SPRBL1-20-Q-0060_Redacted 032.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRBL1-20-Q-0060

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[X] ORIGINAL

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

1. The Defense Logistics Agency (DLA) Land at Aberdeen, is the contracting activity.

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

3. The supplies required to meet the using activity’s needs are described as follows:

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

5998-01-535-3637 Circuit Card Assembly - System Interface 3,648

3Z

5998-01-539-5371 Circuit Card Assembly - Flexible Rear Panel RT 1,755 3Z

Total Estimated Value:

Identify end item, weapon system, or class of item:

The items the Government intends to acquire are the spare parts for the Ground Single Channel Ground and Airborne Radio System (SINCGARS) Radio Systems. SINCGARS is a family of Very High Frequency-Frequency Modulation (VHF-FM) combat net radios designed to provide the primary means of command and control for combat, combat support, and combat service support units.

ESTIMATED BASE VALUE:

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

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

Brief narrative supporting the situation and weapon system:

The only approved manufacturer with the comprehensive knowledge and expertise necessary to produce the required items for this action is L3Harris Technologies, Inc. (L3Harris). The SINCGARS radio software and hardware were originally designed, developed and produced by ITT Industries, Inc. (Subsequently also known as ITT Corporation, ITT Exelis, Exelis Inc. and is now part of L3Harris). L3Harris acquired Exelis in 2015. The Government does not possess a sufficient technical data package (TDP) for the required items. Only L3Harris possesses the complete TDP necessary to manufacture the required items.

. Considering the age of the SINCGARS radio system, the part obsolescence issues and the significant cost and time for the redesign efforts, the U.S. Army Communications-Electronics Command (CECOM) pursues a life-of-type buy effort for the sustainment spares requirements for the Ground SINCGARS Radio System. Ground SINCGARS Radio System is scheduled to be phased out in FY2033. The Army's preferred modernization plan involves an immediate 25% reduction in FY2023 followed by a reduction at an even amount of 23,127 SINCGARS Receiver-Transmitters (RTs) annually until a zero balance is reached in FY2033. The strategy for current sustainment support of the Ground SINCGARS Radio System is to process the life of type buy effort for the sustainment spares requirements.

The strategy for future sustainment support of the Ground SINCGARS Radio System is to obtain the spare parts by cannibalizing the SINCGARS RTs returned from the field.

L3Harris is the only known source of supply that is capable to support this lifetime buy effort by using their existing stock, extension of product or support, and buyouts through the process of lifetime buy, bridge buy, die banking, and extensive components broker network. L3Harris has notified the Government that they can no longer afford to sustain the Ground SINCGARS Radio System. Without processing a life-of-type buy procurement for the sustainment spares requirements from L3Harris, the next solution for resolving these obsolescence issues and continuing the sustainment support of the Ground SINCGARS Radio Systems is to re-design the SINCGARS RTs.

It is estimated that the re-design of the SINCGARS RTs and/or developing form, fit and function equivalents would result in the cost of approximately $50 Million and will take approximately 4-5 years to complete such efforts. The time required for such efforts would result in unacceptable delays in fulfilling the Government’s requirements and would result in CECOM’s inability to support the fielded radios for the major portion, if not all, of the remainder of the life cycle of these radios. The cost of such effort would be prohibitive and could not be recovered through competition.

The part obsolescence issues dramatically increase due to old technology of the parts. Delay of the life-of-type buy procurement for the sustainment spares requirements for the Ground SINCGARS Radio Systems will exacerbate and increase the risk of cost increases and schedule delays.

[ ] 10 U.S.C. 2304(c)(2) - Urgency.

[ ] 10 U.S.C. 2304(c) - _______________________________________________

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

L3Harris Technologies, Inc., CAGE Code: 14304

The use of the authority cited below:

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

The use of the authority cited is based on:

[X] AMSC Z. This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

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

[ ] The acquisition will be synopsized on or about N/A.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[X] Dealers of the manufacturers will be solicited.

[X] A synopsis exception cited in FAR 5.202 applies.

