JA_SPRDL119R0073_Redacted Draft.pdf

Justification & Approval: SPRDL1-19-R-0073 (Previous J&A SPRDL1-17-R-0058 is available and embedded in this document)

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: The Contracting Activity for this action is the Defense Logistics Agency Land Warren (DLA Land Warren).

2. Description of Action: The proposed action is to award a new long term contract for Power Supply units for the Tank, M1A2 Abrams Family of Vehicles. Competition will be limited to GE Aviation Systems, Inc (CAGE Code: 19623). This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: This procurement is for the purchase of a Power Supply ICEU-ITMPU-IHMPU, NSN 6120-01-528-3910. P/N 12467516 (Vendor P/N: 3412700G3). The estimated unit price is and the minimum five (5) year quantity of this requirement is 15 each with a maximum quantity of 486 each.

The minimum estimated value of the contract is with a maximum estimated value of . The Government intends to award a Firm-Fixed- Price contract to GE Aviation Systems, 1000 MacArthur Memorial Hwy, Bohemia, NY, US 11716.

Acquisition Method Code (AMC): 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code: (AMSC): B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical 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 DoD-STD-100 definition) altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

PRON Number: EH9L0024EH

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-

5. Reason for Authority Cited: This Power Supply item is a critical component of the M1A2 Abrams Family of Vehicles. This item is a source controlled item (sole source) to GE Aviation Systems, who is the actual or original equipment developer and manufacturer (OEM). The Government does not own proprietary rights to GE Aviation

Systems data that would be required to produce a competitive technical data package (TDP). The current Power Supply TDP drawing number 12467516 does not contain adequate technical data or information necessary to support full and open competition.

GE Aviation Systems 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. GE Aviation Systems developed, tested, and obtained the Government's approval of this item for the M1A2 Power Supply at their own expense. The Government did not fund GE Aviation Systems; efforts in developing and testing this item. Additionally, the Government did not fund GE Aviation Systems to prepare fully detailed technical drawings. As such, GE Aviation Systems is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the GE Aviation Systems data that would be required to produce a competitive TDP.

6. Efforts to Obtain Competition: There are no current plans to acquire a competitive TDP because funds are not available to acquire the data necessary to support a competitive acquisition.

ARDEC-RI engineering estimates that the cost to develop a competitive TDP for this item through reverse engineering could run as high as $1.7M and require an estimated delay of at least 36 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP.

Since there are no procedures in place to determine whether other sources are qualified 300K and take about 12 months for the U.S. Army/ARDEC engineers to develop the G requirements for the prospective contractor to produce and qualify the item listed in paragraph 3. Finally, it would cost $500K and take at least 12 months to conduct the actual Engineering analysis to determine if a new source has become approved in accordance with the newly competitive TDP. This would include the cost for any additional test equipment or fixtures, higher level assemblies and or end item systems required to test this part and any costs for test facilities as applicable.

The overall costs associated with developing a competitive TDP, to include reverse engineering, developing Government requirements and engineering analysis would be at least $2.5M dollars which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for the development of a competitive TDP is at least 60 months. A delay of this scale is not considered acceptable in fulfilling the A A support the soldier in the field and would jeopardize the availability and supportability of the Abrams FOV.

Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct a reverse engineering effort at this time. These stated costs would be very difficult to be recouped through subsequent competition and the consequential time delay for this effort is unacceptable to meet the Government's requirements.

7. Actions to Increase Competition:

No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) 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

At this time, there are no current or planned efforts to qualify additional sources due to the fact that there is no technical data available to produce a competitive TDP.

Any new vendor who decides to pursue the qualification process will be directed to the (SAP). The Competition

Management Office (CMO) would encourage interested parties to submit a Source Approval Request (SAR) at this time for future buys.

8. Market Research:

In October 2018, computer based market research was performed by . At that time, determined the Power Supply item, part number 12467516 as a unique military item. No commercial equivalent exists.

Therefore, no commercial item will satisfy the Army's need for the Power Supply.

A sources sought synopsis was posted on Fed Biz Opps as Sources Sought Notice # 2019-054 on October 23, 2018.

Any interested source will be directed to the Source Approval Program though the

POC: .

Sources Sought Notice posted to Fed Biz Opps on 23 Oct-2018:

Sources Sought Notice#: 2019-054 Component: Power Supply

NSN: 6120-01-528-3910

Part Number: 12467516 End Item: M1 Abrams Tank

Fed Biz Ops Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=599ca923973c305f0a8bd680f 97a7c31&tab=core& cview=0

9. Interested Sources:

There has not been any expressed interest by any known contractors to become a qualified source to produce the Power Supply item. The notices required by FAR

5.201 will be published, and any bids or proposals received will be referred to the applicable engineering office for analysis and will be considered.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement History:

(1) a. Contract: SPRDL1-17-C-0291, awarded on 20 Sep 2017 to Linmarr Associates for a quantity of 74 each Power Supply units with a total dollar value of $747,400.00

b. Contract: SPRDL1-16-C-0281, awarded on 22 Sep 2016 to GE Aviation Systems for a quantity of 70 each Power Supply units with a total dollar value of $528,836.70

(2) The above buys were solicited and awarded under Other Than Full and Open Competition

(3) FAR part 6.302-1 (a)(2), Only One Responsible Source was utilized

(4) Previous J&A attached Previous J&A -

SPRDL117R0058

(5) Acquisition Data Availability: The Government does not own or have rights to the technical data for the Power Supply NSN for this procurement.

(6) Unusual and Compelling Urgency: N/A

(7) Subcontracting Competition: The Government will require the chosen contractor to submit a subcontracting plan IAW FAR 19.704 during negotiations of the contract in order to achieve increased small business subcontracting opportunities throughout the life of the contract.

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.

Typed Name: Date:

Title: Signature:

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.

Typed Name:

Date:

Title: Item Manager Signature: olley

Typed Name: nzi Date:

Title: Dir, CM&R PSID

Signature:

13. Fair and Reasonable Cost Determination: The required item will be solicited on Request for Proposals (RFP) SPRDL1-19-R-0073. It is proposed to negotiate a Firm- Fixed-Price, 5-Year IDIQ long term contract with GE Aviation Systems for part number 12467516. This is the only responsible source and no other supplies or services will satisfy requirements. The rationale for restricting competition is explained above.

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary.

I also certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date: ____Timothy A. Nichols______14 Feb 2019_________ Title: Signature: _____//TAN//__________

14. Legal Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Concur: Date: