JA_SPRDL1-18-R-0603_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-18-R-0603

Prior Approved J&As are available.

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 firm fixed price contract for Power Supplies for the Tank, M1A2 Abrams Family of Vehicles. Competition will be limited to Rantec Power Systems Inc., (CAGE Code: 60132). This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services:

Noun: Power Supply IDID-IGCDP, NSN 6120-01-619-1559. P/N 12473977-3 (Vendor P/N:

PL29478 REV F). Estimated unit price is Basic Quantity is 462 and also includes a 200% option which will give the Government the opportunity to purchase up to 924 additional units (1,386 total). Basic estimated value of the item is Estimated value with option is

Noun: Power Supply IDID-IGCDP, NSN 6120-01-535-5573. P/N 12467385-2 (Vendor P/N:

PL29477). Estimated unit price is Basic Quantity is 109 and also includes a 200% option which will give the Government the opportunity to purchase up to 218 additional units (327 total). Basic estimated value of the item is Estimated value with option is

Estimated Total Basic Value =

Estimated Total Value with options =

The Government intends to award a Firm Fixed Price contract to Rantec Power Systems Inc, CAGE 60132. 1173 Los Olivos Ave, Los Osos, CA, US 93402-3230.

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

Acquisition Method Suffix Code: (AMSC): B – These parts 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 this action is 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (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 Power Supplies (P/Ns: 12473977-3 and 12467385-2) are vital parts of the Improved Driver’s Integrated Display (IDID) (P/N: 12467509-3) which is used on the M1A2 Abrams Continuous Electronics Enhancement Program (CEEP) which comprises of the latest System Enhancement Package (SEP) and the Tank Urban Survivability Kit (TUSK).

The government only has limited rights in the Technical Data Packages (TDPs) for the customized Power Supplies. This Technical Data is inadequate for competitive procurement because they are only source controlled top drawings with one approved source of supply and the drawing does not disclose the information necessary to competitively build the Power Supplies.

The technical data for the unique military grade Power Supplies was developed, designed, built, and tested at Rantec Power Systems Inc expense. This item is proprietary to Rantec Power Systems Inc (CAGE Code: 60132), who is the original equipment manufacturer.

Thus, the Government does not own a competitive TDP for this item, and no other contractor can viably provide this item to be used on the M1A2 Abrams Tank Continuous Electronics Enhancement Program (CEEP).

Based on the above information, sole source procurement 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.

The Competition Management Office (CMP) will encourage interested parties to submit a Source Approval Request (SAR) for this time for future buys.

There has not been any expressed interest by any known contractors to become a qualified source to produce this Power Supply.

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 engineer estimates that the cost to develop a competitive package for this item through reverse engineering, qualification procedures and engineering analysis are listed below:.

Part Number: 12473977-3

Estimated costs associated with reverse engineering: $550,000

Estimated time associated with reverse engineering: 12 months

Estimated costs associated with the development of qualification procedures: $400,000

Estimated time associated with the development of qualification procedures: 12 months

Estimated costs associated with the conducting engineering analysis: $675,000

Estimated time associated with the development of qualification procedures: 12 months

The aggregate cost of reverse engineering; writing the qualification procedures and conducting an engineering analysis would be at least one million six hundred twenty-five thousand dollars ($1,625,000) which would not be recovered through subsequent competition.

Part Number: 12467385-2

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: $400,000

Estimated time associated with the development of qualification procedures: 12 months

Estimated costs associated with conducting engineering analysis: $475,000

Estimated time associated with 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 one hundred twenty-five thousand dollars

($1,125,000) which would not be recovered through subsequent competition.

The aggregate delay in the acquisition process for reverse engineering, developing vendor qualification procedures, and for the engineering analysis to determine if a new source meets the qualification procedures is at least 36 months. The Power Supply is an integral part of the Improved Driver’s Integrated Display (IDID); thus, a delay of this scale would cripple the Improved Driver’s Integrated Display (IDID), and hinder its ability to fight. Consequently, this unacceptable delay would have a significant detrimental impact on the US Army’s ability to support its soldiers in the field, potentially resulting in injuries or lost lives.

Note: This will not be a government funded reverse engineering effort because Rantec Power Systems Inc has more than enough customized military grade Power Supplies 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. This duplication of cost would not be recovered through subsequent induction of future M1A2 Abrams Tank Continuous Electronics Enhancement Program (CEEP).

8. Market Research:

Part Number: 12473977-3

Part Number On August 21, 2018, the ARDEC-Rock Island CMO/Engineer conducted computer based market reserach for the customized military grade Power Supply. 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.

Part Number: 12467385-2 On December 19, 2017, the ARDEC-Rock Island CMO/Engineer conducted computer based market research for the customized military grade Power Supply. 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.

9. Interested Sources:

A sources sought synopsis (Sources Sought Notice number: 2018-689) was posted to FedBizOpps on August 10, 2018. These remain valid for one year. To date, no responses from any interested sources of supply have been received. Interested contractors will be referred to the source approval program though the competition advocate’s office.

2018-689.pdf

This procurement action was synopsized in FedBizOpps on August 10, 2018 as required by FAR 5.201(c), to improve access to acquisition information and to enhance competition by identifying subcontracting opportunities. To date, no responses have been received.

10. Other Facts: These two items had been previously solicited as two separate procurements under Requests for Proposal SPRDL1-18-R-0471 (Part Number 12473977-3) and SPRDL1-18- R-0603 (Part Number 12467385-2). These requests for proposal were for two separate Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts. However, Rantec will not agree to long-term

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 dollar value of this procurement, certified cost and pricing data will be required IAW FAR 15.403.

Typed Name: Cynthia M. Fellows Date: 21 December 2018 Title: Chief, Acquisition Division A Signature: Cynthia M. Fellows /s/

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Cynthia M. Fellows Date: 21 December 2018 Title: Chief, Acquisition Division A Signature: Cynthia M. Fellows /s/

15. Legal Review:

Concur:

Date: 12/21/2018

Approval Authority for Acquisitions Equal to or Greater Than $13.5M

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: Power Supply (Part Number 12467385-2)

b. NSN: 6120-01-535-5573

c. Basic Quantity: 109

d. Estimated Basic Value:

e. Option Quantity: 327

f. Estimated Option Value:

g. Estimated Total Value:

h. Noun: Power Supply (Part Number: 12473977-3)

i. NSN: 6120-01-01-619-1559

j. Basic Quantity: 462

k. Estimated Basic Value:

l. Option Quantity: 924

m. Estimated Option Value:

n. Estimated Total Value:

o. Total Contract 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:

Mark A. Brown, SES Acquisition Executive

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.01.02 08:09:04 -05'00'