JA - BRAND NAME FINAL.pdf

Control Number: JA-21-E-009

Contractor: TBD Program: Caterpillar 3456 Engine and SR4B Alternator Rebuild and Refurbishment

JUSTIFICATION REVIEW DOCMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION (Limited Competition)

Program/Equipment: This is a service contract to provide manufacturer-specific overhaul and rebuild of Caterpillar (CAT) 3456 diesel engines and the refurbishment of Caterpillar SR4B alternators mated as a power pack supporting the 840kW Deployable Power Generation & Distribution System (DPGDS). The power pack is used in two configurations; MEP-810A (C-130 Transport), NSN 6115-01-486-4033 and MEP-810B. (Highway Transport), NSN 6115-01-486- 4032. Each individual system consists of two power packs in order to achieve the 840kW output.

Authority: 10 U.S.C. 2304©(1), as implemented by FAR 6.302-1© Only one responsible source and no other supplies or services will satisfy agency requirements, and FAR 6.302-1 Brand Name descriptions.

Amount: $4,406,100.50

Prepared by:

Albert Lyou DSN: 861-5464 Product Realization Engineer Date: October 5, 2020

Procuring Contracting Officer:

Robert Connors DSN: 861-4915 Contracting Officer Date Reviewed: October 6, 2020

Technical Representative:

Albert Lyou DSN: 861-5464 Product Realization Engineer Date Reviewed: October 5, 2020

Requirements Representative:

Quesandra Ward DSN: 861-5422 ILSC Manager, USAMC Date Reviewed: October 6, 2020

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

Chief, Branch Power Environmental Directorate:

DSN:

Signature: _________________________ Date:

Legal Counsel:

DSN:

Signature: _________________________ Date:

Justification And Approval For Other Than Full And Open Competition (Limited Competition)

1. Contracting Activity:

U.S. Army Contracting Command

CCAP-CCE

6565 Surveillance Loop, Building 6001 Aberdeen Proving Ground, Maryland 21005

2. Description of Action: Communications Electronics Command (CECOM) Integrated Logistics Support Center (ILSC) requests a new, Five (5) year Firm Fixed Price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract. FY21 Army Working Capital Funds (AWCF) will be used for task orders issued in FY21 and the appropriate year AWCF dollars will be utilized for the out years. The total estimated price for this contract is $4,406,100.50. The anticipated contract award date is March 5. The contract will be for the overhaul and rebuild of Caterpillar (CAT) 3456 diesel engines and Caterpillar SR4B Alternators to specifications and tolerances in accordance with CAT standards.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The CAT 3456, NSN 01-609-8907, engines are employed around the world in medium voltage generators and power plants performing critical Department of Defense (DOD) missions.

The SR4B, NSN 01-623-4053, is part of Deployable Power Generation and Distribution System (DPGDS). The DPGDS is a system of electrical power generation and distribution equipment that is designed to support U.S. Air Force bare base and U.S. Army prime power requirements.

The Engine and Alternator when paired is defined as a power pack. The power pack comes in two configurations; roadside and curbside also known as GEN 1 and GEN 2 in the MEP-810. The NSNs for this are 6115-01-679-2296 and 6115- 01-680-7516.

Over time and use, these items in the Army’s inventory breakdown for various reasons. This contract will take the inoperable or worn out items and bring them back to a “like new” condition.

The contract vendor will procure the parts and provide manufacturing-specific overhaul and rebuild of Caterpillar (CAT) 3456 diesel engines, in all aspects, to manufacturer warranty-level quality; the assembly and disassembly, physical and mechanical inspection, cleaning, maintenance, electrical load testing, and refurbishment of Integrated Power Services (IPS) Caterpillar SR4B alternators;

the testing and validation of the complete power pack, packaging of the finished power pack; and shipment of the power pack. The power pack is the only Government Furnished Materials (GFM). Overhauls will be completed in accordance with the specifications outlined by CAT. Overhauls will include engine/alternator decoupling and recoupling, engine disassembly, engine reassembly, cleaning of components, inspection of engines, disassembly and reassembly of alternators, physical and mechanical inspection of alternators, cleaning of alternators, maintenance of alternators, electrical testing of alternators, and refurbishment (dip and bake) of alternators. Referencing Caterpillar specifications, the offerors will have personnel certified with the required knowledge, experience, and technical ability to provide the required services.

