JA-NSN-1758-FBO.pdf

DLA LAND AND MARITIME-Bret Griffin, ZCA April 11, 2018

MEMORANDUM FOR FILE

SUBJECT: SPE7MX-16-D-0100 (16D0100) – Add 1 – Phase 3 - Justification and Approval for Other than Full and Open Competition – NSN Substitution

The purpose of this memorandum is to address a change in the Add 1 – Phase 3 NSN population.

General Dynamics Land Systems (GDLS) originally submitted its proposal including cost or pricing data for the Add 1 – Phase 3 NSNs in March 2017. GDLS’s proposal was audited by the DCAA office in Sterling Heights, MI. DCAA’s report was submitted to BPPB in September 2017. BPPB reviewed the data submitted by DCAA and provided its report to the contracting office (ZCA) in October 2017. The Pre-Negotiation Briefing Memorandum Addendum was been completed and approved at the appropriate levels in January 2018. At that time, negotiations for the Add 1 – Phase 3 NSNs were opened with GDLS. Due to the time that elapsed between GDLS’s original proposal and the opening of negotiations, GDLS refreshed its pricing proposal to ensure the data it contained was current and accurate.

GDLS supplied the Government an updated proposal in March 2018. GDLS notified the Government P/N 12523293 associated with NSN 5855-01-623-8582 is no longer available and P/N 12523293 has been replaced by P/N 12523293-2 and NSN 5855-01-671-1758. There is still stock of NSN 5855-01-623-8582 – P/N 12523293 available and it will be used until it is gone at which time NSN 5855-01-623-8582 will be discontinued. All future procurements will be of

NSN 5855-01-671-1758 – P/N 12523293-2.

The Contracting Officer determined that NSN 5855-01-671-1758 will be substituted for NSN 5855-01-623-8582 without a change to the current J&A that covers the Add 1 – Phase 3 population. This MFR will serve as the file documentation to finalize this change to the J&A.

The Contracting Officer took this action for the following 2 reasons:

1. NSN 5855-01-671-1758’s sole approved source is GDLS, which is the same single approved source as NSN 5855-01-623-8582. Additionally, both NSNs have the same form, fit, and function. In fact, NSN 5855-01-671-1758 is backwards compatible with the entire Abrams fleet and can be used as a substitute item for NSN 5855-01-623-8582.

2. The addition of NSN 5855-01-671-1758 will not require changing the contract maximum.

Although the approved maximum addition to Contract 16D0100 is about than the currently estimated value of the Add 1 – Phase 3 NSNs ( , the Contracting Officer has determined there would be enough room under Contract 16D0100’s current maximum to add NSN 5855-01-671-1758 without an addition to the currently approved contract maximum. The Contracting Officer made this determination based on the following rationale:

DEFENSE LOGISTICS AGENCY

DLA LAND and MARITIME

POST OFFICE BOX 3990

COLUMBUS, OH 43218–3990

IN REPLY

REFER TO

a. The currently approved maximum of the Add 1 – Phase 3 NSN grouping will cover approximately 92% of the updated anticipated value.

b. The remaining in anticipated value can be easily absorbed by the current unused maximum built in to Contract 16D0100 and there will still be ample room to cover unexpected spikes in demand for the contract’s other NSNs. Contract 16D0100’s current contract maximum, prior to the addition of the Add 1 – Phase 3 NSNs is only approximately of the maximum has been used about 1.5 years into this 5 year contract (30%).

Pending approval of the Acquisition Plan Addendum and completion of this MFR outlining the change, the Contracting Officer will replace NSN 5855-01-623-8582 with NSN 5855-01-671- 1758 in the Add 1 – Phase 3 population and start negotiations to add NSN 5855-01-671-1758 to contract 16D0100.

Date Bret Griffin, Acquisition Specialist

Date Lori A. Archibald, Contracting Officer

Attachment:

1 – Justification and Approval for Other than Full and Open Competition - Add 1 – Phase 3 NSNs to Contract SPE7MX-16-D-0100

GRIFFIN.BRET.J.1

251897782

Digitally signed by

GRIFFIN.BRET.J.1251897782

Date: 2018.04.11 13:25:35 -04'00'

ARCHIBALD.LORI.

A.1230193190

Digitally signed by

ARCHIBALD.LORI.A.1230193190

Date: 2018.04.16 06:54:20 -04'00'

DEFENSE LOGISTICS AGENCY

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