JA_SPRDL1-18-R-0475_2019_REDACTED.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-18-R-0475

Previous J&A SPRDL1-16-R-0363 is available and embedded in document

Justification and Approval for Other Than Full and

Open Competition

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

Agency-Warren (DLA-WRN)

2. Description of Action: The proposed action is to award a new contract with option for

Hydraulic Manifold Assembly. Competition will be limited to ONTIC Engineering and

Manufacturing Inc. (cage 45934). This action will be funded with Army Working Capital

Funds (AWCF).

3. Description of Supplies/Services

The contractors shall provide the Hydraulic Manifold per part number listed in Table 1. The unit value is $ and quantity of this contract is: Guaranteed Minimum Quantity: 15;

Estimated 5 Year Maximum Quantity: 494. The estimated minimum value of the contract is

$ , and the estimated 5 year maximum value is $ .

The Hydraulic Manifold Assembly is a critical component of the turret that is used in the

M1A2 ABRAMS FOV.

Table 1 – part number

NSN NOMENCLATURE P/N

4730-01-599-2157 Manifold, Hydraulic 12522081/200134-5

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

10 USC 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:

TMS/HPDV Manifold Assembly, PN 12522081, vendor PN 200134-5, which is manufactured by ONTIC Engineering and Manufacturing Inc., is a critical component that is used in the

M1A2 ABRAMS FOV.

This item is a source-controlled item (sole source) to ONTIC, Inc. (CAGE Code: 45934). The

Government does not have fully detailed level III TDP or performance specification that is sufficient to allow full and open competition of this item.

The manifold assembly should be procured from ONTIC Inc. as the current product drawing/TDP does not fully disclose complete technical requirements/information to be used in a full and open competition. In order to develop a competitive TDP, considerable engineering efforts would have to be expended to develop a comprehensive performance specification and/or conduct reverse engineering of the manifold assembly. ONTIC is currently the only contractor who has the required technical and engineering knowledge, production facility expertise, internal configuration control, overall management capability and quality testing capabilities necessary to produce this manifold assembly per the current TDP.

In the absence of a fully competitive TDP, an award to any sources other than ONTIC

Engineering and Manufacturing Inc. is not considered feasible at this time.

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 package for this item through reverse engineering could run as high as $1,000,000 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 $500,000 and take about 12 months for the U.S. Army/ARDEC engineers to develop government’s requirements for the prospective contractors to produce and qualify the item listed in section 3. Finally, it would cost $500,000 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.

The overall costs associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements, and engineering analysis would be at least $2,000,000.00 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 48 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.

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. The funding associated with qualifying a new source is not expected to be recovered through subsequent competition.

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

8. Market Research : In Mar 2018, the assigned engineer, conducted computer based market research for the Manifold Assembly. Based on this research, the lack of a developed TDP and his overall experience and knowledge of Abrams FOV in general, a determination was made that no valid alternate item can be substituted at this time.

A Sources Sought Synopsis was posted to Fed Biz Opps on 21 Mar 2018

Component: TMS/HPDV Manifold Assembly

NSN: 4730-01-599-2157

Part Number: 12522081

End Item: Tank, MlA2 Abrams family of vehicles

The POC for this action is , General Engineer, Ext. 0242.

9. Interested Sources: To date, no other sources have written to express an interest.

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: SPRDL1-18-C-0092

Award Date: 01/18/2018

Contractor: Transaero (provided ONTIC’s P/N)

Value: $4,291,251.06

Authority: FAR 6.302-1, Only One Responsible Source

b. 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: Date: _2 April 2018

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

Email

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: 4/18/18

Title: Item Manager

Signature: //

Typed Name:

Date: 18-Apr-2018

Title: M1A2 Team Leader

Signature: //s//

13. Fair and Reasonable Cost Determination: Include the following 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. Due to the estimated dollar value, certified cost and pricing data will be required in accordance with FAR 15.403.

Typed Name: Jeffrey J. Mahlmeister

Title: Contracting Officer

Signature: //JJM//

Date: 06/02/2018

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: 06/02/2018

15. Legal Concurrence:

Concur: // //

Date: 06/05/2018

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: Manifold Hydraulics

b. NSN: 4730-01-599-2157

c. Guaranteed Minimum Quantity: 15

d. Estimated Minimum Value: $

e. Estimated 5 Year Maximum Quantity: 494

f. Estimated Maximum 5 Year Value: $

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: 8 Jun 2018