JA00977_SPRDL125R0047_SPRDL125C0100_Redacted.pdf

SPRDL1-25-R-0047 (JA-00977)

Previous J&A: SPRDL1-19-R-0256

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-25-R-0047

Contracting Agency: Defense Logistics Agency – Land, Warren (DLA-WRN).

Description of Action: DLA-WRN proposes to award a New Firm-Fixed-Price contract to DRS Network & Imaging Systems (DRS), Commercial and Government Entity (CAGE) 32865, for National Stock Number (NSN) 5998 01 625 8850, Circuit Card Assembly, Analog Discrete Input Output (ADIO), using Army Working Capital Funds.

Description of Supplies: The NSN 5998 01 625 8850, part number 12523326, Circuit Card Assembly, ADIO, is used on the Bradley Family of Vehicles. The deliverable for this contract is for a base quantity of 162 each, with an option quantity of 162 each, making a total quantity of 324 each. The total maximum value of this contract is

Acquisition Method Code (AMC):

1 - Suitable for competitive acquisition for the second or subsequent time.

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. An alternate source must qualify in accordance with the design control activity procedures, as approved by the cognizant Government engineering activity.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(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: This item is a subcomponent of the Digital Vehicle Distribution Box (DVDB) used on the Bradley Family of Vehicles. The Circuit Card Assembly, ADIO function is to provide the capability of discerning inputs and outputs of different voltage levels and provide various inputs and outputs based on what is measured.

The Technical Data Package (TDP) the Government owns is not a complete build to print. The TDP is missing performance specification and software. The Government requires qualification prior to source approval.

Only DRS has the requisite technical and engineering expertise to perform all efforts required to provide the Circuit Card Assembly, ADIO. DRS has demonstrated unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce the Circuit Card Assembly, ADIO. The TDP the Government has for the Circuit Card Assembly, ADIO is incomplete and refers to DRS proprietary documents and software. The Government does not own proprietary rights to the documents that would be required to produce a competitive TDP. A failure of the Circuit Card Assembly, ADIO would cause the DVDB to stop working. The DVDB protects and distributes power to 16 hull electrical subsystems such as the fuel pumps, fire suppression system, and engine sensors. Due to the lack of technical data available on the Circuit Card Assembly, ADIO, reverse engineering is the only recourse the Government could entertain to increase competition through development of a competitive TDP. Engineering utilized the DVDB subject matter expert from the Program Office to determine the costs to reverse engineering, procure and test prototypes, and release the design. Engineering took into consideration the costs for a previous design effort for a similar circuit card. The estimated cost to reverse engineer the Circuit Card Assembly, ADIO is $6.5M. This would cover various reverse engineering tasks such as: requirement development and hardware design, integration and fabrication/installation, Reliability Assessment and Monitoring vehicle testing, and development and validation of the TDP. The nature of this hardware requires significant qualification testing and system level testing.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a competitive TDP within a reasonable time frame. At the current average usage rate of each year, a current unit cost of $ , and assuming 25% savings achieved through competition, the $ in annual savings would take over years to offset the estimated $6.5M cost of reverse engineering the item and validating a competitive TDP.

Efforts to Obtain Competition:

Effective competition: Due to the reasons cited in ection 5 above, the Government is not pursuing competition for this item. Notices required by FAR

5.201 will be posted.

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 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

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

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 03 December 2024 and was open for eight days. The following vendors expressed interest:

(1) BHPE LLC (CAGE 9SWS7), a small disadvantaged and service-disabled veteran-owned small business concern; (2) PCI Aviation LLC (CAGE 7NV00), a small disadvantaged 8(a) concern; and (3) Silicon Mountain Contract Services, LP (CAGE 9RTB3), a small business concern. Interested vendors were informed of the requirements to become an approved source.

DEVCOM Engineering completed web-based market research on 07 November 2024, searching for companies that have ADIO circuit cards. There are multiple companies that have generic circuit cards and can build customized ADIO circuit cards. Without testing the cards in the next higher assembly, Engineering is unable to determine if the cards would be a drop-in replacement for the DRS Circuit Card Assembly, ADIO.

The Small Business Administration dynamic search was utilized searching for the North American Industry Classification System code and keywords “circuit card assembly”. A total of 11 small businesses were identified that could potentially provide this item.

These businesses would have to undergo the source approval process.

9. Interested Sources: To date additional sources have expressed interest as listed above in Section 8.

10. Other Facts: Procurement History:

Contract number SPRDL1-20-C-0137 was awarded on 07 May 2020 to DRS Network & Imaging Systems (CAGE 32865) for a quantity of 173 each Circuit Card Assembly units with a total dollar value of $1,018,492.52.

Contract number SPRDL1-18-P-0391 was awarded on 06 August 2018 to DRS Network & Imaging Systems (CAGE 32865) for a quantity of 25 each Circuit Card Assembly units with a total dollar value of $133,505.

Contract number SPRDL1-17-C-0279 was awarded on 01 September 2017 to DRS Network & Imaging Systems (CAGE 32865) for a quantity of 25 each Circuit Card Assembly units with a total dollar value of $285,900.50.