JA_SPRDL1-18-R-0190_Signed_Redacted.pdf

J&A SPRDL1-18-R-0190

(Previous J&A SPRDL1-15-R-0342 is available and embedded in document)

Defense Logistics Agency

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity The Contracting Activity for this action is the Defense Logistics Agency - Warren (DLA - WRN)

2. Description of Action The proposed action is to award a new, firm fixed price contract with a 100% option for Kit, Permaswage Tool for the M1 Abrams. Competition will be limited to Designed Metal Connections Inc (CAGE 14798; P/N DLTFRPSKT3119). This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services The contractors shall provide the Kit, Permaswage Tool for M1 Abrams per part number DLTFRPSKT3119. The unit value is $ and quantity of this contract is 31 each with option quantity of 31 each. The estimated value of the contract is $ with option value $ for a total estimated value of $ .

Acquisition Method Code (AMC): 3 - Acquire, for the second or subsequent time, directly from the manufacturer.

Acquisition Method Suffix Code: (AMSC): 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.

4. Authority Cited The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited The Permaswage Kit, part number 13010502, is used for all Abrams M1 series vehicles. The kit includes repair tools for the Abrams hydraulic systems (Fuel, Hull and Turret actuating mechanisms and brake lines). Permaswage fittings are radial compressed (mechanically attached) onto compatible tubing to provide a permanent joint with metal to metal sealing. The fitting to tube relationship is affected by differential springback caused by the annealed condition of the connector, relative to the tubing. Fittings contain one (stainless/titanium) or two (aluminum) silicone seals which seals potential leak paths with tube surface defects. This kit provides necessary repair tools to provide leak proof protection for the various fluid transfer lines integral to the vehicle’s operation. These tools are used to provide effective hydraulic line fitting connections for all of the Abram’s hydraulic system lines.

Because of this unique capability, the Permaswage Kit is critical to Abrams vehicle readiness.

A failure of the system’s hydraulics under battlefield conditions would make the vehicle unsafe (loss of braking system and fuel line leakage) and non operable (loss of all hull and turret hydraulic actuating systems), thus rendering the vehicle unable to proceed with its mission function.

The Permaswage Kit components are source controlled to Designed Metal Connections Inc. as shown on drawing 13010502. There are no detailed drawings for these items or dimensions for their manufacture. The Government does not own the data necessary to produce these components (property of Designed Metal Connections Inc). The individual detailed dimensions of these components are not available to the Government and as such, a completely competitive Technical Data Package (TDP) is not available. Any other source of supply is required to produce, test and receive Government approval of the proposed parts prior to acquisition. There are also 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 before releasing the design. This delay would severely impact the availability of these items in the field and Anniston Army Depot's rebuild program.

Only Designed Metal Connections Inc. has the requisite technical and engineering expertise to perform all efforts required to provide the Permaswage Kit. The current source has qualified in accordance with all the necessary test requirements and performance parameters during initial test and development of the Abrams weapon system. The approved source identified above has demonstrated the ability to establish and maintain the processing required to produce these items. Extensive use of Design Metal Connections’s swaging components throughout the vehicle’s initial development and usage since, have proven these items to be acceptable.

Through our previous experience, we estimate that the cost to develop a competitive package for these items through reverse engineering could run as high as $300K. This would require an estimated delay of at least twelve months to include fabrication and laboratory pressure testing of swaged hydraulic lines produced from the prototype hardware before releasing a validated TDP. Qualification and durability testing at Yuma Proving Grounds would also be required.

This type of testing requires an additional 12 month 6,000 mile test on three different vehicles whose hydraulic systems these prototype swaging tools were used on. This would cost an estimated each. The total expense is estimated to be . To do otherwise would pose high risk, and risk premature failure of the vehicle’s hydraulics in the field would result in severe consequences (i.e. fuel line fire).

