JA_SPRDL1-17-R-0107_Redacted.pdf

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

SPRDL1-17-R-0107

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The 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: Pump, Rotary

b. MIN QUANTITY: 9

MAX QUANTITY: 153

c. NSN: 4320-01-021-3334

d. MPN: 1545567-2

e. VEHICLE SYSTEM: M88A1 & M88A2

f. ESTIMATED UNIT PRICE:

g. ESTIMATED TOTAL VALUE:

h. PRON NUMBER: EH52R099EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

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(s) for the above item are:

a. Contractor Name: Honeywell International Inc.

Cage: 99193 Part Number: 1545567-2

b. Contractor Name: Meggitt Inc.

Cage: 58163 Part Number: H107-HNJ-336

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

a. Status of the Acquisition Data:

TACOM LCMC does not have any drawings of this item in the database, P/Ns

1545567-2 and H107-HNJ-336. No TDP exists. The technical data required to manufacture this Rotary Pump belongs to Honeywell International Inc. and Meggitt Inc. The data required to produce a competitive TDP is not currently available in the Government database.

(1) The above-identified approved sources developed, tested, and obtained

Government's approval of this item for application to the M88A1 & M88A2 Engine Generator at their own cost. The government did not fund the development and testing effort of this item. Additionally, the government did not fund Honeywell International Inc. or Meggitt Inc. to prepare or deliver fully detailed TDPs after approval. As such, Honeywell International Inc. and Meggitt Inc. are the sole owners of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive

TDP.

(2) The Government does not own the patent rights to Honeywell International

Inc.’s or Meggitt Inc.’s. 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) 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. 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 $300K and could require an estimated delay of at least 12 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Added to these costs and delays would be the cost and time involved to test and qualify another source. Qualification and durability testing would be required to prove out this item manufactured by a new source(s) at an estimated cost of an additional $300K and delay of 6-12 months. To do otherwise would be a high risk as a premature failure of this item in the field could result in an extensive loss of the equipment. Testing might also result in surface latent defects that could adversely impact the readiness of the equipment and Operational and Support (O & S) costs. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering effort 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.

(3) If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least twelve months would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O&S) costs.

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) The approved sources, i.e., Honeywell International Inc. and Meggitt Inc. are the sole owners of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP.

(2) Only Honeywell International Inc. and Meggitt Inc. possess the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J & A. This Rotary Pump is a major component of the M88A1 & M88A2 Generator Assembly. The generator contains nuclear hardness critical items marked HCI. All design changes must be evaluated for nuclear hardness impacts by the engineering activity responsible for nuclear survivability prior to implementation.

(3) The approved source(s) identified above have demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repeatedly produce this item successfully. Also, the item has been proven acceptable through extensive vehicle testing. An award to any other source 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. Qualifying a new source would require a substantial expenditure. A new source would require a significant re-tooling effort and require the development of an extensive manufacturing process. The additional time required for these actions would prohibit delivery of the item in a time frame that would meet the Government’s requirements. The required item is a mission critical component, the failure of which during operation in an M88A1 & M88A2 vehicle has the potential for unacceptable risk.

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(s) to become qualified source(s) to produce this item.

e. Market Research:

Market research for this item “Pump, Rotary (P/N 1545567-2)” was conducted on 20 July 2016. Vendors interested in competing on any items listed are instructed to contact the Competition Advocate's Office. While other sources are available to produce similar items, none of these sources have produced this specific item for military application and none have completed the necessary testing to become a qualified source. Funding and information for this item to conduct the necessary qualification testing is not available. Market research was performed by reviewing vendor catalogs and available product literature published by similar manufacturers, distributors and dealers to see if any other sources exist and to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs. Thus to date, no contractors have expressed an interest in this item.

3. The POC for this action is , Mechanical 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: //Signed// Date: 20 July, 2016

Name:

Title:

Signature: //S// Date: July 21, 2016

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH52R099EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date: 24 Oct 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: 24 Oct 2016

Name:

Title:

Signature:

Date: 25 Oct 2016

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-17-R-0107. It is proposed to negotiate a Firm-Fixed-Price contract with Honeywell International Inc. for their part number 1545567-2 and Meggitt Inc. for their part number H107-HNJ-336. 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. A Sources Sought Synopsis was posted to FedBizOpps on 01/20/2017. To date, no responses have been received.

4. The POC for this action is , OFFICE SYMBOL: , .

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/Price Data will not be required not be required due to the estimated dollar value. However, other than cost and pricing data may be required to establish 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: 01/25/2017

PART V - Legal Concurrence

Concur: // // Date: 01/24/2017