JA-00368_Redacted.pdf

JA-00368

CMO # 2022-011

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

JA-00368

1. Contracting Agency: U.S. Army Contracting Command – Detroit Arsenal (ACC-

DTA), Detroit Arsenal, Michigan 48397-5000 is the procuring activity responsible for this action.

2. Description of Action: ACC-DTA intends to award a new Firm-Fixed Price (FFP) 5-year requirements contract to BAE Systems Controls Inc. of Endicott, NY. This sole-source contract is anticipated to be awarded five one-year ordering periods. Current requirements are for the contractor to provide services necessary to repair and upgrade approximately 100 each Train Rate Sensor (TRS) units and approximately 158 each Turret Control Box (TCB) units that are

. The anticipated obligations are in Fiscal Year (FY) 2022 – FY 2027, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The proposed contract action is for the contractor to provide repair and upgrade services for the Gyroscope Integrated (also known as TRS) units from NSN 6615-01-381-1678, part no. 520100-04-01 to NSN 6615-01-597-5918, part no. 520100-04-02. Additionally, the contractor will be required to repair NSN 5930-01-398-1523, part number 520000-07-01, Switch Box (also known as TCB). The estimated cost to repair/upgrade is $3,143 per TRS unit and $5,488 per TCB unit for a total estimated contract value of $1,181,404.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is: 10 United States Code (U.S.C.) 2304(c)(1) as implemented by Federal Acquisition Regulation (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)(iii) “For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services 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 TCB and TRS comprise the legacy turret control system designed for the AH-64A and retained for use on the AH-64D to aim the M230 Automatic Gun. The TCB is an electronic line replaceable unit (LRU) that serves as the M230 gun turret's system controller. It receives the commanded weapon line of sight (LOS) from the aircraft's weapon processor. The TCB points the M230 gun turret to the commanded LOS by issuing position commands to the hydraulically powered turret, monitored and corrected by the closed loop feedback response returned from azimuth and elevation resolvers. The TRS is an electronic LRU mounted on the gun turret's right fork. It serves as a remote turret angular acceleration sensor for the TCB. The TRS detects the turret's rate of azimuth movement change and supplies an analog corrector signal to the TCB. This analog corrector signal is summed with the TCB azimuth position command to compensate for rapidly changing target position or turret recoil reaction.

BAE Systems Controls Inc. (BAE) owns the intellectual property and Technical Data Package (TDP) for the TCB and TRS. BAE is the original equipment manufacturer and the sole depot-level repairer since the AH-64 was first fielded in 1985. BAE has the facilities, fixtures, test equipment, trained personnel, technical expertise and ability to repair TCBs and repair/upgrade TRSs to meet the United States Government (USG) requirements. The TCB and TRS utilize numerous "select at test" discrete component values that would not be readily identifiable during a conventional reverse engineering effort. Using TCBs and TRSs repaired by anyone other than BAE risks making the gun turret non-functional or inadvertently degrading turret performance to the point that it no longer meets AH-64D gun accuracy requirements.

The Contract Specialist contacted BAE on June 2nd, 2021, and asked if they were willing to sell the technical data package and/or data rights. Multiple follow-up emails were sent to BAE and as of November 2021, the contractor has failed to respond to the Government’s request to purchase the TDP after multiple attempts.

The Combat Capabilities Development Command (CCDC) Armaments Center (AC) project engineer estimates that it would cost approximately to reverse engineer, test and develop a fully competitive repair TDP for the TCB and a repair and upgrade TDP for the TRS. The estimated reverse engineering task costs are detailed below:

The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering these items to create a new and competitive TCB and TRS repair technical data package.

Assuming a 25% cost saving is achieved through competition, the in annual savings would take over to offset the estimated cost of reverse engineering these items and qualifying another repair source.

The cost to create competition is whereas the estimated savings to be recovered through competition is therefore resulting in a substantial duplication of cost that is not expected to be recovered through subsequent competition.

This cost comparison is based on the following assumptions:

6. Efforts to Obtain Competition:

a. Effective competition: Competition will not be pursued for this acquisition for the reasons stated in paragraph 5 above; however, any bids or proposals received shall be considered. In accordance with FAR 5.201, this procurement will be synopsized in beta.SAM and any bids or proposals received will be considered by the Government.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan"; and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)”, to maximize small business opportunities and utilization.

7. Actions to Increase Competition: The Government does not have the pertinent technical data nor the intellectual property (IP) rights to enable competitive procurement and is taking no further action to increase competition at the prime contractor level.

