JA_SPRDL119R0056_Redacted.pdf

Previous J&A available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-19-R-0056

1. Contracting Activity: Defense Logistics Agency Land - Warren.

2. Description of Action: This proposed contract action is to award a firm fixed price five year long term contract to obtain new Fuel Injection Pump, (NSN 2910-01- 641-0007) for use on the High Mobility Multipurpose Vehicle (HMMWV) equipped with post-1990 6.2 Liter Engines. Competition will be limited to Stanadyne Corporation (CAGE: 84760, P/N DB2829-6286 ). This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The contractor shall provide the fuel injection pumps per the part number listed in Table 1. The fuel pump is a critical part for the applicable HMMWV models. The minimum guaranteed quantity of this long term contract is 99 each and the maximum quantity is 4,455 each. The estimated unit price is . The estimated minimum value of the contract is and the maximum value is .

Table 1 part numbers NSN NOMENCLATURE P/N Quantity AMC/AMSC

2910-01-641-0007 PUMP,FUEL,METERING

AND DISTRIBUTING

DB2829-6286 99 Min;

4455 Max 3/D

AMC 3: Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

Source of supply:

STANADYNE CORPORATION

DBA STANADYNE DIESEL SYSTEMS DIV DIESEL SYSTEMS

92 DEERFIELD RD

WINDSOR, CT 06095-4200

Cage: 84760 Manufacturer Part Number: DB2829-6286

NSN 2910-01-641-0007 is for the Fuel Injection Pump (FIP) used on the 6.2L engine in the HMMWV Family of Vehicles (FoV). The pump, as its name infers is the mechanical device that delivers the fuel from the fuel tank to the engine of the HMMWV. With fuel, the engine is then able to provide the power necessary for the HMMWV to complete the mission. This FIP is specific to the engine and power train configuration of the 1990 and above variants and cannot be used on the de-tuned (Basic and A1) or the forced induction (ECV) engines due to changes in the power generation and fuel delivery requirements that are specific to each engine configuration. The FIP was originally tested and developed by Stanadyne 30 years ago as part of the original HMMWV development and source selection process. The current Stanadyne FIP to be purchased is a product improvement of previously purchased versions which features a steel pump body designed to improve the FIP service life

The Government does not own the necessary rights to the technical information of the FIP to enable competitive procurement. The Government did not pay Stanadyne for the development of the FIP either. The Fuel Injection Pump was developed by Stanadyne without Government funding. AM General is the originator and designer of the HMMWV but Stanadyne is the owner of the drawing and technical data rights for the HMMWV Fuel Injection Pump. No other vendor is qualified to provide this item to the Government. Stanadyne has demonstrated the capability to provide this item to the Government based on past performance. Other suppliers may sell this item to the Government as long as they certify that the part they are providing is the correct part number described in this document.

Finally, this particular contract action is to supply the Fuel Injection Pump for use during general maintenance of the HMMWV as instructed in the HMMWV Technical Manual publications 9-2320-280-24P, as well as the 280 IETM. Rebuild sites are also authorized to rebuild this item by following the published National Maintenance Work Requirement (NMWR 9-2910-310) published on 30-April-2012. Both levels of repair keep new replacement costs down by reusing parts where ever possible. However, given the age of some of these parts, full replacement is sometimes required. The minimum monthly demand for the Fuel Injection Pump (FIP) is calculated to be 51 each.

The maximum estimated total contract quantity is calculated to be 4,455 each. The estimated unit price for the Fuel Injection Pump is per unit. Army Working Capital Funds estimated at will be used for this action.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-responsible source and no other supplies

5. Reason for Authority Cited:

a. Background: As stated under paragraph 3 above, the Government purchases the Fuel Injection Pump from Stanadyne or any vendor selling the correct part from Stanadyne for the 6.2L HMMWV engines. This item was designed and developed by Stanadyne for the Detroit Diesel 6.2L engine used in the HMMWV. In order to speed up the development and procurement process of the original HMMWV, the Government agreed to allow AM General to use the Stanadyne Fuel Injection Pump and did not obtain the technical data rights. AM General LLC integrated this item into the HMMWV during development of the vehicle platform back in the early Original Equipment Manufacturer (OEM) of the HMMWV while Stanadyne is the OEM of the Fuel Injection Pump that is mounted to the vehicle.

b. Costs: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN 2910-01-641-0007 fully competitive.

