SOLICITATION NOTICE
A -- R&D relating to integration and testing of component technologies for the enhancement of vehicles with TDP exclusive to GDLS combat and tactical vehicles, as well as actual integration, testing, trouble shooting, analysis, and prototy
- Notice Date
- 6/22/2017
- Notice Type
- Justification and Approval (J&A)
- NAICS
- 541712
— Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Contracting Office
- Department of the Army, Army Contracting Command, ACC - WRN (W56HZV)(DTA), 6501 EAST 11 MILE ROAD, Warren, Michigan, 48397-5000, United States
- ZIP Code
- 48397-5000
- Archive Date
- 7/13/2017
- Point of Contact
- David M. Patti, Phone: 5862828016
- E-Mail Address
-
david.m.patti4.civ@mail.mil
(david.m.patti4.civ@mail.mil)
- Small Business Set-Aside
- N/A
- Award Number
- W56HZV-17-C-0142
- Award Date
- 6/13/2017
- Description
- DEPARTMENT OF THE ARMY JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION 1. Contracting Activity: The United States Army Contracting Command - Warren (ACC-WRN) is the contracting activity for this action. 2. Description of Action: ACC-WRN requests approval to award a new sole source, Cost-Plus-Fixed-Fee, Level-of-Effort and Completion (CPFF-LOE/C) Work Directive (WD) type contract to General Dynamics Land Systems (GDLS) of Sterling Heights, MI, for research and development relating to integration and testing of component technologies for the enhancement of vehicles with Technical Data Packages (TDP) exclusive to GDLS combat and tactical vehicles, as well as actual integration, testing, trouble shooting, analysis, and prototyping of components through / for demonstration and proof of concept. This five year contract will be funded with Fiscal Year (FY) 2016-2021 Research, Development, Test, and Evaluation (RDT&E) funds, subject to availability. 3. Description of Supplies/Services: The proposed CPFF-LOE/C WD type contract action provides for research and development relating to integration and testing of component technologies for the enhancement of vehicles with TDP exclusive to GDLS combat and tactical vehicles, as well as actual integration, testing, trouble shooting, analysis, and prototyping of components through / for demonstration and proof of concept. Performance will be driven through individually issued WDs. Through these WD's, the Government will receive reports of the analysis performed by GDLS. The GDLS list of vehicles (hereinafter "Family of Vehicles (FoV)") include the following: 1. Abrams Main Battle Tank family: M1 M1A1 M1A2 M1A2 System Enhancement Package (SEP) 2. Stryker family: M1126 Infantry Carrier Vehicle (ICV) M1127 Reconnaissance Vehicle (RV) M1128 Mobile Gun System (MGS) M1129 Mortar Carrier (MC) M1130 Commander's Vehicle (CV) M1131 Fire Support Vehicle (FSV) M1132 Engineer Squad Vehicle (ESV) M1133 Medical Evacuation Vehicle (MEV) M1134 Anti-Tank Guided Missile Vehicle (ATGM) M1135 Nuclear, Biological, Chemical, Reconnaissance Vehicle (NBC RV) Double Bottom Hull Variants (M1126 and M1129-M1134) Experimental Stryker (i.e., Self-Propelled Howitzer (SPH), Tracked Armored Multi-Purpose Vehicle (AMPV), and Launched Assault Bridge) 3. Light Armored Vehicles (LAV) family: LAV-25 LAV-25A1 LAV-25A2 LAV-25A2 LAV-III LAV-AT (Anti-Tank) LAV-M (Mortar) LAV-R (Recovery) LAV-AD (Air Defense) LAV-C2 (Command & Control) LAV-LOG (Logistics) The total period of performance of this effort is not to exceed 60 months, and includes a base and four ordering periods. The total estimated dollar value is $9.7M across 52,100 labor hours of effort, material, and travel. The Independent Government Cost Estimate was completed by TARDEC based on previous contracts with GDLS. The total estimated cost for this contract effort is depicted below: 4. Authority Cited: Authority Cited: The statutory authority permitting Other Than Full and Open Competition for this action is Title 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 FAR 6.302-1(a)(2)(iii)(A) states that "For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in-- (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition." 