JA SPRDL119R0319 Redacted.pdf

Current J&A: SPRDL1-19-R-0319 Previous J&A: SPRDL1-18-C-0308 and SPRDL1-17-C-0246 are imbedded for review

J&A SPRDL1-19-R-0319

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a contract on a sole source basis to

Amphenol Borisch (CAGE: 01BB2) for the procurement of the Backplane Assembly. The type of funds to be used are Army Working Capital Fund (AWCF) and the contract type is Firm Fixed

Price.

3. Description of Supplies/Services: This award is for the procurement of the Backplane

Assembly in support of the Abrams tank. The item is an electronic system chassis that incorporates connectors, for a variety of printed circuit board modules, in the Abrams’ multiple channel architecture.

The total estimated contract value is for up to 86 ea Backplane Assembly units. For this contract, the deliverables are as follows:

NOUN: Backplane Assembly

a. NSN: 5998-01-4303883

b. TACOM P/N: 12387586-2

c. MFR: Amphenol Borisch (CAGE: 01BB2)

d. MINIMUM QUANTITY: 43 Ea

e. OPTION QUANTITY: 43 Ea

f. UNIT PRICE:

g. ESTIMATED TOTAL VALUE:

h. PRON: EH9C0745EH

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

Acquisition Method Suffix Code (AMSC) C: This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant

Government engineering activity. The qualification procedures must be approved by the

Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition is

Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The Backplane Assembly is a critical item of the electronic system in the M1 Abrams tank. This item is source controlled to Amphenol Borisch and shall meet the requirements specific to its intended function in accordance with Source Control

Drawing 12387586-2. Only the Backplane Assembly produced by the manufacturer identified above is approved for use in the Abrams tank by the U.S. Army TACOM LCMC. A substitute item can be used without prior approval by TACOM. It is imperative to ensure, at the time of contract award, this product demonstrates compliance to design requirements, qualification requirements (including testing for compliance with EMI and EMR shielding and nuclear hardening requirements), and conditions required in verifying that this item meets its required performances. This is a survivability item and is critical for Soldier safety.

Amphenol Borisch has developed, tested, and obtained Government approval for this item for application in the Abrams tanks at their own cost. Only Amphenol Borisch has the capability to manufacture the Backplane Assembly, perform failure analysis, develop inspection and acceptance criteria for components, and repair/rebuild and test this item. Installing hardware that has not undergone similar verifications could lead to a failure of the tank’s electrical power system. Under battlefield conditions, such a failure will render the tank unable to proceed with its mission function.

Currently, Amphenol Borisch is the only approved source to make this item for the Government.

This manufacturer is the sole owner of the technical data package (TDP). The Government does not have proprietary rights to all the data needed for the development of a competitive TDP.

Reverse Engineering is the only option for the Government to develop a competitive TDP – which is needed for full and open competition. Reverse Engineering is a multi-layered process as it requires the procurement and testing of prototypes and release of the design. These efforts involve a significant amount of time and money. The Government does not have the funding required to develop and qualify additional sources for this product. Even if a reverse engineering effort was affordable, this process would incur excessive lead time delay. A new manufacturer’s prototype would need to be tested in conjunction with the overall electrical system of the Abrams tank. The cost to reverse engineer this unique component is estimated at $1.7M and 53 months to complete. Reverse Engineering the TDP includes, but is not limited to, the following:

Reverse Engineering Activity Delay Costs

Obtain existing part samples 4 months $3,320

Hardware design, integration and fabrication/install 20 month $750K

Component and vehicle system testing 20 months $750K

Documentation (drawings/ECP/Tech Manuals) 9 months $200k

Total Estimated Time to Reverse Engineer 53 months $1.7M

The Government would not be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. At the current usage rate of 48 units per year, the current unit cost and assuming savings achieved through competition, the annual savings would take years to offset the estimated $1.7M cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

a. Effective Competition: Per section 7, potential vendors can submit requests to become a source through the Source of Approval Process at any time. Per section 9, a Sources Sought

Notice was posted. Based on the detailed rationale provided in paragraph 5, the Government has no plans to obtain additional competition for this proposed contractual action.

b. To ensure the contractor competitively awards subcontracts to the maximum extent possible, the contract will contain FAR Clauses 52.244-5, “Competition in Subcontracting,” and 52.244-

2, “Subcontracts.” Amphenol Borisch will also be required to submit subcontracting plans for review and approval.

