JA_SPRDL119R0221_Redacted.pdf

J&A SPRDL1-19-R-0221 / Previous J&A is available and attached distribution. While the MFES kit, part number 57K7882, is coded to TACOM, the Fire Extinguishing Bottle is not. AM General LLC, with Kidde Technologies Inc., developed the technical data for this item and obtained the Government’s approval for its use in the HMMWV at their own expense. The Government did not acquire any rights to the technical data to enable competition of this item. Again, this action will result in a new three year Firm Fixed Price contract for a minimum of 51 each to a maximum of 750 each Fire Extinguishing Bottles used in the M1152A1 variant of the HMMWV. The estimated unit price is each. Army Working Capital Funds estimated of up to will be used for this action.

4. Authority Cited: The statutory authority permitting this action is 10 U.S.C.

2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

a. Background:

The HMMWV Fire Extinguishing Systems is a safety critical system that was designed and developed by AM General, with the assistance of Kidde Technologies. As a safety critical item, the system must conform to stricter standards to help limit the possibility of the system failing. Therefore, any potential suppliers are required to demonstrate the ability to meet those higher standards before they are able to become an approved source of supply. Both AM General and Kidde Technologies are the OEM and are the only ones qualified to supply the item. The original HMMWV program acquisition strategy incorporated a combination of off-the shelf commercial parts, existing ordinance parts, and contractor developed parts to speed up the acquisition process and allow the Government to own some portions of the HMMWV, but not the full TDP of the vehicle system. This strategy reduced research and development time as well as overall program cost. Thus, while the HMMWV FOV has a Technical Data Package (TDP), it is not all inclusive of every component of the vehicle system. Further, the TDP does not include vendor developed components that were considered the intellectual property of the developer. A TDP for the Fire Extinguishing Bottle assembly was not acquired with the vehicle TDP. Since this item was developed by the OEM, and at their expense, the technical information for this item is proprietary to the OEM. As such, the use of such descriptions in the acquisition is essential to the Governments’ requirement thereby precluding consideration of a product manufactured by another company.

b. Costs:

There are no known funding efforts in progress at this time to acquire the commercially controlled data necessary to make NSN 4210-01-562-0852 fully competitive. Further, because this is a critical system component of the HMMWV, every competitive action on a Fire Extinguishing Bottle purchase would result in a full qualification test for each awarded vendor to validate that the Form, Fit and Function of the bottle remains the same. This would add unnecessary cost and schedule to the acquisition of each bottle for the HMMWV. If the Government insisted on fully competitive procurement for the Fire Extinguishing Bottle, the Government would have the three choices to obtain the necessary information to enable full competition: Research and Development of our own bottle design, Reverse Engineering of the existing system, or simply ask the vendor, in this case AM General LLC, for a price to purchase the full Technical Data and rights to use the item competitively. PD-LTV has tried to obtain pricing for the HMMWV TDP back in March 2017. The Government asked for costing on the Armor, HVAC system, and all Rev B components of the HMMWV which would have included the Fire Extinguishing Bottle. AM General response was that it is not for sale and AM General has not changed its position on selling the TDP because that would result in a net loss of business to AM General. Without the option to purchase the TDP, the Government has two remaining methods to acquire the data required and execute a competitive Fire Extinguishing Bottle purchase. The remaining options are:

(i) Research and Development (R&D): To develop a competitive data package through a Research and Development (R&D) effort would involve a ground up design of a Fire Extinguishing Bottle that doesn’t infringe on any existing data rights which would include research, generating requirements and any associated technical drawings. Followed by testing and validation and finally qualifying additional sources for the Government Fire Extinguishing System program. This action would entail a significant amount of time, facility resources, man-hours, and funding to provide a solution that is identical to what we have already. Based on past experience with similar efforts the estimated cost to research and develop a compatible product and qualify additional sources exceeds $10.0M with a setback of forty-eight (48) months. Required funding would include $3.5M for personnel to support research, and redevelopment of an item that would perform the same task as this NSN. That $3.5M would also include funding for staff to develop the CAD models and drawings that would be required for any potential vendor to manufacture from. Another $4M would be required for developmental testing and validation of the design and the remaining 2.5M would be used for prototype tooling. If funding for a new start research and development effort became available, the forty-eight (48) month process would consist of the following: 12 months to develop and refine the requirements, 6 to 12 months in design and prototyping, 18 months to test compatibility and function, and an additional 12 months to capture changes from testing, write the technical data package and finally provision the parts. A timeline of the estimated R&D process is shown for clarity.

