Redacted_CMO-13-067.pdf

PROGRAM/ITEM: M113 FOV VEHICLE REFURBISHMENT PROGRAM

CONTROL NO: 13-0004

CMO Control # 13-067

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL FOR OTHER

THAN FULL AND OPEN COMPETITION

1. CONTRACTING AGENCY: Army Contracting Command – Warren (ACC-WRN)

(ANAD)

2. DESCRIPTION OF ACTION: Approval is sought to modify Firm-Fixed Price (FFP) Contract W911KF-12-D-0001 to BAE Systems Land and Armaments (BAE). This modification is for Supply Chain Management to support the refurbishment of M113 Family of Vehicles (FOV) at the Anniston Army Depot (ANAD). ANAD has received funding for an additional 181 M113 FOV vehicles to be overhauled during the contract period of performance, 11 January 2011 through 31 July 2016. This action will increase the contract ceiling value from $32,757,963 to $80,757,963. All other contract requirements will remain unchanged.

a. This new Justification and Approval (J&A) is required in the amount of $48M to support new delivery orders and commence work immediately to meet customer (PM-M113) schedules.

b. The period of performance, inclusive of all base and option periods, is 11 January 2011 through 31 July 2016, using Army Working Capital Funds.

3. DESCRIPTION OF SUPPLIES/SERVICES: BAE shall provide Supply Chain Management for the M113 FOV parts to be used in overhaul/reset, kit mandatory replacement parts and perform joint technical inspections (as needed). ANAD will provide all labor required to perform Overhaul/Reset of these vehicles. The additional 181 M113 vehicle variants funded for Overhaul/Reset in FY13 – FY14 are highlighted below:

Program QTY Completed Funded M113A3 91 X M1064A3 10 X M1064A3 40 X M1068A3 40 X

TOTAL: 181

In order to meet funded program schedules and meet long lead item requirements, Delivery Orders for the additional requirements must be awarded no later than 31 January 2013.

Overhaul/Reset and Fully Mission Capable (FMC) workload is defined as repairing, overhauling, and bringing to an issuable condition to sustain readiness for Army (and sister service) vehicles and Foreign Military Sales (FMS). Support performed by BAE is identified in the Scope of Work (SOW) and the following documents:

DEPOT/NATIONAL MAINTENANCE WORK REQUIREMENTS (DMWR/NMWR)

M113 FOV

DMWR9-2350-261 M113A2 FOV & Vehicle FIR

DMWR9-2350-261 M113A2 FOV

DMWR9-2350-277 M113A3 FOV

DMWR9-2520-254-35 CTX100 Transmission DMWR9-2520-272 CTX200 Transmission DMWR9-2815-205 CE6V53 & 6V53T Engine

DMWR9-2350-366 M113A3/BMP-2 & M113A3/MBT

NMWR9-2520-574-35 Retrofit Instructions NMWR9-4140-247-35 Vane Axial Fan & Right Angle Drive NMWR9-2920-257-35 200 Amp Generator NMWR9-2510-250-35 Commander Cupola Assembly TM9-2350-261-24P Repair Parts and Special Tools Manual

(RPSTL)

TM9-2350-366-24P-1 & 2 RPSTL M113A3/BMP-2 & M113A3/MBT

TM9-2350-277-24P Repair Parts and Special Tools Manual

(RPSTL)

TM-2350-277-20-1 thru -6 Field Maintenance Repair Manuals TM-2350-277-10 Operators Manual

4. AUTHORITY CITED: The statutory authority permitting Other Than Full and Open Competition for this action is 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302- 1(a)(2)(ii)(B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements….supplies may be deemed to be available only from the original source in the case of follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.”

5. REASONS FOR AUTHORITY CITED:

(a) As described in FAR 6.302-1, procurement by other than full and open competition is necessary because BAE acquired the Original Equipment Manufacturer (OEM), United Defense, Limited Partnership (UDLP), and is now the developer, production contractor, and the configuration manager of the M113 FOV. Parts availability is a critical part of this overhaul/reset. BAE has been responsible for material acquisition and developed various percentage bills of materials for the M113 FOV requirements. This information is proprietary to BAE and has not been provided to the Government as a deliverable under any contract. BAE, as the OEM for the M113 FOV, maintains an established vendor base for current, similar programs. Therefore, to fragment the purchase of these parts to many different companies would not be feasible, as other companies would not have the current configuration. BAE has acquired over 40 years of experience, knowledge, and background on the design and fabrication of these vehicles. No other source is as intimately acquainted with the design details of these Combat Vehicles.

(b) If the contract is not modified to increase the ceiling as quickly as possible, the ability for ANAD to procure the requisite parts for the depot level maintenance of the M113 FOVs will be significantly degraded. For instance, the parts for the overhaul of ninety-one M113A3 vehicles must be ordered by 1 February 2013 to ensure they are received in a timely manner to allow a seamless integration into the depot’s production line. A sole source award to BAE for part or all of the support services is the only possible means of accomplishing this workload. Other companies would have to develop a bill of material in order to provide the required parts for this program. This would delay the delivery of parts and the required delivery schedule. This would be an unacceptable delay in receiving the required parts for these vehicles to be overhauled/reset, as established by PM-M113. The first 11 vehicles must be completed and ready for shipment by 30 April 2013 and 11 to 15 per month thereafter.

