JA_SPRDL1-25-R-0217_Redacted.pdf

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Redacted Justification & Approval (J&A)
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SPRDL1-25-R-0217
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This is a Justification and Approval (J&A) document for a sole-source contract award.

The Defense Logistics Agency – Land Warren (DLA-WRN) seeks to award a firm-fixed-price contract to Renk America LLC (CAGE 02978) for Aftercooler Bypass Valve Body Assemblies used on M88 FOV vehicles. The contract covers two National Stock Numbers: NSN 4810014344019 (Left Body, Valve) and NSN 4810014344020 (Right Body, Valve), with a minimum guaranteed quantity of 226 units (104 left bodies and 122 right bodies) and a maximum quantity of 452 units (208 left bodies and 244 right bodies). The total maximum contract value is redacted but represents a firm-fixed-price arrangement. The valve bodies are critical components of the AVDS Series 2 engine's automatic transmission system, controlling fluid flow and enabling gear changes.

The justification cites 10 U.S.C. § 3204(a)(1) as statutory authority for other than full and open competition, asserting that only Renk America possesses the requisite intellectual property data rights, technical capability, and NATO Laboratory Test certification (MIL-DTL-62177) necessary to manufacture compliant valve bodies. The Government lacks rights to the Technical Data Package and specifications, and reverse engineering would require an estimated $5.2 million investment over multiple months while current stock levels are insufficient to support operational demand. Market research conducted in June 2025 confirmed no alternative sources—including Cummins Inc. and Caterpillar Inc.—have completed the necessary qualification testing. A Sources Sought Notice posted on SAM.gov on 24 June 2025 for 16 days received only one response from Howell Laboratories Inc., which demonstrated no qualified capability. Prior procurement history shows a competitive award to EOS Inc. (Renk distributor) in September 2020 for $249,600 and a non-competitive award to General Dynamics Land Systems in January 2005 for $64,210.56.

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JA-01102 - SPRDL1-25-R-0217

Previous J&A: Not Available

Current stock on hand estimates for these items are with the Average Monthly Demand (AMD) being per month for the Left Valve Body, and per month for the Right Valve Body. Because the stock-on-hand is , pursuing a reverse engineering project would result in an accumulation of backorders, line-stoppage at the depot assembly level for the AVDSs, and non-mission capable vehicles.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in Section 5, the Government is limiting the competition to the sources cited in Section 2 above. Notices required by FAR 5.201 will be posted.

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 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.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 24 June , and was open for 16 days. One response was received.

In accordance with the tenets set forth in FAR 10.002(b)(2)(vii), market research was performed by the Ground Vehicle Systems Center (GVSC), Heavy Combat Vehicle (HCV), Sustainment Engineering on 6 June 2025 by reviewing available product literature published by Cummins Inc and Caterpillar 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 have the ability to manufacture Valve Body assemblies, they currently manufacture Aftercooler Bypass Valve Body Assemblies for specific applications which are already existing and would be required to manufacture AVDS Aftercooler Bypass Valve Body Assemblies from scratch once the technical data was fully developed.

Since neither of these sources have produced this specific item, they have not completed the necessary testing to become a qualified source. Renk America, LLC.

(CAGE 02978) is currently the only source that provides the Aftercooler Bypass Valve Body Assemblies for the AVDS engine that are approved to support the Government requirement.

JA-01102 - SPRDL1-25-R-0217

Previous J&A: Not Available

DEVCOM Engineering completed web-based market research on 6 June 2025, searching for companies that manufacture heavy duty diesel engines.

Keyword: Aftercooler bypass 12-cylinder diesel Website: https://parts.cummins.com/esn-entry/main/part details/3001299/parts-search Findings: No solutions found specific to the correct Valve Body architecture needed to accommodate the AVDS-1790 engine components.

Website: https://parts.cat.com/en/catcorp/search?q=aftercooler&page=1 Findings: No solutions found specific to the correct Valve Body architecture needed to accommodate the AVDS-1790 engine components.

9. Interested Sources: To date additional sources have expressed interest in this item as listed above in Section 8.

A sources sought was posted on 24 Jun 2025 and was open for 16 days. One inquiry was received from Howell Laboratories Inc. The responding vendor did not show the ability or present any supporting documents to prove they can be a qualified source.

10. Other Facts: Procurement History:

Contract Number: SPRDL1-20-P-0179 Award Date: 01 Sep 2020 Contractor: EOS Inc (Authorized distributor of RENK AMERICA LLC) Contract Value: $249,600 Competitive Status: Competitive

Contract Number: W56HZV-05-P-0230 Award Date: 07 JAN 2005 Contractor: GENERAL DYNAMICS LAND SYSTEMS Contract Value: $64,210.56 Competitive Status: Not Competed

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