JA_SPRDL120R0043_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-20-R-0043

(Previous Redacted J&A SPRDL1-16-R-0023 Available)

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

Acquisition Method Suffix Code: (AMSC): B. Acquisition of this part is restricted to source(s) specified on “Source Control”, “Altered Item” or “Selected Item” drawings/documents. Valid AMCs: 1, 2, 3, 4 and 5.

4. Authority Cited: The statutory authority permitting other than full and open competition is 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."”

5. Reason for Authority Cited: The Generator is a critical component of the M109A6 charging system which operates in a unique military weapons system. The generator uses filtered oil from the engine main gallery line for cooling and is completely enclosed giving it the ability to function properly even if completely submerged in water. The performance of the generator is specialized to provide sufficient DC power output to the batteries of the M109A6 which ultimately supplies power for starting the Detroit Diesel 8V71T engine and to all of the electrically powered devices on the entire M109A6 vehicle. This allows the M109A6 to operate for long periods of time in extreme conditions and does so within the constraints of a unique space-claim.

This current generator is source controlled to HONEYWELL (CAGE: 64547). The Government does not have detailed drawings that are necessary for competitive procurement. Honeywell has developed, tested, and obtained the Government's approval for this generator (and container) for application to the M109A6 vehicle electrical system at their own costs. The Government did not fund HONEYWELL effort in development and qualification testing of this item or preparation of the fully detailed Technical Data Package (TDP) after approval. As such, HONEYWELL is the sole owner of the drawings and technical data rights; and the Government does not have proprietary rights to the TDP that would be required to produce a competitive TDP.

This item is critical to functioning of the vehicle. The cost to either reverse engineer the part or develop a new part is estimated at $3.75M; developing a TDP for this item would take 4.5 yrs.

Based on similar projects, the costs to develop a build to print competitive package for this item through reverse engineering are estimated below:

Cost and schedule breakout:

Reverse engineer and develop drawings 2 years $2.5 M Develop special tooling 6 months $0.25M Fabricate prototypes 12 months $0.25M Testing 12 months $0.75M Total 4.5 years $3.75 M

This delay would severely impact the availability of this item in the field. A fully functioning generator is necessary for vehicle readiness. Failure to be diligent in this effort would impose a risk as a premature failure of this item in the field and could result in an extensive loss of the equipment.

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

There is no guarantee that the Government will recover through subsequent competition of the costs involved in either procuring the proprietary data or reverse engineering the item to create a new, fully competitive package. The item cannot be made specification control because it is repairable with vendor proprietary parts. Even if an estimated 25% savings could be achieved by adding another supplier at the current average usage rate of 42 units per year, at the current unit cost of and assuming the 25% saving achieved through competition, the annual savings would take about years to offset the estimated $3.75M cost of reverse engineering the item and qualifying another source. In addition, the end item, the M109A6 Paladin, is being phased out and replaced with the M109A7 over the next 5-10 years, so generator demand will be diminishing.

If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least 4.5 years would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs. This shortage can lead to dead-lined vehicles since the generators are critical to the M109A6.

Only HONEYWELL has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to reliably supply this item. The use of incorrect material and/or improper process/quality control during manufacturing of this generator would result in malfunctioning or even a complete failure of this item for what it is designed, i.e., to recharge the vehicle batteries after the vehicle starts and to provide power for the vehicle’s electrical systems. A persistent malfunction or a failure of this generator would render the vehicle unable to perform its missions. Also, not being able to start and move the vehicle could jeopardize the safety of the crew in/during a battlefield situation. This kind of condition would force the Army unit to deadline the vehicle.

The item generates the engine accessory electrical power for the M109A6. Only HONEYWELL generators passed all unique characteristics in the areas of performance, design, construction, operations in various environmental conditions and vehicle system testing. In addition, only HONEYWELL generators passed the tests that were critical to ensure the vehicles would be mission capable and operationally ready. If an untested and/or non-approved component is installed in the vehicle, the electrical system may malfunction by failure to re-start the vehicle or failure to provide electrical power at a critical time.

Endurance: The generator must comply with performance test criteria shown on drawing 12361436. It includes a 3000-hour endurance test and various performance and environmental tests. The generator is part of a complex electrical vehicle configuration requiring extensive systems level qualification and testing to be approved for use. It generates 650-amps at 28v and converts it to DC (has integral rectifier). It has an integral oil pump. It is tested to 3000 hours.

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

Due to the rationale above there are no current or planned efforts to qualify additional sources, nor will be prior to the contract award.