7. Actions to Increase Competition: As stated in section 5, there is no complete TDP available to support a competitive procurement. The Government does not own the TDP necessary to procure this item as full and open competition. This item is source controlled to Amphenol

Borisch. The manufacturer owns the respective technical data and is the only approved source of supply for this item. Because the costs associated with developing a competitive TDP cannot be recovered within a justifiable time frame (as stated in section 5), the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research: Market research was performed by TARDEC Engineering during March

2019. This included reviewing vendor catalogs and available product literature published online to determine if commercial items or non-developmental items are available to meet Government needs, or could be modified to meet the Government's needs. While Backplane Assembly products are produced by several manufacturers, those are not designed and tested to the M1

Abrams unique requirements, as described in section 5, to attain qualification. Additionally, no current vendors have expressed interest to become a qualified source to produce this item.

The Backplane Assembly (NSN: 5998-01-430-3883) appears on the Competition Advocate

Shopping List (CASL) dated 15 February 2019. The CASL, as well as the Advance

Procurement Planning List (APPL), contain TACOM-Warren’s projected buy list of sole source items for the next three years. The lists are updated twice a year and advertised in FedBizOpps.

Contractors interested in becoming a source for this item need to meet the requirements of the

Source Approval Program. This is done at the contractor’s expense to include vehicle level qualification testing. The TACOM Life Cycle Management Command, Competition

Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, TACOM Engineering requires successful vehicle level qualification testing to support approval of a new component. The Government has no plans, or funding, to complete qualification testing at this time. To date, no other sources have approached this office with questions or comments on how to become a qualified source to produce this item.

FedBizOpps Posting:

Sources Sought Notice 2019-289

Item Name: Backplane Assembly

NSN: 5998-01-430-3883

Part Number: 12387586-2

End Item: M1 Abrams Tank

Posted: Mar 18, 2019

FedBizOpps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=a59364989809643f97995e00551f5 de4&tab=core&_cview=0

9. Interested Sources: To date, no other sources have written to express interest in qualifying as a source of supply. Sources Sought Notice 2019-289 was posted to FedBizOpps 18 MAR 2019 for NOUN: Backplane Assembly, NSN: 5998-01-430-3883, Part Number: 12387586-2, as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement history

Contract: SPRDL1-18-C-0308

Award Date: 2018 JUL 07

Contractor: Amphenol Borisch

Value: $508,045.68

Competitive Status: Limited Source

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

Contract: SPRDL1-17-C-0246 https://www.fbo.gov/index?s=opportunity&mode=form&id=a59364989809643f97995e00551f5de4&tab=core&_cview=0 https://www.fbo.gov/index?s=opportunity&mode=form&id=a59364989809643f97995e00551f5de4&tab=core&_cview=0

Award Date: 2017 AUG 25

Contractor: Amphenol Borisch

Value: $224,848.68

Competitive Status: Limited Source

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

b. Acquisition data availability: The Government does not own or have the rights to the technical data for the Backplane Assembly used on the M1 Abrams tank for this procurement.

c. Unusual and compelling urgency: N/A

d. Subcontracting competition: The Government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR19.704.

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.

The POC for this action is , Electrical Engineer, Typed Name:

Title: Team Leader, Army Futures Command

Signature:

Date: 21 March 2019

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:

Title: Group Lead, Armored Maneuver Group (act)

Signature:

Date: 26 MAR 19

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. Other than Cost and Pricing Data will be required. The appropriate forms of cost and/or price analysis will be utilized and negotiations will be conducted if necessary.

Typed Name: Jamal M. Brooks

Title: Contracting Officer

Signature: //JMB//

Date: 10/09/2019

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

Typed Name: Jamal M. Brooks

Title: Contracting Officer

Signature: //JMB//

Date: 10/09/2019

15. Legal Concurrence:

Concur:

Date: 10/21/2019

JA_SPRDL1-18-R-02

04.pdf

J&A_SPRDL1-16-R-0

450.pdf