JA_SPRDL1-24-R-0146_Redacted (1).pdf
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- Redacted Justification and Approval (J&A)
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- SPRDL1-24-R-0146
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This is a Justification and Approval (J&A) document for a sole-source contract award for rotary pumps to the Defense Logistics Agency – Land Warren (DLA-WRN).
The contracting agency proposes to award a firm-fixed-price contract to Crane Pumps & Systems PFT Corp (CAGE 96046) for National Stock Number (NSN) 4320-01-706-5673, Pump, Rotary, using Army Working Capital Funds. The contract covers a base quantity of 178 units per delivery with an option quantity of 178 units (356 units total), with a maximum contract value that is redacted. The acquisition method code is 3 (acquire for second or subsequent time directly from actual manufacturer), and the acquisition method suffix code is B (acquisition restricted to source-specified drawings/documents). The justification cites 10 U.S.C. § 3204(a)(1) as statutory authority, establishing that only one responsible source and no other supplies or services will satisfy agency requirements. Crane Pumps & Systems PFT Corp is identified as the sole qualified manufacturer of the Bilge Pump (part number 12581994-2) due to their exclusive design, development, and successful testing to meet Armored Multi-Purpose Vehicle (AMPV) requirements, including unique specifications such as gunfire shock withstanding capability. The Government determined that reverse engineering to create a competitive Technical Data Package would cost approximately $6.263 million, with a payback period exceeding the contract's anticipated savings even assuming 25 percent cost reductions through future competition. Market research via a Sources Sought Notice posted February 12, 2025 (open 15 days) yielded no responses, and internet searches identified only commercial marine bilge pumps unsuitable for military applications. The estimated basic contract value is redacted, with an option percent of 100 percent. The contracting officer (Robert W. Harrison, CIV DLA LAND AND MARITIME) certified the item as commercial and determined fair and reasonable pricing based on detailed cost/price analysis without requiring certified cost or pricing data. The Competition Advocate approved the procurement on the basis that substantial duplication of Government costs would result from awarding to any other source.
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SPRDL 1-24-R-0146 (JA-00864)
No prior J&A's available
Due to the lack of a drop-in replacement and limited technical data available for the Bilge Pump, reverse engineering is the only recourse for the Government to increase competition through development of a competitive build-to-print Technical Data Package (TOP). A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, release the design, and develop a competitive TOP. To complete the reverse engineering process successfully, produce the final TOP. Leveraging data from previous reverse engineering study for the Bilge Pump performed by Ground Vehicle Systems Center (GVSC) as the basis for the cost estimate, it was determined that the reverse engineering cost would include the following:
In addition, there is always the potential for and further increase costs beyond the reverse engineering estimate. These additional costs would be very difficult to recoup through subsequent competition. Furthermore, even if the reverse-engineering effort were to be successful, the Government would still incur excessive costs and
The Government would not be expected to recover, in a reasonable amount of time, through subsequent competition, the duplication of costs involved in reverse engineering the Bilge Pump and creating a new competitive TOP. With an
, average unit price of , and assuming 25% savings achieved through competition, the in potential annual savings would take nearly to offset the estimated $6.263M cost to reverse engineer the item and qualify a new source.
Calculation:
Payback = Cost to Reverse Engineer/ Estimated Annual Savings
= Cost to Reverse Engineer/ (AMO* 12 months* unit price* 25% savings) = I ( )
File details come from the government source that posted it. Updated .