J&A_REDACTED.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L117R0035

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

[X] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis.

3. The supplies/services required to meet the using activity’s needs are described as follows: Cup, Pump.

BRIEF DESCRIPTION NSN/P/N QUANTITY EST. VALUE AMSC

Cup, Pump 2520-01-088-5913 860 each B

4. Identify end item, weapon system, or class of item: Weapon System Tank, Abrams M-1.

ESTIMATED BASE VALUE :

ESTIMATED TOTAL VALUE : no option, customer direct

MAXIMUM CONTRACT VALUE :

5. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

This source controlled drawing has one approved source listed on the drawing, Allison Transmission CAGE (73342). TACOM does not own the technical data rights for this component. Per the ESA, It is proprietary to Allison and listed on the proprietary parts list provided to TACOM. ESA also acknowledged Allison Transmission fully developed this part at their expense.

This component is unique to the Hydrostat for the X1100 transmission and the ESA has only approved Allison Transmission to produce the parts.

The Weapon System Indicator Code for this NSN 2520-01-088-5913 is F. WSICs indicate the degree to which failure of the part will affect end item operation. A WSIC of F means failure of this part will render end item inoperable. Per Patrick Riley of the ESA, a failed pump cup would cause extensive and costly damage to the Hydrostat unit and the X1100 transmission

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

Allison Transmission (73342)

The use of the authority cited below:

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

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

The use of the authority cited is based on:

AMSC 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 are not economically in the Government’s best interst. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

Per the Approved Manufacturer Parts List available for this NSN, the Government has identified Allison Transmission as having the sole complete technical data set and appropriate manufacturing expertise to supply this NSN to DLA and the using military service.

The last technical review of this item was conducted by Product Specialist, on March 10, 2017 and verified no additional sources beyond those listed in the AMPL were identified. verified Allison Transmission is the only source listed on the drawing. The NSN is correctly coded as a 3/B.

Technical review also revealed information from the ESA regarding the manufacturing capability of this pump cup. The ESA stated, while dimensionally this part looks like it is easy to produce, the plating operation for this component is complex, and is critical to the operation of the pump cup in conjunction with the Hydrostatic Unit, which is also proprietary to Allison. The plating operation is proprietary to Allison and not specified on the drawing.

Additionally, ESA ruled out the possibility of reverse engineering stating components parts such as the pump cup in critical proprietary up-assemblies such as the Hydrostatic unit invites problems, and it is the PMs desire to maintain part conformance and system integrity. Allison would need to be involved any test plan that was developed, and be involved in verifying that there are no collateral failures/problems or issues resulting from the use of their reverse engineered part in the HSU, thereby affecting reliability and durability. Allison has rejected any proposal to reverse engineer this proprietary part.

As such, acquisition from the currently approved source is required to maintain the quality, part conformance, and system integrity of this pump cup.

Currently, there are no 339’s generated to the ESA for this material. Based on technical review, only the approved source has the technical data and manufacturing expertise to manufacture this item successfully for the Government and using military service.

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

o Other Than Full and Open Competition as allowed under 10 2304 and 41 U.S.C. 3301 is being utilized. The acquisition will be synopsized on FEDBIZOPPS for a period 15 days on or about March 20, 2017. The request for proposal will be posted via the DLA Internet Bid Board System (DIBBS) for a period of 30 days.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

o The approved source on the drawing, Allison Transmission, along with dealers of the approved source will be included on the mailing list for notification of the open solicitation for this requirement.

o Alternate items will not be evaluated for this acquisition. Per Mr. Robert Volk in Value Engineering, the ESA has been contacted twice in reference to new sources or reverse engineering.

Both times the ESA has rejected any proposals and stated that this item will remain sole source to Allison Transmission used on X1100 Transmission, M-1 Abrams.

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

There is adequate past buy history to form a basis upon which the Contracting Officer anticipates submission of pricing which will provide the basis of a fair and reasonable determination. Past procurement history will be reviewed and a PPI analysis will be performed. Based upon contract history, and information compiled from prior history was utilized as the market research, it is anticipated that the award will be determined fair and reasonable.

This is a definite quantity contract for a quantity of 860 each.

9. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

Market research for this item is limited due to the specific requirements involved for the part. The product specialist has indicated that the Engineering Support Activity has determined that this NSN is source control (3/B) to Allison Transmission (73342). Past contracts were reviewed to find other approved sources; none were found. A firm fixed price contract will be issued as: The requirement is well defined, contractor is experienced in making it, market conditions are stable and financial risks are otherwise insignificant. Material Master does not show this NSN as commercial. This item is manufactured for military use only.

Market research consisted of past procurements, communication via phone with OEM Allison Transmission, and communication with the customer.

Subject NSN is described as a Cup, Pump. This motor cup is in support of the M-1 Abrams Tank. This Cup, Pump is a Mandatory Replacement Part (MRP) on the X1100 Transmission. The X1100 Transmission is used on all the M1A1 & M1A2 Family of Vehicles (FOV) to include Assault Breacher Vehicle (ABV), Joint Assault Bridge (JAB) & Return to Stock (RTS) programs for sustainment and readiness of the M1 FOV.

The Department of the Army and the Marines Corps are the primary customers for this Parts Kit.

On March 1, 2017, Contracting Specialist spoke with from Allison Transmission on the phone.

explained Allison Transmission sells this item to TACOM as well as the military depots and as part of a kit. This is not a commercial item and

In-depth Market Research information also pulled from recent J&A for SPE7L416R0221, which provided the following:

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

“A market survey was conducted in August 2016.

Total number of vendors contacted: 2.

Names of vendors contacted and responding: Penn Detroit Diesel Allison, LLC (62860) and W. W. Williams Southeast, Inc.(43RF7).

Techniques used to conduct survey: The market survey was conducted by e-mail.

Types of information requested:

Size of Business Manufacturer or dealer Is there stock on hand Commerciality Estimated delivery Price breaks

Summary of information received: Market Survey Questionnaires were sent to two dealers, Penn Detroit Diesel Allison, LLC and W. W. Williams Southeast, Inc. as they have been awarded a contract for this NSN in the past.

Two responses were received as follows:

Penn Detroit Diesel Allison, LLC - Large Business- Dealer

Item is not commercial

W. W. Williams Southeast, Inc. - Large Business- Dealer

Item is not commercial

A Sources Sought notice was posted to FedBizOpps on 08/30/16 and closed on 09/06/16 with no inquiries received.

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

Based upon the technical certification on file in DLA Land and Maritime – VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

11. A listing of sources, if any, indicating an interest in the acquisition is:

Cage 73342 Allison Transmission

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

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

Review of the technical requirements for NSN 2520-01-088-5913 shows that the Engineering Support Activity (ESA) has coded this item AMC/AMSC 3/B and Allison Transmission is the only acceptable source at this time.

Although alternate offers will not be accepted for the instant procurement, in order to identify additional sources, the solicitation will include the statement, “Only the source(s) cited on the drawing have been approved. Even though sources and approved part numbers are provided, the items furnished must meet the requirements of the cited drawing. Offerors who are interested in qualifying their product for purpose of future acquisition must contact the cognizant design activity (ESA) specified on the source-controlled drawing.”

13. A copy of previous justification for NSN 2520-01-088-5913 on solicitation SPE7L416R0221 to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed is attached.

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

Rick Matz, Contracting Officer Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

[ ] $700,000 to $13,500,000 Competition Advocate

[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

MATZ.RICHARD.JAMES.

1080066615

Digitally signed by

MATZ.RICHARD.JAMES.1080066615

Date: 2017.03.20 10:50:42 -04'00'