JA SPRDL1-20-R-0052 REDACTED.pdf
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- Redacted Justification and Approval (J&A) Federal contract opportunity
- Solicitation number
- SPRDL1-20-R-0052
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This justification and approval document concerns a sole source contract award for fire extinguisher assemblies used in Bradley Fighting Vehicles. The contract will be awarded non-competitively to Kidde Technologies Inc., the original manufacturer and sole owner of the technical data package. Fire extinguisher assemblies are a critical safety item required for the vehicle's fire suppression system. Only Kidde possesses the capability, failure analysis procedures, inspection criteria, and repair/rebuild and testing processes necessary. Reverse engineering the assembly, developing a technical data package, and qualifying a new supplier was estimated to cost over $1.4 million and require 35 months, which could not be recovered through subsequent competition given annual demand and unit pricing. The justification cites no other responsive sources based on market research conducted through a sources sought notice. The contracting agency is the Defense Logistics Agency Land and Maritime.
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J&A SPRDL1-20-R-0052
(Previous J&A SPRDL1-15-C-0094, SPRDL1-13-C-0126, SPRDL1-12-C-0008, SPRDL1-09-C-0152)
5. Reason for Authority Cited: The Fire Extinguisher Assembly is an integral support item required to operate the Bradley Vehicle’s Fire Suppression System. It is required to assure that the Bradley’s fire suppression system is functional and will allow flawless operation under hazardous conditions. The failure of the Fire Suppression system would cause extensive physical hazard to the crew and extremely costly damage to the vehicle.
Marotta was the original manufacturer of the extinguisher valves used in Bradley Fighting Vehicles AFES supplied by Kidde. However, in 1996, Marotta sold the data rights to Kidde, and since then, Kidde has been producing the entire extinguisher assembly for the Army for a number of other programs. Marotta continues to produce valves for some marine applications, but since 1996, only Kidde produces the valve and extinguisher assemblies for the Army. Given that Marotta has sold the data rights associated with current extinguishers, and has not produced any of these parts for many years, significant cost and extensive requalification and validation testing would be required for them to become a supplier again. Extensive analysis, prototyping, and vehicle testing as described in section 5 above would still need to be done to ensure that the Bradley will properly meet performance specifications with a new supplier’s hardware. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source
The Government does not own the TDP for the Fire Extinguisher Assembly, PN 421625. Kidde is the sole owner of their technical data. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP. The above identified supplier has developed, tested and obtained Government approval for this item for application in the Bradley system at their own cost. The Government did not fund their efforts in developing and testing this item. Only Kidde has the capability to manufacture the Fire Extinguisher Assembly, perform failure analysis, develop inspection and acceptance criteria for components, and repair/rebuild and test the Assemblies. Installing hardware that has not undergone similar verifications could lead to a failure of the Unit under battlefield conditions and could damage the vehicle, compromise the mission function, and endanger the life of the crew.
Due to the limited performance and technical data available on the Fire Extinguisher Assembly, Reverse Engineering is the only recourse the Government could entertain to increase competition through development of a competitive TDP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. Further, there is no funding to develop and qualify additional Fire Extinguisher Assembly manufacturers for this effort. Even if a reverse-engineering effort is successful, the Government will incur excessive costs and lead-time delay. Through our previous experience, we estimate that the cost to develop a competitive package for each critical item through reverse engineering would cost about $600K and would require an estimated delay of at least 1.5 years. Durability testing at Government Proving Grounds would also be required. The nine month, system level vehicle testing would cost about $650K. In summary, the cost to reverse engineer each of the current designs, conduct vehicle durability testing and develop a TDP would cost about $1.4M and take 35 months. Reverse Engineering, TDP development, and system level qualification includes, but is not limited to the following:
Estimated cost to reverse engineer: $600,000 Estimated time to reverse engineer: 1.5 years
Estimated cost to perform system level vehicle testing: $ 650,000 Estimated time to perform system level vehicle testing: 9 months
Estimated cost to develop a TDP: $150,000 Estimated time to develop a TDP: 8 months
The Government does not have the funds available nor would the Government be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. At the current usage rate of 396 per year, at the current unit cost of and assuming the 25% saving achieved through competition, the annual savings would take over years to offset the estimated $1,400,000 cost of reverse engineering the item and qualifying another source.
The consequential time delay of 35 months to reverse engineer, develop and test the new design and then qualify a new vendor would cause shortages of the Fire Extinguisher Assembly and impact A4 production.
6. Efforts to Obtain Competition:
(a) Effective Competition: Based on the detailed rational provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action.
(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.
7. Actions to Increase Competition:
As stated in section 5 above, the we would need a to develop a TDP to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements.
Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense.
The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. Specific information and point of contact for the Source Approval Program is available at https://www.tacom.army.mil/cmo/sap.html.
While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.
8. Market Research: Market research was completed by Ground Vehicle Systems Center Engineering on 9 October 2019.
Kidde Technologies Inc, Cage Code 05BU0: Fire Extinguisher Assembly, 5LB Bit Enabled.
Govt.
