JA_SPRDL121R0020_Redacted.pdf

DEFEN E OG TICS AGENCY HEADQUARTER

872 JOHN . K NGMAN ROAD

FORT BE VOIR V RGINIA 2060 6 2

SPRDL1-21-R-0020 (JA-00182)

NO PREVIOUS J&A

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0020

1. Contracting Agency: Defense Logistics Agency - DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to award a new Firm Fixed Price (FFP) five-year Indefinite Delivery Indefinite Quantity (IDIQ) Long-Term Contract (LTC) to United Technologies Corporation Aerospace Systems (UTAS), Commercial and Government Entity (CAGE) Code: 99167 for National Stock Number (NSN): 2835-01- 676-1595, Generator, Container to be used on the M1A2 System Enhancement Package Version 3 (SEPv3) Abrams. The funds used will be Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The supplies to be acquired under the proposed contract are new Generators with container, NSN: 2835-01-676-1595, Government Part Number 57K7328. The Generator converts engine mechanical power into electrical power to supply the M1A2 SEPv3 Abrams tank electrical system. The Generators will be used by the Army for its inventory of Abrams tanks; the containers are used to ship and store the generators. The total estimated long term minimum contract value is $ and the maximum contract value is $ for a minimum quantity of 64 each and maximum quantity of 1,125 each Generators with Containers.

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 Generator, Container is a kit that consists of a Generator and its storage case. The Generator (Part Number 12591270) is a substantial cost of the Generator, Container (Part Number 57K7328; CAGE: 99167) which is the item being procured. It is impractical to separately procure the container for the OEM�s use in packaging and shipping the generator.

The US Government does not have proprietary rights to the detailed drawings to manufacture this Generator. The Generator is source controlled to UTAS, CAGE:

99167. The applicable Acquisition Method Code and Acquisition Method Suffix Code are listed below.

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (AMSC):

B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-

100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD- STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

The generator converts engine mechanical power into electrical power to supply the M1A2 SEPv3 Abrams tank electrical system. It is a critical item of the M1A2 SEPv3 Abrams tank power and electrical system and needs to meet the requirements specific to its intended function in accordance with Source Control Drawing 12591270. It is imperative that this product meets and demonstrates compliance to established performance, design, test, manufacture, and acceptance requirements as specified in specification SC-SA20460. This product is a survivability item and critical for Soldier safety.

Currently UTAS, CAGE: 99167, is the only approved source to make this item for the Government. UTAS has tested and met all requirements of the performance specification SC-SA20460. UTAS is the sole owner of its build to print technical data package (TDP) for the item. Reverse engineering is the only option for the Government to develop a build to print competitive TDP � which is needed for full and open competition. Reverse engineering is a multi-layered process; it requires the procurement and testing of prototypes and the release of the design. Additionally, extensive testing in conjunction with the overall electrical system of the M1A2 SEPv3 Abrams is required to validate the TDP. The cost to reverse engineer this unique component is estimated at $11.3M and 69 months to complete. Reverse engineering the TDP includes, but is not limited to the following:

Reverse Engineering Activity Delay Costs Obtain existing part samples 9 months $1.3M Hardware design, integration and fabrication/install 24 months $3.5M Component and vehicle system testing, Quality Test 24 months $7M Documentation (drawings/Engineering Change Proposal/Tech Manuals)

12 months $500K

Total Estimated Time to Reverse Engineer 69 months $11.3M

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. At the current usage rate of 21 units per year, at the current unit cost of $ each, and assuming 25% savings achieved through competition, the $ annual savings would take years to offset the estimated $11.3M cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition: Effective competition efforts: Due to the reasons cited in section 5, competition is not being pursued for this item.

Notices required by FAR 5.201 will be posted.

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.

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 above, there is no build to print TDP available to support a competitive procurement. This item is source controlled by UTAS, CAGE: 99167. This manufacturer owns the technical data and is the only approved source of supply for this item. Because of the duplication of costs to reverse engineer, procure and test prototypes, and release the design (also stated in section 5), the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research: A Sources Sought/Request for Information was posted on the Beta.Sam website on 03/09/2021. No responses were received.

Market research was performed by Ground Vehicle Systems Center Engineering during February 2021 by reviewing vendor catalogs and searching for product literature published online. This was done to identify other manufacturers and/or commercial items, or non-developmental items that could meet Government needs or be modified to meet Government needs. While Muncie, Mosa, and Northern Tool products are similar, these items are not designed specifically for the M1A2 SEPv3 Abrams tank, nor tested to the M1A2 SEPv3 Abrams' unique requirements to attain qualification, as described in section 5. These items do not fit the available space within the vehicle. In addition, Muncie, Mosa, and Northern Tool products do not have the correct wire connections and power take-off drive connection to be compatible with the Abrams tank.

Replacement for this component cannot be by a commercial off-the-shelf (COTS) item, and there is no other manufacturer producing this item for the Abrams Tank. This item has been designed by UTAS specifically to meet the M1A2 SEPv3 Abrams tank unique requirements. Installing hardware that has not undergone similar verifications/qualifications could lead to a failure of the tank�s electrical power system.

Under battlefield conditions, such a failure will render the tank unable to proceed with its mission function and will endanger the lives of the crew.

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