Redacted-JA-ISRC.doc

CMO Control #: 2012-100 PROGRAM/ITEM: Technical, Engineering, Program Management and Integration Services

CONTROL NO: 12-0004

Department of the Army

Justification and Approval for Other than Full and Open Competition

1. CONTRACTING ACTIVITY: Army Contracting Command – Warren, (ACC-WRN) (ANAD).

2. DESCRIPTION OF ACTION: This is a new Indefinite Delivery/Indefinite Quantity (IDIQ), Firm Fixed Price contract with Redstone Defense Systems (RDS), 631 Discovery Drive, NW, Huntsville, Alabama 35806 for Technical, Engineering, Program Management and Integration Support Services for Anniston Army Depot (ANAD), Anniston, Alabama. This award is projected for FY12 and will include a Base Period of three years and one, one year option. The estimated value for this action is $80,000,000 which includes a base period for $60,000,000 and an option year for $20,000,000. Army Working Capital funds or other type funding, funded by customers as requirements materialize will be used for this acquisition.

3. DESCRIPTION OF SUPPLIES/SERVICES: The proposed contract services will be used in the overhaul/maintenance, remanufacturing, manufacturing, and technical inserts for complete combat vehicles, artillery, small arms, combat bridging, and specialized components for like or similar weapon platforms. This contract will augment existing resources with experience and capability exceeding in-house technical, engineering, program management, and integration capabilities. This will also accomplish four key objectives: (1) Expand ANAD capabilities to support growing customer requirements related to the ANAD mission and functions to support the Warfighter; (2) Establish capabilities at ANAD to execute projects ranging from design and analysis up through production and including all related integrated logistics service (ILS) activities; (3) Provide the program management community with a lower-cost alternative to existing sole contractor support; and (4) Provide a foundation for ANAD to mature and assimilate new capabilities into the ANAD enterprise to strengthen and sustain its core skills and capabilities in accordance with statutory mandate(s).

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(5), Authorized or required by statute as authorized by FAR 6.302-5(b)(4).

5. REASONS FOR AUTHORITY CITED: As described in FAR 6.302-5, required by statute allows procurement in support of Small Business development and in accordance with FAR Subpart 19-803(c). The procuring activity will issue the purchase order directly to the 8(a) firm. Where agencies independently, or through the self marketing efforts of an 8(a) firm, identify a requirement for the 8(a) Program, they may offer on behalf of a specific 8(a) firm. RDS self-marketed the concept of an Integrated Systems Response Center (ISRC) to ANAD through the 8(a) Program. RDS, an Alaskan Native corporation/Tribally Owned Firm is teaming with Science and Engineering Services, Inc. (SESI) an Asian-Pacific Owned Small Business in a partnership through an established Joint Venture. Because of their self-marketing of this unique concept and because RDS is in the 8a program, ANAD has not sought additional sources.

The ISRC Statement of Work (SOW) is broadly defined and includes:

· Project Management

· Engineering, Systems Engineering and Process Engineering Support;

· Modeling, Simulation, Stimulation, and Analysis Support

· Prototyping, Preproduction, Production and Fabrication and Manufacturing Support; System Design Documentation and Technical Data Support

· Reliability, Maintainability and Availability Support

· System Safety Engineering Support

· Configuration Management Support; Quality Assurance Support; Measurement Equipment, Facilities and Instrumentation Support

· Logistics Support; Technical Training Support; and ILS The Alaska Native Corporation (ANC) majority Joint Venture RDS is uniquely qualified to provide supplies and services to the ANAD ISRC requirement. RDS already has these skills in place and are using them in another joint venture as the Aviation and Missile Research Development and Engineering Center (AMRDEC) Prototype Integration Facility (PIF) Contractor.

The wide range of competencies required to enable the ISRC is possible for some large businesses, however quite rare, if not nonexistent, for a small business. JV RDS, with an ANC majority partner, has demonstrated not only each of these competencies but have exercised these competencies as the Aviation and Missile Research Development and Engineering Center (AMRDEC) Prototype Integration Facility (PIF) Contractor.

