JA_6.302-1_SPRDL116R0346_REDACTED.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-16-R-0346

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense logistics Agency (DLA Land-Warren) is the procuring activity for this action. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

PART I - Description of Item Required:

a. NOUN: Lubricating Cooler

b. BASIC QUANTITY: 240

OPTION QUANITY: 240

TOTAL QUANTITY: 480

c. NSN: 2930-01-424-6731

d. MPNs: E9AR106-001 and 388010090

e. VEHICLE SYSTEM: M88A2

f. ESTIMATED UNIT PRICE: $ 1,217.02

g. ESTIMATED VALUE: $292,084.80

ESTIMATED OPTION VALUE: $292,084.80

ESTIMATED TOTAL VALUE: $584,169.60

h. PRON NUMBER: EH66E120EH

i. TYPE OF FUNDS: C-AWCF (DBOF)

j. TYPE OF CONTRACT: Firm Fixed-Price

k. ACQUISITION METHOD CODE: 3-- Acquire, for the second or subsequent time, directly from the actual manufacturer.

l. ACQUISITION METHOD SUFFIX CODE: H--The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different

AMSC.

PART II - Technical Information and Certification

1. The US Army TACOM Lifecycle Management Command (LCMC) requires the acquisition of the above item. The only approved sources for the above item are:

Contractors Names: L-3 Communications Corporation

CAGE Code: 02978 Part Number: E9AR106-001

TECMOTIV (USA), Inc.

CAGE Code: 07LR7 Part Number: 388010090

2. Reasons the item is not suitable for full and open competition:

a. Status of the Acquisition Data:

The above identified sources, L3 Communications and TECMOTIV

(USA), Inc., developed, tested, and obtained Government approval of this item for application to the M88A2 engine at their cost. The Government did not fund the vendors’ efforts in developing and testing this item.

Additionally, the Government did not fund the vendors to prepare a fully detailed technical data package (TDP) after approval. As such, L3 Communications and TECMOTIV (USA), Inc. are the sole source owners of their drawing packages and technical data rights; and the Government does not own proprietary rights to the technical data that would be required to produce a competitive TDP.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

(1) Funds are not available to acquire the data necessary to support a competitive acquisition. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. This delay would severely impact the availability of the oil pump assembly. We estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $2M and could require an estimated delay of at least 24 months to include fabrication and testing of the prototype hardware and releasing a validated TDP. Added to these costs and delays would be the costs and time involved to test and qualify additional sources. Durability testing would be required to prove out this item manufactured by a new source(s) at an estimated cost of an additional $1.0M and a delay of 12-18 months. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts at this time.

(2) Based on limited past Haystack procurement data, the Government would not be able to recover through subsequent competition the additional costs involved to allow the procurement to become competitive.

(3) If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least thirty-six (36) months would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs.

c. Demonstration of Approved Contractor's Unique Qualifications:

The item to be procured is a critical component of a highly specialized engine assembly which operates in a unique military weapons system. The approved sources of the item to be procured have demonstrated the ability to establish and maintain the processing required to produce the item to be procured. In addition, the approved sources’ item has met the NATO requirement for successful completion of NATO Laboratory Test for Diesel and Spark Ignition Engines AEP-5, Allied Engineering Publication while operating in an AVDS1790-8CR engine or equivalent. The AVDS1790-8CR is a 1050 horsepower (Hp) engine and is required for item testing due to its usage in the M88A2 HRV and higher horsepower capability as opposed to the AVDS1790-2 (750 Hp) series of engines which also uses the item to be procured.

d. Efforts to Qualify Additional Suppliers for future procurements:

Due to the critical nature of this item, it is required that the item meet the NATO requirement for successful completion of the NATO Laboratory Test for Diesel and Spark Ignition Engines AEP-5, Allied Engineering Publication while operating in an AVDS1790-8CR engine or equivalent.

This requirement must be accomplished prior to contract award. The amount of time required to complete the above requirement related to the assembly of an engine with the supplier’s item, operational testing of the supplier’s item in the engine, and engine disassembly and examination of the supplier’s item would cause unacceptable delays (12 months) in fulfilling agency’s requirements. A new source would also require a tooling adjustment, and the development of new and extensive processing procedures would result in additional delays of up to 12 months. An award to any other source would also cause a substantial duplication of costs (estimated at $1.0 Mil) to the Government not expected to be recovered through competition. In addition, qualifying a new source would require an expenditure of funding that is not presently available for such activity. The combination of the qualification test delays, the delays associated with tool adjustment and development of new processing procedure, and the lack of available funding necessary to conduct the required testing, would prohibit delivery of the item to be procured in a time frame that would meet the Government’s requirements. Therefore, no efforts have been or are being taken to qualify additional sources of supply at this time for the item to be procured.

e. Market Research:

(1) A Sources Sought Synopsis was requested by DLA Land-

Warren on 16 Jun 2016. While other sources are available to produce similar items, none of these sources have produced this specific item for military application, and none have completed the necessary testing to become a qualified source. Vendors interested in competing are instructed to contact the Competition Advocate’s Office. To date, no additional vendors have expressed an interest in this item.

(2) A market survey was conducted by TACOM engineering by reviewing catalogs and other generally available product literature published by manufacturers, distributors and dealers, or available on-line.

To date, there has not been any expressed interest by any known vendor to become qualified source to produce this item.

3. The POC for this action:

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief.

Name:

Title:

Signature: //s// Date: 09/09/2016

Name:

Title:

Signature: //S// Date: 09 September 2016

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH66E120EH as to required quantities and delivery schedules are accurate and complete.

Name:

Title:

Signature: //s// Date: _5/2/2016

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Name: __ ______________ Title: __ _______ Signature: __//s// ______

Date: ___6/22/2016_____________

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-16-R-0346. It is proposed to negotiate a firm fixed-price contract with either L3 Communications or TECMOTIV (USA), Inc. for the Lubricating Cooler; either manufacturer part number E9AR106-001 or 388010090, respectively. The technical data and proprietary rights are not owned by the Government.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above sources, every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. 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. In accordance with FAR 15.403-4, certified cost or pricing data will not be required. However, other than cost or pricing data may be obtained to support a price reasonableness determination.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Morris Belleville Title: Contracting Officer Signature: Morris A. Belleville /S/

Date: 09/14/2016

PART V - Legal Concurrence

Concur : //signed/ // Date: 9/14/2016