ACC-WRN-18-0013_REDACTION__JA_for_IPC-TOCNET_18c0046tp_Redacted.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

Contracting Activity: The U.S. Army Contracting Command (ACC) – Warren is the procuring activity for this action.

Description of Action: ACC-WRN proposes to negotiate and award a new Firm-Fixed Price Contract to SCI Technology Inc. (CAGE 2J622) Program Manager Light Armored Vehicles (PM-LAV) intends to procure the design, validation, and delivery of 675 each Input Power Conditioner (IPC) Modification Kits for use in the United States Marine Corps (USMC) Light Armored Vehicle (LAV) Tactical Operations Center Intercommunications System (TOCNET). The design of this upgrade kit will enhance the functionality of the IPC unit so that it provides the user and maintainer additional insight into the health status of the batteries used within the IPC unit. The contract will have SCI design, build, verify and deliver five initial production units of the upgraded IPC units for use as functional verification items on a LAV platform. The units will be of production quality and suitable to remain in a deployed vehicle. Upon USMC concurrence of the functionality of these initial evaluation units, SCI will finalize the design and production configuration for the remaining kits and be prepared to deliver them to the USMC for organic installation. The Government will fund this action utilizing FY 17 Procurement Marine Corps (PMC) funds.

Description of Supplies/Services: The current requirement consists of design, fabrication, validation and delivery of an IPC modification kit for use in the USMC

LAV TOCNET.

The contractor shall design, build, validate and deliver five initial evaluation units of the IPC kits that meet the requirements of the Performance Specification.

The total dollar value of this acquisition is estimated to be $807,070. The estimate is based on an Independent Government Cost Estimate (IGCE) dated 11 July 2017.

Authority Cited: The statutory authority permitting other than full and open competition is Title10 United States Code (U.S.C.) Section 2304(c)(1), as implemented under FAR 6.302-1 (a)(2) (iii)(A) Only one responsible source and no other supplies or services will satisfy requirements”, when, in the case of a follow-on contract development or production of a major system or highly specialized equipment, it is likely that award to a source other than the original

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source will result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

Reason for Authority Cited: SCI Technology Inc., as the Original Equipment Manufacturer (OEM) is the only source with the technological expertise coupled with facilities and other required resources to fully support the IPC Modification Kit. SCI Technology’s experience and knowledge of the TOCNET System cannot feasibly be duplicated at an acceptable cost to meet USMC requirements. Since SCI Technology owns the Technical Data Package and the requisite knowledge to internally modify these systems, approval is being sought to enter into a sole source contract to modify the IPC. SCI is willing to sell the TDP for the IPC modification, if the Government procures the entire quantity of 675 each Input Power Conditioner (IPC) Modification Kits. A new firm attempting to develop the expertise to efficiently and effectively respond to the Governments requirements would be compelled to reverse engineer the existing IPC circuit card.

Additionally, the contractor would be compelled to develop a complete drawing package, along with developing five prototype IPC circuit cards, and conducting quality and performance testing. The IPC Modification Kit could then be developed to satisfy the requirements of this contractual action. PM LAV estimates that the cost to reverse engineer the IPC circuit card is $671,522.74 based on the following:

Total Engineering = $265,213.09 Total Prototypes = $95,449.65 Total Test = $310,860.00 Total Estimated Reverse Engineering Cost = $671,522.74

The Rough Order of Magnitude (ROM) to procure the TDP for the IPC Modification is $150,000. As this is a one-time buy and there is no follow on effort, the $150,000 would not be recovered through competition.

Total Cost: Based on the above, it would cost the USMC approximately $821,522.74 to bring a new contractor to the level at which SCI is currently operating. The estimated cost to be recovered through competition does not justify competing this requirement. The Government estimates it would incur approximately $821,522.74 in duplicative costs if the effort were competed. The Government does not intend to procure this item again. This is a one-time buy.

There is no way to recuperate costs.

Efforts to Obtain Competition:

a. Effective Competition: For the reasons stated in paragraph 5 above, efforts to obtain competition for this acquisition cannot be effectively pursued to support the requirements of PM-LAV TOCNET effort.

b. Subcontracting Competition: The contract will contain the FAR clauses at 52.244-5, Competition in Subcontracting, as well as 52.219-8, Utilization of Small Business Concerns, and 52.219-9, Small Business Subcontracting Plan.