6. Efforts to Obtain Competition:

(a) Effective Competition: Per section 7, potential vendors can submit requests to become a source through the Source Approval Process at any time. Per section 9, a Sources Sought notice was posted. Based on the detailed rational provided in paragraph 5 above, there are no current plans to develop or acquire a competitive TDP due to lack of funds that would be needed to acquire the data in order to support a competitive acquisition.

(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, there is no build to print TDP available to support an unlimited competitive procurement. HONEYWELL is the sole owner of the defining drawings and technical data rights. The Government did not buy HONEYWELL proprietary rights to produce a competitive TDP. This item is a specifically designed generator for application to the M109A6. Further, due to the costs associated with developing a competitive TDP that cannot be recovered as stated in section 5, the Government would not be able to recover the $3.75M to reverse engineer the generators within a justifiable time frame and thus not actively pursuing the development of a competitive TDP for future procurements.

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. 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 Ground Vehicle Systems Center (GVSC) Sustainment Engineering on 28 June 2019 to review cost and competition considerations, reviewing vendor catalogs and available product literature published by Kohler Co. and Baldor 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. This 28v generator is designed especially for the M109A6. Industry standard is 12v. While these two sources manufacture generators and generator sets for heavy duty applications, they are not submersible and lack a solution with the dimensional requirements and mounting provisions needed to fit within the unique space claim of the M109A6 application, which is specifically what this J&A seeks to acquire. It is also noted that LUCAS AEROSPACE LTD (prior approved source) was contacted and responded via email dated 11 September 2018 that they no longer had

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

the capabilities to produce this item. This NSN was confirmed to only be available from Honeywell.

Sources Sought Notice have been submitted to Fed Biz Opps on 1 July 2019 Item Name: 650-amp DC Generator with Container

NSN: 2920-01-442-8079

Part Number: 57K1788, 12361436 End Item: M109A6 155mm Self-Propelled Howitzer

Sources_Sought_N otice_2019-453.pdf

Market Research Links:

1. http://www.baldor.com/brands/baldor-reliance/products/motors/ac-motors/severe-duty

2. http://www.kohlerpower.com/marine/category.htm?categoryNumber=8361&sectionNum ber=13461

9. Interested Sources: To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item. Sources Sought Notice 2019-453 posted to Fed Biz Opps on 1 July 2019 for the Generator, 650-amp DC (OIL COOLED) with Container, NSN: 2920-01-442-8079 P/N: 57K1788, HONEYWELL Manufacturer P/N: 30B95- 46-C, as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-18-C-0360 Award Date: 26 September 2018 Contractor: Honeywell International Inc. (64547) Value Competitive Status: Limited Source Authority Cited: FAR 6.302-1, Only One Responsible Source signed--JA_SPRDL1- 16-R-0023.pdf

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the 650-amp DC generator with container in support of the M1909 Paladin.

c. Unusual and compelling urgency: N/A

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

d. Subcontracting competition: The Government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR 19.704.

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.

The Point of Contact for this action is Michael Kucinskas, Mechanical Engineer, FCDD-GVS- IEE, Michael.w.kucinskas.civ@mail.mil.

Name:

Title: Supervisory Team Lead- Light Combat Vehicle Engineering Signature:

Date: 7/30/19 Email:

Name:

Title: Associate Director, Sustainment Engineering Signature:

Date: 30 Jul 2019 Email:

Name Title: Executive Director – SI&E (Acting) Signature: see hardcopy attached in PDF package// Date: 5 SEPT 19

12. Requirements 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:

Title: Item Manager, Fires and Infantry Support PSID Signature:

Date: 9/18/19

Name:

Title: GCS R&S Director Signature:

Date: 1 Nov 2019

IAW FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy requirements.”

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.

Pursuant to FAR 15.403-4 Certified Cost or Price data will be required as the total value of this procurement is above the dollar threshold requirement.

Name: Eric Tucker Title: Contracting Officer Signature: //EET// Date: 12/8/2019

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

Name: Eric Tucker Title: Contracting Officer Signature: //EET// Date: 12/8/2019

15. Legal Concurrence:

Concur:

Date: 11/29/2019

Approval Authority for Acquisitions Equal to or Greater Than $13,500,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Generator, AC-DC (OIL COOLED) with Container

b. NSN: 2920-01-442-8079

c. Basic Quantity (Minimum): 150

d. Basic Contract Value (Minimum):

e. Option Percent: N/A (5-Year LTC)

f. Quantity with Option (Maximum): 1750

g. Estimated Value with Option (Maximum):

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

Signature:

Mark A. Brown, SES Acquisition Executive

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2020.01.09 16:44:20 -05'00'