J&A_SPRDL1-R-0375.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-17-R-0375

SPRDL1-17-R-0375

No previous J&A available

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency (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: Air Handling Unit

b. QUANTITY: 19

OPTION QUANTITY: 19

TOTAL QUANTITY: 38

c. NSN: 4130-01-530-4612

d. MPN: 12438458-5

e. VEHICLE SYSTEM: Tank, Abrams, M1A2 Family of Vehicles

f. ESTIMATED UNIT PRICE: $

g. ESTIMATED VALUE: $

ESTIMATED OPTION VALUE: $

ESTIMATED TOTAL VALUE: $

h. PRON NUMBER: EH7C0881EH

i. TYPE OF FUNDS: ACWF

j. TYPE OF CONTRACT: Firm Fixed Price

k. AMC/AMSC: Acquisition Method Code (AMC): AMC 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

l. Acquisition Method Suffix Code (AMSC): AMSC B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. 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):

Contractor Name: General Dynamics Land Systems Inc.

6000 17 Mile Rd Sterling Heights, MI 48310-4541

CAGE Code: 01417 Part Number: 12438458-5

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

a. Status of the Acquisition Data:

The Air Handling Unit (AHU), 12438458-5, is a vital part of Thermal Management System, which is designed to remove heat from the air in the crew compartment of the M1 Abrams Family of Vehicles (FOV). Currently, the Government does not have a fully detailed level III TDP or performance spec that is sufficient to allow full and open competition of this item.

The AHU is a source controlled item (sole source) to General Dynamics Land System (GDLS), who is the actual developer. The AHU was developed, designed, built, tested, and obtained the Government’s approval at GDLS’s expense. GDLS is the only known source that has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability and quality testing capabilities necessary to produce this item.

The lack of data makes it necessary to procure this item on a non-competitive basis from GDLS.

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 $1,000,000 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 $250,000 and take about 6 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 $250,000 and take at least 6 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 $1,500,000.00 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 36 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:

GDLS has the requisite technical and engineering expertise to perform all efforts required to provide the AHU. GDLS has demonstrated the unique and proven manufacturing capabilities to establish and maintain the process control required to repetitively produce this AHU.

In addition, GDLS 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.

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:

A sources sought synopsis was posted to FedBizOpps on August 24, 2017. This item does not appear on the TACOM Competition Advocate’s Shopping List (CASL) or the Advanced Procurement Planning List (APPL). ARDEC-Rock Island engineer has conducted computer based market reserach for the AHU. The results of this search did not yield any information about new production sources for this 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 M1 Abrams FOV.

To date, no additional contractors have expressed an interest in 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:

Signature: //s// Office:

Date: 24 Jul 2017

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH7C0881EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: //s// Date:7/24/17

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

Name:

Title:

Signature: //s// Date: 31 July 2017

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-17-R-0375. It is proposed to negotiate a Firm-Fixed-Price contract with General Dynamics Land Systems Inc. for their part number 12438458-5. This procurement is restricted to General Dynamics Land Systems Inc. as they have developed, tested, and obtained Government approval of this item for the M1 Abrams Family of Vehicles. General Dynamics Land Systems Inc. is the sole owner 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. 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 Contract Specialist, , , (

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 15.403-4.

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: 11/17/2017

PART V - Legal Concurrence

Concur: // // Date: 11/20/2017

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: Air Handling Unit

b. NSN: 4130-01-530-4612

c. Basic Quantity: 19

d. Basic Estimated Value: $

e. Option Percent: 100%

f. Quantity with Option: 38

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: 24 Nov 2017