SPRBL1-15-R-0050_Redacted.pdf

SOURCE SELECTION INFORMATION & SENSITIVE- SEE FAR 2.101 & 3.104

FOR OFFICIAL USE ONLY

The Optoelectronic Display is a five (5) digit, night vision compliant display which is a component of the Control, Radio Set C-11466A and the Receiver Transmitters RT-1477A/C. Both the Control, Radio Set and Receiver Transmitters are components of the ARC-201A(V) Airborne Radio. The Control, Radio Set is mounted in the aircraft cockpit to remotely control the Receiver Transmitters located in the aircraft’s equipment compartment via dedicated cables. See the table below. Two of the specifications for the Liquid Crystal Display (LCD) component are the maximum amount of character per line and how many lines; for this display there are five characters in one line. Night vision capability allows the display to be visible in light levels approaching total darkness when the aircraft pilot is wearing night vision goggles.

SINCGARS Radio Family Part ARC-201A(V) Airborne Radio:

Control, Radio Set C-11466A & Receiver Transmitters RT-1477A/C Optoelectronic Display, 5 Digit, NVG

The solicitation will state that Grayhill, CAGE 81073, is the approved supply source.

4. Authority Cited

The applicable 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

The only known manufacturing source of supply for the spare part described above is Grayhill, Inc., (Grayhill), CAGE 81073, 561 West Hillgrove Avenue, La Grange, Illinois 60525-5914. Grayhill is the original equipment manufacturer of the Optoelectronic Display.

The Government does not possess a complete Technical Data Package (TDP) for the manufacture of this part and only possesses a Source Control Drawing, A3307738, Revision B, dated 28 February 2007. The Source Control Drawing is controlled by the International Traffic in Arms Regulations (ITAR).

Exelis is the original equipment manufacturer of the SINCGARS Radio Systems. Exelis has previously supplied this part to the Government and procured the part from Grayhill.

Transicoil, LLC, previously Aero Space Display System Inc., CAGE 65907, had also previously supplied this part to the Government under contract DAAB07-00-C-B027, issued on 03 April 2000. The part had the same NSN 5980-01-356-8554 but a different part number (P/N) A3106255-1. P/N A3106255-1 has subsequently been replaced by P/N A3307738-1.

The Acquisition Method Reason Code (AMRC) for the spare part is 4B. The assigned value “4” means that the part is to be acquired from the actual manufacturer. The assigned value “B” means that the part requires engineering source approval by the design control activity, that the data rights, manufacturing knowledge, or technical data cannot be obtained economically and that the data or knowledge is essential to maintaining the quality of the part.

Additionally this part has an Army assigned essentiality code of “C”, which identifies this part as essential to the operation of the end system and failure of this part will render the Control, Radio Set and the Receiver Transmitter inoperable. Failure of the Control Radio, Set and the Receiver Transmitter significantly impacts the ability to support critical missions, which increases the risk of Warfighter serious injury and/or loss of life.

6. Efforts to Obtain Competition

Market research was conducted, the details of which are in the market research section of this document. In accordance with FAR 5.201, this action was synopsized in FedBizOpps at least 15 days prior to issuance of the solicitation.

7. Fair and Reasonable Cost Determination

As the Contracting Officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable. In accordance with FAR 15.403(a)(1), certified cost and pricing data will be not be obtained for this non-commercial part because the estimated maximum value of less that the $ 700,000 threshold for obtaining certified cost or pricing data. If required to determine fair and reasonable pricing, data other than certified cost and price data will be obtained.

8. Market Research

A second Sources Sought Announcement (SSA) was posted on the Federal Business Opportunities (FedBizOpps) website on 23 July 2015 with a close date of 07 August 2015 by DLA Land at Aberdeen due to the age of the original SSA and responses to it. No companies responded to this second SSA.

The original SSA was issued by the Army Technical Experts on the FedBizOpps on 23 September 2014 to determine whether any other source could manufacture or supply the Optoelectronic Display. Exelis, Inc. was the only source that responded to this announcement. Exelis expressed interest in supply this part. Although Grayhill, Inc. is identified as the approved source on the Source Control Drawing, they did not respond to the SSA. The Army Technical Expert contacted Grayhill by email on 24 September 2014 and 07 October 2014 inquiring if they were interested in supply this part. Grayhill did not respond to either of these queries. The Army Technical Expert emailed Grayhill once more on 30 October 2014, to which Grayhill responded that they were interested in supplying the part.

On 11 August 2015 the Contract Specialist contacted Aero Space Display System (ADS)/(now Transicoil.

