JA_15-C-0004_DCU_21_OCT_15_Redacted.pdf

Control No: W91215-15-R-0012

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

DATA CONCENTRATOR UNIT (DCU)

1. Contracting Activity: The Aviation Integration Directorate (AID) Army Contracting Command – Redstone, Building 401 Lee Boulevard, Fort Eustis, VA 23604-5577.

2. Description of Action: Approval is being sought to award a new, unclassified Firm Fixed Price Contract (FFP) to SCI Technology Inc., 13000 South Memorial Parkway, Huntsville, AL (CAGE Code 2J622), to procure up to eighteen (18) Data Concentrator Units (DCUs), which are microprocessor-based controllers that bridge the gap between a variety of data sources (data bus, LRUs, etc.) and graphical user interfaces such as multifunctional displays on the MH-60 Blackhawk aircraft in support of aircraft modification/upgrade to a Common Avionics Architectural Suite (CAAS) configuration. The Period of Performance is 25 September 2015 - 24 September 2017, during which, upon receipt of certified funds, the Contracting Officer will exercise the Option Contract Line Item Numbers (CLINs), in accordance with the Federal Acquisition Regulation (FAR) Clause 52.217-7 – Option for Increased Quantity – Separately Priced Line Item in order to purchase the remaining DCUs that were not completed at the time of the base contract award. The Government will utilize Fiscal Year (FY) 15 Operations and Maintenance, Defense-Wide (O&M) funding to purchase four DCUs, FY15 Research Development Testing and Evaluation (RDT&E) to purchase one DCU, and FY16-17 Procurement, Defense-wide funding to purchase up to thirteen additional DCUs. The maximum contract value is $869,000.

3. Description of Supplies/Services: The proposed action will purchase up to eighteen DCUs (Part Number 5443000-002) for the Technology Applications Program Office (TAPO) within a two year period. There are no services being procured under this contract action. TAPO is modifying MH-60 Blackhawks from Cockpit Management System (CMS)-80 to Common Avionics Architecture Suite (CAAS) cockpits. The DCU is part of the CAAS system and it is required for modification.

Data Concentrator Units are microprocessor based controllers that bridge the gap between a variety of data sources (data bus, black boxes, etc.) and graphical user interfaces such as multifunctional displays on an aircraft. Two DCUs support a single aircraft CAAS. The DCU enables enhanced situational awareness within the CAAS environment, making a wide variety of data sources available to pilots without overburdening them.

TAPO will purchase up to four (4) DCUs under an O&M-funded CLIN (valued at $193,104), one DCU under a RDT&E funded CLIN (valued at $48,276) and up to thirteen (13) additional units under a Procurement-funded CLIN (valued at $627,588). Based on the single DCU price of $48,276, the estimated contract value for eighteen units is $869,000.

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in A) substantial duplication of cost to the Government that is not expected to be recovered through competition; or B) Unacceptable Delays in fulfilling the agency’s requirements.”

5. Reason for Authority Cited:

a. The proposed contractor is:

SCI Technology Inc.

13000 S Memorial Parkway Huntsville, Alabama 35803

(256) 882-4800

CAGE CODE: 2J622

b. The DCU is PN 5443000-001, which was upgraded in 2015 to the currently sought PN 5443000-002. Both the -001 and -002 units are manufactured and supplied by the original equipment manufacturer (OEM), SCI Technology, Inc., Huntsville, AL.

c. Since 2002, the Government has invested over $100M developing, qualifying, and maintaining CAAS. The DCU is a critical CAAS component that converts legacy analog electrical signals into a digital format for presentation to the avionics software data bus controller in CAAS equipped aircraft. It is estimated, based upon engineering judgment and data from the original CAAS development and qualification effort that use of another source would likely require 18 to 24 months at an estimated cost of $3M and would not meet the PMO’s schedule requirements. No other type of hardware or component can satisfy the Government’s need due to the unique configuration of this DCU that is (a) designed into the CAAS and (b) qualified and approved for use under a Department of the Army (DA) Airworthiness Release (AWR). In summary, award to another source would result in substantial duplication of cost to the government that is not expected to be recovered through competition. Market research (reference paragraph 8b) revealed that it would be impossible for an alternate vendor to have the expertise to comprehend the technical data, overcome the learning curve associated with learning about the DCU’s integration into CAAS, and produce the DCUs to meet the operational support schedule (3 – 4 months after award). SCI Technology’s past performance, ability to supply the DCUs under previous contracts, and SCI’s ability to qualify this component for approval in U. S.

