JA-SPRDL120R0254_Redacted.pdf

DEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

SPRDL1-20-R-0254 (JA-00300)

Previous J&A: SPRDL1-17-R-0103

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0254

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Meggitt Defense Systems Inc. (CAGE: 62228), for National Stock Number (NSN) 1005-01-221-7602, Carrier Drive Assembly, using Army Working Capital Funds

(AWCF).

3. Description of Supplies/Services: The Carrier Drive Assembly, NSN 1005-01-221- 7602, part number (PN) 014499-505, is used on the AH-64D/E Apache Attack Helicopter. The deliverables for this contract are for a total base quantity of 315 each.

The maximum total value of this contract is $

The carrier drive assembly is an electrically controlled, hydraulically powered, mechanical assembly that facilitates transfer of 30 millimeter (mm) ammunition between the Apache aircraft's link-less ammunition handling system and the ammunition storage magazine during both ammunitions uploading and M230 Gun firing.

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (AMSC):

H - The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s).

This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, 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 Federal Acquisition Regulation (FAR) 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

(Previous J&A: SPRDL1-17-R-0103)

5. Reason for Authority Cited: The carrier drive assembly is an electrically controlled, hydraulically powered, mechanical assembly that facilitates transfer of 30mm ammunition between the Apache aircraft's link-less ammunition handling system and the ammunition storage magazine during both ammunitions uploading and M230 Gun firing. The carrier drive interfaces with the ammunition magazine and the feed/return chutes to perform this function. The tensioned ammunition conveyor chain requires responsive motion control via closed feedback loop control system to ensure the chain never goes slack, resulting in an immediate ammunition jam. To provide this motion control, the assembly responds to AH-64D/E Side loader/Magazine Controller command signals providing mechanical assistance to move the ammunition laden continuous ammunition conveyor system.

Meggitt Defense Systems Inc (MDSI, CAGE 62228) owns the intellectual property and Technical Data Package (TDP) for the carrier drive assembly. MDSI is the Original Equipment Manufacturer (OEM) and the only source that has ever manufactured the carrier drive assembly. They have the requisite manufacturing facilities, tooling, trained personnel, technical information and acquired expertise to produce this item and have demonstrated the ability to successfully produce and deliver carrier drive assemblies to meet United States Government (USG) requirements. Failure to use MDSI produced carrier drive assemblies risks significant damage to the AH-64D/E ammunition handling system, rendering the AH-64D/E 30mm area weapon systems inoperable.

The Combat Capabilities Development Command (CCDC) Armaments Center (AC) project engineer estimates that it would take a minimum of 42 months to reverse engineer, test and develop a competitive TDP for the carrier drive assembly. The estimated reverse engineering task durations are detailed below:

Create Reverse Engineering Statement of Work & Award Reverse Engineering Contract 9 months Product research, design definition 13 months Prototype fabrication/acquire source-controlled components 15 months Perform qualification/reliability and interchangeability tests 12 months Prepare competitive TDP 12 months USG TDP review, acceptance & release 4 months

The reverse engineering estimate contains several tasks which would be conducted in parallel. The optimal critical project path schedule is 42 months and illustrated in Figure 1 below:

Figure 1 This schedule assumes that current source controlled hydraulic components would be retained and not reverse engineered, reducing schedule and technical risk. The 12 months of testing involves a moderate level of schedule risk due to uncertainty with US Proving Ground and AH-64D/E aircraft availability. The time required to reverse engineer a competitive carrier drive assembly TDP would create an unacceptable delay in meeting the USG's requirements.

Lack of carrier drive assembly supply support impacts not only fielded unit demands but will also adversely affect the AH-64E production. Current demand rate of four per month includes recurring field demands, but also includes Program Management (PM) Apache Attack Helicopter's requirements to support the AH-64E production line. Tank- Automotive Armaments Command (TACOM) currently has six each carrier drive assemblies on hand, with 21 backorders.

The 42-month delay needed to reverse engineer a competitive TDP would generate an additional shortage of 168 carrier drive assemblies, then if this item was acquired by sole source procurement from the OEM. The resultant fielded unit backorders would render an additional 15% of the fielded AH64 30mm gun systems "not mission capable" and delay manufacture of 82 AH-64E production aircraft destined for US and allied nations, adversely impact weapon system fielding.

6. Efforts to Obtain Competition:

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

b. Subcontracting competition: Unless the contract is awarded to a small business, 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.

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; however, TACOM will continue to monitor Meggitt's wiliness to sell or license rights to their proprietary TDP.

