JA SRPDL1-19-R-0258_ REDACTED.pdf

DDEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

Defense Logistics Agency Justification and Approval for

Other than Full and Open Competition

1. Contracting Activity: DLA Land - Warren, is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to award a contract on a sole source basis to Honeywell Ltd., Ontario, Canada; Cage Code 07217, for the procurement of the VOLTAGE REGULATOR. The type of funds to be used are Army Working Capital Fund (AWCF). The type of contract is Firm Fixed Price.

3. Description of Supplies/Services: The item to be acquired under the proposed contract is:

NOUN: Voltage Regulator

NSN: 6110-01-540-7819

Part Number: 12489528-2 Manufacturer Part Number: 1153316-2-1 Minimum Quantity: 99 Maximum Quantity: 2,518 Option Quantity: Not Applicable Estimated Unit Price:

Estimated Total Minimum Value:

Estimated Total Maximum Value:

PRON: EH81L459EH

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, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited:

Voltage Regulator (NSN: 6110-01-540-7819, Part Number 1153316-2-1): The Voltage Regulator is a critical item of the electrical power system in the M1 Abrams tank. This item is source controlled by Honeywell Ltd. Cage Code 07217, and shall meet the requirements specific to its intended function in accordance with specification 01417-SC-X15135 and Source Control Drawing 12489528. Only the Voltage Regulator produced by the manufacturer identified above, is approved for use in the Abrams tank by the TACOM Life Cycle Management Command (TACOM LCMC). A substitute item shall not be used. It is imperative for the procuring activity to ensure, at the time of contract award, this product demonstrates compliance to design requirements, qualification requirements (including testing for compliance with EMI and EMR shielding and nuclear hardening requirements), and conditions required in verifying that this item meets its required performances. This item is used to keep voltages within the specified limits tolerated by the electrical equipment of the M1 Abrams tank. High voltage can damage electronic components and lead to battery overcharging, and potentially even to battery exploding and fire. This is a survivability item and it is critical for the soldiers’ safety.

Honeywell has developed, tested, and obtained Government approval for this item for application in the Abrams tanks at their own expense. Currently, Honeywell Ltd. is the only contractor that has the capability to manufacture the Voltage Regulator, perform failure analysis, develop inspection and acceptance criteria for components, and repair/rebuild and test this item.

Installing hardware that has not undergone similar verifications 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 life of the crew.

Currently, Honeywell Ltd. is the only approved source to make this item for the USG. This manufacturer is the sole owner of the technical data package (TDP). The USG does not have proprietary rights to all the data needed for the development of a competitive TDP. Reverse Engineering is the only option for the USG to develop a competitive TDP – 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. These efforts involve a significant amount of time and money. The USG does not have the funding required to develop and qualify additional sources for this product. Even if a reverse-engineering effort were affordable, this process would incur excessive lead-time delay. A new manufacturer’s prototypes need to be tested in conjunction with the overall electrical system of the Abrams tank. The cost to reverse-engineer this unique component is estimated at and months to complete. Reverse Engineering the TDP includes, but is not limited to the following:

Reverse Engineering Activity Delay Costs

Obtain existing part samples 4 months

Hardware design, integration and fabrication/install 20 month

Component and vehicle system testing 20 months Documentation (drawings/ECP/Tech Manuals) 9 months Total Estimated Time to Reverse Engineer 53 months

The Government would not be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. At the current usage rate of units per year, at the current unit cost of

, and assuming the saving achieved through competition, the annual savings would take years to offset the estimated cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

Voltage Regulator (NSN: 6110-01-540-7819, Part Number 1153316-2-1):

(a) Effective Competition: Per section 7, potential vendors can submit requests to become a source through the Source Approval Process at any time. Per section 9, a Sources Sought notice was posted. Based on the detailed rationale provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action.

(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition:

As stated in section 5 above, there is no complete TDP available to support a competitive procurement. The Government does not own the TDP necessary to procure this item as full and open competition. This item is source controlled to Honeywell Ltd.; this manufacturer owns the respective technical data and is the only approved source of supply for this item. Because the costs associated with developing a competitive TDP cannot be recovered within a justifiable time frame (also stated in section 5), the Government is not actively pursuing the development of a competitive TDP for future procurements.