LLC). Market history, per contract DAAB07-00-C-B027, showed that ADS had previously supplied the Government the part. The Contracting Officer sent a follow-up email on 18 August 2015. To date, as of 26 August 2015, no response has been received.

Both the Army’s Technical Experts and the Contract Specialist searched for commercial items that could meet the Government’s requirements and found no commercial equivalent items or additional sources.

9. Other Facts

Previous Contract History The most recent previous Army contract, W15P7T-05-D-J101, included the Optoelectronic Display and was awarded on 30 November 2004 to ITT Industries (now Exelis, Inc.), Aerospace/Communications Division, 1919 W. Cook Road, Ft. Wayne, IN 46801. That contract type was firm-fixed-price with a value of $2.5 billion dollars. Exelis demonstrated its capability to meet production capacity and lead time testing, and manage obsolescence and redesign.

Contract W15P7T-05-D-J101 was issued on a competitive basis. A Justification and Approval (J&A) to increase the contract ceiling from $2.5 billion dollars to $3.069 billion dollars was approved on 19 May 2010 and resulted in Modification P00068 issued on 30 November 2010. This J&A cited the authority 10 U.S.C.

§2304(c)(1) implemented through FAR 6.302-1 Only One Responsible Source and No Other Supplies or

Services Will Satisfy Agency Requirements. To support the use of FAR 6.302-1, the J&A stated that since the award of the contract, the baseline design of SINCGARS had become unstable due to parts obsolescence issues, and Exelis was implementing significant redesign efforts to address the obsolescence issues. The J&A then stated that as a result of the redesign efforts, the Government owned technical data package (TDP) used to award contract W15P7T-05-D-J101 was no longer complete. Refer to Attachment 1.

Government Never Owned the Optoelectronic Display TDP Although the Optoelectronic Display was included on the previous contract W15P7T-05-D-J101, the Army Technical Expert confirmed on 27 July 2015 that the Government never owned the TDP for the part, and has only owned the Source Control Drawing for the Optoelectronic Display. Because the Government never owned the TDP, the part should not have been competed on the previous contract W15P7T-05-D-J101.

Non-Competitive Follow-On Acquisition As a result the Optoelectronic Display being included on the previous contract W15P7T-05-D-J101 in error, this procurement satisfies DFARS 206.304(a)(4)(S-70) because it is a “...follow on-acquisition for the same supply or service supported by a justification for other than full and open competition citing the authority at FAR 6.302-1,...”. In accordance with DFARS PGI 206.304(a)(S-70), the most recent J&A for contract W15P7T-05- D-J101 is included as Attachment 1. This previous J&A stated that to increase competition, drawings and data rights will be delivered to the Government, and completion of this task will not be feasible until at least 2015.

In the recent year, efforts have been made to secure the remaining missing TDP documents for SINCGARS, and many have been obtained from Exelis (previously ITT Exelis, Inc.).

In accordance with DFARS PGI 206.304, the planned actions from this previous J&A to overcome competition barriers are ongoing and have been completed as much as possible to-date. Therefore, this J&A does not need to be signed at one level above previous J&A at the DLA Land & Maritime Senior Procurement Executive level.

Part Management Army CECOM is the activity that manages this part.

10. Interested Sources

Both Grayhill, Inc. and Exelis, Inc. expressed interest in the supplying the Optoelectronic Display.

11. Actions to Increase Competition

The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this part to be competitive. In addition, DLAD 52.217-9002, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items (APR 2010), will be included in the solicitation.

12. Certifications

I certify that the supporting technical data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Electronics Engineer Date

I certify that the supporting requirements data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Inventory Management Specialist Date

As the Contracting Officer, I certify that this justification is accurate and complete to the best of my knowledge and belief.

Martina L. Culik Moore Contracting Officer

Date

APPROVAL REQUIREMENTS

( X ) Up to $650,000 Contracting Officer ( ) $650,000 to $12,500,000 Competition Advocate ( ) $12,500,000 to $85,500,000 Head of the Contracting Activity (HCA) ( ) Over $85,500,000 Senior Procurement Executive (AQ)

Attachments:

Attachment 1 – Redacted J&A for Modification P00068 Contract W15P7T-05-D-J101

Date: 2015.11.18 15:24:41 -05'00'

Date: 2015.11.18 15:29:49 -05'00'

CULIK

MOORE.MARTINA.L.1401611866

Digitally signed by CULIK MOORE.MARTINA.L.1401611866 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=CULIK MOORE.MARTINA.L.1401611866 Date: 2015.11.18 16:08:53 -05'00'