J&A__SPRDL1-18-R-0103_REDACTED.pdf

J&A SPRDL1-18-R-0103

Previous J&A SPRDL1-15-R-0139 is available

Justification and Approval for Other Than Full and

Open Competition

SPRDL1-18-R-0103

1. Contracting Activity : The Contracting Activity for this action is the Defense Logistics

Agency – Warren (DLA – WRN).

2. Description of Action : The proposed contract action is a new, firm fixed price contract with option to procure 137 each Redesigned Hull Networks Box (RHNB) for the Tank, Abrams, M1A2 Family of Vehicles (FOV). Competition will be limited to DRS-Test & Energy

Management (CAGE 24290), P/N 12992655. This action will be funded using Army Working

Capital Funds (AWCF).

3. Description of Supplies/Services:

Noun: Redesigned Hull Networks Box (RHNB) TJ2 Sidecar® V3 Assembly

NSN: 6625-01-509-8858

Part Number: 12992655

Quantity: 137

Option Quantity: 137 (100 %)

Unit Price: $4,469.84

Estimated Total Value: $1,224,736.16

Vehicle system: M1A2 Abrams Tank System

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

Acquisition Method Suffix Code: (AMSC): B - 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.

4. Authority Cited : The statutory authority permitting other than full and open competition for this effort is 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation

(FAR) 6.302-1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements.”

5. Reason for Authority Cited : This item, the Redesigned Hull Networks Box (RHNB) TJ2

Sidecar® V3 Assembly, is a critical component of the M1A2 Abrams Family of Vehicles. This item is a source controlled item (sole source) to DRS-Test & Energy Management (DRS-TEM)

(CAGE Code: 24290), who is the actual (or original equipment) developer and manufacturer.

The Government does not own proprietary rights to DRS-TEM data that would be required to produce a competitive TDP. The current Redesigned Hull Networks Box (RHNB) TJ2

Sidecar® V3 Assembly drawing/TDP, drawing No. 12992655 does not contain adequate technical data and/or information necessary to support a full and open competition. DRS-TEM is the actual (or original equipment) manufacturer and the only known source that possesses the required technical knowledge and engineering expertise to successfully manufacture this item per the current TDP. DRS-TEM developed, tested and obtained the Government's approval of this item for the M1A2 Redesigned Hull Networks Box (RHNB) TJ2 Sidecar® V3

Assembly at their own expense. The Government did not fund DRS-TE efforts in developing and testing this item. Additionally, the Government did not fund DRS-TEM to prepare fully detailed TDPs. As such, DRS-TEM is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the DRS-TEM data that would be required to produce a competitive TDP.

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.

ARDEC-RI engineering estimates that the cost to develop a competitive technical data package

(TDP) for this item through reverse engineering could run as high as $500,000 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 $300,000 and take about 12 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 $800,000 and take at least 24 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

$1,600,000.00 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 60 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.

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. These stated costs would be very difficult to be recouped through subsequent competition and the consequential time delay for this effort is unacceptable to meet the Government's requirements.

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 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.

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 to produce a competitive TDP. Any new vendor who decides to pursue the qualification process will be directed to the Competition Advocate’s

Source Approval Program. The Competition Management Office (CMO) will encourage interested parties to submit a Source Approval Request (SAR) for this time for future buys.

8. Market Research :

This item appears on the Competition Advocate’s Shopping List (CASL) but does not appear on the Advanced Procurement Planning List (APPL) dated 16 January 2018. In June 2018, market research was performed by ARDEC Engineering. At that time, ARDEC Engineering determined the Redesigned Hull Networks Box (RHNB) TJ2 Sidecar® V3 Assembly, 12992655, is a unique military item and no commercial equivalent exists. Therefore, no commercial item will satisfy the Army's need for the Redesigned Hull Networks Box (RHNB)

TJ2 Sidecar® V3 Assembly.

