JA _SPRDL1-24-R-0017 Redacted.pdf

CUI

SPRDL1-24-R-0017 (JA-00759)

No Previous J&A

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: This Shipping and Storage Container, DRUH-R, Government Part Number: 13041453, is needed to meet transit and long-term storage requirement of the precision navigation equipment DRU-H-R. The DRUH-R is a self-contained inertial surveying system for use in the M109A6 Paladin and M109A7 PIM vehicles. DRUH-R calculates and provides Weapon Position to the PDFCS. Due to the criticality of the DRUH-R, its container must meet military packaging requirements.

Pelican Products, Inc. is the only source that can meet this Government’s requirement.

The Government does not have the complete build to print Technical Data Package (TDP) and does not own the pertinent technical data to enable competitive re-procurement.

The DRUH-R is a self-contained inertial surveying system for use in the M109A6 Paladin and M109A7 Paladin Integrated Management (PIM) vehicles. DRUH-R calculates and provides Weapon Position to the PDFCS. This customized military-grade DRUH-R is a vital part used on M109 Howitzer FOV, and therefore shall be handled with great care. This critical part must be kept securely in a special container. The Shipping and Storage Container, DRUH-R (Government Part Number 13041453;

Vendor Item Number AL2624-0813AC/HL) is the only container which meets the Army requirements. This container is manufactured only by Pelican Products, Inc.

The Government does not have the pertinent technical data, does not own the pertinent technical data, and does not have the required specifications and the complete build to print TDP to enable competitive procurement of this container.

As stated above, this DRUH-R container is part of a critical kit for the M109A6-A7 Howitzer FOV. Pelican Products, Inc. has developed this item at their own expense, therefore owns the technical data and all the associated performance specifications that are needed to produce this container. The Government has no access to Pelican's detailed level III TDP. The Shipping and Storage Container drawing 13041453 is available to the Government, but it does not contain sufficient detail to enable competitive procurement.

Pelican has invested their resources in the development, design, and establishment of the manufacturing practices, and retains the rights to the technical data. The information needed to properly produce this container is only available from Pelican Products, Inc.

To competitively procure this item, the Government would have to acquire the level III TDP. Engaging in the process of procuring this container from a source other than Pelican would result in a substantial duplication of cost which would not be recovered through subsequent competitions and would cause an unacceptable delay.

Pelican Products, Inc. is the only contractor who has the required technical and engineering knowledge, production facility capability and expertise, internal configuration control, quality testing capability, and the overall management capability necessary to manufacture this container. Since the Government does not possess the detailed level III TDP, any new source will have to reverse engineer the container, develop their own TDP and gain experience with it prior to be able to reproduce this item. For these reasons, an award to any sources other than the approved source Pelican is not considered feasible at this moment.

As mentioned above, competitive procurement is not an option at this time. The table “Duplication of Cost through Reverse Engineering” below gives the details of the estimated reverse engineering costs for this item. These estimates are based on engineering experience and similar items procurement costs.

Duplication of Cost through Reverse Engineering:

Paragraph Task Cost Estimate

a. Reverse Engineering of Application Specific Design $1,000,000.00

b. Development of Qualification

Procedures/Requirements $900,000.00

c. Prototype building $800,000.00

d. Testing/Analysis of Application Specific Design $700,000.00

e. Logistical Development $500,000.00

f. System Support Package (SSP) $300,000.00

Total $4,200,000.00

Paragraphs Explanation:

a) Army Combat Capabilities Development Command (DEVCOM) - Armaments Center (AC) engineering estimates the cost to develop a competitive package for this kit through reverse engineering, could run as high as $1,000,000.00. This includes tearing down each component of the kit into pieces; identifying each piece and all deficiencies, conducting market research on available pieces; identifying the system components and their interrelationships; fully defining functional parameters of each piece, generating the Bill of Materials (BOM) document, and then creating a new TDP which would include drawings and performance specifications.

b) Since there are no qualification procedures in place to determine whether other sources are qualified to meet the Government’s requirements, it would take approximately an additional $900,000.00 for the U.S Army, DEVCOM AC engineers to develop the requirements and qualification procedures for the prospective contractors to manufacture and qualify the new kit.

part 13041453. The searches revealed that this customized military part is not available from any other sources.

The search results are described below:

Keyword(s): 13041453 Website: NSN-NOW (https://nsn-now.com/Indexing/PublicSearch.aspx).

Findings: Manufacturers Part Number Company CAGE 13041453 US Army ARDEC RDECOM 19200 AL2624-0813 Pelican Products, Inc. 65442

Keyword(s): 13041453 Website: Ability One (https://www.abilityone.gov).

Findings: No Results.

9. Interested Sources: To date no additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

Contract: SPRDL1-17-P-0549

Date: 26 September 2017

Contractor: Hardigg Industries

Contract Value: $10,894.44

Competitive Status: Competed under FAR 13, Simplified Acquisition Procedures.

Engineering Change Proposal (ECP) H20P2001 was executed on 27 May 2020, which revised the drawing from Revision A to Revision B, and therefore changed the AMC/AMSC from 1G to 3B, now making this item Source Controlled to Pelican.

11.Technical Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.