JA_SPRDL1-20-R-0003_Redacted.pdf

Acquisition Method Suffix Code: (AMSC): R The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them. Valid AMCs: I, 2, 3, 4 and 5.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, “Only One Responsible Source and No Other Supplier or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As authorized by FAR 6.302-1, procurement by other than full and open competition is necessary because the U.S. Government does not own or have rights to the technical data for the Integrated Helmet and Display Sight System (IHADSS) components list in Table-1 above. The IHADSS was developed, engineered, and manufactured for the unique requirements of the AH-64 Apache helicopter. Elbit Systems of America (ESA) is the owner of the IHADSS intellectual property. ESA acquired the intellectual property rights and technical data from the original IHADSS OEM, Honeywell, Inc., Minneapolis, MN, in 2000. Since that time, Elbit Systems Fort Worth, Inc. (EFW), ESA’s production subsidiary, has had exclusive rights to this technical data, production tooling and special test equipment for the purpose of IHADSS component production. EFW is therefore the only source currently capable of producing these items within the Government’s necessary delivery schedule.

ESA/EFW has stated that they have no interest in selling the Technical Data Packet (TDP) to the United States Government (USG). They have declined to provide rough order of magnitude cost estimates for TDP sale or license of the technical data.

A Government-owned, competitive IHADSS system technical data package does not exist. The Combat Capabilities Development Command (CCDC) Armaments Center's Cognizant Engineer estimates that it will cost a minimum of and take a minimum of to create a competitive TDP by reverse engineering, qualify the design and begin spares deliveries. Any such reverse engineering project would entail HIGH technical and schedule risk. The reverse engineering cost would not be recouped during subsequent competitive procurements. The minimum delay to reverse engineer is unacceptable in fulfilling TACOM’s requirements and would have significant detrimental impact on TACOM’s ability to support the soldier in the field.

This reverse engineering estimate is based on actual cost/time experience with a previous IHADSS Obsolescence Redesign project, which cost and took to refresh the design of two (2) IHADSS components. These cost and time projections from this previous experience were adjusted to account for the specific component function, performance requirements and design complexity.

Reverse engineering IHADSS TDP would be extraordinarily challenging due to the extreme technology span of the specific IHADSS components. Current fielded and supported IHADSS electronic component design technology ranges from discrete, wire-wrap component electronics designed in the late 1970’s, up through modern, state of the art, multi-layered circuit cards with surface mount components.

In addition to the pure electronic assemblies, the IHADSS also contains:

a. Two (2) separate design generations of fire control “Line of Sight” (LOS) detection whereby the IHADSS determines where the crew member’s helmet is aimed: one method using infrared light to detect position; the other relying on a locally generated magnetic field.

b. Two (2) separate design generations of the crew’s projected image display: the original low resolution system fielded in 1986, and a high definition display fielded during AH-64E remanufacture.

Any such reverse engineering project would also require substantial access to functional AH-64D and AH-64E aircraft to understand and decipher the IHADSS components and verify functionality of reverse engineered products.

Adequate aircraft access will be very difficult to assure, since TACOM does not control any necessary aircraft end items. It is anticipated that the reverse engineering activity would need to procure access and support services from the aircraft OEM at an estimated cost of .

All reverse engineered designs will require flight qualification and air worthiness release through CCDC Aviation & Missile Center, performed on both AH-64D and AH- 64E aircraft. Aircraft and Test Center non-availability may adversely impact project schedule. The estimated cost of qualification on both AH-64D and AH-64E aircraft is

Current demands, coupled with projections through the Logistics Modernization Program (LMP) tool, reflect a zero stock on hand balance for all identified parts within the next 14-18 months. The delay resulting from reverse engineering the IHADSS TDP will create a supply support gap for several years adversely impacting the AH-64D and AH- 64E operational readiness.

6. Efforts to Obtain Competition: This requirement for the IHADSS will not be competed for reasons stated in section 5 above. This procurement action will be synopsized in FedBizOpps.gov per FAR 5.201 to alert interested contractors and subcontractors. Due to the complexity of the items being procured, additional competition is not expected.

7. Actions to Increase Competition: As stated in section 5 and 6 above, the Government is not taking any further action to increase competition because EFW is the sole manufacturer of the IHADSS and it is not cost-effective to purchase or develop technical data for competition.

