JA_SPRDL119R0070_Redacted.pdf

J&A SPRDL1‐19‐R‐0070

Prior procurements were competitive therefore no previous J&A is available

Defense Logistics Agency Justification and Approval for

Other Than Full and Open Competition

1. Contracting Activity: DLA Land, Warren, is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to award a new hardware contract on a limited source basis to Honeywell Aerospace Cage Code 70210 for the procurement of a Moisture Trap. The Type of funds to be used is Army Working Capital Fund (C-AWCF). The type of contract is Firm Fixed Price.

3. Description of Supplies/Services: The item to be acquired under the proposed contract are new Moisture Traps for the continued support of the Abrams vehicle. The Moisture Trap is an integral part of the NBC fallout protection system used on all Abrams vehicles. It is a component of the vehicle’s condenser, anti-ice assembly. The total estimated contract value with option is for up to 200 Moisture Traps. For this contract, the deliverables are as follows:

a. NOUN: Moisture Trap

b. NSN: 4730-01-215-0498

c. P/N: 12336779

d. Manufacturer P/N:195940-2-1

e. Quantity: 100

f. Option Quantity: 100

g. Estimated Unit Price:

h. Estimated Value:

i. Estimated Total Value:

j. PRON: EH8E1213EH

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

Acquisition Method Suffix Code: (AMSC): C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) Section 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: Component (Moisture Trap), Army Part Number 12336779 extracts moisture from the vehicles NBC condenser in order to prevent ice from accumulating in the service lines that provide air to the crew. Although a detailed TDP exists, due to the stringent critical performance requirements discussed in the below paragraph, Honeywell Aerospace is the only qualified vendor at this time.

Only the vendor Honeywell Aerospace has the requisite technical and engineering expertise to perform all efforts required to provide the item identified in this J&A. The current supplier Honeywell Aerospace has qualified in accordance with all the necessary test requirements and performance parameters shown on specification SC12336812 (Critical Item, Fabrication Specification For Air Cycle System Assembly). The moisture Trap when secured to the air cycle system assembly must withstand:

. The approved source identified above has demonstrated the ability to establish and maintain the processing required to produce this item. An award to any other source would cause a substantial duplication of costs to the Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling Abram's fielding requirements. Qualification is required because a failure of the Moisture Trap during use of the NBC system would result in freezing of the service air lines causing a decrease in air flow to the crew.

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. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes before releasing the design. This delay would severely impact the availability of the Moisture Trap in the field and Anniston Army Depot's rebuild program. The Moisture Trap, P/N 12336779 is critical to Abrams vehicle readiness. Through our previous experience, we estimate that the cost to test this Moisture Trap P/N 12336779 as described above per specification SC12336812 at Yuma Proving Grounds on three vehicles for 6,000 miles each could take approximately 13 months and is estimated to cost In summary, the cost

The Government would probably not be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. It is estimated that savings could be achieved by adding another supplier. With an expected annual demand average of units per year, at the current unit cost of and assuming the saving achieved through competition, the annual savings would take 5.3 years to offset the estimated cost of reverse engineering the item and qualifying another source.

As a mission critical item for the M1 Abrams series, the Government cannot wait the estimated 15 months to qualify a new source as there is an immediate need for the parts. This procurement is to fulfill the Authorized Stock List requirements in support of the M1A1 fielding plan. Due to the long lead time on the Moisture Trap, vehicles would be non-mission capable if a failure were to occur. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts to support the fielding schedule requirements of this procurement.

6. Efforts to Obtain Competition:

(a) Effective Competition: Per section 7, potential vendors can submit requests to become a source through the Source Approval Process at any time. Per section 9, a Sources Sought Synopsis was posted. Based on the detailed rational provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action.

(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition: Due to the costs associated with testing additional vendor parts a competitive TDP cannot be recovered as stated in section 5. The Government is not actively pursuing the development of a competitive TDP for future procurements. The Government would not be able to recover the to reverse engineer and qualify the Moisture Trap within a reasonable time frame.

This item, Moisture Trap NSN: 4730-1-215-0498 does not appear on the Competition Advocates Shopping List dated 08/31/2018. Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

8. Market Research: Market research was completed by TARDEC Engineering on 15 Oct 2018 by reviewing the capabilities of vendors with expertise in this field to include, Parker Hannifin Instrumentation Products Div., Lockheed Martin, Boeing and Northrop Grumman Corp. Review of the vendors listed above showed that although these companies have technical capabilities to produce the Moisture Trap, part number 12336779, they don’t provide the exact type of component needed. New vendors would require extensive analysis, prototyping, and vehicle testing as described in section 5 above to ensure that the Abrams will properly meet performance specifications with a new supplier’s hardware. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source. There are no other sources who have the potential to make this Moisture Trap to meet the needs of an immediate procurement. TARDEC Engineering also contacted the source controlled vendor Honeywell Aerospace currently listed on drawing 12336779 and verified they still produce the Moisture Trap.

Sources Sought Synopsis was posted to Fed Biz Opps on October 19, 2018 Item Name: Trap, Moisture

NSN: 4730-01-215-0498

Part Number: 12336779, 195940-2-1 End Item: M1 Abrams Tank

Fed Biz Opp Link:

https://www.fbo.gov/notices/e42969029440933175bd2e47459adfc5

9. Interested Sources: To date, no other sources have expressed a written interest in qualifying as a source of supply. Sources Sought Notice 2019-053 was posted to Fed Biz Opps on 19 Oct 2018 for component Moisture trap, NSN 4730-01-215-0498, Part Number, 12336779. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement History:

DATE: 6/26/2012 – 09/15/2010 – 04/10/2009 – 10/21/2005 (BPA)

CONTRACT: FA822211G0001

SOURCE RESTRICTED

DATE: 10/07/20002

CONTRACT: F4260002G002

SOURCE RESTRICTED

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.

The POC for this action is

Name:

Title:

Signature: //S//

Date: 18 January 2019 Email:

12. Requirements Certification: Include the following statement:

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:

Title:

Signature: //s//

Date: 6 Nov 18

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.

Typed Name: Timothy A. Nichols Title: Contracting Officer Signature: //TAN//

Date:

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement:

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

Name: Timothy A. Nichols Title: Contracting Officer Signature: //TAN//

Date: 1/25/2019

15. Legal Concurrence

Concur:

Date: 01/29/19