Redacted_JA_SPRDL1-14-R-0203.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-14-R-0203- There is no procurement history for the items being procured; therefore a previous J&A is not available

SPRDL1-14-R-0203 Page 1

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

SPRDL1-14-R-0203

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(s) Required:

1 . PRON EH45E152EH

EH45E153EH

2 . NOUN: CPU, CCA (P1)

POWER SUPPLY, CCA (P2)

3 . NSN: 5998-01-590-7856 (P1)

6120-01-590-7987 (P2)

4 . MFG P/N: 4246220-5 (P1)

4246460-2 (P2)

5 . VEHICLE SYSTEM: M1 FOV

6 . ESTIMATED UNIT PRICE: $ 5,414.00 (P1)

$ 1,747.00(P2)

7 a. BASIC QUANTITY: 93 (P1) 124 (P2)

b. OPTION QUANTITY: 93(P1) 124(P2)

SPRDL1-14-R-0203 Page 2

PART I - Description of Item Required: (Continued from previous page)

7 c. TOTAL QUANTITY: 186 (P1)

248 (P2)

8 a. ESTIMATED BASIC VALUE: $ 216,628.00 (P1) $ 503,502.00(P2)

b. ESTIMATED OPTION VALUE: $ 216,628.00(P1) $ 503,502.00(P2)

c. ESTIMATED TOTAL VALUE: $ 720,130.00 (P1) $ 720,130.00 (P2)

d. ESTIMATED GRAND TOTAL VALUE: $ 1,440,260.00

(ALL PRONS)

9 . TYPE OF FUNDS: AWCF

10 . TYPE OF CONTRACT: Firm Fixed Price

11. AMC & AMSC: 4H. Definition of AMC 4: Acquire, for the first time, directly from the actual manufacturer. Definition of AMSC H: The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, 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):

SPRDL1-14-R-0203 Page 3

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

CONTRACTOR(S) NAME: HONEYWELL INTERNATIONAL INC

CAGE #: 64547

MFG P/N(S): 4246220-5, 4246460-2

MIL P/N (S): N/A

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 TDP. The technical data required to manufacture these items CPU, CCA (P1), POWER SUPPLY, CCA (P2) (Manufacturer part numbers 4246220-4, 4246460-2) belongs to HONEYWELL INTERNATIONAL INC. The above identified approved source developed, tested and obtained the Government's approval of these items at their own cost. The Government did not fund their efforts in developing and testing these items.

Additionally, the Government did not fund them to prepare fully detailed TDPs after approval. As such, HONEYWELL INTERNATIONAL INC. 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. TARDEC estimates the cost to develop a competitive package for this item through reverse engineering to be at least $250K with a delay of approximately twelve months. This includes fabrication and testing of prototype hardware and releasing a validated TDP.

Added to these costs and delays would be the cost and time required to test and qualify another source. Qualification and durability testing required for this item manufactured by new source(s) require development and building of test equipment at an estimated cost of an additional $250K for an estimated additional 6-12 months. Cost of manufacturing 3 prototypes at 100K each based on current part and labor costs will be an additional 300K. Therefore, total cost to the government is estimated at approximately 800K. Testing may also surface latent defects that could adversely impact the readiness of the equipment and Operational and Support (O & S) costs. The estimates provided are based on engineering judgment and experience. An award to any other source would probably cause a substantial duplication of cost to the government not expected to be recovered through competition and would cause unacceptable delays in

SPRDL1-14-R-0203 Page 4 fulfilling the agency’s requirements. Qualifying a new source would require a substantial expenditure. A new source would require tooling adjustment and

PART II - Technical Information and Certification (Continued from previous page) 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. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts at this time. These stated costs would be very difficult to recoup through subsequent competition and the consequential time delay for this effort is unacceptable to meet the Governments requirements.

c. Demonstration of Approved Contractor's Unique Qualifications:

The approved source, i.e., HONEYWELL INTERNATIONAL INC. 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

INTERNATIONAL INC. has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J & A. HONEYWELL INTERNATIONAL INC. 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.

SPRDL1-14-R-0203 Page 5

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

e. Market Research:

on The Advanced Procurement Planning List (APPL)

(last updated on 05 December 2013) on The Competition Advocate’s Shopping List (CASL)

(last updated on 05 December 2013)

Contractors interested in competing on any item listed are instructed to contact the Competition Advocate’s Office. No other identified source has 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 30 JULY 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 these items.

On 23 May 2016, a sources sought notice was requested. To date, no additional contractors have expressed an interest in these items.

3. POC for this action is

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

The items CPU, CCA (P1), POWER SUPPLY, CCA (P2) do appear do not X

The items CPU, CCA (P1), POWER SUPPLY, CCA (P2) do X appear do not

SPRDL1-14-R-0203 Page 6

Name: Date: 30 JULY 2014

Title: Signature: //Signed//

Name: Date: 30 JULY 2014

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRONS EH45E152EH, EH45E153EH, as to required quantities and delivery schedules are accurate and complete.

Name: Date: 13 August 2014

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

Name: Date: 13 August 2014

Name: Date: 13 Aug 2014

Title: Signature: //Signed//

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals

SPRDL1-14-R-0203. Negotiation of a Firm Fixed Price contract with HONEYWELL INTERNATIONAL INC. for their part numbers, 4246220-4 (P1), 4246460-2 (P2), is anticipated. HONEYWELL INTERNATIONAL INC. is the sole owner of the drawings

SPRDL1-14-R-0203 Page 7 and technical data rights; the Government does not own proprietary rights to 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 these items. 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, Ext. ________________________________________________________________________________ _______________________________________________

PART IV - Contracting Information (Continued from previous page)

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 not 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: Marlene J. Scheele Date: 17 May 16

Title: Contracting Officer Signature: /s/

PART V - Legal Concurrence:

Concur: Date: May 23, 2016 ____________________________________________________________________________________________________________ _____________________________________________________________

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. PRON EH45E152EH

EH45E153EH

2. NOUN: CPU, CCA (P1)

POWER SUPPLY, CCA (P2)

3. NSN: 5998-01-590-7856 (P1)

6120-01-590-7987 (P2)

4. MFG P/N: 4246220-5 (P1)

4246460-2 (P2)

5. VEHICLE SYSTEM: M1 FOV

6. ESTIMATED UNIT PRICE: $ 5,414.00 (P1)

$ 1,747.00(P2)

7a. BASIC QUANTITY: 93 (P1) 124 (P2)

b. OPTION QUANTITY: 93(P1) 124(P2)

7c. TOTAL QUANTITY: 186 (P1) 248 (P2)

8a. ESTIMATED BASIC VALUE: $ 216,628.00 (P1) $ 503,502.00(P2)

b. ESTIMATED OPTION VALUE: $ 216,628.00(P1) $ 503,502.00(P2)

c. ESTIMATED TOTAL VALUE: $ 720,130.00 (P1) $ 720,130.00 (P2)

d. ESTIMATED GRAND TOTAL VALUE: $ 1,440,260.00

(ALL PRONS)

9. TYPE OF FUNDS: AWCF

10 . TYPE OF CONTRACT: Firm Fixed Price

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: Date: DD MMMM YYYY

COUTURE.MARY.E.12302

53613

Digitally signed by COUTURE.MARY.E.1230253613 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=COUTURE.MARY.E.1230253613 Date: 2016.05.26 14:47:37 -04'00'