JA_SPRDL1-24-R-0087_Redacted.pdf

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Redacted Justification and Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-24-R-0087
Issued by
Defense Logistics Agency Land and Maritime

About this file

This is a Justification and Approval (J&A) document for other than full and open competition from the Defense Logistics Agency - Land Warren (DLA-WRN) for the procurement of hydraulic motor heads. DLA-WRN proposes to award a firm-fixed-price contract to AMBAC International Corporation for 77 hydraulic motor heads (NSN 4320-00-722-3536) with an option for an additional 77 units, for use in the AVDS-1790-2-Series Engine on the M88A1 Recovery Vehicle and Bridging chassis. The unit cost is $4,122.81 for a total of 154 units.

AMBAC International is cited as the sole manufacturer historically qualified to produce these components. The government lacks technical data rights and specifications to enable competitive procurement. Market research included a Sources Sought Notice posted on SAM.gov in March 2024 which received three responses (Denamita, E.O.S., and AMBAC/Jasper Steward LLC). The estimated cost to develop competitive technical data through reverse engineering would be approximately $2.76M plus an additional $1.5M for qualification testing. Previous contract awards include SPRDL1-22-C-0064 to AMBAC International ($460,230.00), SPRDL1-18-C-0248 to Ex-Part, Incorporated ($1,446,510.00), and SPRDL1-16-C-0067 to SIT Corporation ($166,920.00).

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SPRDL1-24-R-0087 (JA-00795)

Previous J&A available SPRDL1-21-R-0070 fuel delivered into the combustion system of the Air Cooled, V-engine configuration, Diesel, Super turbocharged (AVDS)-1790-2 series engines. The hydraulic head assembly provides a critical function by delivering the correct fuel amount at proper timing in relation to the engine firing cycle. AMBAC International has been the sole manufacture of the component historically and has met all qualification requirements for the M88A1and Bridging chassis.

The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement. The Government does not have rights to the Technical Data Package (TDP) or specifications.

The hydraulic head assembly is a critical component of the AVDS-1790-2 series fuel delivery system which operates in a unique military weapons system. The performance of the hydraulic head assembly is specialized to provide sufficient fuel, at high pressure, to the AVDS-1790-2 series 12-cylinder engine. The hydraulic head assembly is part of a larger fuel metering injection pump assembly and has critical interfaces and dependence on the other sub-components, extensive engineering efforts would be required to outline not only the hydraulic head assemblies’ requirements and performance, but to establish its interfaces to the higher assembly to ensure proper timing and fuel is delivered to the engine. AMBAC International has developed, tested, and obtained U.S. Government approval for this item for use in the M88A1 vehicle system. If another possible source of supply for this item were identified, qualification testing would be required.

To make the hydraulic head assembly competitive the Government will need to initiate a reverse engineering effort, which would require significant duplication of cost. The estimated cost to develop a competitive TDP for this item through reverse engineering could run as high as $2.76M, which includes fabrication and testing of the prototype hardware and releasing a validated TDP. In addition, there would be added costs 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 $1.5M. The total estimated duplication of cost including all the tasks to reverse engineer and test a new item would be approximately $ and a delay of

A total estimated cost breakdown is as follows:

Reverse Engineering Effort:

Development of TDP:

Obtain sample set of new hydraulic head assemblies: $ Obtain 2 AVDS-1790-2 series engines for 400 hr. dyno testing: $ Technical data development: $ Design activity: Prototyping, Integration, Test: $ NATO 400 hr. dyno test: $ Vehicle Level Qualification:

New Design House procurement/build: $ RAM Testing of 5,000 miles: $

Total: $

The Government would not be expected to recover, through subsequent competition, the duplication of costs to qualify additional vendors to the drawings within a reasonable timeframe. At an estimated usage rate of 1 unit per year, average unit price of and assuming % savings achieved thorough competition, the in annual savings would take approximately years to offset the estimated $ cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above we are not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

As stated in section 5 above, there is no reverse engineering effort planned to support a competitive procurement. Due to the costs associated with developing a competitive TDP that cannot be recovered within a reasonable amount of time, the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 26 March 2024 and was open for 15 days. Three responses received as noted below in section 9.

(Denamita/7H8H0, E.O.S./Not currently registered in SAM, and AMBAC/DBA as Jasper Steward LLC). Denamita and E.O.S. were provided information regarding the Army Source Approval Program to become approved alternate sources of supply for this item for future procurements.

Market research was performed by Ground Vehicle Systems Center (GVSC) Sustainment Engineering on 26 March 2024 by web search. Search criteria included hydraulic fuel metering pumps and hydraulic fuel plunger pumps. Many systems exist that meter fluids with hydraulic pressure and some timing mechanisms, however none returned would conform or met the tailored fit, form and function of the source-controlled assembly used on the M88 FOVs.

Keyword: hydraulic fuel metering pumps

Website: https://www.psgdover.com/neptune/products/pumps/hydraulic-diaphragm-pumps Findings: Neptune offers numerous hydraulic metering pumps for sale. The pumps work under the same principles as the current unit, but the specific space claim, interfaces, timing, and requirements would all need extensive redesign to work with the existing M88FOV system.

Keyword: hydraulic fuel plunger pumps Website: https://jaecofs.com/metering-pumps/plunger-pumps/ Findings: Jaeco Fluid Systems, Inc. offers numerous hydraulic metering pumps for sale. They also offer various options, accessories, and customization to the units. The pumps work under the same principles as the current unit, but the specific space claim, interfaces, timing, and requirements would all need extensive redesign to work with the existing M88 FOV system.

Contacted the contractor to request consideration for the U.S. Government to purchase the intellectual property, on March 25, 2024, AMBAC responded stating that they are not interested in selling the technical data package (response in file).

9. Interested Sources: To date only three sources have expressed interest in this item, they are: Denamita (7H8H0), E.O.S. (Not currently registered in SAM), and AMBAC (DBA as Jasper Steward LLC).

10. Other Facts: Procurement History:

SPRDL1-22-C-0064 awarded on September 13, 2022 to AMBAC International in the amount of $460,230.00, based on FAR 6.301-2, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

SPRDL1-18-C-0248 awarded on May 01, 2018 to Ex-Part, Incorporated, in the amount of $1,446,510.00, based on. FAR 6.301-2, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

SPRDL1-16-C-0067 awarded on December 04, 2015 to SIT Corporation, in the amount of $166,920.00, based on FAR 6.301-2, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

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

Name:

Title: Engineering Branch Chief Email: @Army.mil

File details come from the government source that posted it. Updated .