JA_SPRDL1-19-R-0072_Redacted.pdf

J&A SPRDL1-19-R-0072

(Previous J&A SPRDL1-17-R-0073 is available and embedded in document)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

EH8E1635EH

1. Contracting Activity: The Contracting Activity for this action is DLA Land Warren.

2. Description of Action: The proposed contract action is to secure a firm fixed price contract for Motor Brake Assembly used on the M1A2 Abrams, with a 100% option using AWCF funding.

3. Description of Supplies/Services:

Noun: MOTOR BRAKE ASSEMBL

NSN: 1015-01-614-6956

Part Number: MTM-10652

Quantity: 29

Option Quantity: 29

Unit price:

Vehicle system: Abrams M1

Total Value:

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

Acquisition Method Suffix Code: (AMSC): D The data needed to produce this item from additional sources is not physically available. Valid AMCs: 3, 4 and 5.

4. Authority Cited: This procurement is being issued under the authority of 10 USC

2304(c)(1) as implemented in FAR 6.302-1, Only One Responsible Source and No Other Can

Satisfy Agency Needs

5. Reason for Authority Cited

This item, Motor Brake Assembly, is a critical component of the M1A2 Abrams Family of

Vehicles. This item is source controlled (only one approved source) to Merrill Tool & Machine

(CAGE Code: 3DTR4), who is the original equipment developer and manufacturer. The

Government does not own proprietary rights to Merrill Tool & Machine’s data that would be required to produce a competitive TDP. The current Motor Brake Assembly source control drawing, drawing No. MTM-10652, does not contain adequate technical data and/or information necessary to support competition. Merrill Tool & Machine is the original equipment manufacturer and the only known source that possesses the required technical knowledge and engineering expertise to successfully manufacture this item for use in a military system. Merrill Tool & Machine developed, tested and obtained the Government's approval of this item for the M1A2 Abrams’ Motor Brake Assembly at their own expense. The

Government did not fund Merrill Tool & Machine’s efforts in developing and testing this item.

Additionally, the Government did not fund Merrill Tool & Machine to prepare fully detailed

TDPs. As such, Merrill Tool & Machine is the sole owner of their drawings and technical data rights. The Government does not own proprietary rights to the Merrill Tool & Machine data that would be required to produce a competitive TDP.

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 technical data package

(TDP) for this item through reverse engineering could run as high as 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 and take about 12 months for the U.S. Army/ARDEC engineers to develop government’s requirements for the prospective contractor to produce and qualify the items listed in section 3. Finally, it would cost and take at least 24 months to conduct the actual Engineering analysis to determine if a new source has become approved in accordance with the newly competitive TDP. This would include the cost for any additional test equipment or fixtures, higher level assemblies and or end item systems, required to test this part and any costs for test facilities as applicable.

The total cost associated with developing a competitive TDP, to include reverse engineering, developing government’s requirements and engineering analysis would be at least 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 60 months. A delay of this scale is not considered acceptable in fulfilling the army’s requirements and would have a 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.

Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering effort at this time. These stated costs would be very difficult to be recouped through subsequent competition and the consequential time delay for this effort is unacceptable to meet the Government's requirements.

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. Currently, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

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

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

(CMO) will encourage interested parties to submit a Source Approval Request (SAR) for this time for future buys.

8. Market Research:

In August 2018, computer based market research was performed by ARDEC Engineering.

Based on the results of the market research, ARDEC Engineering determined the Motor Brake

Assembly, MTM-10652, is a unique military item that is unavailable from sources other than the OEM. While similar commercial items exist and are used in heavy machinery, no direct replacement exists and any new source would need to undergo testing to insure that it is compatible with this military application. As is stated above, any interested source will be directed to the Source Approval Program though the Competition Advocate’s Office.

A sources sought synopsis was posted on FedBizOpps as 2018-697 on August 14, 2018.

Sources

Sought_2018-697.p

POC:

9. Interested Sources:

There has not been any expressed interest by any known contractors to become a qualified source to produce the Motor Brake Assembly (PN: MTM-10652). 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: 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-0019

NSN: 1015-01-614-6956

Award Date: 10/11/2017

Contractor: T & L SALES, LLC (distributor of OEM component)

Value: $477,567.87

Competitive Status: Sole Source

Authority Cited: FAR 6.302-1, Only One Responsible Source

Prior

JA_SPRDL117R0073.

b. Acquisition data availability. The Government does not own or have rights to the technical data for the Motor Brake Assembly used on M1A2 Abrams for this procurement.

c. Subcontracting competition: The government will require the awarded contractor to submit a subcontracting plan, and the award will include the competition in subcontracting clause (FAR 52.244-5).

d. Note: Previous J&A was IAW FAR 6.302-1 due to the lack of technical data

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.

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.

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the results of a detailed cost and or price analysis. The contractor will be required to submit certified cost and pricing data IAW FAR

15.403-4 as the expected value of this procurement falls within the threshold. This item is non-commercial.

Typed Name: Timothy A. Nichols Date: 9 January 2019

Title: Signature: //TAN//

14. Contracting Officer Certification:

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

Typed Name: Timothy A. Nichols Date: 9 January 2019

Title: Signature: //TAN//

15. Legal Certification: