JA_PRON_EH8E0465EH_SPRDL118R0427_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1‐18‐R‐0427

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: Environmental Control Unit (ECU), Control Box Assy

b. QUANTITY:20

OPTION QUANTITY:20

c. NSN: 4130-01-549-0408

d. PN: 12488417, MPN: 306-9011

e. VEHICLE SYSTEM: Multiple Launch Rocket System (MLRS)

f. ESTIMATED UNIT PRICE:

g. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

h. PRON NUMBER: EH8E0465EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm-Fixed-Price

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

Acquisition Method Suffix Code: 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.

DEFENSE LOGISTICS AGENCY J&A: SPRDL1‐18‐R‐0427

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: Marvin Land Systems

CAGE: 064H2

Part Number: 306-9011

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

a. Status of the Acquisition Data:

The USG does not own the Technical Data Package (TDP) for the ECU control box assembly.

Marvin Land Systems is the sole owner of their technical data for this item, is the only approved manufacturing source, and is the Original Equipment Manufacturers (OEM) for the ECU control box assembly used in the Multiple Launch Rocket System (MLRS). The Government did not fund Marvin Land Systems for the development of their ECU control box assembly and therefore does not own the TDP for the item, nor do we have the rights to their data, which would be needed to produce a competitive TDP. In addition, proper operation of this item when installed into the MLRS is critical, as it operates as a critical component within the MLRS APU/ECU subsystem which provides crew cab cooling and auxiliary electrical power for the MLRS vehicle.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

There are currently no plans to acquire a competitive TDP due to lack of funds that would be needed to acquire the data in order to support a competitive acquisition. In addition, it is unlikely costs could be recovered through subsequent competition due to the low ordering quantity requirement for this item. The Government does not possess the TDP for this ECU control box assembly, which controls MLRS crew cab cooling. It is a critical component of the MLRS APU/ECU subsystem, which was developed by Marvin land Systems. Through our previous experience, we estimate that the cost to develop a competitive procurement package for this item by first performing a systems engineering analysis of the overall MLRS APU/ECU subsystem and allocating functional requirements down to the ECU control box level then performing reverse engineering could run as high as $1,200,000 and could require an estimated delay of at least 18 months. This would include fabrication of the prototype hardware and releasing a validated TDP. Testing of this prototype hardware would need to include verification of the all output functions of the ECU such as power on/off to the ECU, ECU evaporator re-circulation fan on/off and fan speed control, ECU cooling mode on/off and compressor, condenser and evaporator control, thermostat temperature control, and built in test fault analysis and LED reporting. Added to these costs and delays would be the cost and time it would take to qualify another source. Qualification and durability testing would be required to prove out this

DEFENSE LOGISTICS AGENCY J&A: SPRDL1‐18‐R‐0427

item when manufactured in accordance to the new TDP by a new source at an estimated cost of an additional $1,000,000 and a delay of 12 months. These tests would include box level shock, vibration, EMI, cleaning sprays, sand, dust, high and low temperature, humidity, and salt fog testing. In addition, vehicle level performance testing would be required to ensure the APU/ECU subsystem performed as required using the new supplier’s ECU control box. Performance testing would ensure the APU, condenser, evaporator, fans, compressor, air distribution, and electronic control all functioned properly. The Government estimates the cost to develop a competitive procurement package for the ECU control box assembly through reverse engineering and qualifying a new manufacturer could run as high as $2,200,000 and could require an estimated delay of at least 30 months. These costs are engineering estimates and may not reflect the actual costs associated with these activities.

As addressed above, Marvin Land Systems owns all technical data rights for their component.

Reverse Engineering is the only recourse the US Government could entertain. No efforts to obtain competition for this acquisition will be taken for the reasons stated above. Complete Level III TDPs, suitable for competition, are not available for purchase. Further, there is no funding to qualify additional ECU control box manufacturers for this effort. The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the item to create a competitive package. It is estimated that 25% savings could be achieved by adding another supplier. At the current usage rate of 21 units per year, at the current unit cost of $39,711.04, and assuming the 25% saving achieved thru competition, the $208,483 annual savings would take approximately 11 years to offset the estimated $2,200,000 cost of reverse engineering the item and qualifying another source.

c. Demonstration of Approved Contractor's Unique Qualifications:

Marvin Land Systems is the sole owner of their technical data for this item, is the only approved manufacturing source, and is the Original Equipment Manufacturers (OEM) for the ECU control box assembly used in the Multiple Launch Rocket System (MLRS). The Government did not fund Marvin Land Systems in the design of their ECU control box and therefore does not own the TDP for the item, nor do we have the rights to their data, which would be needed to produce a competitive TDP. In addition, proper operation of this item when installed into the MLRS is critical, as it controls crew cab cooling thereby could adversely affect the crew in the performance of their mission if it failed.

d. Efforts to Qualify Additional Suppliers for future procurements:

As stated above, Marvin Land Systems owns all technical data rights for their component.

Reverse Engineering is the only recourse the US Government could entertain. No efforts to obtain competition for this acquisition will be taken for the reasons stated above. Complete Level III TDPs, suitable for competition, are not available for purchase. Further, there is no funding to qualify additional ECU control box manufacturers for this effort. The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the item to create a competitive package. Contractors can seek qualification for this

DEFENSE LOGISTICS AGENCY J&A: SPRDL1‐18‐R‐0427

PART VI - 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: Environmental Control Unit (ECU), Control Box Assy

b. QUANTITY:20

OPTION QUANTITY:20

c. NSN: 4130-01-549-0408

d. PN: 12488417, MPN: 306-9011

e. VEHICLE SYSTEM: Multiple Launch Rocket System (MLRS)

f. ESTIMATED UNIT PRICE:

g. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

Previous J&A

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: 18 May 2018