BAE has failed to respond to the Government’s request to purchase the TDP after a reasonable amount of attempts; therefore, the Requiring Office will continue to monitor BAE’s willingness to sell or license rights to their proprietary TDP. The Government will continue to survey the marketplace and review the acquisition strategy, should additional information be received.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 4/21/2021, and was open for 15 days. During that time period, no responses were received from the contractors regarding the Sources Sought Notice. The Sources Sought Notice included a Market Research Questionnaire that asked contractors various questions such as describing the types of items they currently repair/upgrade, current and/or past performance for the items referenced in Section 3 of this J&A, production capabilities, and lead times to repair these items.

In accordance with (IAW) FAR Part 8 – Required Sources of Supplies and Services, electronic searches using the following mandatory sources were conducted by the

Contract Specialist to determine if similar items were commercially available:

a. Google Search Engine

b. Procurement History

c. Dynamic Small Business Search (DSBS)

d. U.S. General Services Administration (GSA)

e. NSN Now

f. UNICOR

g. AbilityOne

Additionally, BAE does not appear to be actively marketing TCB or TRS support on their web page https://www.baesystems.com/en/what-we-do/products-and-services. This is likely a result of the legacy nature of the hardware and declining fielding numbers as the Apache fleet continues to convert their AH-64D fleet into AH-64E aircraft. The TCB and TRS were uniquely designed for the AH-64A/D and produced to a proprietary TDP.

Based on the above internet searches, no additional commercial repair alternatives or other military hardware that could be adapted for use on the AH-64 were identified and that no other source that currently exists can satisfy the Government’s requirement.

9. Interested Sources: To date, no sources have expressed an interest in writing. The notices required by FAR 5.201 will be published and any proposals received will be considered.

10. Other Facts: Procurement History:

a. Contract no.: W56HZV-18-C-0077 Contractor: BAE Systems Controls, Inc. (89954) Requirement: TRS &TCB Depot-Level Repair Award Date: 15 Jun 2018 Competitive Status: Sole Source in accordance with FAR 6.302-1 Award Value: $739,959 Section 7:

b. Contract no: W56HZV-15-C-0008 Contractor: BAE Systems Controls, Inc. (89954) Requirement: TRS depot-level repair

Award Date: 20 October 2014 Competitive Status: Sole Source in accordance with FAR 6.302-1 Award Value: $533,614 Section 7:

c. Contract no: W52H09-05-D-0065 Contractor: BAE Systems Controls, Inc. (89954) Requirement: TRS & TCB depot-level repair Award Date: 4 April 2004 Competitive Status: Sole Source in accordance with FAR 6.302-1

JA-00368

CMO # 2022-011

Award Value: $3,764,500After a reasonable effort, the Government was unable to locate the J&A supporting W52H09-05-D-0065. However, the J&A supporting W56HZV-15-C-0008, which was the contract that followed W52H09-05-D-0065, stated the following information when describing whether circumstances had changed from the prior procurement: Other Factors: Historically, previous TRS depot-level repair was acquired Sole Source from BAE Systems Controls INC.

IAW FAR 6.302-1 under Contract Number W52H09-05-D-0065, awarded 04 APR 2004 at a value of $3,764,500.

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.

Name: William Riewerts Title: Chief, Medium Caliber Systems Branch Email:

Signature:

X W illia m R ie w e rts

2/25/2022

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: Karen L. Kulie

Title: Director, Weapons Product Support Integration Directorate (PSID) Email:

Signature:

X K a re n L . K ulie

1-- ····-·•--111111111

2/28/2022

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 cost and or price analysis. The contractor will be required to submit certified cost and pricing data as the expected value of this procurement falls within the threshold. This item is non-commercial.

Name: Pierce, Patricia

Title: Contracting Officer Email:

Signature:

X Patricia Pie rce

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2/25/2022

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

Name: Pierce, Patricia Title: Contracting Officer Email:

Signature:

X Patricia Pie rce

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2/25/2022

Approval

CMO # 2022-011

Based on the foregoing Justification, I hereby approve the procurement of repair/upgrade services to repair and upgrade Train Rate Sensors from NSN 6615-01- 381-1678, part no. 520100-04-01 to NSN 6615-01-597-5918, part no. 520100-04-02, and repair services to repair Turret Control Boxes NSN 5930-01-398-1523, part number 520000-07-01 on an other than full and open competition basis pursuant to the authority of 10 USC 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii)(A), "Only One Responsible Source and No Other Supplies or Service Will Satisfy Agency Requirements." This procurement is subject to the availability of funds and provided that the property herein described has otherwise been authorized for acquisition. The total estimated value of this acquisition is $1,181,404.

Signature:

X LaRuth Shepherd

Laruth Shepherd

Competition Advocate

Signed by:

3/3/2022