J A_SPRDL1-16-R-0173_(1)_REDACTED.pdf

J&A SPRDL1-16-R-0173

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-16-R-0173

1. Contracting Agency: Defense Logistics Agency (DLA) Land Warren

2. Description of Action: The proposed contract action will result in a firm fixed price contract for up to 36 each Pump, Rotary for the EMM Water Distributor.

Competition will be limited to part number listed. Award is projected for the 3rd quarter of FY16. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services:

The contractor shall provide Pump, Rotary for EMM Water Distributor per part number listed in Table 1. The unit value is $7,992.80 and quantity of this procurement is 18 each with a 100% option. The value of the contract is $287,740.80 with option value.

Table 1 – part numbers

NSN NOMENCLATURE P/N

4320-01-591-7981 Pump, Rotary 6602671 E D Etnyre & Co, Cage 80195

4. Authority Cited: The statutory authority permitting this action is 10 U.S.C.

2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited:

Pump, Rotary NSN: 4320-01-591-7981 is used on the EMM Water Distributor. It is manufactured by the ED Etnyre & Co (Etnyre). Etnyre designed and tested the Pump, Rotary at its own expense.

The Government does not own any data rights to this item. No technical data exists that would define production specifications for the Pump, Rotary and since the item was developed and tested at Etnyre’s private expense such data is considered proprietary to the supplier. The non-availability of technical data requires that this item be procured on a non-competitive basis from the Etnyre for the replenishment of spare parts. The acquisition data and technical data for 4320-01-591-7981 is owned and controlled by Etnyre.

The Government does not own the patent rights or any other proprietary rights to the technical data that would be required to produce a competitive TDP. Etnyre designed and manufactured this system. They passed the requirements of the government http://haystack.ihserc.com/code/DD.asp?FDrn=3990&V=4320 http://haystack.ihserc.com/code/DDN.asp?F=CC&V=01 http://haystack.ihserc.com/code/Super_Src.asp?SP=PNLinkFLIS&FPartNo=6602671&FCage=80195&FMode=PartNo http://haystack.ihserc.com/code/DD.asp?FDrn=3990&V=4320 http://haystack.ihserc.com/code/DDN.asp?F=CC&V=01 http://haystack.ihserc.com/code/DD.asp?FDrn=3990&V=4320 http://haystack.ihserc.com/code/DDN.asp?F=CC&V=01 qualification tests, to include performance, reliability and durability tests. Etnyre is the owner of the TDP for the Pump, Rotary.

Etnyre has the specialized and proven qualities and capabilities, facilities, resources, and manufacturing and development experience, to produce the item identified.

The Government did not buy the proprietary rights to produce a competitive TDP. No vendors other than Etnyre can meet the required performance standards. The supplier has demonstrated the specialized and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The authorized sources tested the items in the vehicle to the vehicle specifications.

This is the only known source for the Pump, Rotary for EMM Water Distributor to have the proper form, fit, and function for this application. The source has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. They also passed the vehicle test for 20,000 miles to qualify their product. If another possible source of supply for this item is identified, qualification testing would be required to prove out the item. Without performing qualification testing, the Government risks premature failure of this item, which could result in serious accidents involving fatalities.

A large amount of material engineering, time and fabrication are required to develop, test, certify, and release a reverse engineered competitive design.

Based on past development experience, the estimated cost to develop a reverse engineered competitive product and qualify additional sources is $300,000, with an estimated delay of 16 months.

This expense could not be recouped through subsequent competitive procurement and the 16 months is unacceptable to meet Government requirements. Funds are not available to develop a competitive Technical Data Package (TDP) through Government or Contractor reverse engineering and testing.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require 4 months and $100,000. This expense could not be recouped through following competition. Funds are not available for qualification testing of a new source. To neglect qualification testing would cause a serious risk as premature failures of the frame, structural, vehicular could harm the mission. The delay associated with these efforts is unacceptable in fulfilling TACOM requirements and would have a significant impact on TACOM’s ability to support the soldier in the field.

6. Efforts to Obtain Competition: There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints – no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. To date, there has not been any expressed interest by any other known vendors to become qualified to produce this item. This effort will be synopsized in accordance with FAR Part 5.201(c).

7. Actions to Increase Competition: At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a fully defined and validated TDP for NSN 4320-01-591-7981. Etnyre holds the technical data regarding this item. Any vendor that believes it can provide this NSN for a lower cost while meeting the same requirements as the existing item should seek qualification as a secondary source through the Competition Management Office Source Approval Program at their own expense.

8. Market Research:

Engineering conducted an online search of known pump suppliers looking for published material on new built replacement unit. The results of this search did not produce any new leads on a company that provides a direct replacement pump for the EMM Water Distributor. NSN 4320-01-591-7981 does not appear in CASL or APPL. A sources sought synopsis to Jason Gruber was made in order to identify additional suppliers.

9. Interested Sources: Engineering requested a Sources Sought Synopsis for this part. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. To date, no other sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this NSN.

10. Other Facts:

a. Procurement History:

Contract: SPRDL115P0101//0001AA Award Date: 2015 March 26 Contractor: E D Etnyre & CO Value: $ 15,985.6 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

Contract: SPRDL113P0012//0001AA Award Date: 2012 October 19 Contractor: E D Etnyre & CO Value: $ 34,417.8 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Pump, Rotary used on EMM Water Distributor

c. Unusual and Compelling Urgency: N/A

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

[ x ] $150K to $650K Team Leader [ ] $650K to $12.5M AD/Deputy AD [ ] $12.M to $85.5M Mr. Magid Athnasios EBG [ ] >$85.5 Dr. Paul Rogers

Name: Greg Slota Title: Tactical Truck Team Engineer Date: 19 February 2016 Signature: //signed// Greg Slota

Name: Mohan Khabra Title: Tactical Truck Team Lead Date: 19 February 2016 Signature: //Signed// Mohan Khabra

12. Requirement Certification: I certify that the supporting data under cognizance which are included in the justification are accurate and complete to the best of knowledge and belief.

Name: Heather Nieto Title: Item Manager Date: 19 February 2016 Signature: //s// Heather Nieto

Name: Brian McCutcheon Title: Supply Chief, Secondary Item Management and RESET (SIMR) Team Trailers & Heavy Tactical Vehicles Date: 22 Feb 2016 Signature: //s// Brian McCutcheon

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.

This determination will be based on the results of a detailed price analysis. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. This procurement is estimated under the $700K threshold, however, certified cost and pricing data is required if the parties negotiate an agreement greater than or equal to $700K.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 01 Mar 2016

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 01 Mar 2016

15. Legal Concurrence:

Concur: // Darin R. Morency // Date: 03/02/2016