J A-EH66E916EH-SPRDL116R0190-CoverHydraulicPump-9May16_Redacted.pdf

SPRDL1 16 R 0190

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

SPRDL1-16-R-0190

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: COVER, HYDRAULIC, PUMP-MOTOR

b. QUANTITY: 188

OPTION QUANTITY: 188

c. NSN: 4320-01-119-2649

d. PN: 428376

e. VEHICLE SYSTEM: M1 Series

f. ESTIMATED UNIT PRICE: $653.20

g. ESTIMATED VALUE: $122,801.60

ESTIMATED OPTION VALUE: $122,801.60

ESTIMATED TOTAL VALUE: $245,603.20

h. PRON NUMBER: EH66E916EH

i. TYPE OF FUNDS: AWCF

i. TYPE OF CONTRACT: Firm Fixed Price

j. AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

k. 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 which is a major component of the Axial Pistons Pump

Assembly. The only approved sources for the COVER, HYDRAULIC, PUMP-MOTOR, P/N 428376 is:

a) EATON AEROSPACE LLC, VICKERS FLUID SYSTEMS Cage 62983 P/N 428376

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

a. Status of the Technical Data Package:

TACOM – Warren does not possess the detailed drawing and tech data required to manufacture P/N 428376. Additionally the assembly drawing 19207-12287040 that this component belongs to is not fully defined and is marked as “Source Control Drawing”.

These drawings were not fully defined for the following reasons:

(1) The above identified approved source has developed, tested, and obtained the Government’s approval of this item for application to the M1 series vehicle’s hydraulic installations. Also, the Government did not fund them to prepare fully defined TDPs after approvals. As such, the above identified sources are the owners of their drawings and technical data rights; and the Government does not own the proprietary rights to the TDP that would be required to produce a competitive package.

(2) The Government does not own the patent rights to their data that would be required to produce a competitive package.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement: It is not recommended that the government conduct a reverse engineering program for this item. The critical function it performs mandates that it function properly. Reverse engineering this item would not be in the best interest of the Government due to the prohibitive cost. The engineering effort required to generate a Level III TDP, validate and maintain it, as well as perform in-vehicle testing (durability, interchangeability, performance) would cause the government to expend significant effort and funding which would not recoverable due to the low-volume in which these parts are procured .

There are no current plans to acquire a competitive TDP, because funds are not available to acquire the data necessary to support a competitive procurement and the Government does not own the patent rights to the data that would be required to produce a competitive package. A significant amount of time and funding would be necessary to reverse engineer, fabricate and test prototypes, and release the design. This delay would severely impact the availability of the COVER, HYDRAULIC, PUMP- MOTOR components that are critical to the readiness of the Abrams Tank.

Through our previous experience, we estimate that the cost to develop a competitive package through reverse engineering could run anywhere from $800-900K and could require an estimated delay of at least 12-18 months to include fabrication and testing of prototype hardware, and releasing a validated TDP. Added to this would be the cost and time involved to test and to qualify another source. Qualification testing, to include the COVER, HYDRAULIC, PUMP-MOTOR installed as part of the hydraulic system on the vehicle for durability testing, would be required to prove out this item manufactured by a new source at an estimated cost of $800K. Due to lack of funding and the urgency of the item requirement, the Government will not be able to conduct a reverse engineering effort at this time.

c. Demonstration of Approved Contractors’ Unique Qualifications:

(1) The above identified approved source is the sole owner of the drawings and technical data rights. The Government did not buy the proprietary rights to produce a competitive TDP.

(2) Only the above identified approved source has the requisite technical and engineering expertise to perform all efforts required to provide the item identified in this J&A. No other vendors other than the above identified approved sources has developed this item per the requirements stated on drawings 12287040 and 12285278, and has successfully integrated the COVER, HYDRAULIC, PUMP-MOTOR with the Hydraulic Installations for all M1A1 and M1A2 vehicles after passing all pre-qualification requirements. Hence, they are the only ones noted on the drawings as “Approved Sources of Supply”.

(3) The approved sources identified above had demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing controls required to repetitively produce this item. The use of incorrect manufacturing/process techniques during fabrication of this COVER, HYDRAULIC, PUMP-MOTOR would result in a malfunction of this item for what it was designed for, i.e.

provides hydraulic power for operation of the gun/turret drive system. A malfunction of this item will cause extensive and extremely costly damage to the M1 vehicle system.

(4) This item is a major component of the Abrams Main Battle Tank System. A malfunction or failure of this component will lead to catastrophic and permanent damage to the highly expensive combat system severely impacting the mission of the Army’s using unit. This kind of condition would force the Army unit to deadline the vehicle until the damaged hydraulic pump and the malfunction is repaired or replaced.

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 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.

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

(4) Any contractors interested can seek approval through the Source

Approval Program with the Competition Advocate.

e. Market Survey:

Market research for this item " COVER, HYDRAULIC, PUMP-MOTOR”, P/N 428376 was conducted on 21 January 2016. Vendors interested in competing on any items listed are instructed to contact the Competition Advocate's Office. A “Sources Sought Synopsis" was issued in FBO by

4. Technical Certification:

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

Name:

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH66E916EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

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

Name:

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1 16 R 0190. It is proposed to negotiate a Firm-Fixed-Price contract with Eaton Aerospace, LLC for their part number 428376. The TDP and its proprietary rights are not owned by the Government and the data required to produce a competitive TDP is not currently available.

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 .

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.

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: 9 May 2016

PART V - Legal Concurrence

Concur: