JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

This document is a Justification and Approval (J&A) for an Other Than Full and Open Competition procurement by the Defense Logistics Agency – Land Warren (DLA-WRN).

Procurement Overview and Contractual Terms:

The DLA-WRN proposes to award a New Firm-Fixed-Price Five-Year Long-Term Contract (LTC) to Sechan Electronics, Inc. (CAGE 7Z941) or an approved offeror for the Power Conditioning Unit Replacement 2 (PDCU-R2) kit, National Stock Number 7021-01-705-7959, Part Number 13056437. The kit includes the PDCU-R2 unit and its shipping/storage container. The contract specifies a minimum guaranteed quantity of four units with an estimated maximum quantity of 165 units over five years, with procurement using Army Working Capital Funds. The item is classified under Acquisition Method Code 3 (acquisition from actual manufacturer, second or subsequent time) and Acquisition Method Suffix Code B (restricted source acquisition based on source control).

Justification for Sole Source Award:

The PDCU-R2 is a critical component of the M109A7 Howitzer platform's Paladin Digital Fire Control System (PDFCS-R). Award is justified under 10 U.S.C. § 3204(a)(1) based on the determination that only one responsible source (Sechan Electronics) can satisfy the Government's requirements. The Shipping and Storage Container is sole-sourced to Pelican Products (CAGE 65442). The justification cites the absence of technical data needed for competitive reprocurement, the prohibitive cost of reverse engineering (estimated at substantial unreleased figures across five cost categories), and scheduling delays of at least several months that cannot be recovered through subsequent competition. Market research conducted on March 20, 2025, and March 28, 2025, yielded no alternative sources. The Competition Advocate approved the J&A on May 9, 2025, and the Contracting Officer signed on May 6, 2025.