SPRBL1-15-R-0061_Redacted_Final_4-13-16.pdf

SOURCE SELECTION INFORMATION & SENSITIVE- SEE FAR 2.101 & 3.104

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRBL1-15-R-0061

1. Contracting Activity: Defense Logistics Agency (DLA) DLA Land at Aberdeen (DSCC-ZLAA) 6001 Combat Drive Room C1-301 Aberdeen Proving Ground, MD 21005-1846

2. Description of Action

This Justification and Approval supports an acquisition, on an other than full and open competition basis, for a five (5) year, Firm Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract for two (2) parts to support video and audio recording and playback capability on the AH-64 Apache/Longbow helicopters. The two parts are manufactured by Sensors & Integrated Systems, UTC Aerospace Systems (CAGE 3SDT5), 2727 East Imperial Highway, Brea, CA 92821 formerly TEAC Aerospace Technologies Inc. This procurement action will be conducted in accordance with FAR Part 12, Acquisition of Commercial Items and FAR Part 15, Contracting by Negotiation.

The parts included in this procurement are described in Section 3, Description of Supplies/Services.

3. Description of Supplies/Services

The parts included in this procurement are shown below in Table 1. Video, audio, and data recording and playback of pilot and copilot/gunner performance when identifying and destroying enemy targets on the AH-64 Apache/Longbow helicopters is accomplished using the MDR-80-C Digital Data Mission Recorder and the Removable Memory Module. The recordings are used in-flight for reconnaissance and surveillance and are used on-ground for aircraft crew debriefings.

The MDR80-C Digital Data Mission Recorder (DMMR), NSN 5836-01-537-8617, P/N 51571047-501 has the following features:

Capability to simultaneously record and playback video, audio and data.

Software configuration control enabling software updates and expansion without hardware modification.

MPEG-2 video compression with selectable bit rates.

Dynamic modification of video and audio encording bit rates.

The Removable Memory Module, (RMM), 32GB Flash Drive, NSN 7045-01-534-4016, P/N 51570601- 508 is a removable module used to store and playback video and audio in National Television Systems Committee (NTSC) file format.

Table1. Parts Included in this Procurement

NSN Nomenclature Part No.

5836-01-537-8617 MDR80-C Digital Data Mission Recorder (DMMR) 51571047-501

7045-01-534-4016 Removable Memory Module, (RMM), 32GB Flash Drives 51570601-508

The estimated five year contract value is and the maximum five year contract value is ; see Table 2 below. Army Working Capital Funds (AWCF) will be used to support this acquisition.

Table2. Best Estimate Quantity and 5 Years Estimated and Maximum Contract Value

NSN Nomenclature AMC AMSC Estimated

Annual Quantity

5 Year Best Estimated Quantity

5 Year Estimated Value ($)

5 Year Maximum Quantity

5 Year Maximum Value ($)

5836- 01- 537-

MDR80-C

Digital Data Mission Recorder

(DMMR) 3 P 12 60 120

7045- 01- 534-

Removable Memory Module, (RMM), 32GB

Flash Drives 3 P 20 100 150

Total Estimated 5 Year Contract Value

Total Maximum 5 Year Contract Value

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 proposed source is Sensors & Integrated Systems, UTC Aerospace Systems (UTCAS), 2727 East.

Imperial Hwy, Brea, CA 92821, CAGE 3SDT5, formerly TEAC Aerospace Technologies, Incorporated..

UTCAS is the only known vendor that manufactures the MDR80-C DDMR and the 32GB RMM, which are a direct drop-in replacements to the original V-80 recorders and RMM 8/12/16GB Flash Drive modules used on the AH-64 Apache/Longbow Helicopter. UTCAS manufactured the original recorders and 12GB memory modules, which are no longer available due to parts obsolescence. The replacement MDR80-C DDMR includes the proprietary software, and meets the form, fit, function, and interface (F3I) requirements on AH-64 Apache/Longbow helicopter platform. The replacement 32GB RMM uses the proprietary software, meets the form, fit, function, and interface requirements on the AH-64 platform, and provides increased memory storage. Without the UTCAS configured replacement DDMR and RMM 32GB Flash Drive, the mission capability of the AH-64 Apache/Longbow Helicopters to record and, playback videos will be non-existent.

The Government does not own the technical data package (TDP) and the data rights for both the original recorder and 12GM RMM and the replacement MDR80-C DDMR and 32 GB RMM. For another supplier to provide a DDMR and RMM, the Army Technical Expert estimates that it will take at least 12 to 18 months to reverse engineer, manufacture, test, evaluate, and qualify both parts. Additionally, the Army Technical Expert estimates that it will cost the Government between $500 thousand to $1 million dollars to test and qualify the parts, and this cost is not expected to be recovered though a reduced prices for the alternate parts.

