SPRRA224R0027_Redacted JA.pdf

DEFENSE LOGISTICS AGENCY

AVIATION - HUNTSVILLE

5202 MARTIN ROAD

REDSTONE ARSENAL, AL 35898

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/AH. The TAGM project office and DLA-Aviation Huntsville contracting division identified the need for parts that are sole-sourced to Saft America, CAGE 0SUJ7. The Purchase Request Order Number (PRON) supporting this contracting action is forthcoming and will be initiated as Request for Proposal

(RFP).

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, three (3) year Indefinite-Quantity (IDR) type contract. This sole-source requirement will be negotiated with the following company:

Saft America 107 Beaver CT Cockeysville, MD 21030

CAGE: 0SUJ7

Large Business

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

AGENCY’S NEEDS

The Government proposes to acquire on a three (3) year Indefinite-Quantity (IDR) contract, a best estimated quantity of 200 each of a Lithium-Ion Battery, NSN: 9999-99-999-9999, Part Number: 13711265, 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 OMA and FMS.

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

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. The LBB is a 22-year-old lithium-ion design that was designed and produced by Saft America. Saft America is currently the only qualified sole source supplier for the Army’s ITAS LBB and has an active ongoing production contract for these legacy batteries currently needed. 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. The Pouch Cell LBB (Army PN 13711265) is an update to the chemistry and cell pack of the existing legacy LBB. This update uses the same interface and many of the same components as the legacy LBB and can also be retrofitted into the same LBB box if desired. The Pouch Cell LBB addresses safety concerns with the aging legacy LBB.

Saft America uses many proprietary technologies to develop and produce the 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 replacement batteries due to the time it would take to develop, produce and test a similar battery for use, that TAGM engineering team estimated would take 18 to 24 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 already exists and is available. 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, and a solicitation will be published 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 January 16, 2024, and closed on January 19, 2024 with five

(5) responses.

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 price analysis to evaluate proposed prices. Saft America will be required to provide certified cost or pricing data for items acquired using FAR 15 procedures. 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.

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

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 spares production of the LBB and 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 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. FULL AND OPEN COMPETITION

As stated in the previous sections, a Sources Sought was posted on January 16, 2024. Technical certifications either via TDP or Memorandum of Determination, as listed in Section V, will be required for every item before negotiations commence with Saft America to add the items to a contract.

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

Synthesis Partner LLC, Cage 3VBQ7 Parts Life Inc., Cage 4MJR3 USI Inc., Cage 60074 AIMS Corp., No Cage Greenwood Aero, No Cage

XII. 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.

XIII. CONTRACTING OFFICER’S CERTIFICATION

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

XIV. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.