5. Reason for Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 is considered applicable for this action because only GDLS possesses the unique combination of technical data, experience, personnel, and facilities, necessary to meet the Army's requirements without a substantial duplication of cost. GDLS is the prime developer, Original Equipment Manufacturer (OEM), and configuration manager of the GDLS combat and tactical vehicles. To successfully configure new technologies on the GDLS combat and tactical vehicle platforms, it is necessary to perform research and development efforts relating to integration and testing, and then successfully complete integration and testing of the new component technologies, Only GDLS has the capability to do so. As the OEM, GDLS retains the proprietary data rights and is the only vendor with rights and access to the platform Technical Data Package (TDP's) to perform research and development relating to integration and testing, of component technologies for the enhancement of vehicles with TDP exclusive to GDLS combat and tactical vehicles as well as actual integration and testing, of the technologies for the enhancement of the GDLS combat and tactical FoV. No other sources have access to the proprietary data needed to configure manage the new component technologies developed to enhance the vehicles with TDP exclusive to GDLS combat and tactical vehicles. As demonstrated below, both procuring the TDPs and reverse engineering of the GDLS vehicle platforms are cost prohibitive. The costs associated with procurement of the TDPs necessary for performance of this effort, or reverse engineering the systems for each platform would dwarf the value of this effort. Reverse engineering for the Stryker platform alone would cost an estimated 237% of the value of this entire services effort, which is extremely unlikely to be recovered through competition. It was determined that the single reference to the Stryker GDLS TDP alone was enough of a cost review and that it exceeded the value recovered from performing a cost estimate of the all the GDLS combat and tactical vehicles listed in paragraph 3. a. Procurement of TDPs. As to procuring the TDPs, the Government has solicited GDLS multiple times requesting a proposal for the acquisition of the Stryker vehicles TDPs, one vehicle variant within the GDLS FoV, and has consistently been denied proposal submission based on GDLS's desire to retain ownership of the TDPs and the complexities in determining a fair and reasonable price for the TDPs. The most recent denial was received on 01 June 2016. As the OEM, GDLS retains the proprietary data rights and is the only vendor capable of providing the required services. b. Reverse Engineering. The Government developed a cost estimation for reverse engineering the Stryker FoV valued at an estimated $2.3B (237% higher than the value of this effort). This estimated cost of reverse engineering is for the Stryker FoV alone and does not include estimated reverse engineering costs for the AMBT, LAV, MRAP or GDLS specialty vehicles, also included as part of this effort. The Stryker FoV estimated reverse engineering costs far exceed the value of the current proposed effort. 6. Efforts to Obtain Competition: A. Effective Competition: The Government will not pursue additional competition for this contract action due to the reasons cited in Section 5 above. B. Subcontracting Competition: In an effort to ensure subcontracting competition, the solicitation and resultant contract will include FAR 52.244-5, "Competition in Subcontracting," FAR 52.219-8, "Utilization of Small Business Concerns" and FAR 52.219-16, "Liquidated Damages -- Subcontracting Plan", to ensure maximum competition at the subcontract level. GDLS is also required to submit a Small Business Subcontracting Plan. 7. Actions to Increase Competition: No further action to increase competition is contemplated at this time. The Government will continue to conduct market research to assess the feasibility of other contractor's ability to meet similar future Government requirements. Any additional information received will be considered to determine if a competitive acquisition should be conducted or to determine potential future requirements. 