JA-CBMSII.docx

Control No. 12-01 Justification Review Document For Other Than Full and Open Competition

Program/Equipment: Chemical Biological Mass Spectrometer Block II (CBMS II)

Authority: 10 U.S.C 2304(c)(1) and FAR 6.302-1 Amount $48,510,762

Prepared By:

Michael Levandusky

Procuring Contracting Officer:

Technical Representative:

Requirements Representative:

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

Acting Joint Project Manager NBC Contamination Avoidance:

Joint Program Executive Officer for Chemical and Biological Defense:

Legal Counsel:

Special Competition Advocate:

Justification and Approval For Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Edgewood Division ATTN: CCAP-SCE, Aberdeen Proving Ground (EA), MD 21010-5401.

2. Description of Action: Approval is requested to solicit for a new contract in support of the Joint Project Manager for Nuclear Biological Chemical Contamination (JPM NBC CA) on the basis of other than full and open competition. A Firm-Fixed-Price (FFP) indefinite delivery/indefinite quantity type contract for production and support of the Chemical Bioloigcal Mass Spectrometer, Block II (CBMS II) is contemplated. The proposed contract will include production of a maximum quantity of 181 CBMS II units and a 35-month ordering period. Fiscal Year 2012 and 2013 Office of the Secretary of Defense (OSD) Procurement funds and Other Procurement, Army (OPA) funds will be used.

3. Description of Supplies/Services:

3.1 The JPM NBC CA has a requirement to procure 181 CBMS II units. This quantity represents the final buy of CBMS II units needed to support the Stryker Nuclear Biological Chemical Reconnaissance Vehicle (NBCRV) Full Rate Production (FRP) program. The CBMS II is a Component of an End Item (COEI) for the Stryker NBCRV. The CBMS II consists of a mass spectrometer module, sample introduction module, and a soldier display unit. The mass spectrometer is capable of tandem mass spectrometry, which allows both primary-ion and daughter-ion analyses. By analyzing both the primary and daughter spectra, the detection algorithm that resides in the high level controller allows the system to detect and identify a list of chemical warfare agents while effectively screening out common battlefield interferents. The CBMS II is fully automated and self calibrating. This system is currently integrated into the Stryker NBCRV and this contract will supply CBMS II systems for installation into the vehicle and for spares.

3.2 The proposed contract will include a 56-month performance period with a 35-month ordering period. The maximum value of the proposed contract will be $48.5M with a guaranteed minimum of 26 CBMS II units. The contract will include production of a maximum of 181 CBMS II units, production management costs, and integrated logistics support.

3.2.1 Production. Estimated value $44.1M, for maximum quantity of 181 CBMS II units. To support the Stryker NBCRV full rate production (FRP) program, the proposed contract will contain a minimum quantity of 26 and a maximum quantity of 181 CBMS II units as shown in Table I and II below. It is anticipated that two delivery orders will be awarded over the course of the contract to fulfill the Stryker FRP program requirements.

Table I - Minimum Quantities

Table II - Maximum Quantities

3.2.2 Production Management Costs. Estimated value $1.4M. In order to fulfill the Styker NBCRV delivery schedule, the Government will carryout two (2) delivery orders with an estimated $700k production management cost for each delivery order.

3.2.3 Integrated Logistics Support (ILS). Estimated value $3M. In order to maintain the existing ILS program, delivery orders may be issued under this contract to update manuals, update training, and maintain compliance with DOD Information Assurance Certification and Accreditation Process (DIACAP) requirements. The cost of these efforts is estimated at a maximum of $3M and is based on similar efforts previously completed under W911SR-07-D-0010.

4. Authority Cited: 10 USC 2304(c)(1) as implemented by FAR Part 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As stated in FAR 6.302-1(a)(2)(ii), “Supplies may be deemed to be available only from the original source in the case of a 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 substantial duplication of cost to the Government that is not expected to be recovered through competition; or unacceptable delays in fulfilling the agency’s requirements.”

5.1 The CBMS II is highly specialized equipment that incorporates a state of the art mass spectrometry component, an automated calibration system, and a detection algorithm based on extensive chemical agent profiling. CBMS II is configured specifically for insertion into the Stryker NBCRV and is currently produced by Hamilton Sundstrand Corporation under contract W911SR-09-D-0002.

5.2 Hamilton Sundstrand Corporation, 2771 N. Garey Avenue, Pomona, CA 91767 is the only source that can produce and deliver the CBMS II. Use of any source, other than Hamilton Sundstrand, would result in substantial duplication of costs and unacceptable delays to the Government.

