Signed-6-6-23-SPRBL1-23-R-0016 JA _Redacted.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRBL1-23-R-0016

Source Selection Information - See FAR 2.101 & 3.104

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Because the I2 Tubes for this procurement is for MX-12607 and the Aviation Safety concerns mentioned above, L3 is the only source capable of meeting both safety and Government standards.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

L3 Technologies, Inc. – Integrated Vision Solutions 1215 South 52nd Street Tempe, AZ 85281

CAGE: 55311

The use of the authority cited below:

[ X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

[ X] AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

[ X] The acquisition will be synopsized on or about March 20, 2023.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[ ] Dealers of the manufacturers will be solicited.

[ ] A synopsis exception cited in FAR 5.202 applies. (explain) [ ] Other. (Explain)__________________________________________________________________ .

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

This contract will be a 5-year Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) award to L3 with no option years. An IGCE was submitted with a total estimated price for all 5 years to be and an annual Best Estimated Quantity (BEQ) of 264 units. However, the maximum value of this contract will be in the event of higher pricing and/or increased quantity. The Contracting Officer will abide by FAR 15.404-1 in determining prices as fair and reasonable.

Proposed prices will be compared against the IGCE, historical prices, and price analysis will be conducted. In accordance with FAR 15.403-1(b) and (c), certified cost and pricing data will not be required for these commercial

SOLICITATION SPRBL1-23-R-0016

Source Selection Information - See FAR 2.101 & 3.104

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I2 Tubes. However, the Government may request other than certified cost and pricing data as needed to determine pricing fair and reasonable per FAR 15.402(a)(2).

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

Market research was conducted by Technical Experts with the Communication and Electronic Command (CECOM) Integrated Logistics Support Center (ILSC). A Sources Sought Announcement for the I2 Tubes was released on the System for Award Management (SAM) website on June 27, 2022 with responses due on July 8, 2022. Responses expressing interest and capability were received from L3 Technologies Integrated Visual Solutions (CAGE: 55311), Elbit Systems of America (CAGE: 13567), and Photonis Defense (CAGE: 0BMR4).

The SSA posting contained a questionnaire, consisting of technical questions, to assist in determining a vendor’s technical capability. All prospective vendors were asked to include responses to these questions in their response.

All three vendors stated that they could supply the required I2 Tubes, however due to the flight safety concerns described above, only L3 I2 Tubes are acceptable.

The Contract Specialist performed additional market research consisting of emailing L3 on February 14, 2023 and inquiring if they sell the I2 Tubes to other businesses to satisfy small business concerns. L3 responded on February 15, 2023 that they have not sold this NSN through small business resellers to date, but would be willing to do so for the MX-12607 in response to a small business set-aside requirement.

I2Log, Haystack Gold, and WebFLIS also provided more information on this NSN. I2Log confirmed that this item is the MX-12607 I2 Tube manufactured by L3. Haystack Gold and WebFLIS shows the CAGE code for the I2 Tubes is 80063 (US Army Communication & Electronics Command (CECOM)) is listed as the primary source.

However, the Army Technical Experts stated that the I2 Tubes should only be produced by L3 due to flight safety risks, as described previously.

Based on the market research, L3 is the only acceptable source for these I2 Tubes. The I2 Tubes to be procured on this proposed contract are not technically interchangeable with those produced by Elbit, Photonis, or any other source. As stated above, acquiring these I2 Tubes from sources other than L3 would create a flight safety risk, putting soldiers’ lives at risk and leading to potential loss or damage of aircraft.

Market Survey [10 U.S.C. 3204(e)(2)(D)]:

[ X] A market survey was conducted on/during June 27, 2022.

Total number of vendors contacted: 3.

Names of vendors contacted and responding: L3 Technologies Integrated Visual Solutions (CAGE: 55311), Elbit Systems of America (CAGE: 13567), and Photonis Defense (CAGE: 0BMR4).

Techniques used to conduct survey: Posted Market Survey Questionnaire on SAM.gov with Sources Sought notice on June 27, 2022 and closed on July 8, 2022 to gather information from vendors. Additionally, review of acquisition history was also conducted.

Types of information requested: The market survey questionnaire asked interested vendors to provide summary of core competencies, ability to manufacture item, pertinent security clearances, and knowledge of the item.

SOLICITATION SPRBL1-23-R-0016

Source Selection Information - See FAR 2.101 & 3.104

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Summary of information received: All three vendors that expressed interest stated they have adequate knowledge of the item and can manufacture and supply it.

Information received regarding the commerciality of the item(s): This NSN was found commercial via a signed Commerciality Determination on February 28, 2023.

9. Additional facts supporting other than full and open competition are:

[ X] Other: (Explain) Previous procurements for the I2 Tubes for MX-12607 were awarded to L3. As previously mentioned, due to aviation safety concerns, technical experts have deemed it unsuitable and unsafe to acquire these I2 Tubes from different manufacturers, resulting in mixed I2 Tubes. Therefore, L3 is the only capable source of supplying the I2 Tubes.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) L3 Technologies Integrated Visual Solutions (CAGE: 55311), Elbit Systems of America (CAGE: 13567), and Photonis Defense (CAGE: 0BMR4).

11. The following actions are being taken to identify additional sources:

[ X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [ X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [ X] Other – Previous Procurement History The previous procurement is W91CRB-21-D-0009, a sole source contract awarded to L3 by Army Contracting Command (ACC).

Per DFARS PGI 206.303-2, the previous J&A is attached.

NSN Contract Award Date

Contract Max Contractor/CAGE OEM Competitive/Sole Source (Far Exception)

5855-01- 692-7710

W91CRB-

21-D- 0009*

Aug 20, $92,440,406.17 L3 Technologies, Inc./0B107

L3 Technologies, Inc.

Integrated Vision Solutions

Sole Source (10 U.S.C. 2304(c)(1)

*The previous J&A for this contract is attached (Attachment 2).

SOLICITATION SPRBL1-23-R-0016

Source Selection Information - See FAR 2.101 & 3.104

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[X] Over $750,000 to $15,000,000 Competition Advocate

[ ] Over $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] Over $100,000,000 Senior Procurement Executive (SPE)

Attachment(s):

1. Qualitative Assessment I2 Tubes

2. Previous J&A W91CRB-21-D-0009