The contract action is not expected to exceed the simplified acquisition threshold based on the FAR 13.5 limit of $7 Million for commercial items. Therefore, based on the exception listed in FAR 5.202(a)(13), the Contracting Officer waived the synopsis.

[ ] Other. (Explain)__________________________________________________________________ .

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

As the Contracting Officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable, based on the use of some combination of cost/price analysis, or a comparison of proposed prices with an Independent Government Estimate. In accordance with FAR 15.403-1(c)(3), certified cost or pricing data is not required for commercial items. If appropriate, the Contracting Officer will request other than certified cost or pricing data to support a fair and reasonable price determination.

8. Market Research/Efforts to Obtain Competition:

Technical experts within the CECOM Research Development and Engineering Center, Product Realization Directorate published a Sources Sought Announcement (SSA), Notice ID SINCGARS for Spare Parts for Ground and Airborne SINCGARS Radio Systems, to the Beta System for Award Management (Beta SAM) on February 04, 2020 to identify sources of supply with capability to provide the required items. Interested sources were asked to describe their capability of manufacturing or supplying these items without the complete TDPs and the ability of obtaining the materials required for manufacturing these spare parts that have known obsolescence issues. No responses were received from this SSA. In conclusion, it was determined by the Government’s technical experts that only L3Harris can meet the Government’s lifetime buy requirement for the Ground SINCGARS Spare parts.

The Contract Specialist reached out to L3Harris and was informed that they will not respond directly to the Government. Instead, it will utilize only one distributor, Science Applications International Corporation (SAIC) – CAGE Code: 79343, for DLA requirements.

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

[X] A market survey was conducted on/during: February 04, 2020.

Total number of vendors contacted: This was posted through Beta SAM.

Names of vendors contacted and responding: As discussed above, there were no responses received.

Techniques used to conduct survey: Posted through Beta SAM.

Types of information requested: Company information, past performance, qualifications/experience, and capabilities (in developing TDPs, managing obsolescence, re-designing existing hardware components).

Summary of information received: There were no responses received in response to the Market Survey.

Information received regarding the commerciality of the item(s): When the Contract Specialist reached out to L3Harris and SAIC both confirmed the commerciality of these items. A commerciality determination was completed for this acquisition.

[ ] A market survey was not conducted due to the unusual and compelling urgency of the requirement.

[ ] A market survey was not conducted due to:

9. 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.

[ ] As stated in the attached certification by the requiring activity, the Military Services will be seriously injured in contract award is delayed. The extent and nature of harm are detailed in the attached certification, or provide a narrative Impact Statement below:

[ ] When FAR 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

[X] Other:

The procurement history for the SINCGARS spares is listed below. Both NSNs were not included together on all contracts listed below. Since 2010 SINCGARS spares were transferred to DLA for management and were recently transferred back to CECOM for management from DLA. DLA has procured these spare parts from L3Harris and/or from Science Applications International Corporation (SAIC), L3Harris’ after-market representative through the one-time small purchase contracts.

Contract Number Award Date Contractor Competitive/Sole Source DAAB07-00-D-C251 14 April 2000 ITT Industries, Inc.* Sole Source

W15P7T-05-D-J101 30 November 2004 ITT Industries, Inc.*

Competitive (ITT was the sole offeror)

SPE7LX-18-D-5009 19 April 2018 SAIC** Sole Source SPE7M5-19-P-5146 27 February 2019 SAIC** Sole Source (Under SAT) SPE7M5-19-P-B081 26 September 2019 SAIC** Sole Source (Under SAT)

* ITT Industries, Inc. (Subsequently also known as ITT Corporation, ITT Exelis, Exelis Inc. and is now part of L3Harris).

Exelis Inc. was acquired by L3Harris Technologies Inc. in 2015.

**SAIC is L3Harris’ spares representative for DLA requirements.

10. A listing of sources, if any, indicating an interest in the acquisition is: SAIC, CAGE: 79343.

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[X] $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) (DLA General Counsel signature line required when sending to AQ)