JA_SPRDL1-17-R-0325_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-17-R-0325

Previous J&A: SPRDL1-15-R-0422 (SPRDL1-16-C-0125)

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

SPRDL1-17-R-0325

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: Safety Device, Personnel Securing

b. QUANTITY: 1,338

OPTIONAL QUANTITY: 1,338

TOTAL QUANTITY: 2,676

c. NSN: 4240-01-618-5280

d. MPN: 500-US-00901; Takata Protection Systems, INC

e. VEHICLE SYSTEMS: Stryker FOV

f. ESTIMATED UNIT PRICE:

g. ESTIMATED VALUE:

ESTIMATED OPTIONAL VALUE:

ESTIMATED TOTAL VALUE:

h. PRON NUMBER: EH6V1239EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

Previous J&A

JA_SPRDL1-15-R-04

22.doc

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

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. The only approved source for the above item is:

Contractor: Takata Protection Systems, Inc.

Their Part Number: 500-US-00901 CAGE Code: 1EAW9

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

a. Status of the Technical Data Packages (TDP):

This item is source controlled to Takata Protection Systems, Inc. The Government does not have drawings that are suitable for competitive procurement. The drawings were not defined for the following reasons:

(1) Takata developed, tested, and obtained the Government's approval of this harness at their own costs. The Government did not fund Takata’s efforts in development and qualification testing of this item. Additionally, the Government did not fund them to prepare a fully detailed TDP after approval. As such, Takata is the sole owner of their drawings and technical data rights. This item is a personal restraint harness consisting of belts, webbing, buckles, and a shackle.

(2) The Government does not have rights to the data that would be required to produce a competitive TDP. Takata is unwilling to sell the TDP.

b. Efforts to Develop a Competitive Package:

(1) There are no current plans to acquire a competitive TDP. A significant effort would be necessary to reverse engineer, procure and test prototypes, and release the design. This program is critical to the mission readiness of the Stryker FOV.

Through our previous experience, we estimate that there would be a cost of $560K to develop a competitive package for this item through reverse engineering and could require a delay of 36 months, to include definition of complete requirements, obtaining prototype and testing, and drawing update.

(2) The Government may or may 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 36 months would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs.

c. Demonstrate the approved contractor's unique qualifications:

(1) Takata is the sole owner of the drawings and technical data rights.

The Government did not buy their proprietary rights to produce a competitive TDP. This item is a specifically designed harness for application to the Stryker FOV.

(2) Takata has the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this J & A.

(3) The approved source identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material and/or improper process/quality control during manufacturing of this restraint system could result in malfunctioning or complete failure of this item for its designed purpose. A failure of this restraint system could jeopardize the safety of the crew in a battlefield situation since the occupants would not be properly secured within the vehicle during operation. During peace time, this condition could force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate, until the damaged/malfunctioning harness is replaced.

d. Efforts to Qualify Additional Suppliers:

(1) No vendors are in the process of being qualified at this time, nor will they be prior to the contract award.

(2) At this time, there are no current or planned efforts to qualify additional sources, partially due to a lack of tech data. Any new source would be required to pass extensive first article/validation testing at the component and vehicle level. The additional time required for these actions would preclude the delivery of the items in a time frame that would satisfy the Government’s needs.

(3) TARDEC Engineering estimates the following breakdown for the minimum timeline and costs for reverse engineering a first iteration of current subcomponents to include review, design, prototyping, testing and TDP (technical data package) development. This process is shown below for clarity.

Reverse Engineering Activity Delay Costs Project definition 3 Months $35K Reverse engineer and create drawings 9 Months $300K Obtain prototypes 9 Months $25K Test 12 Months $150K Engineering change proposal 3 Months $50K Total Estimated Time to Reverse Engineer 36 Months $560K

In addition to the time needed to develop the drawings is the time needed for a new contractor to develop prototypes and conduct a first article test.

(4) Any new vendor who decides to pursue the qualification process without a technical data package (drawings) would be directed to go through the Competition Advocate's Source Approval Program. The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item for future buys.

e. Market Research:

A "sources sought" synopsis was posted on FedBizOps on 15 Dec 2017.

Currently, there were no positive matches for this NSN. To date, no contractors have expressed an interest in this item. Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office. A search of HAYSTACK was performed to review cost and competition consideration, along with determining commercial or non-developmental items which may be available to meet Government needs. There is no drop-in replacement for this item.

(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: Date: 21 Nov 2017

Name:

Title: Date: 28 November 2017

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH6V1239EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date: 14 November 2017

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

Name:

Title:

Signature:

Date: 12/04/2017

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-17-R-0325. It is proposed to negotiate a Firm-Fixed-Price contract with Takata for their part number 500-US-00901. The item is source controlled to Takata, because the Government does not have drawings that are suitable for competitive procurement. Takata developed, tested, and obtained the Government’s approval of this harness. The Government did not fund their efforts to develop and test the kit; nor did the Government fund Takata to prepare a fully detailed Technical Data Package.

Therefore, Takata is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights or patent rights to the TDP which would be required to produce a competitive TDP.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source, 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 Contract Specialist,

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. The Government will follow normal acquisition procedures to determine that the contract price is fair and reasonable. The Government will utilize the appropriate forms of cost and/or price analysis, and conduct negotiations if necessary. Due to the value of the contract, the Government will obtain certified cost or pricing data 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: Eric E. Tucker Title: Chief, Artillery/Track, ZGAB Signature: //S// EET Date: 12/11/2017

PART V - Legal Concurrence

Concur:

Date: 12/21/2017

PART VI - 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: Safety Device, Personnel Securing

b. NSN: 4240-01-618-5280

c. Basic Quantity: 1,338

d. Basic Estimated Value:

e. Option Percent: 100%

f. Quantity with Option: 2,676

g. Estimated Value with Option:

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 proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Date: 31 Jan 2018