JA_SPRDL1-19-R-0117_Redacted.pdf

J&A SPRDL1-19-R-0117

(Previous J&A SPRDL1-14-R-0173 is available.)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-19-R-0117

1. Contracting Activity : Defense Logistics Agency - DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to secure a 5 Year Indefinite Delivery Indefinite Quantity (IDIQ) contract for the manufacturing of Electronic Modules. Competition will be limited to OECO, LLC DBA: Pacific Scientific OECO (Cage Code: 02101) and authorized distributors. The type of funds to be used are Army Working Capital Fund (C-

AWCF).

3. Description of Supplies/Services: This award is for the procurement of Electronic Modules.

The total estimated contract value is $ for up to 228 IAs. For this contract, the deliverables are as follows:

NOUN: Electronics Module

a. NSN: 5963-01-505-8634

b. PN: 12386632-1

c. QUANTITY MIN: 6

QUANTITY MAX: 228

d. ESTIMATED UNIT PRICE: $

e. ESTIMATED MIN VALUE: $

ESTIMATED MAX VALUE: $

f. PRON: EH9L0143EH

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

Acquisition Method Suffix Code: (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 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:

TACOM-Warren has one drawing for the Electronics Module, drawing #19207-12386632.

The drawing is source controlled to Pacific Scientific Electro Kinetics Division. The Government does not have a set of drawings that are suitable for competitive procurement.

This Electronics Module is part of the Pacific Scientific’s 400 amp DC Generator, #19207- 12386631 on the Diesel Power Unit (Electrical), P/N 12465990. The drawing is not a fully defined, competitive TDP for the following reasons:

The above identified approved source developed, tested, and obtained Government's approval of the Electronics Module for application to the Bradley’s 400 amp DC Generator (TACOM drawing 12386631) at their own cost. The government did not fund their efforts in developing and testing this item. Additionally, the Government did not fund them to prepare fully detailed TDPs after approval. As such, Pacific Scientific Electro Kinetics Division is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

At 28 Vdc, the generator is capable of providing up to 250 amperes at a minimum speed of 2,350 RPM and 400 amperes at 7,500 PRM. The Electronics Module is used on the 400 amp DC Generator to limit the output current and voltage on the generator. This limitation on the current is to prevent the generator from overheating and limit the peak torque to protect the slip clutch. The Government does not own the patent rights to their data that would be required to produce a competitive TDP for this item. The benefits of competition are insufficient to offset the increased risk to program objectives associated with using an Electronics Module from a new source, since the 400 amp DC Generator is produced from the same vendor, Pacific Scientific.

Due to the limited performance and technical data available on the Electronic Module, Reverse Engineering is the only recourse the Government could entertain to increase competition through development of a competitive TDP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. Further, there is no funding to develop and qualify additional Electronic Module manufacturers for this effort. The nature of this hardware requires significant qualification testing and even more system level testing. Even if a reverse-engineering effort is successful, the Government will incur excessive costs and lead-time delay. The cost to reverse-engineer the critical components is estimated at $4,600,000 and 2.5 years to complete (with Technical Data Package development simultaneous with system level test). Reverse Engineering the TDP includes, but is not limited to the following:

Estimated cost to reverse engineer: $1,500,000 Estimated time to reverse engineer: 1.5 years

Estimated cost to perform system level vehicle testing: $ 2,100,000 Estimated time to perform system level vehicle testing: 1 year

Estimated cost to develop a Technical Data Package: $1,000,000

Estimated time to develop a Technical Data Package: 1 year

The Government does not have the funds available nor would the Government 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. At the current usage rate of 24 per year, at the current unit cost of and assuming the 25% saving achieved through competition, the annual savings would take over 269 years to offset the estimated cost of reverse engineering the item and qualifying another source.

The consequential time delay of 2.5 years to reverse engineer, develop and test the new design and then qualify a new vendor would prohibit delivery of the Electronic Module in a time frame that would satisfy the Government's needs.

6. Efforts to Obtain Competition:

(a) Effective Competition: 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:

As stated in section 5 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 also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements.

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: DLA Land Warren conducted market research on 12 February 2019. The buyer contacted OECO (Cage Code: 02101) which stated that the item is not sold commercially, and confirmed the MFG P/N as 90704-2 or 90704-MOD. The government top drawing, 12386632, matches this research. OECO also stated that they have recently appointed Jamaica Bearings Group as their Military Spares Distributor.

The Electronic Module is part of the Generator System and is specific to the Pacific Scientific Generator. All past market research indicated that the assemblies are specific to a brand of Generator, and many are integrated, not for individual procurement. C.E. Niehoff Generators are used through out the Bradley fleet, but are being phased out. This generator has an integrated regulator that cannot be used on the Pacific Scientific generator. Jenoptik has military generators used on some tactical platforms, and can be customized, but again, the control of these generators is integrated and not a separate system. Extensive analysis, prototyping, and vehicle testing as described in section 5 above would need to be done to ensure that the Bradley 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.

Sources Sought Notice 2019-154

Item Name: Electronic Module

NSN: 5963-01-505-8634

Part Number: 12386632-1 Quantity: 6 MIN/ 228 MAX End Item: Bradley Fighting Vehicle FedBizOpps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=d4d1581e1bc65bb367f93dae3970c 72d&tab=core&_cview=0

Sources_Sought_N otice_2019-154.pdf

Market Research techniques IAW FAR 10.002(b)(2)(i) & 10.002(b)(2)(iv).

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2019-154 was posted to Fed Biz Opps on 07 January 2019 for the Electronic Module, NSN: 5963-01-505-8634, Part Number 12386632-1 as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement history:

Contract: SPRDL1-15-C-0159

Award Date: 6/26/2015

Contractor: OECO, LLC (Cage: 02101)

Value: $254,430.00

Competitive Status: Limited Source

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

Note: No significant changes were made to prior J&A.

JA_SPRDL1-14-R-01

73.pdf

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 , Engineer, , Name:

Title: Supervisory Team Lead-Medium Combat Sustainment Engineering

Date: 22 JAN 2019 Email

12. Requirements Certification: (To be filled by IM) 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: Team Leader Signature:

Date: 2/19/2019

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 expected value is below the certified cost or pricing threshold of 2 Million therefore FAR 15.403-

3 Requiring Data Other Than Certifed Cost or Pricing Data will apply. If an offer received is over 2 Million, the contractor will be required to submit certified cost and pricing data IAW FAR 15.403-4. This item is non-commercial. All required cost and/or price analysis will be conducted to determine the price fair and reasonable.

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

Date: 2/28/2019

14. Contracting Officer Certification: :

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: 2/28/2019

15. Legal Concurrence:

Concur:

Date: 3/8/2019