Redacted JA Sole Source to SRCTec LLC for Two TPQ50 NSNs.pdf

The supplies that are to be manufactured are provided in Table 1 below.

Table 1 – Supplies/Items Item Description NSN Part Number

Central Antenna Assembly (Cylinder) 5840-01-602-4067 SRC1498N Stand-alone AN /TPQ-50 Radar System 5840-01-672-9770 SRC1494L

The Stand-alone AN/TPQ-50 Radar System, NSN 5840-01-672-9770, is a Beyond Economical Repair (BER) replacement system. As necessary, the Government intends to use repair services on the Central Antenna Assembly (Cylinder).

The total estimated procurement and repair cost for all years is 40 and is detailed in Table 2 below.

Table 2 – Procurement and Repair Estimated Cost Year Proc Est Costs Repair Est Costs

TOTALS

The Government estimated cost for diminishing manufacturing sources and material shortages (DMSMS) support is depicted in Table 3.

Table 3 – DMSMS Estimated Cost Year Estimate

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Year 10

The estimated cost for the PdM Radars requirements is see Table 4 below:

TABLE 4: PdM Radars Cost

Year PdM Radars

TOTALS

Table 5details the PdM Radars requirements for years six (6) through ten (10). The Engineering Change 2 (EC2) supports both the Army CECOM ILSC as well as the PdM Radars and will become part of the AN/TPQ-50 program of record.

Table 5– PdM Radars Requirements Years 6 - 10

PdM Requirements, Years 6-10

EC2 Obsolescence Mitigation Kit Contractor Field Service Representative (CFSR) Program Management Support Spares (see Table 1) BER Replacement Systems (see Table 2) Technical Manual Updates

4. Statutory Authority Permitting Other Than Full and Open Competition:

The statutory authority permitting other than full and open competition is 10 U.S.C. 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:

SRCTec, LLC, the Original Equipment Manufacturer (OEM), located at 5801 E Taft Road, Suite 7, Syracuse, NY 13212-3272 (CAGE Code 4GHA7) is the only known source with the comprehensive knowledge and expertise necessary to produce and repair the required items, and provide PdM Radars requirements including the EC2 Obsolescence Mitigation Kit, CFSR, Program Management Support, and Technical Manual Updates required for this action. The Government only possesses an overall performance specification. The Government does not possess the data rights or design documents for any of the NSNs being procured, preventing a new source from being able to successfully manufacture and repair these NSNs. These documents are required for the correct form, fit, and function characteristics of the AN/TPQ-50 components. Both NSNs identified on this acquisition have an acquisition method code (AMC) and Acqusition Method Suffix Code (AMSC) of “4Q.” These codes were assigned by CECOM engineers. The AMC of “4” signifies that the items have been screened and determined to be a first time procurement suitable for direct purchase from the actual manufacturer and AMSC “Q” means “the Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources.”

In response to the Government’s request for an estimated price allowing the Government to have purpose rights for the AN/TPQ-50 multi-mission software, SRCTec, on 15 July 2016, provided a fixed dollar of $5.0M. The AN/TPQ-50 did not have sufficient programmed dollars for that expense and have even less dollars today; therefore, no further action will be taken.

In preparation for the AN/TPQ-50 program to transition to sustainment, PdM Radars is mitigating four (4) upgrades to obsolete circuit boards that are critically needed to maintain the operation of the system. This is called the Engineering Change 2 (EC2) configuration, and the engineering services to complete this configuration are being conducted under the National Maintenance Contract (NMC), W15P7T-12-D-M603, and performed solely by SRCTec. After the NMC contract expiration, PdM Radars intends to utilize this contract vehicle to continue to transition to sustainment. Once the EC2 configuration is complete, PdM Radars expects the EC2 configuration to become part of the program of record, and will develop the obsolescence mitigation kit to be utilized by PdM Radars and CECOM ILSC. This is expected to take five (5) years, and includes software and hardware changes, testing and approvals from the Department of the Army (DA) to the PEO, Missiles and Space. Additionally, the new EC2 configuration will require technical manual updates, as needed, and training which the Government needs the OEM CFSR to provide. To use any other source besides the OEM, SRCTec, to provide the EC2 Obsolescence Mitigation kit, CFSR, Program Management Support, and Technical Manual dates, would require PdM Radars to restart these efforts with a new source, which would delay the