Within the past ten years, the Government has asked UTCAS if they would offer the (TDP) for the DDMR and RMM for sale. Over the ten years UTCAS has continued to decline to sell the TDP. Finally, UTCAS agreed to the sale of the TDP for repairing the hardware portion of the DDMR only, but not the proprietary software portion. As a result, the Government can repair the DDMR, but cannot reinstall or upgrade the proprietary software. Although the data is available for the Government to repair the parts, the Government does not have enough data to build the parts we are buying.

The current Acquisition Method Reason Code (AMRC) for both parts is 3P. The "3" means that the part is to be acquired directly from the actual manufacturer , and the “P” means that the rights to use the data to procure this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained.

6. Efforts to Obtain Competition

Efforts to obtain competition will be accomplished through ongoing market research. Current market research details are in Section 8. Market Research. In accordance with FAR 5.201, this action will be 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. Certified cost and pricing data will not be required because the parts are determined to be commercial. UTC Aerospace Systems may be required to submit other than certified cost and pricing data to support a determination of fair and reasonable price.

8. Market Research

On 15 January, 2015, the Army Technical Expert published a Sources Sought Announcement (SSA) for the MDR80-C DDMR and the 32 GB RMM on FedBizOpps. At the time of closing only UTC Aerospace Systems, Sensors & Integrated Systems, responded to the announcement and expressed interest.

Subsequently, in April 2015, the Army Technical Expert performed an internet search for sources that produce the required items or suitable F3I replacements resulted in no other sources other than UTC Aerospace Systems, Sensors & Integrated.

The Contract Specialist also conducted an internet search of the IHS Haystack Gold database, Webflis, ThomasNet and the Army i2Log during the month of June 2015 and found no other sources. The Contract Specialist then searched the internet in June 2015 as well for alternate parts that could meet the Government’s requirements and also found no other sources that produce a DDMR and RMM that meets the Government F3I requirements.

In conclusion, as the above market research shows, there are no other sources that produce configured DDMR MDR80-C and formatted RMM that support the mission capability of the AH-64 Apache/Longbow helicopter.

9. Other Facts

The previous procurement history for the AN/ARS-6(V) PLS spare parts is shown in the Table 3 below.

Table3. Previous Procurement History

Contract Number Award Date Contractor NSNs

SPRBL1-10-D-0005 Jun17 2010

TEAC

Aerospace Technologies 5836-01-537-8617, 7045-01-534-4016

The contract listed in the table above was on a sole source basis, using FAR 6.302-1 “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

10. Interested Sources

No vendors, other than UTC Aerospace Systems, formerly TEAC Aerospace Technologies, have expressed an interest in supplying any of the two parts included in this solicitation.

11. Actions to Increase Competition

Acquisition Data Availability: The Government possesses a broad-based Statement of Work for the required parts. The management of this item is currently handled by Army CECOM. This will be a follow-on sole source contract. Per DFARS PGI 206.304(a)(S-70), the J&A for the previous contract SPRBL1-10-D-0005 has been attached ( Attachment 1).

The previous J&A stated that in order to increase the possibility of future competition, market research would continue to be conducted. In accordance with DFARS PGI 206.304, market research since the previous J&A has been completed. The Government issued a SSA for this acquisition on FedBizOpps;

recent market research has yielded no additional potential supplier of the two parts.

The Government will continue to conduct market research to ascertain if additional changes occur in the marketplace that would enable future actions for these items to be competitive. .

Subcontracting opportunities may be available under this acquisition, and FAR 52.244-5, Competition in Subcontracting, will be included in the solicitation and the resultant contract.

DLAD 52.217-9002, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items (APR 2010), will be included in the solicitation and alternate offers, if received, will be evaluated in accordance with it. Although only one offer is expected because only one company can provide the required parts, the solicitation will provide for evaluation and award on a CLIN-by-CLIN basis.

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.

Senior Mechanical 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 Culik Moore Contracting Officer

Date

I have reviewed this justification and recommend approval.

Bradley Holtzapple Competition Advocate

Date

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 the Contracting Activity (HCA) ( ) Over $93,000,000 Senior Procurement Executive (AQ)

Attachment 1- Justification and Approval SPRBL1-10-D-0005/SPRBL1-10-R-0023

Date: 2015.12.08 10:57:08 -05'00'

Date: 2015.12.07 15:54:31 -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: 2015.12.08 14:14:09 -05'00'

HOLTZAPPLE.BRADLEY.A.1198214309

Digitally signed by HOLTZAPPLE.BRADLEY.A.1198214309 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=HOLTZAPPLE.BRADLEY.A.1198214309 Date: 2015.12.09 14:07:56 -05'00'