JA_SPRDL1-14-R-0159_REDACTED.pdf

CMO Control Number: [Completed by Comp. Mgt. Office]

SPRDL114R0159

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

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:

1. NOUN GENERATOR, ENGINE AC KIT

2. NSN: 2920-01-305-8419

3. MFG P/N: 30B95-77-B (major subcomponent above kit)

4. VEHICLE SYSTEM: M1 FOV

5. ESTIMATED UNIT PRICE: $ 21,310.00

6a.BASIC QUANTITY: 327

b. OPTION QUANTITY: 327

c. TOTAL QUANTITY: 654

7a.ESTIMATED BASIC VALUE: $ 6,968,370.00 b.ESTIMATED OPTION VALUE: $ 6,968,370.00

c. ESTIMATED TOTAL VALUE: $ 13,936,740.00

8. PRON NUMBER: EH45E092EH

9. TYPE OF FUNDS: AWCF

10. TYPE OF CONTRACT: Firm Fixed Price

AMC (5): Acquire directly from a sole source contractor which is not the actual manufacturer.

AMSC (C) : This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

PART II - Technical Information and Certification

1. The US Army Tank-automotive and Armaments Command requires the acquisition of the above item. The only approved source(s) for the above item is (are):

CONTRACTOR(S) NAME: HONEYWELL ENGINES AND SYSTEMS

CAGE #: 64547

MFG P/N: 30B95-77-B

MIL P/N: 12273135-2

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

a. Status of the Acquisition Data:

The Government does not own proprietary rights to the data that would be required to produce a competitive Technical Data Package (TDP). The technical data required to manufacture this part belongs to HONEYWELL ENGINES AND SYSTEMS. The above identified approved source developed, tested and obtained the Government's approval of this item for the GENERATOR, ENGINE AC (Manufacturer part number 30B95-77-B) at their own cost. 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, HONEYWELL ENGINES AND SYSTEMS is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

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

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. Through our experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $250K and could require an estimated delay of at least twelve 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 new source(s) at an estimated cost of an additional $250K and delay of 6-12 months.

Cost of manufacturing 3 prototypes at 100K each will be 300K.Therefore total cost to the government will be 800K. Testing may also surface latent defects that could adversely impact the readiness of the equipment and Operational and Support

PART II - Technical Information and Certification (Continued from previous page)

(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.

These stated costs would be very difficult to be recouped through subsequent competition and the consequential time delay for this effort is unacceptable to meet the Government's requirements.

c. Demonstration of Approved Contractor's Unique Qualifications:

The approved source, i.e., HONEYWELL ENGINES AND SYSTEMS is the sole owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. Only HONEYWELL ENGINES AND SYSTEMS has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J & A. HONEYWELL ENGINES AND SYSTEMS has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. Also, the item has been proven acceptable through extensive vehicle 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 procedures. The additional time required for these actions would preclude delivery of the item in a time frame that would meet the Government’s requirements.

d. Efforts to Qualify Additional Suppliers for future procurements:

No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. 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 any funds available to conduct the extensive (costly and time consuming) qualification testing requirements.

Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item. Contractors interested in producing this item can seek approval through the Source Approval Program with the Competition Advocates Office.

e. Market Research:

This item “GENERATOR, ENGINE AC “ does not appear on The Advanced Procurement Planning List (APPL) and does not appear on Competition Advocate’s Shopping List (CASL) both last updated on 05 December 2013.

A sources sought synopsis has been requested. To date, no additional contractors have expressed an interest in this item.

PART II - Technical Information and Certification (Continued from previous page)

Contractors interested in competing on any item listed are instructed to contact the Competition Advocate’s Office. While other sources are available to produce similar items, none of these sources have produced this specific item for military application and none have completed the necessary testing to become a qualified source. Funding and information for this item to conduct the necessary qualification testing is not available. Market research was performed by TARDEC Engineering on 25 April 2014 by reviewing vendor catalogs and available product literature published by similar manufacturers, distributors and dealers to see if any other sources exist and to determine if commercial items or non-developmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs. Thus to date, no contractors have expressed an interest in this item.

3. POC for this action is William Levin (ext. 5638) Electrical, Electronics and Special

Equipment (EESE), Product System Support (PSS).

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

Name: William Levin Date: 25 April 2014 Title: Electrical Engineer Signature: //Signed//

Name:

Fred Krestik

Date:

25 April 2014 Title: TL, Electronic / Electrical Special Equipment Signature: //Signed//

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH45E092EH as to required quantities and delivery schedules are accurate and complete.

Name: Julie Hansen Date: 29 Apr 2014 Title: Item Manager Signature: //ss//Julie Hansen

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

Name: Blake Padilla Date: 29 APR 2014 Title: Team Leader Signature: /s/ Blake Padilla

Name: Willard A Drake Date:

5/5/14

Title: Supervisor Signature: //s//

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-14-r-0159. It is proposed to negotiate a Firm-Fixed-Price contract with HONEYWELL ENGINES AND SYSTEMS for their part number 30B95-77-B.

HONEYWELL ENGINES AND SYSTEMS is the sole owner of the drawings and technical data rights and the Government does not own proprietary rights to this item in the Technical Data Package.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source(s), every effort will be made to obtain potential sources by synopsis in Fed Biz Ops (FBO).

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 FBO synopsis, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is, Jeffrey Marotzke Ext. 586-282-3163

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Due to the value of the procurement, certified cost and pricing data is required; if necessary other than certified cost or pricing data will be used to support price reasonableness in accordance w/ FAR 15.403-3.

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

Name: Jamal M. Brooks Date: 08 Jul 2016 Title: Contracting Officer Signature: /s/

PART V - Legal Concurrence:

Concur: // Darin R. Morency // Date: 06/13/2014

PART VI – Approval Authority for Acquisitions Equal to or Greater than $700,000

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

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

1. NOUN GENERATOR, ENGINE AC

2. NSN: 2920-01-305-8419

3. MFG P/N: 30B95-77-B

4. BASIC QUANTITY: 327

5. ESTIMATED BASIC VALUE: $ 6,968,370.00

6. OPTION

IS

NOT

INCLUDED

7. QUANTITY

WITH OPTION: 654

WITHOUT OPTION: N/A

8. ESTIMATED

VALUE

WITH OPTION: $ 13,936,740.00

WITHOUT OPTION: $ N/A

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.

Digitally signed by

LEWIS.MILTON.KING.1064624357

DN: c=US, o=U.S. Government, ou=DoD, J&A _

SPRDL1-14-R-0159(s

ING.1064624357

ou=PKI, ou=DLA, cn=LEWIS.MILTON.KING.1064624357

Date: 2016.07.15 17:13:40 -04'00'

Milton K. Lewis

Acquisition Executive

Head of the Contracting Activity

DLA Land and Maritime

X

LEWIS.MILTON.K