DLA0684.pdf

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

SPRDL1-15-R-0061

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:

a. NOUN: Kit – Overhaul Center Section Assy Sustainment Parts, ANAD

b. QUANTITY: 4

OPTION QUANTITY: 0

TOTAL QUANTITY: 4

c. NSN: 2520-01-558-1841

d. MPN: 5705936

e. VEHICLE SYSTEM: M1 Series

f. Acquisition Method code: 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

g. Acquisition Method Suffix Code: 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).

h. ESTIMATED UNIT PRICE: $ 46,294.71

i. ESTIMATED VALUE: $ 185,178.84

ESTIMATED OPTION VALUE: $ 0

ESTIMATED TOTAL VALUE: $ 185,178.84

j. PRON NUMBER: EH56E011EH

k. TYPE OF FUNDS: Army Working Capital Fund (AWCF)

l. TYPE OF CONTRACT: Firm Fixed Price

PART II - Technical Information and Certification

1. The US Army TACOM Life Cycle Management Command (TACOM LCMC) requires the acquisition of the above item. The only approved source for the Hydrostatic Steer Unit (HSU) ANAD Overhaul kit is:

Allison Transmission division (ATD) CAGE: 73342 Their Part Number: 5705936

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

a. Status of the Technical Data Package:

ANAD Center Section Assembly Sustainment Parts Overhaul Kit 5705936 is a set of overhaul kits developed by Allison Transmission Division (ATD) to sustain and overhaul the X1100-3B transmission. This kit is comprised of critical Control parts, the complete Governor Assembly and the Forward Clutch Housing. ATD owns the proprietary rights to these components, and ATD has informed the Government that the corporation has no plans to sell data for the X1100-3B transmission at this time, and would not grant access to the proprietary drawings and processes under their control for these components. ATD ships the Sustainment overhaul kits to Anniston Army Depot (ANAD) where the kits will be applied by ANAD in accordance with the NMWR. ATD is the sole source producer of these Sustainment Overhaul Kits and owns the proprietary rights to the major components contained within.

b. Efforts to Develop a Competitive Package:

There are no plans to compete the requirement for these overhaul kits. ATD is the sole source producer of the Sustainment Overhaul Kits and owns the proprietary rights to two major components: the torque converter assembly and the hydrostatic pump and motor (HSU) assembly. The Center Section Sustainment Parts Kit is comprised of critical Control parts, the complete Governor Assembly and the Forward Clutch Housing required to provide proper range speed and control. ATD has informed the Government that the corporation has no plans to sell data for the X1100-3B transmission at this time.

c. Demonstration of Approved Contractor's Unique Qualifications:

It would not be feasible for any other contractor to compete for this requirement because of Allison’s expertise and extensive array of industrial plant equipment for the production of military transmissions and overhaul kits to include dedicated production lines, large machine centers of specialized tools, metrology and material laboratories. The standard production lead time for the major components of this kit is 10-12 months. Consequently a delayed award will impact the delivery and fielding of Transmissions by 10-12 months. The ripple effect of this delay is twofold: first, there will be a negative impact on readiness, and second, any delay in shipment that impacts production could possibly extend into a stoppage of work.

d. Efforts to Qualify Additional Suppliers for future procurements:

In an effort to increase competition, a Procuring Contracting Officer (PCO) letter was sent to Allison on 03 Feb 10 requesting that Allison provide an availability and cost estimate for the delivery of the X1100-3b transmission Technical Data Package (TDP).

Allison responded on 03 Jun 2010 that they have no interest in providing a competitive TDP to the Government as it would compromise their self-funded Intellectual Property (IP) by making it available to others in the industry. Because of this, efforts to obtain competition for this action will be limited to the subcontractor level. The contractor has an approved company Subcontractor Plan which is applied to this action.

e. Market Research:

Market research was conducted in October 2014 to determine if commercial items are available or could be modified to meet the Government's needs. In accordance with the tenets set forth in FAR 10.002b(2), PM Abrams engineering, logistics, production, and quality assurance subject matter experts also conduct continuous market surveillance.

This continuous review includes discussion of business opportunities with potential vendors at conferences, trade shows, and symposiums such as the Association of the United States Army (AUSA), and use of the internet search engine's to monitor tracked vehicle transmission development and production. Searches have identified contractors who manufacture alternative heavy vehicle transmissions, but it is anticipated that such contractors would require the process detailed in 5(a) requiring a minimum of 10.5 years to produce a transmission that meets the current performance specification. As such, it would not be feasible for any contractor to compete for the X1100 transmission with these current requirements decreasing and future requirements estimated at low production levels.

In October 2014 a contingent of PD MBTS subject matter experts attended the Association of the United States Army (AUSA) Annual Meeting and Exposition. During this time members of PD MBTS team spoke with Cummings International, L3 Communications along with other Defense Department combat equipment producers to determine if any other viable sources existed to produce the Abrams transmission. The PD MBTS team determined that no other transmissions existed to replicate or replace the X1100 at this time.

This item does not appear on the TACOM Warren Competition Advocate’s Shopping List (CASL) or the Advanced Procurement Planning List (APPL), both dated July 2014.

3. The POC for this action is Patrick Riley, (586) 282-6756 and Ray Womack, (586) 282-8711.

4. Technical Certification:

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

Name: Date: _____30 Jan 2015___ Title: Signature: __ __

Name: Date: ____09 Feb 2015______ Title: Signature: ___ ____

Name: Date: 19 Feb 2015 Title: Signature:

Name: Date:

Title: Signature:

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH – 56E011- EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:_____ ______ Date: __20 Feb 2015______

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

Name: __ ________ Date: ___23 Feb 2015_________

Title:___ __________ Signature: :_____//__// ______

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposal SPRDL1-15-R-0061. It is proposed to negotiate a Firm-Fixed-Price contract with Allison Transmission for their part number 5705936.

ATD owns the proprietary rights to these components, and ATD has informed the Government that the corporation has no plans to sell data for the X1100-3B transmission at this time, and would not grant access to the proprietary drawings and processes under their control for these components.

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 synopsizing this requirement in Fed Biz Ops and the Army Single Face to Industry Acquisition Business Web Site. (ASFI).

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

4. The POC for this action is .

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 this procurement, certified cost and pricing data is not required. However, other than cost or pricing data may be required to establish a fair and reasonable price.

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: ___24 Feb 15__________

Title:_Contracting Officer __________ Signature: ____/s/_______________

PART V - Legal Concurrence:

Concur _// Darin R. Morency //________ Date: __02/24/2015___________

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:

b. NSN:

c. Basic Quantity:

d. Basic Estimated Value: $

e. ____% Option is included.

f. Quantity with Option:

g. Estimated Value with Option: $

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.

DATE: ___________________ __________________________