6. EFFORTS TO OBTAIN COMPETITION: Because of their self-marketing of this unique concept and because RDS is in the 8a program, ANAD has not sought additional sources, IAW FAR 19.804-2 (a) (10) (i) and FAR 19.803(c). In accordance with FAR 5.202(a) (4), entitled Exceptions, this proposed contract action will not be synopsized.

7. ACTIONS TAKEN TO INCREASE COMPETITION: To date, ANAD has not considered seeking additional competition in the planning of this procurement in accordance with FAR 19.803(c). This was self-marketed and will be offered on behalf of a specific 8(a) firm.

8. MARKET RESEARCH: Because RDS is in the 8(a) program, no additional market research has been conducted beyond that to determine cost. This requirement will not be synopsized in the FedBizOpps.

9. INTERESTED SOURCES: All notices required by FAR 5.201 will be published and any proposals received will be considered for future procurements.

10. OTHER FACTORS: Procurement History:

In 2008, an 8(a) Native American Indian entity working with a major sub-contractor provided ANAD with an unsolicited proposal to augment existing resources with experience and capability exceeding ANAD's in-house technical, engineering, program management, and integration capabilities.

Based upon the unsolicited proposal, ANAD created a business plan to develop a unique approach for implementation of an Integrated System Response Center (ISRC) with an IDIQ Contract.

In March 2009, the acquisition process was initiated as an IDIQ Contract to support the ISRC and ANAD's Business Plan. A Solicitation was issued and a proposal was received from the 8(a) Native American Indian Corporation and its major sub-contractor. In September 2011, during the acquisition process, the prime contractor withdrew their proposal due to stated corporate financial issues, but the requirement for subject services outlined in the statement of work continued to exist at ANAD.

In October 2011, ACC-WRN (ANAD) was contacted by Redstone Defense Systems (RDS), an approved Small Business Administration Joint Venture entity created between Yulista Aviation, an 8(a) Alaskan Native Corporation and SESI. RDS provided ANAD with a self-marketed proposal to continue the ISRC support initiative. After discussion between the Director of Contracting, the ANAD Commander, Legal Counsel, and other ANAD Senior Management, a collective decision was made to initiate a new sole source procurement with RDS. The Small Business Administration approved a modification to add the ANAD ISRC procurement action to its existing Joint Venture, RDS.

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.

NAME: MICHAEL C. BURKE

Date:

3 May 2012

TITLE: Deputy to the Commander, ANAD

SIGNATURE:

//Signed/MCB

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in this justification are accurate and complete to the best of my knowledge and belief.

Name: MICHAEL C. BURKE

Signature:

//Signed/MCB

Title:

Deputy to the Commander, ANAD

3 May 2012

13. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated cost 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 (a)(1).

NAME: Yvonne S. Land

DATE: 3 May 2012 TITLE: Contracting Officer, ANAD

//Signed/YSL

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

NAME: Yvonne S. Land

DATE: 3 May 2012

TITLE: Contracting Officer

//Signed/YSL

CONCURRENCE:

//Signed/JHD

Date: 3 May 2012

JOSEPH H. DOYLE

Legal Counsel

//Signed/DJB

Date: 3 May 2012

DAVID J. BUNT

Director of Contracting Army Contracting Command – Warren (ANAD)

//Signed//WMR

11 May 2012WILLIAM M. ROBARE, LTC(P)

Chief, Depot/Arsenal Contracting Division Army Contracting Command – Warren

//signed//

Date: 11 May 2012

LA RUTH SHEPHERD

Competition Advocate

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Date: 12 May 2012

ARTHUR SIIRILA

Director, Combat Support Contracting

APPROVAL

Based on the foregoing justification, and pursuant to Delegation of Authority TCC 10-04, I hereby approve the procurement of Technical, Engineering, Program Management and Integration Support Services for Anniston Army Depot from RDS, at a total estimated value of $80,000,000 on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(5) as implemented by FAR 6.302-5(b)(4), subject to availability of funds, and provided that the services and property provided for has otherwise been authorized for acquisition.

DATE:

22 May 12 Signature:

HARRY P. HALLOCK

Principal Assistant Responsible for Contracting (PARC)