JA_SPRDL120R0131_Redacted.pdf

J&A DLA-00073 (SPRDL1-20-R-0131)

There are no prior procurements therefore no previous J&A is available

J&A DLA-00073 (SPRDL1-20-R-0131) 1

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0131

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

2. Description of Action: The proposed action is to award a contract to Bosch- Rexroth Corporation, Industrial Hydraulics Division, (CAGE 27005) for National Stock Number (NSN) 4320-01-661-9782, NOUN Pump, Hydraulic.

The Pump, Hydraulic (Hydraulic Pump), NSN 4320-01-661-9782, is used on/for Paladin Intergrated Management (M109A7/M992A3) Vehicles.

Type of action: New

Utilizing a Firm Fixed Price (FFP) contract for the following: One time buy with option

Utilizing: Army Working Capital Funds (AWCF)

3. Description of Supplies/Services: Bosch-Rexroth Corporation, Industrial Hydraulics Division will provide: Pump, Hydraulic, NSN: 4320-01-661-9782.

Government Part Number(s): 12577842 Manufacturer’s Part Number: R978062755

The hydraulic pump is mission critical for keeping the engine temperature at proper operating levels via the cooling fans, providing mechanical energy for tank gun maneuverability, and braking system. Each engine mounted hydraulic pump is powered/spun mechanically by the vehicle's transmission meeting the hydraulic pressure requirements of the vehicle’s mechanical accessories, e.g., the cooling fans of the Power Pack Drive/Train system.

The deliverables for this contract are as follows:

Base Quantity: 42 each Option: 100% Total Quantity: 84 each

The unit price for each item is for a total estimated value (including option) of

Acquisition Method Code (AMC): 4 - Acquire, for the first time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC): B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government

J&A DLA-00073 (SPRDL1-20-R-0131) 2

data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in the Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 USC 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Will Satisfy Agency Requirements.

4. Reason for Authority Cited: The hydraulic pump is mounted externally to the engine of the A7/A3 vehicles. It is an integral part of the vehicle’s closed loop hydraulic cooling subsystem. It is capable of producing 430 bar (6235 psi) presssure for the operation of engine accessories, e.g. it provides hydraulic pressure necessary to operate the vehicles cooling fans. The hydraulic pump generates line pressure via rotational energy from the vehicle's transmission via the power take-off (PTO) unit.

However, the output can be varied by electrical input signals ranging from 200 milliamps

- 800 milliamps and at 21.5 - 26.5 volts DC. Reference M109A7 Self-Propelled Howitzer (SPH) and M992A3 Carrier, Ammunition, Tracked (CAT) Detail Specification of Power Take Off (PTO) Component, Document ID; 12581483 Sections 1.1 & 3.2.

Most importantly, the hydraulic pump is mission critical for keeping the engine temperature at proper operating levels via the cooling fans, providing mechanical energy for tank gun maneuverability, and braking system. If hydraulic overheating should occur, personnel & materiel would be left vulnerable during combat situations which could result in loss of human life and loss of materiel and failure to complete mission.

The Government does not own or have the necessary intellectual property data rights or the pertinent technical data to enable competitive re-procurement.

Technical Justification: At this time, Bosch-Rexroth is the only approved source for the Hydraulic Pump. As the original equipment manufacturer and sole source for the hydraulic pump, using Bosch-Rexroth minimizes the potential of hydraulic pump malfunctions.

• The hydraulic pump is source controlled to Bosch-Rexroth. The Government does not have detailed drawings that are necessary for competitive procurement.

Bosch-Rexroth has developed, tested, and obtained the Government’s approval for this hydraulic pump for application on the M109A7 and M992A3 vehicles at their own costs.

The Government did not fund Bosch-Rexroth in its effort in development and qualification testing of this item or preparation of the fully detailed Technical Data Package (TDP) after approval. As such, Bosch-Rexroth is the sole owner of the

J&A DLA-00073 (SPRDL1-20-R-0131) 3

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.

• The use of incorrect materials and/or improper process/quality control during manufacturing would result in the malfunction of the Hydraulic Pump’s performance criteria listed on drawing 12577842A and other dependent subsystems. Use of any other source other than Bosch-Rexroth Corporation would increase the possibility/probability of any Hydraulic Pump malfunctions.

• Since this pump has been previously validated for production by the approved source, there are no current plans to generate a competitive TDP, either through purchase or via reverse engineering. Both would cause product delays and negatively impact the availability of the second sourced Hydraulic Pump in the field.

Action for Competition: It is cost prohibitive to reverse engineer the Hydraulic Pump.

