Redacted_JA-SPRDL1-16-R-0350.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-16-R-0350

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

SPRDL1 16 R 0350

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: Inertial Navigation Unit with Case

b. LTC Minimum:

Maximum:

c. NSN: 6605 01 578 7163

d. MPN: 13023681

e. VEHICLE SYSTEM: GK - Howitzer, 155MM, M777A2

f. ESTIMATED UNIT PRICE: $

g. ESTIMATED MIN VALUE: $

ESTIMATED MAX VALUE: $

h. PRON NUMBER: EH62R679EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

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

l. 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 TACOM LCMC requires the acquisition of the above item. The only approved source(s) for the above item is (are):

a. Contractor(s) Name: Honeywell International Cage: 0BFA5 Part Number: 13023681

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

a. Status of the Acquisition Data:

USG does not own the TDP for the Inertial Navigation Unit. Honeywell International is unwilling to sell the TDP. The item described above is an item used in support of the Howitzer, 155MM, M777A2. Honeywell International is the Original Equipment Manufacturer (OEM) for the Inertial Navigation Unit used in the Howitzer, 155MM, M777A2. Honeywell International is the approved manufacturing source for the Inertial Navigation Unit. The Government did not fund Honeywell International in the development or testing of the Inertial Navigation Unit currently installed on the Howitzer, 155MM, M777A2. The Government did not fund or own any data, the technical data package (TDP), or patent rights for the Honeywell International Inertial Navigation Unit. Therefore, the Government does not have the patent rights to their data that would be required to produce a competitive TDP. Honeywell International are the sole owners of the technical data rights for the Inertial Navigation Unit.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

There are currently no plans to acquire a competitive TDP due to lack of funds that would be needed to acquire the data in order to support a competitive acquisition. In addition, it is unlikely costs could be recovered through subsequent competition due to the low ordering quantity requirement for this item. The Government does not possess the TDP for the Inertial Navigation Unit. The engineering costs are associated with development of qualification procedures as required by the FAR to compete this item is estimated to be $10,000. The estimated schedule associated with the development of the required qualification procedures noted above is 12 months. The following costs are associated with conducting the actual Engineering analysis (to include the cost for any additional test equipment or fixtures, higher level assemblies and or end item systems, required to test this part. Any costs for test facilities (as applicable) to determine if a new source has become qualified in accordance with the referenced TDP for an estimated total of $6,000,000. The estimated schedule is based on the number of weeks/months that will be required to actually run the analysis (this includes conducting the actual testing, reviewing the engineering data and preparing a technical report) to determine whether or not a new source has successfully met the qualification process noted above and can be added to the referenced drawings and is estimated at 24 months.

c. Demonstration of Approved Contractor's Unique Qualifications:

The Inertial Navigation Unit manufactured by Honeywell International has the proper form, fit, and function needed for the Howitzer, 155MM, M777A2. Honeywell International has demonstrated the unique and proven manufacturing capabilities to maintain the processing control required to repetitively produce the Inertial Navigation Unit. They also did the tests to qualify their product. If another possible source of supply for this item were identified, qualification testing would be required to prove out the item.

d. Efforts to Qualify Additional Suppliers for future procurements:

As addressed above Honeywell International owns all technical data rights for this component and is unwilling to sell the technical data to the Government. Reverse Engineering is the only recourse the US Government could entertain.

No efforts to obtain competition for this acquisition will be taken for the reasons stated above. Complete Level III TDPs, suitable for competition, are not available for purchase.

Further, there is no funding to qualify Inertial Navigation Unit manufacturers or service providers for this effort.

There are no vendors currently in the process of being qualified at this time. There are no current or planned efforts to qualify any additional sources for the reasons listed above, including the fact that there is no funding for this effort. The Government would not be able to conduct reverse engineering efforts at this time. The Government would not be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by posting to the TACOM Procnet website, and by synopsis through FedBizOpps. Interested sources can obtain approval via the Source Approval Program with the TACOM Competition Management Office (CMO). A Sources Sought notice was posted to FedBizOpps on 28 June 2016.

e. Market Research:

There is no drop-in replacement for the Inertial Navigation Unit. Extensive analysis would need to be done in order to ensure that the system will properly meet performance specifications.

Interested contractors can contact the CMO for assistance at TACOM-Warren Business Opportunities website under the Future and Potential Buys Link. To date, no additional contractors have expressed an interest in these items.

3. The POC for this action is .

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

Name:

Title:

Signature:

Date:

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH62R679EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date:

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

Name:

Title:

Signature:

Date:

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1

16 R 0350. It is proposed to negotiate a Firm-Fixed-Price contract with Honeywell International for their part number 13023681.

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. Certified cost and pricing data will be required for this procurement to support price reasonableness in accordance with FAR 15.400.

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: 21 Sep 2016

PART V - Legal Concurrence

Concur:

Date:

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: Inertial Navigation Unit with Case

b. NSN: 6605 01 578 7163

c. LTC MIN- /MAX-

d. LTC MIN Est Value: $