Self-Propelled Howitzer System FY24 Production

The Army Contracting Command-Detroit Arsenal awarded a sole source Requirements contract to BAE Systems.  Initial award is under undefinitized terms and conditions to immediatley begin procurement of material and labor to support the production of 40 each M109A7 Self Propelled Howitzers (NSN: 2350-01-577-0830); 40 each M992A3 Carrier Ammunition, Tracked Vehicles (NSN: 2350-01-575-0951); and associated support which includes: Total Package Fielding (TPF) kits, follow on production testing, and refurbishment efforts. BAE Systems Land & Armaments L.P. is the Original Equipment Manufacturer.  The subsequent delivery order that was issued turns on Cost No Fee Contract Line (CLIN) to fund the effort.  It is anticipated that once the contract is definitively negotiated these Cost Only CLINs will transition into Fixed Price Incentive (vehicles, Follow on Production Test), Firm Fixed price (TPF kits), Cost (Refurbishment) and/or Cost Plus Fixed Fee (Cab and Gun-mount refurbishment support from a subcontractor) types. Under the current terms of the contract, performance is one year.  It is anticipated that an additional four years will be added to satisfy a five year requirement of the customer, Project Manager Self-Propelled Howitzer Systems. This action was not being competed, in accordance with the statutory authority permitting other than full and open competition, 10 United States Code (U.S.C.) 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, the use of this authority for other than full and open competition is supported by FAR 6.302-1(a)(2)(ii)(A), which provides that 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.
All responsible sources may submit a capability statement, proposal or quotation, directly to the sited original equipment manufacturer for subcontracting opportunities.

Awarded contract W912CH24D0016 to BAE SYSTEMS LAND & ARMAMENTS L.P. for 579309813.00 on 2024-07-03.