FINAL_Redacted_SPRBL116D0001_JA__017.pdf

SOURCE SELECTION INFORMATION & SENSITIVE- SEE FAR 2.101 & 3.104

JUSTIFICATION AND APPROVAL (ADDENDUM II)

FOR OTHER THAN FULL AND OPEN COMPETITION

MODIFICATION TO CONTRACT SPRBL1-16-D-0001

TO ADD THREE (3) RECEIVER-TRANSMITTERS

1. Contracting Activity: Defense Logistics Agency (DLA)

DLA Land at Aberdeen (DSCC-ZLAA) 6565 Surveillance Loop, Building 6001 Room C1301

Aberdeen Proving Ground, MD 21005-1846

2. Description of Action

DLA Land at Aberdeen plans to issue a modification to five (5) year, Firm Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract SPRBL1-16-D-0001, with Cubic Defense Applications, Inc., (Cubic Defense), CAGE 94987, to add three spare parts to the contract. The proposed added spare parts are:

Receiver-Transmitters, NSN 5820-01-662-1038, P/N 282650-2 Receiver-Transmitters, NSN 5820-01-661-5866, P/N 282650-3 Receiver-Transmitters, NSN 5820-01-661-6382, P/N 282650-4

This action will bring the number of items on the contract to eleven.

Contract SPRBL1-16-D-0001 has a contract maximum value of and it was awarded on December 24, 2015. Based upon the amount obligated to date, it has been determined that the contract maximum value will be sufficient based upon a revised estimated contract value for all eleven NSNs of refer to the table in section 3, Description of Supplies/Services. The contract maximum will not be adjusted as a result of this add-on action. The contract ordering period expires on December 23, 2020.

The items on contract SPRBL1-16-D-0001 were determined to be commercial by the Contracting Officer on October 1, 2014. The Contracting Officer determined on January 3rd, 2019, that the receiver-transmitters are commercial per the FAR 2.101 definition of a commercial item. Therefore, this procurement action will be conducted in accordance with FAR Part 12, Acquisition of Commercial Items and FAR Part 15, Contracting by Negotiation.

3. Description of Supplies/Services

The AN/ARS-6 Personnel Locator System (PLS) is part of the Combat Search and Rescue (CSAR) system used by the Army, Navy, Air Force and NATO to locate covertly downed or missing personnel from the air in theatre, while concealing the war fighters’ location from the enemy. The AN/ARS-6 PLS is an airborne guidance system that provides secure, encrypted communication between rescue forces and isolated combat personnel, by transmitting relative position (direction and range) of the combat person.

It is installed in close air support aircraft such as helicopters and fixed wing attack aircraft, and interfaces with all United States deployed combat survival radios and standard civil emergency distress beacons.

The original version of the AN/ARS-6 PLS, which is indicated by a “V”, did not have Global Positioning System (GPS) capability. The V12 version was introduced in 2013 and added GPS capability. The NSNs being added are compatible with the V, V12, as well as the most recent redesigned lightweight V14

Addendum II to Justification and Approval

SPRBL1-16-D-0001

Source Selection Information & Sensitive- See Far 2.101 & 3.104 including drawings and specifications for the original V version, the second-generation V12 version, and the latest V14 LARS version.

On December 05, 2016, the Government contacted Cubic Defense to ask if Cubic Defense wanted to sell the technical data package (TDP). Cubic Defense replied on January 9, 2017 that they were not interested in selling the TDP.

Without the TDP, any other source must reverse engineer the receiver-transmitter units, then manufacture and test them. The Government’s technical experts estimate that the price to reverse engineer the receiver-transmitter would be more than $4 million dollars and that it would take a new source at least two years to reach the production phase for the new receiver-transmitters.

The Acquisition Method Reason Code (AMRC) for all the receiver-transmitters is 3D. The assigned value “3” means that the part is to be acquired from the actual manufacturer. The assigned value “D” means that the Government does not physically have the data needed to procure this part competitively, that the data cannot be obtained economically, and that it is not possible to draft adequate specifications or an economical material description in order to obtain the part through a competitive solicitation.

6. Efforts to Obtain Competition

Efforts to obtain competition will be accomplished through ongoing market research. Current market research details are in Section 8, Market Research. In accordance with FAR 5.201, this action will be synopsized on Federal Business Opportunities website (FBO.gov) for at least 15 days prior to issuance of a contract modification that adds the receiver-transmitters.

7. Fair and Reasonable Cost Determination

Certified cost and pricing data will not be required because the receiver-transmitters are determined to be commercial. Price analysis techniques will be used to determine the pricing fair and reasonable. If required to support a determination of fair and reasonable pricing, Cubic Defense may be required to submit other than certified cost and pricing data. Based upon the above, as the Contracting Officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable.

8. Market Research

The Contract Specialist posted a Sources Sought Announcement (SSA) on FBO.gov on August 16, 2018 for NSNs 5820-01-662-1038 and 5820-01-661-5866. Cubic Defense responded to this SSA and expressed their interest in the procurement.

The Contract Specialist posted a second SSA on FBO.gov on November 19, 2018 to added NSN 5820- 01-661-6382 to this procurement. Cubic Defense responded on December 11, 2018 expressing their interest in this acquisition. No other company responded to either SSA posting on FBO.gov.

The Contracts Specialist performed additional market research in December 2018 by searching WebFLIS, and the Army i2Log. These databases showed that CAGE 94987, Cubic Defense, is the only approved manufacturing source for the receiver-transmitters. After performing an internet search, there were no other sources identified that can manufacture the receiver-transmitters for the AN/ARS-6 PLS.

Cubic Defense is the only manufacturer for the AN/ARS-6 PLS and its spare parts.

9. Other Facts

There is no procurement history for the NSNs proposed on this add-on action. Software versions V25, V26 and V27 have been installed in fielded RT-1532H models for similar items with different NSNs. All updates have been done on units sent to the contractor by the customer. However, the Army has not previously purchased units from the contractor with software version V25, V26 or V27 already installed.

Therefore, the NSNs for addition have no prior procurement history.

10. Interested Sources

No vendors, other than Cubic Defense, have expressed an interest in supplying the receiver-transmitters.

11. Actions to Increase Competition

The contract includes a small business subcontracting plan and FAR 52.244-5, Competition in Subcontracting. Cubic Defense will be asked to review their small business subcontracting plan goals, with respect to the addition of the receiver-transmitters, and revise them as appropriate.

Army CECOM currently manages the receiver-transmitters for the AN/ARS-6. The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competitive.

12. Certifications (continued)

I have reviewed and approve this justification.

Mark A. Brown DLA Land and Maritime, Acquisition Executive

Date

APPROVAL REQUIREMENTS

( ) Up to $650,000 Contracting Officer ( ) $650,000 to $12,500,000 Competition Advocate ( X ) $12,500,000 to $93,000,000 Head of the Contracting Activity (HCA) ( ) Over $93,000,000 Senior Procurement Executive (AQ)