JA_SPRDL120R0026_Redacted.pdf

Previous J&A SPRDL1-13-R-0118 is available and included separately.

J&A SPRDL1-20-R-0026

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0026

1. Contracting Agency: Defense Logistics Agency Land Warren (DLA-WRN)

2. Description of Action: The proposed contract action is to award a new 5-year, long term, firm-fixed price contract for the Palletized Loading System (PLS), M1074 and M1075, Ignition Modulator Assembly, NSN: 2920-01-446-1356. Competition will be limited to the approved source only, which consists of: MTU AMERICA INC. (CAGE:

72582), Part Numbers 23530725 or R23521769. Award is projected for the 3rd quarter of FY20. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The contractor MTU AMERICA INC. (CAGE:

72582) shall provide the M1074/M1075 PLS, Ignition Modulator Assembly (NSN: 2920- 01-446-1356). The unit price is estimated at . The guaranteed minimum quantity of the contract is 18 and the maximum quantity is 450. The total estimated contract value is between and .

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the technical data for the Ignition Modulator Assembly (NSN: 2920-01-446-1356) from MTU AMERICA INC. (CAGE: 72582). Therefore, this company is the owner of the intellectual property and retains full-rights-in-data for the detailed technical data. This contract is needed for increasing sustainment stock replenishment demands and a safeguard against washouts for an ongoing pilot repair program on this item. This procurement is also a safeguard in case the washout rate of these assemblies are higher than expected.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the Ignition Modulator Assembly would cost an estimated minimum of $300,000.00 with a lead time of 12 months for design, development, and production.

In addition, it would have to undergo qualification testing. Qualification testing on a PLS engine system would have an additional lead time of 6 months and cost an additional estimated minimum of $300,000.00.

In total, reverse engineering and qualification testing to include material test, form, fit, and function test, performance test, and durability testing would require at least eighteen (18) months and an estimated minimum of $600,000.00. This expense could not be recouped through subsequent competition. The efforts involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure, which could

Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TDP or qualification testing for a new source.

Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON to maintain readiness and avoid vehicle deadlining due to supply problems.

6. Efforts to Obtain Competition: This action is limited to MTU AMERICA INC. (CAGE:

72582), the owner of the intellectual property and manufacturer of this item. No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item. The synopsis notifications required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there 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 technical data package for this item. The source of supply, MTU AMERICA INC. (CAGE: 72582), owns the detailed technical data regarding this item. Any vendor that believes they can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source will be at their own expense.

8. Market Research: Given that no detailed technical data is available for the Ignition Modulator Assembly (NSN: 2920-01-446-1356), market research results are very limited.

The Project Engineer conducted computer-based/internet market research during June 2019. Many Ignition Modulator Assemblies are available commercially, but the Government does not own the technical data, and therefore does not have the information to perform a detailed search regarding the flashing software, internal components, and performance specifications.

None of these sources have provided the Ignition Modulator Assemblies for use in this military specific application, and as described above, would be required to complete testing before being able to supply this component. The results of this research did not produce any new current sources of supply, which could provide the same fit, form and function with certainty. This item is not commercial off-the-shelf (COTS). Interested sources will be directed to contact the Source Approval Program though the Competition

9. Interested Sources:

A Sources Sought Synopsis was posted to FedBizOpps on 10/28/2019.

Sources Sought Notice 2020-028

Item Name: Modulator Assembly, Ignition

NSN: 2920-01-446-1356

Part No: 23530725 Quantity: 12 MIN / 450 MAX End Item: Palletized Loading System

Sources_Sought_Noti ce_2020-028.pdf

To date, no 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:

1. Contract: SPRDL1-13-D-0032

Award Date: 08/01/2013 through 06/28/2018 Contractor: Central Power Systems & Services, Inc.

Minimum Quantity: 24 each Maximum Quantity: 480 each Value: 10 delivery orders awarded with a total value of $730,528.72 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the Ignition Modulator Assembly (NSN: 2920-01- 446-1356).

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 hereby 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.

[ ] $250K to $700K Team Leader [ X ] $700K to $13M AD/Deputy AD

POC: Email:

Team Leader: Date: 6/17/2019 Title: Signature:

AD: Date: 6/18/2019 Title: Signature:

12. Requirement 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: 16 Oct 2019 Title: Signature:

Name: Date: 18 Oct 2019 Title: Signature:

Name: Date: 18 Oct 2019 Title: Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination will be based on appropriate forms of cost and/or price analysis. Negotiations will be conducted as necessary. The Contractor will not be required to submit certified cost and pricing data based on the estimated dollar value and because this item is determined commercial.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 30 Oct 2019

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: 30 Oct 2019

15. Legal Concurrence:

Concur:

Date: 11/06/2019