JA_SPRDL120R0100_Redacted.pdf

J&A SPRDL1-20-R-0100 (JA-00301)

Previous J&A SPRDL1-19-R-0156

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0100

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

2. Description of Action: DLA Land Warren proposes to award a new Firm-Fixed- Price contract to The Boeing Company (Boeing), Commercial and Government Entity (CAGE) 8V613, for National Stock Number (NSN) 5990-01-670-7515, Resolver Assembly, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The NSN 5990-01-670-7515, part number 7- 317221366-101, Resolver Assembly, is used on the end item AH-64E Apache Guardian Attack Helicopter. The Resolver Assembly provides feedback signals to the Gun Subsystem Controller, which is used to determine the elevation angle of the AH-64E gun turret. The deliverables for this contract are a total quantity of 51 each. The total estimated value of this contract is .

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

Acquisition Method Suffix Code (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. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 2304(c)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: The Government does not have rights to the Technical Data Package (TDP) or required specifications to produce the NSN. The ruggedized elevation Resolver Assembly is a unique electromechanical assembly created specifically for the AH-64E Apache Guardian Attack Helicopter. It consists of a modified AH-64 turret trunnion shaft fitted with an anti-rotation, press-fit alignment pin, a modified electrical resolver that is match-drilled & pinned to the trunnion shaft, a ruggedized flexible coupling featuring an improved fastener retention over earlier models and an installed "D" shaped shaft that enables positive retention to the turret fork components.

The electrical function of this assembly is to act as the feedback signal generating sensor as part of the closed loop turret control system. When commanding the turret to point at a target, the commanded line-of-sight (LOS) creates an out of phase condition within the resolver electrical windings, triggering turret elevation movement. The gun cradle pivots in the commanded direction until such time that the rotating resolver returns to an in-phase condition.

Boeing owns the intellectual property and TDP for the Resolver Assembly. Boeing is the original equipment manufacturer (OEM) and the only source that has ever manufactured the Resolver Assembly. They have the requisite manufacturing facilities, component sourcing, tooling, trained personnel, technical information and acquired expertise to produce this item. Boeing has demonstrated the ability to successfully produce and deliver Resolver Assembly units to meet United States Government (USG) requirements. Failure to use the Boeing produced Resolver Assembly units risk unacceptable performance in controlling the AH-64E gun turret, resulting in degraded accuracy and effectiveness. Unqualified units that have not first undergone airworthiness testing and qualification present a potential electromagnetic interference (EMI) risk that could adversely impact flight safety.

The Combat Capabilities Development Command Armaments Center (CCDC AC) project engineer estimates that it would cost approximately $790K to reverse engineer, test and develop a competitive TDP for the Resolver Assembly. The estimated reverse engineering task costs are detailed below:

• $425K for Product Research/Design Definition

• $35K to Build Prototypes

• $235K for Air Worthiness Qualification/Reliability Testing

• $85K to Prepare Competitive TDP, to include detail drawings, quality assurance requirements and special packaging instructions

• $10K for Government TDP Review & Approval

The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the item to create a new and competitive Resolver Assembly TDP. At the current average usage rate of 24 units each year, a current unit cost of , and assuming the 25% savings achieved through competition, the in annual savings would take over years to offset the estimated $790K cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

Effective competition: Due to the reasons cited in section 5 above, the Government is not pursuing competition for this item.

The notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to develop the competitive technical data required to make the Resolver

Assembly fully competitive. No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. TACOM will continue to monitor Boeing's willingness to sell or license rights to their proprietary TDP.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 26 November 2020 and was open for 15 days. No responses were received from the posting.

Boeing is the original equipment manufacturer of the AH-64E aircraft and is an active and responsive source for this Resolver Assembly component designed specifically for the AH-64E, which is still in production. Market research found no commercial alternatives or other military hardware that could be adapted for use on the AH-64E.

Additional market research consisted of catalogs and other generally available product literature published by manufacturers, distributors and dealers, or available on-line. An internet search was performed on 28 September 2020 by

, and the results for alternate items for consideration as substitutes yielded no viable alternatives. Internet search engine queries for alternate sources included search terms "PN 7-617221366-101" or "NSN 5990-01-670-7515" with the following results:

No additional manufacturers were discovered, only secondary market suppliers that would act as a parts distributor at the following web locations:

• https://www.asap-nsnparts.us/manufacturers/boeing-company-the/page-4

• https://www.asap-partservices.com/fscs/5990-synchros-and-resolvers

• https://www.justpartsunlimited.com/fscs/5990-synchros-and-resolvers

• https://www.asapaerosupplies.com/rfq/boeing-company-the/5990016707515/7-

617221366-101/

• https://www.asap-aerospace.com/part-types/resolver-assembly/

9. Interested Sources: To date no additional sources have expressed interest in providing this item. No responses were received from the Sources Sought Notice posted on the beta.SAM.gov website.

10. Other Facts: Procurement History:

Procurement History: The following buys were solicited and awarded as Other Than Full and Open Competition under FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. Delivery Order SPRDL1-19-F-0365 issued off the Blanket Ordering Agreement (BOA) Contract SPE4A1-19-G-0013, awarded on 02 July 2019 to The Boeing Company for a quantity of 77 each Resolver Assembly units with a total dollar value of $690,416.65.