JA_SPRDL121C0064_Redacted.pdf

J&A SPRDL1-21-R-0070 (J&A JA-00427)

(Previous J&A not available)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0070

1. Contracting Agency: The Defense Logistics Agency - DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price (FFP) contract to AMBAC International Corporation, Commercial and Government Entity (CAGE) 01843, for National Stock Number (NSN) 4320-00-722-3536, Head, Hydraulic Motor-Pump, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The NSN 4320-00-722-3536, part number HD8821A, Head, Hydraulic Motor-Pump is used on the M88A1. The deliverables for this contract are for a base quantity of 151, with an option quantity of 302. The total contract quantity total is 453 at a cost of each. The total maximum value of this contract is .

The Head Hydraulic Motor-Pump is also known as an “Injector Pump Head” which is part of the Fuel Metering pump located in the vee of the Air-cooled, V-configuration, Diesel ignition, Supercharged 1,790 cubic inch (AVDS-1790) engine for the M88A1 Medium Recovery Vehicle. The metering pump contains two of these head assemblies.

Mechanically operated, each head assembly pressurizes and distributes fuel to half of the engines 12 cylinders. If the head assembly fails, the main engine would fail to operate rendering the vehicle non-mission capable (NMC).

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (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.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 2304(c)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited: The Injector Pump Head is a critical component of a highly specialized AVDS-1790 engine assembly which operates in a unique military weapons system. The design of the Injector Pump Head is unique in that it is packaged in such a way to fit the current injection pump and subsequently within the valley of the AVDS-1790’s cylinders neatly while accommodating 12 fuel lines. Development of a similar Injector Pump Head would also be required to fit within this unique space claim without interference with existing components also collocated in the valley of the engine all while delivering fuel at the volume and pressure specific to satisfy the fuel demand of an AVDS-1790 engine. Only the identified source, AMBAC International Corporation, has demonstrated the requisite technical and engineering expertise to perform all efforts required to provide the Injector Pump Head. AMBAC International Corporation has demonstrated the unique and proven manufacturing capabilities to maintain the processing control required to repetitively produce the Injector Pump Head.

The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not have rights to the Technical Data Package (TDP) or specifications.

In addition, the approved source’s item has met the North Atlantic Treaty Organization (NATO) requirement for successful completion of NATO Laboratory Test for Diesel and Spark Ignition Engines Allied Engineering Publication (AEP) 5, while operating in an AVDS-1790 engine. This test is required for components which are critical for engine/vehicle operation and crew safety. Malfunction could result in catastrophic loss of equipment and life due to the vehicle becoming inoperable in a combat scenario. If another possible source of supply for this item were identified, qualification testing would be required.

A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. The estimated cost to develop a competitive package for this item through reverse engineering could run as high as $1.5M and could require an estimated delay of at least 18 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 $3.5M and a delay of 24 months.

Reverse Engineering Activity Delay Costs

Reverse engineer competitive TDP 12 months $1M

Qualification of pump head 6 months $500K

Fabricate Three Prototypes and Durability Test 24 months $3.5M

Total Estimated Time to Reverse Engineer 42 months $5M

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. It is estimated that 25% savings could be achieved by adding another supplier. At the current usage rate of 25 units per year, at the current unit cost of , and assuming 25% savings achieved through competition, the annual savings would take over years to offset the estimated $5M cost of reverse engineering the item and qualifying another source.

The consequential time delay of 42 months to reverse engineer, develop and test the new design and then qualify a new vendor for this effort is also unacceptable due to the future demand for the Injector Pump Head. There is currently no stock on hand and 42 backordered units. Furthermore, there is a forecasted annual usage of 25 units for subsequent years. The time delay of reverse engineering would result in NMC backorders as the depot rebuild program resumes in 2022.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above we are not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

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

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

Due to the costs associated with developing a competitive TDP that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 28 April 2021 and was open for 14 days. No responses were received.

Market research was performed by Ground Vehicle Systems Center (GVSC) Sustainment Engineering on 22 April 2021 by reviewing vendor catalogs and available product literature published by Bosch Inc. and Stanadyne Inc. to determine if their commercial Injector Pump Heads are able to meet the Government's needs or could be modified to meet the Government's needs. While these two sources manufacture injector pumps and head assemblies for heavy duty applications, they lack a solution with the dimensional requirements, geometry and mounting provisions needed to fit within the unique space claim of the M88 FOV’s application, which is specifically what this J&A seeks to acquire. Further, since neither of these sources have produced this specific item for the M88 FOV’s application they have not completed the necessary testing to become a qualified source as described in section 5. This NSN was confirmed to be available from AMBAC International on 21 April 2021. AMBAC sells through its distributor network and the part will need to be acquired from one of those businesses.

Lastly, it is noted that Ex-Part Inc. (CAGE 3BM86) has supplied this NSN previously as an approved distributor for AMBAC. By phone call on 19 August 2020 from DLA Land Warren Contracting, AMBAC confirmed that it will use Ex-Part Inc. as its distributor for this specific requirement.

Website: https://www.boschautoparts.com/en/auto/diesel-parts

Findings: Using the part identifier tool on their website it was found Bosch does not manufacture injection pumps for applications such as this, they are primarily an automotive diesel part manufacturer. There are no commercially available items in their catalog that will work in our application.

Website: https://www.stanadyne.com/diesel-products/db-rotary/

Findings: Stanadyne makes one type of mechanical injection pump, the DB series.

Upon reviewing the literature available, the pump only supports up to 200 horsepower.

Furthermore, the design is different from the injection pump than the heads being procured under this J&A.

9. Interested Sources: To date no additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

Contract: SPRDL1-18-C-0248 Awarded: 01 MAY 2018 Contractor: EX-PART INC. (3BM86) Contract Value: $1,446,510.00

Contract: SPRDL1-16-D-0067 Awarded: 04 DECEMBER 2015 Contractor: S I T CORPORTATION Contract Value: $166,920.00 Competition: FAR 6.302-1

Contract: SPRDL1-15-D-0042 Awarded: 12 DECEMBER 2014 Contractor: S I T CORPORTATION Contract Value: $255,750.00 Competition: FAR 6.302-1