-0096 Awarded: 20 December 2006 Value: $1.28B

2. J&A History: A Justification and Approval (J&A) for Other Than Full and Open

Competition was approved (CMO 2018-031) on 5 June 2018 by the Senior Procurement Executive for a contract modification to W56HZV-15-C-0099 to add hours and extend the period of performance of the current STS/SSTS contract:

W56HZV-15-C-0099, Period of Performance ending 8 July 2022.

3. No prior contract for this STS/SSTS requirement was accomplished using full and open competition. As noted in section 10.a.1, above, all previous contracts were awarded on a sole source basis using the authority 10 U.S.C 2304(c)(1) and FAR 6.302-1.

4. No unusual patterns were revealed by the procurement history.

5. The circumstances justifying the previous J&A were based on the fact that only

BAE has the engineering expertise and experienced personnel capable of developing timely and accurate responses to issues. BAE is the developer, producer and current contractor for all technical services of the BFVS and MLRS Carrier. BAE has total system responsibility for the vehicle systems and provides overall configuration management and engineering support for subsystems. BAE developed and maintains the only existing complete collection of technical information on the various vehicles and major subsystems, including technical analysis, trade-off studies, and problem investigation reports. BAE is also responsible for obsolescence planning and the timely replacement of hardware, software, and firmware as part of configuration control of the vehicle design. The circumstances justifying the previous sole source actions have not changed.

b. Other facts: None

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.

DATE: 04-MAY-2021

BRYAN J. MCVEIGH

PROJECT MANAGER,

MOUNTED ARMORED VEHICLES (MAV)

12. 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.

BRYAN J. MCVEIGH

PROJECT MANAGER,

MOUNTED ARMORED VEHICLES (MAV)

13. Fair and Reasonable Cost Determination: The negotiated price will be determined fair and reasonable through a combination of cost analysis to thoroughly analyze each of the proposed individual cost elements, in addition to conducting a price analysis to ensure the proposed price is consistent with the Independent Government Cost Estimate (IGCE) and actual historical pricing. Since this action is a continuation of an existing contract, actual pricing history is available for evaluation purposes. Army Contracting Command –Detroit Arsenal (ACC-DTA) 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 analysis. This analysis will also be supported by a Project Manager – Mounted Armored Vehicles (PM- MAV) technical review. The PCO will request that engineers or similar personnel familiar with the end item review labor types and quantities to ensure that what is proposed is fair and reasonable. The PM MAV Engineering Technical reports 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- DTA. Certified Cost or Pricing Data will be required and will form the basis for this analysis. The results of negotiations, and the detailed 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.

SCOTT L. FOLLEN

PROCURING CONTRACTING OFFICER

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

SCOTT L. FOLLEN

PROCURING CONTRACTING OFFICER

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of up to hours for five years of System Technical Support and three years of

Sustainment System Technical Support services for Bradley Fighting Vehicle System (BFVS) and Multiple Launch Rocket System (MLRS) on an other than full and open competition basis pursuant to the authority of Title 10 United States Code 2304(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.” The total estimated value of this acquisition is $689.1 million, with one base year plus four option years for a total contract length of five years. 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 Douglas R. Bush

Senior Procurement Executive