JA_SPRDL120R0010_Redacted.pdf

J&A SPRDL1-20-R-0010

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0010

1. Contracting Agency: Defense Logistics Agency Land Warren (DLA-WRN)

2. Description of Action: The proposed contract action is to award a new firm-fixed price contract for the M915A5 Engine Control Module (NSN: 5998-01-610-7612). The sole source of the part is Daimler Trucks North America (CAGE: 64678), PN: DDE 23539205. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The contractor Daimler Trucks North America (CAGE: 64678) shall provide the M915A5 Engine Control Module (NSN: 5998-01-610- 7612). The minimum guaranteed value of the contract is for 53 units. The maximum value of this contract is for a total of 106 units with all options exercised.

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

AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.\

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the technical data for the highly detailed M915A5 Engine Control Module (NSN:

5998-01-610-7612), which is a programmed electronic component that the vendors owns the technical data for. Therefore, this company is the owner of the intellectual property and retain full-rights-in-data for the detailed technical data.

The Ground Vehicle Systems Center Sustainment Team has estimated that reverse Engineering the M915A5 Engine Control Module would cost an estimated minimum of $600,000.00 with a lead time of 12 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing on a vehicle would have an additional lead time of 6 months and cost an additional estimated minimum of $500,000.00. Engineering’s contention is that a mechanism to recover their investment shall be demonstrated by the Government before they will consider it.

In total, reverse engineering and qualification testing to include material test, form, fit, and function test, performance test, and durability testing would require at least eighteen (18) months and an estimated minimum of $1.1M. This expense could not be recouped through subsequent competition. The efforts involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the Army’s mission in a potentially adverse operational environment. Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TDP or qualification testing for a new source.

Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition: This action is limited to Daimler Trucks North America (CAGE: 64678), the owner of the intellectual property and manufacturer of this item. No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

7. Actions to Increase Competition:

There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a full-defined and validated technical data package for this item. The source of supply, Daimler Trucks North America (CAGE: 64678), owns the detailed technical data regarding this item. Any vendor that believes they can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source will be at their own expense.

A Sources Sought has been submitted for this item, and to date, there has been no interest by other manufacturers:

Item Name: Engine Control Module

NSN: 5998-01-610-7612

Part No: DDE23539205 Quantity: 53 MIN/ 106 MAX End Item: M915A5 Line Haul Tractor

FedBizOpps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=10e9e12db6f5e9c74061fed9 55f7e88d&tab=core&_cview=0

8. Market Research:

The government has no funding to qualify additional sources, and thus any qualification would be done at contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office. Given that no detailed technical data is available for the M915A5 Engine Control Module (NSN:

5998-01-610-7612), market research results are very limited.

Computer-based/internet market research was conducted by the Project Engineer during September 2019. The information found during market research revealed there are no commercially available items that exist for this critical application. The engine control module is a piece of hardware that must be programmed for multiple applications. The specific programming needed for the M915A5 application is not a Commercial-Off-the- Shelf configuration, and cannot be purchased competitively. In order to ensure readiness of the M915A5 fleet, it is recommended the part be purchased from the sole source vendor.

9. Interested Sources: To date, no other sources have expressed an interest in providing the subject item. Only the approved sources own the most current TDP part iteration (revision level). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

10. Other Facts:

a. Procurement History:

1. SPRDL1-17-P-0460

Awarded To: PENN Detroit Diesel Allison, LLC (CAGE: 62862) Item: Electronic Component

NSN: 5998-01-610-7612

Awarded on 01 AUG 2017 Contract value: $148,974.10

2. SPRDL1-15-P-0067

Awarded To: Badger Truck Center, Inc. (CAGE: 06YZ5)

Item: Electronic Component

NSN: 5998-01-610-7612

Awarded on 08 JAN 2015 Contract value: $14,176.00

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the M915A5 Engine Control Module (NSN: 5998-01-610- 7612).

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: N/A

11. Technical Certification: I hereby 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] $250K to $700K Team Leader

POC: Email:

Supervisor Name: Date: 9/4/2019 Title: HTV Sustainment Team Lead Signature:

12. Requirement 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.

Name: Date: 9/25/2019 Title: Item Manager Signature:

Name: Date: 9/26/2019 Title: Team Leader 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.

This determination will be based on the results of a price analysis and/or market research. No certified cost or pricing data is required per FAR 15.403-1(b)(1).

Name: Leah Bourdeau Date: 11/13/19 Title: Contracting Officer 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 Date: 11/13/19 Title: Contracting Officer Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date : 11/19/2019