Expected Basis of Estimate (BOE) is 10 per year of NSN 6115-01-623-4053 – Engine 6115-01-609-8907 - Alternator, 6115-01-679-2296 and 6115-01-680- 7516- Power Packs, estimated total is $4,406,460.50. If repair, as defined by the Performance Work Statement (PWS) titled Caterpillar 3456 Engine Overhaul and SR4B Alternator and Refurbishment, is outside of the scope of overhaul, the estimates for the cost of the engine or alternator work is provided as individual estimates in the event that repair is needed for all 10 units. This is a new contract with CECOM. The historical data for Engine costs were taken from W912HQ-17- P-0075. The historical data for Alternator costs were taken from W912HQ-17-P- 0094.

ENGINE NSN 6115-01-623-4053

YEAR PER UNIT QTY TOTAL

2021 $5,981.26 10 $59,812.60 2022 $6,100.88 10 $61,008.85 2023 $6,222.90 10 $62,229.02 2024 $6,347.36 10 $63,473.61 2025 $6,474.31 10 $64,743.08

TOTAL 50 $311,267.15

ALTERNATOR NSN 6115-01-609-8907

YEAR PER UNIT QTY TOTAL

2021 $56,858.69 10 $284,293.46 2022 $57,995.87 10 $289,979.33 2023 $59,995.87 10 $295,778.92 2024 $60,338.90 10 $301,694.50 2025 $61,545.68 10 $307,728.39

TOTAL 50 $1,479,474.59

POWER PACKS NSN 6115-01-679-2296, 6115-01-680-7516

YEAR PER UNIT QTY TOTAL

2021 $100,512.63 10 $502,563.14 2022 $102,522.88 10 $512,614.40 2023 $104,573.34 10 $522,866.69 2024 $106,664.80 10 $533,324.02 2025 $108,798.10 10 $543,990.50

TOTAL 50 $2,615,358.76

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(c) Only one responsible source and no other supplies or services will satisfy agency requirements, and brand name descriptions.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2). when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

As further described in FAR 6.302-1 (c), an acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer does not provide for full and open competition, regardless of the number of sources solicited; and shall be justified and approved in accordance with FAR 6.303 and 6.304.

The technical data package for the two configurations of the 840 kW Power Unit, MEP-810A (C-130 Transport), NSN 6115-01-486-4033 and MEP-810B (Highway Transport), NSN 6115-01-486-4032 and the parts used in the repair process were not acquired by the Government. The engine and alternator are commercial items with the technical data owned by Caterpillar. Caterpillar’s Program Manager, Rich Garner, confirmed Caterpillar would not sell the Technical Data Rights to the Government on October 9, 2020.

The power pack itself has a roadside and curbside configuration which are mirrored each with its own NSN, each DPGDS system has a roadside and curbside power pack. The configurations of the actual trailer (system) will not impact the TDP for the power pack.

It is essential for the personnel performing the overhaul and the replacement parts for the Caterpillar 3456 Engine and SR4B Alternator Rebuild and Refurbishment be certified by CAT to ensure the finished product meets specifications outlined by CAT. If the system does not meet specifications, the Power Pack can suffer anything from reliability issues to total engine failure.

Furthermore, CAT would no longer provide a warranty for the engines if the system does not meet its required specifications. Therefore, consideration of a product manufactured by another company that does not have CAT certification is precluded.

Reverse engineering is not possible due to the Environmental Protection Agency (EPA) emission regulations restricting manufacture of new engines. If an engine cannot meet the emission specifications, currently at Tier 4, the engine cannot be manufactured new. The age of the engines needing repair are Tier 0, therefore making Reverse engineering an impossible option. The Air Force transitioned all MEP-810(A/B) systems to CECOM. The Air Force hasn’t supported the system since they turned them over to CECOM on May 7, 2019. If the new CECOM contract is not awarded there could be significant delays and down time to Missile Defense Agency (MDA) sites around the globe as well as other installations.