8. Market Research: A Sources Sought Notice was posted to Beta.SAM.Gov on 14 May 2020 and was open for 15 days. No responses received.

Beta.Sam Sources Sought Notice Posting

The sources sought synopsis yielded no interested competitors or alternate distributors actively marketing this item. Meggitt is an active and responsive source for this component designed specifically for handling M788 & M789 Lightweight 30mm ammunition on the Apache Attack Helicopter. Meggitt actively markets the AH-64 carrier drive assembly as a component of their link-less ammunition storage and handling system on their web page: https://meggittdefense.com/ammunition-handling.

Additional market research consisted of catalogs and other generally available products literature published by manufacturers, distributors, and dealer or available on-line. An Internet search was performed on 26 August 2020 by CCDC AC Project Engineer and the results for alternate items for consideration as substitutes yielded no viable alternatives. The following websites were researched:

Web search engine queries for alternate sources included search term "PN 014499- 505" or "NSN 1005-01-221-7602" with the following results:

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

• https://www.parttarget.com/1005-01-221-7602_1005012217602_014499-

505.html

• https://nationalstocknumber.info/national-stock-number/1005-01-221-7602

• http://chipsonsale.com/fsc-1005-9850-guns-through-30mm.html

It is noted that none of these secondary market suppliers responded to the sources sought notice as interested suppliers.

A search on the following websites:

“https://www.noblesworldwide.com/viper-gun-systems-30mm/“

This item is an alternate feed system for M788/M789 ammunition; however, the viper system is a "linked ammunition" system and is not compatible with the AH-64.

“https://ndiastorage.blob.core.usgovcloudapi.net/ndia/2012/armaments/Thursday14121 hearn.pdf”

This website provided information on a separate Meggitt developed link less ammunition system; however, this ammunition system was designed to handle the 30mmx173mm ammunition used on the MK44, a larger ammunition cartridge that is not compatible with the AH-64.

Since the carrier drive assembly was designed specifically for the AH-64, market research found no commercial alternatives or other military hardware that could be adapted for use on the AH-64. If any such substitutes did exist, they would not be logistically supportable with the current supply of DLA managed spare parts in the Federal Supply System.

9. Interested Sources: To date no additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

Contract SPRDL1-18-C-0162, was awarded on 26 January 2018 to Meggitt Defense Systems Inc. for the procurement of 60 each of the Carrier Drive Assembly. The total contract value was $3,299,577.00. The solicitation was solicited as Other Than Full and Open Competition. A J&A was approved utilizing FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services will Satisfy Requirements.

Contract W52H09-08-0174, was awarded on 13 March 2008 to Meggitt Defense Systems Inc. as a one-year Firm Fixed Price type contract with two option years.

The solicitation was solicited as Other Than Full and Open.

- Delivery Order, W52H09-08-0174 / 0001, was awarded on 20 March 2008 to

Meggitt Defense Systems Inc. for the procurement of 30 each of the Carrier Drive Assembly. The total delivery order was $1,951,771.00.

Contract DAAE20-02-D-0057, was awarded on 01 May 2002 to Meggitt Western Design Inc. (doing business as (dba) Meggitt Defense Systems Inc.) to procure catalog parts for the 12-Pak Magazine and Loader/Downloader. The solicitation was solicited as Other Than Full and Open Competition.

- Delivery Order, DAAE20-02-D-0057 / 0081, was awarded on 31 May 2007 to

Meggitt Western Design Inc. (dba Meggitt Defense Systems Inc.) for the procurement of 50 each of the Carrier Drive Assembly. The total delivery order was $1,344,320.00.

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.

Name:

Title: Chief, Configuration Management Division Email:

Signature:

10/20/2020

X

12. Requirement Certification: I certify that the supporting data under cognizance which are included in the justification are accurate and complete to the best of knowledge and belief.

Name:

Title: R&S Director Soldier Chem/Bio Email:

10/27/2020

X

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the results of a detailed cost and or price analysis. The contractor will be required to submit certified cost and pricing data as the expected value of this procurement falls within the threshold. This item is non-commercial.

Name: Nichols, Timothy A CIV DLA LAND AND MARITIME (USA) Title: Contracting Officer Email: Timothy.Nichols@dla.mil

X Timothy A. Nichols

Signed by: NICHOLS.TIMOTHY.A.1104372445

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Nichols, Timothy A CIV DLA LAND AND MARITIME (USA) Title: Contracting Officer Email: Timothy.Nichols@dla.mil

X Timothy A. Nichols

Signed by: NICHOLS.TIMOTHY.A.1104372445