JA SPRDL1-19-R-0111_Redacted.pdf

J&A SPRDL1-19-R-0111

(Previous J&A SPRDL1-16-R-0314 is available)

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: Defense Logistics Agency – DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to award a new hardware contract on a sole source basis to Woodward HRT, Inc. (CAGE Code: 81873), for the procurement of a SERVOVALVE, HYDRAULI. Army Working Capital Funds (AWCF) will be used and the contract type is Firm Fixed Price.

3. Description of Supplies/Services:

a. Noun: SERVOVALVE,HYDRAULI

b. NSN: 4810-01-391-8454

c. Part Number: 9377768

d. LTC Minimum: 43 Ea

e. LTC Maximum: 798 Ea

f. Unit Price Minimum:

g. Contract Value Maximum:

h. Vehicle System: Abrams M1A1 & M1A2

i. PRON: EH81L613EH

j. Type Of Contract: Firm Fixed Price

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

l. 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 (TDP), 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 Title 10 United States Code (U.S.C.) Section 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: This item, Servomechanism, Traverseis a critical component of the M1A1 and M1A2 Abrams Family of Vehicles. This item is source controlled (sole source) to Woodward HRT, Inc. (CAGE Code: 81873); the actual (or original equipment) developer and manufacturer. The Government does not own proprietary rights to Woodward HRT, Inc.’s data that would be required to produce a competitive TDP. The current Servomechanism drawing/TDP, drawing No. 9377768 (a source controlled drawing), does not contain adequate technical data and/or information necessary to support a full and open competition. Woodward HRT, Inc. 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. Woodward HRT, Inc. developed, tested and obtained the Government's approval of this item for the M1 Abrams’ Servomechanism at their own expense. The Government did not fund Woodward HRT, Inc.’s efforts in developing and testing this item. Additionally, the Government did not fund Woodward HRT, Inc. to prepare fully detailed TDPs. As such, Woodward HRT, Inc. is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the Woodward HRT, Inc. data that would be required to produce a competitive TDP.

6. Efforts to Obtain 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 TDP for this item through reverse engineering could run as high as $1,000,000.00 and require an estimated delay of at least 12 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 $500,000.00 and about 6 months for the U.S. Army/ARDEC engineers to develop Government requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost $200,000.00 and take at least 6 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 requirements, and engineering analysis would be at least $1,700,000.00 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 24 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 efforts 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.

7. Actions to Increase Competition: No contractors are in the process of being qualified at this time, nor will be prior to the contract award, due to funding constraints. Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

Qualifying a new source would require a substantial expenditure of the limited funding that has been provided to support the Abrams Vehicles. New sources would require the development of extensive testing and processing procedures. The additional time required for these actions would prohibit delivery of this item in a time frame that would meet the Government’s requirements.

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 to produce a competitive TDP. Any new vendor that decides to pursue the qualification process will be directed to the Competition Advocate’s Source Approval Program.

The Competition Management Office (CMP) will encourage interested parties to submit a Source Approval Request (SAR) for future buys.

8. Market Research: During December 2018 market research was performed by ARDEC Engineering. At that time, ARDEC Engineering determined the SERVO, MECHANISM, P/N:

9377768, is a unique military item. No commercial equivalent exists, therefore no commercial item will satisfy the Army's need for the Servomechanism.

Sources sought notice was posted on Fed Biz Opps as 2019-146 on 20 December 2018.

Component: Servovalve, Hydraulic

NSN: 4810‐01‐391‐8454

Part Number: 9377768 End Item: M1A2 Abrams Tank

Fed Biz Opps Link:

https://www.fbo.gov/index.php?s=opportunity&mode=form&id=74e951884bff0e2f269a0 d7f54141214&tab=core& cview=0

POC: RDAR-EIS-CL,

On 04 February 2019, general market research was performed by the Contract Specialist for publicly available information online for: Servo, Mechanism / Servo, Mechanism Vendors / and Servo Vendors (P/N: 9377768). This research included searching for published material on new

13. Fair and Reasonable Cost 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 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. Certified cost and pricing data will be required.

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Jamal M. Brooks Date: ___02/04/2019________________ Title: Chief, Weapons / Soldier Branch Signature: __//s//_____________

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Jamal M. Brooks Date: ___02/04/2019________________ Title: Chief, Weapons / Soldier Branch Signature: _//s//_____________

15. Legal Concurrence:

Typed Name: Date: __2/7/2019 Title: Legal Advisor Signature:

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: SERVOVALVE, HYDRAULI

b. NSN: 4810-01-391-8454

c. Part Number: 9377768

d. LTC: (Minimum: 43 Ea, Maximum: 798 Ea)

e. Unit price Minimum:

f. Contract Value Maximum:

g. Vehicle System: Abrams M1A1 & M1A2

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.