JA_SPRDL1-18-R-0179_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A : SPRDL1-18-R-0179

SPRDL1-18-R-0179

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: Sidecar(R) Module Cable Assembly

b. QUANTITY: 128

OPTION QUANTITY: 128

c. NSN: 6150-01-500-6953

d. MPN: 12992347-048

e. VEHICLE SYSTEM: JW – Tanks, Abrams, M1A2 Unique

f. ESTIMATED UNIT PRICE:

g. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

h. PRON NUMBER: EH7C1497EH

i. TYPE OF FUNDS: Army Working Capital Funds (AWCF)

j. TYPE OF CONTRACT: Firm Fixed Price (FFP)

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):

a. Contractor(s) Name: DRS Network & Imaging Systems, LLC Cage: 24290 Part Number: PR60382

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

a. Status of the Acquisition Data:

This item, the Sidecar(R) Module Cable Assembly, is a critical component of the M1A2 Abrams Family of Vehicles. This item is a source controlled item (sole source) to DRS Network & Imaging Systems, LLC (CAGE Code: 24290), the original equipment developer and manufacturer. The Government does not own proprietary rights to DRS data that would be required to produce a competitive TDP. The current Cable Assembly drawing/TDP, drawing No. 12992347, a source control drawing, does not contain adequate technical data and/or information necessary to support a full and open competition. DRS, LLC 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, LLC developed, tested and obtained the Government's approval of this item for the Cable Assembly at their own expense. The Government did not fund DRS, LLC’s efforts in developing and testing this item. Additionally, the Government did not fund DRS, LLC to prepare fully detailed TDPs. As such, DRS, LLC is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the DRS, LLC’s data that would be required to produce a competitive TDP.

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 technical data package (TDP) for this item through reverse engineering could run as high as $400,000 and require an estimated delay of at least 36 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 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 Part I. Finally, it would cost $100,000 and take at least 12 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 $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.

c. Demonstration of Approved Contractor's Unique Qualifications:

DRS, LLC is the sole owner of their drawings and technical data rights. The

Government did not purchase DRS, LLC s proprietary rights to produce a competitive TDP. Only DRS, LLC has the requisite technical and engineering expertise to perform all efforts required to produce this support plate assembly.

DRS, LLC 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 costs 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 procedures. The additional time required for these actions would preclude delivery of the item in a time frame that would meet the Government’s requirements.

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. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the current TDP is insufficient to qualify a new source, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item. Contractors interested in producing this item can seek approval through the Source Approval Program with the Competition Advocates Office.

e. Market Research:

In February 2018, market research was performed by ARDEC Engineering. At that time, ARDEC Engineering determined the Cable Assembly, 12992347, is a unique military item. No commercial equivalent exists. Therefore, no commercial item will satisfy the Army's need for the slip ring assembly.

This item appears on the Competition Advocate’s Shopping List (CASL), dated 31 January 2018. The CASL contains TACOM-Warren’s projected buy list of sole source items for the next three years based on the AMRC Codes of 3, 4 and 5. It is updated and advertised twice a year in the FedBizOpps and is available to interested contractors on the TACOM-Warren Business Opportunities website under the Future and Potential Buys Link. Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office. To date, no additional contractors have expressed an interest in this item.

Component: Sidecar(R) Module Cable Assembly

NSN: 6150-01-500-6953

Part Number: 12992347 End Item: Tank, M1A2 Abrams Family of Vehicles

A Sources Sought Synopsis was posted to FedBizOpps on 26 February 2018. The notice (Sources Sought 2018-296: Wiring Harness, Branched, NSN: 6150-01-500- 6953) 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 qualified source(s) to produce 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 Date: 21 February 2018

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH7C1497EH as to required quantities and delivery schedules are accurate and complete.

Item Manager:

Date: 03/01/2018

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

Name:

Title:

Signature:

Date: 03/01/2018

Name:

Title:

Signature:

Date: 03/01/2018

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-18-R-0179. It is proposed to negotiate a Firm-Fixed-Price contract with DRS Networking & Imaging Systems for their part number 12992347-048. The TDP does not fully disclose the complete technical requirements that would allow the SIDECAR MODULE CABLE ASSY. To be manufactured by other than the source specified on drawing 12992347 (DRS).

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 .

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized and negotiations will be conducted if necessary. Due to the estimated value, certified cost and pricing data will not be required in accordance with FAR 15.403. However, other than certified cost and pricing data may be required in order to establish price reasonableness.

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: 03/02/2018

PART V - Legal Concurrence

Concur:

Date: 03/04/2018