A_11_(10634)_-_JA-Spares_(Final)_4_Aug_(Redacted).pdf

SPRBL1-16-R-0033

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Defense Logistics Agency (DLA) DLA Land at Aberdeen (DSCC-ZLAB) 6001 Combat Drive Room C1-301

APG, MD 21005-1846

2. Description of Action:

The Justification and Approval supports a solicitation using other than full and open competition for a Firm-Fixed-Price, Five year Indefinite Delivery / Indefinite Quantity (IDIQ) contract. The requirement is for the production and delivery of two items, Display of Control Module and Tactical Wheeled Vehicle (TWV) Sensor, from DRS Network & Imaging Systems, LLC (DRS) and BAE Systems Information and Electronic Systems Integration, Inc. (BAE). Both parts are depot level repairable spares in support of sustainment of the AN/VAS-5A and AN/VAS-5B Driver’s Vision Enhancer (DVE), and manufactured by DRS as well as BAE. The Display Control Module and the TWV Sensors were developed using a performance specification. BAE and DRS configured both items independently to ensure the items met form, fit and function requirements. Although each DRS component is interchangeable with a BAE component, the Display Control Modules and the TWV Sensors are configured differently.

This is for non-commercial parts. The solicitation will use FAR part 15 Contracting by Negotiation procedures.

The Government anticipates awarding two contracts (one to BAE and one to DRS) and competing each delivery order between the two contracts, after their guaranteed minimum is met.

The five year estimated contract value, for both contracts combined, is The contract maximum value for each contractor will be . Army manages these spares; therefore, Army Working Capital Funds (AWCF) will be used for this effort.

3. Description of Supplies/Services:

The items being sought under this solicitation are two U.S. Army (CECOM) managed items that support sustainment and function of DVE systems. The DVE systems and these items were last previously procured under Army Product Manager Ground Sensors (PM GS) contracts W15P7T-09-D-M402 with DRS and W15P7T09-D-M403 with BAE. Contracts W15P7T-09-D- M402 and W15P7T09-D-M403 are current through May 2016 (through two year extension) and this new contracting initiative will provide continuing sustainment support for these DVE system items.

DRS, CAGE Code 32865, and BAE, CAGE Code 19397, are the original manufacturers of all the spares addressed in this acquisition. DRS and BAE control the design and configuration of these items. The items are as follows:

Required components

Item Description National Stock Number (NSN) MFR Part Number AMC/AMSC

Display Control Module

5980 01 587 5877 BAE 84575101 3P

5980 01 525 1688 DRS 6455160 3P

Tactical Wheeled Vehicle (TWV) Sensor

5855 01 587 5899 BAE 8434112 1 3P

5855 01 588 3763 DRS 1000613-102* 3P

* Part number 1000613-102 replaced DRS’s part number 1000613-101, which is obsolete.

The DVE is an un-cooled thermal imaging system developed for the use of drivers operating a multitude of

The DVE system consists of a TWV Sensor, Assembly of Electronic Pan & Tilt (EP&T) and Display Control Module, Display Screen, and Cable Assembly. In accordance with MIL- PRF-49256D section 3.4.8.4 Backwards Compatibility and Interchangeability, the TWV Sensor, Display Control Module (DCM), interconnect cable, and power cable shall be backwards compatible with previously fielded (legacy) DVE Combat Vehicle (CV), TWV, and Mine Resistant Ambush Protected (MRAP) TWV systems. The system shall work with either DCM from DRS or BAE. If the DRS DCM NSN is removed from the platform then the BAE DCM will operate the system. This is also true with the TWV sensor.

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(a)(2), “Only One Responsible Source or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and No other Supplies and Services Will Satisfy Agency Requirements”.

The Contracting Officer will synopsize the proposed contracting action at least 15 days before issuance of the solicitation in accordance FAR 5.203(a). In addition, Defense Logistics Acquisition Directives (DLAD) 52.217-9002 (DEC 2011), “Conditions for Evaluation & Acceptance of Offers for Part Numbered Items”, will be included in the solicitation. The Contracting Officer will include FAR 52.244-5 “Competition in Subcontracting” (DEC 1996), which requires the contractor to select subcontractors on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract in the solicitation.

7. Fair And Reasonable Cost Determination:

As the Contracting Officer, I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on price analysis, a comparison of proposed prices received in response to the solicitation and a comparison of currently proposed pricing and previous contract pricing. Although this acquisition is expected to exceed the Certified Cost or Pricing threshold, FAR 15.403-1(b)(1) prohibits obtaining Certified Cost or Pricing Data if the price can be determined fair and reasonable based on price competition. However, the Contracting Officer will obtain Certified Cost or Pricing Data in accordance with FAR 15.403-4, if only one offer is received in response to the subsequent solicitation.

