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DEFENSE LOGISTICS AGENCY J&A: SOLICITATION SPRDL1-19-R-0030

No prior J&A

DEFENSE LOGISTICS AGENCY

LIMITED SOURCE JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Defense Logistics Agency-Warren (DLA-WRN) is the contracting activity for this procurement.

2. Description of Action: This action is proposed to award a sole source contract to support the Nett Warrior System sustainment commands, depot maintenance and new build programs. The Government intends to issue a firm fixed price contract, on a sole source basis, to Secure Communication Systems, Inc., (Cage: 40828) the current supplier.

Army Working Capital Funds (AWCF) will be used for this effort. Performance will start approximately eight weeks after receipt of contract based on production lead times.

3. Description of Supplies/Services: The Nett Warrior (NW) Basic Hub, NSN 6150-01- 649-1133, is an item that supports the Nett Warrior Soldier System. Nett Warrior provides integrated dismounted Soldier worn Mission Command (MC) and Situational Awareness (SA) capability to the tactical dismounted formation that is currently deployed in all other platforms (Air, Aviation, Tank, Bradley, and Stryker). Nett Warrior enhances small-unit effectiveness allowing leaders to apply combat power more efficiently. This requirement is for the procurement of the NW Basic Hub (Part Number 11193-100-01) manufactured by Secure Communication System, Inc. . The NW Basic Hub is an essential piece of integrated hardware that is part of the Nett Warrior Soldier System. The NW Basic Hub enables Soldiers to communicate for longer periods of time in combat environments. Nett Warrior uses commercial off the shelf items with tactical applications networked through the NW Basic Hub to provide dismounted leaders situational awareness (SA) during combat operations. NW provides SA/Understanding to the dismounted leader (Team Leader & above) allowing faster, more accurate decisions in the tactical fight and connecting the dismounted leader to the Network in BCTs and the Basic Hubs are a critical piece of hardware in facilitating that capability. To ensure interface within the Nett Warrior Systems and to allow for part interchangeability, Secure Communication System, Inc. has the only equipment that will satisfy the Government's need at this time.

Details as follows:

Noun: Nett Warrior Basic Hub

Quantity: 1600 EA

NSN: 6150-01-649-1133

Estimated Unit Price:

Estimated Total Value:

PRON: S68E0463EH

Type of Funds: AWCF

Type of Contract: Firm Fixed Price

Acquisition Method Code (AMC): AMC 3. Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer.

Acquisition Method Suffix Code: (AMSC): 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. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

4. Authority Cited: 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."

5. Reason for Authority Cited: Secure Communication Systems, Inc. is uniquely qualified to fulfill the requirement of this proposed contract based on the following:

a. Secure Communications Systems, Inc. is the only responsible source that produces the Basic Hub that complies with the technical and logistical requirements of the Nett Warrior systems. The Army has a need for these Basic Hubs in order to provide power and data transfer among NW components.

b. N W B a s i c H u b s are an essential support equipment to the Nett Warrior Soldier System. The Nett Warrior system uses the Basic Hub as a means to communicate with other Soldiers using the Nett Warrior system. The Basic hub hooks up to an external battery which then provides power and date transfer to the 154 Radio and End User Device, which is a commercial smartphone. Therefore, it provides the Soldiers more battery power for their missions and is a critical piece of equipment. Inadequate communication and situational awareness during combat operations directly affects Warfighters’ safety, morale and severely impairs their ability to perform their mission.

6. Efforts to Obtain Competition: The market research and patented technology used by Secure Communication Systems, Inc., indicate that Secure Communication System, Inc.

is the only responsible source for this equipment. This effort will be synopsized on FedBizOpps per FAR 5.201(a) – Synopses of Proposed Contract Actions to find additional sources of supply. Based on the specialized nature of the equipment to be procured, no additional efforts will be made to obtain competition at this time. Any competitive effort would result in a significant delivery delay, and would subject Warfighters to avoidable risks.

The Basic Hub is proprietary to Secure Communication System, Inc. Reverse engineering the part could infringe on Secure Communication System’s proprietary rights. Time to complete reverse engineering is estimated to take 14 months. This includes design, fabrication, production, testing, and evaluation. Estimated cost to reverse engineer the item, including labor, materials, testing and evaluation is approximately $623,000.

7. Actions to Increase Competition: As stated above, there is no TDP available to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered, the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research: Market Research was completed by the item manager on 20 February, 2019. As stated previously, the Army seeks latest technology to fulfill needs to the Nett Warrior System and has ongoing process of researching similar/like items that can fulfill the Army’s needs. Websites like Google, WEBFLIS and Haystack have been utilized towards market research.

NSN 6150-01-649-1133 was previously solicited under SPRDL1-18-Q-0461 for 300 each and only one quote was received from Allied Defense Industries (0GD25) offering the product of the approved source, Secure Communications (40828). Solicitation SPRDL1-18-Q-0461 was issued on 7/31/2018 and closed on 8/31/2018.

Information received regarding the commerciality of the item: The Contract Specialist queried Google and the only information on part number 11193-100-01 is available from Government sources. Based on the lack of publicly available information about this NSN, the Contracting Officer has determined that 6150-01-649-1133 is not commercial.

9. Interested Sources: There has not been any expressed interest by any known contractors to become a qualified source to produce the Nett Warrior Basic Hub (PN: 11193-100-01).

The notices required by FAR 5.201 shall be or have been published, and any bids or proposals received shall be considered.

10. Other Facts:

Acquisition data availability: The technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed for this item. This equipment is a mandatory part of the Nett Warrior Soldier System Reset and New Build programs.

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."

Title: Engineer

Date: 5/23/19

Signature:

///SM ///

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."

Title: Nett Warrior Item Manager

Date: 5/23/19

///DK///

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost 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 estimated total value of this solicitation is below $2M, therefore certified cost or pricing data will not be obtained pursuant to FAR 15.403- 1(c) Deviation per DAR Tracking Number: 2018-O0015, Effective 01 July 2018, contracting officers shall use $2 million as the threshold for obtaining certified cost or pricing data, in lieu of the threshold of $750,000.

Name: Robert T. Harris M.S.

Title: Contracting Officer

Date: May 24, 2019

14. Contracting Officer 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."

Name: Robert T. Harris M.S.

Title: Contracting Officer May 24, 2019

15. Legal Concurrence:

Concur:

Date: 5/24/2019

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:

Noun: Nett Warrior Basic Hub

Quantity: 1600 EA

NSN: 6150-01-649-1133

Estimated Unit Price:

Estimated Total Value:

PRON: S68E0463EH

Type of Funds: AWCF

Type of Contract: Firm Fixed Price

Acquisition Method Code (AMC): AMC 3. Acquire directly from the actual manufacturer, whether or not the prime contractor is the actual manufacturer.

Acquisition Method Suffix Code: (AMSC): 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. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

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:

Title: Competition Advocate, DLA Land and Maritime

SHEARER.MARY.E.1250702449 Digitally signed by SHEARER.MARY.E.1250702449 Date: 2019.05.31 14:45:42 -04'00'