(c) An approval of this J&A does not conflict with paragraph 4.j. in Department of the Army (DA) memorandum (Subject: Risk Mitigation in the Face of Fiscal Uncertainty) dated 16 January 2013 signed by the Secretary of the Army and the Chief of Staff of the Army. The aforementioned paragraph in the DA memorandum directs, "Army Materiel Command shall plan to cancel 3rd and 4th quarter depot maintenance and reset orders and contracts that do not directly support units deployed to a theater or entering the Army Force Generation- available pool. While plans shall be made, specific action shall not be taken until 15 February 2013." ANAD has received funding for the programs listed in Paragraph 3 above and those programs will not be affected by this memorandum; only projected programs not funded will be affected.

6. EFFORTS TO OBTAIN COMPETITION: ANAD did not consider seeking additional competition in the planning of this procurement. BAE has been responsible for material acquisition and has developed various percentage bills of materials for the M113 FOV requirements. This information is proprietary to BAE and has not been provided to the Government as a deliverable under any contract.

7. ACTIONS TAKEN TO INCREASE COMPETITION: New vehicle platforms are currently planned to replace the M113 FOV in the U.S. Army inventory. No other contractors will be able to develop the capabilities to meet the Government SOW and/or delivery requirements. BAE will not sell the material acquisition and percentage bills of materials to a third party.

8. MARKET RESEARCH: On-line research was conducted for numerous commodities.

Market research was conducted by the Contracting Officer and Contract Specialist on 10 September 2012. Market research and consultation with the PM-M113 indicates that there is no known Bill of Materials (BOMs) for any variants within the M113 FOV. BAE will not sell the material acquisition and percentage bills of materials to any third party. It was anticipated that no other contractors would be able to develop the capabilities to meet the Governments needs. A sources sought synopsis for future procurements of this type was published in FedBizOpps. The sources sought did not result in any written expression of interest.

9. INTERESTED SOURCES: To date, no other sources have written to express any interest.

10. OTHER FACTS:

(a) Procurement History:

(1) Contract Number W911KF-04-D-0001, dated 26 May 2004.

Contract was Sole Sourced to BAE.

Authority Cited: 10 U.S.C. 2304(c)(1), as, implement by FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(2) Contract Number W911KF-12-D-0001 dated 14 March 2012, which definitized letter contract W911KF-11-C-0003 dated 31 January 2011.

Contract was Sole Sourced to BAE.

Authority Cited: 10 U.S.C. 2304(c)(1), as, implement by FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

The original J&A (CMO #11-070) valued at $32,757,963 was approved by Harry P. Hallock, Principal Assistant Responsible for Contracting on 5 January 2011 and a firm fixed price requirements contract with a $32,757,963 Not-To-Exceed ceiling was awarded to BAE to purchase these sole source parts.

(b) Acquisition Data Availability: BAE will not sell the material acquisition and percentage bills of materials to any third party. Another firm would have to be willing to make the financial investment necessary to become technically self sufficient on the M113 FOV. No other contractors have provided any written expression of interest.

(c) Subcontracting Competition: BAE was required to submit a subcontracting plan with its proposal to ensure competition was obtained. The Subcontracting Plan was approved by the Small Business Administration. A revised Subcontracting Plan will be approved prior to award of the modification.

11. TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which is included in the Justification are accurate and complete to the best of my knowledge and belief.

NAME: Chuck Gunnels Date: 24 Jan 13

TITLE: Deputy, Director of Production Signature: //Signed/CG Management

12. REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which is included in the Justification are accurate and complete to the best of my knowledge and belief.

NAME: Chuck Gunnels Date: 24 Jan 13

TITLE: Deputy, Director of Production Signature: //Signed/CG Management

13. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be based on results of cost and price analysis.

Certified cost or price data will be required in accordance with Federal Acquisition Regulation 15.403-4.

NAME: Elizabeth H. Howard Date: 24 Jan 13

TITLE: Contracting Officer Signature: //Signed/EHH

14. PROCURING CONTRACTING OFFICER CERTIFICATION: I certify that this Justification is accurate and complete to the best of my knowledge and belief.

NAME: Elizabeth H. Howard Date: 24 Jan 13

TITLE: Contracting Officer Signature: //Signed/EHH

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the M113 FOV Supply Chain Management for the Overhaul/Reset from BAE Systems Land and Armaments on an other than full and open competition basis pursuant to Delegation of Authority 10-04, the authority of Title 10 United States Code 2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This effort is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. Total value for this acquisition is estimated at $48,000,000.

Date: 01 Feb 13 Signature:

HARRY P. HALLOCK

Principal Assistant Responsible for Contracting