SPRRA223R0082_Redacted.pdf

SPRRA2-23-R-0082

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DEFENSE LOGISTICS AGENCY

EADQUAR ER

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FORT B LVOIR, VIRG NIA 0 0 1

CLASS 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 PEO Missiles and Space (PEOMS) Tactical Aviation and Ground Munitions (TAGM) Advanced Technology Integration (ATI) Program Office and other services and commands supported by Defense Logistics Agency. The contracting authority for this requirement is Defense Logistics Agency – Aviation, Huntsville, Alabama, DLA-AH. The PEOMS TAGM office and DLA-Aviation Huntsville contracting division identified the need for long-term coverage on multiple commercial off the shelf (COTS) parts that are sole-sourced to the Original Equipment Manufacturer (OEM) Teledyne FLIR, CAGE 64869. The Purchase Request Order Numbers (PRON) supporting this contracting action are forthcoming and will be initiated at the delivery order level.

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

Due to the circumstances described herein, this activity requests authority to acquire part numbers deemed sole sourced to Teledyne FLIR, using Other Than Full and Open Competition as prescribed by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” This action will result in the award of a follow-on contract, which will be a firm-fixed price, 3-year Indefinite Delivery Requirements (IDR) type contract, with a maximum value of . This sole-source requirement will be negotiated with the following company:

Teledyne FLIR INC 27700 SW Parkway Ave.

Wilsonville, OR 97070-8238

CAGE: 64869

Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The Government proposes an award on a 3-year IDR contract that provides contract coverage for commercial items that include (but not limited to) FLIR-Part Number-380 HLD, Radar- Part Number- R20SS-3D, FLIR and Cable Install Kit-PN-4214088 to support the Advance Technology Integration-Detroit (ATI-D) system. The ATI-D is a fully autonomous system containing all power, fire control, and sensors needed to shoot current Army Air-to-Ground Missiles (AGMs) that are capable of operation in a GPS degraded environment. The above listed part numbers are sole-sourced to Teledyne FLIR, the OEM, and within scope of the contract. Items can be added throughout the life of the contract and considered in-scope if the requirements in Section V are met.

The key overarching objective of the contract is to maximize the availability of the weapons system by providing timely material support through initiatives such as: obsolescence solutions with inherent reliability improvements, streamlining supply chain management, and reducing production lead-time. To achieve these overarching objectives, the provider must have the ability to recommend changes in the systems configurations and, more importantly, understand, analyze, and assess the implications - both in terms of systems performance and operational usage of any potential configuration change. As the actual manufacturer of the search and detection devices, Teledyne FLIR is the sole source of these products.

The Government anticipates execution of this contract with Teledyne FLIR for executing orders against the base contract that will be within the scope of this effort. The estimated contract value is . The requiring activity will utilize defense working capital funds, or other appropriate types of funding, when requirements are established on the contract.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 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.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE

AUTHORITY CITED ABOVE

This will be a sole source procurement based upon the authority of 10 U.S.C. §3204(a)(1), as implemented by Federal Acquisition Regulation 6.302-1. Obtaining an alternate source or sources for the proposed three years of support for these items is not feasible or cost effective.

For the initial prototype requirement of 26 units, FLIRs and radars were purchased through an unusual and compelling contract awarded to Intuitive Research and Technology Corporation with Teledyne FLIR as a directed source for these parts. The Teledyne FLIR radar, FLIR, and cable kits have been integrated into an initial prototype system and have passed acceptance testing. Therefore, this acquisition will be conducted under an additional contract for the continued development/production of a major system or highly specialized equipment (or major components). Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition as well as unacceptable delays in fulfilling the urgent requirement. Teledyne FLIR could meet the government's aggressive contract delivery schedule and is the OEM on the commercial marketplace. Teledyne FLIR has been determined to be the only source with the engineering and logistical expertise, capability, and technical data to manufacture and deliver the material, and provide the associated repair functions and other services that will satisfy requirements generated by the US Army (or other services) in support of customers worldwide. The technical data is proprietary or not otherwise available to the Government. Requirements that are presented to DLA from the by PEOMS TAGM ATI Program Office will not be assigned an Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC). Requirements that are presented from the TAGM program office may not have an associated Technical Data Package (TDP) or an assigned AMC/AMSC.

The US Government does not own the tools nor the test equipment to manufacture the FLIR- Part Number-380 HLD, Radar- Part Number- R20SS-3D, FLIR and Cable Install Kit-PN- 4214088 to support the Advance Technology Integration-Detroit (ATI-D) system. While Teledyne FLIR is the only approved source for the FLIR and Radar, there are situations when Teledyne FLIR is one of a small group of approved sources, or there is no technical data package associated with additional parts associated with the FLIR, Radar, and Cable Install Kits. In these situations, if through market research and/or customer certification, the contracting officer determines other approved sources will not participate and/or only Teledyne FLIR can provide the part/service, the intent is to use this IDR. In order to satisfy the requirements of 10 U.S.C. §3204(a)(1) in that situation, the following procedure will apply.

