Redacted_JA_SPRDL115R0411.pdf

SPRDL1-15-R-0411

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency – Warren (DLA – 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: HEAD, HYDRAULIC MOTOR-PUMP

b. QUANTITY: 78

OPTION QUANTITY: 78

TOTAL QUANTITY; 156

c. NSN: 3040007223536

d. M P N: HD8821A

e. VEHICLE SYSTEM: M88

f. ESTIMATED UNIT PRICE: $ 2,500.000

g. ESTIMATED VALUE: $ 195,000.000

ESTIMATED OPTION VALUE: $ 195,000.000

ESTIMATED TOTAL VALUE: $390,000.000

h. PRON NUMBER: EH56E269EH AMD: 01

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

PART II - Technical Information and Certification

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

a. Contractor(s) Name: AMBAC INTERNATIONAL CORPORATION Cage: 01843

Part Number: HD410304 or HD8821A

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

a. Status of the Acquisition Data:

The above identified sources developed, tested, and obtained Government approval of this item for application to the M88 at their cost. The Government did not fund their efforts in developing and testing this item. Additionally, the Government did not fund them to prepare a fully detailed TDP after approval. As such, AMBAC INTERNATIONAL CORPORATION is the sole source owner of the drawing package and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

The Government does not own patent or proprietary rights to the TDP or 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) 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 previous experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $2.0M and could require an estimated delay of at least 42 months to include fabrication and testing of the prototype hardware and releasing a validated TDP.

Added to these costs and delays would be the costs and time involved to test and qualify additional sources delay of 12-18 months. Due to lack of funding urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts 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.

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) The approved source, AMBAC INTERNATIONAL CORPORATION, is the sole owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP.

(2) Only AMBAC INTERNATIONAL CORPORATION has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J&A.

(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.

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 source 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. Additionally qualifying additional sources would affect spare parts procurements for the kits as there would be multiple spare parts list depending on what kit was on the vehicle which would require updates to tech manuals and additional cost and time to support multiple configurations of these kits.

(3) Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

(4) Any potential supplier seeking qualification can do so through the Source Approval Program with the Competition Management Office.

e. Market Research:

(1) On 26 August 2015, A Sources Sought Synopsis has been requested. To date, no additional contractors have expressed an interest in this item.

(2) Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office. To date, no additional contractors have expressed an interest in this item.

(3) The POC for this action is ______________, Mechanical Engineer, Ext

(4)

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

Name: ______________ Title: Mechanical Engineer Signature: //Signed// Date: June 24, 2015

Name: ______________ Title: Team Leader Signature: //Signed// Date: June 26, 2015

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH56E269EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: ______________ Date: 30 June 2015

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

Name: ______________ Title: Team Leader, M88A1 Signature: //s// Date: 30 June 2015

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-15-R-0411. It is proposed to negotiate a Firm-Fixed-Price contract with AMBAC INTERNATIONAL CORPORATION for their part number HD410304 or

HD8821A.

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 ______________, OFFICE SYMBOL: ZGAAB, Ext.

5. Fair and Reasonable Determination I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on FAR 15.404. 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.

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

Name: Karen Kaczorowski Title: Contracting Officer Signature: //s// Date: 27 Aug 2015

PART V - Legal Concurrence

Concur: // ______________// Date: August 28, 2015