Redacted_JA_SPRDL1-16-R-0363.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-16-R-0363

First Time Procurement – No previous J&A is available

CMO Control Number: [Completed by Comp. Mgt. Office]

SPRDL1-16-R-0363

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency – Warren (DLA – Warren) is the procuring activity for this action. 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 requirements."

PART I - Description of Item Required:

a. NOUN: Manifold, Hydraulics

b. QUANTITY: 106

OPTION QUANTITY: 106

c. NSN: 4730-01-599-2157

d. MPN: 12522081

e. VEHICLE SYSTEM: M1 Family of Vehicles

f. Acquisition Method Code: 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

g. Acquisition Method Suffix Code: 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.

h. ESTIMATED UNIT PRICE:

i. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

j. PRON NUMBER: EH6T0013EH

k. TYPE OF FUNDS: Army Working Capital Fund (AWCF)

l. TYPE OF CONTRACT: Firm Fixed Price (FFP)

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above item. The only approved source(s) for the above item is (are):

Contractor(s) Name: ONTIC Cage: 45934 Part Number: 12522081

2. Reasons the item is not suitable for full and open competition:

a. Status of the Acquisition Data:

TMS/HPDV Manifold Assembly, 12522081, is an integral part of the M1 Abrams Family of Vehicles. The Government does not have fully detailed level III TDP or performance specification that is sufficient to allow full and open competition of this item.

The manifold assembly should be procured from ONTIC as the current product drawing/TDP does not fully disclose complete technical requirements/information to be used in a full and open competition. In order to develop a competitive TDP, considerable engineering efforts would have to be expended to develop a comprehensive performance specification and/or conduct reverse engineering of the manifold assembly. ONTIC is the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability and quality testing capabilities necessary to produce this manifold assembly per the current TDP.

The lack of data makes it necessary to procure this item on a non-competitive basis from ONTIC.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

There are no current plans to acquire a competitive TDP, because funds are not available to acquire the data necessary to support a competitive acquisition.

ARDEC-RI engineering estimates that the cost to develop a competitive package for this item through reverse engineering could run as high as $1,000,000 and require an estimated delay of at least 24 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Since there are no procedures in place to determine whether other sources are qualified to meet the government’s requirements, it would then take an additional $ 500,000 and take about 12 months for the U.S.

Army/ARDEC engineers to develop government’s requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost $ 500,000 and take at least 12 months to conduct the actual Engineering analysis to determine if a new source has become approved in accordance with the newly competitive TDP. This would include the cost for any additional test equipment or fixtures, higher level assemblies and or end item systems, required to test this part and any costs for test facilities as applicable.

The overall costs associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements, and engineering analysis would be at least $2,000,000.00 dollars which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for the development of a competitive TDP is at least 48 months. A delay of this scale is not considered acceptable in fulfilling the army’s requirements and would have significant detrimental impact on the army’s ability to support the soldier in the field and will jeopardize the availability and supportability of Abrams FOV.

c. Demonstration of Approved Contractor's Unique Qualifications:

ONTIC has the requisite technical and engineering expertise to perform all efforts required to provide the TMS/HPDV Manifold Assembly. ONTIC has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this manifold assembly.

ONTIC is currently the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability, and quality testing capabilities necessary to produce, and deliver this item. An award to any sources other than ONTIC would cause a substantial duplication of cost to the Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling the agency’s requirements.

d. Efforts to Qualify Additional Suppliers for future procurements:

No contractors are in the process of being qualified at this time nor will be prior to the contract award due to funding constraints. The funding associated with qualifying a new source is not expected to be recovered through subsequent competition.

Qualifying a new source would require a substantial expenditure of the limited funding that has been provided to support the Abrams FOV. New sources would require the development of extensive testing and processing procedures. The additional time required for these actions would prohibit delivery of the items in a time frame that would meet the Government’s requirements.

e. Market Research:

In June 2016, the assigned engineer, based on an inadequate TDP and on his overall experience and knowledge of Abrams FOV in general, has made the determination that no valid alternate item can be substituted at this time.

A Sources Sought notice was requested on 09/21/2016. To date, no additional contractors have expressed an interest in this item.

3. The POC for this action is

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief.

Name:

Title:

Office:

Date: 7 July 2016

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH6T0013EH as to required quantities and delivery schedules are accurate and complete.

Date:9/20/16

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Name:

Title:

Signature:

Date: 21-Sep-2016

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-16-R-0363. It is proposed to negotiate a Firm-Fixed-Price contract with Ontic for their part number 12522081. The Government does not have fully detailed level III TDP or performance specifications that are sufficient to allow full and open competition of this item.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source(s), every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is .

5. Fair and Reasonable 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 dollar value of this procurement, certified cost and pricing data will be required IAW FAR 15.403

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Marlene J. Scheele Title: Contracting Officer Signature: /s/ Date: 23 Sep 16

PART V - Legal Concurrence

Concur:

Date: 09/26/2016

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $700,000.

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: Manifold, Hydraulics

b. NSN: 4730-01-599-2157

c. Basic Quantity: 106

d. Basic Estimated Value:

e. Option Percent: 100

f. Quantity with Option: 212

g. Estimated Value with Option:

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

Signature:

Date: 3 October 2016