JA SPRDL1-19-R-0136 Redacted.pdf

J&A SPRDL1-19-R-0136

Previous J&A SPRDL1-16-R-0091 is available in the contract file.

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: The procuring activity for this action is the Defense Logistics Agency Land – Warren (DLA Land – Warren).

2. Description of Action: The proposed action is to award a contract on a sole source basis to Kearfott Navigation & Guidance Corporation, Cage Code 05088, for the manufacturing of new “Capture Loop Circuit Card Assembly (CCA)” The type of funds to be used are Army Working Capital Fund (AWCF). The type of contract is Firm Fixed Price.

3. Description of Supplies/Services:

Noun: Capture Loop Circuit Card Assembly (CCA)

NSN: 5998-01-078-3885

Part Number: 12281217 (Vendor PN: A538P107-02)

Quantity: 149 EA.

Option Quantity: 149 EA.

Unit Price:

Estimated Total Value:

Estimated Total Value with Option:

Vehicle system: M1A2S KSA Abrams Tank

PRON Number: EH8E1674EH

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 customized military-grade Capture Loop Circuit Card Assembly (CCA) (P/N: 12281217) which interfaces with the Los Servo Torque Drive Assembly and GPS Body Assembly which is used on multiple configurations of the M1A1 Abrams Tank. The government only has limited rights in accordance with DFARS 252.227- 7013 and 7017; however; the Technical Data Package (TDP) for the customized Capture Loop Circuit Card Assembly (CCA) is considered inadequate for competitive procurement because it is a source control top drawing with only one source and the drawing does not disclose all the information necessary to produce the Capture Loop Circuit Card Assembly (CCA). The unique military grade Capture Loop Circuit Card Assembly (CCA) was developed, designed, built, and tested at Kearfott Corporation’ s expense. Thus, this item is proprietary to Kearfott Corporation, who is the original equipment manufacturer.

Thus, no contractor other than Kearfott Corporation (CC: 05088) has been authorized/approved to manufacture and provide the Capture Loop Circuit Card Assembly (CCA) to the government.

Based on the above information, sole source procurement to Kearfott Corporation is the only method of procurement currently available to insure supportability of fielded vehicles.

6. Efforts to Obtain Competition: No vendors are in the process of being qualified at this time, nor will be prior to the contract award.

The Government intends to solicit only Kearfott Corporation based on the rationale provided in paragraph 5 above. The notices required by FAR 5.201 shall be published for this effort, and any bids or proposals received will be considered. There has not been any expressed interest by any known contractors to become a qualified source to produce this Capture Loop Circuit Card Assembly (CCA).

To ensure the contractor competitively awards subcontracts to the maximum extent possible, the contract will contain FAR Clauses 52.244-5, “Competition in Subcontracting,” and 52.244- 2, “Subcontracts.” Kearfott Corporation will also be required to submit subcontracting plans for review and approval.

Any new vendor who decides to pursue the qualification process will be directed to the Competition Advocate’s Source Approval Program.

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

7. Actions 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. In addition to not having the information necessary to develop a competitive TDP, ARDEC-RI engineer estimates that the cost to develop a competitive package for this item through reverse engineering, qualification procedures and engineering analysis are listed below:

Estimated costs associated with reverse engineering: $550,000 Estimated time associated with reverse engineering: 12 months Estimated costs associated with the development of qualification procedures: $300,000 Estimated time associated with the development of qualification procedures: 12 months Estimated costs associated with the conducting engineering analysis: $900,000 Estimated time associated with the conducting engineering analysis: 12 months

This Capture Loop Circuit Card Assembly (CCA) is a Nuclear Hardness Critical item which means Nuclear Hardness and Survivability Testing (NH&ST) is required. Nuclear Hardness and Survivability Testing (NH&ST) includes nuclear testing, physical testing in a simulated environment, modeling, simulation, and analysis. The NH&ST, as well as the Nuclear Survivability Assessment (electronic microcircuit test phase, system analysis test phase, and system level test phase), would be conducted at the U.S. Army Test and Evaluation Command.

The estimated cost to conduct NH&ST is $60,000 and would take at least 6 months to complete.

The aggregate cost of reverse engineering; writing the qualification procedures and conducting an engineering analysis would be at least one million eight hundred ten thousand dollars ($1,810,000) which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for reverse Capture Loop Circuit Card Assembly (CCA); the preparation of qualification procedures and for the engineering analysis to determine if a new source met the qualification procedures is at least forty-two months. Thus a delay of this scale is unacceptable in fulfilling the army’s requirements; would have significant detrimental impact on the army’s ability to support the soldier in the field; Army readiness; would cripple the Los Servo Torque Drive Assembly and GPS Body Assembly which would jeopardize the crew’s safety and hinder its ability to fight as well as deadline the M1A1 Abrams Tank.

Note: This will not be a government funded reverse engineering effort because Kearfott Corporation has more than enough customized military grade Capture Loop Circuit Card Assembly (CCA) available. Thus, if any contractor decides to take on an effort to reverse engineer and/or procure proprietary data, the new contractor will be solely responsible for taking on all of the cost listed in the above paragraphs.

8. Market Research: On January 7, 2019, the ARDEC-Rock Island CMO/Engineer conducted computer based market research for the customized military grade Capture Loop Circuit Card Assembly (CCA). The results of this research did not yield new production sources for this item. There are no commercial equivalents or non-developmental items available to meet the Government's requirements or that will satisfy the Government need without qualification testing.

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

Typed Name: Morris Belleville Title: Contracting Officer Date: 03/08/2019 Signature: Morris A. Belleville /S/

14. Legal Concurrence:

Concur:

03/14/2019

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: CIRCUIT CARD ASSEMBLY

b. NSN: 5998-01-078-3885

c. Basic Quantity: 149 EA.

d. Basic Estimated Value:

e. Option Percent: 100%

f. Quantity with Option: 149 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 provision that the property herein described has otherwise been authorized for acquisition.

Signature:

Date:

SHEARER.MARY.E.125070244

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.25 09:26:41 -04'00'