SPRBL1-18-D-0012_J&A-Redacted.pdf

CONTRACT SPRBL1-18-D-0012 / SOLICITATION: SPRBL1-18-R-0024

Justification and Approval For Other than Full and Open Competition

1. Contracting Activity: DLA Land at Aberdeen Attn: DSCC-ZLAB 6001 Combat Drive Aberdeen Proving Ground, Maryland 21005

2. Description of Action: This Justification and Approval supports the solicitation, negotiation, and award for a five-year, Firm-Fixed-Price (FFP), Indefinite-Delivery Purchase-Order (IDPO), commercial supply contract using other than full and open competition. The contemplated award will have one five-year base period with no option periods. This requirement is for AC Generators used on the 15 kW Tactical Quiet Generator (TQG). This requirement is for the production and delivery of commercial part numbers (P/Ns) 88-21005 (60 Hz) and 88-21006 (400 Hz). FAR Part 13.5 procedures will be used in this procurement. The National Stock Numbers (NSNs) on this acquisition are 6115-01-383-3124 (60 Hz) and 6115-01-434-1432 (400 Hz).

The resultant contract will have an estimated five-year dollar value of and a maximum contract value of . The guaranteed minimum amount for this contract will be Army Working Capital Funds will be used for this acquisition.

3. Description of Supplies/Services:

NSN Nomenclature P/N

Unit Price (Est.)

Max Value

AMRC

6115-01-383-3124 AC Generator (60 Hz) 88-21005

3B

6115-01-434-1432 AC Generator (400Hz) 88-21006

3B

Both parts are commercial brand name items manufactured by Marathon Electric Manufacturing Corporation (Marathon). The Marathon generators are components of the 15 kW, 50/60 Hz and 15 kW, 400 Hz Tactical Quiet Generator (TQG). , tested and approved by PM Mobile Electric Power (MEP) for use on the MEP-804 and MEP-814 and are design-specific for their respective end item generator sets. Each AC generator functions as is a single bearing, drip-proof, synchronous, brushless, three phase, fan-cooled generator that is coupled directly to the rear of the diesel engine.

The TQG is being supported until approximately 2031, when the TQG system is set to be replaced.

4. Statutory Authority for Other Than Full And Open Competition Authority Cited: The statutory authority permitting other than full and open competition is Title 41 U.S.C. 1901, as implemented by FAR 6.302-1, “Only One Responsible Source And No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Demonstration of the Contractor’s Unique Qualifications or Rationale for use of the Cited Statutory Authority: Marathon Electrical Manufacturing (CAGE 38151) located at 100 E Randolph Street, Wausau, WI, 54402-8003 (hereinafter “Marathon”) is the Original Equipment Manufacturer (OEM) for these items, and is identified as the sole source supplier on the Government’s source control drawing. These Marathon brand name generators were previously acquired as part of the TQG acquisition by PM MEP and have passed extensive performance and reliability testing.

The Acquisition Method Reason Code (AMRC) for this item is 3B. The “3” denotes that the item is being acquired for the second or subsequent time, directly from the actual manufacturer.

The “B” signifies that this part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100.

Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

The Government does not possess the technical data package (TDP) including drawings or specifications that completely define form, fit, and function (F3) of the two NSNs being procured. In addition, the F3 of the AC Generators are not defined in any nationally recognized industry standard or specification that would allow any full and open competition. The detailed Level 3 drawings for the AC Generators are proprietary to Marathon who has declined attempts by the Government to acquire the TDP.

6. Efforts to Obtain Competition: Market research was conducted and the details of which are in the Market Research section of this document. The previous Justification and Approval stated continued research would take place to ascertain if changes in the market place allowed for full and open competition. The actions to remove barriers to competition that were contained in the previous J&A were completed. Efforts to remove barriers to competition included extensive market research via phone calls and emails to locate manufacturers and distributors of these NSNs and part numbers. The market research yielded no additional potential manufacturing sources that could meet the requirement. Dealer, however were identified and competition is anticipated for this acquisition as the OEM uses multiple distributors to sell these parts.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there any changes in the market place that would enable future actions to be competed. Ongoing efforts to remove barriers to competition will include continued market research. This will include communication with industry to determine market place changes and dialog with the OEM to ascertain if they are interested in selling the TDP.

