Notice of Intent to Single Source: For the procurement of 10 manufactured CD2 power supplies from ARC Technology Solutions LLC

Title of Procurement

CD-2 Power Supply

Program Office and Point of Contact

Radar Product Division, FAALC, AML-2000

Description of Supplies/Services

The Federal Aviation Administration (FAA) proposes to acquire from ARC, under single source procedures (10) newly manufacture power supplies, PN 603127. This Power Supply is a form fit and functional (FFF) replacement power supply that was designed and manufactured by ARC over ten (10) year ago to replace the old obsolete power supplies that was original manufactured by the Hyperion to support the CD-2 system. The Hyperion power supply is no longer supported.

The FAA approached ARC to repair the current ARC power supply and was informed that they no longer support repair or guaranty repair of this power supply due to numerous obsolete internal components to the power supply, but they would support a redesign/upgrade to the power supply that would address the obsolete component issues, which will incur an NRE cost to the FAA.

In addition, support for the CD2 power supplies was impacted in August of 2017 when a BIN inspection was conducted on the CD2 power supplies, in which all of the defective/non supportable Hyperion power supplies were removed and survey out of stock. This action reduced the amount of available stock needed to support the CD-2 system. Therefore, the FAA needs to acquire additional new stock from ARC to support the CD-2 system. Currently the FAA is zero stock on this CD2 power supply with one at ARC pending evaluation to see if it can be repaired.

Authority

The FAA proposes to procure the requirements on a single source basis as contemplated by AMS 3.2.2.4 in that ARC is the only source capable of meeting the FAA’s requirements due to part availability concerns. The CD2 power supplies are necessary and important to support the FAA’s mission. ARC is the only known source currently capable of supporting the FAA needs. The FAA may contract with a single source when it is determined to be in the best interest of the FAA. The FAA does not control the spec/drawings for the ARC power supply to promote open competition.

Rationale Supporting Use of a Single Source

The CD2 power supply are wholly manufactured by ARC. The rights to all proprietary information necessary to conduct manufacture of these assets are owned by ARC and have not been authorized for release to any third-party vendors. As such, ARC is the only qualified and authorized source capable of meeting the FAA requirement for this serviceable asset use for the CD2 systems. It is in the best interest of the FAA to use a single source to replenish the CD2 power supply stock because the subject requirement is only available from one source.

Market Analysis

The CD2 power supply was developed and produced by ARC as a FFF replacement. The power supply functionality is specific, unique and completely different from any other system in the world. Only ARC has the required system knowledge to provide adequate engineering support. Encouraging competition is not appropriate for this power supply since there is proprietary intellectual property involved. Market analysis will not be conducted due to the fact this requirement can only be purchased from one source. Previous market analysis was conducted over ten years ago when the FAA was searching for a source to develop a form fit and functional replacement in which ARC was selected.

Other Facts Supporting Use of Single Source

None