JA SPRDL121R0044 Redacted.pdf

SPRDL1-21-R-0044 (JA-00432)

No Previous J&A

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0044

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

2. Description of Action: DLA-WRN proposes to award a new Firm Fixed Price (FFP), five-year long-term contract to Kollmorgen, Commercial and Government Entity (CAGE) Code 11384, for National Stock Number (NSN) 3010-01-373-5945, Actuator, Electro-Mechanical, Linear, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The NSN 3010-01-373-5945, part number 57K3244, Actuator, Electro-Mechanical, Linear, (Travel Lock Actuator) is used on the M109A6 Howitzer. The Travel Lock Actuator is used to secure the vehicle’s 155 millimeter (mm) gun system stowed during movement or transport. The total value of this contract is $2,992,500 for a maximum of 900 Travel Lock Actuators. For this contract, the deliverables are as follows:

Noun: Actuator, Electro-Mechanical, Linear

NSN: 3010-01-373-5945

Part Number: 57K3244 Guaranteed Minimum Quantity: 75 each Maximum Quantity: 900 each Unit Price: $3,325.00 each Total Maximum Contract Value: $2,992,500 Purchase Request Order Number (PRON): EH9C1288EH

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 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.

5. Reason for Authority Cited: The Travel Lock Actuator is a critical component of the M109A6 gun system which operates in a unique military weapon system. The performance of the Travel Lock Actuator is specialized and provides unique functionality to the M109A6 vehicle system. It allows the end user to automatically unlock the cannon from the travel lock, point and fire without exiting the vehicle.

Part number 57K3244 is a kit made up of the Travel Lock Actuator (12361513) and the packaging container (12370995). The primary component of the kit is the Travel Lock Actuator which is source controlled to Kollmorgen (vendor part number AQTB-2101-A).

The Government does not have detailed build to print drawings that are necessary for competitive procurement. Kollmorgen has developed, tested, and obtained the Government's approval for this Travel Lock Actuator (and container) for application to the M109A6 vehicle at its own cost. The Government did not fund Kollmorgen’s effort in development and qualification testing of this item or preparation of the build to print TDP after approval. As such, Kollmorgen is the sole owner of the build to print drawings and the Government does not have proprietary rights to anything aside from what is on top drawing 12361513 and the packaging container, drawing number 12370995.

Only Kollmorgen has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to reliably supply this item. The use of incorrect material, improper process control, or quality control during manufacturing of this actuator would result in malfunctioning or even a complete failure of this item for what it is designed. A persistent malfunction or a failure of this Travel Lock Actuator would render the vehicle in a reduced operability functionality. A non-functioning Travel Lock Actuator could force the crew to operate the travel lock in a manual function which would expose them outside the vehicle.

Only Kollmorgen’s Travel Lock Actuator passed all unique characteristics in the areas of performance, design, construction, operations in various environmental conditions and vehicle system testing. In addition, only Kollmorgen’s Travel Lock Actuators passed the tests that were critical to ensure the vehicles would be mission capable and operationally ready. If an untested and/or non-approved component is installed in the vehicle, the electrical system may malfunction and could result in start-up failures or failure of electrical components at a critical time.

Endurance: The Travel Lock Actuator must comply with performance test criteria shown on drawing 12361513. It includes extensive endurance, performance and environmental tests. Moreover, the unit provides capabilities of remotely operating the Travel Lock that reduces crew exposure during battlefield operations. These types of conditions could risk the safety of the crew and even deadline the vehicle if extreme failures occur. This would impact the Operational Readiness (OR) Rate, until the malfunctioning or failed actuator is either repaired or replaced.

Kollmorgen responded to the Government’s inquiry regarding the sale of the TDP for PN 57K3233 explaining that the fee would be in the upper seven digits “if Corporate agreed.” Therefore, since Kollmorgen typically does not sell technical data for a mature program, if the Government wanted to procure technical data, it should have been negotiated during the design phase.

The Government does not own the TDP for the Travel Lock Actuators, and Kollmorgen is the only approved source and owner of the respective technical data. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP. Due to the limited technical data available, Reverse Engineering is the only recourse the Government could entertain to increase competition through development of a competitive TDP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. The cost to either reverse engineer the part or develop a new part is estimated at $1.91M minimum. Developing a TDP for this item would take 4.25 years or more. Based on similar projects, the cost to develop a build to print competitive package for this item through reverse engineering is estimated below:

Table 1. Reverse Engineering Breakdown Reverse Engineering (RE) Activities

Description Time (Months)

Cost (Millions)

Obtaining existing part samples

Obtaining current Kollmorgen Travel Lock Actuators for tear down, analysis and testing to define structural and performance characteristics.

6 $0.005

Reverse Engineer parts, and documentation

Reverse engineer the Travel Lock Actuator, document results and create prototype TDP.

18 $0.300

Prototype Fabrication Fabricate prototype Travel Lock Actuators and perform vehicle fit up.

9 $0.300

Component Testing Component testing to verify the prototypes performances requirements. The testing includes endurance, cycle and environmental testing.

6 $0.400

Vehicle Testing Vehicle testing to verify the prototypes’ form fit and function. As well as extreme environmental testing.

