JA_SPRDL1-17-R-0174_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-17-R-0174

No previous J&A is available

SPRDL1-17-R-0174

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency Land - Warren (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 requirements."

PART I - Description of Item Required:

a. NAME: MAINTENANCE KIT, ELEC CONNECTOR

b. QUANTITY: 68

OPTION QUANTITY: 68

TOTAL QUANTITY : 136

c. NSN: 5935-01-436-9147

d. MPN: 57K2935/19207

e. VEHICLE SYSTEM: M1A2 SEP

f. Acquisition Method Code: 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

g. Acquisition Method Suffix Code: C - This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application.

h. ESTIMATED UNIT PRICE:

i. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

j. PRON NUMBER: EH7C0561EH

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 United States Army TACOM Life Cycle Management Command (TACOM LCMC) requires the acquisition of the above item. The only approved source(s) for the above item is (are):

a. Contractor Name: DANIELS MFG CORP Cage: 11851

MPN: 57K2935

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

a. Status of the Acquisition Data: DANIELS MFG CORP is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

(1) The above identified approved source developed, tested, and obtained Government approval of the Maintenance Kit, Electrical Connector for application to the M1A2 SEP at their cost. The Government did not fund their efforts in developing and testing this item. Additionally, the Government did not fund them to prepare fully detailed TDPs after approval. As such, DANIELS MFG CORP is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP 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) There are no current plans to acquire a competitive TDP because 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. Through previous experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $250K and could require an estimated delay of at least twelve months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Added to these costs and delays would be the time involved to test and qualify another source. Qualification and durability testing would be required to prove out this item manufactured by a new source(s) at an estimated cost of an additional $250K and delay of 6-12 months. To do otherwise would be a high risk as a premature failure of this item in the field could result in an extensive loss of the equipment and probable loss of lives. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering effort at this time.

(2) 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 18-24 months would occur. This delay would adversely impact the Army's readiness rate.

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) The approved source, DANIELS MFG CORP, is the sole owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP.

(2) Only DANIELS MFG CORP has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J&A. This Maintenance Kit, Electrical Connector is a major component of the M1A2 SEP. The Maintenance Kit, Electrical Connector contains nuclear hardness critical items marked HCI. All design changes must be evaluated for nuclear hardness impacts by the engineering activity responsible for nuclear survivability prior to implementation. In addition, this product must comply with the nuclear criteria responsible for nuclear survivability of the M1A2-SEP. DANIELS MFG CORP has demonstrated and proven to meet the requirements and fabrication of the Maintenance Kit, Electrical Connector to continually manufacture this critical item.

(3) The approved source identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. In addition, the item has been proven acceptable through extensive vehicle testing. An award to any other source would cause a substantial duplication of cost to the Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling the agency’s requirements. Qualifying a new source would require a substantial expenditure. A new source would require tooling adjustment and development of extensive processing procedure. The additional time required for these actions would prohibit delivery of the item in a time frame that would meet the Government’s requirements. The item required is mission critical in that a failure of this item during operation in an M1A2 SEP would cause extensive and extremely costly damage.

d. Efforts to Qualify Additional Suppliers for future procurements:

(1) No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

(2) At this time, there are no current or planned efforts to qualify additional sources due to the fact that there is no technical data available, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements.

(3) Currently, there has not been any expressed interest by any known vendor to become a qualified source to produce this item.

(4) Any contractors interested can seek approval through the Source

Approval Program with the Competition Advocate.

e. Market Research: A Sources Sought synopsis was posted on 07 Feb 2017 to FedBizOpps (FBO). It will remain valid for 12 months from the date of posting.

Vendors interested in pursuing source approval on this item are instructed to contact the Source Approval Officer in the Competition Management Office. To date there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

3. The POC for this action is , Electrical Engineer, Ext.

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

Name:

Title: Electrical Engineer Signature: //s// Date: 13 FEB 2017

Name:

Title: Associate Director, Product Lifecycle Engineering Signature: //s// Date: 14 FEB 2017

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH7C0561EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date: 14 FEB 2017

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

Name:

Title: Team Leader Signature: //s// Date: 15 FEB 2017

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDl1-17-R-0174. It is proposed to negotiate a Firm-Fixed-Price contract with Daniels Mfg. for their part number 57K2935. Daniels Mfg. is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP

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 , OFFICE SYMBOL: , Ext.

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. Because this is a commercial item, certified cost and pricing data will not be required in accordance with FAR 15.403. However, other than certified cost and pricing data may be required in order to establish price reasonableness.

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: 9 Mar 17

PART V - Legal Concurrence

Concur:

Date: 03/10/2017

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: MAINTENANCE KIT, ELEC CONNECTOR

b. NSN: 5935-01-436-9147

c. Basic Quantity: 68

d. Basic Estimated Value:

e. Option Percent: 100%

f. Quantity with Option: 136

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: 16 Mar 2017