JA-00917_Redacted.pdf

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Skate Mount Assembly; NSN: 2350016129056
Solicitation number
W912CH-26-C-0022
Issued by

About this file

This is a Department of the Army Justification and Approval (J&A) document for a sole-source procurement.

The Army Contracting Command – Detroit Arsenal (ACC-DTA) proposes to award a firm-fixed-price contract to Merrill Technologies, Commercial and Government Entity (CAGE) code 3DTR4, for the Skate Mount Assembly (NSN 2350-01-612-9056, Government Part Number 12522561, Manufacturer Part Number MTM-10199). The total estimated contract value is $926,244.68 for a quantity of 38 units each (EA), with an option for an additional 38 EA, resulting in a total quantity of 76 EA. The Skate Mount Assembly is a specialized component used on the M1 Abrams Main Battle Tank systems, specifically for the Loader's Armored Gun Shield (LAGS) II. The procurement is authorized under 10 United States Code 3204(a)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), which permits sole-source acquisition when supplies are available only from the original source for a follow-on contract for continued development or production of a major system, and when award to another source would result in substantial duplication of cost to the Government.

The justification cites that Merrill Technologies is the original equipment manufacturer and sole approved contractor for this highly specialized assembly, which must meet extensive military specifications and testing procedures outlined in OPSEC Item Development Specification SB-SA13100. The Government does not possess the detailed manufacturing-level technical data package (TDP) required for competitive re-procurement, and Merrill is unwilling to sell or license the TDP. Market research conducted in September and October 2024 found no alternative sources available commercially. The Government estimated that reverse engineering to enable competition would cost approximately $1,396,150 and take approximately 23 years to recover through competitive savings. The procurement includes subcontracting clauses to maximize small business opportunities. The justification was approved on March 3, 2025, by Rachel A Capaldi, Command Advocate for Competition.

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Text version

1612449038.CIV

Typewritten Text Equipment capabilities, limitations, & vulnerabilities.

1612449038.CIV

Typewritten Text Equipment capabilities, limitations, & vulnerabilities.

1612449038.CIV

OPSEC

Equipment capabilities, limitations, & vulnerabilities.

CUI

JA-00917 - CMO Control No: 2025-027

III, or manufacturability descriptions, so the new source will require extensive manufacturing experience with the systems in order to complete a new design and manufacturing package.

Due to the limited technical data available, reverse engineering is the only recourse for the Government to increase competition through development of a competitive build-to-print TDP. Armaments Center Subject Matter Experts (SME) have estimated the cost of reverse engineering below. Estimates are based on SME knowledge and experience with other programs and items of similar size and complexity.

a) Combat Capabilities Development Command Armaments Center (CCDC-AC)

Engineering SME estimates the cost to develop a competitive package for this assembly through reverse engineering would cost approximately $682,150. This includes fabrication of the prototype hardware and releasing a validated TDP. The subtasks would include the following: identify all deficiencies, conducting market research on available parts and components, identify the system’s components and their interrelationships; obtain existing parts; tear down and understand the design;

create representations of the system in another form or a higher level of abstraction;

create the physical representation of that system, fully define functional parameters, generate Bill of Materials document, build prototypes, and then create a new TDP which would include component drawings and performance specifications.

b) Since there are no procedures in place to determine whether other sources are qualified to meet the Government’s requirements, it would take an additional $14,000 for the U.S Army, CCDC-AC SME Engineers to develop test procedures for the prospective contractors to qualify Skate Mount Assembly samples.

c) It would cost $150,000 to conduct the actual engineering testing/analysis by CCDC-AC Engineers (to include the cost for any additional test equipment or fixtures;

component, safety and system level/higher level assemblies testing or end item systems required to test the Skate Mount Assembly) plus any costs for test facilities and testing on the end item (M1 Abrams Tank) to ensure proper field operation. The