12 $0.900

Total RE 51 $1.905

The Government will 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 new, fully competitive package. Even if an estimated 25% savings could be achieved by adding another supplier at the current average usage rate of 157 units per year, at the current unit cost of $3,325.00, and assuming the 25% saving achieved through competition, the $130,506.25 annual savings would take

14.5 years to offset the estimated $1.91M 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 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;" 52.219-9, “Small Business Subcontracting Plan;” 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 an unlimited competitive procurement. Kollmorgen is the sole owner of the defining drawings and technical data rights. The Government did not buy Kollmorgen’s proprietary rights to produce a competitive TDP. This item is a specifically designed Travel Lock Actuator for application to the M109A6. Further, due to the costs associated with developing a competitive TDP that cannot be recovered, as stated in section 5, the Government would not be able to recover the $1.91M to reverse engineer the Travel Lock Actuators within a justifiable time frame and thus are not actively pursuing the development of a competitive TDP at this time.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 13 May 2021 and was open for 10 days. No response was received.

Market research was performed by Ground Vehicle Systems Center Sustainment Engineering on 10 February 2021 to review cost and competition considerations. An extensive search was performed through online actuator suppliers including the following: www.firgelliauto.com, www.grainger.com and www.thomsonlinear.com. No commercial items or non-developmental items are available which meet Government's needs or could be modified to meet the Government's needs like the Travel Lock Actuator supplied by Kollmorgen. The performance requirement for the Travel Lock Actuator indicates a Minimum Axial Thrust of 1,000 pounds (lbs.) at the Maximum Current of 15 amps and 400 lbs. at 8 amps (Note 17 on drawing 12361513). Products from Firgelli Automation have lower load ratings and thus, do not meet the Government’s requirements. Products from Grainger and Thomson Linear have higher load ratings however fail to meet the fitment requirements to be able to install the http://www.firgelliauto.com/ http://www.grainger.com/ http://www.thomsonlinear.com/ actuator without further modifications to mounting brackets.

These commercial products have not been tested to meet requirements currently provided by the Travel Lock Actuator from Kollmorgen, therefore, would require extensive testing to be considered a suitable replacement of the current Travel Lock Actuator. This Travel Lock Actuator is a unique and specialized application and is designed especially for the M109A6. This NSN was confirmed, through IHS and WebFLIS, to have only previously been procured through Kollmorgen. Kollmorgen confirmed that they are still able to manufacture the part. No other sources were identified which manufacture Travel Lock Actuators for this unique application on the M109A6.

Keywords: 24-volt Linear Actuator, Heavy Duty Website: https://www.firgelliauto.com/ Findings: Various 24-volt linear actuators were available through Firgelli Automations with different stroke lengths and load ratings. None of the products listed under the Firgelli Automations websites met the load and the stroke lengths required for this application.

Keywords: Linear Actuator, 1,000 lb. Rated Load Website: https://www.grainger.com/ Findings: Three products were found that meet/exceed the rated load of 1,000 lbs. with a 4-inch stroke. All three products by the manufacturer Warner Linear, found on Grainger, do not meet the dimensional requirements for the actuator used on the M109A6 Howitzer.

Keywords: Linear Actuator, 24-volt, 1,000 lb. + Rated Load, 4” inch Stroke Website: https://www.thomsonlinear.com/

Findings: Several 24-volt linear actuators were found that are made by Thomson Linear. The actuators found meet the voltage, load, stroke and speed requirements, but they did not meet the dimensional requirements for the actuator used on the M109A6 Howitzer.

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

10. Other Facts: Procurement History:

a. Procurement History (for refurbished travel lock actuators only, procurement history on factory new travel lock actuators is not available):

Award Total Value Date of Award Awardee

W56HZV19C0025 $3,325.00 08.11.2018 KOLLMORGEN

W56HZV17C0002 $3,126.00 06.12.2016 KOLLMORGEN

http://www.firgelliauto.com/ http://www.grainger.com/ http://www.thomsonlinear.com/

X Celeste Kozinski 5/26/2021

X James J. Sawyer

W56HZV15C0010 $2,870.14 14.10.2014 KOLLMORGEN

W56HZV14P0464 $2,870.14 05.09.2014 KOLLMORGEN

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: Celeste Kozinski Title: Division Chief, Sustainment Engineering Email: celeste.r.kozinski.civ@mail.mil Signature:

5/26/2021

Sign ed by: KOZINSKI. CELESTE. RENEE. 1392159130

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: James Sawyer Title: Director, Fires & Infantry Support Email: james.j.sawyer8.civ@mail.mil

Sign ed by: SAW YER. JAMES. J. 1369415065

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.

mailto:celeste.r.kozinski.civ@mail.mil mailto:james.j.sawyer8.civ@mail.mil

X //JJM//

X //JJM//

Name: Mahlmeister, Jeffrey J Title: Contracting Officer Email: Jeffrey.j.mahlmeister@dla.mil

Sign ed by: MAHLMEISTER. JEFFREY. J. 1288587244

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

Name: Mahlmeister, Jeffrey J Title: Contracting Officer Email: Jeffrey.j.mahlmeister@dla.mil

Sign ed by: MAHLMEISTER. JEFFREY. J. 1288587244 mailto:Jeffrey.j.mahlmeister@dla.mil mailto:Jeffrey.j.mahlmeister@dla.mil

SHEARER.MAR Digitally signed by

Y.E.1250702449 Date: 2021.06.07 07:27:42 -04'00'

X SHEARER.MARY.E.1250702449

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETION

Approval Authority for Acquisitions Equal to or Greater Than $750,000, But Less Than $15M

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. NOUN: Actuator, Electro-Mechanical, Linear

b. NSN: 3010-01-373-5945

c. Guaranteed Minimum Quantity: 75 each

d. Maximum Quantity: 900 each

e. Estimated Total Value: $2,992,500

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Competition Advocate