SPRDL1-21-R-0084_Redacted.pdf

SPRDL1-21-R-0084 (JA-00445)

No Previous J&A

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0084

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Merlin Power Systems, LLC, CAGE 6RST2, for National Stock Number (NSN) 6625-01-675-0290, Sensor Module, Shunt, Battery Monitoring System (BMS), using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The NSN 6625-01-675-0290, US Government Part Number (PN) 19207-12591117 / Manufacture PN 6RST2-SHT- 7201AB, Sensor Module, Shunt, BMS, is used on the M1A2 System Enhancement Program Version 3 (SEPv3) Abrams Tank. The deliverables for this contract are for a guaranteed minimum quantity of 25 each, with a maximum quantity of 750 each. The estimated guaranteed minimum value is $ and the total maximum value of this contract is $ .

The Shunt Sensor Module is part of the BMS. This item monitors the voltage and temperature of the batteries.

Acquisition Method Code (AMC):

4 - Acquire, for the first 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 for this effort is 10 United States Code (U.S.C.) 2304(c)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: The Shunt Sensor Module provides the capability to measure the current passing to a single pair of twelve-volt (12V) batteries, which are connected in series to give a twenty-four-volt (24V) vehicle supply, through insertion of a current shunt within the return current path. Additionally, the shunt sensor module provides pass-through connection of voltage and temperature sensor wires from individual battery pair sensor harnesses back to a control unit.

The Government does not have complete build to print Technical Data Package (TDP) nor does it have proprietary data rights to produce technical data needed to compete this item.

Only Merlin Power Systems has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this Justification & Approval (J&A). A substitute item cannot be used without prior approval by U.S. Army Tank-Automotive and Armaments Command (TACOM). It is a critical item of the M1 Abrams electrical systems and must meet the requirements specific to its intended function in accordance with Source Control Drawing 19207-12591117. This item assembly must meet the requirements and demonstrate compliance to performance, design, test, manufacture, and acceptance as specified in the Product Fabrication Specification (PFS) document SC-SA20480, including testing voltage current and temperature. This product is a survivability item and critical for Soldier safety.

Currently, Merlin Power Systems is the only approved source to make this item for the Government. Merlin Power Systems has tested and met all requirements of the performance specification SC-SA20480C. Merlin Power Systems is the sole owner of its build to print TDP. Reverse engineering is the only option for the Government to develop a build to print competitive TDP which is needed for full and open competition.

Reverse engineering is a multi-layered process; it requires the procurement and testing of prototypes and the release of the design. Additionally, extensive testing in conjunction with the overall electrical systems of the M1A2 SEPv3 Abrams tank is required to validate the TDP. The cost to reverse engineer this unique component is estimated at $9.021M and will take 42 months to complete. Reverse engineering the TDP includes, but is not limited to, the following:

Reverse Engineering Activity Delay Costs

Obtain existing part samples 9 months $21K Hardware design, integration and fabrication/install 12 months $1M Component and vehicle system testing, Quality Test 12 months $7.5M Documentation (Drawings/Engineering Change Proposal (ECPs)/Technical Manuals) 9 months $500K Total Estimated Time to Reverse Engineer 42 months $9.021M

Note: Estimations are based on Abrams Electrical Team assessments.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package, within a reasonable time. At the current usage rate of 99 units per year, at the current unit cost of $ each, and assuming 25% savings achieved through competition, the $ annual savings would take years to offset the estimated $9.021M cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5, The Government is not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan"; and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)”, to maximize small business opportunities and utilization.

SOLE SOURCE: Notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

As stated in section 5 above, there is no build to print TDP available to support a competitive procurement. This item is source controlled by Merlin Power Systems. This manufacturer owns the technical data and is the only approved source of supply for this item. Due to the duplication of costs to reverse engineer, procure and test prototypes, and release the design (also stated in section 5), the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 21 June 2021 and was open for 19 days with a closing date of 09 July 2021. One response was received. The assessment of the response is documented below:

One response was received from , via email to the Contract Specialist, on 07 July 2021. The response stated the firm has the capability to possibly manufacture this item and expressed interest in future opportunities for this item. The technical experts were notified of the submission of interest. The firm was provided with the procedures required to be considered for future opportunities for this item but was advised through the synopsis that no firms, except for Marlin Power Systems, will be considered for this current procurement.

Online market research was performed by Ground Vehicle Systems Center (GVSC) Engineering in April 2021, by reviewing vendor catalogs, and searching for product literature published online, in effort to find other manufacturers and/or commercial items or non-developmental items that could meet the Government needs or could be modified to meet the Government needs. While similar products are produced by