JA_SPRDL1-18-R-0601_Redacted.pdf

J&A SPRDL1-18-R-0601

(Previous J&A SPRDL1-11-C-0128 is available in the contract file.)

Defense Logistics Agency Justification and Approval for Other Than Full and

Open Competition

1. Contracting Activity: The contracting activity responsible for this action is DLA Land - Warren.

2. Description of Action: The proposed action is to award a contract on a sole source basis to Kearfott Navigation & Guidance Corporation, Cage Code 05088, for the manufacturing of new “400 HZ Sine Wave Supply Circuit Card Assembly” The type of funds to be used are Army Working Capital Fund (AWCF). The type of contract is Firm Fixed Price.

3. Description of Supplies/Services:

PRON Number: EH8E1108EH

Noun: 400 HZ Sine Wave Supply Circuit Card Assembly (CCA)

NSN: 5998-01-288-9994

Part Number: 9377513

Quantity: 281 EA

Option Quantity: 281 EA

Unit Price: $ EA

Estimated Total Value: $

Estimated Total Value with Option: $

Vehicle system: M1A1 Abrams Tank

Acquisition Method Code (AMC): 3 - Acquire, for the second or subsequent time, directly from the 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: The customized military-grade 400 HZ Sine Wave Supply Circuit Card Assembly (CCA) (P/N: 9377513) is a vital part of the LOS Electronics Assembly (LOS EA) (P/Ns: 13013000; 12281256) which is used on the M1A1 Abrams Tank US, AUSTRALIA, EGYPT, IRAQ.

The Technical Data Package (TDP) acquisition production specification data is not fully defined because the drawings do not give enough information to actually design the item. Therefore, the drawings are inadequate for production without access to Kearfott Navigation & Guidance Corporation (CC: 05088) design and procedures.

The customized military grade 400 HZ Sine Wave Supply CCA was developed and tested at Kearfott Navigation & Guidance Corporation expense, so Kearfott Navigation & Guidance Corporation owns the rights to the design.

No contractor other than Kearfott Navigation & Guidance Corporation has been approved to manufacture and sell the 400 HZ Sine Wave Supply CCA to the government.

Based on the above information, sole source procurement to Kearfott Navigation & Guidance Corporation is the only method of procurement currently available to insure supportability of fielded vehicles.

6. Efforts to Obtain 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.

Interested contractors will be referred to the Source Approval Program though the Competition Advocate’s Office for information on becoming a qualified source of supply.

There has not been any expressed interest by any known contractors to become a qualified source to produce this 400 HZ Sine Wave Supply CCA.

7. Actions to Increase 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. In addition to not having the information necessary to develop a competitive TDP, ARDEC-RI engineers estimate 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: $450,000 Estimated time associated with reverse engineering: 12 months Estimated costs associated with the development of qualification procedures: $300,000 Estimated time associated with the development of qualification procedures: 12 months Estimated costs associated with the conducting engineering analysis: $450,000 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 one million two hundred thousand dollars ($1,200,000) which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for reverse engineering 400 HZ Sine Wave Supply CCA (P/N: 9377513); the preparation of qualification procedures and for the engineering analysis to determine if a new source met the qualification procedures is at least thirty-six 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 deadlines the M1A2 Abrams Tank M1A1 Abrams Tank US, AUSTRALIA, EGYPT, IRAQ which would cease to function and in turn deprive the Tank crew’s ability to fight.

This will not be a government funded reverse engineering effort because Kearfott Navigation & Guidance Corporation has more than enough customized military grade 400 HZ Sine Wave Supply CCA’s available.

8. Market Research: On August 27, 2018, the ARDEC-Rock Island CMO/Engineer conducted computer based market research for the customized military grade 400 HZ Sine Wave Supply CCA’s. The results of this search 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.

Sources Sought Synopsis was posted to Fed Biz Opps on 08-03-2018 Component: CIRCUIT CARD ASSEMBLY

NSN: 5998-01-288-9994

Part Number: 9377513 End Item: JE FBO Post:

https://www.fbo.gov/index?s=opportunity&mode=form&tab=core&id =c9fb6ade7706f4ff2a50d1904ccd1640

15. Legal Review:

Concur

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: CIRCUIT CARD ASSEMBLY

b. NSN: 5998-01-288-9994

c. Basic Quantity: 281 EA

d. Basic Estimated Value: $

e. Option Percent: 100%

f. Quantity with Option: 562 EA

g. Estimated Value with Option: $

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:

SHEARER.MA

RY.E.1250702

Digitally signed by

SHEARER.MARY.E.1250

702449 Date: 2018.11.07 07:32:28 -05'00'