JA_SPRDL1-17-R-0014_Redacted.pdf

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

SPRDL1-17-R-0014

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: Skate Mount Assembly

b. QUANTITY: 25

OPTION QUANTITY: 25

c. NSN: 2350-01-612-9056

d. MPN: 12522561 Source controlled drawings 12522561 & 12522562.

e. VEHICLE SYSTEM: M1A2 Unique Abrams Tank

f. ESTIMATED UNIT PRICE:$

g. ESTIMATED VALUE: $

ESTIMATED OPTION VALUE: $

ESTIMATED TOTAL VALUE: $

h. PRON NUMBER: EH-66E037-EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

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):

Contractor(s) Name: MERRILL AVIATION & DEFENSE Cage: 5SGQ6

Part Number: 12522561

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

a. Status of the Acquisition Data:

Skate Mount Assembly, 125225681, is an integral part of the M1 Abrams Family of Vehicles (FOV). The Government does not have fully detailed level III TDP or performance specification that is sufficient to allow full and open competition of this item.

The skate mount assembly should be procured from MERRILL AVIATION & DEFENSE 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 skate mount assembly. MERRILL AVIATION & DEFENSE 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 this assembly per the current TDP.

The lack of data makes it necessary to procure this item on a non-competitive basis from MERRILL AVIATION & DEFENSE.

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 $150,000 and take about 12 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 $100,000 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. This would include the cost for any additional test equipment or fixtures, higher level assemblies and or end item systems, required to test this part and any costs for test facilities as applicable.

The overall costs associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements, and engineering analysis would be at least $750,000.00 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 48 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:

MERRILL AVIATION & DEFENSE has the requisite technical and engineering expertise to perform all efforts required to provide the skate mount assembly. MERRILL AVIATION & DEFENSE has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this assembly.

MERRILL AVIATION & DEFENSE 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 this item. An award to any sources other than MERRILL AVIATION & DEFENSE would cause a substantial duplication of cost to the Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling the agency’s requirements.

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:

ARDEC-Rock Island engineer has conducted computer based market research on the mount assembly. The results of this search did not yield any information about new production sources for this item. The skate mount assembly is a unique military item.

There are 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 M1A1/M1A2 ABRAMS FOV.

To date, no additional contractors have expressed an interest in this item.

3. The POC for this action is General Engineer, .

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

Name:

Title:

Signature:

Office:

Date: 12 October 2016

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH66E037EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date: 10/17/2016

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

Name:

Title:

Signature:

Date: 10/17/2016

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-17-R-0014. It is proposed to negotiate a Firm-Fixed-Price contract with Merrill Aviation & Defense for their part number 12522561. The Government does not have fully detailed level III TDP or a performance specification that is sufficient to allow for full and open competition of this item.

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 to the Government 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 & pricing data will NOT be required per FAR 15.403-1(b)3, Commercial Item. Other than cost or pricing data will be obtained to support a determination of price reasonableness.

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

Name: Morris Belleville Title: Contracting Officer Signature: Morris A. Belleville /S/ Date: 10/17/2016

PART V - Legal Concurrence

Concur:

Date: 10/18/16