For requirements with a TDP that indicates a limited competitive procurement, or the item does not have a TDP, the contracting activity shall conduct market research and document the following:

o A Memorandum of Determination shall be completed. The Memorandum shall describe the following (not all-inclusive and if applicable):

Procurement history Sources sought posting and responses Responses of Requests for Information (RFI) from approved sources Requiring activity technical representative evaluation

Contracting Officer determination of applicability for only one responsive and responsible source

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE

This requirement will be synopsized/solicitation published on System for Award Management (SAM.gov) as required by FAR 5.201. This effort is for commercial items and a combined synopsis/solicitation will be used as prescribed in FAR 12.603. To obtain maximum competition, the synopsis/solicitation will encourage firms that recognize and can produce the items described in Attachment 1 to identify themselves and to seek source approval to compete for future solicitations by going through the source approval process of the procuring activity.

In addition to a combined synopsis/solicitation, a Sources Sought will be published any time new parts are proposed to be added to the contract.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this Class J&A will be fair and reasonable. DLA will use appropriate cost and/or price analysis to evaluate proposed prices. Teledyne FLIR will not be required to provide certified cost or pricing data for commercial items acquired using FAR 12 procedures. The initial requirement is for commercial items. However, if future items are non-commercial, Teledyne-FLIR will be required to provide certified cost or pricing data for non-commercial items acquired as required by FAR 15 procedures. To evaluate the proposed price of commercial items, price analysis will be performed in accordance with FAR Subpart 15.4.

Should data other than certified cost or pricing data be utilized, the Government's negotiation objective will be developed using local technical analysis, negotiated direct and indirect rates, and profit using the Weighted Guidelines Method. As necessary, a fully compliant audit may be performed and DCMA/DCAA assistance will be requested. Detailed documentation and justification of price reasonableness will be disclosed in the official price negotiation memorandum, as required, to be prepared upon completion of negotiations. Bringing all Teledyne FLIR items requirements together increases DLA's leverage with the contractor.

DLA believes this leverage will result in significant savings over existing disparate support strategies.

The three-year term of the contract will incentivize continued investments in reliability improvements, obsolescence management, process improvements, and more efficient depot operations over the contract period by Teledyne FLIR. Inherent in the three-year contract structure is an incentive to continue to improve reliability and drive down cost, which not only better serves Department of Defense and other Federal Government customers, but results in better stewardship of taxpayer dollars.

These contracts will be negotiated assuming decreased costs associated with improved reliability and availability through the potential three-year performance period of the contract.

Based on the foregoing, the Contracting Officer shall determine that the cost to the Government, be fair and reasonable prior to contract award.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

Market research, as defined in FAR 10.001 was conducted. A review of the class population confirmed that the initial items to be solicited are all considered as sole source to Teledyne FLIR. Technical certifications either via TDP or Memorandum of Determination, as listed in Section V, will be required for every item before negotiations commence with Teledyne FLIR to add the items to a contract.

The initial Sources Sought was issued on June 22, 2023, and closed on June 26, 2023. One vendor, Simulation Technologies, Inc. (SIM TECH) requested information and was given the information about being a subcontractor to Teledyne FLIR.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION

As stated in the previous sections, a Sources Sought was posted on June 22, 2023. Technical certifications either via TDP or Memorandum of Determination, as listed in Section V, will be required for every item before negotiations commence with Teledyne FLIR to add the items to a contract.

This requirement will be a combined synopsis/solicitation posted to SAM.GOV as prescribed in

FAR 12.603.

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

Simulation Technologies, Inc. (SIM TECH) requested an opportunity to provide the items to the Government. SIM TECH was given the information about being a subcontractor to Teledyne FLIR.

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

Due to the complex nature of this work, there is no opportunity at this time to remove barriers to competition at the prime contractor level. The Contracting Officer will continue to synopsize items that may be added to contract to investigate the possibility of competition.

However, parts that have previously been synopsized will not be synopsized again throughout the length of the contract. The Competition Advocate will review the requirements to verify that all requirements can be completed by Teledyne FLIR. As stated above, Teledyne FLIR, a large business, is the OEM and only known source with the capability of furnishing the required logistics support.

Future requirements, other than those in the original population, will nevertheless be advertised in the SAM.gov to ensure that potential alternate sources are aware of the requirement and can identify interest in support for these items. The contract will include provisions stating that the Government reserves the right to remove any items that become competitive after award.

Firms are encouraged to seek Source Approval Process through the documentation and associated website to potentially become an approved source. No new sources have been approved at this time; however, this is a continuous method of identifying potential new sources of supply.

XII. CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidence that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Sole-Source Justification, the technical and/or requirements personnel have certified that any supporting data have been provided, which is their responsibility, is both accurate and complete.