Small Tactical Electric Power 3-Kilowatt(STEP 3kW) AMENDMENT 0003   4

Introduction
This Solicitation is for the award of up to three (3) Engineering and Manufacturing Development (EMD) contracts for a new/improved Small
Tactical Electric Power (STEP) 3 kilowatt (kW) generator. The Army requiring activity for this solicitation is Product Manager, Mobile Electric Power Systems (PdM MEPS). The contemplated system would be rated no less than 3kW, operating on JP-8 fuel, and weighing less than 308 pounds. This STEP 3kW EMD solicitation will result in up to three (3) stand-alone Firm Fixed Price (FFP) contracts, each having the following (4) four phases: Phase 1: Preliminary Design Review (PDR); Phase 2: Critical Design Review (CDR); Phase 3: Prototype Build and Delivery; and Phase 4: Test Support.

Affordability
The Governments affordability goal for this EMD effort is $22,500,000. As such, each individual contract is anticipated to have a maximum price of no more than $7.5M. This $7.5M fixed-price affordability goal for each contract is intended to fund contractor development of the system, support for all four phases, and to delivery all required hardware deliverables (30 generator sets and associated equipment, as further explained in the SOW).

Offeror Size Status
This solicitation is a partial small business set-aside. Two (2) of the three (3) potential contact awards will be initially set-aside for small business. Large businesses are able and invited to compete for any award(s) not set aside for small businesses. See Section M for additional details.

Notice Regarding Follow-On Production Contract
This development contact has the potential for a substantial, multi-year follow-on production contract. Given that the design and test activities of the STEP 3kW EMD phase will take approximately 33 months to complete and will cost the Government $24M or more, the Government does not anticipate conducting another full-and-open competition for the follow-on LRIP/Production IDIQ contract. Rather, the follow-on production contract for ordering STEP 3kW production systems will - to maximum extent possible - use Other than Full and Open Competition. Should only one (1) of the three (3) EMD contractors from this solicitation complete EMD phase with a system that meets, or substantially meets, Purchase Description (PD) requirements, the Government will utilize an exception to competition, likely FAR
6.302-1, to non-competitively negotiate and award a production contract to that firm on a sole-source basis. Should more than one EMD contractor complete EMD with successful designs, the Government may then either: (1) utilize an exception to competition to request and then tradeoff production proposals from only the successful EMD contractors, or (2) conduct a full-and-open competition follow-on, but with a proposal screening/gate criteria whereby an Offeror must provide a working production representative bid-sample to be considered for the production award. In sum, this solicitation is likely the only opportunity that an interested entity will have to compete for
the opportunity to be the long-term manufacturer of the new STEP 3kW system for the Army and DOD.

PLEASE BE ADVISED THE CONTRACTING OFFICER HAS ISSUED AN AMENDMENT TO THE PREVIOUSLY RELEASED SOLICITATION. PLEASE READ THE ATTACHED SF30 [AMENDMENT 0003] FOR DETAILS CONCERNING THE SUBJECT.