JA SPRDL1-19-R-0091_Redacted.pdf

J&A SPRDL1-19-R-0091

(Previous J&A SPRDL1-16-R-0030 )

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

5. Reason for Authority Cited: The main component of the Fan Repair Kit, Army Part Number (P/N) 5705520 is the cooling turbine/tubeaxial fan assembly, P/N 12336769. Cabin air is supplied as compressed hot waste air bled off the engine turbine that is passed through the cooling turbine/tubeaxial fan assembly to drive it, which then flows through an air to air heat exchanger. The fan side of cooling turbine/tubeaxial fan draws in cool air which passes through the air to air heat exchanger cooling the exhaust gasses. In essence, the part operates much like an engine turbocharger. After the air is cooled by the heat exchanger it is allowed to expand, further decreasing its temperature. Once exiting, the now cool air passes through the NBC filtration unit before mixing with cabin air and being delivered to the cabin. Without the fan to cool the air passing through the heat exchanger, the air temperature entering the NBC would be too high; causing it to fail and potentially introduce the crew to contaminated air.

Without the cooling of the air, the internal temperature of the cabin would rise to high levels making for uncomfortable and potentially unsafe conditions. Typically fans are driven through electric motors, through belts, or direct couplings to an engine. This design is unique in the fact that it is using work created by exhaust gasses passing through a turbine to flow air across a heat exchanger. The design of turbochargers utilizing exhaust gasses to do work is not a unique application. However, using them to flow air across a heat exchanger cooling the exhaust gasses that have already flowed through the exchanger vs compressing the incoming air column for an engine intake is.

The Government does not own the build to print Technical Data Package (TDP) for this item.

While the Government owns a performance specification for the fan, it does not own the manufacturing data for the fan. Honeywell is the sole owner of their manufacturing technical data and the drawing is source controlled to Honeywell. The Government does not own the rights to the TDP that would be required to produce a competitive build to print TDP. Only Honeywell has the requisite technical and engineering expertise to perform all efforts required to provide the item identified in this J&A. The current supplier has qualified in accordance with all the necessary test requirements and performance parameters shown on the drawing P/N 12336769 SC (Performance Requirements For Cooling Turbine). The approved source identified above has demonstrated the ability to establish and maintain the processing required to produce this item. An award to any other source would cause a substantial duplication of costs to the Government not expected to be recovered through competition and would cause unacceptable delays in fulfilling Abram's fielding requirements.

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. A significant amount of time and money would be necessary to reverse engineer, procure, and test prototypes before releasing the design. This delay would severely impact the availability of the fan repair kit in the field and Anniston Army Depot's rebuild program. The cooling turbine/tubeaxial fan assembly, P/N 12336769, is critical to the readiness of Abrams vehicles. Through our previous experience, we estimate that the cost to develop a competitive package for this critical item through reverse engineering would cost about $750,000.00 and require an estimated delay of at least 12 months. Testing this cooling turbine/tubeaxial fan assembly, P/N 12336769 (basic shock, durability, humidity, load performance, endurance sand and dust along with vibration) in accordance with the associated specification (SC12336769) are standard requirements on a component of this type. Qualification of the cooling turbine from a new competitor could take approximately 12 months and an estimated cost of $600,000.00. Durability testing at Yuma Proving Grounds would also be required. The 18 month, 6,000 mile durability test for the three prototypes will cost about $300,000.00 each. In summary, the cost to reverse engineer the current design, conduct laboratory testing, fabricate 3 prototypes, and conduct vehicle durability testing would cost approximately $2,250,000.00 and take 42 months.

The Government does not have the funds available, nor will the Government recover the costs to reverse engineer the cooling turbine and qualify an additional source of supply. At the current average annual demand of 144 Fan Repair Kits, current unit cost of $8,808.18, and assuming a 25% savings achieved through competition, the $317,000.00 annual savings will take 7 years to offset the estimated $2,250,000.00 cost of qualifying another source.

