JA_SPRDL1-16-R-0050_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-16-R-0050

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency Land Warren (DLA LND WRN) 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: Power Supply

b. QUANTITY: 194

OPTION QUANTITY: 0

c. NSN: 6120-01-535-5573

d. MPN: 12467385-2:19207

e. VEHICLE SYSTEM: JW - TANK, ABRAMS,M1A2 FAMILY OF

VEHICLES(FOV)

f. ESTIMATED UNIT PRICE: $ 6,269.16

g. ESTIMATED VALUE: $ 1,216,217.04

ESTIMATED OPTION VALUE: $ 0.00

ESTIMATED TOTAL VALUE: $ 1,216,217.04

h. PRON NUMBER: EH55E224EH

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 Life Cycle Management Command (TACOM LCMC) requires the acquisition of the above item. The only approved source for the above item is:

a. Contractor(s) Name: Rantec Power Systems Inc.

Cage: 60132

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

a. Status of the Acquisition Data:

The customized military-grade Power Supply is a vital part of the Improved Gunner’s Control Display Panel (P/N: 12467510-2) which is used on the M1A2 Abrams Tank Continuous Electronic Enhancement Program (CEEP) & System Enhancement Package (SEP).

The technical data package for the customized Power Supply is inadequate for competitive procurement because it is a source controlled top drawing with only one approved source of supply, and the drawing does not disclose all the information necessary to produce the Power Supply. The unique military grade Power Supply was developed, designed, built, and tested at Rantec Power Systems Inc.’s expense. This item is proprietary to Rantec Power Systems Inc, who is the original equipment manufacturer.

Therefore, the Government does not own a competitive TDP for this item, and no other contractor can viably provide this item to be used on the M1A2 Abrams Tank Continuous Electronic Enhancement Program (CEEP) & System Enhancement Package Version 2 (SEP v2). Based on the above information, the above listed source is the only existing source of supply available to ensure supportability of fielded M1A2 Abrams Tanks.

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. In addition to not having the information necessary to develop a competitive TDP, ARDEC-RI engineer estimates that the cost to develop a competitive package for this item through reverse engineering, qualification procedures and engineering analysis are listed below:.

PRON EH55E224EH– Power Supply- NSN: 6120-01-535-5573

Estimated costs associated with reverse engineering: $250,000 Estimated time associated with reverse engineering: 12 months

Estimated costs associated with the development of qualification procedures: $400,000 Estimated time associated with the development of qualification procedures: 12 months

Estimated costs associated with conducting engineering analysis: $475,000 Estimated time associated with conducting engineering analysis: 12 months

The aggregate cost of reverse engineering; writing the qualification procedures and conducting an engineering analysis would be at least one million one hundred twenty-five thousand dollars ($1,125,000) which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for reverse engineering Power Supply;

the preparation of qualification procedures and for the engineering analysis to determine if a new source met the qualification procedures is at least thirty-six months. A delay of this scale is unacceptable in fulfilling the army’s requirements and would have significant detrimental impact on the army’s ability to support the soldier in the field;

Army readiness; and deadline the M1A2 Abrams Tank Continuous Electronic Enhancement Program (CEEP) & System Enhancement Package (SEP) which would cease to function.

Note: This will not be a government funded reverse engineering effort because the Rantec Power Systems Inc has more than enough customized military grade Power Supplies available. Thus, if any contractor decides to take on an effort to reverse engineer and/or procure proprietary data, the new contractor will be solely responsible for taking on all of the cost listed in the above paragraphs.

c. Demonstration of Approved Contractor's Unique Qualifications:

Rantec Power Systems Inc has the requisite technical and engineering expertise to perform all efforts required to provide this Power Supply. Rantec Power Systems Inc has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item.

Rantec Power Systems Inc 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, and deliver this item.

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.

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 to produce a competitive TDP.

Any new vendor who decides to pursue the qualification process will be directed to the Competition Advocate’s Source Approval Program.

The Competition Management Office (CMP) will encourage interested parties to submit a Source Approval Request (SAR) for this time for future buys.

This procurement action was synopsized in FedBizOpps as required by FAR 5.201(c), to improve access to acquisition information and to enhance competition by identifying subcontracting opportunities.

There has not been any expressed interest by any known contractors to become a qualified source to produce this Power Supply.

e. Market Research:

On November 22, 2017 the ARDEC-Rock Island CMO/Engineer conducted computer based market research for the customized military grade Power Supply. The results of this search did not yield new production sources for this item. There are no commercial equivalents or non-developmental items available to meet the Government's requirements or that will satisfy the Government need without qualification testing. There are also no other commercial or non-developmental items available to meet the Government’s need or that could be economically modified to meet the Government’s need that can operate on the M1A2 Abrams Tank Continuous Electronic Enhancement Program (CEEP) & System Enhancement Package (SEP).

3. The POC for this action is , office symbol:

RDAR-EIS-CL, e-mail address:

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

Name:

Title: APO, Abrams Matrix Support ARDEC-RI

Date: 22 Nov 2017

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH55E224EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: /s/ Date: Nov 27, 2017

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

Name:

Title: C, Abrams Group Signature: //s// Date: 19 Dec 17

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-16-R-0050. It is proposed to negotiate a Firm-Fixed-Price contract with Rantec Power Systems Inc. (CAGE Code 60132) for part number 12467385-2. The unique military grade Power Supply was developed, designed, built, and tested at Rantec Power Systems Inc.’s expense. This item is proprietary to Rantec Power Systems Inc., who is the actual (or original equipment) manufacturer. The Government does not own a competitive TDP for this item, and no other contractor can viably provide this item to be used on the M1A2 ABRAMS TANK Continuous Electronic Enhancement Program (CEEP) & System Enhancement Package Version 2 (SEP v2).

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. Sources Sought posted to FBO 01/12/18.

4. The POC for this action is -

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on FAR 15.403-1(c)(1)(iii). Certified cost or pricing data will be required, as this procurement is anticipated to be more than the $750,000 threshold stated in FAR 15.403-4. 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. The previous J&A (SPRDL1-13-R-0065) is located both below and in the Paperless Contracting File (PCF).

Name:

Title: Contracting Officer Signature: /S/ Date: 12/19/2017

PART V - Legal Concurrence

Concur: // // Date: 12/26/2017

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:

a. Noun: Power Supply

b. NSN: 6120-01-535-5573

c. Basic Quantity: 194

d. Basic Estimated Value: $1,216,217.04

e. Option Percent: 0%

f. Quantity with Option: n/a

g. Estimated Value with 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 provision that the property herein described has otherwise been authorized for acquisition.