Consequently there are no current plans to acquire a fully competitive TDP, because funds are not available to acquire the data necessary. Technically, there are three choices for the Government to pursue and obtain the data to this item. The three choices are: Research and Development of our own Fuel Injection Pump design, Reverse Engineering if we are unable to procure the item, and the final option is to simply ask the vendor, in this case Stanadyne, for a price to purchase the Technical Data and rights to use the item competitively. This office has tried to obtain pricing for the HMMWV TDP back in 2010 during a contract re-bid with AM General. The Government asked for costing on the Armor, HVAC system and all Rev B components was that this item is not for sale. This leaves the Government with 2 remaining options to acquire the data. They are as follows:

(i) Research and Development (R&D): To develop a competitive data package through a Research and Development (R&D) effort, procuring proprietary data for research and qualifying additional sources will entail a significant amount of time, facility resources, man-hours, and funding. Based on past experience with similar efforts the estimated cost to research and develop a compatible product and qualify additional sources exceeds $5.0M with a setback of forty-two (42) months. Required funding would include $3.5M for personnel to support research, and redevelopment of an item that would perform the same task as this NSN. That $3.5M would also include funding for staff to develop the CAD models and drawings that would be required for any potential vendor to manufacture from. Add in another $1.5M-$2.0M to develop prototypes to test and validate the Government design that functions identically to the original. If funding for a new start research and development effort became available, the forty-two (42) month process would consist of the following: 12 months to develop requirements, 6 to 12 months in design and prototyping, 12 months to test compatibility and function, and an additional 12 months to write the technical data package and provision the parts. A timeline of the estimated R&D process is shown for clarity.

LTV Engineering estimates the following timeline for R&D:

Requirements development 12 Months Design and prototype development 6 Months Component, safety and system level testing 12 Months

Write TDP, technical bulletins and provision parts 12 Months

Estimated Time to research and develop 42 Months

(ii) Reverse Engineering (RE): To reverse engineer, validate the design, procure prototypes for testing and release a competitive data package would entail a significant amount of time, facility resources, man-hours, and funding. Based on past development experience the estimated cost to develop a reverse engineered competitive product is $4.0M, with an estimated delay of no less than thirty-six (36) months. Required funding would include $3.0M for personnel to support reverse engineering and validation of the design as well as fund staff to develop the CAD models and drawings. Add another $1.0M to develop prototypes, test and finalize the product to verify that the newly created item provides equivalent performance when compared against the original. If funding for reverse engineering became available, the thirty-six (36) month process would consist of the following: 3 months to obtain existing parts, 3 months to tear down and understand the design, 6 months to iteratively develop drawings, prototypes and bench test, 12 months to perform system and vehicle level testing, and 12 months to write the technical data package and provision the parts. To complete the reverse engineering process successfully, the Government would have to obtain a sufficient sample size of existing parts to provide a 95% probability and 90% confidence level in the actual size of the existing item to be studied. Once a large enough sample has been collected, the Government would then tear down and understand the design, conduct prototype development and produce the final TDP and associated provisioning documents at a cost of $4.0M. A timeline of the estimated R&D process is shown for clarity.

LTV Engineering estimates the following timeline for RE:

Obtain existing parts 3 Months Tear down and understand the design 3 Months Prototype development 6 Months Component, safety and system level testing 12 Months Write TDP, technical bulletins and provision parts 12 Months

Estimated Time to Reverse Engineer 36 months

In addition to the cost and delay for an R&D action or RE effort, Pd-LTV estimates that it would take approximately one additional year to establish another source and procure these kits on a competitive basis. Specific events would include additional market research, solicitation, evaluation and awarding a contract. Finally, any new source of supply would require component, safety and system level testing that is estimated to take 6 months. These estimates are based on similar Government projects. These events combined are estimated to take an additional 12 months after development of the item.

Considering this vehicle configuration is out of production and future vehicle demand is unknown, the costs cited above appear to exceed any potential savings to be realized through a future competitive procurement process. Assuming that we spend 4M dollars to obtain our own version of the item and realize a savings of , the new cost of the Government owned Fuel Injection Pump would be per unit. That is a savings of between the Stanadyne Owned and the Government Owned versions.

