FY26-27 FSR JA_R1.pdf

Control Number: 2025-067

DISTRIBUTION STATEMENT A. Approved for public release; distribution is unlimited.

JUNE 2025

JUSTIFICATION REVIEW DOCUMENT

FAR Part 13 Justification and Approval

Simplified Procedures for Certain Commercial Items

Program/Equipment: V903 engine Field Service Representative (FSR) support to include technical assistance, technical data collection and reporting, troubleshooting;

and V903 engine repair consisting of on-site engine modifications and Engine Control Module (ECM) software updates, and diagnostic services. This engine supports the Self-Propelled Howitzer Systems (SPHS) M109A7, Bradley Fighting Vehicle (BFV) M2A4, Multiple Launch Rocket Systems (MLRS) M270, Armored Multi-Purpose Vehicles (AMPV) Family of Vehicles.

Authority: The statutory authority permitting other than full and open competition for this action is Title 41 United States Code (U.S.C.) §1901 as implemented in Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii) Sole Source Acquisitions, “Simplified Procedures for certain Commercial Items”.

Amount: The total estimated value of this procurement is $5.6 million which includes 12,320 FSR labor hours, and material.

Prepared by: Chelsee Crutchfield Phone: 571-588-8825 Contract Specialist Date: 5 August 2025 Chelsee.n.crutchfield.civ@army.mil

Contracting Officer: Christina Schmidt Phone: 571-588-9399

Contracting Officer Date: 13 August 2025 Christina.a.schmidt.civ@army.mil

Technical: Jeffrey T Budd Phone: (586) 519-3476

Title: Program Officer (Acquisition) Date: 7 August 2025 E-mail: jeffrey.t.budd6.civ@army.mil

Requirements: Jeffrey T Budd Phone: (586) 519-3476 Title: Program Officer (Acquisition) Date: 20 August 2025

E-mail: jeffrey.t.budd6.civ@army.mil

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

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Legal Counsel:

Amanda Collins Phone: 586-282-5792 Attorney Advisor Email:Amanda.a.collins5.civ@army.mil

_____Digital Signature with visible date______________________

JUNE 2025

FAR Part 13 Justification and Approval Simplified Procedures for Certain Commercial Items

1. Requiring Activity: Program Offices: Self-Propelled Howitzer System (SPHS), Bradley Fighting Vehicle (BFV), Multiple Launch Rocket Systems (MLRS), and Armored Multi-Purpose Vehicles (AMPV), U.S. Army Tank-automotive and Armaments Command (TACOM) Warren, MI.

2. Contracting Activity: Army Contracting Command – Detroit Arsenal, MI (ACC- DTA) is the responsible contracting activity for this action.

3. Description of Action: ACC-DTA proposes to award a new, two-year Firm Fixed Price Level of Effort (FFP-LOE) commercial service contract to Cummins Incorporated (Cummins) CAGE 04MP1, located at 1784 E Brooks R, Memphis, TN 38116, for on-site V903 Engine Field Service Representative (FSR) technical support for Program Offices SPHS, BFVs, AMPV, and MLRS. This contract will have an anticipated period of performance of October 2025 to September 2027. This procurement will utilize FY 26- 27 Weapon Track Combat Vehicle (WTCV) funding. This contract may be awarded incrementally through modifications.

4. Description of Supplies/Services: The services to be awarded under this contract for V903 engine FSR support include technical assistance, technical data collection and reporting, troubleshooting; and V903 engine repair to include on-site engine modifications and Engine Control Module (ECM) software updates, and diagnostic services. An FSR will be available throughout the vehicles’ production processes and in accordance with power pack and mobility testing specifications. Anticipated performance locations are: York, PA; Elgin, OK; Anniston, AL Anniston Vehicle Assembly Center and Anniston Army Depot; Ft. Cavazos, TX; Red River Army Depot, Texarkana TX; and Ft Bliss, TX. Additional locations may be added, to include both Contiguous United States (CONUS) and Outside the Contiguous United States (OCONUS) locations.