6. Efforts to Obtain Competition: In accordance with FAR 5.201, this action will be synopsized in the Government Point of Entry (GPE). Any bids or proposals received shall be considered. CECOM ILSC and ACC-APG have conducted extensive market research in accordance with FAR Part 10. This included posting a Sources Sought Notification on the Beta.SAM website from 9 November 2020 through 16 November 2020 to stimulate industry interest in an effort to introduce competition. Details of the market research conducted are provided in Section 8 below. To date, two (2) CAT certified contractors responded to the Sources Sought with interest.

Subcontracting plans are not required for small business set-asides in accordance with FAR 19.702(b)(1).

7. Actions to Increase Competition: Sources Sought results showed 2 positives responses out of 31 potential vendors. When solicited, the government expects competition among CAT certified, small business vendors for services to the system.

8. Market Research: Pursuant to Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), the technical experts within CECOM ILSC and ACC-APG conducted market research. On June 1, 2020, Market Research was performed by reviewing the Small Business website.

Thirty-One (31) small businesses, under NAICS 333618, are in the Maryland or bordering states. Market Research was performed locally to offset the cost of shipping the heavy generators, engines and alternators since this effort will be awarded with Lowest Price Technically Acceptable (LPTA), however, locality is not mandatory.

A Sources Sought Announcement (SSA) was issued 9 November 2020 on the GPE and potential offerors were given until 16 November 2020 to respond. The SSA’s purpose was to increase the number of authorized resellers, and to increase participation by various small businesses. Two CAT certified small businesses responded to the SSA, (Melton Sales & Service, CAGE Code 4X8W5 and Carter Machinery Company, CAGE Code 7BAW0). Both vendors have been deemed capable of meeting the Government’s requirements.

Based on the market research performed, the Government technical experts have determined that there are at least two (2) small business offerors with the required knowledge and experience and technical ability necessary to provide the required services.

9. Interested Sources: The government posted a sources sought to the Government Point of Entry on 9 November 2020.Two CAT certified small businesses responded with interest to the posting, Melton Sales & Service (CAGE Code 4X8W5) and Carter Machinery Company (CAGE Code 7BAW0).

Both venders have been deemed capable of meeting the Government’s requirements. This substantiates the path forward to compete this requirement to CAT Certified small businesses.

10. Other Facts: Procurement history. There are no previous Caterpillar 3456 Engine Overhaul and SR4B Alternator and Refurbishment contracts with the Army. This is a new contract with Communications Electronics Command (CECOM). Firm Fixed Price (FFP), Indefinite Delivery, Indefinite Quantity (IDIQ) W912HQ-18-P-0128, with 249TH Engineer Battalion was awarded September 24, 2018 through September 23, 2021 and currently repairs CAT 3456 Engines.

CECOM doesn’t have the ability to access any information regarding Caterpillar 3456 Engine and SR4B Alternator Rebuild and Refurbishment, W912HQ-18-P-

0128 prior to Modification P00007, which was awarded on July 22, 2019 by CECOM. Our data collecting systems and contract writing systems are non-compatible with the Air Force.

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

Product Realization Engineer Albert Lyou

Date: ________________________

Signature: ________________________

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Inventory Management Specialist

Date: ________________________

Signature: ________________________

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based upon price analysis.

14. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Procuring Contracting Officer Robert Connors

Date: ________________________

Signature: ________________________

APPROVAL

Based on the foregoing justification, I hereby approve the solicitation of a five-year contract for the overhaul and rebuild of Caterpillar (CAT) 3456 diesel engines and Caterpillar SR4B Alternators at an estimated $4,406,100.51 exclusively to CAT Certified small businesses on the basis pursuant to the authority of 10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1(c) Only one responsible source and no other supplies or services will satisfy agency requirements, and brand name descriptions, subject to the availability of funds and provided that the services herein described have otherwise been authorized for acquisition.

Command Advocate for Competition Cynthia A. Jackson

Date: ________________________

Signature: ________________________