Army helicopters under an AWR makes them the only source capable of supporting this requirement.

6. Efforts to Obtain Competition:

The acquisition was posted on the Aviation and Missile Command (AMCOM) Competition Advocate’s Shopping List (CASL) on 7 August 2015. A Sources Sought was posted on www.fbo.gov on 6 August 2015 and no sources have expressed interest. A pre-solicitation synopsis was posted on the www.fbo.gov on 20 August 2015 and to date, no sources have expressed interest. All interested qualified sources will be provided an opportunity to participate in this requirement.

7. Actions to Increase Competition:

No additional actions are anticipated to increase competition. This is not a repair contract or the procurement of a major end item. Rather, this is a one-time purchase of a production component that is part of a currently flying and operated production system. TAPO is not considering any repair or sustainment services at this time.

8. Market Research.

Market Research has been conducted within the last six months IAW FAR 10.002 by an Aerospace Engineer, Aviation Integration Directorate (AID) using the following techniques; 1) contact with knowledgeable person in Government and industry regarding the commercial nature of this requirement and standard industry practices in this area of supply/services, 2) Review of recent market research results for similar or identical supplies/services, 3) Review of catalogs and/or other generally available product literature, 4) Publication in AMCOM Competition Advocate’s Shopping List (CASL) and 5) other types of research.

a. In July 2015, the Project Engineer spoke to various CAAS experts in Technology Applications Program Office (TAPO), Fort Eustis, VA – the Avionics Program Manager, an Electronics Engineer, the Program Integrator, and the Logistics Manager. The Logistics Manager informed the AID Project Engineer that PN 5443000-002 is required to support CAAS in the MH-60 helicopter. Market research revealed other aerospace data concentrator units on the market but PN 5443000-002 is the only DCU that meets the Government’s requirement.

b. The Project Engineer spoke to various Government Personnel regarding acquisitions for similar supplies/services and identified the following: 1) the Government awarded a contract for DCU qualification and production to Sanmina-SCI (CAGE CODE: 2J622) on a competitive basis in 2002 under TAKO contract USZA95-02-D-0006, 2) in FY 2008 the Government awarded to Sanmina-SCI (CAGE CODE: 2J622) the first DCU support contract, H92241-08-C- 0008, on other than full and open non-competitive basis, and 3) in FY13, a second DCU support (services) contract was awarded to SCI (CAGE CODE: 2J622) for $2.9M (POP FY13-17).

Market research was conducted; TAPO reviewed capabilities of six candidate sources different from SCI. A determination was made that a competitive acquisition was not possible.

Justification provided: TAPO does not own the complete technical data package and SCI has notified in a letter it will not provide it. Further, based on previous contract literature and conversations with a TAPO Contract Specialist and a TAPO Project Lead for DCU, no vendor could perform the services without a significant training effort for skilled application specific engineering labor.

c. In June 2015, web-based market research revealed several vendors with data concentrator units available, including Siemens, Curtiss-Wright Controls and Astronautics Corporation of America. Siemens products perform similar data manipulation, translating and storage, but these products are not aviation hardened. Astronautics and Curtiss-Wright Controls Avionics & Electronics DCU hardware perform similar functionality in that it is a microprocessor-based controller that receives an assortment of discrete, analog and digital inputs to process and format them into other common digital data formats for various aircraft systems' consumption but is not compatible with the DCU.

j. Based on the results of the above research, it is determined that this requirement cannot be met by commercial items, commercial items with customary or minor modifications, or non-developmental items and therefore, FAR Part 12 procedures will not be used. Further, a reevaluation has been made in accordance with FAR 10.002(b), and the Government requirement cannot be modified in a way that will allow a commercial item to meet the need.

