J A-W56HZV09G0001.pdf

SPRDL1-12-R-0215

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency Land – Warren is the procuring activity for this action. The statutory authority permitting other than full and open competition is U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements." FAR 6.302-1(a)(2) states that an agency is not required to provide for full and open competition, if there is only one or a limited number of responsible sources and no other supplies or services will satisfy the agency's requirements.

PART I - Description of Item Required:

a. NOUN: PUMP, OUTPUT OIL

b. ORIGINAL QUANTITY: 140

OPTIONAL QUANTITY: 140

TOTAL QUANTITY: 280

c. NSN: 2520-01-198-0495

d. MPN: 23018062

e. VEHICLE SYSTEM: M113 Family of Vehicles (FOV)

f. ESTIMATED UNIT PRICE: $645.77

g. ESTIMATED ORIGINAL VALUE: $90,407.80

ESTIMATED OPTIONAL VALUE: $90,407.80

ESTIMATED TOTAL VALUE: $180,815.60

h. PRON NUMBER: EH2Y1426EH AMD 01

i. TYPE OF FUNDS: AWCF 060011

j. TYPE OF CONTRACT: HARDWARE / Firm Fixed Price

PART II - Technical Information and Certification

1. The US Army Tank-automotive and Armaments Command requires the acquisition of the above item. The only approved source for the above item is:

Contractor: ALLISON TRANSMISSION INC.

P/N: 23018062

CAGE: 73342

2. Reasons the item is not suitable for full and open competition:

a. Status of the Technical Data Packages (TDP):

This item is source controlled to ALLISON TRANSMISSION INC. The Government does not have drawings that are suitable for competitive procurement. The drawings were not defined for the following reasons:

(1) The above identified approved source had developed, tested, and obtained the Government's approval of this pump, a key component of the M113 transmission at their own cost. The Government did not fund their efforts in development and qualification testing of this item. Additionally, the Government did not fund them to prepare fully detailed TDPs after approval. As such, ALLISON TRANSMISSION INC is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

(2) The Government does not own the patent rights to their data that would be required to produce a competitive TDP.

b. Efforts to Develop a Competitive Package:

(1) There are no current plans to acquire a competitive TDP because funds are not available to acquire the data necessary to support a competitive acquisition. This program is critical to M113's readiness. Through our previous experience, we estimate that to develop a competitive package for this item through reverse engineering could run as high as $450K and could require a delay of at least eighteen (18) months, to include fabrication and testing of the prototype hardware and releasing a validated TDP. Added to these costs and delays would be the cost and time involved to test and qualify another source(s) at an estimated cost of additional $250K and delay of 6-12 months. Qualification and durability testing would be required to prove out this item manufactured by new sources. Not testing would pose a high risk as a premature failure of this item in the field could result in extensive loss of equipment.

No more M113 vehicle tests are planned, since the vehicle is planned to be phased out.

(2) The Government would not be able to recover through subsequent competition the additional costs involved to allow the procurement to become competitive.

(3) If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least eighteen (18) months would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs.

c. Demonstrate the approved contractor's unique qualifications:

(1) ALLISON TRANSMISSION INC is the sole owner of their drawing and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. This item is a specifically designed pump for application to the M113 Cross Drive Transmission. The transmission output oil pump is part of the Bevel Gear Assembly. It works with the scavenge and input pumps to maintain sufficient oil flow and pressure for steering.

(2) No vendor other than ALLISON TRANSMISSION INC. developed and integrated this item., successfully passing all required testing. Only ALLISON TRANSMISSION INC. has the requisite technical and engineering expertise to perform all efforts required to produce the pump identified in this J & A.

(3) The approved source identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material and/or improper process/quality control during manufacturing of this pump could result in malfunctioning or complete failure of this item. A persistent malfunction or a failure of this pump would result in transmission failure and would jeopardize the mission. This condition would force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate, until the damaged/malfunctioning pump is either repaired or replaced.

(4) This item is a major hydraulic component for the M113 propulsion system. Only the ALLISON TRANSMISSION INC. supplied pump passed all unique characteristics in the areas of performance, design, construction, operations in various environmental conditions, and vehicle system testing. These tests are critical to ensure that the M113 FOV would be mission capable and operationally ready during all operational environments. If an untested and/or unapproved pump is installed in the vehicle, the pump could malfunction and fail to protect the vehicle’s transmission hydraulic system causing catastrophic and permanent damage, severely impacting the mission of the Army's using unit.

d. Efforts to Qualify Additional Suppliers

(1) No vendors are in the process of being qualified at this time, nor will be prior to the contract award.

(2) At this time, there are no current or planned efforts to qualify additional sources due to the fact that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Furthermore, any new source would be required to pass extensive first article/validation testing at the component and vehicle level. Vehicle testing is required to ensure that an additional supplier obtains the same performance levels (function, safety, RAM- D, etc.), as those produced by ALLISON TRANSMISSION INC. The additional time required for these actions would preclude the delivery of the items in a time frame that would satisfy the Government’s needs.

(3) Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

(4) Any new vendor who decides to pursue the qualification process would be directed to go through the Competition Advocate's Source Approval Program. The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item for future buys.

e. Market Research:

(1) This item does not appear on either the Competition Advocate's Shopping List (CASL) or the Advance Procurement Planning List (APPL) dated 21 February 2012. A "Source Sought" synopsis was requested from the Competition Management Office, on 8 March 2012. To date no contractors have expressed an interest in this item.

(2) To-date, no additional contractors have expressed an interest in this item.

3. The POC for this action is Lorenzo McClelland, AMSRD-TR-E/LCV, ext. 32235.

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief.

Name: Gerald Schuetz Signature: / s / Title: Team Leader Date: 14 May 2012

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH2Y1426EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: Nancy Nguyen Date: May 14, 2012

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Name: Jim Cole Title: LEAD LOGISTICS MANAGEMENT SPECIALIST Signature: /s/ Date: 14 May 2012

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1- 12-R-0215. It is proposed to negotiate a Firm-Fixed-Price contract with Allison Transmission Inc.

73342) for their part number 23018062, national stock number 2529-01-198-0495. Allison Transmission is the sole owner of the drawings and technical data rights and the Government does not own proprietary rights to the Technical Data Package.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is Shantel Ripple, OFFICE SYMBOL: ZGAA, Ext.282-3160.

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Due to the value of the procurement, certified cost and pricing data is not required; if necessary other than certified cost or pricing data will be used to support price reasonableness in accordance w/ FAR 15.403-3.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Marlene J. Scheele

Title: Contracting Officer

Signature: /s/

Date: 13 Jun 12

PART V - Legal Concurrence

Concur: // Darin R. Morency //

Date: 06/12/2012

W56HZV-09-G-0001VD18 03 October 2012