JA_SPRDL118R0036_Redacted.pdf

Previous J&A SPRDL1-15-R-0213 is available and included separately

J&A SPRDL1-18-R-0036

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0036

1. Contracting Activity : The United States Defense Logistics Agency - DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to award a new hardware contract on a sole source basis to DRS Test & Energy Management (TEM), LLC, Cage Code 24290, for the procurement of Wired Housing Assemblies. The Type of funds to be used is C-AWCF. The type of contract is Firm Fixed Price.

3. Description of Supplies/Services: This award is for the procurement of Wired Housing Assemblies for the continued support of the Bradley Fighting Vehicle (BFV). The Wired Housing Assembly functions as a vehicle system controller and manages power and data/video distribution. The total estimated contract value is for up to 208 Assemblies. For this contract, the deliverables are as follows:

NOUN: Wired Housing Assembly

a. NSN: 5855-01-588-5668

b. MPN: 12484070-1

c. QUANTITY: 104

OPTION QUANTITY: 104

d. ESTIMATED UNIT PRICE:

e. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

f. PRON: EH7C1301EH

g. Acquisition Method Code (AMC): 3 Acquire, for the second or subsequent time, directly from the manufacturer.

h. Acquisition Method Suffix Code: (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.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)(A)&(B), “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The DRS TEM, Inc Wired Housing Assembly was developed and fielded to support Chassis Modernization/Embedded Diagnostics (CMED) of the Bradley Fighting Vehicle. It functions as a vehicle system controller and performs drive train monitoring, sensor monitoring/reporting, power distribution, video processing and diagnostic capability. The system provides for driver video management, hull power distribution and hull diagnostics on the Bradley Family of Vehicles. Its functionality includes collecting, processing, reformatting, and distributing video and data from a variety of systems on the Bradley to the Driver. The USG does not own the Technical Data Package (TDP) for 12484070-1. DRS is the sole owner of their technical data. The Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP. The above identified supplier has developed, tested and obtained Government approval for this item for application in the Bradley system at their own cost. The Government did not fund their efforts in developing and testing this item. Only DRS has the capability to manufacture the Wired Housing Assembly, perform failure analysis, develop inspection and acceptance criteria for components, and repair/rebuild and test the Wired Housing Assembly. Installing hardware that has not undergone similar verifications could lead to a failure of the Unit under battlefield conditions and could damage the vehicle, compromise the mission function, and endanger the life of the crew.

Due to the limited performance and technical data available on the Wired Housing Assembly, Reverse Engineering is the only recourse the Government could entertain to increase competition through development of a competitive TDP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. Further, there is no funding to develop and qualify additional Wired Housing Assembly manufacturers for this effort. Even if a reverse-engineering effort is successful, the Government will incur excessive costs and lead-time delay. The cost to reverse-engineer the critical components is estimated at $10.85M and 6.5 years to complete. Reverse Engineering the TDP includes, but is not limited to the following:

Estimated cost to reverse engineer the Assembly: $8,000,000

Estimated time to reverse engineer the Assembly: 3.5 years

Estimated cost to perform RAM vehicle testing (5000 miles) - 3 vehicles at $750,000 per vehicle: $2,250,000

Estimated time to perform RAM vehicle testing: 2 years

Estimated cost to develop a Technical Data Package: $600,000

Estimated time to develop a Technical Data Package: 1 year

The Government does not have the funds available nor would the Government be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. At the current average monthly demand at 19 per month (228 per year), at the current unit cost of $45,484.23, and assuming the 25% saving achieved through competition, the $2,592,601 annual savings would take 4.2 years to offset the estimated $10.85M cost of reverse engineering the item and qualifying another source.

The consequential time delay of 6.5 years to reverse engineer, develop and test the new design and then qualify a new vendor would prohibit delivery of the Wired Housing Assembly in a time frame that would satisfy the Government's needs. We are experiencing increased Operational Tempo and increased vehicle fielding that will create an additional, time-sensitive demand (2QFY18 and 4QFY20), that require additional assets to be able to meet Army readiness targets of 90% fully mission capable.

Further delay to procurement will negatively impact fleet readiness, and future program efforts.

6. Efforts to Obtain Competition:

(a) Effective Competition: Based on the detailed rational provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action.

(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition:

As stated in section 5 above, there is no TDP available to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements.

Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. Specific information and point of contact for the Source Approval Program is available at https://www.tacom.army.mil/cmo/sap.html. While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

8. Market Research: Market research was completed by TARDEC Engineering on 12 September 2017.

There are other sources, such as MOOG, likely capable of developing an Wired Housing Assembly for our needs. Although these companies have no identifiable replacement for this DRS hardware, they do make similar ones for the commercial and military market, but do not cover all of the functions done by the current Wired Housing Assembly. Some products manage power and some manage video data, but do not perform both functions. Extensive analysis, prototyping, and vehicle testing as described in section 5 above would still need to be done to ensure that the Bradley will properly meet performance specifications with a new supplier’s hardware. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source.

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2017-405 was posted to Fed Biz Opps on 14 September 2017 for the Bradley Wired Housing Assembly, NSN : 5855-01-588-5668 as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement history: Past procurements have been sole source to DRS TEM, Inc.

b. Acquisition data availability:. The Government does not own the build to print drawings and associated quality assurance data to the Wired Housing Assembly needed to procure this item competitively. DRS TEM, Inc is the original equipment manufacturer (OEM), and the sole approved source of supply, for this Wired Housing Assembly.

The POC for this action is

11. Technical Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name:

Title:

Signature:

Date: 18 Sept 2017 Email:

Signature:

Date: 18 September 2017 Email:

12. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Date: 20 September 2017 Title: Signature:

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the results of a detailed cost and or price analysis. The contractor will be required to submit certified cost and pricing data as the expected value of this procurement falls within the threshold. This item is non-commercial.

Name: Jeffrey J. Mahlmeister

Title: Contracting Officer

Date: 10/30/17

Signature: //JJM//

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Jeffrey J. Mahlmeister

Title: Contracting Officer

Date: 10/30/17

Signature: //JJM//

15. Legal Concurrence:

Date: 12/12/2017

Signature:

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: Wired Housing Assembly

b. NSN: 5855 01 588 5668

-05 00'

c. Basic Quantity: 104

d. Basic Estimated Value:

e. Option Percent: 100

f. Quantity with Option: 208

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

Signature: Cynthia M. Fellows /s/

Date: 5 January 2018

Digitally signed by

HOPSON.LILLI.A.1230127324

.A.1230127324 Date: 2018.01.12 13:55:45

HOPSON.LILLI