Redacted_JA_SPRDL1-15-R-0196.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-15-R-0196

SPRDL1-15-R-0196

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency – 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:

a. NOUN: Shipping and Storage EH55E070EH and EH55E049EH b1. QUANTITY: 42 EH55E070EH

OPTION QUANTITY: 42

B2. QUANTITY: 27 EH55E049EH

OPTION QUANTITY: 27

c1. NSN: 8145-01-534-7704 EH55E070EH c2. NSN: 8145-01-556-9020 EH55E049EH d1. MPN: 16776-601 EH55E070EH d2. MPN: 17193-101 EH55E049EH e1. VEHICLE SYSTEM: JW - Tank, Abrams, M1A2 Family of Vehicles

EH55E070EH

e2. VEHICLE SYSTEM: JE - Tank, M1 Abrams Family of Vehicles

EH55E049EH

f1. ESTIMATED UNIT PRICE: $1,686.17 EH55E070EH f2. ESTIMATED UNIT PRICE: $ 985.13 EH55E049EH

g. ESTIMATED VALUE: $ 97,417.65

ESTIMATED OPTION VALUE: $ 97,417.65

ESTIMATED TOTAL VALUE: $194,835.30 EH55E070EH and

EH55E049EH

h. PRON NUMBER: EH55E070EH AND EH55E049EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

k. ACQUISITION METHOD CODE (AMC): 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

l. ACQUISITION METHOD SUFFIX CODE (AMSC): B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

PART II - Technical Information and Certification

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

PELICAN/HARDIGG INDUSTRIES, INC

147 N MN ST.

SOUTH DEERFIELD, MA 01337-1026

CAGE CODE: 11214

Part Numbers: 16776-601 & 17192-101

2. Reasons the items are not suitable for full and open competition:

a. Status of the Acquisition Data:

The shipping and storage containers, 16776-601 (EH55E070EH) & 17192-101 (EH55E049EH), are used for shipping and storage of improved commander’s display unit and turret network interconnecting box of the M1 Abrams Family of Vehicles. The Government does not have fully detailed level III TDP’s or performance specification that are sufficient to allow full and open competition of these items.

The shipping and storage containers should be procured from Pelican/Hardigg Industries as the current product drawing/TDP does not fully disclose complete technical requirements/information to be used in a full and open competition. In order to develop a competitive TDP, considerable engineering efforts would have to be expended to develop a comprehensive performance specification and/or conduct reverse engineering of the shipping and storage cases. The shipping and storage containers were developed, designed, built, tested, and obtained the Government’s approval at Pelican/Hardigg Industries’s expense. Therefore, the technical data required to manufacture these containers is considered proprietary to Pelican/Hardigg Industries.

Currently, Pelican/Hardigg Industries is the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability and quality testing capabilities necessary to produce these containers.

The lack of fully competitive data makes it necessary to procure the items on a non-competitive basis from Pelican/Hardigg Industries.

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.

ARDEC-RI engineering estimates that the cost to develop a competitive package for this item through reverse engineering could run as high as $500,000 and require an estimated delay of at least 24 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Since there are no procedures in place to determine whether other sources are qualified to meet the government’s requirements, it would then take an additional $250,000 and take about 24 months for the U.S.

Army/ARDEC engineers to develop government’s requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost $250,000 and take at least 12 months to conduct the actual Engineering analysis to determine if a new source has become approved in accordance with the newly competitive TDP.

The overall costs associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements, and engineering analysis would be at least $1,000,000.00 dollars which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for the development of a competitive TDP is at least 60 months. A delay of this scale is not considered acceptable in fulfilling the army’s requirements and would have significant detrimental impact on the army’s ability to support the soldier in the field and will jeopardize the availability and supportability of Abrams FOV.

c. Demonstration of Approved Contractor's Unique Qualifications:

Pelican/Hardigg Industries has the requisite technical and engineering expertise to perform all efforts required to provide the elevation servomechanism. Pelican/Hardigg Industries has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce these shipping and storage containers.

Pelican/Hardigg Industries is currently the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability, and quality testing capabilities necessary to produce, and deliver these items. In the absence of a competitive TDP, an award to any sources other than Pelican/Hardigg Industries is not feasible at this time.

d. Efforts to Qualify Additional Suppliers for future procurements:

No contractors are in the process of being qualified at this time nor will be prior to the contract award due to funding constraints. The funding associated with qualifying a new source is not expected to be recovered through subsequent competition.

Qualifying a new source would require a substantial expenditure of the limited funding that has been provided to support the Abrams FOV. New sources would require the development of extensive testing and processing procedures. The additional time required for these actions would prohibit delivery of the items in a time frame that would meet the Government’s requirements.

e. Market Research:

In March 2015, the assigned engineer, based on an inadequate TDP and on his overall experience and knowledge of Abrams FOV in general, has made the determination that no valid alternate items can be substituted at this time.

These items do not appear on the TACOM LCMC Competition Advocate Shopping List (CASL) updated 31 Jul 2014 or on the Advanced Procurement Planning List (APPL) updated 1 Jul 2014. A Sources Sought Synopsis was requested on 19 Mar 2015. To date, no contractors have expressed interest in becoming qualified source(s) to produce the items. Interested suppliers may apply to the Source Approval Program through the TACOM LCMC-Warren Competition Advocate’s Office.

3. The POC for this action is Dongil Juhn, General Engineer, Ext. 0242.

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

Name: Tom Wilson Title: APO, Abrams Matrix Support ARDEC-RI Signature://s//Tom Wilson Office: RDAR-EIS-CL Date: 21 April 2015

PART III - Requirements Certification – PRON EH55E070EH

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH55E070EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: Laurie Freking Date: 4/22/15

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

Name: Lawrence D. Woods Title: Team Leader, M1A2 SEP Turret & Fire Control Signature: //s// Lawrence D. Woods Date: 22APR15

Requirements Certification – PRON EH55E049EH

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH55E049EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: Michael Apel Date: 01MAY15

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

Name: Nancy Sancen Title: Team Leader, M1A1 Supply Team Signature: //s// Nancy Sancen Date: 1 May 15

PART IV - Contracting Information

1. Description of Action: The required items will be solicited on Request For Proposals SPRDL1-15-R-0196. It is proposed to negotiate a Firm-Fixed-Price contract with Pelican/Hardigg Industries for their part numbers 16776-601 & 17192-101. This two part numbers have been designated sole source to Pelican/Hardigg Industries.

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 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 Stephen R Foster Jr, OFFICE SYMBOL: DSCC-ZGAAC, 586-282-3181.

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The price provided by the vendor will be compared to previous purchases of these items or like items.

There will be a request other than certified cost or pricing data to further analyze the price provided by the contractor to determine price as fair and reasonable.

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 Title: Contracting Officer Signature: /s/ Date: 7 May 15

PART V - Legal Concurrence

Concur: // Darin R. Morency // Date: 05/08/15

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 Percent:

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.

Signature:

Date: