RedactedACC1675.pdf

JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

CMO Control #2012-030

1. Contracting Agency: Army Contracting Command – Warren (ACC-WRN), CCTA-AIM- B, is the procuring activity for this action.

2. Description of Action: Approval is sought to issue a new contract with Parker Hannifin- Corporation (PHC), 2745 Snapps Ferry RD, Greeneville, TN 37745-1641, on a Firm Fixed Price basis, utilizing Fiscal Year FY10 Procurement Marine Corps (PMC) funds. The original contract W56ZHV-10-C-0497 was awarded with an option for 50 each production winches. The option was not exercised and has expired as of 24 September 2011. This sole source contract would result in the award of that production quantity.

3. Description of Supplies/Services: The proposed contract will acquire a quantity of 50 Recovery Winches for the Light Armored Vehicle Recovery variant (LAV-R) Upgrade program.

Estimated value of the contract is $1.45 million.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304I(c) (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: PHC was competitively awarded the original development contract for these winches in September 2010. Since September 2010, PHC and the government have worked closely to refine the original systems performance specifications (SPS) resulting in a modification to the 2 prototype winches valued at $58,384. This modification to the original design consisted of a change to synthetic rope and an increased pulling capability of the first wrap. As a result the production winch is estimated at $28,800 per unit. Not only does PHC own the technical data package for these prototypes, but this design is an integral part of the LAV-R upgrade. The Power Take Off (PTO) and Pump, Safety Cage, as well as the hydraulics and power connectors are all designed and integrated around the current PHC winch prototypes.

PHC is unwilling to sell the technical data package for the winch.

The winch could be reversed engineered; however, this would involve substantial funding and duplication of effort to accomplish. The original development contract was awarded in the firm fixed amount of $28,000. Since the initial award, the winches have been modified resulting in an increase of $58,000. The testing and integration of these winches has resulted in the need to extend the project schedule by three (3) months at an additional cost to the project of $620,000.

Further, the winch is a central component of the LAV-R upgrade, several other components mentioned above were designed and integrated around the current PHC winch. The duplicated costs associated with testing, designing, and integrating all of these components around another winch is estimated at $2 million. This amount is based on the previous effort and costs to re-design the safety cage, re-run the analysis for the PTO/pump pressures, re-do the modeling for the component placement, re-run the center of gravity tests, and purchase any hardware that changes as a result of a different winch. In summary, the total cost and time to re-engineer these winches would result in approximately $2.7 million and 2 years in schedule delay. This value assumes the $700k cost to reengineer the winch and the $2m estimate for design, testing, and analysis of the other effected components resulting in the change of current winch design. The government would not be able to recover the cost through subsequent competition and that the delay to the program schedule is unacceptable.

6. Efforts to Obtain Competition: Efforts to obtain competition for this acquisition cannot be effectively pursued in a time frame to support the readiness requirements of the USMC. Based on cost and schedule issues identified in Paragraph 5 above, it is not anticipated that other sources will be interested in this acquisition. However, this action will be synopsized in FedBizOpps to advise of possible subcontracting opportunities in accordance with FAR 5.201(b)(1)(i). Contractors can seek qualification through the Source Approval Program through the Competition Management Office.

7. Actions to Increase Competition: No action is planned to increase competition for any subsequent acquisitions. There are only 45 LAV-R vehicles in the USMC inventory so no follow on procurements are planned at this time.

8. Market Research: PHC was awarded the original contract after extensive market research of the industry was performed. A request for information (RFI) was posted to the web listing the specific performance parameters of the winch prior to the solicitation of the original contract in June 2010. An updated market survey completed on 02 November 2011, revealed seven potential candidates outside of PHC. Each of the respondents were fully evaluated against the performance specifications. Two of these potential candidates had previously responded to the original RFI and were reassessed to determine if there were any changes or updates to their portfolios/products such that they would meet all of the requirements. In addition to this updated market survey, a web browser search revealed another potential source not previously considered. The potential sources were evaluated to determine whether they could meet the technical specifications for this requirement in the following areas: single line rated pull, continuous pull capacity for normal operation, weight claim, space claim, and winch rope. It was determined that PHC is the only contractor who can meet all of the program requirements. The market research revealed that no other sources of supply are capable of meeting the LAV-R upgrade program requirements at this time.

9. Interested Sources: To date, no other sources have written to express an interest in this acquisition and no additional interested sources are expected. As directed by FAR 5.201(b)(1)(i) and FAR 5.206, this action will be synopsized in the FedBizOpps to advise of possible subcontracting opportunities. Any offers received will be considered.

10. Other Facts:

a. PROCUREMENT HISTORY: The winch contract W56HZV-10-C-0497 was awarded to Parker Hannifin Corporation following a formal source selection in September 2010.

The contract included CLINs for development of two prototype winches as well as an option for 50 production winches. The two prototypes have recently been completed and passed through testing. The options have been overcome by events and have since expired as a result.

b. ACQUISITION DATA AVAILABILITY: The design of the winches is proprietary to PHC. As such, technical data packages, specifications, engineering descriptions, statements of work, and purchase descriptions suitable for full and open competition do not exist.

c. SUBCONTRACTING COMPETITION: This contract will contain the FAR clause at 52.244-5, “Competition in Subcontracting” (DEC 1996).

11. Technical Certification/Requirements Certification: “I certify that the supporting data under my cognizance which are included in this document are accurate and complete to the best of my knowledge and belief.”

Name: Col. Brian K. Buckles Date: 17 November 2011 Title: Program Manager, LAV Signature: //bkb//

12. Fair and Reasonable Cost Determination: “I hereby determine that the anticipated cost for this action will be fair and reasonable. TACOM will use the appropriate means of price and/or cost analysis to determine this reasonableness. Certified Cost and Pricing Data will be obtained”

Typed Name: __Thomas K Sargee____ Date: _22 NOV 2011____ Title: Contracting Officer Signature __//s//_______

13. Procuring Contracting Officer Certification: “I certify that the facts and representations under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.”

Typed Name: __Thomas K Sargee____ Date: _22 NOV 2011____ Title: Contracting Officer Signature __//s//_______

Based on the foregoing justification, I hereby approve acquisition of a quantity of 50 Recovery Winches. The proposed effort will be acquired on an other than full and open competition basis, pursuant to the authority of 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 agency requirements,” at an estimated total value of $1.45M subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition

Date: __7 Dec 2011________ SIGNATURE: __//signed//________________

LA RUTH SHEPHERD

Competition Advocate