JA_SPRDL121R0040_Redacted.pdf

SPRDL1-21-R-0040 (JA-00406)

(No previous J&A is available)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0040

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

2. Description of Action: The proposed action is to award a new Five-Year Indefinite Delivery Indefinite Quantity (IDIQ), Long Term, Firm-Fixed-Price contract to CEF Industries LLC (CEF), Commercial and Government Entity (CAGE) Code: 00268, for National Stock Number (NSN): 3040-01-652-9227, NOUN: Rammer, Linear Actuator, Part Number (PN) 13055589 using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The Rammer, Linear Actuator NSN 3040- 01-652-9227, PN 13055589, is used on the M109A7 Howitzer, 155MM. The contract will be for a maximum quantity of 314 each. The minimum guaranteed quantity is nine each with an estimated annual quantity of 45 each. The estimated minimum guaranteed value of the procurement is . The estimated maximum value of the contract is .

Acquisition Method Code (AMC):

3 - Acquire, for the second or subsequent 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 (TDP), 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.

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 Rammer Linear Actuator is used on the M109A7 vehicle. It is an electromechanical device configured with an integral metal rod that extends or retracts primarily on electrical command. The end of the rod is loosely attached to a slotted cam on the Rammer latch shaft. As the Linear Actuator rod extends or retracts it either pushes or pulls the cam, forcing the shaft to rotate to one of two fixed positions. One fixed shaft position LOCKS the Rammer pivot arm safely in place for either Load or Stow operations. The other shaft position UNLOCKS the Rammer pivot arm so it can freely pivot between operational positions. To summarize, the Linear Actuator provides the electromechanical force to latch (lock) and unlatch (unlock) the Rammer pivot arm enabling key operational capabilities of the Rammer.

The Rammer, Linear Actuator is source controlled to CEF. CEF has already produced this item. Their part was used for product development and testing of the M109A7 vehicle. The Government has a TDP that informs of the required technical specifications but does not include a list of the components required to build the item.

The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement. Additionally, the Government requires any new contractor to be qualified prior to being approved as a supplier using the source approval procedure. As a result of the information above and the Government requirements, there would be significant additional cost and time to approve a new source. There is medium to high risk in adding a new source at this time. Testing resources may not be available when needed. Significant delays are possible.

In addition to the above, BAE (the end item Original Equipment Manufacturer (OEM)), qualified only one source for the item. This item has very specific specifications and interfaces. No commercial off the shelf (COTS) item is available that would meet the specific requirements of this application. Any COTS item would have to be modified, pass qualification and on vehicle testing. Both types of testing are required by the Government before source approval and the contractor being added to the drawing as an approved source.

CEF Industries has developed, tested, and obtained the Government’s approval for this part in this application on the M109A7 Howitzer at their own cost. The Government did not fund the contractor is its effort in development and qualification testing of this item.

Any new source would have to develop and qualify their unit. Because the information available from the Government is to a performance specification, a new contractor would have to research and specify all the subcomponents. This would take significant time and money. There is medium risk to the M109A7 program that this new component could behave differently than the currently approved part. A new source would have to undergo significant testing and development. This would add cost, schedule, and performance risks. The use of incorrect materials and/or improper process/quality control during manufacturing would result in the malfunction of this component and other dependent systems. Use of any other source other than this contractor would increase the possibility/probability of any linear actuator malfunctions.

Since this part has been validated for production by the approved source, there are no current plans to generate a competitive TDP, either through purchase or via reverse engineering. Both would cause product delays and negatively impact the availability of the part in the field.

A separately funded Work Directive under the System Technical Support contract with BAE Systems would need to be negotiated and awarded to qualify a new source. No estimate for cost and schedule currently exists. Funding to qualify additional source(s) of supply for sole source items in the M109A7 TDP is an Unfunded Requirement (UFR).

Costs to develop and test new source would be very significant. Testing on a vehicle may also be required. Resources are currently not available for this. It is cost prohibitive to reverse engineer this part. The part and performance variants have been developed by the contractor. In addition to the existing contract, the Government would need to acquire additional resources to perform all development and testing to successfully reverse engineer this unit. The following is a rough estimate of the associated Government time delay and costs.

Reverse Engineering Activity Delay Cost Additional Drawing & Specifications 18 months $ 120,000 Qualification Testing 18 months $ 500,000 Verification Testing 12 months $ 500,000 Total Estimated Time to Reverse Engineer 48 months $1,120,000

This time and cost would not be recouped based on the M109A7 volumes projected to be built and serviced.

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 package. At the current average usage rate of 25 units each year, a current unit cost of , and assuming the 25% saving achieved through competition, the in annual savings would take over years to offset the estimated $1,200,000 cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

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

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

c. 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, and the successful contractor will be required to submit a Small Business Sub-Contracting Plan.

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, the Government does not own the TDP information necessary to support a competitive procurement. The Government does not own a TDP necessary to procure this item on a competitive basis. There are also no contractors currently in the process of being qualified as an alternate source of supply for this item. Currently, there are no planned