JA_SPRDL120R0186_Redacted.pdf

J&A SPRDL1-20-R-0186

(No Previous J&A)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0186

1. Contracting Agency: Defense Logistics Agency - DLA Land Warren.

2. Description of Action: The proposed action is to award a contract to Marvin Land Systems, Inc., CAGE: 064H2, for National Stock Number (NSN): 2990-01-676- 2517, “Exhaust System, Engine.”

The NSN: 2990-01-676-2517, Exhaust System, Engine, is used on/for M1A2 SEPv3 Abrams.

Type of action:

New

Utilizing a Firm Fixed Price (FFP) contract for the following:

One time buy with 100% option

PRON Number: EH0C0055EH

Utilizing:

Army Working Capital Funds (AWCF)

3. Description of Supplies/Services: Marvin Land Systems, Inc., CAGE 064H2, will provide: “Exhaust System, Engine,” with National Stock Number (NSN) 2990-01- 676-2517.

Manufacturer Part Number(s):

402-8004 or JCS-02X-90020081

The deliverables for this contract are as follows:

Base Quantity: 25 EA Option: 100% option Total Quantity: 50 EA for a total estimated value of .

Acquisition Method Code (AMC):

4 - Acquire, for the first time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC):

R – The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them.

J&A SPRDL1-20-R-0186

(No Previous J&A)

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 Exhaust System, Engine package. At the current average usage rate of 12 units each year (per the Item Manager), a current unit cost of $5,400.00, and assuming the 25% savings achieved through competition, the $16,200.00 in annual savings would take over 67 years to offset the estimated $1.1M cost of reverse engineering the item and qualifying another source.

The Government does not have the pertinent technical data to enable competitive re-procurement.

The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.

6. Efforts to Obtain Competition:

a. Effective competition efforts: Due to the reasons cited in section 5 we are not pursuing competition for this item.

SOLE SOURCE: Notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above. As stated in section 5, there is no 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 Marvin Land Systems, CAGE 064H2; this 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 (also stated in section 5), the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research:

Market Research efforts included:

Posted a Sources Sought/Request for Information on the Beta.SAM.gov website on:

3/15/2020. Results of the posted are described below: No responses received.

Market research was performed by CCDC GVSC Engineering during March 2020, by reviewing vendor catalogs and available product literature published online, to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs.

Performed Internet searches for suitable competition, described below: