JA_SPRDL1-18-R-0407_Redacted_(1).pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-18-R-0407

(Previous J&A is available)

Justification and Approval for Other Than Full and Open Competition

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

2. Description of Action: The proposed action is to award a new long term contract for BEZEL Switch Assembly. Competition will be limited to LUMINESCENT Systems Inc. (cage code:

14550). This action will be funded with Army Working Capital Fund (AWCF) and will be issued as a fixed price contract.

3. Description of Supplies/Services: The customized military grade Bezel Switch Assembly (PN: 1247369) interfaces with the Improved Commander’s Display Unit (PN 12467508-2) which is used on the M1A2 System Enhancement Package Version 2 (SEP V2) Abrams Tank.

The total estimated contract value for this 5 year Long Tern Contract (LTC) is a minimum of $ and a maximum of $ There is no option for this requirement. The deliverables for this contract are as follows:

NOUN: Bezel Switch Assembly

a. NSN: 2590-01-537-8152

b. VENDOR P/N: 09352014

c. VEHICLE SYSTEM: M1 Abrams

d. QUANTITY: Min: 18 Max: 450

OPTION QUANTITY: N/A

e. ESTIMATED UNIT PRICE: $

f. ESTIMATED VALUE: Min: $ , Max: $

ESTIMATED OPTION VALUE: N/A

g. PRON NUMBER: EH81L365EH

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

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.

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, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The customized military grade Bezel Switch Assembly (PN:

12467369) interfaces with the Improved Commander’s Display Unit (PN 12467508-2) which is used on the M1A2 System Enhancement Package Version 2 (SEP V2) Abrams Tank.

The government only has limited rights in the technical data. The Technical Data Package (TDP)/acquisition production specification data is not fully defined because the drawings do not give enough information to actually manufacture the items. Thus, the TDP is inadequate for production without access to Luminescent Systems Inc technical data and procedures. For example: Note 20 of SCD 12467369 calls out the large and small Switch Guard Replacement Kits (part numbers 19524011 & 19524024) which are proprietary to Luminescent Systems Inc.

The customized military grade Bezel Switch Assemblies were developed and tested at Luminescent Systems, Inc. (Cage Code: 14550) expense. Thus, Luminescent Systems Inc. owns the rights to the full design. Also, Luminescent Systems Inc is the only approved source of supply that has been authorized to sell these items to the government.

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:

Estimated costs associated with reverse engineering: $250,000

Estimated time associated with reverse engineering: 12 months

Estimated costs associated with the development of qualification procedures: $200,000

Estimated time associated with the development of qualification procedures: 10 months

Estimated costs associated with the conducting engineering analysis: $350,000

Estimated time associated with the conducting engineering analysis: 12 months

The aggregate cost of reverse engineering; writing the qualification procedures and conducting an engineering analysis would be at least eight hundred thousand dollars ($800,000) which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for reverse engineering Bezel Switch Assembly;

the preparation of qualification procedures and for the engineering analysis to determine if a new source met the qualification procedures is at least thirty-four (34) 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; Army readiness; and deadline the M1A2 System Enhancement Package Version 2 (SEP V2) Abrams Tank which would cease to function and in turn deprive the Tank crew’s ability to fight and jeopardize crew safety.

Note 1: The Bezel Switch Assemblies are Nuclear Hardness Critical items (HCI) which means that they require Nuclear Hardness and Survivability Testing (NH&S) to include nuclear testing, physical testing in a simulated environment, modeling, simulation, and analysis. The NH&S as well as the Nuclear Survivability Assessment (electronic microcircuit test phase, system analysis test phase and system level test phase) will be conducted at U.S. Army Test and Evaluation Command and the estimated cost to conduct NH&S is sixty thousand dollars ($60,000) and take at least 4 months.

Note 2: This will not be a government funded reverse engineering effort because the Luminescent Systems Inc has more than enough customized military grade Bezel Switch Assemblies available. Thus, if any contractor decides to take on an effort to reverse engineer and/or procure proprietary data, the new contractor will be solely responsible for taking on all of the cost listed in the above paragraphs with “little” to no assistance from the government.

7. Actions to Increase Competition: No vendors are in the process of being qualified at this time, nor will be prior to the contract award. 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 Mangement Office (CMP) will encourage interested parties to submit a Source Approval Request (SAR) for this time for future buys.

8. Market Research: On April 10, 2018, the ARDEC-Rock Island CMO/Engineer conducted computer based market research for the customized military grade Bezel Switch Assembly. The results of this research 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. The results of this search did not yield any information about new production sources for this item. There are no other commercial or non-developmental items available to meet the Government’s need or that could be economically modified to meet the Government’s need that can operate on the M1A2 System Enhancement Package Version 2 (SEP V2) Abrams Tank.

To date, no additional sources have expressed an interest in supplying this item. The POC for this action is , General Engineer, Ext. 0242.

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice #2018-120 was posted to Fed Biz Opps on 01 DEC 2017 for this requirement, as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

Sources Sought Notice:

Component: BEZEL Switch Assembly

NSN: 2590-01-537-8152

Part Number: 09352014 End Item: Tank, MlA2 Abrams family of vehicles (SEP V2)

2018-120.pdf

10. 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:

Date: 17 April 2018

Title: APO, Abrams Matrix Support ARDEC-RI

Signature:/

Email

11. 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: __4/19/18_________________ Title: IM Armored Maneuver Group-Abrams-FOV

Signature: /s//

Typed Name: Date: 4/19/18 Title: Team Leader Armored Maneuver Group-Abrams-FOV

Signature: //s//

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government 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. Based on the estimated dollar value, certified cost and pricing data will be required IAW FAR 15.403.

Typed Name: Morris Belleville Date: 07/17/2018 Title: Contracting Officer Signature: Morris A. Belleville /S/

13. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Morris Belleville Date: 07/17/2018 Title: Contracting Officer Signature: Morris A. Belleville /S/

14. Legal Review:

Concur:

Date: 07/18/2018

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: Bezel Switch Assembly

b. NSN: 2590-01-537-8152

c. MIN Quantity: 18

MAX Quantity Multiplier Included: 450

d. MIN Estimated Value:

MAX Estimated Value:

e. Option Percent: NA

f. Quantity with Option: NA

g. Estimated Value with Option: $ NA

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: 25 Jul 2018