JA_SPRDL1-16-R-0427_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-16-R-0427

No previous J&A Exists: This is a first time buy

CMO Control Number: [Completed by Comp. Mgt. Office]

SPRDL1-16-R-0427

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency – Warren (DLA – 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 requirements."

PART I - Description of Item Required:

a. NOUN: Power Supply

b. QUANTITY: 106

OPTION QUANTITY: 106

c. NSN: 6120-01-619-1559

d. MPN: 12473977-3

PL29478REV.F

e. VEHICLE SYSTEM: M1 Abrams Tank

f. ACQUISITION MEHTOD CODE: 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

g. ACQUISITION METHOD SUFFIX CODE: B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

h. ESTIMATED UNIT PRICE: $8,404.85

i. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

j. PRON NUMBER: EH6T0055EH

k. TYPE OF FUNDS: Army Working Capital Fund (AWCF)

l. TYPE OF CONTRACT: Firm Fixed Price (FFP)

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above item. The only approved source(s) for the above item is (are):

a. Contractor(s) Name: Rantec Power Systems, Inc.

Cage: 60132 Part Number: 12473977

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

a. Status of the Acquisition Data:

The unique military grade of the Power Supply is an integral part of the Fire Control which is used on the M1 Abrams Series Tank.

The Technical Data Package (TDP) acquisition production specification data is not fully defined and not suitable for full and open competition. The unique military grade Power Supply was developed, designed, built, and tested at Rantec Power Systems Inc.

expense. Thus, Rantec LLC owns the proprietary rights to the technical/design data for these item(s).

Currently, Rantec is the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability and quality testing capabilities necessary to produce this item.

The lack of data makes it necessary to procure this item on a non-competitive basis from the listed source.

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

ARDEC-RI engineers estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $700,000 and require an estimated delay of at least 20 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Since there are no procedures in place to determine whether other sources are qualified to meet the government’s requirements, it would then take an additional $550,000 and take at least 18 months for the U.S.

Army/ARDEC engineers to develop government’s requirements for the prospective contractor to repair the items listed in section 3. Finally, it would cost $850,000 and take at least 24 months to conduct the actual Engineering analysis to determine if the new source has become approved in accordance with the newly competitive TDP. This would include the cost for any additional test equipment or fixtures, higher level assemblies and or end item systems, required to test this part and any costs for test facilities as applicable.

The aggregate costs associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements, and engineering analysis would be at least $2,100K dollars ($2,100,000) which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for the development of a competitive TDP is at least 62 months. A delay of this scale is unacceptable in fulfilling the army’s requirements and would have significant detrimental impact on the army’s ability to support the soldier in the field and will jeopardize the Fire Control function of the M1 Abrams Series Tank.

c. Demonstration of Approved Contractor's Unique Qualifications:

Rantec Power Systems Inc. has the requisite technical and engineering expertise to perform all efforts required to provide the Power Supply. Rantec Power Systems Inc.

has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item.

In addition to being the sole owner of the drawings and technical data rights, Rantec Power Systems Inc. is the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability, and quality testing capabilities necessary to produce, and deliver this item.

d. Efforts to Qualify Additional Suppliers for future procurements:

There are no efforts to obtain competition for this action on the prime contractor level due to the duplication of costs and unacceptable delays the Government would incur as described in section b “Efforts to Develop a Competitive Package”. This action will be synopsized upon approval of this J&A as required by FAR 5.201. Interested contractors can seek qualification through the Source Approval Program within the Competition Management Office. An email address was provided in the synopsis. The requirement was synopsized in FedBizOpps to maximize subcontracting opportunities as required by

FAR 5.201.

e. Market Research:

This item does not appear on the Advanced Planning Briefings for Industry (APBI) (Summary of Estimated Future Buys – Fiscal Years 2017 and 2018).

On August 25, 2016, ARDEC-Rock Island engineer conducted a Google search of the entire World Wide Web for the words Power Supply. The results of this search did not yield any information about new production sources for this item. There are no other commercial or non-developmental items available to meet the Government's need or that could be economically modified to meet the Government's need that can operate on the Fire Control function as part of the M1A1 ABRAMS TANK.

On 26 August 2016, A Sources Sought Synopsis was requested. To date, no additional contractors have expressed an interest in this item.

3. The POC for this action is

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

Title:

Signature:/ // Date: 30 Aug 2016

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH6T0055EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date:30-August-2016

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

Name:

Title:

Signature:

Date: 19-Sep-2016

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-16-R-0427. It is proposed to negotiate a Firm-Fixed-Price contract with Rantec Power Systems for their part number 12473977. The unique military grade Power Supply was developed, designed, built, and tested at Rantec Power Systems Inc.

expense. Thus, Rantec LLC owns the proprietary rights to the technical/design data for these item(s).

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source(s), 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 to the Government 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. Due to the dollar value of this procurement, certified cost and pricing data will be required IAW FAR 15.403.

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

Name: Marlene J. Scheele Title: Contracting Officer Signature: /s/ Date: 20 Sep 16

PART V - Legal Concurrence

Concur: // Date: 22 Sept 2016

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $700,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Power Supply

b. NSN: 6120-01-619-1559

c. Basic Quantity: 106

d. Basic Estimated Value: $

e. Option Percent: 100%

f. Quantity with Option: 212

g. Estimated Value with Option: $

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Date: 9/30/2016