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III.

PROGRAM MANAGEMENT AND CONTRACTING STRATEGY

A.

EARLY PROGRAM HISTORY

On October 26, 2006, CENTCOM combined two separate Urgent Universal Needs Statements (UUNS) for 185 and 1000 vehicles, respectively, into a single Joint Universal Operational Needs Statement (JUONS) for 1185 MRAPs. Two weeks later, on November 9, MARCORSYSCOM released the first RFP to industry and on December 6,

2006, officially established proposal and submitted bids.

the MRAP JPO.

Ten manufacturers responded to the

Nine

of

those

manufacturers

were

subsequently

awarded

IDIQ7 contracts on January 26, 2007 with number of prototype vehicles for testing.

immediate production orders for a minimum Of the nine awarded contracts, two failed to

meet contract requirements initial test phase started for

and were removed from the program prior to testing. The at least one manufacturer in February 2007 and continued

through Proving

that April Ground,

for other manufacturers. MD, focused heavily on

This initial threshold

testing, conducted at Aberdeen survivability requirements and

eliminated

two

more

manufacturers

due

to

failure

in

meeting

minimum

survivability

or

usability because

requirements. The early decision to use multiple manufacturers the increasing requirement outpaced the industrial capacity

proved sound of any one

7 Indefinite Delivery Indefinite Quantity (IDIQ): The indefinite-delivery contract may be used to

acquire supplies and/or Services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award. The IDIQ contract offers the following advantages:

Flexibility in both quantities and delivery scheduling Ordering of supplies or Services after requirements materialize

Indefinite-quantity contracts limit the Government’s obligation to the minimum quantity specified in the contract

Requirements contracts may permit faster deliveries when production lead time is involved, because contractors are usually willing to maintain limited stocks when the Government will obtain all of its actual purchase requirements from the contractor

Indefinite-delivery contracts may provide for any appropriate cost or pricing arrangement. Cost or pricing arrangements that provide for an estimated quantity of supplies or Services (e.g., estimated number of labor hours) must comply with the appropriate procedures (FAR, 2008, p. 396). All MRAP IDIQ contracts were firm fixed price (FFP) contracts.

23

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