LTV Engineering estimates the following timeline for R&D:

Requirements development 12 Months Design and prototype development 6 Months

Component, safety and system level testing 18 Months Write TDP, technical bulletins and provision parts 12 Months

Estimated Time to research and develop 48 Months

(ii) Reverse Engineering (RE): To reverse engineer, validate the design, procure prototypes for testing and release a competitive data package would entail a significant amount of time, facility resources, man-hours, and funding. Based on past development experience the estimated cost to develop a reverse engineered competitive product is $7.5M, with an estimated delay of no less than forty-eight (48) months. Required funding would include $0.5M to purchase copies of the Fire Extinguishing Bottle for detailed study and tear down and part measurement. $3.5M for personnel to support the reverse engineering and validation effort as well as fund staff to develop the CAD models, drawings and necessary documentation to enable fully competitive procurement of the HMMWV Fire Extinguishing Bottle. Add another $3.5M to purchase prototypes, execute testing and finalize the product to verify that the newly created item provides equivalent performance when compared against the original. If funding for reverse engineering became available, the forty-eight (48) month process would consist of the following: 6 months to obtain existing parts, 6 months to tear down and understand the design, 6 months to iteratively develop drawings, prototypes and bench test, 18 months to perform system and vehicle level testing, and 12 months to write the technical data package and provision the parts. To complete the reverse engineering process successfully, the Government would have to obtain a sufficient sample size of existing parts to provide a 95% probability and 90% confidence level in the actual size of the existing item to be studied. Once a large enough sample has been collected, the Government would then tear down and understand the design, conduct prototype development and produce the final TDP and associated provisioning documents at a cost of $7.5M. A timeline of the estimated R&D process is shown for clarity.

LTV Engineering estimates the following timeline for RE:

Obtain existing parts 6 Months Tear down and understand the design 6 Months Prototype development 6 Months Component, safety and system level testing 18 Months Write TDP, technical bulletins and provision parts 12 Months

Estimated Time to Reverse Engineer 48 months are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a fully defined and validated TDP for NSN 4210-01-562- 0852. AM General and Kidde Technology holds the technical data regarding this item.

Any vendor that believes they can provide this NSN for a lower cost while meeting the same requirements as the existing item should seek qualification as a secondary source through the Competition Management Office Source Approval Program at their own expense.

8. Market Research:

a. On February 6, 2019 Engineering conducted an online research of known Fire Extinguishing Bottles suppliers looking for published material on newly built replacement units. The results of this search did not produce any new companies that would provide a direct replacement Fire Extinguishing Bottle for the HMMWV that is 100% new and not rebuilt that could be installed in the HMMWV, without considerable time and effort to adapt the new components. Any interested sources will be directed to the source approval program through the competition advocate’s office.

b. A Sources Sought Synopsis was posted to FedBizOpps on 8 February 2019.

https://www.fbo.gov/index?s=opportunity&mode=form&id=b1e9b49fc04a7e8ebdaefb 8a2d8b3d34&tab=core& cview=0

9. Interested Sources: To date, no other sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this NSN.

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-18-C-0105 Date Awarded: 06 December 2017 Vendor: Kidde Technologies Inc.

Estimated Max Value: $471,449.00 Authority Sited: FAR 6.302-1

Contract: SPRDL1-13-C-0112 Date Awarded: 08 July 2013 Vendor: Kidde Technologies Inc.

Estimated Max Value: $80,750.25 Authority Sited: FAR 6.302-1

Contract: SPRDL1-09-C-0053 Date Awarded: 25 March 2019 Vendor: Kidde Technologies Inc.

Estimated Max Value: $638,827.00 Authority Sited: FAR 6.302-1

b. Acquisition Data Availability: A Level III Technical Data Package to the Bottle of the Fire Extinguishing Systems is not available. Fire Extinguishing Bottle drawing 13013808 does exist, but the drawing is not fully defined and only contains testing requirements to clarify the Governments expectations of performance level.

c. Unusual and Compelling Urgency : N/A

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.

NAME: DATE: 1 March 2019 TITLE: Engineer SIGNATURE:

NAME: DATE: 22 March 2019 TITLE: PD LTV Chief Engineer 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.

NAME: DATE: 22 March 2019 TITLE: Item Manager SIGNATURE:

NAME: DATE: 25 Mar 2019 TITLE: LTV Group Lead SIGNATURE:

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.

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. This item has been determined to be commercial and therefore certified cost and pricing data will not be required.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 5/13/19

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

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 5/13/19

15. Legal Concurrence:

Concur:

Date: 05/28/2019

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: FIRE EXTINGUISHER

b. NSN: 4210-01-562-0852

c. Minimum Quantity: 51ea

d. Minimum Estimated Value:

e. Option Percent: n/a

f. Maximum Quantity: 750ea

g. Maximum Estimated Value:

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:

Title: Competition Advocate, DLA Land and Maritime

SHEARER.MARY.E.12507

02449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.05.31 12:30:08 -04'00'