J&A_SPRDL1-18-R-0067_REDACTED.pdf

J&A SPRDL1-18-R-0067

Previous J&A SPRDL1-16-R-0214 is available

J&A SPRDL1-18-R-0106

(PFM) is a vital part of the LOADER’S THERMAL WEAPON SIGHT KIT, which is used on the M1A1 ABRAMS TANK.

The government has limited rights in accordance with DFARS 252.227-7013 and 7017;

however, the Technical Data Package (TDP) acquisition production specification data is not fully defined and not suitable for full and open competition. The unique military grade Power Filter Module (PFM) was developed, designed, built, and tested at RAYTHEON COMPANY’S expense. Thus, RAYTHEON COMPANY owns the proprietary rights to the technical/design data for the Power Filter Module (PFM). Additionally, the Government did not fund RAYTHEON COMPANY to prepare a fully detailed design TDP after approval.

RAYTHEON COMPANY is the sole owner of the technical data. This item is proprietary to RAYTHEON COMPANY the actual (or original equipment) manufacturer.

6. Efforts to Obtain Competition: 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. In addition to not having the information necessary to develop a competitive TDP, ARDEC-RI engineer estimates that the cost to develop a competitive package for this item through reverse engineering, qualification procedures and engineering analysis are listed below:

ARDEC-RI engineer estimates that the cost to develop a competitive package for this item through reverse engineering could run as high as $270,000 and require an estimated delay of at least 18 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 $100,000 and take at least 9 months for the U.S. Army/ARDEC engineers to develop government’s requirements for the prospective contractor to provide the Power Filter Module (PN:

12490128).

Finally, it would cost $300,000 and take 12 months to conduct the actual Engineering analysis to determine if the 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 aggregate costs associated with developing a competitive TDP, to include reverse engineering; or developing government’s requirements and engineering analysis would be at least six hundred seventy thousand dollars ($670,000) 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 thirty nine months. A delay of this scale is unacceptable 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 function of the Loader’s Thermal Weapons Sight Kit.

7. Actions to Increase Competition: No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

Qualifying a new source would require a substantial expenditure of the limited funding that has been provided to support the M1A1 Abrams Vehicles. New sources would require the development of extensive testing and processing procedures. The additional time required for these actions would prohibit delivery of this item in a time frame that would meet the Government’s requirements.

There has not been any expressed interest by any known contractors to become a qualified source to produce this Power Filter Module (PFM).

Any new vendor who decides to pursue the qualification process will be directed to the Competition Advocate’s Source Approval Program.

8. Market Research: On 9 May 2018, computer based market research was performed by ARDEC –Rock Island CMO/Engineering for the Module, Power Filter. The results of this search did not yield new production sources for this item. There are no commercial equivalents or non-developmental items available to meet the Government's requirements or that will satisfy the Government need without qualification testing. This item does not appear on the TACOM Warren Competition Advocate’s Shopping List (CASL) or Advanced Procurement Planning List (APPL) dated 16 JAN 2018.Vendors interested in pursuing source approval on this item are instructed to contact the Source Approval Officer in the Competition Management Office.

A Sources Sought Synopsis was postedd to Fed Biz Opps on 13 OCT 2017 Component: Module, Power Filter

NSN: 2350-01-553-6537

Part Number: 12490128 End Item: M1 Abrams Family of Vehicles

2018-017.pdf

9. Interested Sources: A Sources Sought Synopsis for this NSN was posted on Fed Biz Opps on 13 October 2017 to see if there is any interest from perspective Offerors at this time. To date no other known source has expressed interest in writing regarding the manufacture of this item. The Soruces Sought Synopsis is valid for one year.

Date: 5/18/2018 Signature: //s//

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.

Due to the dollar value and sole source nature of this procurement, Certified Cost or Pricing Data will not be required in accordance with FAR 15.403-4, Class Deviation 2018-O0012. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. This item is non-commercial.

Name: Jeffrey J. Mahlmeister Title: Contracting Officer Date: 6/11/18 Signature: //JJM//

14. Contracting Officer Certification: 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: 6/11/18 Signature: //JJM//

15. Legal Concurrence:

Concur: // // Date: 06/13/2018

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: Module, Power Filter

b. NSN: 2350-01-553-6537

c. Basic Quantity: 16

d. Basic Estimated Value: $

e. Option Percent: 100%

f. Quantity with Option: 32

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: 22 Jun 2018