A sources sought Synopsis was posted on Fed Biz Opps (Notice # 2018-104) on November 22, 2017 as follows:

Sources Sought Notice has been submitted to Fed Biz Opps on 22–Nov-2017

Sources Sought Notice#: 2018-104

Component: Redesigned Hull Networks Box (RHNB) TJ2 Sidecar® V3 Assembly

NSN: 6625-01-509-8858

Part Number: 12992655

End Item: M1A2 Abrams Tank

2018-104.pdf

In June 2018, this justification was updated and additional market research was conducted.

The results of this found that nothing had changed and that DRS remains the only source capable of supplying this item.

POC: Bob Waetke, RDAR-EIS-CL, 309-782-6624, Robert.p.waetke.civ@mail.mil.

https://sharepoint.distribution.dla.mil/sites/dla_land_warren/pmb/PMB%20Shared%20Documents/02%20Local%20Guidance/Sources%20Sought%20Request.oft https://sharepoint.distribution.dla.mil/sites/dla_land_warren/pmb/PMB%20Shared%20Documents/02%20Local%20Guidance/Sources%20Sought%20Request.oft

9. Interested Sources:

There has not been any expressed interest by any known contractors to become a qualified source to produce the Redesigned Hull Networks Box (RHNB) TJ2 Sidecar® V3 Assembly

(PN: 12992655). The notices required by FAR 5.201 shall be or have been published, and any bids or proposals received shall be considered. As stated above, interested sources will be directed to the Competition Advocate’s Source Approval Program for information about becoming qualified sources.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history:

Contract: SPRDL1-15-C-0208

Award date: 09/24/2015

Contractor: Canadian Commercial Corporation

Value: $438,000.00

Competitive Status: Limited Source

Authority Cited: FAR 6.302-1, Only One Responsible Source

Contract: W52H0908D0305/VD06/0012AA

Award date: 07/24/2012

Contractor: Canadian Commercial Corporation

Value: $1,517,569.00

Competitive Status: Limited Source

Authority Cited: FAR 6.302-1, Only One Responsible Source

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Redesigned Hull Networks Box (RHNB) TJ2 Sidecar® V3

Assembly.

c. Unusual and compelling urgency: N/A

d. Subcontracting competition: The Government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR 19.704.

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.

Typed Name: Tom Wilson Date: 13 June 2018

Title: APO, Abrams Matrix Support ARDEC-RI Signature: //s//Tom Wilson

Email: tom.j.wilson.civ@mail.mil

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: Zechariah Shaffer 19 June 2018

Title: Signature: Inventory Management Specialist (s) Zechariah Shaffer

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 not expected to exceed $2 million, Certified Cost or

Pricing Data will not be initially be requested in accordance with FAR 15.403-4(a)(1), but will be required if the proposal exceed the required threshold IAW FAR 15.403-4. In accordance with

Class Deviation – Threshold for Obtaining Certified Cost or Pricing Data - effective July 1, 2018, contracting officers shall use $2 million as the threshold for obtaining certified cost or pricing data, in lieu of the threshold of $750,000.00 at FAR 15.403-4. This item is non-commercial.

Typed Name: Jeffrey J. Mahlmeister

Title: Contracting Officer

Signature: //JJM//

Date: 12 July 2018

14. Contracting Officer Certification:

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

Typed Name: Jeffrey J. Mahlmeister

Title: Contracting Officer

Signature: //JJM//

Date: 12 July 2018

15. Legal Concurrence:

Concur: // Darin R. Morency //

Date: 08/14/2018

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: Redesigned Hull Networks Box (RHNB)

TJ2 Sidecar® V3 Assembly

b. NSN: 6625-01-509-8858

c. Basic Quantity: 137

d. Basic Estimated Value: $612,368.08

e. Option Percent: 100%

f. Quantity with Option: 274

g. Estimated Value with Option: $1,224,736.16

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

Signature:

Date: