Justification and Approval for Other Than Full and Open Competition (CUI)

This Justification and Approval (J&A) document authorizes the Army Contracting Command – Detroit Arsenal (ACC-DTA) to award a five-year Cost-Plus-Fixed-Fee (CPFF) service requirements contract to Sechan Electronics Inc., a Commercial and Government Entity (CAGE) 7Z941, for repair services on the Paladin Digital Fire Control System (PDFCS) installed on M109A6 Self Propelled Howitzers. The total estimated contract value is $31,350,275.93, funded through Army Working Capital Funds (AWCF).

The contract covers repair and maintenance of four Line Replaceable Units (LRUs) with an estimated yearly usage of 194 total units across the contract period: the Keypad (NSN: 7025-01-524-8671; estimated value $931,221.56); Paladin Digital Computer Unit/PDCU (NSN: 7010-01-524-8672; estimated value $22,240,366.50); Power Conditioning Unit-2/PCU-2 (NSN: 6130-01-524-8673; estimated value $2,365,864.80); and Digital Computer (NSN: 7021-01-707-1529; estimated value $5,812,823.06). The procurement is justified under 10 U.S.C. § 3204(a)(1) as implemented by FAR 6.302-1(a)(2)(iii)(A) – "Only One Responsible Source" – because Sechan Electronics is the Original Equipment Manufacturer (OEM) with exclusive ownership of the technical data package, design specifications, and specialized test equipment necessary to perform repairs. The Government conducted market research via a Sources Sought Notice posted April 24, 2023, and internet searches on SAM.gov, contractdirectory.gov, and the Procurement Integrated Enterprise Environment (PIEE), with no competing sources identified. Previous related contracts awarded to Sechan Electronics (W56HZV-15-D-0081 in 2015 for $599,841 and W56HZV-11-D-0034 in 2011 for $319,740) were also non-competitive sole-source awards. The Government estimated duplication of cost at $10.4 million if reverse engineering were required to support competition, with potential recovery of only $1.57 million in cost savings over 6.5 years. The Senior Contracting Official approved this acquisition on February 27, 2024.