9. Interested Sources:

In accordance with FAR 5.201, the following notices were published; 1) a Sources Sought was posted on www.fbo.gov on 6 August 2015, and 2) a synopsis for the requirement was posted on the www.fbo.gov on 20 August 2015. To date, no other sources have written to express an interest in writing. Any bid or proposal received shall be considered by the Government. All interested qualified sources will be provided an opportunity to participate in this requirement.

To date, no other source(s) have expressed an interest in writing.

10. Other Facts: Supporting facts for Other Than Full and Open Competition:

a. Procurement History.

(1) USZA95-02-D-0006. Technology Applications Contracting Office (TAKO) awarded a contract using full and open competition to Sanmina-SCI (CAGE CODE: 2J622) (now SCI Technology Inc.) for DCU qualification and production with a period of performance from FY 2002 to FY 2007 with a value of .

(2) H92241-08-C-0008. TAKO awarded a sole-source cost plus fixed fee contract to Sanmina-SCI (CAGE CODE: 2J622) (SCI Technology Inc.) for DCU sustainment support under USSOCOM Justification and Approval Control Number TAKO 08-05 under the authority of 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

The contract period of performance was from FY 2008 to FY 2013 with a value of

(3) H92241-13-D-0006. TAKO awarded a sole-source cost plus fixed fee contract with SCI Technology Inc. (CAGE CODE: 2J622) for DCU sustainment, and maintenance and engineering services under USSOCOM Justification and Approval Control Number TAKO 12-29 under the authority of 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302- 1(a)(2)(ii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”. The contract Period of Performance is from FY 2013 through FY 2017 with an estimated value of .

b. Acquisition data availability. As documented in paragraph 5 above, the Government does not own the technical data rights for the DCUs and would incur considerable cost and a schedule delay to procure and /or develop the packages.

c. Unusual and compelling urgency. Not applicable.

d. Subcontracting competition. Since this acquisition is for an existing aircraft subsystem, the Contractor has identified existing qualified sources that provide materials and components that meet stringent performance and durability requirements. SCI Technology has an existing DCMA approved Master Subcontracting plan, dated 28 March 2012 – 30 September 2017.

Goals for Individual Subcontracting plans for Small Business, Small Disabled Business, Women-owned Small Business, HUBZone Small Business, Veteran-owned Small Business, Service-disabled Veteran-owned Small Business, and Historically Black Colleges & Universities/Minority Institutions will be based on the total subcontracting dollars for a particular proposal. Goals will be further calculated based on the availability of qualified resources for the forecasted purchases. The Master Subcontracting Plan was submitted in accordance with the provisions of Public Law 95-507, The Small Business Act, and FAR Clause 52.219-9, Small Business Subcontracting Plan. The following FAR/DFARS subcontracting clauses are included:

1) 52.219-9 Small Business Subcontracting Plan – Alternate II (Oct 2001)

2) 52.244-5 Competition in Subcontracting

3) 52.244-6 Subcontracts for Commercial Items

4) 252.219-7003 Small Business Plan (DoD Contracts)

Approval

Based on the foregoing justification, I hereby approve the procurement of up to eighteen Data Concentrator Units (Part Number 5443000-002), a component of the MH-60 Blackhawk Common Avionics Architecture Suite (CAAS) cockpit, for the Technology Applications Program Office (TAPO) to SCI Technology Inc., 13000 South Memorial Parkway, Huntsville, AL (CAGE Code 2J622) on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), as implemented by 6.302-1(a)(2)(ii), subject to availability of funds, and provided that the equipment herein described have otherwise been authorized for acquisition. TAPO will purchase up to four (4) DCUs under an O&M-funded CLIN (valued at $193,104), one DCU under a RDT&E funded CLIN (valued at $48,276) and up to thirteen (13) additional units under a Procurement-funded CLIN (valued at $627,588). Based on the single DCU price of $48,276, the estimated contract value for eighteen units is $869,000. The contract will include a period of performance from 25 September 2015 – 24 September 2017.

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