JA_SPRDL119R0189_Redacted_02.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-19-R-0189

Previous J&A was for SPRDL1-18-R-0144

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

5. Reason for Authority Cited: Honeywell is the sole owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. This item is specifically designed for application to the M109A6 Howitzer vehicles.

There are no current plans to acquire a competitive TDP because the U.S. Army is acquiring a new self-propelled Howitzer system to replace the M109A6 and that will have a different electrical system. A significant effort would be necessary to reverse engineer, procure and test prototypes, and release the design. This delay would severely impact the availability of this item in the field. This program is critical to readiness. We estimate that to develop a competitive package for this item through reverse engineering could cost $825K and require 42 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Added to these costs and delays would be the cost and time to test and qualify another source. Qualification and durability testing would be required to prove out this item manufactured by a new source. Failure to conduct this effort would impose a high risk as a premature failure of this item in the field could result in an extensive loss of the equipment and probable loss of lives. Another purpose of testing would be to test for latent defects that could adversely impact the readiness of the equipment and Operational and Support (O & S) costs.

The final breakdown of costs and delays for developing a competitive TDP are as follows:

Project definition 2 months $50K Reverse engineer, create drawings 18 months $500K Obtain prototypes for test 10 months $75K Conduct test 8 months $100K Create ECP and approve 4 months $100K

Total 42 months $825K

The Government may not be able to recover through subsequent competition the additional costs involved to allow the procurement to become competitive.

If the Government conducts the efforts to allow the Procurement to become competitive, an unacceptable delay of 42 months would occur. This delay would adversely impact the Army’s readiness rate and Operational and Support (O & S) costs. With the given quantity of items, any cost savings per item may not justify the cost of developing a competitive package. As the M109A6’s will be replaced by M109A7’s, the demand for this regulator will decrease.

6. Efforts to Obtain Competition: In our research, only Honeywell had the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this J & A. No vendors other than Honeywell have this item. Hence, they are the only one who were designated approved source on the drawing. The approved source have demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively supply this item. The use of incorrect material

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

and/or improper process/quality control during manufacturing of this regulator could result in malfunctioning or even a complete failure of this item for what it is designed for, i.e., to cause fast and efficient engine starting and operation at extreme temperatures. A malfunction of this regulator would result in the vehicle not being able to generate electricity. During peacetime, this kind of condition would force the Army unit to deadline the vehicle.

7. Actions to Increase Competition:

As discussed above, there are no current plans to acquire a competitive TDP because the U.S.

Army is acquiring a new self-propelled howitzer system to replace the M109A6 and that will have a different electrical system. However, the clause at 52.244-5, Competition in Subcontracting, will be included in the resulting solicitation. Any interested sources of supply will be referred to the Source Approval Program through the Competition Advocate’s Office and any other offers submitted will be referred to the appropriate engineering office.

8. Market Research: Computer based market research was completed by TARDEC Engineering on 2 Mar 2019 by reviewing the capabilities of vendors with expertise in this field. No additional sources of supply were identified during this research. In addition, as described above, the M109A6 will be replaced by the M109A7, so no new sources of supply are expected at this time. While other voltage regulators exist, none has been used or tested on this specific military application.

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. A Sources Sought Synopsis was posted to FedBizOpps on 6 March 2019. Any responses received will be evaluated by the appropriate office.

Sources_Sought_N otice_2019-273_SPRD

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

a. Procurement history:

Contract: SPRDL1-19-C-0013 Award Date: 19 Nov 2018 Contractor: Canadian Commercial Corporation (Cage 07217) 100% of this effort was subcontracted Honeywell International Inc. 02LU7 Value: Base Contract: $1,316,395.50 (Unit Price: $8,775.97 ea *Quantity: 150) Unexercised Option: $1,316,395.50 Total: $2,632,791.00 Competitive Status: Limited Source

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

Authority Cited: FAR 6.302-1, Only One Responsible Source

J&A_SPRDL1-18-R-0

144.docx

b. Acquisition data availability: To date no other known source has expressed interest in writing regarding the manufacture of this item.

c. Unusual and compelling: N/A

d. Subcontracting competition: Subcontracting plans are not required from Canadian Commercial Corporation.

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: 3/6/2019 Title: Signature: Email:

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: ___3/7/2019 ______________ Title: Signature: __//s// , Inventory Management Specialist

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the results of a detailed cost and or price analysis. The contractor will be required to submit certified cost and pricing data as the expected value of this procurement is above the TINA ($2M) threshold. This item is non-commercial.

Typed Name: Jeffrey J. Mahlmeister Title: Contracting Officer Signature: //JJM// Date: 04/19/2019

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

14. Contracting Officer Certification:

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

Typed Name: Jeffrey J. Mahlmeister Title: Contracting Officer Signature: //JJM// Date: 04/19/2019

15. Legal Certification:

Concur: // // Date: 04/25/2019

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

Approval Authority for Acquisitions Equal to or Greater Than $700,000.

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: REGULATOR, VOLTAGE

b. NSN: 6110-01-438-5305

c. Basic Quantity: 136

d. Basic Estimated Value:

e. Option Percent: 100%

f. Quantity with Option: 136

g. Estimated Value with Option:

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

Date:

SHEARER.MARY.E.12

50702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.04.26 12:08:28 -04'00'