JA_SPRDL120R0235_Redacted.pdf

J&ASPRDL1-20-R-0235 (JA-00274)

No prior J&As are available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0235

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Parker-Velcon Co, Cage 13573, for National Stock Number (NSN) 4930-01- 614-3654, Tank and Pump Unit, Liquid Dispenser, using Army Working Capital Funds

(AWCF).

3. Description of Supplies/Services: The NSN 4930-01-614-3654, part number VC- PORTABLE-50E-1/9-1-1365, Tank and Pump Unit, Liquid Dispenser, is used on the Force Provider. This is a Indefintite Delivery Indefinite Quantity (IDIQ) Long Term Contract (LTC) for a minimum quantity of six each and maximum five year quanity of 250 each. Estimated annual delivery is 50 each. Total Quantity: 250 each. The total maximum 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 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 acquisition of these services by other than full and open competition is 10 United States Code (USC) 2304(c)(1), as implemented by 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: Parker-Velcon Co. is uniquely qualified to fulfill the requirement of this proposed contract based on the following:

a. Parker-Velcon Co. is the only responsible source that produces an Fuel Distribution System (FDS) that complies with the technical and logistical requirements of the Force Provider system. The Government does not own the technical data for this item, which is owned by Parker-Velcron. No other type of FDS will satisfy Force Provider program requirements. The Army has a need for these FDS’s in order to facilitate requirements for production lines and replacements in Force Provider Expeditionary (FPE) Base Camps throughout the world, as well as filling depot stock.

b. The Parker- Velcon Co. VC-Portable 50E-1 is US Army qualified for operation for maximum fueling flow rates of 30-40 gallons per minute. Force Provider packing and preservation plans have been specifically developed around the Parker-Velcon Co. VC- Portable 50E-1 shape and weight. The dimensions and exterior volume of the Parker- Velcon FDS make it the only system capable of packing into portability configuration, and power specifications. Parker-Velcon produces the only FDS that conforms to the interior volume limitations of the Force Provider as packed configuration.

c. Cost:

There will be no cost savings by competing this procurement. The alternative FDS (FSDS) would have to be “scaled down” and modified to meet the Force Provider requirements at a substantial cost to the Government of $1.1M. These costs consist of $50,637 incurred for reverse engineering, documentation, first article testing of a different FDS, Product Manager Force Sustainment Systems (PM-FSS) to reconfigure the pack plans and update the technical manuals to reflect the new configuration. As a result, there will be a minimum additional cost of per module if the Government were to compete this procurement and award to a company other than Parker-Velcon Co. This long term contract will support production of 150 Force provider modules within the next five years. Each Force Provide camp is equipped with FDS. Below are the additional costs if the Parker-Velcon FDS is not procured.

1. The labor to reconfiguring a new pack and pack plans for the weapon system would cost an additional $2,500 per container.

2. The Care of Supplies in Storage (COSIS) cost to update documentation would cost $300.

3. Approximately $500,000 to update the technical manuals to reflect the new FDS.

4. Approximately $500,000 to update the current Force Provider technical manual to reflect the new pack/configuration and any additional interfacing with other systems.

The aggregate delay in the acquisition process for the development of a competitive Technical Development Package (TDP) is at least 54 months. A delay of this scale is not considered acceptable in fulfilling the Army’s requirements and would have a detrimental impact on the Army’s ability to support the soldier in the field and Force Provider requirements.

6. Efforts to Obtain Competition:

a. Effective competition: We are not pursuing competition for this item because of the reasons stated in paragraph 5.

b. Subcontracting competition: The solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages-- Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: The costs associated with reverse engineering and testing will not be recovered through a competitive procurement. No additional actions will be taken to increase competition. The notices required by FAR 5.201 will be published and any proposals received shall be considered.

8. Market Research: TACOM-Natick conducted Market Research in April 2020 and found no manufacturers of small scale, portable, military quality FDS units. A comparison of FDS’s between the Parker-Velcon Co. system (VC-PORTABLE-50E-1) and SEI Industries system (FSDA) was conducted. The comparison analyzed configuration (portability), interface and volume attributes. The comparison results are:

a. The alternative FSDA from SEI Industries is not “man portable”, which is a key system attribute of the Force Provider Expeditionary base camps Fuel distribution System. The alternative system did not meet the portability, interface, weight and dimension requirements for the Force Provider system. The SEI unit would require special moving equipment which is not available in an expeditionary, austere environment.

b. The alternative FSDS from SEI Industries has The requirement for pack out is a maximum length of 42 . The SEI unit will not fit in the designed Force Provider pack-out configuration.

c. The fuel system interface requirement is for 1 ½ The SEI unit uses 2 Camlock connectors which will not interface with Force Provider generators, fuel bladders or other critical equipment.

d. The alternative unit, although designed for deployed service, is not suitable for smaller expeditionary applications or powering small diesel engines. It is designed for larger scale capacity and would pose an unacceptable increased logistics burden.

e. The fuel pumping capacity of the alternative system greatly exceeds the Government need and would add significant cost per volume and weight.

Additionally, the DLA contracting specialist conducted market research in June 2020 with the following results:

a. WEBFlis searches on 04 June 2020 for NSN and part numbers returned results for only the Government part number, but no other information.

b. Google part number searches on 04 June 2020 returned Velcon as the only manufacturer.

c. Bing part number searches on 04 June 2020 returned only the Government part number, but no other information.

d. IHS Haystack searches on 22 June 2020 confirmed that there is a Government part number associated with the Original Equipment Manufacturer (OEM) part number.

The Engineering section for this item has determined that the overall size, (volume) configuration, portability and interfaces of an alternative FDS will not meet the critical Force Provider requirements.

The Contracting Specilaist posted a Sources Sought Notice to beta.SAM.gov on 04 June 2020 and closed 18 June 2020. Responses received are below:

Three vendors - JGB Enterprises, Inc., Technology International, Inc., and BETA Fueling Systems - contacted the contracting specialist and expressed interest in viewing specific drawings and possibly submitting a proposal. Since this was only a SSN, the vendors were informed that they would not be provided access to drawings, or any other documents related to the procurement, until the actual Solicitation is posted.

Additionally, the contracting specialist asked each vendor if they had the current capability to manufacture and provide the required Fuel Distribution System. No vendor provided a positive response. The contracting specialist emailed each vendor with website links if they were interested in becoming an approved source for this item in the future.

The Sources Sought Notice did not identify any additional vendors who can currently provide the FDS that meets the Government specific needs in the required time frame.

This procurement is required to satisfy deployment and Army Acquisition Objective requirements for the Force Provider weapon system. Market Research in June 2020 identified no additional manufacturers of small scale, portable, military quality Fuel Distribution Systems that meet Government specifications.

9. Interested Sources: No additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

Troop Support Contract one time buys:

1. Contract #: Customer PO: SPE8EM19F10M9/ADS Order Number: 839330 Award Date: 14 August 2019 for a quantity of 10 each Contractor: ADS (Distributor)/Parker-Velcon part # VC_PORTABLE-50E Contract Value: Unit Price $13,068.35/Total Price $130,683.50