SPRRA222R0032_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION NUMBER: SPRRA2-22-R-0032

PROGRAM/PROGRAM ELEMENT: ITAS TOW Weapon System

PROGRAM COST ESTIMATE: $

AUTHORITY: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2) TYPE J&A: Other Than Full and Open-Individual

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the US Tactical Aviation and Ground Munitions (TAGM) Project Office. The contracting authority for this requirement is Defense Logistics Agency (DLA) Strategic Acquisitions Program- Huntsville, Alabama, DLA/AHCB. The Purchase Request Order Number (PRON) supporting this contracting action is forthcoming and will be initiated as Request for Proposal (RFP) SPRRA2-22-R-0032.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Due to the circumstances described herein, this activity requests authority to acquire the spares listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This action will result in the award of a new contract, which will be a firm-fixed price, One Time Buy (OTB) type contract. This requirement will be solicited from the following source:

Saft America 107 Beaver CT Cockeysville, MD 21030

CAGE: 0SUJ7 NAICS: 335931

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

The Government proposes to acquire on a One Time Buy (OTB) contract, a quantity of 14 each of a Lithium-Ion Battery, NSN: TBD, Part Number: TBD, for an estimated Unit Price of $ each applicable to the Improved Target Acquisition System (ITAS) Tube-launched, Optically-tracked, Wireless-guided (TOW) Weapon System. The estimated contract value is $ . Funds to be used will be Foreign Military Sales (FMS) type funding under the FMS program.

**** These batteries are currently in Phase 3 of development and will be assigned a NSN and part number upon completion and testing. ****

The following is the Basic Requirement: Unit price estimates are derived from the Fair Market Value (FMV).

NSN QTY UNIT PRICE TOTAL PRICE Ordering

Period

TBD 14 $ $ 540 DACA

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR NATURE OF

THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE

The TAGM Program Office has utilized Saft America to design, produce, maintain and upgrade Lithium-Ion Battery Boxes (LBB) for the Improved Target Acquisition System (ITAS) for their current on hand stock. This legacy LBB is a 22-year-old lithium-ion design that was designed and produced by Saft America. Saft America is currently in phase 3 of the development stage of a new battery production to replace the legacy batteries currently used by the Army and in the current inventory. Saft America is the only qualified sole source supplier for the Army’s ITAS LBB and has an active ongoing production contract for the legacy batteries currently used. Saft has always been the only supplier of these LBB batteries due to the battery’s specialized electronics package, cell size and electrochemistry.

This includes electrochemistry development, battery design, development, significant qualification, and production efforts.

Saft America uses many proprietary technologies to develop and produce the currently fielded LBB. Some of these technologies have patents pending or are part of Saft America’s existing data rights. These data rights and patents include: custom electrochemistry for high energy production and custom cell formats based satellite cells that meet the weight and performance requirements specified by the TOW ITAS specifications. Currently, there are no COTs cells in the correct form, fit and/or factor/performance on the market that can meet this need of the Government.

Accordingly, Saft America, is the only firm capable of providing the supplies and services described in Section III above without the warfighter experiencing substantial delays in as the old legacy batteries are replaced with the new development batteries. Due to the time it would take to research and propose an open bid for any other company to develop, produce and test a similar battery for use, that TAGM engineering team estimated would take 24 to 36 months to fully develop, test and field the current need. This would be a crippling delay for the services that use the ITAS TOW weapon system and an un-needed cost to the Government for a company to develop a similar battery that Saft has already neared completion. Also, if another company is chosen to develop a battery, there will be a loss of hand in hand knowledge between the current company, Saft America, and the Government, as they have been cooperatively working side by side during development of this battery for two decades and the loss of cohesiveness and foresight of the Government’s future needs will be lost.

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 require acquisition of the part form the approved source. The approved source retains 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.

The approved source has the unique design capability, engineering skills, and manufacturing knowledge to produce this item.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on System for Award Management (SAM.gov) as required by FAR 5.201. The extent of competition anticipated is the source identified in Section II of this document. In an effort to obtain maximum competition, the synopsis will encourage firms that recognize and can produce the item described in Section III of this document to identify themselves. Any source who responds to the Government as a result of the posted synopsis will be identified to the prime contractor as a potential for subcontracting possibilities. The synopsis encourages firms to seek source approval in order to compete for future solicitations by contacting the TAGM Program Office.

A Sources Sought was issued on 27 April 2022 and closed on 1 May 2022 with no responses.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403- 4, the contractor will be required to provide non-certified cost and pricing data to be used in supporting the Government’s evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, other direct costs, and direct and indirect rates will be negotiated by the DLA contracting office and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

Due to the limited competitive nature of the required item, no external survey was conducted. Market research as defined in far 10.001 was conducted. This is an un-programmed requirement. It has been determined that the government's needs cannot be met by an item available in the commercial marketplace; therefore, FAR Part 12 will not be used.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

The TAGM Program Office has determined that this is a critical need that must be immediately met. This part can only be broken out to sources that have demonstrated the technical ability to produce this item, including possession of the necessary inspection/test equipment and manufacturing technology. Sources must be approved prior to being awarded a contract for this item. Source approval request have been reviewed and there are no approved sources other than those listed in paragraph 2.

Saft’s background in this type of work has generated extensive internal knowledge and experience specifically with the ITAS system. This experience will greatly enhance production of the new LBB and any future spares production. Saft has a proven track record developing and producing large long-life low-temperature-capable Li-ion batteries for military application. This includes every ITAS LBBs in the field. Saft has evaluated and upgraded the currently used legacy LBB to extend its life well past the design expectations. As the batteries aged, Saft has had many opportunities to troubleshoot and consider the battery features along the entire battery cycle life.

This OEM is not willing to sell data rights to the Government, which means the technical data package, specification, and engineering description suitable for Full and Open Competition cannot be developed without reverse engineering. The Government has determined that reverse engineering is cost prohibitive.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

To date, no other sources, other than Saft America have expressed any interest to our sources sought notice.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT ACQUISITIONS

FOR THE SUPPLIES

Firms are encouraged to seek source approval from the TAGM Program Office. Currently, there are no outstanding qualification requests on this item; however, this is a continuous method of identifying potential new sources of supply.