JA-00348_Redacted.pdf

CMO Control Number: 2022-009 competition is: 10 USC 2304(c)(1) as implemented by FAR 6.302-1“Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. Specifically, FAR 6.302-1(a)(2)(ii) “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.”

5. Reason for Authority Cited:

The government does not have a means of obtaining adequate technical data (such as a technical data package a.k.a. “TDP”) in a reasonable time frame. Additionally, if funding were to become available, or if another contractor wanted to reverse engineer this, it would cost approximately for a competitive TDP and testing equipment to be developed to obtain spares from a breakout vendor (as shown in Table 1 below). This Cost Estimate was provided by the Project Manager, which has been determined from actual costs for the development of a similar munition related items such as the . The qualification cost was derived from tests conducted at the proving ground for and similar munition related items. It should be noted that no cost savings would be realized as the fielded quantities are very small.

Table 1

The Government requested that Raytheon Technologies Corporation (Raytheon) enter negotiations to purchase Government Purpose Rights to the technical data package for the STI M50 on 13 Apr 2021. Raytheon responded on 22 Apr 2021 and declined to enter negotiations regarding Government Purpose Rights to the technical data package for STI M50. Therefore, the Government is currently unable to make this procurement competitive. Contract W15QKN-17-C-0017, sole sourced to Raytheon, is the latest contract for this requirement and it was closed on Jan 2019.

To develop the technical data package, the Government would need to reverse engineer these components which is not practicable due to the duplication of costs.

Market research shows that there are no vendors currently in the process of being qualified. See section 8 below for further market research details. There are no current or planned efforts to qualify any additional sources for the reasons listed above.

Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by synopsis and posting to the SAM website.

The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the item to create a new and competitive M50 shock tube adapter TDP. This information was obtained from the Program Manager based off of technical evaluation from engineering.

6. Efforts to Obtain Competition:

a. Effective competition: Competition will not be pursued for this acquisition for the reasons stated in paragraph 5 above. In accordance with FAR 5.201, this procurement will be synopsized in SAM.gov, and any bids or proposals received will be considered by the Government. A Sources Sought notice was released and Market Research has been conducted. Reference-Paragraph 8.

b. Subcontracting competition: The contract will contain FAR Clause 52.244-5 entitled “Competition in Subcontracting”, which ensures the prime contractor competitively awards subcontracts to the maximum extent possible. The contract will also include FAR Clause 52.219-9 and DFARS clause 252.219-7003 to ensure submission and approval of a Small Business Subcontracting Plan.

7. Actions to Increase Competition: The Government does not have the pertinent technical data to enable competitive re-procurement and is taking no further action to increase competition at the prime contractor level for this procurement. On 22 Apr 2021, Raytheon responded and declined the Government’s request to purchase Government Purpose Rights to the TDP for the STI M50. At this time, the Government is taking no further action to increase competition. Market research was conducted and determined that this item is not commercially or readily available. The latest contract for this NSN, Referenced in Paragraph 10, is not active and was closed on 8 Jan 2019. The Government will continue to survey the marketplace and review the acquisition strategy, should additional information be received. The Government is continuing to survey the marketplace by requesting RFIs/sources sought notices to Sam.gov, and requesting to purchase the TDP from Raytheon.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on January 05, 2022, and was open for 15 days. Responses received and assessment of the responses are below:

Only one response was received from Federal Industries, but the items did not meet our requirements. No websites that were found appeared to be suitable for production of this item. The only website that was further investigated was the site posted below.

Further inspection of the company did not appear to have the item needed and to have them produce the item (if possible) would require the resources listed above.

https://www.idealblasting.com/

9. Interested Sources: Other than the response received from Federal Industries, no other sources have expressed interest in this procurement.

10. Other Facts:

Procurement History:

1. Contract number: W15QKN-07-D-0031-P00018 Award date: September 18, 2007 Contractor: Raytheon Technical Services Company Contract Value: $3,758,226.96 Competitive Status: 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services will satisfy agency requirements, as implemented by FAR 6.302-1(a)(2)(ii)(A) and FAR 6.302-1(a)(2)(ii)(B)