Action to Increase Competition: This is a standalone effort. No action is currently planned to increase competition for any subsequent acquisition in the future because this is a one-time buy. Required technical data is proprietary to the OEM, and the TOCNET system is currently in production. Were the Government to invest funding into a reverse engineering effort or for the purchase of the TDP, this one time effort would not recoup cost expended to procure the technical data. There is no funding in the budget to acquire the data and the Government does not own rights to SCI Technology’s technical data.

Market Research: Pursuant to FAR 10.002(b) (2) The Program Manager’s Office for Light Armored Vehicles contacted and entered into discussions with individuals from the Space and Naval Warfare Systems Command (SPAWARs), Atlantic regarding the availability of an alternate source to provide the IPC modification effort. In discussions with Lead Systems Engineer Integrated for LAV and Tanks IPT Team and Integration Specialist, LAV and Tanks IPT TEAM, it was determined that no other source currently exists in the market place that possesses the requisite knowledge and expertise to provide the conversion effort. On 12 June 2017, a sources sought notice was posted on the Federal Business Opportunity Government website. The sources sought notice closed on 26 June 2017.

responses were received, one from that completely met our requirements and another from in their response indicated that they would meet our requirement by introducing two additional pieces of hardware into the vehicle in order to perform the necessary functions. This approach does not meet the requirement called out which requires the incorporation of the solution within the existing TOCNET IPC footprint.

In their response, delivery schedule exceeded the delivery schedule set for this effort.

It would take months longer. The TOCNET IPC modification needs to be fielded IAW our required delivery schedule in order to address provided documentation to support they could meet the IPC Modification requirements as communicated in the Sources Sought notice. The technical approach provided by was consistent with PM LAV technical requirements and the proposed delivery schedule was consistent with program milestones. also indicated that they possess the requisite experience, design capabilities and manufacturing capabilities to provide the TOCNET IPC modification effort as required by PM

LAV.

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9. Interested Sources: To date, SCI Technology, Inc. (CAGE 2J622) and Cornett Technology were the only sources that provided a written response to the Sources Sought W56HZV-17-R-0194 for TOCNET IPC Modification

No other sources have written to express an interest in this acquisition and no additional interested sources are expected. Notices required by FAR 5.201 will be published, and any offers received will be considered.

10. Other Factors:

a. Procurement History:

1. PM LAV procured TOCNET IPCs through an Indefinite Delivery, Indefinite Quantity (IDIQ) Contract N65236-11-D-4110 via a Military Interdepartmental Purchase Request (MIPR) M9545013RC22J52 to Space and Naval Warfare Systems Command (SPAWAR). The entire IDIQ contract was issued by SPAWAR, as the Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) team supporting PM LAV, to Science Applications International Corporation (SAIC). SAIC serves as a corporate production office to contract SPAWAR C4ISR procurements and awarded a contract to SCI for the TOCNET IPC.

2. W56HZV09P0522 was awarded March 2009 to SCI for TOCNET IPCs.

W56HZV05C0300 was awarded April 2005 to SCI for TOCNET IPCs. The competitive status of these actions has not been confirmed due to no access to the non-active legacy contract file system.

3. The authority previously cited: N/A

4. Justification to support procurement history made before this one: N/A

5. Prior contract full and open: N/A

6. Unusual patterns: None

7. Prior Justification to support procurement: None

b. Other facts: N/A

11. Technical Certification:

I certify that the supporting data under my cognizance that is included in this justification is accurate and complete to the best of my knowledge and belief:

Name: John S. Myers Title: Deputy Program Manager Signature: 31 Oct 2017

X John S. Myers Program Manager Light Armored Vehicles

12. Requirements Certification:

I certify that the supporting data under my cognizance that is included in this justification is accurate and complete to the best of my knowledge and belief:

Name: John S. Myers Title: Program Manager Signature: 31 Oct 2017

X John S. Myers Program Manager Light Armored Vehicles

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 contractor’s proposal will be reviewed using price analysis to determine that the overall price is fair and reasonable.

Certified pricing data will be obtained since the value of the procurement exceeds the $750,000 dollar threshold for obtaining cost or pricing data pursuant to FAR 15.403-4(a)(1).

Name: Patricia Pierce Title: Contracting Officer

Date: 04 Aug 2017 Signature:

14. Procuring Contracting Officer’s Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief:

Name: Patricia Pierce Title: Contracting Officer Date: 04 Aug 2017 Signature:

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the effort required to procure the design, validation, and delivery of 675 each Input Power Conditioner Modification Kits for use in the USMC LAV Tactical Operations Center Intercommunications System, with an estimated value of $807,070, 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”. This approval is subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

X LaRuth Shepherd Competition Advocate

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