8. Market Research:

Technical experts supporting the CECOM LCMC LRC published a market survey to find potential sources capable of producing the parts needed to support the DVE systems. Market Survey #5915-1was posted to the Government Point of Entry (FedBizOpps) from September 1, 2015 through September 15, 2015, with a list of required spare parts to sustain the DVE systems.

DRS Network & Imaging Systems, LLC (DRS NIS) responded to the Market Survey that DRS NIS has continually produced DVE products for the past eleven years, since April of 2004.

DRS NIS has current delivery orders and will continue to deliver all Government orders as awarded DVE-FOS under the W15P7T-09-D-M402.

BAE Systems, Electronic Systems Sector responded to the Market Survey that BAE is still under contract for production and other services under the contract #W15P7T-09-D-M403, and therefore can provide the cost-effective and effective engineering support, engineering services, and supply of spare parts to support the DVE-FOS needs.

MOOG Inc. Sensor and Surveillance Systems responded to the Market Survey. MOOG has been the market leader in Tripod and Electro Mechanical Pan/Tilt systems and since 1933, MOOG has been able to leverage field proven designs that exceeded operational requirements and imposed little risk on quality or the accelerated delivery schedules needed by our armed forces. MOOG only showed interest in providing the Pan and Tilt and Controller Module, for which it is a qualified source, and those parts are not part of this acquisition.

Digital Systems Engineering (DSE) Inc. responded to the Market Survey and offered their DVE10 as a solution for the Display Control Module. DSE stated that their DVE 10 was fully compliant with the base DVE System Display. However, after reviewing the test data DSE provided, the Government learned the DCM (NSNs 5980-01-525-1688 and NSN 5980-01-587- 5877) had not been tested for compatibility with the DVE FOS used by the Government. As a result, the Government asked the vendor to provide or perform testing of the DCM with the DVE FOS. DSE responded with a request that the Government provide the funding needed to test the DCM. The Government declined to provide such funding and since then DSE has not expressed any plan to fund its own testing in near future. If DSE decides to fund its own testing, the Government will review its test data. It is further noted that BAE and DRS funded their testing to become approved. DSE did not express interest in the TWV Sensor.

The contracting specialist issued a sources sought for these items on 28 January 2016.

DSE; DRS and BAE were the only respondents. On March 03, 2016, the CECOM Deputy Product Manager Ground Sensors indicated to DLA that FLIR Systems Inc. might be a potential source for the TWV Sensor and the Display Control Module and provided point of contact information for the company. On March 21, 2016, DLA Land at Aberdeen called , the FLIR representative, who stated that based on the Governments' inability to provide TDPs/intellectual packages, FLIR will not be able to produce the desired NSNs to the required form, fit and function level. FLIR will continue to research other options to meet these demands and could possibly respond to the planned RFP. Mr. Crizer confirmed his assertion via email.

Based on market research, DRS and BAE are the only sources that can meet the Government’s MIL-PRF-49256D section 3.4.8.4 Backwards Compatibility and Interchangeability requirements for spare TWV sensors and DCMs of the DVE system.

9. Other Facts:

Procurement History: DRS and BAE are the current sources for production of the required parts. DRS and BAE are the original equipment manufacturers and possess all engineering data related to the listed DVE items.

Contract/DO Number Item Description

Contractor NSN Extent Competed/Authority

W15P7T-09-D-M402 DCM DRS 5980 01 525 1688 Competitive W15P7T-09-D-M402 TWV DRS 5855 01 588 3763 Competitive W15P7T-09-D-M403 DCM BAE 5980 01 587 5877 Competitive W15P7T-09-D-M403 TWV BAE 5855 01 587 5899 Competitive

** Note: These contracts were competed for the development of the standardized parts based on the performance specification.

Acquisition Data Availability: The government possesses the overall performance specifications for the DVE-FOS, but does not possess the detailed technical data that describes all required form, fit, and function characteristics of the system or spare parts.

For future procurements, the contracting office and the customer will consider the possibility of creating a new NSN to represent the interchangeable DCM parts manufactured by these entities and a new NSN to represent the interchangeable TWS parts manufactured by these entities.

Per DFARS PGI 206.303-2 and 206.304 (whether any efforts to obtain competition were completed), the Government stated on its last J&A for contracts W15P7T-09-D-M402 and W15P7T-09-D-M403 that it did not intend to conduct any additional Market Research unless a requirement for a new generation of platform sensors were to arise. The Government does not have a new requirement for a new generation of platform sensors.

10. Interested Sources:

Vendor CAGE DRS Network & Imaging Systems, LLC

(DRS NIS)

32865

BAE Systems, Electronic Systems Sector 19397

11. Actions agency may take to overcome barriers to competition:

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

Without configuration control of the technical data package, little can be done to increase the possibility of competition. The solicitation will be published in the Federal Business Opportunities (FedBizOpps).