JA SPRDL1-19-R-0347 Redacted.pdf

J&A SPRDL1-19-R-0347

(Previous J&A SPRDL118C0343 filed in PCF)

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a new long term contract for Circuit Card Assembly. Competition will be limited to Data Device Corporation.

(cage 19645). This action will be funded with Army Working Capital Funds (AWCF) and is firm fixed price.

3. Description of Supplies/Services: The contractor shall provide the Circuit Card Assembly per P/N: 12489818. Estimated unit value is and mininium five year quantity of this contract is 23 units each and the maximum 5 year quantity is 709 units each. Minimum estimated value of the contract is and the maximum estimated value is

a. Noun: Circuit Card Assembly C

b. NSN: 5998-01-557-9272

c. Part Number: 12489818

d. Qauntity Minimum: 23 Ea

e. Quantity Maximum: 709 Ea.

f. Unit Price:

g. Minimum Contract Value:

Maximum Contract Value:

h. Vehicle System: M1A2 ABRAMS FOV

i. PRON: EH9L0676EH

j. Type Of Contract: Firm Fixed Price

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

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.”

FAR 6.302-1 provides that “supplies may be deemed available only from one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited

This item, Embedded Remote Switching Module, is a critical component of the M1A2 Abrams Family of Vehicles. This item is a source controlled item (sole source) to Data Device Corp (CAGE Code: 19465), who is the actual (or original equipment) developer and manufacturer. The Government does not own proprietary rights to Data Device Corp’s data that would be required to produce a competitive TDP. The current Switching Module drawing/TDP, drawing No. 12489818, a source control drawing, does not contain adequate technical data and/or information necessary to support a full and open competition. Data Device Corp 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. Data Device Corp developed, tested and obtained the Government's approval of this item for the M1 Abrams’ Switching Module at their own expense. The Government did not fund Data Device Corp’s efforts in developing and testing this item. Additionally, the Government did not fund Data Device Corp to prepare fully detailed TDPs. As such, Data Device Corp is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the Data Device Corp 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.

CCDC Armaments Center engineering estimates that the cost to develop a competitive technical data package (TDP) for this item through reverse engineering could run as high as $500,000 and require an estimated delay of at least 24 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 $100,000 and about 6 months for the U.S. Army/ CCDC Armaments Center engineers to develop the government’s requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost $600,000 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 $1,200,000.00 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 42 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.

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 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.

8. Market Research:

In August 2019, market research was performed by CCDC Armaments Center Engineering. An internet search was performed, similar weapon systems were examined, and equivalent parts were examined for potential compatibility. At that time, CCDC Armaments Center Engineering determined the Switching Module, 12489818, is a unique military item. No commercial equivalent exists. Therefore, no commercial item will satisfy the Army's need for the Switching Module.

9. Interested Sources:

There has not been any expressed interest by any known contractors to become a qualified source to produce the Switching Module (PN: 12489818). A sources sought notice was posted on Fed Biz Opps as 2019-091 on November 2018.

Sources Sought Notice 2019-091.pdf

POC: RDAR-EIS-CL,

10. Other Facts: Procurement history: The following procurements were made sole source to DATA DEVICE CORPOR., using less than full and open competition, justified pursuant to FAR 6.302-1(a)(2)(ii). Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements and 41 U.S.C. 253(c), as implemented by citing FAR 6.302-1(a)(2)(ii):

(1) Contract: SPRDL118C0343 Contractor: DATA DEVICE CORPOR

Award Date: 09/21/2018 Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract: SPRDL118C0075 Contractor: DATA DEVICE CORPOR Award Date:11/16/2017 Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source

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 C

b. NSN: 5998-01-557-9272

c. Part Number: 12489818

d. Qauntity Minimum: 23 Ea

e. Quantity Maximum: 709 Ea.

f. Unit Price:

g. Minimum Contract Value:

Maximum Contract Value:

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.