SPRBL1-18-R-0039_J&A_(Redacted).pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPRBL1-18-R-0039

Source Selection Information – See FAR 2.101 & 3.104

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

This solicitation is anticipated to result in Firm-Fixed-Price (FFP), Indefinite-Delivery/Indefinite

Quantity (ID/IQ) contract(s) with five (5) base years and no option years in the support of the 2nd Gen FLIR Block 1 B Kit. To satisfy its requirement, the Government intends to award multiple contracts from this solicitation but reserves the right to award one contract to a single offeror if it is determined by the Contracting Officer to be in the best interest of the Government. The determination to make multiple or single awards will be decided on an NSN by NSN basis. The Contracting Officer will select the proposal(s) that represent the lowest price technically acceptable proposal on an NSN by NSN basis. The Contracting Officer expects that the prices will be found fair and reasonable based on comparison of competitive proposed prices received in response to the solicitation per FAR 15.404-1(b)(2)(i) and/or comparison to historical prices paid per FAR 15.404-1(b)(2)(ii).

8. Market Research/Efforts to Obtain Competition:

For Market Research, three Sources Sought Announcements were posted to the Federal Business Opportunities (FedBizOpps) web site:

(1) The Army posted Market Survey 5973-1 to FedBizOpps on February 8, 2016 with responses due by February 29, 2016 to seek sources able to provide these spares. Five responses were received to Market Survey 5973-1.

The following incumbents responded to Market Survey 5973-1:

Raytheon Company, CAGE Code: 96214

DRS Network and Imaging Systems LLC, CAGE Code: 32865

The following potential offerors also responded to Market Survey 5973-1 expressing an interest in supplying one or more of these items. However, after reviewing the responses from each offeror and informing these potential offerors that the Government does not own and therefore cannot provide the Technical Data Package (TDP) for these items, these potential offerors confirmed that they are not capable of supplying these items:

Thomas Global Systems LLC, CAGE Code: 6ZT04

International Enterprises, Inc. (d/b/a Elbit Systems of America), CAGE Code: 50218

Rockwell Collins Optronics, CAGE Code: 58RS8

– Source Selection Information – See FAR 2.101 & 3.104

(2) As a follow-up due to the time that had elapsed, the Army posted Market Survey 6193-1 to FedBizOpps on June 20, 2017 with responses due by July 7, 2017 in an effort to seek sources able to provide these spares. Five responses were received to Market Survey 6193-1.

The following incumbents responded to Market Survey 6193-1:

Raytheon Company, CAGE Code: 96214

DRS Network and Imaging Systems LLC, CAGE Code: 32865

The following potential offerors also responded to Market Survey 6193-1 expressing an interest in supplying one or more of these items. These potential offerors are not capable of supplying these items without the TDP. The Government does not own and therefore cannot provide the TDP for these items.

Thomas Global Systems LLC, CAGE Code: 6ZT04

International Enterprises, Inc. (d/b/a Elbit Systems of America), CAGE Code: 50218

Sofradir EC, Inc., CAGE Code: 61834: Note that, during follow-up phone conversations with the Government’s Engineer, Sofradir EC indicated that they manufactured a product similar to the SADA IR Detector/Cooler Bench and had supplied them in limited quantities to Raytheon. However, to date Sofradir EC has not produced any documentation that would allow the Government’s Engineer to confirm if these items were subsequently delivered to the Government from Raytheon.

(3) As a follow-up due to the time that had elapsed, the Defense Logistics Agency posted Market Survey 6193-1A to FedBizOpps on January 16, 2018, with responses due by January 23, 2018 to seek sources able to provide these spares. Two responses were received to Market Survey 6193-1A.

The following incumbents responded to Market Survey 6193-1A:

Raytheon Company, CAGE Code: 96214

DRS Network and Imaging Systems LLC, CAGE Code: 32865

For the items in this solicitation, both Raytheon and DRS each own a TDP that has been approved by the Government. The Government has purchased and fielded these supplies from both manufacturers. The parts serve the same purpose and are interchangeable.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

[X] A market survey was conducted on: February 8, 2016, June 20, 2017, and January 16, 2018 Total number of vendors contacted: Six (6) Names of vendors contacted and responding, Techniques used to conduct survey, Types of information requested, Summary of information received: As described above in Section 8.

– Source Selection Information – See FAR 2.101 & 3.104

Information received regarding the commerciality of the item(s):

On October 18, 2017, pursuant to DLAD 12.102(S-90), the Contracting Officer determined that these supplies do not meet the definition of a “commercial item” in FAR 2.101. These items will be procured using FAR Part 15 procedures.

[ ] A market survey was not conducted due to the unusual and compelling urgency of the requirement.

[ ] A market survey was not conducted due to: __________________________________________

9. Additional facts supporting other than full and open competition are:

[ ] Based upon the technical certification on file in DLA Land and Maritime – VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

[ ] As stated in the attached certification by the requiring activity, the Military Services will be seriously injured in contract award is delayed. The extent and nature of harm are detailed in the attached certification, or provide a narrative Impact Statement below:

[ ] When FAR 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

[X] Other: (Explain) The 2nd Gen FLIR Block 1 B Kit was previously under the Army contract W15P7T-06-C-M209 awarded to Raytheon with some of the parts manufactured by DRS as a Subcontractor to Raytheon.

Subsequently, multiple award Army contracts were awarded to both Raytheon (W909MY-15-D-0001) and DRS (W909MY-15-D-0002) which included these four NSNs allowing for limited competition between Raytheon and DRS. These NSNs have now transitioned into sustainment, and DLA will continue the strategy of multiple award with competitive delivery orders.

As noted in the Justification and Approval For Other Than Full and Open Competition for the prior contracts W909MY-15-D-0001/W909MY-15-D-0002, as an effort to increase competition, the Government requested a price from Raytheon for the TDP that would be needed to produce the required items. Raytheon’s response to the Government’s formal request for a TDP stated that this requirement would be a minimum 3-year effort estimated to The Government contacted DRS regarding the potential sale of their TDP, DRS indicated they had no intention of selling their proprietary information to the Government. Development of a separate Government owned TDP was estimated to cost approximately the same as what Raytheon had proposed for the sale of their After performing a cost/benefit analysis, the Army determined, based on the projected value of follow-on acquisitions and the anticipated life cycle of these items, acquisition of the TDP is not in the Government’s best interest. Additionally, the Program Manager is pursuing Third Generation Improved Forward-Looking Infrared (3rd Gen FLIR) which will replace the legacy 2nd Gen FLIR on a one-for-one basis. The 3rd Gen FLIR was solicited as full and open competition on June 2, 2015.

– Source Selection Information – See FAR 2.101 & 3.104

10. A listing of qualified sources indicating an interest in the acquisition:

Raytheon Company, CAGE Code: 96214 DRS Network and Imaging Systems LLC, CAGE Code: 32865

11. The following actions are being taken to identify additional sources:

[X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [X] Other:

Actions to Increase Competition: Because acquisition of the TDP is not in the Government’s best interest and the 3rd Gen FLIR was solicited as full and open competition, the Contracting Officer has determined that the planned actions to increase competition from previous justifications have been completed. Market Research will continue, to include Sources Sought Announcements for future acquisitions.