The Voltage Regulator (NSN: 6110-01-540-7819) appears on the Competition Advocate Shopping List (CASL) dated 16 January 2018. The CASL and Advance Procurement Planning List (APPL) lists contains TACOM-Warren’s projected buy list of sole source items for the next three years. The lists are updated twice a year and advertised in the FedBizOpps. Contractors interested in becoming a source for this item need to meet the requirements of the Source Approval Program. This is done at the contractor’s expense, to include vehicle level qualification testing. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, TACOM Engineering requires successful vehicle level qualification testing to support the approval of a new component; the Government has no plans, or funding, to complete qualification testing at this time. To date, no other sources have approached this office with questions or comments on how to become a qualified source to produce this item.

8. Market Research:

Market research was performed by TARDEC Engineering on 1 June 2018 by reviewing vendor catalogs and available product literature published online to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs. While regulators are produced by several manufacturers they are not tailored (fit and function) to be specifically used in the M1 Abrams tanks. Further, no regulator manufacturer was found to complete the necessary testing to become a qualified source as described in section 5. TARDEC Engineering has contacted Honeywell POC, , and verified that Honeywell Ltd., Cage Code 07217, is in operation for current and future procurements, and it is located on 3333 Unity Drive, Mississauga, Ontario, L5L. 356, CANADA.

Sources Sought Notice has been submitted to Fed Biz Opps on 22 MAY 2019 Sources Sought Notice#: 2019-410 Component: Voltage Regulator

NSN: 6110-01-540-7819

Part Number: 1153316-2-1 End Item: M1 Abrams Tank

Sources Sought

Notice 2019-410.pdf

Fed Biz Ops Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=90d1e644a729a18c72b9832533 158833&tab=core&_cview=0

9. Interested Sources:

Voltage Regulator (NSN: 6110-01-540-7819, Part Number 1153316-2-1):

To date, no other sources have written to express an interest in qualifying as a source of supply.

Sources Sought Notice 2019-410 was posted to Fed Biz Opps for the Regulator, Voltage, NSN 6110-01-540-7819, Part Number: 1153316-2-1 on 22 MAY 2019. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

Voltage Regulator (NSN: 6110-01-540-7819, Part Number 1153316-2-1):

(a) Procurement History: Long Term Contract SPRDL1-17-D-0050 was awarded 21 September 2017 for this same item. Previous J&A is available. This action was restricted to Honeywell International (07217).

11. Technical Certification:

The POC for this action is , , Name:

Title:

Signature:

Date: 14 March 2019 Email:

12. Requirements Certification:

Voltage Regulator (NSN: 6110-01-540-7819, Part Number 1153316-2-1):

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:

Title:

Signature:

Date: 20 March 2019

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. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Due to the fact that the approved source is a Canadian firm, certified cost and pricing data will be not be required in accordance with FAR 15.403. However, the Canadian Commercial Corporation will review the pricing proposal through its pricing group Public Works and Government Services Canada (PWGSC) and will certify the awarded prices as fair and reasonable.

Typed Name: Morris Belleville Title: Contracting Officer Signature: Morris A. Belleville /S/ Date: 11/08/2019

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Morris Belleville Title: Contracting Officer Signature: Morris A. Belleville /S/ Date: 11/08/2019

15. Legal Concurrence:

Name:

Title:

Signature:

Date: 11/8/2019

Approval Authority for Acquisitions Equal to or Greater Than $13.5 Million.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

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

a. Noun: Voltage Regulators

b. NSN: 6110-01-540-7819

c. Basic Minimum Quantity: 99

d. Basic Maximum Quantity: 2518

e. Basic Minimum Estimated Value: $

f. Basic Maximum Estimated Value: $

g. Option Percent: Not Applicable

h. Quantity with Option: Not Applicable

i. Estimated Value with Option: Not Applicable

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 provision that the property herein described has otherwise been authorized for acquisition.

Mark A. Brown SES, Acquisition Executive

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.11.22 15:15:05 -05'00'