JA_SPRDL1-18-R-0579_Redacted(1).pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-18-R-0579

Previous J&A can be provided upon request.

l. TYPE OF CONTRACT: Firm Fixed Price Contract

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: Kearfott Guidance and Navigation Corp Cage: 05088 Part Number: CU06338001

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

a. Status of the Acquisition Data:

This item, the Resolver, Differential, Gun Trunnion, is a critical component of the M1A1 Abrams Family of Vehicles. This item is a source controlled item to Kearfott (CAGE Code: 05088), who is the original equipment developer and manufacturer.

The Government does not own proprietary rights to Kearfott’s data that would be required to produce a competitive TDP. The current Differential Resolver drawing/TDP, drawing No. 12273251, a source control drawing, does not contain adequate technical data and/or information necessary to support a full and open competition. Kearfott is the actual (or original equipment) manufacturer and the only known source that possesses the required technical knowledge and engineering expertise to successfully manufacture this item per the current TDP. Kearfott developed, tested and obtained the Government's approval of this item for the M1A1 Differential Resolver at their own expense. The Government did not fund Kearfott’s efforts in developing and testing this item. Additionally, the Government did not fund Kearfott to prepare fully detailed TDPs. As such, Kearfott is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the Kearfott’s data that would be required to produce a competitive TDP.

b. Efforts to Increase Competition:

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.

ARDEC-RI engineering estimates that the cost to develop a competitive technical data package (TDP) for this item through reverse engineering could run as high as $1,500,000 and require an estimated delay of at least 36 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

$300,000 and take about 12 months for the U.S. Army/ARDEC engineers to develop government’s requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost $300,000 and take at least 12 months to conduct the actual Engineering analysis to determine if a 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 overall costs associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements and engineering analysis would be at least $2,100,000.00 dollars 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 60 months. A delay of this scale is not considered acceptable 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 availability and supportability of Abrams FOV.

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. These stated costs would be very difficult to be recouped through subsequent competition and the consequential time delay for this effort is unacceptable to meet the Government's requirements.

c. Demonstration of Approved Contractor's Unique Qualifications:

Kearfott is the sole owner of their drawings and technical data rights. The Government did not purchase Kearfott’s proprietary rights to produce a competitive TDP. Only Kearfott has the requisite technical and engineering expertise to perform all efforts required to produce this support plate assembly. Kearfott has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. Also, the item has been proven acceptable through extensive vehicle testing. An award to any other source would cause a substantial duplication of costs 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 procedures. The additional time required for these actions would preclude delivery of the item in a time frame that would meet the Government’s requirements.

Signature: Morris A. Belleville /S/ Date: 09/13/2018

PART V - Legal Concurrence

Concur:

Date: 09/14/2018

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $700,000.00

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: Revolver, Differential, Gun Trunnion

b. NSN: 5990-01-076-6858

c. Basic Quantity: 391 EA

d. Basic Estimated Value:

e. Option Percent: 100

f. Quantity with Option: 782 EA

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:

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.125070

Date: 2018.09.18 14:29:37 -04'00'