ACC16-2001.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command-Warren (ACC-WRN) is the contracting activity responsible for this action.

2. Description of Action: This proposed contract action will result in a new firm-fixed-price contract with options with DRS Test and Energy Management, Inc. (DRS-TEM), Huntsville, AL to procure Sidecar Module Cable Assemblies to support the M1 Embedded Diagnostics (ED) System for the M1A1 Abrams Tank. Army Working Capital Funds (AWCF) will be used in this procurement.

3. Description of Supplies: The proposed contract action is to procure up to 332 each sidecar cable assemblies. The base quantity is for 166 each sidecar cable assemblies and a 100% option for support of the M1A1 Abrams Tank. The estimated total value of this acquisition to include the 100% evaluated option provision, equates to $225,286.

4. Authority Cited: The statutory authority permitting this action is 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements”. Specifically, FAR 6.302-1(a) (2) (ii) (A) and (B) provides that supplies may be deemed to be available only from the original source when it is likely an award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition or unacceptable delays in fulfilling the agency’s requirement.

5. Reason for Authority Cited:

a. Background:

DRS-TEM is the Original Equipment Manufacturer (OEM) of the sidecar cable assemblies. This item is a customized sidecar module cable assembly which interfaces with the Embedded Diagnostics (P/N: 12992347) used on the M1A1 Abrams Tank. The technical data package for the customized sidecar module cable assembly is considered inadequate for competitive procurement because it is a source controlled top drawing with only one source and the drawing does not disclose all the information necessary to produce the cable assembly. The Technical Data Package (TDP) for this item is considered proprietary to DRS Test and Energy Management, as DRS has the drawings. The Government has limited rights to the TDP and the TDP does not contain data suitable for competition at this time because the data is incomplete.

b. Costs:

A complete TDP suitable for procurement of the cable assembly is not available. The ARDEC- Rock Island (RI) engineer estimates the total cost of $550,000 to develop a competitive package for this item through reverse engineering, qualification procedures, and engineering analysis per breakout below:

Reverse Engineering Costs: $200K Qualification Procedure Costs: $150K Engineering Analysis Costs: $200K

The ED system that the cable assembly supports is a DRS-TEM item, developed beyond the scope of Government design input, funding, and control. Complete drawings and specifications are not available for any components of the Abrams add-on diagnostics at this time.

c. Unacceptable Delay: An ARDEC-RI engineer estimated that it would take 3 years to develop a competitive tech data package for the sidecar cable assembly and an additional year for another contractor to produce it. The three year delay required for an engineering effort to develop a competitive TDP package and added procurement time would negatively impact the commander’s force readiness.

6. Efforts to Obtain Competition: The Government has limited rights to the TDP which is not adequate for competition. Therefore, only DRS Test and Energy Management will be solicited for this effort. There are no efforts to obtain effective competition for this action due to the duplication of costs and unacceptable delays the Government would incur as described in paragraph 5 above. This requirement will be synopsized to maximize subcontracting opportunities in accordance with FAR Part 5.201. To ensure DRS-TEM competitively subcontracts to the maximum extent possible, the contract shall contain FAR Clause 52.244-5 entitled "Competition in Subcontracting."

7. Actions to Increase Competition: The Government has limited rights to the TDP for the cable assembly, thus a competitive procurement of the cable assembly is not possible. The current acquisition will not be competed because it is impracticable, and it is not a viable option for subsequent acquisitions; however, the Government will investigate future requirements on a case by-case basis.

Operations Security (OPSEC) Information

8. Market Research: On October 23, 2014, an ARDEC-RI engineer conducted a Google search of the entire World Wide Web for the sidecar module cable assembly.

The results of this search did not yield any information about new production sources for this item. No non-developmental items exist to meet the Government’s need or that could be economically modified to meet the Government’s need that can operate on the M1A1 Abrams Tank. This item is specific for military use on the Abrams Tank.

9. Interested Sources: To date, no other sources have written to express an interest.

Notices required by FAR 5.201 shall be published, and any bids or proposals received shall be considered.

10. Other Facts:

a. Procurement History. The following tables display procurement history for the items in the proposed procurement. All contracts and delivery orders were awarded on a sole source basis to DRS-TEM and a Justification and Approval for Other Than Full and Open Competition was approved under the authority of FAR 6.302-1. In the previous Justification and Approval, which was for order 0098 awarded under basic ordering agreement W52H09-06-G-0001, the reason for authority cited was that the technical data package for the ED system and its components was not considered adequate for competitive procurement. The Government had neither a competitive technical data package nor a performance specification for cable assemblies. Drawings and specifications were not available for any component of the Abrams add-on diagnostics.

CONTRACT ORDER CLIN UNIT PRICE

W52H0906G0001 0098 0002AA $1,418.09

W52H0906G0001 0048 0003AA $665.66

DAAE2003G0001 0096 0005AA $400.09

DAAE2003G0001 0096 0031AA $400.09

DAAE2003G0001 0071 0017AA $525.53

DAAE2003G0001 0013 0020AA $530.55

DAAE2098G0004 0058 0205AA $307.84

b. Acquisition Data Availability: The costs associated with developing a Government TDP for this acquisition are estimated at $550K and the breakout includes reverse engineering $200K, qualification procedures $150K, and engineering analysis $200K that would not be expected to be recovered through competition.

For this and the other reasons stated in this J&A, there are no actions being taken to develop a Government

TDP.

c. Subcontracting Competition: As indicated in section 2, the estimated dollar value of this procurement is $225,285.24. In accordance with FAR 19.702(a) (1) a subcontracting plan will not be required for this action. As indicated in section 6, this

OPSEC

requirement will be synopsized to maximize subcontracting opportunities in accordance with FAR Part 5.201.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Tom Wilson Date: 5 Jan 2015 Title: APO, Abrams Matrix Support ARDEC-RI Signature://s//Tom Wilson//

12. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Jennifer Barrere Date: 3 Nov 2014 Title: Acting M1A1 Team Leader Signature: //s// Jennifer.L.Barrere

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be based on results of Cost and Price analysis. Certified Cost and Pricing Data is not required based on the dollar threshold per FAR 15.403-4 (a) (1).

Name: Date:

Title:

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Date:

Title:

Approval

Based on the foregoing justification, I hereby approve the procurement of Sidecar Module Cable Assemblies to support the M1 Embedded Diagnostics (ED) System for the M1A1 Abrams Tank at a total estimated value of $225,285.24 on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A)&(B), “Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirements.”

This approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: __25 January 2015________________________ Signature