JA_SPRDL1-19-R-0357_Redacted.pdf

J&A SPRDL1-19-R-0357

(Previous J&A SPRDL1-18-C-0173 is available and located in the PCF file) source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

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 Oil Pan is a critical component of the M88 lubrication system.

The oil pan completes the oil passage circuitry and serves as a collection reservoir for a significant amount of lubricating oil that is needed to cool the air-cooled AVDS-1790 2-series under full load operation. The AVDS-1790 2-series is a 750 horsepower 12-cylinder, air-cooled, diesel engine used in the M88A1 Recovery Vehicle and Bridging vehicle applications. The oil pan is unique to the 12-cylinder AVDS-1790 2-SERIES engine architecture and lubrication circuitry, which makes it a highly specialized component. L3 Technologies Inc. and LOC Performance Inc. has developed, tested and obtained U.S. government approval for this item for use in the M88A1 and Bridging vehicle systems.

In addition, the approved sources’ item has met the NATO requirement for successful completion of NATO Laboratory Test for Gas Turbine and Diesel Engines AEP-5, Allied Engineering Publication while operating on an AVDS-1790 2-series 12-cylinder air-cooled diesel engine. This test is required for components which are critical for engine and vehicle operation. If another possible source of supply for this item were identified, qualification testing would be required.

A complete TDP of the Oil Pan has not been developed for competitive use. There are currently no plans to acquire a competitive TDP due to lack of funds that would be needed to acquire the data in order to support a competitive acquisition. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. The estimated cost to develop a competitive package for this item through reverse engineering could run as high as $750K and could require an estimated delay of at least 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 it would take to qualify another source. Vehicle level qualification and durability testing would be required to prove out this item if manufactured by a new source at an estimated cost of an additional $3.5M and a delay of 24 months.

The Government would not be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. It is estimated that 10% savings could be achieved by adding another supplier. At the current average usage rate of 40 units per year, at the current unit cost, and assuming the 10% saving achieved through competition, the annual savings would take about 171 years to offset the estimated $4.3M cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

(a) Effective Competition: 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, there is no complete TDP available to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements.

This item appears on the Advance Procurement Planning List (APPL) dated 15 February 2019 but does not appear on Competition Advocate Shopping List (CASL) dated 15 February 2019.

The APPL contains TACOM-Warren’s projected buy list of sole source items for the next three years. It is updated and advertised twice a year in the FedBizOpps and is available to interested contractors on the TACOM-Warren Business Opportunities website under the Future and Potential Buys link. Contractors interested in becoming a source for this item need to meet the requirements of the Source Approval Program. This is done at the contractor’s expense, to include vehicle level qualification testing. 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, no other sources have approached this office with questions or comments on how to become a qualified source to produce this item.

8. Market Research: Market research was performed by GVSC Sustainment Engineering on 21 August 2019 by reviewing vendor catalogs and available product literature published by Milodon Inc. and Spectra Premium Inc. to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs.

While these two sources manufacture oil pans for multiple applications they are merely sump-type solutions and will not have the necessary oil passage circuitry needed to for the AVDS-1790 application. They are also not of the necessary physical size and thickness needed for the AVDS- 1790 application. Further, since neither of these sources have produced this specific item for the M88A1and Bridging platforms they have not completed the necessary testing to become a qualified source as described in section 5.

Sources Sought Synopsis has been submitted to Fed Biz Opps on 21 August 2019 Component: Oil Pan & Cover Assembly

12. 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.

Name:

Title: Item Manager Signature:

Date: 9 Sep 2019

Name:

Title: Director, CM&R PSID Signature:

Date: 15 September 2019

13. Fair and Reasonable Cost 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 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. Other than Cost and Pricing Data will be used to justify price reasonableness.

Name: Eric Tucker Title: Contracting Officer Signature: //EET//

Date: 9/30/2019

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

Name: Eric Tucker Title: Contracting Officer Signature: //EET//

Date: 9/30/2019

15. Legal Concurrence:

Concur: