JA_SPRDL1-19-R-0093_REDACTED.pdf

J&A SPRDL1-19-R-0093

Justification and Approval for Other Than Full and

Open Competition

1. Contracting Activity: The Defense Logistics Agency – 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 sole source basis to Honeywell International Inc. (formerly Allied Signal), Cage Code 59364, for the procurement of a valve parts kit (NSN 4810-01-377-6936). 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: This award is for the procurement of new valve repair kits for the continued support of the Abrams vehicle. This component is part of the Abrams vehicle air temperature control system which provides effective cooling of the air supplied to the Nuclear, Biological and Chemical (NBC) cabin air filtration system. The total estimated long-term contract value is for up to 196 valve repair kits. For this contract, the deliverables are as follows:

NOUN: REPAIR KIT, VALVE ASSEMBLY, AIR TEMPERATURE CONTROL

a. NSN: 4810-01-377-6936

b. P/N: 5705518

c. Minimum Quantity: 9 Ea

d. Maximum Quantity: 196 Ea

e. Estimated Unit Price:

f. Estimated Minimum Value:

g. Estimated Maximum Value:

h. PRON: EH9L0020EH

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(a)(2)(ii)(A), “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The main component of this repair kit (5705518) is the valve

(P/N 12336775) which is more than 50% of the cost of the kit. This valve is an integrated part of the climate control/NBC system for the vehicle. Air that is bled off the turbine engine is cooled through the air cycle machine before passing through the NBC filter. The temperature of the air entering the NBC filter is controlled via feedback loop utilizing a temperature sensor and the temperature control valve. The temperature control valve adds moderate temperature air at the turbine discharge side of the system after the condenser to control the temperature of the air mixture.

Because the valve is integrated to the overall system and feedback loop, there are no off the shelf components available that could work with the system.

It must be designed to work within the temperature control feedback loop of the vehicle.

The Government does not own the build to print Technical Data Package (TDP) for this item.

While the Government owns a performance specification for the valve, it does not own the manufacturing data for the valve. Honeywell International, Inc. is the sole owner of the manufacturing technical data and the drawing is source controlled to Honeywell as well. The

Government does not own the rights to the technical data that would be required to produce a competitive “build to print” TDP. Only Honeywell International, Inc. has the requisite technical and engineering expertise to perform all efforts required to provide the item identified in this J&A. The current supplier has qualified in accordance with all the necessary test requirements and performance parameters shown on the drawing of P/N 12336775 SC (Critical

Item Product Function Specification For Valve, Temperature Control). 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.

In order to be competitive, any other source of supply is still required to produce, test, and receive Government approval of their proposed part prior to acquisition. A significant amount of time and money would be necessary to reverse engineer, procure, and test prototypes before releasing the design. Through previous experience, it can be estimated that the cost to develop a competitive package for the valve through reverse engineering could run as high as

$150,000.00 and could create an estimated delay in procurement of at least 12 months due to fabrication and testing of the prototype and releasing a validated TDP. Due to the aforementioned criticality of the NBC/Climate Control system, design validation and qualification is required to become an approved source. Qualification would require RAM test of 5,000 miles to verify the new design is robust and conforms to the performance specification at a cost of $750,000.00 and delay of 12 months. A full load cooling test would also be required at a cost of $282,000.00 and delay of 2.5 months. Total cost to develop and qualify a second source is approximated at $1,182,000.00 and a delay of 26.5 months. To do otherwise would be a high risk, The Government does not have the funds available nor will the Government recover the costs to reverse engineer the Temperature

Control Valve and qualify an additional source of supply. Also, this delay of over 4 years would severely impact the availability of the repair kit in the field and Anniston Army Depot's rebuild program.

The Government would not be able to recover, through subsequent competition, the additional costs associated with reverse engineering the item to create a new and competitive valve.

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 notice was posted. Based on the detailed rationale provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action.

Approving additional vendors will result in minimal additional cost savings in comparison to the additional cost required to qualify those additional sources.

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: As stated in section 5 above, a complete TDP and manufacturing knowledge are unavailable to support a competitive procurement. A TDP and the manufacturability details in theory could be developed, however, due to the costs associated with developing a competitive TDP and methodology that cannot be recovered also 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 money to reverse engineer and qualify the item within a justifiable time frame.

The kit, “REPAIR KIT, VALVE ASSEMBLY, AIR TEMPERATURE CONTROL”, NSN:

4810-01-377-6936 does not appear on the Advance Procurement Planning List (APPL) dated

08/31/2018. It does, however, appear on the Competition Advocates Shopping List (CASL) 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. Specific information and point of contact for the Source Approval Program is available at https://www.tacom.army.mil/cmo/sap.html. 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 16

November 2018 by reviewing the available products and capabilities of vendors with expertise in the field of modulating valves. Review of the following companies was performed: Parker

Hannifin at http://ph.parker.com/us/en/electric-valve-modulating-3-way-mtw-series, Siemens at https://w3.usa.siemens.com/buildingtechnologies/us/en/building-automation-and-energy-management/valves/pages/valves.aspx and Braeco at https://www.braecosales.com.au/product-category/automatedcontrolvalves/modulating-control/. Upon review it was determined that while the aforementioned vendors all have the capability to manufacture modulating control valves like P/N 12336775, they don’t have the exact component needed. New vendors would require extensive analysis, prototyping, and vehicle testing as described in section 5 above to ensure that the Abrams M1 will properly meet performance specifications with a new supplier’s hardware. It must be ensured that the new valve integrates with the feedback loop for the temperature control system exactly as the current valve does. The knowledge of this is not currently held by the Government and is owned by Honeywell International, Inc. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source. Further, the Government does not own the technical data to source an additional manufacturer. TARDEC Engineering also contacted the current source controlled vendor, Honeywell International Inc. currently listed on drawing 12336775, and verified they still produce the control valve.

Sources Sought Notice has been submitted to Fed Biz Opps on 11-15-2018

Component: Parts Kit, Valve

NSN: 4810-01-377-6936

Part Number: 5705518

End Item: M1A1 M1A2

Fed Biz Opps Link: https://www.fbo.gov/notices/0c3f6da0c36b9bd394c96c79c9dce3f7

Sources_Sought_N otice_2019-087.pdf

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2019-087 was posted to Fed Biz Opps

15 November 2018 for the Valve Repair Kit, NSN 4810-01-377-6936, Part Number 5705518 as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

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: W56HZV-07-C-0418

Award Date: 2007 May 16

Contractor: HONEYWELL INTERNATIONAL, INC.

Value: $124,404.00

Competitive Status: Limited Source

Contract: W56HZV-04-C-0116

Award Date: 2003 November 26

Contractor: HONEYWELL INTERNATIONAL, INC.

Value: $97,173.00

Competitive Status: Limited Source

Contract: F42600-02-G-0002

Award Date: 2002 May 21

Contractor: HONEYWELL INTERNATIONAL, INC.

Value: $101,182.25

Competitive Status: Limited Source

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:

Date: 31Dec2018

Email

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.

Typed Name: Date: 1/9/2019

Title: Signature:

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. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. Other than Certified cost and pricing data will be required to justify price reasonableness due to the dollar value of this procurement. The appropriate forms of cost and/or price analysis will be utilized and negotiations will be conducted, if necessary.

Typed Name: Jamal M. Brooks Date: __02/06/2019_________________

Title: Chief, Weapons / Soldier Branch Signature: __//s//_____________

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Jamal M. Brooks Date: ___02/06/2019________________

Title: Chief, Weapons / Soldier Branch Signature: ___//s//____________

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

Typed Name: Date: ____2/11/19_______________

Title: Signature: ___/ //____________