JA_SPRDL1-17-R-0118_Redacted.pdf

deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC.

PART II - Technical Information and Certification:

1. The United States Army TACOM LCMC requires the acquisition of the above item.

The only approved source for the above item is:

a. Contractor Name: MTU AMERICA

39525 MACKENZIE DR

NOVI, MI 48377

CAGE Code: 72582 MFG Part Number: 8926997 MIL Part Number: 2815012482554

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

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

(1) This item is source controlled to MTU America, Inc. The engine block is part of the 6V53T engine for the M113 armored personnel carrier (APC) family of vehicles (FOV). The Government does not have detail drawings that are necessary for competitive procurement.

(2) MTU has developed, tested, and obtained the Government's approval of this engine block. The Government did not fund MTU’s efforts in development and qualification testing of this item. Additionally, the Government did not fund the preparation of the fully detailed TDPs after approval. As such, MTU is the sole owner of the drawings and technical data rights; and the Government does not have proprietary rights to the TDP that would be required to produce a competitive TDP.

(3) The Government does not own the patent rights to MTU’s data, which would be required to produce a competitive TDP.

b. Efforts to Develop a Competitive Package:

(1) There are no current plans to develop or acquire a competitive TDP. This item is critical to functioning of the engine. The cost to either reverse engineer the part or develop a new part is estimated at $2.7M; developing a TDP for this item would take at least 44 months. The engine block is a very large and complicated machined casting. In addition to the large holes for the cylinders, there are passages for coolant and for oil. These passages are essential for proper cooling and lubrication. Porosity in the casting has to be controlled for casting strength and to prevent internal leaks.

Cost and schedule breakout

Reverse engineer (scan and model) 12 months $0.3M Develop casting dies and special tooling 8 months $0.3M Fabricate prototype blocks (3) 6 months $0.2M Buildup 3 engines 3 months $0.1M Engine testing 12 months $0.1M 5000 mile vehicle test (concurrent) 0 months $1.0M Prepare ECP and ERR 3 months $.015M Post-test vehicle refurb (no impact on timeline) 0 months $0.7M

Total 44 months $2.715M

This estimate is based on the assumption no re-design is needed during the process.

(2) The Government may not be able to recover the costs to create a TDP for this item through subsequent competition. A new contractor would have to develop special tooling, the costs of which would be amortized, most likely making the block more expensive than MTU’s. If the Government conducts the efforts to allow the procurement to become competitive, this 44-month delay would adversely impact operational readiness.

c. Demonstrate the approved contractor's unique qualifications:

(1) MTU is the sole owner of the defining drawings and technical data rights. The Government did not buy MTU’s proprietary rights to produce a competitive TDP. This item is a specifically designed block for application to the M113 FOV engine assembly.

(2) The approved source identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing controls required to repetitively produce this item. The use of incorrect manufacturing/process techniques during fabrication of this engine block assembly could result in a malfunction of this item for what it was designed for, i.e., providing a structural and rigid support for the cylinder heads, pistons, crankshaft, exhaust manifolds, oil pan and various plates and assemblies that assure separation of fuel, air, coolant and oil during varying

4. The POC for this action is Contract Specialist,

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government 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. In accordance with FAR 15.403-4, certified cost or pricing data will be required.

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: 23 Jan 17

PART V - Legal Concurrence

Concur:

Date: 01/24/2017

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $700,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Engine Block Assy.

b. NSN: 2815-01-248-2554

c. Basic Quantity: 165

d. Basic Estimated Value: $

e. Option Percent: 100%

f. Quantity with Option: 330

g. Estimated Value with Option: $

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c) (1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Name:

Title:

Office:

Date:

J&A -

SPRDL1-15-R-0267

HOPSON.LILLI.A.

1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2017.01.27 13:57:45 -05'00'