Combatant Craft Assault (CCA) Production

The United States Special Operations Command (USSOCOM), Special Operations Forces (SOF), Acquisition, Technology, and Logistics (AT&L), Directorate of Procurement, intends to negotiate a sole source contract to United States Marine, Inc., located in Gulfport, Mississippi, to produce additional Combatant Craft Assaults (CCAs) for an existing fielded fleet. The contract will have multiple Contract Line Item Numbers (CLINs), with the primary CLIN type being Firm Fixed Price, and Cost-type CLINs for engineering services, shipping, and travel. The contract will include a surge production CLIN which, if executed, would bring the estimated total value to $108M. Orders shall utilize procurement-type funds. The initial contract delivery order for the minimum order amount of two (2) craft will utilize Fiscal Year 2020 (FY20) procurement-type funds.
The contractor will manufacture CCA as part of scheduled life cycle replacement. The contract will include additional line items to procure spare engines, execute sustaining and developmental engineering services, and training. The minimum order amount shall be two (2) craft and a maximum order amount of $108M.
In accordance with FAR 6.302-1(a)(2)(ii), only one responsible source will satisfy agency requirements with the available technical data without incurring substantial duplication of costs that are not expected to be recovered through competition. Furthermore, in accordance with 6.302-1(b)(2), the lack of comprehensive Government-owned technical data combined with the specific Original Equipment Manufacturer (OEM) proprietary data for specific construction details and components make the CCA available from only one source from an economic standpoint. USMI utilizes a proprietary process that is unique to the CCA design, is the result of twenty years of refinement, and is currently available from only one source at a reasonable price. To compete this requirement would require the Government to either develop or purchase a complete Technical Data Package (TDP). The Government is not likely to recover this cost through competition due to limited number of craft intended to be purchased under the contract. Qualifying a new OEM would also create additional costs and unreasonable cost, schedule and technical risks to the ongoing mission requirements.

United States Marine, Inc. (USMI) is the OEM for the CCA craft, which USSOCOM acquired through a third party commodity procurement contract. The CCA was designed through extensive research & development and was validated by Naval Surface Warfare Center, Carderock Combatant Craft Division (CCD), Market research did not identify another builder that was manufacturing an equivalent platform using the stringent build tolerances of the CCA. Awarding to another contractor would present unacceptable cost, schedule, and technical risk.

Risk Factors:
1. Cost Risk: With the exception of the OEM, all respondents to the market research indicated that there would be non-recurring engineering (NRE) costs, though no respondent quantified the NRE with a Rough Order Magnitude (ROM) estimate as requested. Based on historical combatant craft portfolio data, the Government estimates it will take a minimum of 12 months to qualify a new boat and could cost upwards of $18M, which includes: 1) procuring a CCA Technical Data Package (TDP), 2) NRE incurred by a new manufacturer, 3) Developmental / Operational costs to qualify a new craft, and 4) the cost of Government testing and evaluation. Additionally, such developmental efforts would require issuance of a bridge contract to USMI while a new design is qualified. The market research did not show any probability of recouping these costs through open competition. Finally, introduction of a variant CCA craft into the existing fleet would increase the cost of sustainment and logistics support by creating a CCA variant.

2. Schedule Risk: Based on historical combatant craft portfolio data and the information provided by the respondents, the Government estimates that another company will take a minimum of 12 months to construct a first article and that validation and qualification of a new design for operational use will require significant Government oversight. In addition, a bridge contract for USMI to continue building CCAs during the competitive award and qualification processes would be necessary.

3. Technical Risk: USMI has developed technologies and processes unique to the CCA including proprietary data required to produce a platform that is ready for operational use. USMI is currently the only vendor identified that can currently meet the stringent build tolerances required to meet CCA performance specifications.

As such, only USMI can perform the Government's minimum needs.

Per FAR 5.207(c)(16)(ii), all responsible sources may submit capability statements that will be considered by the agency. Information received will normally be considered solely for the purpose of determining whether to conduct a competitive procurement. All replies must be provided to the Government no later than Monday, 22 April 2019, at 2:00 p.m. Eastern Standard Time. All inquiries and responses concerning this action shall be sent in writing via email to: josette.esau.ctr@socom.mil, or Roxanne.gerry@socom.mil.