8. Market Research: Sources sought notices for the NSNs in Table 1 were posted on

26 June 2019. 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 these items.

Sources Sought Notice

Item Name

Part Number

2019-439 ALIGNMENT KIT

HELME

KG1488AC01

2019-440 HELMET FITTING KIT KG1487AC01

2019-441 WIRING HARNESS,

BRAN

IH-92900A-00

2019-442 IMPROVED HELMET

DIS

95750A-00

2019-443 ENHANCED DISPLAY

UN

IH-017A-01

2019-444 TUBE AND CABLE

ASSE

95752A-02

2019-445 CELL

ASSEMBLY, OPTIC

IH-084A-01

2019-446 DISPLAY UNIT, HEAD-

U

MB488F-03

2019-447 DISPLAY, DRIVER

UNIT

95500A-01

Sources_Sought_Noti Sources_Sought_Noti Sources_Sought_Noti Sources_Sought_Noti Sources_Sought_Noti ce_2019-439 Helmet Ace_2019-440 Helmet Fce_2019-441 Wiring Hce_2019-442 IHDU.pd ce_2019-443 EDEU.pd

Sources_Sought_Noti Sources_Sought_Noti Sources_Sought_Noti Sources_Sought_Noti ce_2019-444 Tube an ce_2019-446 ISDU.pdfce_2019-447 DDU.pdfce_2019-445 IBRU.pdf

The Aircraft Armament Group, Weapons Product Support Integration Directorate (PSID) conducted Market Research on 17 June 2019 to determine if other sources existed for the production and repair of the above listed components or if commercial or non-developmental items are available to substitute for the IHADSS components to be produced. These searches of the technical information and websites utilized the search engines Google, Bing and Yahoo using the following items:

Integrated Helmet and Display Sight System

IHADSS

Helmet- Mounted Display Head-Mounted Display

HMD

Helmet-Mounted Sight Head-Mounted Sight

HMS

This market research included searching known industry leaders within the rotary wing helicopter market space such as Sikorsky and Bell. As a result, the government determined that no commercially available sources for the procurement of these items exist, due to the proprietary nature of the intellectual property.

The components listed in Table 1 are specifically and uniquely designed to operate in the AH-64D and/or AH-64E Apache Attack Helicopters. They were thoroughly tested and formally qualified in accordance with AR 70-62: Airworthiness Qualification of the US Army Aircraft Systems. There are no commercial or non-developmental items available as substitutes, due to their unique size, shape, material, and function.

Additionally, Aircraft Armament Group personnel continually monitor the marketplace for military rotary wing technology in accordance with FAR 10.002(b)(2).

9. Interested Sources: To date, no other sources have expressed an interest in writing to produce the items listed Table-1 above. This requirement will be synopsized in accordance with FAR 5.201 and any proposals received shall be considered.

10. Other Facts:

a. Procurement History:

(1) Contract: SPRDL117D0020

Award Date: 23 Nov 2016 Contractor: EFW Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source ***Prior J&A***

(2) Contract: W56HZV14C0252

Award Date: 30 July 2014 Contractor: EFW Competitive Status: Sole Source Authority: FAR 6.302-2, Unusual and Compelling Urgency

(3) Contract: W56HZV13C0242

Award Date: 6 May 2013 Contractor: EFW

(4) Contract:

W52H0907D0461 Award Date: 25 Sept 2007 Contractor: EFW Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source

(5) Contract: W52H0907C0047 Award Date: 22 Jan 2007 Contractor: EFW

(6) Contract: W52H0907C0241

Award Date: 24 Sept 2007 Contractor: EFW

DEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

Approval Authority for Acquisitions Equal to or Greater Than $13,500,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN

COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

1) a. Noun: Alignment Kit, Helmet

b. NSN: 4933-01-249-4537

c. Basic Estimated Five-Year

Quantity: MINIMUM

QUANTITY: 3 MAXIMUM

QUANTIY: 75

d. Basic Estimated Value:

MINIMUM VALUE: (Long Term 5 Years Quantity)

MAXIMUM VALUE: (Long Term 5 Years Quantity)

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer)

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

2) a. Noun: Helmet Fitting K

b. NSN: 4933-01-249-4540

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 3 MAXIMUM

QUANTIY: 94

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

3) a. Noun: Wiring Harness, Branched

b. NSN: 6150-01-534-0552

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 45

MAXIMUM QUANTIY: 1,125

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

4) a. Noun: Improved Helmet Display Unit

b. NSN: 1270-01-553-1146

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 48

MAXIMUM QUANTIY: 1,200

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

5) a. Noun: Enhanced Display Unit

b. NSN: 1270-01-553-1147

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 6

MAXIMUM QUANTIY: 150

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

6) a. Noun: Tube and Cable Assembly

b. NSN: 1270-01-582-4184

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 15

MAXIMUM QUANTIY: 375

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from

7) a. Noun: Cell Assembly, Optic

b. NSN: 1270-01-615-0822

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 3

MAXIMUM QUANTIY: 210

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

8) a. Noun: Display Unit, Head-U

b. NSN: 1270-01-615-4196

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 12

MAXIMUM QUANTIY: 300

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them).

9) a. Noun: Display, Driver Unit

b. NSN: 1270-01-672-5595

c. Basic Estimated Five-Year Quantity:

MINIMUM QUANTITY: 15

MAXIMUM QUANTIY: 375

e. AMC: 3 (Acquire, for the second or subsequent time, directly from the actual manufacturer).

f. AMSC: R (The data or the rights to use the data needed to purchase this part from

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.

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.11.22 14:30:07 -05'00'

Mark A. Brown SES, Acquisition Executive

BROWN.MARK.A

BERT.104117503