6. Efforts to Obtain Competition:

Both Radar Project Managerand the ILSC/DLA conducted market research in accordance with FAR Part 10. Sources Sought Announcements (SSAs) were published to the Federal Business Opportunities (FedBizOps) website during the period April 2018 through February 2019. See paragraph 8, Market Research, for details. The Contracting Officer will publish a notice of proposed contract action as required by FAR 5.201 and consider any proposals received.

Market research indicated that no other source was capable of providing the requirements in this solicitation.

Subcontracting Competition. The Government will ensure that the prime contractor obtains as much subcontracting competition as possible through the inclusion of the following clauses in the base ID/IQ contract, FAR 52.244-5, Competition in Subcontracting; FAR 52.219-8, Utilization of Small Business Concerns; and FAR 52.219-9, Small Business Subcontracting Plan.

7. Determination by the Contracting Officer:

I hereby determine that the anticipated cost to the Government for this action will be fair and reasonable based on cost and price analysis. The price analysis will include a comparison of proposed prices with an Independent Government Estimate. Certified cost and pricing data will be acquired from SRCTec, LLC.

8. Market Research:

Both PdM Radars and the CECOM ILSC/DLA posted SSAs in an effort to gauge industry interest and capability to compete for equipment, spares, repair parts, and engineering support. In addition to this, a technical review, which consisted of researching Government databases, including WebFLIS, has been completed for the items being procured. The review included searching the items according to their part numbers, CAGE codes, NSNs, and nomenclatures.

The technical review concluded that both items were coded as ‘4Q’ for their AMC/AMSC codes.

This indicated that the items have been screened and determined for the first time to be suitable for direct purchase from the actual manufacturer or vendor. Furthermore, an AMSC code of ‘Q’ indicated that the Government does not have adequate data, lacks rights to data, or both which are needed to purchase the item from additional sources. Table 6 Sources Sought Announcements includes a list of all SSAs published. Table 7 explained the responses that were received as a result of the Sources Sought Announcements.

Table 6: Sources Sought Announcements

Supply/Services Sought Date Posted Spare Parts for the Sustainment of the AN/TPQ-50 Counterfire Target Acquisition Radar System (CTARS) (SPRBL119R0040) (Sole Source)

13-28 February 2019

Sources Sought for AN/TPQ-50 Repair Parts and Services 25 October - 15 November 2018 Sources Sought Announcement for Production of Spare and Repair Parts. 25 Apr - 25 May 2018

Analysis of responses to the SSAs follows:

Table 7: Responses to Sources Sought Announcements

Supply/Services Sought Dates Posted Responses

Spare Parts for the Sustainment of the AN/TPQ-50 Counterfire Target Acquisition Radar System (CTARS) (SPRBL119R0040) (Sole Source)

13-28 February 2019 No responses received.

Sources Sought for AN/TPQ-50 Repair Parts and Services

25 October - 15 November 2018

No responses, two potential sources were contacted after the fact. One source, Mnemonics, Inc., submitted a Statement of Capability (SOC) at the Government’s request on 6 June 2019. The Government’s assessment of the SOC found Mnemonics, (5d)

W15P7T-12-D-M603 P00024 (extend ordering period)

23 Mar 2020 SRCTec, LLC Sole Source/FAR 6.302-1

(1) Letter contract issued $8.5M, Technical Support, Spares, Repair Parts, Contractor Logistics Support, 30 Sep 2005 – 18 Apr 2011

(2) IDIQ, Ceiling: $80.4M; CFSRs, Technical Support Services, Software Upgrades, Training, Spares, 18 Sep 2008 – 28 Feb 2011

