A11 - 2GF HTI B-Kit Spares JA R3 Redacted.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

Controlled by: DLA Land and Maritime Controlled by: DLA – Land at Aberdeen

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC:

DLA Land & Maritime Justification for Other Than Full & Open Competition

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRBL1-24-R-0001

[X] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

1. This acquisition is being procured by the Defense Logistics Agency, Land and Maritime, Land at Aberdeen

(“DLA-DSCC-ZLAB” or “DLA”).

2. The Government seeks to acquire supplies on a limited source competition basis from Raytheon and

Leonardo (DRS). This Justification and Approval J&A) supports a solicitation using other than full and open competition procedures. This Government contemplates awarding a Firm-Fixed-Price (FFP), Indefinite- Delivery/Indefinite Quantity (ID/IQ) contract(s) with five (5) base years and no option years in support of the Second Generation Forward Looking Infrared (2GF) system. To satisfy its requirement, the Government intends to award multiple contracts from this solicitation but reserves the right to award one contract to a single offeror if it is determined by the Contracting Officer to be in the best interest of the Government.

3. The supplies required to meet the using activity’s needs are described as follows.

These parts support systems used in Army tanks to aid in tactical navigation. The acquisition of the seven (7) National Stock Numbers (NSN) will support the 2GF Horizontal Technology Insertion (HTI) program. The items are being procured to support sustainment of the 2GF end items. The 2GF HTI program provides night-vision/electro-optical shop replaceable units (SRUs) for the following sight systems/platforms: the Commander’s Independent Viewer (CIV) and the Improved Bradley Acquisition Subsystem (IBAS) employed on the Bradley Fighting Vehicle, the Commander’s Independent Thermal Viewer (CITV) and the Thermal Imaging System (TIS) employed on the Abrams Tank, the Long Range Advanced Scout Surveillance System (LRAS3) employed on the Stryker, Mine-Resistant Ambush Protected (MRAP), High Mobility Multipurpose Wheeled Vehicle (HMMWV), Bradley Fire Support Team (BFIST), Armored Knight, and it also operates in a stand-alone application.

2GF technologies support Infrared (IR) signal collection, image processing and video signal output to the platform specific sight systems. The 2GF items allow location and visual identification of targets, including enemy combatants, in low light and visually obscured environments. The 2GF technology allows the warfighter to see the enemy in those conditions before being seen, increasing the lethality and safety of the warfighter.

The Government does not own the Technical Data Package (TDP) for these spares. There are two known approved sources, Raytheon and DRS. Per FAR 6.302-1(a), 10 United States Code (U.S.C.) 3204(a)(1), when the supplies required by DoD are available from only a limited number of responsible sources, and no other type of supplies will satisfy agency requirements, full and open competition need not be provided.

SOLICITATION: SPRBL1-24-R-0001

DLA Land & Maritime Justification for Other Than Full & Open Competition

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The acquisition will be synopsized in the System for Award Management (SAM) website (www.SAM.gov), Contract Opportunities at least fifteen (15) days prior to issuance of the solicitation. The solicitation and the resultant contract will include subcontracting opportunities to increase the industrial base. The Government’s previous contract established a secondary source through diligent subcontracts.

A small business subcontracting plan will be required per FAR 52.219-9 Small Business Subcontracting Plan (Sep 2023), and DFARS 252.219-7003 Small Business Subcontracting Plan (Dec 2019).

FAR 52.244-5 Competition in Subcontracting (Dec 1996), will be included and requires a contractor to select subcontractor and suppliers on a competitive basis to the maximum extent possible.

Determination that the anticipated cost to the Government will be fair and reasonable:

As the Contracting Officer, I hereby determine that the anticipated costs to the Government will be fair and reasonable by utilizing price analysis techniques in accordance with FAR 15.404-1(b)(2). The Contracting Officer expects that the prices will be found fair and reasonable based on comparison of competitive proposed prices received in response to the solicitation per FAR 15.404-1(b)(2)(i) and/or comparison to historical prices paid per FAR 15.404-1(b)(2)(ii).

Market Research/Efforts to Obtain Competition:

In accordance with FAR 5.201, the Government posted multiple Sources Sought Announcements (SSA) via the Government Point of Entry (GPE) SAM at www.sam.gov. The purpose of these SSAs was to identify interested parties capable of providing these items. SSAs were posted on May 16, 2023, through April 02, 2023, as well as a Market Survey on December 27, 2022, through January 31, 2023. To date, no vendors other than DRS, CAGE Code (32865), and Raytheon CAGE Code (96214) has expressed interest in performing the production requirements for this acquisition.

The Government checked the NSN’s logistical data in the Government database WebFLIS. The Original Equipment Manufacturers (OEM) were the only approved sources identified that manufactured these seven

NSNs. The WebFLIS report indicated several other CAGE codes selling the items with identical prices to DRS and Raytheon. The Government performed an internet search of the CAGE codes and the research showed that the other sources were subsidiaries to the OEMs. Based upon the market research report, the approved sources are the only sources for the items. The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions to be competitive.

Additional facts Supporting Other than Full and Open Competition:

The government requested a proposal for the TDP in November 2011 and the program office was told that the cost would be significant and would take a minimum of three years to complete procurement of the package. This would not support the customers’ current budget, nor does the cost appear recoverable at this late stage in the product’s life.

The Army technical expert has advised, based upon original engineering design efforts performed by Raytheon and DRS for the 2GF SRUs covered under this procurement, that the reverse engineering process

SOLICITATION: SPRBL1-24-R-0001

DLA Land & Maritime Justification for Other Than Full & Open Competition

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Period of Performance February 28, 2018 – January 31, 2025 (7 Years)

Total Contract Value $67,000,000.00 NSNs on this Contract Included in Current Acquisition 5855-01-464-1513

5855-01-538-6686 5855-01-538-6085 6650-01-538-5879 5855-01-490-9693 5998-01-672-0394 5998-01-671-6549

A Listing of Sources, If Any, Indicating an Interest in the Acquisition:

DRS located at 100 N Babcock St., Melbourne, FL 32935, CAGE Code 32865 and Raytheon located at 2501 W. University Dr. McKinney, TX 75071, CAGE Code 96214, have expressed an interest and advised the Government that they are the OEMs for the 2GF program and system. The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions to be competitive.

The following actions are being taken to identify additional sources:

In accordance with DFARS PGI 206.304(a)(S-70), the justifications for the three (3) previous contracts in the tables above are attached, and the planned actions were completed. Additional market research has been completed and the only responses have been DRS and Raytheon, which has been documented in the most recent market research report Market Research will continue, to include Sources Sought Announcements for future acquisitions.

SOLICITATION: SPRBL1-24-R-0001

DLA Land & Maritime Justification for Other Than Full & Open Competition

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I have reviewed this justification.

DLA Office of General Counsel Date

I have reviewed and hereby recommend that this justification be approved.

DLA Competition Advocate Date

I hereby approve this justification.

MATTHEW BEEBE Date Senior Procurement Executive

Attachments:

Attachment 1 – Previous J&A SPRBL1-18-D-0031 & SPRBL1-18-D-0032 Attachment 2 – Previous J&A PM Contract W909MY-19-D-0004