DLA0393.pdf

CMO Control Number:

SPRDL1-11-R-0168

DEPARTMENT OF THE ARMY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The DLA Land - Warren is the procuring activity for this action . 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, "Only One Responsible Source and no other supplies or services will satisfy requirements."

PART I - Description of Item Required:

a. NOUN: Pump Unit, Axial, Piston

b. QUANTITY: 20 each basic 20 each option Total 40 each

c. NSN: 4320-01-561-8936

d. MPN: 29511632

e. VEHICLE SYSTEM: M113A3 FOV

f. ESTIMATED UNIT PRICE: $ 15,075.50

g. ESTIMATED VALUE: $ 301,510.00

ESTIMATED OPTION VALUE: $ 301,510.00

ESTIMATED TOTAL VALUE: $ 603,020.00

h. PRON NUMBER: EH1Y6543EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above item. The only approved source(s) for the above item is:

Contractor Name: Allison Transmission Their Part Number: 29511632 Cage: 73342

2. Reasons the item is not suitable for full and open competition:

a. Status of the Acquisition Data:

The major item is source controlled to Allison Transmission. The Government does not have drawings that are suitable for competitive procurement. The drawings were not defined for the following reasons:

(1) The above identified approved source developed, tested, and obtained

Government's approval of this item for application to the X200-4A hydraulic transmission of the M113 FOV at their own costs. The Government did not fund their efforts in developing and testing this item.

Additionally, the Government did not fund them to prepare fully detailed TDPs after approval. As such, Allison Transmission is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

(2) The Government does not own the patent rights to their data that would be required to produce a competitive TDP.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

(1) There are no current plans to acquire a competitive TDP because funds are not available to acquire the data necessary to support a competitive acquisition. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. This delay would severely impact the availability of this item in the field. This program is critical to M113 FOV’s readiness. Through our previous experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $0.5M and could require an estimated delay of at least thirty (30) months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Added to these costs and delays would be the cost and time involved to test and qualify another source.

Qualification and durability testing would be required to prove out this item manufactured by a new source(s) at an estimated cost of an additional $0.5M and delay of 12 months. To do otherwise would be a high risk as a premature failure of this item in the field could result in an extensive loss of the equipment and probable loss of lives. Testing would also surface latent defects that could adversely impact the readiness of the equipment and Operational and Support (O & S) costs.

Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering effort at this time.

(2) The Government would not be able to recover through subsequent competition the additional costs involved to allow the procurement to become competitive.

(3) If the Government conducts the efforts to allow the Procurement to become competitive, an unacceptable delay of at least forty-two (42) months would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs.

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) The approved source, Allison Transmission, is the sole owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. The item is a specifically designed hydraulic pump for application to M113A3 FOVs IAW military specifications. To our knowledge, no other commercially available hydraulic pump would meet form, fit, functional and interface requirements of this military specifications.

(2) Only Allison Transmission has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J & A. This item is a part of a major specialized piece of equipment. During the Demonstration/ Validation (Dem/Val) and Full Scale Engineering Development (FSED) Phases of the M113 FOV’s Life Cycles, no vendors other than Allison Transmission had developed and integrated this item per M113 FOV’s system design and specifications successfully passing all required Brassboard and Advance Development Prototype Qualification (DT/OT I) testing, and Engineering Development Prototype Qualification (DT/OT II) testing, 6,000 miles vehicle RAM-D testing, including EMI/EMC, EMP/Nuclear Hardening, Environmental Stress Screening (ESS), high temperature, low temperature, humidity, shock, vibration, and noise level. Hence, they are the only one designated the sole source on the TDP.

(3) The approved source identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material and/or improper process/quality control during manufacturing of this transmission component would result in malfunctioning or even a complete failure of this item for its designed intent. Also, this condition happening during peacetime use would force the Army unit to deadline vehicles, impacting the Operational Readiness (OR) Rate, until the damaged/malfunctioning transmission is either repaired or replaced.

(4) The item has been proven acceptable through extensive 6,000 miles vehicle RAM-D testing. An award to any other source would cause a substantial duplication of cost to the Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling the agency’s requirements. Qualifying a new source would require a substantial expenditure. A new source would require tooling adjustment and development of extensive processing procedure. The additional time required for these actions would prohibit delivery of the item in a time frame that would meet the Government’s requirements. The item required is mission critical in that a failure of this item during operation in an M113 would cause extensive and extremely costly damage.

d. Efforts to Qualify Additional Suppliers for future procurements:

(1) No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

(2) At this time, there are no current or planned efforts to qualify additional sources due to the fact that there is no technical data available, nor are there funds available to conduct the extensive (costly and time consuming) qualification tests. Furthermore, any new source would be required to pass extensive first article/validation testing at the component and vehicle level. Vehicle testing is required to insure an additional supplier demonstrates the same performance levels (function, safety, RAM-D, etc.), as those produced by Allison Transmission. The additional time required for these actions would prohibit the delivery of the items in a time frame that would satisfy the Government’s needs.

e. Market Research – This item does not appear on either the

Competition Advocate’s Shopping List (CASL) or the Advance Procurement Planning List (APPL) dated 06 Dec 2010. To date, no additional contractors have expressed an interest in this item.

3. The POC for this action is Tony Combi, Mech. Engineer, Ext. 282-6696.

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief.

Name: Ray Womack Title: TL, TARDEC GVPM - Powertrain-Production Signature: Raymond M Womack Date: 29 July 2011

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH1Y6543EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: Angela Mausolf, 248-588-9672 Signature: Angela Mausolf /s/ Name: Angela Mausolf Title: Inventory Management Specialist Office: AMSTA-LCG-LC Date: 1 Aug 2011

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Signature: Jim Cole /s/ Name: James M. Cole Title: Team Leader Office: AMSTA- LCG-LC Date: 1 Aug. 2011

PART IV - Contracting Information

1. Description of Action - The required item will be solicited on Request For Proposals SPRDL1-11-R-0168. It is proposed to negotiate a Firm-Fixed-Price contract with Allison Transmission for their part number 29511632. The approved source, Allison Transmission, is the sole owner of the drawings and technical rights. The Government did not buy their proprietary rights to produce a competitive TDP. Only Allison has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in the J&A.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is Terry Zielinski, OFFICE SYMBOL: ZGAA, Ext. 23168.

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine the price fair & reasonable. The appropriate Certified Cost and Pricing Data will not be required as the total value of this procurement is under the threshold of $700,000.00.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Signature: /s/ Name: Marlene J. Scheele Title: Contracting Officer Office: ZGAA Date: 3 Aug 11

PART V - Legal Concurrence

Concur: // Darin R. Morency // Date: August 2, 2011

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $650,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Pump Unit, Axial, Piston

b. NSN: 4320-01-561-8936

c. Basic Quantity: 20

d. Basic Estimated Value: $301,510.00

e. Option Percent: 100

f. Quantity with Option: 40

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Name:

Title:

Office:

Date: