RedactedACC1692.pdf

CMO Control Number: 11-161

W56HZV-11-R-0252

DEPARTMENT OF THE ARMY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The United States Army Contracting Command (ACC-Warren) is the procuring activity for this action. The statutory authority permitting other than full and open competition is 10 U.S.C. § 2304(c)(1), as implemented by FAR 6.302-1, "Only One Responsible Source and no other supplies or services will satisfy requirements."

PART I - Description of Item Required:

a. NOUN: Generator, Engine AC, Dual Voltage, 260 Amp

b. ESTIMATED MAXIMUM QUANTITY: 749 EA (Base Qty) + 749 EA (100% Option) = 1,498 EA (Total Qty)

c. NSN: 2920-01-559-2715

d. MPN: N1224-1

e. VEHICLE SYSTEM: FMTV

f. ESTIMATED UNIT PRICE: $2,295.39

g. ESTIMATED MAXIMUM VALUE: Base: $1,719,247.11

100% Option: $1,719,247.11 Total: $3,438,494.22

h. PRON NUMBER: EH-1Y7001-EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: FFP

PART II - Technical Information and Certification

1. The US Army Tank-automotive and Armaments Command requires the acquisition of the above item. The only approved source for the above item is:

a. Contractor Name: C. E. Niehoff & Co. P/N: N1224-1 CAGE Code: 76761

2. Reasons the item is not suitable for full and open competition:

a. Status of the Acquisition Data:

The technical data package (TDP) acquisition production specification data is not fully defined, since the item was developed and tested and obtained Government approval of this application to the FMTV at private expense and such data is considered proprietary to the supplier. Since, the supplier owns all of the data rights, the technical data is not available through a procuring process.

Additionally, the Government did not fund the supplier to prepare a fully detailed TDP after approval. As such the supplier is the sole owner of their drawings and technical data rights and the Government does not own the technical data rights to the TDP that would be required to produce a competitive TDP.

The lack of technical data makes it necessary to procure this item on a non-competitive basis from the listed source.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

No efforts have been taken due to funding constraints.

Specialized skills and processing methods that are required for successful production of this critical item dictate that a potential supplier be qualified through extensive product development and critical operational vehicle acceptance testing prior to being considered for supplying this item, to the government. The approved contractor source required several years, from design to manufacturing, and an additional year to qualify this item. Reverse engineering would not assist the competitive process; and is not acceptable.

The cost of product application development, including any reverse engineering, and testing are not expected to be recovered through subsequent competition. The application development and vehicle operational acceptance testing, would exceed one year. This would cause unacceptable product delivery delays to meet the Government needs; and impact the Government’s ability to meet Army requirements.

Previous experience, by knowledgeable individuals in government, estimate the overall costs for each of the following options: reverse engineering or developing a competitive package; or procuring the proprietary data; or qualifying additional sources are each to be in excess of $500K. These overall cost are not expected to be recovered through subsequent competition, as required.

The vehicle operational acceptance testing, to obtain Government approval of a new source, in application to the FMTV, would require the items fit, form, and function verification; and a mission requirements performance validation over a mission operational profile of 10,000 miles. The time frame to make available the appropriate MTV and schedule testing at the multiple test sites would require at least six months lead time; and the scheduled testing would normally take six months to complete. The testing would also include and conclude in operational testing in a summer desert heat environment. This vehicle operational acceptance testing is estimated at a cost of $50 per operational mile; or a total cost of $500K.

c. Demonstration of Approved Contractor's Unique Qualifications:

The approved source is the sole owner of their drawings and technical data rights. The Government did not buy the approved source proprietary data rights, to produce a competitive TDP.

This item’s production specification is unique to the industry and available from only potential sources within the industry with these industry unique manufacturing capabilities. The approved source identified above has demonstrated the ability to establish and maintain the processing required to produce this item. The approved source has passed the industry unique extensive development and critical vehicle operational mission profile acceptance testing requirements completed by the time of FMTV acceptance;

and their proven development and unique testing experience have proven the item to be acceptable.

d. Efforts to Qualify Additional Suppliers for future procurements:

No contractors are in the process of being qualified, at this time; nor will be prior to the contract award, due to funding constraints. The funding associated with qualifying a new source are not expected to be recovered through subsequent competition, as required.

Qualifying a new source would require a substantial expenditure of the limited funding that has been provided to support the FMTV. New sources would require new tooling expenditures and the development of extensive processing procedures. The additional time required for these actions would prohibit delivery of the items in a time frame that would meet the government’s requirements.

Prestolite had previously expressed an interest in producing this item, but never pursued qualification.

Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

e. Market Research:

The procurement will be synopsized in the Fed Biz Opps and interested suppliers may apply to the Competition Management Office.

This item does not appear on the Advanced Procurement Planning List (APPL); or on the Competition Advocate’s Shopping List (CASL).

Sources Sought Notice 2011-061 was posted on 18 March 2011 on Fed Biz Opps and Procnet by William Rovas of the Competition Management Department.

To date, no additional contractors have expressed an interest in this item.

3. The POC for this action is Allan Taylor, Sr. Design Engineer, Ext. 282-5137.

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief.

Name: Allan Taylor Title: Sr. Design Engineer Signature: -/s/- Date: 15 March 2011

Name: Tom Zemke Title: Team Leader, MTV Engineering Signature: //S// Date: 5 April 2011

Name: Joe Keusch Title: PM-TV Engineering Division Chief Signature: Tom Zemke Acting for Joe K. //S// Date: 5 April 2011

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH1Y7001EH as to required quantities and delivery schedules are accurate and complete.

Name: Veronica Cook Title: Item Manager Signature: //s// Date: 5 April 2011

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Name: Kim Henschel Title: FMTV Team Leader, Sustainment Signature: //s// Date: 5 Apr 2011

Name: Peggy VanSickle Title: Medium Truck Group Leader Signature: //S// Date: 5 Apr 2011

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals W56HZV-11-R-0252. It is proposed to negotiate a Firm-Fixed-Price contract with C. E.

Niehoff & Co or one of their dealers/distributors for their part number N1224-1.

Rationale for the restriction to this contractor and their part number is discussed above.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is Christopher A. Valevich, OFFICE SYMBOL: CCTA-HTB- D, Ext. 282-3495.

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Certified cost or pricing data will be obtained.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Sarah L. Davis Title: Contracting Officer Signature: //signed// Date: 14 Apr 2011

PART V - Legal Concurrence Name: Jacquelene Jorgensen, //signed// Title: Attorney-Advisor Concur: Yes Date: 13 May 2011

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $500,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Generator, Engine AC, Dual Voltage, 260 Amp

b. NSN: 2920-01-559-2715

c. Basic Quantity: 749 EA

d. Basic Estimated Value: $1,719,247.11

e. Option Percent: 100%

f. Estimated Value with Option: $3,438,494.22

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC § 2304(c)(1) and FAR 6.302-1, "Only One Responsible Source and no other supplies or services will satisfy requirements and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Date: _26 May 2011__________ Signature: //signed//____________

LA RUTH SHEPHERD

Competition Advocate