Duplication of Cost through Reverse Engineering Paragraph Task SME Cost Estimate

a. Reverse Engineer of Application Specific Design $682,150

b. Develop Qualification Procedures/Requirements $14,000

c. Testing/Analysis of Application Specific Design $150,000

d. Logistical Development $150,000

e. Systems Support Package (SSP) $250,000

f. Nuclear, Biological and Chemical Contamination

Survivability (NBCCS) $150,000

TOTAL: $1,396,150

analysis includes conducting the actual verification testing, reviewing the engineering data and preparing a technical report to determine whether a new designed assembly has successfully met the qualification process.

d) New technical manuals and logistics procedures will be needed for the new configuration Skate Mount Assembly which will cost approximately $150,000.

e) SSP is needed to maintain the Abrams test vehicles to maintain the test schedule, which will cost at least $250,000.

f) The Skate Mount Assembly is located on the surface of the M1 Abrams system and is exposed to the environment. NBCCS testing is required and will be conducted by the U.S. Army Chemical Biological Command. It will cost approximately $150,000.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a new and competitive Skate Mount Assembly package. At the current average usage rate of 20 units each year, a current unit cost of $12,187.43, and assuming 25% savings achieved through competition, the $60,937.15 in annual savings would take about 23 years to offset the estimated $1,396,150 cost of reverse engineering the item and validating a competitive TDP.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above, the Government is not pursuing competition for this item. Notices required by FAR

5.201 shall be published and any bids or proposals received shall be considered.

b. Subcontracting competition: The solicitation and resulting contract will include subcontracting clauses to maximize small business opportunities and utilization, including FAR clauses 52.219-8, "Utilization of Small Business Concerns";

52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages-- Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)".

7. Actions to Increase Competition:

8. Market Research: The Contract Specialist conducted market research via internet searches on 09 October 2024 using the NSN, P/N, and Nomenclature, concluding the item is not commercially available, part number 12522561 is owned by United States Government (CAGE 19207) and part number MTM-10199 is owned by Merrill Technologies Group Inc. (CAGE 3DTR4). A Sources Sought Notice was posted to www.SAM.gov on 09 October 2024 and was open for 12 days. One source, BHPE LLC expressed interest via automatic email reply, the Contrast Specialist sent out a follow-up on 19 October 2024, and BHPE has since been unresponsive.

Additional Market Research Efforts:

CCDC-AC Engineering SME conducted market research on 19 September 2024 by performing an internet search for the NSN, Government P/N, and Nomenclature. The search was conducted using Google, Ability One, Unicor, and Haystack Gold to find existing suppliers. Google searches did not find the item to be available from distributors or new manufacturing sources. Ability One and Unicor returned no results.

9. Interested Sources: To date, no additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

(1) Contract Number: W56HZV-22-D-0113 Award Date: 28 September 2022 Contractor: Merrill Tool & Machine, Inc.

Contract Value: $246,456.00

(2) Competitive Status: FAR 6.302-1, Sole Source

(3) Authority: 10 United States Code 2304(c)(1) as implemented by Federal Acquisition Regulation 6.302-1.

(4) No plans to increase competition; procurement remains restricted to Merrill Tool & Machine, Inc.

(5) No prior contract for this requirement was accomplished using full and open competition.

(6) No unusual patterns have been revealed by the history of this contract.

(7) No significant changes.

(1) Contract Number: SPRDL1-19-C-0089 Award Date: 19 December 2018 Contractor: Merrill Aviation, Inc.

Contract Value: $630,467.00

(2) Competitive Status: FAR 6.302-1, Sole Source

(3) Authority: 10 United States Code 2304(c)(1) as implemented by Federal Acquisition Regulation 6.302-1.

(4) No plans to increase competition; procurement remains restricted to Merrill Aviation, Inc.

(5) No prior contract for this requirement was accomplished using full and open competition.

(6) No unusual patterns have been revealed by the history of this contract.

(7) No significant changes.

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

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