The total estimated value of this procurement is $5,641,123 which includes 12,320 FSR labor hours, material, and other direct costs (ODC). The total estimated dollar amount of this action is based on historical contract information and an Independent Government Cost Estimate (IGCE) dated 5 August 2025, prepared by the Operations Research Specialist in PM Self-Propelled Howitzer Systems.

JUNE 2025

IGCE

Description FY26 FY27

Material $175,864 $235,671 Labor (6,160 hours per year) $2,587,668 $2,641,920

Total* $2,763,532 $ 2,877,591

*Labor Overhead, Other Direct Charges (ODC), G&A, and Profit/Fee are included in the estimates

5. Authority Cited: The statutory authority permitting other than full and open competition for this action is Title 41 United States Code (U.S.C.) §1901(e)(2) as implemented in Federal Acquisition Regulation (FAR) 13.501(a)(1)(ii) Sole Source Acquisitions, “Simplified Procedures for certain Commercial Items”. This authority authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million.

6. Reason for Authority Cited: This requirement cannot be satisfied through a full and open competition because the service is only available from one source who can satisfy the unique ability of providing FSR Technical Support Services to the Cummins V903 engines. The engines to be repaired under this follow-on effort were designed and developed by Cummins, Inc. who has retained control of the proprietary design, manufacturing, and maintenance data.

In addition to having access to this data, Cummins FSRs receive specialized V903 training through a Cummins training program prior to servicing V903 engines. This knowledge is critical to supporting the BAE production lines with GFM V903 engines. As Cummins supports four different vehicle programs, potential for delay varies depending on warranty usage and site location, resulting in a one to two month delay per production line, per engine. The delay may also vary based on potential engine faults, which may in turn delay production and become a Government-caused delay on the production contract(s). Further, Cummins engines come with an industrial warranty.

This warranty is central to the Government’s strategy for responding to V903 problems throughout the Production and Fielding process. Since repairs and services are performed by an authorized Cummins FSR, the warranty stays intact should additional problems arise down the line. On 4 September 2025, the Contract Specialist sent an email request to Cummins to inquire about obtaining a Specifically Negotiated License, however to date, Cummins has not provided a response.

a. Background: Starting in FY17, the V903 engines transitioned from contractor furnished material (CFM) to Government furnished material (GFM) which led to a

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various locations. Award to Cummins Inc. is necessary in order to be able to shift assets between locations as necessary to facilitate performance.

b. Alternatives: Conducting a competitive acquisition was determined not feasible due to the lack of technical data as described above.

c. Impact if not approved: If this contract is not issued to Cummins, and in addition to the stated duplicated costs above totaling an estimated $1.2M, the previously mentioned vehicle production delays would occur due to GFM engine issues which would then negatively impact unit fielding. The Government would also incur additional cost burdens, schedule burdens, and re-planned unit training due to disrupted fielding schedules. Therefore, any delay to this FSR technical support negatively affects Army fielding objectives to provide upgraded capabilities associated with SPHS, Bradley, AMPV, and MLRS vehicles to Soldiers. Without the timely repairs provided by the FSR on-site support, the Soldier is more vulnerable as a result of missed fielding since the Soldier does not have the most up-to-date vehicles and training.

7. Efforts to Obtain Competition:

a. Effective competition: The Government is taking no further action to increase competition for this action due to the reasons cited above. The Contracting Officer will publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

b. Subcontracting Competition: Cummins Incorporated, as a large business, will be required to submit a subcontracting plan for Contracting Officer approval, prior to contract award. The resultant contract will include all applicable FAR and DFARs subcontracting clauses.

8. Actions to Increase Competition: Only Cummins has the knowledge and expertise necessary to meet the Government’s requirements. Although no further action to increase competition is contemplated at this time, the Government will continue to survey the marketplace for alternatives, and review the acquisition strategy should additional information be received. Any information received will be considered to determine if a future competitive acquisition could be conducted, or to determine potential future requirements.

