SPRDL1-24-R-0028 (JA-00702)

Previous J&A: SPRDL1-16-R-0261

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

JA-00702 - SPRDL1-24-R-0028

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

2. Description of Action: DLA Land Warren proposes to award a new Firm-Fixed- Price contract to Elbit America, Inc., Commercial and Government Entity (CAGE) 0WEC9, for National Stock Number (NSN) 5998-01-621-7332, Circuit Card Assembly (CCA), using Army Working Capital Funds.

3. Description of Supplies/Services: Elbit America will provide the CCA, NSN 5998-01-621-7332, Part Number (P/N) 12976238-21 for use on the Bradley. The quantity to be procured is a minimum of 15 each with a maximum amount of 460 each.

The estimated unit price is $ each, with a total estimated maximum value of

. The Purchase Request Order Number (PRON) is EH3L0173EH.

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.

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement. Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(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: As authorized by FAR 6.302-1, procurement by other than full and open competition is necessary because no other company has access to the proprietary technical data and test equipment owned by Elbit America, Inc. that is needed to properly produce and test this Circuit Card, P/N 12976238-21.

The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.

The United States (U.S.) Government does not have rights to the Technical Data Package (TDP) or specifications. Elbit America, Inc. (CAGE 0WEC9) owns the proprietary internal design of the CCA. The U.S. Government has no technical data for the proprietary internal design of each CCA produced by this vendor. No other companies have access to the proprietary technical data or test equipment owned by the qualified vendor Elbit America, Inc. (CAGE 0WEC9). The U.S. Government does not have any additional information at this time that can be used to compete this requirement, and there is no process underway, or funding by which competition can be technically supported in a responsible time frame.

As addressed above, Elbit America, Inc. (CAGE 0WEC9) owns all technical data rights for this component. Complete Level III TDPs, suitable for competition, are not available for purchase. To develop technical data, the U.S. Government would need to reverse engineer these components which would not be practicable since there is no funding to qualify a new vendor. There are no vendors currently in the process of being qualified.

There are no current or planned efforts to qualify any additional sources for the reasons listed above, including the fact that there is no funding for this effort. Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by synopsis and posting to the SAM.gov website.

As indicated above, the U.S. Government does not have a means of obtaining adequate information in a responsible time frame. Funding for a Reverse Engineering effort has not been budgeted for any future procurements of this item. It is estimated that a Reverse Engineering effort by a second contractor would take and $300,000 to obtain fully competitive technical data. This contractor would then need and $1,000,000 to produce prototypes for both in-house and on-vehicle testing to qualify their design of this item for use on the Bradley Turret. It should be noted that during this process, there is no guarantee that this process would result in a second vendor becoming a qualified production source for this item. Additionally, qualification of a second vendor would not guarantee any large decrease in unit cost. If the unit purchase price were to drop as much as 25 percent because of having two competitive bids, the time to recoup these costs would not justify the effort expended.

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. Notices required by FAR

5.201 will be posted.

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.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

There are no current plans to increase competition for future procurements due to the reasons detailed above. As stated in Section 5, the Government does not own the complete TDP to support a competitive procurement. At this time, there are no planned efforts to reverse engineer the item. The Government will continue to perform market research for future procurement actions.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 1 August 2023 and was open for 15 days. No responses were received.

In accordance with the tenets set forth in FAR 10.002(b)(2)(vii), Market Research was conducted by the U.S. Army, Combat Capabilities Development Command – Armaments Center, Rock Island on 19 July 2023. An online search for the words “Circuit Card Assembly ” “Bradley Fighting Vehicle” and “NSN 5998-01-621-7332” was conducted and the results indicated that there are no commercially available products that would meet the known requirements, and as a result, it is extremely difficult to find any alternative sources. If the technical data, such as drawings with dimensions, performance requirements, were acquired from Elbit America, Inc. (CAGE 0WEC9) and converted to Government drawings, the Government would still require vigorous performance and environmental testing to validate new supplier/manufacturer’s parts.

This option would not be cost-effective as described above.

https://www.custom-mfg-eng.com, keywords: Circuit Card Assembly & Handstation Electronic Module. Findings: various CCAs were found on this website varying in size and design. Due to lack of technical data, the Government cannot determine one to replace the current part from Elbit America, Inc. (CAGE 0WEC9) https://www.macrofab.com, keywords: Circuit Card Assembly & Handstation Electronic Module. Findings: various CCAs were found on this website varying in size and design.

Due to lack of technical data, the Government cannot determine one to replace the current part from Elbit America, Inc. (CAGE 0WEC9) https://e-teknet.com, Circuit Card Assembly & Handstation Electronic Module. Findings:

various CCAs were found on this website varying in size and design. Due to lack of technical data, the Government cannot determine one to replace the current part from Elbit America, Inc. (CAGE 0WEC9)

As a result of the market research conducted, it was concluded that this product, CCA, is not used, sold/ leased, or offered for sale to the public and is not available in the commercial marketplace with or without modifications pursuant to the definition of a commercial product at FAR 2.101.

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

10. Other Facts: Procurement History:

Contract Number: SPRDL1-20-D-0019 Award Date: 24 April 2020 Contractor: Elbit America

11. Technical Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

Name:

Title: Chief, Mobile Direct Fires Branch Email:

Signature:

7/22/2024

X

Signed by: USA

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

Name:

Title: Division Chief, Sourcing Email: veneesha.m.slater.civ@army.mil Signature:

7/9/2024

X

Signed by:

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 or pricing data as the expected value of this procurement falls within the threshold. This item is other than commercial.

Name: Harrison, Robert W CIV DLA LAND AND MARITIME (USA) Title: Contracting Officer Email: robert.harrison@dla.mil Signature:

7/10/2024

X Robert W Harrison

Signed by: DLA

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

Name: Harrison, Robert W CIV DLA LAND AND MARITIME (USA) Title: Contracting Officer Email: harrison.robert@dla.mil Signature:

7/10/2024

X Robert W Harrison

Signed by: DLA

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

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

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

a. NOUN: Circuit Card Assembly

b. NSN: 5998-01-621-7332

c. Part Number: 12976238-21

d. Minimum Guaranteed Quantity: 15 each

e. Minimum Estimated Value: $

f. Maximum Quantity: 460 each

g. Maximum Estimated Value:

h. PRON: EH3L0173EH

This action will be awarded under other than full and open competition pursuant to the authority of 10 U.S.C. 3204(a)(1) and subject to the availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

Signature:

X

WIEBUSCH.JAMI

E.

Digitally signed by

WIEBUSCH.JAMIE.

Date: 2024.07.29 18:06:23 -04'00'