Summary of SPRDL1-25-R-0233 Justification and Approval for Other Than Full and Open Competition

This is a Justification and Approval (J&A) document for a noncompetitive contract award by the Defense Logistics Agency Weapons Support (DLAWS) at Warren. The contracting agency requests approval to award a two-year firm-fixed-price (FFP) contract with one one-year option to BEI Precision Systems & Space Division (CAGE 12050) located in Maumelle, Arkansas for an Absolute Rotary-Angle Optical Shaft Encoder (NSN 5990-01-492-6575, part number GCC40-14G9LR-1/12918148-2). The encoder is a multi-turn absolute optical component used on the M1A2 family of vehicles, supporting multiple tank configurations including the M1A2 SEPV2, M1A2 SEPV3, M1A2 KUW, M1A2K KUW, M1A2S, and M1A2T TAIWAN Abrams Tank. The contract includes a base quantity of 6 units with a 100% option requirement for a total of 12 units. The contract will be fully funded using Army Working Capital Funds, with a delivery date and pricing to be determined (TBD).

The noncompetitive procurement is justified under 10 U.S.C. § 3204(a)(1) and FAR 6.302-1 (Only One Responsible Source) because the Government lacks the necessary intellectual property data rights and technical data to enable competitive reprocurement. BEI is the Original Equipment Manufacturer and sole source with specialized design attributes and testing expertise unique to the Abrams program, including nuclear, biological, and chemical survivability requirements. The Government does not own proprietary rights to the encoder's technical data package (TDP), and competitive reverse engineering would cost an estimated $3,010,000 and require significant time delays. A Sources Sought Notice posted to SAM.gov for 30 days resulted in no responses. Efforts to obtain competition through small business subcontracting will include FAR clauses 52.219-8, 52.244-5, 52.219-16, and DFARS 252.219-7003 to maximize small business opportunities.