The Government does not have the funds available nor will the Government recover the costs to reverse engineer the permaswage kit and qualify an additional source of supply. At the current average demand at 11 Permaswage Kits year, at the current unit cost of , and assuming a 25% savings achieved through competition, the annual savings will take

9.5 years to offset the estimated cost of qualifying another source.

There are 9 each total backorders, 4 of which are resulting in vehicles being non-mission capable. Several orders are over a year old. As a mission critical item for Abrams readiness, the Government cannot wait the estimated 2 years to develop a competitive kit TDP and qualify a new source as there is an immediate need for the parts. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts to support the fielding schedule requirements of this procurement.

6. Efforts to Obtain Competition There is no TDP available to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements. This item, Permaswage Tool Kit NSN: 5180-01- 527-5603 appears on the Competition Advocates Shopping List dated 31 Jul 2017. Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

7. Actions to Increase Competition There is no TDP available to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements. This item, Permaswage Tool Kit NSN: 5180-01- 527-5603 appears on the Competition Advocates Shopping List dated 31 Jul 2017. Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

8. Market Research Market research was completed by TARDEC Engineering on 29 Sep 2017 by reviewing the capabilities of vendors with expertise in this field to include, Parker Hannifin Instrumentation Products Div. at http://ph.parker.com/us/17554/en/instrumentation-products-division-products, Arconic Fastening Systems and Rings at http://catalog.arconicfastenersandrings.com/advanced/keenserts-reg-inserts-special-purpose-inserts/special-purpose-hydraulic-high-pressure., and G&G Hydraulics Corporation at https://www.gghyd.com/. Review of the vendors listed above showed that although these companies have technical capabilities to produce the items comprised in the kit, they don’t provide the exact type of components needed. New vendors would require extensive analysis, prototyping, and vehicle testing as described in section 5 above to ensure that the Abrams will properly meet performance specifications with a new supplier’s hardware. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source. There are no other sources who have the potential to make this kit to meet the needs of an immediate procurement. TARDEC Engineering also contacted Designed Metal Connections Inc. and confirmed that they can and will provide the parts.

J&A SPRDL1-18-R-0190

9. Interested Sources A Sources Sought Synopsis was posted on to FedBizOpps on 09/29/2017 and is valid for one year. To date, no sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this NSN. The notices required by FAR 5.201 have been published and any other bid or proposals received will be considered.

Sources Sought Notice has been submitted to Fed Biz Opps on 09/29/2017

Item Name: Kit, Permaswage Tool

NSN: 5180-01-527-5603

Part Number: 13010501, DLTFRPSKT3119 End Item: M1 Abrams Tank FOV

Sources Sought.pdf

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history:

Contract: SPRDL1-17-C-0166 Award Date: 05/23/17 Contractor: Wesco Aircraft Value: $457,702.40 Competitive Status: Limited Source Authority Cited: FAR 6.302-1, Only One Responsible Source

b. Acquisition data availability The Government does not own or have rights to the technical data for the Supercharger used on HEMTT for this procurement.

c. Unusual and compelling urgency n/a

d. Subcontracting competition The government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR19.704.

11. Technical Certification:

The POC for this action is , , , I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name:

Title:

Signature:

Date: 17 Jan 2018 Email:

Name:

Title:

Signature: //s// Date:1/19/2018 Email:

12. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Item Manager:

Date:6 February 2018

Name:

Title:

Signature:

Date: 13 Feb 2018

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. I certify that this justification is accurate and complete to the best of my knowledge and belief. Cost analysis or price analysis will be utilized if applicable.

Typed Name: Jeffrey J. Mahlmeister Title: Contracting Officer Signature: //JJM// Date: 03/04/2018

15. Legal Certification:

Concur:

Date: 03/07/2018

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: Kit, Permaswage Tool

b. NSN: 5180-01-527-5603

c. Basic Quantity: 31

d. Basic Estimated Value: $

e. Option Percent: 100%

f. Quantity with Option: 62

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 provision that the property herein described has otherwise been authorized for acquisition.

Signature:

Date: 15 Mar 2018