JA_SPRDL1-17-R-0446_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-17-R-0446

SPRDL1-17-R-0446

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: PRINTED CIRCUIT BOARD

b. QUANTITY: 59 ea.

OPTION QUANTITY: 59 ea TOTAL QUANTITY : 118 ea

c. NSN: 5998-01-584-0897

d. MPN: 12388841-3

e. VEHICLE SYSTEM: M1A2 Abrams Tanks

f. ESTIMATED UNIT PRICE: $ 4,317.00

g. ESTIMATED VALUE: $1,351,221.00

ESTIMATED OPTION VALUE: $1,407,248.00

ESTIMATED TOTAL VALUE: $2,758,469.00

h. PRON NUMBER: EH7C1227EH

i. TYPE OF FUNDS: C-AWCF (DBOF)

j. TYPE OF CONTRACT: Firm Fixed Price

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(s) for the above item is (are):

Contractor Name: General Dynamics Tallahassee Operations Cage Code: 0HGX3 Part Number: 12388841-3

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

a. Status of the Acquisition Data:

(1) General Dynamics Tallahassee Operations is the sole owner of its drawings and technical data rights. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

(2) The above identified approved source developed, tested, and obtained Government approval of the Printed Circuit Board for application to the M1A2 SEP at its cost. The Government did not fund General Dynamics Tallahassee Operation’s efforts in developing and testing this item. Additionally, the Government did not fund the company to prepare fully detailed TDPs after approval. As such, General Dynamics Tallahassee Operations is the sole owner of its 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.

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 $250K and could require an estimated delay of at least twelve months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Added to these costs and delays would be the 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 $250K 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. 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 18-24 months would occur. This delay would adversely impact the Army's readiness rate.

c. Demonstration of Approved Contractor's Unique Qualifications:

(1) The approved source, General Dynamics Tallahassee Operations, is the sole owner of its drawings and technical data rights. The Government did not buy proprietary rights to produce a competitive TDP.

(2) Only General Dynamics Tallahassee Operations has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J&A. This Printed Circuit Board is a major component of the M1A2. The Printed Circuit Board 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.

Also this product must comply with the nuclear criteria responsible for nuclear survivability of the M1A2. General Dynamics Tallahassee Operations has demonstrated and proven their ability to meet the requirements and fabrication of the Printed Circuit Board in order to continually manufacture this critical item.

(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. 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 tooling adjustment and development of extensive processing procedure. 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 item required is mission critical in that a failure of this item during operation in an M1A2 would cause extensive and extremely costly damage.

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 to become a qualified source to produce this item.

(4) Any contractors interested can seek approval through the Source

Approval Program with the Competition Advocate.

e. Market Research: A Sources Sought Notice Market Survey request was sent to Mr. Jason Gruber on June 23, 2017. The notice (Sources Sought Notice 2017-308:

Printed Circuit Board NSN: 5998-01- 584-0897) was posted to FedBizOpps (FBO) June 30, 2017 and will remain valid for 12 months from the date of posting. Vendors interested in pursuing source approval on this item are instructed to contact the Source Approval Officer in the Competition Management Office. To date there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

3. The POC for this action is Katrina Prantzalos, Electrical Engineer, Ext. 282-8756

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

Name: Katrina Prantzalos Title: Electrical Engineer Signature: //s// Date: July 6, 2017

Name: Fred Krestik Title: Team Leader, Tires, Electrical and HVAC Team Signature: //s// Date: 7 July, 2017

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH7C1227EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: Sarah Williams Date: 12 July 2017

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

Name: Susan Cashero-Baker Title: C, Acting, Armored Maneuver Group Signature: //s// Date: 13 Jul 17

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-17-R-0446. It is proposed to negotiate a Firm-Fixed-Price contract with General Dynamics Tallahassee Operations for its part number 12388841-3.

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, it will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is James Quell, OFFICE SYMBOL: ZGAA, Ext. 586-282- 3196.

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.

5a. When the solicitation started it was not expected to be in excess of $700,000.00.

Upon final negotiation, the total award price was $ 2,758,469.00, therefore the competition advocate signature is required. The amounts were adjusted on page one and the signature area was added to the last page.

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

Name: Grover D. Easterling, Jr.

Title: Contracting Officer

Signature:

Date: 16 NOV 2017

PART V - Legal Concurrence

Concur://signed/Eric Selke// Date: 20 NOV 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: Printed Circuit Board

b. NSN: 5998-01-584-0897

c. Basic Quantity: 313

d. Basic estimated value: $1,351,221.00

e. Option percent: 100

f. Quantity with option: 616

g. Estimated Value with option: $2,758,469.00

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.

MARY E. SHEARER

Competition Advocate