Redacted_JA_SPRDL116R0024.pdf

SPRDL1-16-R-0024

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

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:

NOUN: Generator, 400 Amp, DC

MAXIMUM QUANTITY: 2,916

NSN: 6115-01-562-6264

PN: 12386631-1

VEHICLE SYSTEM: M2/M3

ESTIMATED UNIT PRICE: $11,362.10

ESTIMATED MAXIMUM VALUE: $33,133,808.16

PRON NUMBER: EH-52R306-EH

TYPE OF FUNDS: AWCF

TYPE OF CONTRACT: Firm Fixed Price

PART II - Technical Information and Certification

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

Contractor(s) Name:C.E. NIEHOFF &CO.

Cage: 76761

MFG Part Number: N1450-1 TACOM Part Number: 12386631-1

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

a. Status of the Acquisition Data:

(1) The technical data required to remanufacture this part belongs to C.E. Niehoff

& Co. and the data required to produce a competitive Technical Data Package (TDP) is not available to the Government. The Government does not have rights to a detailed drawing package for this item that would allow another contractor to remanufacture and upgrade this item to the appropriate condition at the latest configuration. C.E. Niehoff &

Co. developed, tested, and obtained Government's approval of this item. Government did not fund their efforts in developing and testing this item. Additionally, Government did not fund them to prepare fully detailed TDPs after approval. As such, C.E. Niehoff &

Co. is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

(2) There are no current plans to acquire a competitive TDP because funds are not available to acquire the data necessary to support a competitive procurement and the Government does not own the patent rights to the data that would be required to produce a competitive package. This 400 Amp DC Generator contains nuclear hardness items marked HCI (Hardness Critical Item). The TACOM Engineering Activity responsible for Survivability must evaluate all changes to, or proposed substitutions of

HCI, or changes to the electrical circuit and/or components for nuclear hardness impacts prior to implementation. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design.

This delay would severely impact the availability of the Generator 400 Amp for the

Bradley Fighting Vehicle System program.

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

(1) The Government would not be able to recover through subsequent competition the additional costs involved with developing a competitive TDP for this procurement:

- Estimated cost to reverse engineer: $3.5M

- Estimated time to reverse engineer: 33 Months

- Estimated cost to perform Reliability,Availability and Maintainability (RAM) vehicle testing (1 Vehicle) - $600,000

- Estimated time to perform RAM vehicle testing: 1 year

- Estimated cost to perform White Sands Missile Range test: $20,000

- Estimated time to perform White Sands Missile Range test: 6 months

- Estimated cost to develop a Technical Data Package: $ 600,000

- Estimated time to develop a Technical Data Package: 15 months

(2) If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of a minimum of 4 years would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs.

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) The approved source, i.e. C.E. Niehoff & Co., is the sole owner of their drawings and technical data rights. Government does not own proprietary rights to the

TDP that would be required to produce a competitive TDP.

(2) C.E. Niehoff & Co is the original equipment manufacturer (OEM) for the generator and has the manufacturing capability to produce the generator that will be required under the proposed contract. This manufacturing capability includes the required labor skills, proprietary technical data and processes, contractor-owned facilities (including plant equipment), and production/remanufacture techniques.

(3) An award to any other source would cause a substantial cost to the

Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling the agency’s requirements. Qualifying a new source would require a substantial expenditure. A new source would require tooling adjustment and development of extensive processing procedure. The additional time required for these actions would prohibit delivery of the item in a time frame that would meet the

Government’s requirements. The item required is mission critical in that a failure of this item during operation in the Bradley Fighting Vehicle Systems would cause extensive and extremely costly damage. The generator acts like an alternator on a car; it provides power to the vehicles. If it fails the vehicle will move until the batteries are drained and no other electronic features will work.

d. Efforts to Qualify Additional Suppliers for future procurements:

(1) No vendors are in the process of being qualified at this time, nor will be qualified prior to the contract award due to the lack of a competitive TDP and funding constraints needed to conduct the extensive qualification testing requirements.

(2) Any new contractor who decides to pursue the qualification process would be directed to go through the Competitive Advocate’s Source Approval Program. The

Competition Management Office (CMO) would encourage interested parties to submit

Source Approval Request (SAR) to this item for future buys.

e. Market Research:

(1) The Generator 400 Amp, NSN 6115-01-562-6264 does not appear on either the Advanced Procurement Planning List (APPL), or Competition Advocate Shopping

List (CASL) dated July 2014. To date no contractors have expressed an interest in this item.

(2) On 30 October 2015, A Sources Sought Synopsis has been requested. 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: Associate Director Combat Vehicle Engineering

Signature: /s/ Date: 5 Oct 15

Name: ____________ Title: Executive Director Systems Integration and Engineering Signature: //S// Date:10/14/2015

PART III - Requirements Certification

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

Item Manager: ____________

Date: 10/29/2015

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

Name: ____________ Title: Item Manager Signature: //S// ____________ Date: 10/29/15

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals

SPRDL1-16-R-0024. It is proposed to negotiate a Firm-Fixed-Price contract with C.E.

NIEHOFF &CO. for their part number N1450-1. The only approved source for the item is

C.E. Niehoff & Co., because TACOM drawing # 19207-12386631 is source controlled to

C.E. Niehoff & Co. The Government does not have drawings that are suitable for competitive procurement. For further information, please refer to Part II – Technical

Information and Certification.

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 ____________, OFFICE SYMBOL: ZGAAB, Ext.

5. Fair and Reasonable Determination I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on FAR 15.404. 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.

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

Name: Karen Kaczorowski Title: Contracting Officer Signature: //s// Date: 17 Nov 2015 PART V - Legal Concurrence

Concur: // ____________//

Date: 11/18/2015

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $650,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

NOUN: Generator, 400 Amp, DC

MAXIMUM QUANTITY (5 year LTC): 2,916

NSN: 6115-01-562-6264

ESTIMATED MAXIMUM VALUE: $33,133,808.16

AMC/AMSC: 3B - Acquire, for the second or subsequent time, directly from the actual manufacturer. 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.

Previous J&A: SPRDL114R0068.

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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.