(3) Letter contract issued 27 Apr 2011, definitized 28 Sep 2011, $13.7M, CFSR’s, Maintenance Kits, Upgrade Kits, Depot Spares, System Repair and Support Services, 27 Apr 2011 – 20 Jan 2016

(4) Letter contract issued 14 Dec 2011, definitized 27 Sep 2012, $28.7M, Contractor

Logistics Support, CFSR’s, System Repair and Support, Upgrade Services, Upgrade Kits, 14 Dec 2011 – 31 Dec 2012

(5) IDIQ, Awarded 25 Sep 2012, Ceiling: $249.9M; Spares, Upgrade Kits, Engineering

& Logistics, Contractor Sustainment Support, Contractor Repair & Return, Reliability, Program Management, Test Support, Ordering Period: 25 Sep 2012 – 24 Sep 2015

(5a) Modification P00015 to W15P7T-12-D-M603, awarded 8 Sep 2015 extended ordering period to 24 Sep 2017; no increase in ceiling.

(5b) Modification P00019 to W15P7T-12-D-M603, awarded 20 Sep 2017 extended ordering period to 24 Sep 2019; no increase in ceiling.

(5c) Modification P00021 to W15P7T-12-D-M603, awarded 23 Sep 2019 extended ordering period to 23 Mar 2020 and included three, three-month options; no increase in ceiling.

(5d) Modification P00024 to W15P7T-12-D-M603, awarded 23 Mar 2020 exercised the first of the three-month options, extending the ordering period to 23 Jun 2020.

The AN/TPQ-50 system is currently being supported by W15P7T-12-D-M603. As of the date of this J&A, two (2) three-(3)-month option periods remain available on contract to ensure coverage for the fielded systems, spares, repair and return, contractor sustainment support, logistics. These option periods are valid until the Army CECOM ILSC awards this contract and the transition to sustainment continues.

b. Acquisition Data Availability: As stated in Section 5, the Government does not possess the data rights or design documents for any of the NSNs being procured. These documents are required for the correct form, fit, and function characteristics of the AN/TPQ-50 components.

However, to maximize competition in the TPQ-50 program, the Government does have the TDPs for thirty-two (32) TPQ-50 components that were competitively solicited on solicitation

SPRBL1-19-R-0039.

c. Subcontracting Competition. The Government will ensure that the prime contractor obtains as much subcontracting competition as possible through the inclusion of the following clauses in the base ID/IQ contract: FAR 52.244-5, Competition in Subcontracting; FAR 52.219- 8, Utilization of Small Business Concerns; and FAR 52.219-9, Small Business Subcontracting Plan.

10. Interested Sources:

To date, the only viable source to express interest in this acquisition has been SRCTec, LLC.

11. Actions to Increase Competition and Overcome Barriers:

The current PdM Radars requirements are necessary to ensure a successful transition of the AN/TPQ-50 program to sustainment. Once the EC2 configuration is complete, the Government can reevaluate if new sources are able to provide the EC2 obsolescence mitigation kit.

Otherwise, the Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competed.

Without configuration control of the technical data package, little can be done to increase the possibility of competition. The solicitation was published in Beta.SAM

APPROVAL

Based on the foregoing justification, I hereby approve this action using other than full and open competition procedures to award a ten-year (5 year base with one five-year option), Indefinite- Delivery/Indefinite-Quantity (ID/IQ) contract, using Firm-Fixed-Price (FFP) for systems and spare/repair parts, Cost-Plus-Fixed-Fee (CPFF) for support (engineering and logistical) and repair services, and Cost-No-Fee for travel and material. Years 6-10 include potential Product Manager, Radars requirements for obsolescence mitigation kits, contractor field service representatives (CFSR’s), program management support, spares and technical manual updates and Beyond Economic Repair system replacements. This action is authorized on an other than full and open competition basis pursuant to the authority of 10 U.S.C. § 2304(c) (1), as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Date: Signature:

MARK A. BROWN, SES

Acquisition Executive, DLA Land and Maritime