5.2.1 Duplication of Costs. The program office spent approximately $84.1M to develop the CBMS II under previous contracts efforts with Oak Ridge National Laboratory and Hamilton Sundstrand, as well as approximately $48.6M in the production of 176 CBMS II systems to support testing, integration into the Stryker NBCRV, and to provide spare systems for the NBCRV. The CBMS II has been tested in four (4) verification tests at a cost of approximately $3.0M and two (2) Stryker NBCRV operational tests at a cost of approximately $13.0M. In light of this information, JPM NBC CA estimates the duplication of costs incurred to the Government would be $25.1M in FY12-13. This estimate is based on costs experienced throughout the CBMS II program and consists of $9.4M for integration design and implementation, $5M for, qualification testing, $8M for operational testing, $2.3M for a new logistics program, and $400K for Operations and Support (O&S) if another source was selected.

5.2.2 Unacceptable Delays. The CBMS II is a mission critical component of the Stryker NBCRV and the vehicle cannot be fielded without it installed. Therefore, CBMS II delays directly impact the delivery of Stryker NBCRVs to the Warfighter and impact the ability to perform NBC Reconnaissance missions. The Stryker NBCRV requires CBMS II systems for production twelve (12) months after an Acquisition Decision Memorandum (ADM) anticipated in February 2012. Hamilton Sundstrand Corporation owns the technical data package for the CBMS II;therefore, another contractor cannot build the current CBMS II and would be required to use a new system which has not previously been integrated with the Stryker NBCRV. A new system would introduce untested technology with a different user interface. Based on discussions with the Army Evaluation Command (AEC) and PM Brigade Combat Team, JPM NBC CA would be required to conduct approximately fifteen (15) months of verification and validation testing on the new integrated system with no guarantee of equivalent performance. Delays in CBMS II delivery would, therefore, delay the delivery of this Government Furnished Equipment (GFE) to the Stryker NBCRV production contractor (15 months). Maximizing production rates could reduce the impact slightly (-3 months), but the GFE delays would cause the Stryker NBCRV deliveries to the Warfighter to be delayed a minimum of twelve (12) months.

5.3 The Government does not own the Technical Data Package (TDP) for the CBMS II. The CBMS II was developed and previously produced under a Performance Specification and the TDP was not acquired by the Government as this was the Acquisition guidance at the time of the development effort. Hamilton Sundstrand Corporation possesses the critical system knowledge and owns the proprietary data required to provide this specialized equipment. The Government and Hamilton Sundstrand team have successfully developed, tested, and produced the CBMS II over a thirteen (13) year period.

6. Efforts to Obtain Competition: On 7 April 2011, the Government issued a Request for Information (RFI) in the form of a Sources Sought Notice on the Federal Business Opportunities website to assess industry’s capability to meet the chemical and biological sensor requirements of the CBMS II and the Stryker NBCRV program. Three (3) vendors responded to the RFI. After review of all information submitted by the three (3) respondents, the Government determined that only the current CBMS II vendor Hamilton Sundstrand Corporation, could satisfy agency requirements within the program cost and schedule constraints. The results of the market research are discussed in paragraph 8, Market Research, below.

7. Actions to Increase Competition: The proposed contract will cover production of all remaining quantities (181) of CBMS II required to support the Stryker NBCRV full rate production program and no future similar acquisitions are anticipated. In July 2010, JPM NBC CA competitively awarded contracts to four (4) vendors for the next generation Chemical Biological Detection System (CBDS). A Technology Evaluation was conducted in 2QFY11 to 3QFY11 on vendor prototypes to determine the feasibility of a dual use chemical and biological detector. Any future acquisition of detection systems to support a Stryker NBCRV upgrade would use the CBDS effort as a spring board for a new competitively procured system.

8. Market Research: As stated in paragraph 6 above, in April 2011the Government issued a Request for Information (RFI) in the form of a Sources Sought Notice on the Federal Business Opportunities website to assess industry’s capability to meet the chemical and biological sensor requirements of the CBMS II and the Stryker NBCRV program. As a result, three (3) vendors responded to the RFI: (1) Hamilton Sundstrand Coproration, (2) Bruker Daltonik, and (3) FLIR Systems, Inc. The submitted information was reviewed by the JPM NBC CA,CBMS II technical experts; two systems engineers with a combined total of 26 years of experience and the project lead who has 26 years of experience. As detailed in the Market Research Report dated 21 September 2011, it was determined that any competitive solicitation for the CBMS II would require competitors other than Hamilton Sundstrand Corporation to validate their systems through extensive testing as no other vendor had sufficient test data to demonstrate that the systems could operate in a military reconnaissance vehicle and maintain the specificity and low false alarm rate mandated in Performance Specification EA-M-2323. As discussed in Section 5 above, this would result in substantial duplication of costs and unacceptable delays to the Stryker NBCRV program schedule. It was further determined that continuing the effort with Hamilton Sundstrand Corporation would be the most effective means to meet cost, schedule and performance requirements; therefore, reducing risk and duplication of efforts. Market research is also continuously executed at professional conferences, industry days, internet market searches, and consultation with subject matter experts.

