JA-D-17-147;_ANVIS_POP_Extension;_Redacted.pdf

JA-D-17-147

Program/Equipment: AN/AVS-6

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: This Justification and Approval is requested to execute modifications to extend the ordering period and the Period of Performance (POP) of the AN/AVS6(V)3, Firm-Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract W91CRB-12-D-0015 with Harris Corporation, Roanoke, VA and IDIQ contract W91CRB-12-D-0014, with L-3 Communications, Tempe, AZ for AN/AVS-6(V)3 and associated spare parts (e.g. image intensifier tubes).

Authority: 10 U.S.C. 2304(c)(1) and FAR 6.302-1(a)(2)(ii)

Amount: $12,800,000

Prepared by: Kristin L. Hines DSN: 298-2572 Purchasing Agent Date: 12 Dec 2016 Email: kristin.l.hines.civ@mail.mil

Contracting Officer: Samantha Shultz DSN: 298-3820 Contracting Officer Date: 14 Dec 2016 Email: samantha.l.shultz2.civ@mail.mil

Technical: Nathan Heslink APM Legacy Date: 12 Dec 2016 Email:

Requirements: Nathan Heslink APM Legacy Date: 12 Dec 2016 Email:

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

Program Manager:

Typed Name:

DSN:

Signature:

Legal Counsel:

Typed Name:

DSN:

Signature:

Special Advocate for Competition:

Typed Name:

DSN:

Signature:

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command

Aberdeen Proving Ground (ACC- APG) Aberdeen Proving Ground, MD 21005

2. Description of Action: This Justification and Approval is requested to execute modifications to extend the ordering period and the Period of Performance (POP) of the AN/AVS6(V)3, Firm-Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract W91CRB-12-D-0015 with Harris Corporation, Roanoke, VA and IDIQ contract W91CRB-12-D-0014, with L-3 Communications, Tempe, AZ for AN/AVS-6(V)3 and associated spare parts (e.g. image intensifier tubes). These modifications will extend the ordering period and the POP of both contracts by eighteen (18) months, from 04 September 2017 to 04 March 2019 with no increase to the maximum quantities or contract ceiling of either contract. This effort is necessary to fulfill the sustainment requirement for AN/AVS6(V)3 until the follow-on effort can be completed and awarded by the Defense Logistics Agency (DLA). The effort will also allow the customer to meet the Army mission’s requirement by extending the POP and allowing for additional time to continue receiving the required systems without exceeding the maximum ceilings established in the base contract award.

These extensions will ensure a competitive environment is maintained and contract vehicles are in place to procure end items and all associated spare parts. These vehicles will fulfill requirements until the sustainment contracts can be awarded.

This modification will not change the original intent or overall language of the current contracts previously referenced, to include, but not limited to the Statement of Work, Product Description, or Contract Data Requirements Lines (CDRLs). Further, this action will not increase the overall contract ceilings of $217,500,000.00 under W91CRB- 12-D-0014 or $217,500,000.00 under W91CRB-12-D-0015. A bi-lateral modification will be issued in accordance with FAR 43. 103(a)(3).

3. Description of Supplies/Services: The AN/AVS-6(V)3 is a hand-held or helmet-mounted passive binocular that provides the capability for pilots to fly at night. The binocular is powered by a Low Profile Power Pack (LPPP) that attaches to the back of the helmet and/or an on-board aircraft power converter, or a battery operated Clip on Power Supply (COPS). The system amplifies ambient light from sources such as the moon, stars and sky glow so the viewed scene becomes clearly visible to the operator.

The AN/AVS-6(V)3 can be used on the HGU-56/P helmet. The HGU-56/P helmet requires that the Helmet Mount be used. The AN/AVS-6(V)3 is used with the HGU-56/P helmet and the AH-64 Apache Integrated Helmet and Display Sighting System (IHADDS). The binocular can be adjusted for the distance between the operator’s eyes, vertical distance, tilt, eye relief, diopter setting and focus. In addition, the binocular may be flipped up and stowed away from the eyes in an emergency. Additional versions of these systems will be altered to meet export requirements and will be delivered for the purpose of Foreign Military Sales. Foreign Military items are required to meet all of the requirements of Military Performance Specifications and Quality Standards with limited exceptions as outlined in the Statement of Work (SOW).

Period of Performance: 04 September 2017 to 04 March 2019 Total Value:

4. Authority Cited: 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.

5. Reason for Authority Cited: These extensions of the ordering period and POP are required in order to provide the continual need of the AN/AVS-6(V)3. The AN/AVS- 6(V)3’s operational effectiveness and operational suitability are essential to successful Warfighter mission completion. The AN/AVS-6(V)3 is used throughout the Army by rotary-wing and fixed-wing pilots. The AN/AVS-6(V)3 provides an increased capability to visualize terrain features, obstacles, and other objects to allow the aviator to maneuver nap-of-the-earth flights, during reduced visibility, no light, and night conditions. The follow-on contract is for sustainment and will be a completely new contract as the customer continues to update as newer technology is developed. It will provide a contract vehicle to fulfill FMS requirements as well as spare parts. CECOM will administer the follow-on contract.

There are currently two qualified sources that possess the requisite industrial capabilities (skills, processes, facilities/equipment, and technologies) to research, develop, manufacture, test, and evaluate image intensification tubes and systems. The two prime contractors (Harris & L-3) have developed and produced AN/AVS-6(V)3 systems since 2000. MX-10160A, MX-10160C, and MX-12389 I2 tubes are considered defense unique technology due to the higher quality and performance requirements.

