JA_SPRDL120R0024_Redacted.pdf

DEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

J&A SPRDL1-20-R-0024

(Previous J&A DAAE2002G0009 not found)

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a new contract on a limited source basis to General Dynamics Land Systems (CAGE: 01417) for the procurement of the Vapor Control Supply Assembly. Army Working Capital Funds (AWCF) will be used and the contract type is Firm Fixed Price.

3. Description of Supplies/Services: The items to be acquired under the proposed contract are new Vapor Control Supply Assembly for the continued support of the Abrams vehicle. The Vapor Control Supply Assembly is an integral part used on all Abrams vehicles. The total estimated contract value of this contract is for up to 135 Ea Vapor Control Supply Assemblies (VCSU). For this contract, the deliverables are as follows:

a. NOUN: Vapor Control Supply Assembly

b. NSN: 4130-01-530-1044

c. Manufacturer P/N: 13019948 (Vendor P/N 12438462-5)

d. Minimum Quantity: 6 Ea

e. Maximum Quantity: 135 Ea

f. Estimated Unit Price:

g. Estimated Minimum Dollar Value:

h. Estimated Maximum Dollar Value:

i. PRON: EH9L0443EH

j. Vehicle System: M1 and M1A1 Abrams FOV

k. Type of Contract: Firm Fixed Price

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.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.” FAR 6.302-1 provides that “supplies may be deemed available only from one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The Vapor Control Support Unit Assembly is a critical component of the M1 and M1A1 Abrams Family of Vehicles. This item is source controlled (sole source) to General Dynamics Land Systems (CAGE: 01417), who is the actual (or original equipment) developer and manufacturer. The Government does not own proprietary rights to General Dynamics Land Systems’ data that would be required to produce a competitive technical data package (TDP). The current VCSU Assembly drawing/TDP, source control drawing No.

12438462-5, does not contain adequate technical data and/or information necessary to support a full and open competition. General Dynamics Land Systems is the actual (or original equipment) manufacturer and the only known source that possesses the required technical knowledge and engineering expertise to successfully manufacture this item per the current TDP. General Dynamics Land Systems developed, tested, and obtained the Government's approval of this item for the M1 Abrams VCSU Assembly at their own expense. The Government did not fund General Dynamics Land Systems efforts in developing and testing this item. Additionally, the Government did not fund General Dynamics Land Systems to prepare fully detailed TDPs. As such, General Dynamics Land Systems is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the General Dynamics Land 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.

CCDC Armaments Center Engineering estimates the cost to develop a competitive technical data package for this item through reverse engineering could run as high as $220,000.00 and require an estimated delay of at least 12 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 to meet the Government’s requirements, it would then take an additional $50,000.00 and approximately 6 months for the U.S. Army/ CCDC Armaments Center to develop Government requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost $350,000.00 and approximately 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 approximately $620,000.00 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 30 months. A delay of this scale is not considered acceptable in fulfilling the Army’s requirements and would have significant detrimental impact on the Army’s ability to support the Soldier in the field and will jeopardize the availability and supportability of Abrams FOV.

Due to lack of funding and need of the item requirement, the Government would not be able to conduct reverse engineering efforts 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 would meet the Government’s requirements.

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 Competition Advocate’s Source Approval Program. The Competition Management Office (CMP) will encourage interested parties to submit a Source Approval Request (SAR) for this time for future buys.

8. Market Research: In December 2018 market research was performed by CCDC Armaments Center Engineering. An online search was performed, similar weapon systems were examined, and equivalent parts were examined for potential compatibility. At that time, CCDC Armaments Center Engineering determined the VCSU Assembly, 12438462-5, is a unique military item. No commercial equivalent exists. Therefore, no commercial item will satisfy the Army's need for the VCSU Assembly.

A general market research was performed by the Contract Specialist for publicly available online information for the Noun: Vapor Control Supply Assembly, NSN: 4130-01-530-1044, P/N:

12438462-5. This research included searching for published material on new replacement units and other product information. The results of this search did not produce any new information or product catalogs on any company that provides a direct replacement for the VCSU.

9. Interested Sources: There has not been any expressed interest by any known contractors to become a qualified source to produce the VCSU Assembly (PN: 12438462-5). Sources sought notice 2019-456 was posted to Fed Biz Opps on 12 July 2019.

https://www.fbo.gov/index?s=opportunity&mode=form&id=019095d8a686bb60390fff09ba8246 76&tab=core&_cview=0

Signature:

POC: RDAR-EIS-CL,

10. Other Facts. Procurement History:

The following procurement was made sole source to General Dynamics Land Systems using less than full and open competition, justified pursuant to FAR 6.302-1(a)(2)(ii). Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements and 41 U.S.C. 253(c), as implemented by citing FAR 6.302-1(a)(2)(ii):

(1) Contract: DAAE2002G0009

Contractor: General Dynamics Land Systems

Award Date: 12/27/2004

Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source

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: 23 September 2019 Title: Chief, Large Caliber Systems Branch 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.

Name:

Title: Item Manager

Date: 25 Sep 2019

Name:

Title: Director, USA TACOM ILSC, GCS R&S

Date: 17 Oct 2019

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine the contract price is fair and reasonable. Certified Cost and Pricing Data will be required to justify price reasonableness. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted, if necessary.

Typed Name: Jamal M. Brooks Date: 10/28/2019 Title: Contracting Officer Signature: //s//

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 Date: 10/28/2019 Title: Contracting Officer Signature: //s//

15. Legal Concurrence:

Typed Name:

Date: 11/1/2019 Title: Legal Advisor

Approval Authority for Acquisitions Greater Than $13.5M.

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: Vapor Control Supply Assembly

b. NSN: 4130-01-530-1044

c. Manufacturer P/N: 13019948 (Vendor P/N 12438462-5)

d. Minimum Quantity: 6 Ea

e. Maximum Quantity: 135 Ea

f. Estimated Unit Price:

g. Estimated Minimum Dollar Value:

h. Estimated Maximum Dollar 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.

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.11.19 17:15:21 -05'00'

Mark A. Brown SES, Acquisition Executive

BROWN.MARK.A

BERT.104117503