The current annual usage is 144 Ea (12 Ea monthly) with a stock on hand of 5 Ea. The Government currently has 71 backorders with an additional 8 Non Mission Capable backorders. The delay of 42 months to develop a build to print TDP and validate another source of supply for this component would cause deadlined vehicles, shortages, production shut down, and threaten the mission readiness of the Abrams vehicle platform. Therefore, it is not feasible to develop a TDP or test and validate another source, without having a severe impact on the vehicle program.

6. Efforts to Obtain Competition:

(a) Effective Competition: Per section 7, potential vendors can submit requests to become a source through the Source Approval Process at any time. Per section 9, a Sources Sought notice was posted. Based on the detailed rational provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action.

(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition:

As stated in section 5 above, a complete TDP and manufacturing knowledge are unavailable to support a competitive procurement. A TDP, and the manufacturability details, in theory could be developed. However, due to the costs associated with developing a competitive TDP and methodology that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements. The Government would not be able to recover the money to reverse engineer and qualify the item within a justifiable time frame.

The main component of the kit, “Fan, Tubeaxial Assembly” / NSN: 4140-01-198-7597, does not appear on the Competition Advocates Shopping List dated 31 August 2018. Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

8. Market Research: Market research was completed by TARDEC Engineering on 16 November 2018 by reviewing the capabilities of vendors with expertise in the field of turbochargers. Specific review of the following companies was performed: Holset Turbochargers, Garret Turbochargers and Borg-Warner. Upon review, it was determined that while the aforementioned vendors all have the capability to manufacture exhaust driven fans like the cooling turbine/axial fan assembly, P/N 12336769, they don’t have the exact component needed. The current fan fits packaging requirements for the NBC/climate control system whereas the alternative manufacturers build engine turbocharger assemblies which would not fit the specific envelope/connection points as required to be a replacement for the current fan assembly. Further, while being similar in design, a turbocharger's intent is to compress air for a dense intake charge on an engine whereas the tubeaxial fan assembly is designed to move a large volume of air without the need to compress. New vendors would require extensive analysis, prototyping, and vehicle testing as described in section 5 above to ensure that the Abrams M1 will properly meet performance specifications with a new supplier’s hardware. The cost of such analysis, prototyping and testing, as well as time delay would far exceed any cost savings realized by adding another source. Further, the Government does not own build to print technical data to source an additional manufacturer without extensive development and qualification testing. TARDEC Engineering also contacted the current source controlled vendor, Honeywell International Inc. currently listed on drawing 12336769, and verified they still produce the cooling turbine/axial fan assembly.

A Sources Sought Synopsis was posted to Fed Biz Opps on 11-15-2018 Component: Fan Repair Kit

NSN: 4140-01-382-3597

Part Number: 5705520 End Item: Abrams M1A1 M1A2

Fed Biz Opps Link:

https://www.fbo.gov/notices/eb009fb3312bdf936dd38a91b89d5d55

9. Interested Sources : To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2019-086 was posted to Fed Biz Opps on 15 November 2018, as described above, for the Fan Repair Kit, NSN 4140-01-382-3597, Part Number 5705520. Any responses received will be evaluated by the appropriate office.

analysis will be utilized, and negotiations will be conducted if necessary. Certified cost and pricing data will be required.

Typed Name: Jamal M. Brooks Date: ___1/30/2019________________ Title: Chief, Weapons / Soldier Branch Signature: ___//s//____________

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

Typed Name: Jamal M. Brooks Date: ____01/30/2019_______________ Title: Chief, Weapons / Soldier Branch Signature: ____//s//___________

15. Legal Concurrence:

Concur:

Date: 02/06/2019

Approval Authority for Acquisitions Equal to or Greater Than $700,000.00

FOR OTHER THAN FULL AND OPEN COMPETITION

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

a. Noun: FAN REPAIR KIT

b. NSN: 4140-01-382-3597

c. Minimum Quantity: 91 Ea

d. Minimum Estimated Value:

e. Maximum Quantity: 650 Ea

g. Maximum Estimated Value:

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 provision that the property herein described has otherwise been authorized for acquisition.