JA_SPRDL1-25-R-0011-Redacted_Redacted.pdf
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- Redacted Justification & Approval (J&A)
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- SPRDL1-25-R-0011
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This is a Justification and Approval (J&A) document for a non-competitive sole-source contract with Caterpillar Inc. The Defense Logistics Agency (DLA) Land Warren seeks to award a firm-fixed-price contract for diesel engine assemblies (NSN 2815-01-578-3605, part number 501-9544) used on the Medium Dozer (D7R). The procurement involves a one-time buy of 318 units for a total estimated value that is redacted. The acquisition method is for acquiring directly from the actual manufacturer (Code 3), with an Acquisition Method Suffix Code of "R" because the Government does not own proprietary technical data rights needed for competitive re-procurement.
The J&A justifies sole-source award based on the Government's lack of rights to the Technical Data Package (TDP) developed by Caterpillar, the original equipment manufacturer. The document details substantial costs and risks associated with alternative approaches, including reverse engineering efforts estimated at millions of dollars and requiring multiple months to complete, as well as high integration costs and schedule delays if a new contractor were qualified. Market research was conducted through a Sources Sought Notice posted to SAM.gov on October 4, 2024, which yielded two vendor inquiries (BHPE LLC and Choate Engineering Performance LLC) both deemed unacceptable, and searches of manufacturer websites (Cummins, Kubota, John Deere) revealed no alternative sources. Previous procurement history shows Caterpillar has been the sole source for this item through multiple delivery orders under a requirements contract. The approval authority signature indicates this is for acquisitions between $15 million and $100 million, with approval granted by the Competition Advocate.
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SPRDL1-25-R-0011 (JA-00944)
Previous J&A: SPRDL1-23-R-0120 qualified source to produce this item.
8. Market Research: A Sources Sought Notice was posted to SAM.gov on 4 October 2024 and was open for 17 days. Responses were received from two contractors, with the assessment of their responses provided below.
BHPE LLC (CAGE 9SWS7) and Choate Engineering Performance LLC (CAGE 9VLZ8) responded on 4 October 2024 expressing interest in becoming a source for this requirement. The contract specialist informed both BHPE LLC and Choate Engineering Performance LLC that they could contact the CMO to apply to become an additional source through the Source Approval Program (SAP). The contract specialist provided the point of contact for the SAP to the vendors.
Market research was performed by the Ground Vehicle System Center Combat Engineer-Material Handling Equipment (GVSC CE/MHE) engineer on 20 September 2024 by reviewing the below three engine manufacturer websites and catalogs. Part number 501-9544 and NSN 2815-01-578-3605 were used as key word terms in the search field for all the below websites and catalogs:
1. Cummins Inc. – A search on https://www.cummins.com using the above part number and NSN yielded no results.
2. Kubota Engines – A search on https://www.kubotaengine.com using the above part number and NSN yielded no results.
3. John Deere – A search on the John Deere website, https://www.partscatalog.deere.com using the above part number and NSN yielded no results.
The research revealed no new sources that manufacture a product that can be used as a replacement for the Medium Dozer diesel engine assembly.
The GVSC CE/MHE Team System Engineer also completed an additional search using the Google search engine with the part number and NSN which yielded no additional sources for the Medium Dozer diesel engine assembly.
9. Interested Sources: The Government received two vendor inquiries in response to the Sources Sought Notice posted on SAM.gov and both were determined unacceptable for this procurement. See the Market Research in Section 8 for the vendor inquiry details.
10. Other Facts: Procurement History:
File details come from the government source that posted it. Updated .