JA-SPRDL1-24-R-0161_Redacted.pdf

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Redacted Justification & Approval (J&A)
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SPRDL1-24-R-0161
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This is a Justification and Approval (J&A) for Other Than Full and Open Competition document for a sole-source contract award.

The Defense Logistics Agency – Land Warren (DLA-WRN) seeks to award a firm-fixed-price contract to General Dynamics Mission Systems-Canada (GDMS-C) for the procurement of a Redesigned Hull Networks Box (RHNB) with Container, National Stock Number (NSN) 6110-01-514-7369, Part Number 57K4140. The RHNB with Container is used on M1 Abrams Tanks to distribute power, control, and status signals among the hull's engine and transmission control equipment, driver's panels, lights, and personnel environmental controls. The contract calls for a base quantity of 25 units with a 100% option for an additional 25 units, totaling 50 units. The acquisition is being conducted under 10 U.S.C. 3204(a)(1) (Only One Responsible Source), utilizing Army Working Capital Funds.

The justification establishes that GDMS-C is the sole capable source because it is the original equipment manufacturer with exclusive tooling, equipment, and design knowledge necessary to manufacture the part. The Technical Data Package (TDP), though government-owned, is inadequate for production without access to GDMS-C's proprietary design and procedures. The government determined that reverse-engineering the item to establish competition would cost approximately $5.285 million and create unacceptable delays of multiple years, making it economically infeasible. A Source Sought Notice published on SAM.gov on September 24, 2024, yielded no responses. Market research conducted in December 2024 confirmed GDMS-C as the sole source for a military-grade RHNB with Container. The part must comply with extensive testing requirements including nuclear hardness testing, environmental testing, and ballistic shock testing per MIL-STD-810. Previous procurement history shows prior awards to Canadian Commercial Corporation as intermediary contractor for the underlying GDMS-C product in 2008 and 2016.

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SPRDL1-24-R-0161 (JA-00926)

Previous J&A: SPRDL1-14-R-0070 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. Although, by ASME Y14.100 definition, altered and selected items shall have an adequate Technical Data Package (TDP), data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

GDMS-C is the custodian of this TDP and the Original Equipment Manufacturer. While the TDP is United States Government (USG) owned (developed exclusively with USG funds), GDMS-C is the only contractor that has demonstrated that they have the tooling and equipment needed to manufacture this part. Additionally, the TDP is not fully defined because the drawings do not give enough information to design the item and are inadequate for production without access to GDMS-C design and procedures. GDMS-C acquires the Container (a supplier item that will also need to be to be approved and qualified for use) and assembles it with the RHNB1-3 LRU to produce the final product. GDMS-C has developed, tested, passed all qualification testing and obtained Government approval to manufacture RHNB LRU which is used on M1A1US, M1A1 Australia, M1A1 Iraq, M1A1 Morocco, M1A1 Egypt, and the M1A2S Abrams Tank Platform.

NOTE: GDMS-C has informed the USG that the part being procured under the authority of the J&A is not compatible with M1A2 T and M1A2 KUW.

Only GDMS-C has the capability to manufacture, perform failure analysis, develop inspection and acceptance criteria for components, repair/rebuild and test the RHNB with Container that meet USG requirements. In addition, GDMS-C’s RHNB with Container is required to comply with multiple specifications and pass extensive testing procedures outlined in Critical Item Product Fabrication Specification for the assembly. The end item, M1 Abrams Tank, must be utilized to perform various testing requirements for this component. In addition to the operations, functionality, compatibility, reliability, and interoperability tests, the part shall meet the circuit continuity, circuit isolation, Nuclear, Biological and Chemical (NBC) Protective Subsystem, Nuclear Event Detection, Environmental, Temperature, Humidity, Vibration, Basic Shock, Ballistic Shock, Submergence, Fungus and gun firing requirements to verify conformance as required by MIL-STD-810. Failure to meet all specified requirements will jeopardize the readiness of the entire RHNB with Container. Parts that are not properly qualified may cause an Operational Mission Failure necessitating a mission abort if this part fails during an operational event. For the reasons listed, no contractor other than GDMS – C has been authorized/approved to manufacture and sell the RHNB with Container to the USG.