9. Interested Sources: The notice required by FAR 5.201 will be published. Any response to the Federal Business Opportunities notice will be considered solely for the purpose of determining whether to conduct a competitive procurement.

10. Other Facts:

10.1 Procurement History – Hamilton Sundstrand, Pomona, CA

CBMS II Follow-on Production

W911SR-09-D-0002

Mar 09 (Ongoing) ID/IQ Contract Sole Source Authority FAR 6.302-1

CBMS II Logistics Support

W911SR-07-D-0010

Mar 07 (Ongoing) IDIQ Contract Sole Source Authority FAR 6.302-1

CBMS II Update Maintenance Technical Manual (TM)

W911SR-06-P-0015

Feb 06 (Completed) Purchase Order Sole Source Authority FAR 6.302-1

CBMS II Update Operator TM

W911SR-05-P-0082

Sep 05 (Completed) Purchase Order Sole Source Authority FAR 6.302-1

CBMS II TMs

W911SR-05-P-0058

Jul 05 (Completed) Purchase Order Sole Source Authority FAR 6.302-1

CBMS II Initial Production, Engineering and Manufacturing Development

DAAD13-03-C-0012

Nov 02 (Completed) Contract Sole Source Authority FAR 6.302-1

10.1.1 The most recent contract, W911SR-09-D-0002 with Hamilton Sundstrand Corporation for the production of CBMS II was awarded on an other than full and open competition basis under the authority of 10 U.S.C. 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 contract was intended to serve as a “bridge” contract that would permit continued production of the current CBMS II configuration and allow sufficient time for a full and open competitive acquisition to be conducted and awarded. Paragraph 7 of the referenced Justification and Approval document indicated that the Government was taking action to develop a new performance specification that would be used to support a full and open competition. The new performance specification was developed to cover an updated CBMS II that would have not only the current chemical detection capability but an added biological detection capability as well. Using this performance specification, solicitation W911SR-08-R-0035 was issued on 21 November 2008 and four (4) proposals were received. During the evaluation phase of the source selection, the Stryker NBCRV program was impacted by at least a one year delay in the scheduled date for FRP Decision. Additionally, funding for the CBMS II program was not provided by the Stryker NBCRV program which had a direct impact on the bona fide need for the CBMS II systems solicited under solicitation W911SR-08-R-0035. In light of the delays associated with the Stryker NBCRV program, the CBMS II solicitation was cancelled at the request of the JPM NBC CA. The biological detection capability sought for the CBMS II system under W911SR-08-R-0035 was restructured and became part of a new solicitation under the Chemical Biological Defense System (CBDS). Additionally, the delays in the Stryker NBCRV’s FRP decision have resulted in a more critical schedule window for the production of CBMS IIs following the current extended low rate initial production effort.

10.2 Acquisition Data Availability: The CBMS II is a component of end item (COEI) for the Stryker NBCRV. Hamilton Sundstrand Corporation is the only developer. A Technical Data Package was developed by Hamilton Sundstrand. The Technical Data Package is owned by Hamilton Sundstrand. A Government Performance Specification is currently available.

10.3 Unusual and Compelling Urgency: Not Applicable

10.4 Subcontracting Competition: Due to the anticipated dollar value of this requirement, the offeror will be required to submit an individual subcontracting plan and address subcontracting competition in its proposal. Prior to award, the Subcontracting Plan will be reviewed and approved by the Government. The appropriate subcontracting clauses 52.244-5, Competition in Subcontracting and 52.244-6, Subcontracts for Commercial Items, will be included in the contract.

11. Technical Certification: I certify the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Michael Levandusky Date_____________________

CBMS II System Engineer Signature: _________________

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

LTC Vincent F. Johnston Date_____________________

Joint Product Manager for Reconnaissance and Platform Integration Signature: _________________

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. In accordance with FAR 15.403-4 the estimated value of this acquisition meets the threshold for submission of certified cost or pricing data and the contractor will be required to submit such data as part of its proposal. Cost and technical analysis will be used to evaluate the reasonabless of individual cost elements, while price analysis (comparison of proposed prices to historical price paid and to the Government estimate) will be used to verify that the overall price offered is fair and reasonable.

Susan Hanle Date_____________________

Procuring Contracting Officer Signature: _________________

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

Susan Hanle Date_____________________

Procuring Contracting Officer Signature: _________________

APPROVAL

Based on the foregoing justification, I hereby approve the procurement for the production and integrated logistics support of CBMS II systems manufactured by Hamilton Sundstrand Corporation on an other than full and open competition basis pursuant to the authority of 10 U.S.C 2304(c)(1), as implemented by FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the approval date, this Justification and Approval shall be returned to the Special Competition Advocate for revalidation. Additionally, if any changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action occur at any time, the Procuring Contracting Officer (PCO) shall document these changes in a memorandum and obtain review/concurrence from the Special Competition Advocate.

Principal Assistant Responsible for Contracting