A11-JA-SPRBL1-18-R-0029_Redacted.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRBL1-18-R-0029

. 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 ten-year, Firm Fixed Price (FFP), Indefinite Delivery, Indefinite Quantity (IDIQ), stock replenishment contract for an Image Intensifier Tube. The proposed contract will have one five-year base period and one five-year option period. The Image Intensifier Tube is a component of the AN/PSQ-20B Enhanced Night Vision Goggle

(ENVG).

The part is manufactured by L-3 Technologies, Inc., 9 Akira Way, Londonderry, New Hampshire 03053-2037.

The estimated ten-year contract value is The maximum ten-year contract value is

NSN Nomenclature L-3

Technologies Part No.

AMC AMSC Estimated Annual

Quantity

Estimated 10 Year Quantity

10 Year Estimated

Value

10 Year Maximum

Value

5855-01-610-5231 Image Intensifier Tube OFM-2307-A1 3 P 268 2,680

Total

Army Working Capital Funds (AWCF) will be used to support this acquisition.

The Contracting Officer determined on 06 March 2018 that the Image Intensifier Tube is commercial.

Accordingly, this procurement action will be conducted in accordance with FAR Part 12, Acquisition of Commercial Items and FAR Part 15, Contracting by Negotiation.

3. Description of Supplies/Services

The Image Intensifier Tube amplifies ambient light to produce an image on its phosphor screen in order to create a visible image in low light conditions. It is a component of the AN/PSQ-20B Enhanced Night Vision Goggle (ENVG). The AN/PSQ-20B ENVG is a helmet-mounted dual waveband monocular that provides the warfighter with both significantly improved thermal targeting and enhanced visual imaging in all theatre conditions.

The AN/PSQ-20B ENVG can be used to view image intensification or thermal imaging separately or together, while the AN/PVS-14, which is an earlier generation of the monocular night vision device, views image intensification imaging only. The AN/PVS-14 has only an Image Intensifier Tube, which detects and amplifies ambient light to create a viewable image, and does not have a thermal sensor or display. While the AN/ PSQ-20B has an image intensifier tube that is similar to the AN/PVS-14, it also has a thermal sensor and display. The AN/PSQ-20B thermal sensor detects heat signatures in the scene and shows them on the organic light-emitting diode (OLED) display. Because the Image Intensifier Tube requires some level of light to amplify the image, the theatre capability of the AN/PVS-14 is limited by any environment in which light is limited or

SOURCE SELECTION INFORMATION & SENSITIVE- SEE FAR 2.101 & 3.104

The solicitation

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 only known manufacturing source of supply for the spare part described above is L-3 Technologies, Inc.

(L-3), CAGE 0B107, 9 Akira Way, Londonderry, NH, 03053-2037. L-3 owns the technical data package (TDP) for the Image Intensifier Tube, and possesses the expertise to produce it. L-3 is the only contractor with past history manufacturing the Image Intensifier Tube for the Government.

Because L-3 owns the TDP for the Image Intensifier Tube, any other source is unable to produce a tube that would be form, fit, or functionally interchangeable with previously fielded Image Intensifier Tubes.

L-3 has the detailed knowledge of the dimensional interface, alignment, and performance requirements of the Image Intensifier Tube and the AN/PSQ-20B ENVG.

Additionally, the Image Intensifier Tubes needs to be rotationally aligned and adjusted to insure that the image intensification (I2) and thermal images will be correctly aligned with the AN/PSQ-20B ENVG. L-3 has developed proprietary test equipment to determine the rotational axis of the tube, and manufacturing instructions to install the rotation ring, correction plate, and notched key on the housing. L-3’s test equipment and manufacturing instructions ensures that the Image Intensifier Tube is installed on the correct rotational axis.

The Army Technical Expert contacted L-3 on 19 December 2017 and asked L-3 if they would be willing to sell the TDP for the Image Intensifier Tube, including drawings, sub-assemblies, performance specification, work instructions, and test equipment for rotational axis determination. L-3 responded by email on 19 January 2018 to the Army Technical Expert stating that L-3 will not sell the TDP for the Image Intensifier Tube.

