DLA0210.pdf

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

SPRBL1-10-R-0017

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: The Defense Logistics Agency (DLA) - WARREN is the procuring activity for this action.

2. Description of Action: The proposed action is for the award of a five-year, Firm- Fixed-Price, Indefinite Delivery Indefinite Quantity (IDIQ) contract, with a maximum dollar value of $13,737,717.24 for Marathon Generators, 15 kW, 50/60 Hz;15 kW, 400 Hz; and Rotor Assembly, P/O 60 kW, 50/60 Hz Generator. The National Stock Numbers (NSNs) are as follows:

NSN Description 6115-01-383-3124 Generator, 15 kW, 50/60 Hz TQG, used on MEP-804 6115-01-434-1432 Generator, 15 kW, 400 Hz TQG, used on MEP-814 6115-01-467-5850 Rotor Assy, 60 kW, 50/60 Hz TQG, P/O 60 kW Generator, used on MEP-806

Army Working Capital Funds (AWCF) will be used for this effort.

3. Description of Supplies/Services: All three items are commercial brand name items produced by Marathon Electric Manufacturing Corp. The Marathon Generators are part of the 15 kW, 50/60 Hz and 15 kW, 400 Hz Tactical Quiet Generator (TQG).

The rotor assembly is P/O the 60 kW, 50/60 Hz Generator. These items are critical pieces of hardware for the 15 kW and 60 kW Model TQGs. The generators were tested and approved by PM Mobile Electric Power (MEP) for use on the MEP-804 and 814 generator-sets, and the rotor assembly was tested and approved for use on the MEP-

806. These items are design-specific for their respective end item generator sets. The 15 and 60 kW TQGs are used as the primary power source for Combat Support Systems and Communications Systems (CSS&CS) and various Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) equipment being used in Operation Enduring Freedom/Operation Iraqi Freedom (OEF/OIF). The proposed action will enable the Army to establish its own contract and order the required items over the next five years. The total estimated price of the proposed action is $ 13,737,717.24.

4. Authority Cited: 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."

5. Reason for Authority Cited: These items are source controlled.

Marathon brand name generators and rotor assembly were acquired as part of the TQG acquisition by PM MEP, and these are the only generators and rotor assembly that have passed performance and reliability testing. Use of any other source’s generators and rotor assembly would require additional qualification testing and redesign of the 15 kW and 60 kW TQGs to enable the appropriate interfaces between the generators, rotor, and TQG end items.

Marathon is the only known approved source of supply on the source control drawings.

Marathon is the only source that possesses the technical data (drawings or specifications) that completely defines the form, fit, and function (F3) of the items being procured. In addition, the F3 of the generators and rotor assembly are not defined in any nationally recognized industry standard or specification. Marathon is the only source identified on the Source Control Drawings (SCD) for the generators, which identify the Government’s performance and interface requirements. Marathon built the generators and rotor assembly from a standard commercial product line to meet specific Government performance requirements. SCD 88-21005 and 88-21006 contain specifications (size, dimensions, interface, performance, etc.) that must be met in order for the generators to fit and function properly in the 15 kW TQGs, and list Marathon as the only approved source of supply for the generators. Failure to acquire the generators and rotor assembly will quickly lead to shutdown of the TQGs, which could result in the inability to use CSS&CS and various C4ISR dependent on operational generators. In hostile environments this could jeopardize the safety and lives of Warfighters. This would cause a severe degradation in mission readiness, jeopardize support of Operation Enduring Freedom/Operation Iraqi Freedom and the Global War on Terror, and increase the risk of serious injury or loss of life to Warfighters.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. There is limited competition among Marathon distributors and dealers.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be completed, which will enable future requirements to be obtained using full and open competition.

8. Market Research: Technical experts from the Logistics and Readiness Center (LRC) conducted market research relative to the generator and rotor marketplace from March to July 2009. During this time, these experts have read trade journals, reviewed product information on the World Wide Web, and held discussions with industry representatives from generator and rotor manufacturers. Discussions have been held with other Government technical experts from PM MEP. Based on this research the Government's experts determined that while there are sources that produce generators and rotor assemblies in the commercial marketplace, there are no known sources other than Marathon that produce the generators and rotor assembly that meets the Government's performance requirements. Additionally, technical experts from PRD published a Sources Sought Announcement (SSA) on the Federal Business Opportunities (FedBizOps) Website from 03/24 – 04/15/08 to determine whether any other sources could provide the required Marathon Generators and Rotor Assembly. All sources responding to the SSA are documented in the Acquisition Strategy Checklist.

Telephone and e-mail surveys were conducted with the sources responding.

9. Interested Sources: In accordance with FAR 5.201, the solicitation for the proposed action was synopsized on the FedBizOps Page. Any proposals that are received shall be evaluated.

10. Other Facts:

a. Procurement History: There is no CECOM procurement history.

b. Acquisition Data Availability: The Government only owns the Source Control Drawings (SCDs) for the generators. These drawings are top assembly drawings, which are insufficient for fabrication and manufacturing by another company. There is no technical data and data rights for the rotor assembly. The Government only has the data rights customarily provided to the public with a commercial item.

c. Subcontracting Competition: Although there are no FAR subcontracting provisions that require competition among potential subcontractors for commercial contracts, the Government will seek to maximize subcontracting competition with a focus on subcontracting to small and small disadvantaged businesses.

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

XXXXXXXXXXXXXX Date: _____19 Mar 2010_ General Engineer Signature: ____/s/______________

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

XXXXXXXXXXXXXX Date: 19 Mar 10_____________

Inventory Management Specialist Signature: ___/s/__________________

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on price analysis, to include comparison of proposed prices and Independent Government Estimate and audit information from Defense Contract Audit Agency. Certified cost or pricing data for these commercial items will not be obtained in accordance with FAR 15.403-1 (b) (3).

Karen Forsgren Date: __31 Mar 2010______________

Contracting Officer Signature: __//s//_____________

14. Procuring Contracting Officer Certification: I certify that this document is accurate and complete to the best of my knowledge and belief.

Karen Forsgren Date: _31 Mar 2010_______________

Contracting Officer Signature: __//s//________________

Legal Concurrence:

Concur (X) Name: XXXXXXXXXXXXXX Signature: //signed// Date: 03/11/10