JA T158LL Track_Redacted.pdf

Control Number: 2024-047

Justification Review Document for Other than Full and Open Competition

Program/Equipment: Tank-Automotive & Armaments Command (TACOM) Integrated Logistics Support Center (ILSC), T158LL Track Shoe Assembly (T158LL Track) used on the Army’s M1 Abrams Family of Vehicles (FoV) as part of the Armored and Recovery program

Authority: 10 United States Code 3204(a)(1), Federal Acquisition Regulation 6.302- 1(a)(2)(ii)(B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

AMOUNT:

Prepared by:

Typed Name: Lisa R. Roulo Title: Contract Specialist

Contracting Officer: Combat Support & Combat Services Support (CS & CSS) Team Typed Name: Valencia D. Lane

Technical Representative:

Typed Name: Marta N. Tomkiw Title: Executive Director, Systems Integration & Engineering (SES)

Requirements Representative:

Typed Name: Mark D. Colley Title: Executive Director, ILSC (SES)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

JA-00769 – W912CH-24-R-0027

1. Contracting Agency: Army Contracting Command-Detroit Arsenal (ACC-DTA) is the responsible contracting activity for this action.

2. Description of Action: ACC-DTA proposes to award a new follow-on five-year contract to Loc Performance Products LLC (Loc), Commercial and Government Entity (CAGE) Code: 08754. The contract is for the Track Shoe Assembly, National Stock Number (NSN): 2530-01-435-5175, using Army Working Capital Funds (AWCF). The contract type is Indefinite Delivery, Indefinite Quantity (IDIQ) with Firm-Fixed-Price (FFP) contract line item numbers. The period of performance is three base and two optional ordering periods.

3. Description of Supplies/Services: The supplies to be acquired under the proposed contract are new T158LL Track Shoe Assemblies (T158LL Track), NSN: 2530-01-435- 5175, Part Number: 12387880-1, which are used on the Army’s M1 Abrams Family of Vehicles (FoV). The proposed action is for a guaranteed minimum quantity of 22,716 and a five-year maximum quantity of 636,043. The minimum estimated value is and the estimated total value of this contract is .

Estimated Value (e.g., FFP)

SUPPLIES QUANTITY UNIT PRICE TOTAL

First Ordering Year 229,427 Second Ordering Year 101,654 Third Ordering Year 101,654 Option - Fourth Ordering Year 101,654 Option - Fifth Ordering Year 101,654 Totals 636,043*

*Five-year maximum quantity

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 Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(B), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (B) Unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited:

a. Background:

The T158LL Track is a double-pin, double-block style track designed for use on the M1 Abrams FoV suspension system. Each track shoe consists of a center guide assembly

7. Actions to Increase Competition: The Government is interested in increasing competition for this requirement; however, the specific qualification testing requirements for each rubberized track component are required to be met successfully individually and in the assembled complete track shoe.

Through market research, contractors VAREC NV and Robin Industries – Holmco Division (Robin) both expressed interest in future qualification for the other rubberized components and are aware of the qualification requirements. At this time, there are no other contractors who have successfully met the qualification requirements or are actively working to get qualified in the rubberized components.

Red River Army Depot (RRAD) expressed interest in future qualification for the other two rubberized components and are acquiring the necessary equipment, which requires funding.

There are no contractors currently in the qualification process, nor any that will be qualified prior to contract award as an alternate source of supply for this item.

8. Market Research:

a. Request for Information (RFI): A Sources Sought/RFI was posted to SAM.gov on 6 October 2023. The notice was open for 14 days with responses due on 20 October 2023. There were no companies that responded or expressed any interest. A separate RFI notice was sent directly to the companies qualified in one or more of the T158LL Track rubberized components that have been documented by Engineering: Loc, VAREC NV, Robin, and RRAD. Each company responded. VAREC NV, Robin, and RRAD responded by stating each company is only qualified in one of the three components. VAREC NV is qualified in the rubberized track pad, Robin is qualified in the rubberized pin, and RRAD is qualified in the rubberized track block. However, each expressed interest in getting qualified in the future for the other two components. Each company is aware of all the qualification requirements. Loc has passed the extensive qualification testing requirements and is qualified in all three rubberized components. The contractors also provided information about production lead time (PLT), company capacity, contract terms, and expertise. The RFI responses demonstrated that Loc is able to meet the Government’s demand for a shorter PLT without additional qualification testing.

b. Internet Search: An internet search was also conducted to find other companies that had comparable track assemblies.

Keywords: military track systems Website: https://www.hutchinsoninc.com/military-track-and-track-pads/ Website: https://soucy-defense.com/crt-systems/ Findings: Reviews of available vendor catalog information on the listed websites do not identify any existing track assemblies that meet the performance requirements, nor the space claim required by the M1 Abrams.

9. Interested Sources: No other sources, other than those indicated in Section 7, have written to express interest.

10. Other Facts:

a. Procurement History:

1. Contract SPRDL1-20-C-0061 was awarded to ContiTech (CAGE: 08754) on

10 April 2020; . Contract SPRDL1-17-C- 0055 was awarded to Veyance Technologies, Inc. (Veyance) (CAGE: 04NP0) on 5 December 2016; .

2. All previous contracts were awarded utilizing full and open competition. Even with the competitive status, there are three rubberized components that have specific qualification requirements, requiring those rubberized components only come from a qualified source as notated on the drawings.

3. All previous contract actions were awarded utilizing full and open competition, with the three rubberized components coming from a qualified source that is notated on the drawings.

4. Not applicable (N/A). A justification was not prepared prior to this one to support the procurement.

5. All previous contracts were awarded utilizing full and open competition, but with the three rubberized components only coming from a qualified source. At this time, Loc is the only source qualified in all three rubberized components.

With these three rubberized components being critical components that impact the overall functionality of the complete track shoe assembly, Loc is the only qualified source for the complete T158LL track at this time which will result in Loc being the only proposal submitted for this procurement.

6. The procurement history pattern is as follows: W56HZV-08-D-0072, SPRDL1-

14-C-0052, SPRDL1-16-C-0035 were awarded to Veyance, W56HZV-16-C- 0083 was awarded to Loc, SPRDL1-17-C-0055 was awarded to Veyance, and most recently SPRDL1-20-C-0061 was awarded to ContiTech.

ContiTech entered into a Novation Agreement with Veyance during the SPRDL1-17-C-0055 contract. As of 16 December 2021, Loc entered into a Novation Agreement with ContiTech. With procurement history noting two contractors, those two contractors technically now fall under Loc, leaving Loc as the only source currently for the three rubberized components with qualification requirements.

7. N/A. A justification was not prepared prior to this one to support the procurement.

b. Other Facts: N/A. There are no other facts necessary to justify limiting competition that were not previously stated.