Manufacture of the Image Intensifier Tubes uses complex methods and more than 400 documented production process steps. Each Image Intensifier Tube has unique characteristics, such as signal-to-noise ratio, photocathode response, resolution, and the number of allowable blemishes, and these characteristics assure that the I2 image aligns correctly with the thermal image. Additionally, the Image Intensifier Tube must be reverse compatible with the entire AN/PSQ-20B ENVG system and its components. The Government does not own the TDP for the AN/PSQ-20B ENVG system or the Image Intensifier Tube. The Government estimates the price to reverse engineer the Image Intensifier Tube at approximately $100M investment in equipment, specialized personnel and technology. Due to the price, complex manufacturing methods, lack of TDPs, and requalification requirement, it is impractical to reverse engineer the Image Intensifier Tube.

The Acquisition Method Reason Code (AMRC) for the spare part is 3P. The assigned value “3” means that the part is to be acquired, for the second or subsequent time, directly from the actual manufacturer. The assigned value “P” means that the rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part.

If the Image Intensifier Tube is not procured from a capable source that owns the TDP, the U.S. Army’s ability to perform missions at night and in conditions of varying visibility is adversely affected. Operational failure of the Image Intensifier Tube removes the ability of the Warfighter to see in low-light conditions, and can result in serious injury and/or loss of life.

6. Efforts to Obtain Competition

Market research was conducted, the details of which are in the market research section of this document. In accordance with FAR 5.201, this action was synopsized on FedBizOpps on 23 January 2018 and the notice was more than 15 days prior to issuance of the solicitation. No company responded to the pre-solicitation notice.

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. In accordance with FAR 15.403-1(b)(c), certified cost and pricing data will be not be required for this commercial part. If required to determine fair and reasonable pricing, data other than certified cost and price data will be obtained.

8. Market Research

On 23 August 2017, Technical Experts within the Integrated Logistics Supply Center (ILSC) published a sources sought announcement (SSA) on FedBizOpps (FBO). Two companies responded to the notice: L-3 Technologies and DEP Technologies (DEP). Although DEP Technologies inquired about the SSA, the Technical Expert advised they did not submit response to the SSA.

L-3, CAGE 55311, responded that they have previously supplied the item, passed an Initial Production Test (IPT) / First Article Test (FAT), and maintained continuous production of it. L-3 advised that they have been manufacturing image intensifier (I2) tubes for the over 40 years.

DEP, CAGE 7FR66, responded that they provide a variety of Photonis imaging tubes. Market research by the Contracting Officer in November 2017 revealed that Photonis is a manufacturer of military grade high-performance imaging sensors. Market research also revealed that DEP is a manufacturer of night vision systems.

On 06 November 2017, the Army asked for a ten-year contract. Because the original SSA was for a five-year contract, the Contracting Officer posted a second SSA on FBO on 06 November 2017. Only L-3 responded to this SSA, and included the same information as their earlier response to the Army SSA.

The Contracting Officer performed additional market research in October and November 2017. WebFLIS, Haystack Gold, and the Army i2Log showed that CAGE 0B107, L-3 Technologies, 9 Akira Way, Londonderry, NH as the contractor. Although the NSN is listed in FedMall, it is unavailable.

Harris Corporation manufactures Image Intensifier Tubes, but do not make a tube for the AN/PSQ-20B ENVG.

Photonis, headquartered in France with a United States division also manufactures Image Intensifier Tubes, but do not make a tube for the AN/PSQ-20B ENVG. No other sources of Image Intensifier Tubes were found searching the internet.

These above searches did not yield any other manufacturers for the Image Intensifier Tube other than L-3.

9. Other Facts

The previous procurement history for the Image Intensifier Tube is shown in the table below. The scope of contract W91CRB-10-C-0179 scope was to produce test AN/PSQ-20B ENVG systems, satisfy initial operational tests and evaluations, and proceed into full production. The acquisition was competitive, resulting in the awardee, L-3, becoming the only approved manufacturing source. The contract was firm-fixed-price with a three-year base period and two option years.

Contract Number Award Date Contractor Parts Extent Competed/Authority

W91CRB-10-C-0179 Aug 10 2010 L-3 Insight Technology Inc.1 AN/PSQ-20B, including Parts Competitive

1The contractor changed its name to L-3 Technologies, Inc. on Dec 31 2016.

With respect to DFARS PGI 206.304(a)(S-70), the previous procurement was competitive to develop and produce the AN/PSQ-20B ENVG and associated parts, and as such it was not supported by a justification for other than full and open competition citing the authority at FAR 6.302-1.

Army CECOM Integrated Logistics Supply Center (ILSC) manages this part.

10. Interested Sources

Both L-3 and DEP expressed interest in this acquisition, however only L-3 owns the TDP in order to manufacture the Image Intensifier Tube to the Government requirements.

11. Actions to Increase Competition

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