The hydraulic pump and performance variants like it have been developed by the Bosch-Rexroth Corporation. In addition to the existing contract, the Government would need to acquire additional resources to perform all development and testing to successfully reverse engineer this unit. The following is a rough estimate of the associated Governmental time delay. It is also cost prohibitive to reverse engineer the Hydraulic Pump. The hydraulic pump and performance variants like it have been developed by the Bosch-Rexroth Corporation. In addition to the existing contract, the Government would need to acquire additional resources to perform all development and testing to successfully reverse engineer this unit. The following is a rough estimate of the associated Governmental time delay and costs:

Reverse Engineering (RE) Tasks Duration (months)

Cost (millions)

Develop specifications & drawings 24 $ 2.22 Develop special tooling 6 $ 0.27 Fabricate prototypes 12 $ 0.80 Prototype Testing 12 $ 0.50 Production tooling 24 $ 0.25 Validation testing 12 $ 1.50 Create and implement Engineering Change Proposals

4 $ 0.06

Total RE 94 $ 5.60

Pay back Calculation: The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the item to create a new and competitive hydraulic pump package. At the current average usage rate of 12 units each year (per the Average Monthly Demand of 1), a current unit cost of and assuming the 25% saving achieved through competition, the in annual savings would take over years to offset the estimated cost of $5.60M to RE the hydraulic pump and qualify another source.

J&A DLA-00073 (SPRDL1-20-R-0131) 4

5. Efforts to Obtain Competition:

a. Effective competition efforts: Due to the reasons cited in section 5 above the Government is not pursuing competition for this item.

SOLE SOURCE: Notices required by FAR 5.201 will be posted.

6. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above. 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 fully-defined and validated TDP for this item. The source of supply, Bosch-Rexroth (CAGE 27005), owns the detailed TDP for this item.

Additional actions to increase competition information:

As stated in section 5 above, there is no build to print TDP available to support an unlimited competitive procurement. Bosch-Rexroth Corporation is the sole owner of the defining drawings and technical data rights. The Government did not buy Bosch- Rexroth proprietary rights to produce a competitive TDP. This item is a specifically designed hydraulic pump for application on the M109A7/M992A3. 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 $5.6M to reverse engineer the hydraulic pump within a justifiable time frame and thus not actively pursuing the development of a competitive TDP for future procurements.

Market Research: Market Research efforts included:

a. A Sources Sought/Request for Information was posted on the Beta.Sam website on 19 February 2020:

Notice ID: SPRDL1-20-R-0131 Noun: Pump, Hydraulic

NSN: 4320-01-661-9782

Government Part Number: 12577842 Quantity: 42 each Option Quantity: 42 each End Item: Howitzer, Self Propelled

The Sources Sought Notice can be viewed at:

https://beta.sam.gov/opp/d0a8f0ca6be6406886aaaf0aefa56cdf/review

b. Performed Internet searches for suitable competition, described below:

of Light Combat Sustainment Engineering performed the following internet searches in January 2020.

J&A DLA-00073 (SPRDL1-20-R-0131) 5

Keywords: Hydraulic Pump; National Stock Number (NSN): 4320-01-661-9872; PTO Pump

• Website: Grainger o https://www.grainger.com/category/hydraulics/hydraulic-pumps/hydraulic-pto-pumps

• Findings:

o Found 8 PTO pumps suitable for a range of tractors including front end loaders, pull-type cotton pickers, cotton bailers, landscape equipment, rotary motors, street sweepers and more. None of the pumps meet the fit, form, or function as specified per hydraulic pump, part number: 12577842.

Website: FluiDyne Fluid Power o https://www.fluidynefp.com/Category.aspx?Id=18

• Findings:

o Models meet two of the performance requirements. However, no pumps meet all eight performance requirements. In addition, the pumps did not meet the dimension requirements for M109A7/M992A3 engine interface.

• Website: Star Hydraulics & Pneumatics o https://www.starhyd.com/markets.html

• Findings:

o Star provides custom hydraulic pumps for military applications. Models were not listed.

• Website: Fluid Power Solutions o https://www.fluid-power-solutions.com/hydraulic-services-government-military/

• Findings:

o Fluid Power Solutions is a Parker distributor for the military so I Google searched for Parker directly and found Parker Hydraulic Pump and Power Systems (see below)

c. Additional Market Research efforts: Sustainment Engineering obtained Parker Hydraulic Pump and Power Systems from Google search and acquired point of contact information on . Contacted Parker Hydraulic Pump and Power Systems (14249 Industrial Parkway Marysville, OH) in January 2020 and spoke with , who indicated that he would need the specifications & other requirements to consider the design of a comparable hydraulic pump.

. was informed that the Government did not have the specifications and could not provide information from another source. At that point, he concluded the conversation by stating the only way he could help is to have the product information mentioned above.