P/N
Vendor P/N CAGE NSN Nomenclature
12496698 421625 05BU0 4210-01-
566-2417
Fire Extinguisher Assembly, 5LB Bit Enabled
1. Time Period Covered: Searched conducted October 2019
2. Team Members: (Market Research); (Sources Sought Submittal #2020-008).
3. Companies Contacted/Questions Asked/Summary of Information Provided/Test Results/ Evaluation of Products and Services:
a. Reviewed Haystack database using the NSN # 4210-01-566-2417 to find a Government drawing that would identify any performance characteristics/specifications. Government P/N 12496698 was found.
b. Reviewed Windchill database using Government P/N 12496698 to find drawing or specifications. Reviewed the drawing for 12496698 but there were performance specifications, missing mounting dimensions and refers you to vendor drawing 421625. There is insufficient information to use this for open competition.
c. Reviewed Kidde Technologies Inc website http://kiddetechnologies.com/military for specifications using P/N 421625. None were found.
d. Web search revealed no comparable/equivalent items when searching the Kidde Technologies P/N 421625. Only vendors re-selling Kidde Technologies hardware were found.
e. Conducted an Information Handling Services (HIS) Haystack search using same nomenclature of “Fire Extinguisher Assembly, 5LB Bit Enabled”. Nothing was found. However, under the nomenclature “Fire Extinguisher Assembly”, several military suppliers were found such as BOMBARDIER AEROSPACE
AERO.
f. Conducted a web search of the following companies but no matches were found doing similar searches to other suppliers.
i. Phos-Chek https://phoschek.com/industry/industrial-military/
ii. Ansul https://www.ansul.com/en/us/pages/SolutionIndustry.aspx?IndustryTitle= 0DRxPHjIfwsufMXghOB0%2BQ%3D%3D
iii. BOMBARDIER AEROSPACE AERO http://us.bombardier.com/us/products.htm
4. Market Developments: N/A
5. Impact of the findings on the Federal Government:
Sources Sought Notice 2020-008 was posted to Fed Biz Opps on 9 October 2019 for Fire Extinguisher Assembly, NSN: 4210-01-566-2417, MPN 421625 as required by FAR
5.201. Any responses received will be evaluated by the appropriate office. Design validation and qualification is required to become an approved source.
Sources Sought Notice has been submitted to Fed Biz Opps on 9 Oct 2019
Component: Fire Extinguisher Assembly
NSN: 4210-01-566-2417
P/N: 12496698 End Item: Bradley https://www.fbo.gov/index?s=opportunity&mode=form&id=4ce50cffdf106aa9ef690 10bff531fcc&tab=core& cview=0
Sources Sought 2020-008
6. Recommended actions based on research findings:
a. If Sources Sought Notice 2020-008 results in additional suppliers being identified, the interested supplier would need to submit a Source Approval Request to qualify as a potential vendor and be added to the TDP.
9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2018-486 was posted to Fed Biz Opps on 9 October 2019 for the Fire Extinguisher Assembly, NSN: 4210-01-566-2417, P/N 12496698 as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.
10. Other Facts:
a. Procurement History:
Contract: SPRDL1-15-C-0094 Award date: February 26, 2015 Contractor: Kidde Technologies Value: $579,562.00 Competitive Status: Limited Source Authority Cited: FAR 6.302-1, Only One Responsible Source
Contract: SPRDL1-13-C-0126 Award date: July 26, 2013 Contractor: Kidde Technologies Value: $317,440.00 Competitive Status: Limited Source Authority Cited: FAR 6.302-1, Only One Responsible Source
Contract: SPRDL1-12-C-0008 Award date: October 6, 2011 Contractor: Kidde Technologies Value: $562,440.00 Competitive Status: Limited Source Authority Cited: FAR 6.302-1, Only One Responsible Source
Contract: SPRDL1-09-C-0152 Award date: September 9, 2009 Contractor: Kidde Technologies Value: $215,686.50 Competitive Status: Limited Source Authority Cited: FAR 6.302-1, Only One Responsible Source
11. Technical Certification:
I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.
The POC for this action is
Name:
Title: Supervisory Team Lead - Light Combat Sustainment Engineering Signature:
Date: 14 NOV 19 Email:
Name:
Title: Associate Director - Sustainment Engineering Signature:
Date: 14 Nov 19 Email:
12. Requirements Certification:
I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.
Name:
Title: Item Manager Signature:
Date: 25 Oct 2019
Name:
Title: Director, Fires & Infantry Support PSID Signature:
Date: 4 Nov 2019
13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on FAR 15.404- 1(b)(2)(vi) and/or 15.404-1(b)(2)(vii). Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. Based on the estimated dollar value, Certified Cost and Pricing Data will not be required to justify price reasonableness. However, Other Than Certified Cost and Pricing Data may be required in order to establish price reasonableness. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary.
Name: Jeffrey J. Mahlmeister Title: Contracting Officer Signature: //JJM//
Date: 27 November 2019
14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement: I certify that this justification is accurate and complete to the best of my knowledge and belief.
Name: Jeffrey J. Mahlmeister Title: Contracting Officer Signature: //JJM//
Date: 27 November 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: Fire Extinguisher Assembly
b) NSN: 4210-01-566-2417
c) Basic Quantity: 686 each
d) Basic Estimated Value:
e) Option Percent: 100%
f) Quantity with Option: 1,372 each
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:
DLA Land and Maritime Competition Advocate
SHEARER.MARY.E.
1250702449
Digitally signed by
SHEARER.MARY.E.1250702449
Date: 2019.12.10 07:21:39 -05'00'
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