The combination of make the capabilities at Harris and L-3 unique.

The U.S. is the only known country to produce tubes with which more than doubles tube lifetime .

The consequence of bringing in a foreign competitor would cost the U.S.

Army a minimum of three years and there is no estimated potential cost savings since the cost of qualification alone would offset any difference in system cost. The U.S.

Army has a mission requirement to have all AN/AVS-6(V)3 procurements completed no later than FY19. There are very few reliable companies which can produce the tubes.

Foreign companies who could potentially compete would not be able to compete prior to the expiration of the eighteen month extension due to the test time required to qualify a new goggle design and production facility.

6. Efforts to Obtain Competition: The original solicitation (W91CRB-12-R-0002) was issued under full and open competition on 15 February 2012 and two offers were received. Award of two ID/IQ contracts were made on 04 September 2012 and all fair opportunities have been competed among both offerors.

7. Actions to Increase Competition: A separate breakout of the components for competitive solicitation is not feasible for this procurement. The results of market research concluded that Image Intensification Tubes contain components that are only manufactured by two vendors, L-3 and Harris. The results are described in Paragraph 8 below. The systems and associated spare parts are similar to those offered by several potential competitors. However, only L3 and Harris have passed the qualification testing, which is required to meet the Government’s classification and specification requirements for these items.

8. Market Research: There are very few reliable companies outside of L-3 and Harris who can provide the quality of image intensifiers that the DoD demands, and there are zero who can become a qualified manufacturer in the next eighteen months when the Army needs to complete its AN/AVS-6 (V)3 procurement.

Efforts to Obtain Competition: The original solicitation (W91CRB-12-R-0002) was issued on 15 February 2012 and two offers were received. Award of two ID/IQ contracts were made on 4 September 2012 and all fair opportunities have been competed among both offerers. Competition will decrease the prices the Government will be required to pay for product.

Actions to increase Competition: This is a one-time requirement and no future acquisitions are anticipated for the AN/AVS-6(V)3.

Market Research: The Communications-Electronics Command (CECOM) / Communications-Electronics Research, Development and Engineering Center (CERDEC) Industrial Base Office (IBO), in conjunction with the Defense Contract Management Agency Industrial Analysis Center (DCMA-IAC) completed an Image Intensifier Tube (I2T) Industrial Capabilities Assessment in May 2016. DCMA and Project Manager (PM) Soldier Sensors and Lasers (SSL) agreed to the following objectives for this study:

PEO-Soldier requested that CECOM/CERDEC and DCMA Industrial Analysis Center (IAC) provide support on an I2T Fragility and Criticality (FaC) assessment. The FaC assessment focused on the I2T critical subcomponents used in three products listed below.

Table 1: ICA Product Summary

ICA Product Summary I2Tubes

Size System Program Name Supplier

The FaC assessment risk mitigation recommended an updated Industrial Capability Assessment (ICA) be performed on the critical subcomponents supporting the I2 tube assemblies. DCMA previously accomplished an I2T ICA for Product Manager Soldier Maneuver Sensors in September 2010. That assessment predicted that the decreased DoD demand for I2 would have a detrimental impact on the I2T industrial base.

Consequently, PEO-Soldier tasked DCMA IAC and the CECOM/CERDEC IBO to collaborate and perform an updated ICA on the IB critical subcomponents supporting I2T assemblies.

A survey was developed and sent to the identified contractor population to collect industrial capability, capacity, business base, and financial information. The assessment team performed site visits at selected locations to validate the data. In performing this assessment, DCMA leveraged existing data sources and analytics. The DCMA Financial Capability Group (FCG) conducted financial assessments on select companies. All data collected, as well as DCMA analytical products, are protected from public disclosure in accordance with Federal data protection laws.

Despite changes in the market, L-3 and Harris are the only two competitors who can complete the production of the AN/AVS-6(V)3 by FY19 without spending excessive money or time to receive government qualification.

9. Interested Sources: Two companies are qualified prime I2T manufacturers. Both participated in the I2T ICA study and permitted site visits of their facilities.

10. Other Facts:

a. Procurement History:

(1) Contract numbers and dates of the last several awards. The AN/AVS-

6(V)3 contract was awarded on 4 September 2012. The contract was awarded to Harris and L-3.

Contract Number

Award Date

Contractor Contract Ceiling

Awarded Delivery Orders

W91CRB-

12-D-0014

September

L-3 $217,500,000.00

W91CRB-

12-D-0015

September

Harris Corp. $217,500,000.00

(2) Competitive status of these actions. Full and Open competition

(3) Authority previously used for less than full and open competition – N/A

(4) If a justification was prepared to support the prior procurement, briefly describe the Actions to Increase Competition mentioned in that prior justification and explain the results thereof.- N/A

(5) If any prior award was accomplished by full and open competition, explain the changed circumstances in detail- N/A

(6) Explain any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys- N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes. - N/A

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.

Typed Name: Nathan Heslink Date: 3 Jan 2017 Title: APM Legacy Signature:

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.

Typed Name: Nathan Heslink Date: 3 Jan 2017 Title: APM Legacy Signature:

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.

Typed Name: Samantha Shultz Date: 3 Jan 2017 Title: Contracting Officer Signature:

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

Typed Name: Samantha Shultz Date: 3 Jan 2017 Title: Contracting Officer Signature:

Approval

Based on the foregoing justification, I hereby approve the procurement of AN/AVS- 6(V)3 on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Date:

Special Advocate for Competition Signature: