JA-00650 EH2C0460EH_Redaction_Final_Redacted.pdf
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- Attached to
- Remote Terminal Assembly; NSN:5940014939102
- Solicitation number
- W912CH-26-C-0005
About this file
This is a Justification and Approval (J&A) document for the Army Contracting Command-Detroit Arsenal (ACC-DTA) to acquire a Remote Terminal Assembly (RT Box) for the M88 Family of Vehicles. The contract will be awarded to Benchmark Electronics Huntsville Inc. and Ducommun Labarge Technologies, Inc. as the only approved sources, with a total estimated value of $1,003,932.00. The RT Box is a highly specialized component of the Enhanced Diagnostics System (EDS) used for hydraulic troubleshooting, with a base quantity of 9 units and an estimated unit price of $55,774.00.
The document details extensive market research and qualification challenges, noting that while other vendors exist, qualifying a new source would cost approximately $5,610,000 and take 50 months. The government determined that the cost of qualifying an additional source would not be recoverable through competition, given the current usage rate of 12 units per year. The procurement is being pursued under a non-competitive authority that allows for sole-source procurement of specialized equipment when alternative sources would result in substantial duplication of costs.
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Equipment capabilities, limitations, & vulnerabilities.
OPSEC
OPSEC
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CMO Control Number: 2023-095
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Estimated Time to Complete 50 months $5,610,000
Obtaining part samples is a required portion of the qualification process. The Government must obtain prototypes that can be used for testing and integration to ensure that the component being proposed meets the requirements outlined throughout the source-controlled drawing. This process would cost an estimated $350,000.
Once these part samples are obtained, the Government requires reverse engineering efforts to be completed. This consists of several integration and fabrication processes that must be done for quality validation and testing, including detailed analysis of manufacturing the circuit cards. This also includes the implementation of several electrical, mechanical, and structural forms of integration within the assembly of the component and the recovery vehicle itself. The form, fit, and function must be validated throughout this process. The total cost of this is estimated to be $4,500,000 to the U.S Government in house reverse engineering facility.
After these processes are complete, there are several forms of qualification testing that are required. The RT Box Qualification Testing would include but is not limited to vibration, thermal, operational, shutdown limit, and washdown testing. In addition, there are various internal and external signal requirements that must be met as outlined in source control drawing 12365133. The total cost of this testing is estimated to be around $750,000.
Lastly, the Government must develop new documentation once qualification testing is completed. This process consists of engineering creating an Engineering Change Proposal (ECP) for the source-controlled drawing. An ECP will allow the Government to alter the drawing to represent that a new source(s) has been qualified for the component. This is done using Computer-Aided Design (CAD). Engineering must also work to develop the necessary changes and work with Configuration Management to release them. This total cost is estimated to be $10,000.
The Government would not be able to recover, through subsequent competition, the duplication of costs involved in the qualification of an additional source within a reasonable time frame. At the current usage rate of 12 units per year, at the current unit cost of $55,774.00 each, and assuming 10% savings achieved through competition, the $66,928.80 annual savings would take 84 years to offset the estimated $5,610,000 cost of qualifying another source.
6. Efforts to Obtain Competition:
a. Effective competition: Due to the reasons cited in section 5 above we are not pursuing competition for this item. This action will be synopsized in accordance with FAR 5.201.
b. Subcontracting competition: 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--
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CMO Control Number: 2023-095
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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: There are no plans to increase competition for future procurements due to the reasons cited above.
This item is source controlled to Benchmark Electronics Huntsville Inc., CAGE: 380Q6, and Ducommun Labarge Technologies, Inc., CAGE: 65648. These manufacturers are the only approved sources of supply for this item. Due to the duplication of costs involved in qualifying a new source, the Government is not actively pursuing qualifying a new source for future procurements.
8. Market Research: A Sources Sought Notice was posted to www.SAM.gov on 10 April, 2023 and was open for 11 days. No response received.
Additional Market Research Efforts:
Online market research was performed by Ground Vehicle System Center (GVSC) Engineering during December of 2022, by searching online vendor catalogs and product literature published, to find other manufacturers and/or commercial items or non-developmental items that could meet Government needs or could be modified to meet Government needs.
Upon review it was determined that while there are many vendors that have the capability to manufacture a Remote Terminal Unit, they do not meet the requirements in source control drawing 12365133 for approval. Some of the companies that were researched include Schweitzer Engineering Laboratories, Remsdaq, and Emerson. Any potential new vendors would require extensive analysis, prototyping, and vehicle testing as described in section 5 above to ensure that the M88 vehicle will properly meet performance specifications with a new supplier’s hardware.
Websites:
1. https://selinc.com/products/automation/control/rtu/
2. Emerson Remote Terminal Unit (RTU) - FB3000 RTU | Emerson US
3. https://www.remsdaq.com/solutions/scada-systems-manufacturers/scada-remote-terminal-units/
4. Remote terminal unit, RTU - All industrial manufacturers (directindustry.com)
9. Interested Sources: To date no additional sources have expressed interest in this item.
10. Other Facts:
File details come from the government source that posted it. Updated .