Dividing by results in a quantity of Fuel Injection Pumps required to recover the cost of generating a competitive TDP. The current demand rate for Fuel Injection Pumps is per year, thus the pumps that would need to be purchased to recoup the investment represents a year supply which exceeds the expected life of the vehicle system.

c. Unacceptable Delay: If the procurement of the HMMWV Fuel Injection Pump is delayed until the TDP is bought by the Government and made suitable for a competitive procurement the Government would experience an unacceptable delay of a minimum of two and one half years in fulfilling this requirement. The two and one half year delay is a result of the time required to develop items of equivalent performance explained previously in this document and validate both functionality and safety of the new item.

Further delay in providing this NSN will negatively impact our force readiness and capability to actively support U.S./National Guard efforts, as without the Fuel Injection Pump the HMMWV would be unable to perform any of its missions. Stanadyne is the only source that can meet the requirements without substantial duplication of cost and without unacceptable delay against this action. The approved source has the requisite technical and engineering expertise to perform all efforts required to provide the NSN identified in this Justification and Approval (J&A). The contractor developed the items identified without assistance from the Government. Furthermore, if a project to make this item competitive was rushed through the procurement without proper testing and validation, there would be an increased risk of a premature failure of this item in the field which could result in an extensive loss of the equipment through destroyed engines.

6. Efforts to Obtain Competition: There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office (CMO). To date, there has not been any expressed interest by any other known vendors to become qualified to produce this item.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN:

2910-01-641-0007 fully competitive. The time and money costs would not be recouped through competition, due to the complexity of the design and the time it would take to produce the Fuel Injection Pump to the quantities that are needed would cause

A Sources Sought Synopsis was posted to FedBizOpps on 10/26/2018 to date, no other sources have expressed interest in providing this item.

Item Name: Pump, Fuel, Metering and Distributing

NSN: 2910-01-641-0007

Part Number: DB2829-6286 End Item: HMMWV

2019-060.pdf https://www.fbo.gov/index?s=opportunity&mode=form&id=2308661784987b018446b05 89d9d7d52&tab=core& cview=0

8. Market Research: It was determined that commercial or non-developmental items are not available to meet the Govern Fuel Injection Pump listed in Table-1. The Project Engineer reviewed results of past market research that was conducted to meet similar or identical requirements and no additional sources exist.

Additionally, the Project Engineer conducted a thorough search of available on-line sources in the preparation of this document and there were no additional sources that requirement.

Interested sources will be referred to the Source Approval Program thorough the

9. Interested Sources: To date, no other sources have expressed an interest in providing the items listed in Table-1. However, offerors are always encouraged to seek

The notices required by FAR 5.201 will be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement History:

Contract Qty Unit Price Cage/Contractor

SPRDL115D0057/0004/0013AA 383 EA 871.65 3L018/ SOUTHEAST POWER

11/09/2017

SPRDL115D0057/0003/0012AA 202 EA 846.39 3L018/ SOUTHEAST POWER

05/25/2017

SPRDL115D0057/0002/0012AA 199 EA 841.36 3L018/ SOUTHEAST POWER

10/18/2016

SPRDL115D0057/0001/0011AA 509 EA 824.06 3L018/ SOUTHEAST POWER

07/08/2015

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Fuel Injection Pump used on HMMWV Models.

c. Unusual and Compelling Urgency: N/A

d. Subcontracting Competition: N/A

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

[X] $700K to $13.5M Product Director LTV

Name:

Title:

Date: 31 October, 2018 Signature:

Name:

Title:

Date:

Signature:

12. Requirement Certification: I certify that the supporting data under cognizance which are included in the justification are accurate and complete to the best of knowledge and belief.

Name:

Title:

Date: 20NOV2018 Signature:

Name:

Title:

Date: 20 Nov 18 Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary.

Name: Leah Bourdeau Title: Contracting Officer Date: 7 Dec 2018 Signature: //s// LCB

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Leah Bourdeau Title: Contracting Officer Date: 7 Dec 2018 Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date: 12/18/2018