JA SPRDL118R0607Redacted.pdf

J&A SPRDL1-18-R-0607

Previous J&A SPRDL1-17-R-0085 is available and attached or embedded in document 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 AVDS-1790 2-SERIES Engine is the heart of the M88A1 Recovery Vehicle Platform and M60 Bridging Platform and makes mobility and recovery operations possible. The cylinder head assemblies are an integral part of the AVDS-1790 2-series engine. The M88A1 is a recovery vehicle whose primary role is to extricate combat/tactical vehicles that have been damaged, stuck, overturned, or inoperable, as well as the vehicles crew.

Recovery missions can take place during training exercises or while under fire in a combat zone.

The M88A1’s secondary role is to aide in the repair or replacement of damaged parts during maintenance operations. It is commonly used to remove/install engines and/or transmissions for the Abrams Family of Vehicles (FOV), Bradley FOV, other M88 FOV and M113 Armored Personnel Carrier. Soldiers would not be able to perform the maintenance required on the aforementioned without the hoisting capabilities of the M88A1. Note, the M88A1’s AVDS-1790 engine variant differs from the M88A2 by 200 hp. (850 hp. vs. 1050 hp.).

The approved sources have proven the ability to manufacture the cylinder assemblies that can meet the NATO requirement for successful completion of NATO Laboratory Test for Gas Turbine Engines AEP-5, Allied Engineering Publication while operating on an AVDS-1790 2-series diesel engine. This NATO test is required for components which are critical for engine/vehicle operation and crew safety. Malfunction of the AVDS-1790 2-SERIES Engine due to poorly manufactured cylinder head assemblies could result in significant loss of equipment and life due to the vehicle’s inability to start and move the crew to safety. The aforementioned sources have proven over the course of time that they possess the manufacturing capability needed to correctly cast and perform the final machining in order to deliver cylinder assemblies of sufficient quality in support of the AVDS-1790 2-series engine. If another possible source of supply for this item were identified, qualification testing would be required.

A complete Technical Data Package (TDP) of the Cylinder Assembly, Engine has not been developed for competitive use. There are no build to print drawings available for the cylinder head assemblies and the manufacturing knowledge is proprietary to the qualified sources. There are currently no plans to acquire a competitive build to print TDP due to the lack of funding that would be needed to acquire the data in order to support an unlimited competitive acquisition. A prohibitive amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. As verified through TARDEC GVPM office, the estimated cost to develop a competitive package for this item through reverse engineering could run as high as $2.5M and could require an estimated delay of at least 12 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 $1.3M and a delay of 19 months.

The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the item to create a new, fully competitive engine package.

It is estimated that % savings could be achieved by adding another supplier. At the current average usage rate of 143 units per year to support rebuilds, a current unit cost of $ , and assuming the % saving achieved through competition, the $ in annual savings would take over years to offset the estimated $ cost of reverse engineering the item and qualifying another source. Note that based on current status from ILSC, a deficit of cylinder assemblies is predicted by 2019 which this J&A action is meant to address. Also, the FY19 ANAD repair program is pending approval(s) in order to increase the throughput of the rebuilds which is not reflected in the FY19 predicted deficit mentioned above. The Government would not be able to support field requirements in a reasonable time frame by taking months to qualify an additional 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. There are currently two approved vendors that can compete for this effort. Additional approved vendors will result in minimal additional cost savings in comparison to the additional cost required to qualify additional sources.

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, a complete TDP and manufacturing knowledge are unavailable to support an unlimited competitive procurement. A TDP and the manufacturability details in theory could be developed, however, due to the costs associated with developing a competitive TDP and methodology that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements. The Government would not be able to recover the $3.8M to reverse engineer the Cylinder Head Assemblies within a justifiable time frame.

This item does not appear on the Advance Procurement Planning List (APPL) dated 16 January 2018 and also does not appear on Competition Advocate Shopping List (CASL) dated 16 January 2018. The CASL 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 Fed Biz Opps 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.

Specific information and point of contact for the Source Approval Program is available at https://www.tacom.army.mil/cmo/sap.html. 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 TARDEC Sustainment Engineering on 13 May 2018 by reviewing vendor catalogs and available product literature published by Brodix Manufacturing Inc. and Air Flow Research 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 cylinder heads and cylinder head assemblies that could theoretically be used as solutions in the M88 AVDS-1790 2-series diesel engine, their existing cylinder heads lack the unique individualized design which is unique to the AVDS-1790 2-series air-cooled application. Additionally, neither Brodix Manufacturing Inc. nor Air Flow Research Inc. currently manufacture an AIR-COOLED cylinder head design with the inter-cylinder camshaft bores needed for this particular application.

Finally, since neither of these sources have produced this specific item for the M88A1 they have not completed the necessary testing to become a qualified source as described in section 5. To date there is only procurement history of these cylinder assemblies being provided by L3 Technologies, Inc., CAGE 02978, and Florida Ordnance Corporation, CAGE 6R485, both of which have been confirmed as sources of this NSN.

Sources Sought Notice has been submitted to FedBizOpps on May 21, 2018 Component: Cylinder Head, Diesel Engine

NSN: 2815-00-150-7405

Part Number: 10951304 End Item: M88 Recovery Vehicle Fed Biz Opps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=8b44e3a6395c5f546c68ac75aeab94 ac&tab=core&_cview=0

Sources Sought

2815001507405-May

Market Research links: 1. http://brodix.com/ 2. http://www.airflowresearch.com/

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2018-515 was posted to Fed Biz Opps on 21 May 2018 for the Cylinder Head, Diesel Engine, NSN 2815-00-150-7405, Part Number, 10951304 as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement History: Reasonable efforts to retrieve the following items from computer records, contract files, competition advocate office files or other sources are expected:

(1) Contract numbers and dates of the last several awards:

SPRDL117D0101/0002 11 Dec 2017 FLORIDA ORDNANCE CORP SPRDL117D0101/0001 7 Aug 2017 FLORIDA ORDNANCE CORP W56HZV09D0014/0001 30 Oct 2008 FLORIDA ORDNANCE CORP W56HZV09D0013/0001 30 Oct 2008 L3 TECHNOLOGIES, INC.

DAAE0703DN083/0017 21 Jul 2008 L3 TECHNOLOGIES, INC.

(2) Competitive status of these actions: All were source controlled to Florida Ordnance Corporation and L3 Technologies, Inc.

(3) Authority previously used for less than full and open competition: 10 U.S.C.

2304(c)(1), as implemented by FAR 6.302-1, "Only One Responsible Source and no other supplies or services will satisfy requirements."

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results: The reasons the item is not suitable for full and open competition in SPRDL117R0085 was that the item drawing package (TDP) was not fully defined and source controlled. The two approved sources had developed, tested, and obtained Government approval of this item for application to the M88A2 AVDS1790-8CR engine at their cost. The Government did not fund their efforts in developing and testing this item. Additionally, the Government did not fund them to prepare a fully detailed TDP after approval. As such, L-3 Technologies and Florida Ordnance were the sole source owner(s) of the drawing package and technical data rights. In addition, the Government does not own patent rights to the data that would be required to produce a competitive TDP. The two controlled sources had not chosen to make the patent rights to the data available to the Government, which would be required to produce a competitive TDP.

Signed JA

SPRDL117R0085.DO

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances: This item has not been procured as a full and open competition in the past.

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys: There are no unusual patterns.