8. Market Research: On 12 September 2016, Technical Experts within the Integrated Logistics Support Center (ILSC) published a Sources Sought Announcement (SSA) on Federal Business Opportunity (FBO) website seeking potential sources to meet the Government’s requirement. No responses were received so the SSA was extended on 29 November 2016 to 16 December 2016.

There were no response to the reopening of the announcement. DRS Consolidated (CAGE 93742), expressed to the Engineer (via phone) that they may be interested but did not respond to the SSA.

The Contracting Specialist conducted market research by emailing market surveys and calling potential vendors. Eighteen (18) market surveys were sent to large and small business concerns.

Only two potential suppliers submitted responses stating they could meet the Government's requirements. DRS Consolidated Controls Inc. (CAGE 93742) responded to the email on 23 Januaiy 2017 with a completed market smvey questionnaire indicating they will provide the required part numbers. Rumsey Electric (CAGE 77657) responded 1 Febmaiy 2017 and provide a quote with prices for both part numbers. The other 16 vendors that ai·e indicated as suppliers for NAICS code 335312 did not respond to the market research. During a phone call to Mai·athon on 23 Febmaiy 2017 the Contracting Specialist was infonned by the Marathon representative that Mai·athon does not deal directly with the Government. The Representative fmther explained Mai·athon does not have authorized dealer or distributors and any company can buy pait numbers PIN 88-21006 and 88-21005.

9. Interested Sources: In accordance with FAR 5.201, the proposed action was synopsized on 17 April 2017 via FBO.GOV. All proposals received shall be evaluated. Vendors who expressed interest are as follows:

DRS Consolidated Controls, 141 North Ave, Bridgeport, CT 06606-5120 Rumsey Quality & Service, 15 Colwell Lane, Conshohocken, PA 19428-1878

10. Other Facts:

a. Procurement history: Engineered Electric Company CAGE: 93742 (now DRS) was the most recent awardee of the AC Generators on contract number SPRBLl -10-D-0008 which expired on 14 July 2015.

b. Actions Being Taken to Overcome Barriers to Future Competition: The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future requirements to be obtained using full and open competition.

c. Acquisition Data Availability. The Government has the top-level drawings and does not possess the complete technical data that describes all required form, fit and function characteristics of the AC Generators.

d. Subcontracting Competition. The Government will seek to maximize subcontracting competition with the inclusion of terms and conditions, which require large business concerns to submit a small businesses subcontracting plan for acquisitions meeting the $700,000 threshold.

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.

- Date: 31 July 2017

Product Realization Engineer Signature:_ .... "'"'"'"""" ... ,

12. Requirements Certification: I ce1tify that the supporting data under my cognizance, which are included in this justification, ai·e accmate and complete to the best of my knowledge and belief.

- Date:

21-JULY-2017

Invent01y Management Specialist Signature: _

13. Fair and Reasonable Cost Determination: I hereby dete1mine that the anticipated price to the Government for this contract action will be fair and reasonable, based on a technical evaluation, comparison of proposed prices with an Independent Government Estimate, and price/cost analysis. Certified cost or pricing data will not be obtained in accordance with FAR 15.403-l(b) (3).

Justin Ruth Date:

Procuring Contracting Officer

14. Procuring Contracting Officer Certification: I ce1iify that this justification is accurate and complete to the best of my knowledge and belief.

Justin Ruth Date:

RUTH.JUSTIN.DOU Oigitaltysignedby

Procuring Contracting Officer Signature:

GLAS. oa1e:2011.os.2213:06:57-04'00'

- RUTHJUSTIN.DOUGLAS

Approval

I have reviewed and approve this justification.

Date:

(X)

Up to $7000,000 $700,000 - $13,500,000 $13,500,000 - $93,000,000 Over $93,000,000

Competition Advocate DLA Land and Maritime

Contracting Officer Competition Advocate Head of Contracting Activity Senior Procurement Executive