JA_SPRDL1-17-R-0452_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-17-R-0452

First Time Procurement – No previous J&A is available

PART II - Technical Information and Certification

1. The US Army TACOM Life Cycle Management Command (LCMC) requires the acquisition of the above item. The only approved source for the above item is:

Contractor Name: Rotron Incorporated Cage: 82877 Part Number: 011748

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

a. Status of the Acquisition Data:

(1) Rotron Incorporated developed, tested, and obtained Government approval of this item for application to the STRYKER 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 a fully detailed TDP after approval. As such, Rotron Incorporated is the sole owners of their drawings and technical data rights.

(2) The Government does not have rights to the data needed 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. A significant effort would be necessary to reverse engineer, procure and test prototypes, and release the design.

We estimate that the cost to develop a competitive package for this item through reverse engineering is $600,000 and would require a delay of 36 months Added to these costs and this delay is the cost and the time needed for a First Article Test for a new vendor. To do otherwise would be a risk as a premature failure of this item in the field could result in loss of equipment in a battlefield situation.

(2) The Government may not be able to recover through subsequent competition the costs needed to allow the procurement to become competitive. If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of 36 months would occur. This delay would adversely impact the Army’s readiness rate and operational and support (O & S) costs. With the given quantity of items, any cost savings per item may not justify the extreme cost of developing a competitive package.

Estimated costs

Project definition 2 months $50K Reverse engineer, create drawings 9 months $180K Obtain prototypes for test 9 months $75K Test 5 months $400K Create ECP and approve 5 months $35K

Total 30 months $740K

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) Rotron Incorporated is the sole owner of its drawings and technical data rights.

The Government did not buy the proprietary rights to produce a competitive TDP. This item is designed to prevent fires for the STRYKER family of vehicles by keeping equipment cooled.

Rotron Incorporated has the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this document. No vendors other than Rotron Incorporated have developed and integrated this item.

(2) 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. The use of incorrect material and/or improper process/quality control during manufacturing of this Fan would result in malfunctioning or even a complete failure of this item for what it is designed for. A persistent malfunction or failure of this Fan would result in air circulation issues to the vehicle. This can cause mechanical failures due to overheating as well as discomfort to the occupants of the vehicle. During peacetime, this kind of condition would force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate, until the damaged/malfunctioning Fan is either repaired or replaced.

(3) Only Rotron Incorporated Fans passed all unique characteristics. If an untested and/or non-approved Fan is utilized in the vehicle, this item may cause other equipment to have functional problems. This condition would force the Army unit to deadline the vehicle, impacting the Operational Readiness (OR) Rate, until the failed mounting kit is replaced.

d. Efforts to Qualify Additional Suppliers for future procurements:

(1) At this time, there are no current or planned efforts to qualify additional sources.

A potential new source must submit their design to the Competition Management Office. The source must then invest in tooling and manpower needed to produce the parts with no assurance that the final products will pass the qualification test requirements, let alone receive some assurance from the Government of the future business opportunity to recover the cost.

Furthermore, any new source would be required to pass extensive first article/validation testing at the component level. The additional time required for these actions would prevent the delivery of the items in a time frame that would satisfy the Government’s needs. There has not been any interest by any vendor to become a qualified source to produce this item.

(2) Any new vendor who decides to pursue the qualification process would be directed to go through the Competition Advocate's Source Approval Program. The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item for future buys.

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. Due to the estimated dollar value, certified cost and pricing data will be required in accordance with 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: Cynthia M. Fellows Title: Contracting Officer Signature: Cynthia M. Fellows /s/ Date: 8 August 2017

PART V - Legal Concurrence

Concur:

Date: 08/08/2017

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: FAN, CIRCULATING

b. NSN: 4140-01-508-7064

c. Basic Quantity: 522

d. Basic Estimated Value:

e. Option Percent: 100%

f. Quantity with Option: 1,044

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: 15 Aug 2017