9. Market Research: ACC-DTA published a Sources Sought Notice/Request for Information on SAM.gov from 30 May 2025 to 13 June 2025. One response was received from ASRC Federal Advanced Research, LLC. After reviewing the response from ARSC Federal, LLC, the PEO-GCS Assistant Program Manager (APM) determined that ARSC would not be able to perform the stated work due to lack of hands-on technical expertise with Cummins’ V903 engines. FSR qualifications and

JUNE 2025

warranty impacts were also not addressed. Additionally, ASRC Federal Advanced Research, LLC did not explain how they intended to establish availability of repair parts and deploy FSR support for V903 Engines. Based on the incomplete response provided the Government was unable to determine ASRC Federal Advanced Research, LLC capable.

10. Interested Sources: To date, no other sources have written to express an interest in this requirement.

11. Other Facts:

a. Procurement history.

1) Contract numbers and dates of all awarded contracts for these same requirements:

i. W56HZV-21-C-0070: In December 2020, ACC-DTA awarded an urgent one-year, sole source FFP LOE, contract for Field Service Representatives, for maximum value of $429,600 for the V903 engine. Period of Performance was for 10 months from December 2020 through September 2021.

ii. W56HZV-21-C-0133: In September 2021, ACC-DTA awarded a one-year, sole source FFP-LOE, contract for Field Service Representatives, for a maximum value of $ 1,264,519 for the V903 engine. Period of Performance (PoP) was for 12 months from October 2021 through September 2022.

iii. W56HZV-22-C-0077: In September 2022, ACC-DTA awarded a one-year sole source FFP-LOE, contract for Field Service Representatives, for a maximum value of $ 2,200,656.82 for the from October 2022 through September 2023.

iv. W56HZV-23-C-0086: In September 2023, ACC-DTA awarded a one-year sole source FFP-LOE, contract for Field Service Representatives, for a maximum value of $ 3,016,578 for the from October 2023 through September 2024.

v. W912CH-24-C-0033: In September 2024, ACC-DTA awarded a one-year sole source FFP-LOE contract for Field Service Representatives, for a maximum value of $5,217,133 for the V903 Engine.

2) Competitive Status: All actions were sole source to Cummins.

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3) Authority previously cited if less than full and open competition was used:

• W56HZV-21-C-0070 cited FAR 6.302-2(a)(2), Unusual and Compelling

Urgency

• W56HZV-21-C-0133, W56HZV-22-C-0077, and W56HZV-23-C-0086, W912CH-24-C-0033 cited FAR 13.5.

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

5) No unusual patterns have been identified.

6) Protests: N/A. There have been no protests received.

b. Other facts: None

JUNE 2025

All signature pages are separate from the body of the document.

12. 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.

Jefferey T Budd Program Officer (Acquisition)

13. 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.

Jeffrey T Budd Program Officer (Acquisition)

14. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The contractor’s proposal will be reviewed by the Government to ensure a fair and reasonable price. Price reasonableness will be based upon a cost and price analysis, an independent Government estimate, and price history. In accordance with FAR 15.403-1(b)(3), certified cost or pricing data will not be required, as these services are commercial. The contractor will be required to submit other than certified cost or price data for negotiations to be conducted.

Christina Schmidt Contracting Officer

15. Contracting Officer Certification: Include the following statement: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Christina Schmidt Contracting Officer

JUNE 2025

Approval

Based on the foregoing justification, I hereby approve the procurement of Cummins V903 engine FSR support on an other than full and open competition basis pursuant to the authority of the authority of Title 41 U.S.C. §1901(e)(2) as implemented in FAR 13.501(a)(1)(ii), “Simplified Procedures for certain Commercial Items,” which authorizes the use of simplified procedures for the sole source acquisition of supplies and services.

The total estimated value of this contract is $5.6M for a two-year period of performance from October 2025 to September 2027. The approval is subject to availability of funds, and provided that the services herein described have otherwise been authorized for this acquisition.

Rachel A. Capaldi Advocate for Competition