JA_SPRDL1-23-C-0028_Redacted.pdf

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Attached to
Redacted Justification & Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-21-R-0086
Issued by
Defense Logistics Agency Land and Maritime

About this file

This redacted justification and approval document awards a sole source contract to an unknown vendor for procurement of PMVS and container. The justification cites the vendor as the original equipment manufacturer who solely possesses required technical data and expertise to produce the item. Estimated costs for reverse engineering are over $1 million with a delay of at least 40 months. There are currently backorders and production orders would halt without this award. The Defense Logistics Agency Land and Maritime will award an firm-fixed-price contract on January 30, 2023 for an unknown amount pursuant to FAR provisions for small business subcontracting.

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J&A SPRDL1-21-R-0086 (JA 00457)

Previous J&A SPRDL1-19-C-0258

The M109A6 Paladin 155 mm provides the primary indirect-fire support to Armored Brigade Combat Teams, Infantry Brigade Combat Teams, and Stryker Brigade Combat Teams. Weibel Equipment is the actual or the original equipment developer and manufacturer (OEM). The Government does not own proprietary rights to Weibel Equipment data that would be required to produce a competitive TDP. The current MVRS drawing/TDP, drawing No. 12999115, a source control drawing, does not contain adequate technical data and/or information necessary to support a full and open competition. Weibel Equipment is the OEM and the only known source that possesses the required technical knowledge and engineering expertise to successfully manufacture this item per the current TDP. Weibel Equipment has developed, tested, and obtained the Government’s approval of this item at their own expense.

The Government did not fund Weibel Equipment efforts in developing and testing this item. Additionally, the Government did not fund Weibel Equipment to prepare fully detailed TDPs. As such, Weibel Equipment is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the Weibel Equipment data that is required to produce a competitive TDP. Weibel is the only vendor who possesses the technique knowledge and expertise, facility, procedures, and equipment required to manufacture this item.

There are no current or planned efforts to qualify additional sources since there is no technical data available to produce a competitive TDP and acquiring the detailed TDP from Weibel is not an option because the vendor is not willing to sell their TDP to the Government. In addition, reverse engineering the part would be too costly to the Government. The table “Duplication of Cost through Reverse Engineering” below gives the details of the estimated reverse engineering and associated costs.

Duplication of Cost through Reverse Engineering

Paragraph Task Cost Estimate

a. Reverse Engineering of Application Specific Design $350,000

b. Development of Qualification Procedures/Requirements $250,000

c. Testing/Analysis of Application Specific Design $200,000

d. Logistical Development $180,000

e. System Support Package (SSP) $150,000

TOTAL: $ 1,130,000

a) U.S. Army Combat Capabilities Development Command (DEVCOM) Armaments Center engineering Subject Matter Experts (SME), estimates the cost to develop a competitive package for this motor through reverse engineering, could run as high as $350,000. This includes fabrication and testing of the prototype hardware and releasing a validated TDP. The subtasks in this task would include the following: identify all deficiencies, conduct market research on available parts and components, identify the

Scheduling Delay Concern Table:

Task Schedule Delay Reverse Engineering of Application Specific Design 12 months Development of Qualification Procedures/Requirements 8 months Testing/Analysis of Application Specific Design 8 months Logistical Development 6 months System Support Package (SSP) 6 months

TOTAL: 40 months

The aggregate delay in the acquisition process for the development of a competitive TDP is at least 40 months. A delay of this scale is not acceptable and would have significant detrimental impact on the Army's ability to support the soldiers in the field and would jeopardize the Army's mission. There are currently 10 each on backorder with two each of them being Non-Mission Capable Supply (NMCS). There are also M109 Paladin production orders which will result in a halt in production.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above the Government is not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 17 March 2022 and was open for 17 days. No responses have been received.

Currently, there has not been any expressed interest by any vendor(s) to produce this item. In addition, no contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Only the approved source has the required capabilities 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.

Approval Authority for Acquisition Equal to $750,000 but Less than $15M

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: PMVS and Container

b. NSN: 5895-01-524-8674

c. Basic Quantity: 55 Each

d. Basic Estimated Value:

e. Option Percentage: 100%

f. Quantity with Option: 110 Each

g. Estimated Value with Option:

This action will be awarded under other than full and open competition basis 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:

Competition Advocate

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.10.18 07:50:43 -04'00'

File details come from the government source that posted it. Updated .