8. Market Research: In accordance with FAR 10.002(b)(2) procedures, TARDEC conducted market research via a Request for Information (RFI), released through FedBizOpps on 30 September 2016, with a response period of fourteen (14) days. The purpose of the RFI was to provide information to the U.S. Army TARDEC, Ground Vehicle Power and Mobility (GVPM), Advanced Propulsion Team on potential sources capable of providing support for the GDLS FoV effort. Responses were received from DRS Technologies and General Dynamics Land System (GDLS). TARDEC conducted a thorough analysis of the two responses to determine the companies' access to the GDLS FoV system level Technical Data required to baseline and evaluate both component level impacts and system level impacts to the GDLS FoV system platforms. The analysis of the responses resulted in the following: a) DRS Technologies stated that it actively supports GDLS FoV and that it has access to current GDLS FoV Technical Data, including Technical Manuals. However, DRS did not clearly respond that it has access to GDLS TDPs, which are proprietary to GDLS, or specifically, which GDLS-vehicle technical data it has access to. On 16 Nov 2016, the Government sent a PCO letter to DRS to clarify whether or not DRS has access to GDLS FoV TDPs, such as models, drawings, associated lists, specifications, standards, performance requirements, Quality Assurance Plan (QAP), software documentation, and packaging details. Also, included in the letter was a list of 25 GDLS vehicles. DRS was asked to identify which GDLS-vehicle technical data DRS has access to. The PCO letter was sent to DRS with a seven day response time. DRS did not respond to the request. Therefore, the Government has concluded that DRS does not have access to GDLS' proprietary TDPs and would not able to successfully perform all of the work anticipated under this effort. b) GDLS is the original OEM for the entire GDLS FoV and has the TDPs for the entire GDLS FoV. GDLS has designed, prototyped, tested, produced, fielded and sustained thousands of wheeled and tracked platforms in the GDLS FoV fleet. GDLS reported successfully performing the research, development, integration and testing of numerous components and system integration level accomplishments. GDLS possesses the GDLS FoV system level technical data and has capabilities required to perform platform level research, development, integration, and testing support of components for the GDLS FoV system platforms. TARDEC determined that only GDLS would be capable of performing the required work on all 25 GDLS FoV since it possesses all the TDPs for the entire GDLS FoV. 9. Interested Sources: This requirement will be synopsized in Federal Business Opportunities (FedBizOpps) to maximize subcontracting opportunities as required by FAR 5.201(c) to improve small business access to acquisition information and enhance competition by identifying contracting and subcontracting opportunities. To date, no other sources, other than the above, have written to express an interest, nor has the Government identified any other source that possesses the capability required to perform this effort for the GDLS FoV. 10. Other Facts: a. Procurement History. None. b. Other Facts. Contract history of this type of work is based on multiple previous contract of GDLS combat and tactical vehicles. 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: Dean Z. McGrew Date: 12 December 2016 Title: Team Leader, Signature://s//Dean Zeal McGrew Advanced Propulsion Team, GVPM 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: Mike Blain Date: 12 December 2016 Title: Deputy Associate Director, Signature: //s// MB Deputy Associate Director, GVPM 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. The basis for this determination will include a detailed cost analysis, a technical evaluation of cost conducted by the designated Contracting Officer's Representative (COR), and an Independent Government Cost Estimate (IGCE) completed by TARDEC. Certified cost or pricing data will also be required due to the estimated value of this action. Typed Name: Benjamin McMartin Date: 08 December 2016 Title: Contracting Officer Signature: //signed// BDM 14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief. Typed Name: Benjamin McMartin Date: 08 December 2016 Title: Contracting Officer Signature: //signed// BDM APPROVAL Based on the foregoing justification, I hereby approve the procurement of research and development relating to integration and testing of component technologies for the enhancement of GDLS combat and tactical Family of Vehicles (FoV), as well as actual integration, testing, trouble shooting, analysis, and prototyping of components through demonstration and proof of concept 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(a)(2)(iii)(A), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." Approval is subject to availability of funds and provided that the services and property herein described have otherwise been authorized for acquisition. The total estimated value of this effort is $9.7M.
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