To make this a competitive procurement, the USG would need to provide a complete TDP. A significant amount of time and money would be necessary to reverse engineer the item. The table below shows the activities required, along with their associated delay and costs for the development and release of a competitive TDP. The information provided in this section is only an estimate based on engineering judgment and experience. Even if a reverse-engineering effort is successful, the USG will incur excessive costs and lead-time delay.

Paragraph Task Cost Estimate

a. Reverse Engineer $2,000,000

b. Engineering Verification

Testing/Analysis/Inspections $3,000,000

c. Logistical Development $25,000

d. Nuclear Hardness and

Survivability Testing (NH&ST) *$60,000

e. Conduct System Level Testing *$200,000

TOTALS $5,285,000

*The Nuclear Hardness and Survivability Testing (NH&ST) and Conduct System Level Testing estimated cost and time are included in the Engineering Verification Testing/Analysis $3,000,000 and

a) Reverse engineering (includes but not limited to the following): Identifying all the deficiencies; conducting market research on available parts and components; working in conjunction with General Dynamics Land and Systems (Abrams Tank system integrator);

obtaining existing parts; tearing down and understanding the design; redesigning parts that are unavailable from approved sources; redesigning parts that may be obsolete at the time of the reverse engineering effort; creating a prototype and generating a new TDP. The new TDP would include components complete drawings, performance specifications, and qualification procedures. Thus, this effort could run as high as $2,000,000 and an estimated delay could take up to

b) Engineering verification testing (includes but not limited to): Nuclear Event Detection, system response, false return rate, electrical protection, circuit isolation, signal isolation, activation time, circuit continuity, analysis (includes but not limited to reviewing the engineering data and preparing technical reports); NBC Protective Subsystem, Environmental, Temperature, Humidity, Vibration, Basic Shock, Ballistic Shock, Submergence, Fungus and gun firing requirements inspections (includes but not limited to Document control, Traceability, Lot Control, Manufacturing Process Control, Test Control, Calibration Control, Corrective Actions & Control or Non-conforming Material, Internal Audits, Records Control and Product Control) plus any costs for test facilities and extensive systems tests to ensure proper field operation of Pulse Jet Air Cleaner Assembly (P/N: 12388281) which is the end item for the RHNB with Container. This effort could run as high as $3,000,000 and an estimated delay could take up to

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 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 Source Sought Notice was published on SAM.gov on 24 September 2024 with responses due on 25 October 2024. No responses were received.

In December 2024 the U.S. Army Combat Capabilities Development (DEVCOM) Armaments Center (AC) Project Engineer conducted a computer-based online search using google.com of known suppliers looking for published material on a new built military grade RHNB with Container.

Keyword(s): “Redesigned Hull Networks Box with Container, Abrams Tank”.

Findings:

The results of this search did not produce any new companies that would provide a direct replacement military grade RHNB with Container that is 100% new and not rebuilt that could be installed in the Pulse Jet Air Cleaner Assembly. GDMS-C is listed as the original source for part RHNB with Container. DEVCOM AC Engineer contacted GDMS-C and spoke with a Project Manager that confirmed, GDMS-C still produces the RHNB with Container.

Summary: As a result of Market Research, it was concluded that the Government does not have enough detailed information to investigate similar parts for this specific application. This military grade RHNB with Container cannot be identified as a Commercial Off the Shelf Item.

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

10. Other Facts: Procurement History:

1. Contract Number: SPRDL1-15-D-0022/0004/0001AA Award Date: 13 January 2016 Contractor: Canadian Commercial Corporation Contract Value: $ 2,952,777 Competitive Status: FAR 6.302-1 Only one responsible source

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