JA_SPRDL121R0016_Redacted V2.pdf

SPRDL1-21-R-0016 (JA-00375)

Previous J&A:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0016

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

2. Description of Action: The proposed action is to award a new Firm-Fixed-Price Indefinite Delivery Indefinite Quantity (IDIQ) contract to Fischer Panda Generators, Inc., Commercial And Government Entity (CAGE): 1K1F3), for National Stock Number (NSN) 4120-01-613-1437, Environmental Control Unit (ECU), using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The Environmental Control Unit, NSN 4120-01- 613-1437, part number (PN) ECU72VSC, is used on the Petroleum Quality Analysis System – Enhanced (PQAS-E) to provide heated and cooled air inside the shelter of the system.

The deliverables for this contract are as follows:

Minimum Guaranteed Quantity: 3 each

Maximum Total Quantity: 50 each

Estimated Minimum Guaranteed Value: $

Estimated Maximum Value: $

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (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. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 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 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 Government does not own or have rights to the technical data for this item, as the Fischer Panda, PN ECU72VSC was developed and tested at private expense; as a result, the technical data is considered proprietary to the manufacturer. The Government did not fund any efforts in developing or testing this item, nor did the Government fund any efforts to prepare a fully detailed Technical Data Package (TDP) after approval. Fischer Panda is the sole source owner of the drawing package and technical data rights. The lack of such data requires the ECU to be procured on a non-competitive basis from the current manufacturer at this time.

Fischer Panda’s ECU, PN ECU72VSC is the only approved ECU for the PQAS-E and is needed to insure standardization of equipment, operating procedures, training, spare parts, and manuals with the PQAS-E. Due to the specific dimensions of the exterior of the PQAS-E, the only suitable ECU available is the Fischer Panda PN. Additionally, the mounting brackets have been specifically designed for Fischer Panda’s PN ECU72VSC and will not work with any other models. Furthermore, mechanical porch space is also conserved due to the small size of the ECU which allows for a more powerful and efficient ECU to fit in the space provided; if a different ECU were used instead, these benefits would be lost. Finally, the Technical Manual (TM) has been written specifically for this ECU. It would be very costly and time consuming to update the TM to reflect the new operating procedures if a different ECU were to be used.

The Government does not have rights to the TDP or specifications.

The EUC72VSC, which was designed and is currently manufactured by Fischer Panda was extensively tested by Tank Automotive Research, Development and Engineering Center (TARDEC) (now Ground Vehicle Systems Center (GVSC)) in its labs for reliability and proper function before being chosen for use in the PQAS-E. This ECU, along with the generator and Power Distribution Unit, were developed solely by Fischer Panda and specifically integrated to work on the PQAS-E shelter. Due to the unique environments (cold storage, hot storage, high humidity, and high vibration) the PQAS-E will operate in, the ruggedness of this piece of equipment is vital for it to be reliable in the field. This ECU was heavily tested in very low temperatures, high temperatures, and in inclement conditions like blowing sand and dust to ensure it could reliably heat and cool the inside of the PQAS-E. If a different ECU were chosen it would have to be tested to ensure suitability for use with the PQAS-E and the ECU itself would also have to be tested to verify it can withstand the shock and vibration that is caused from the PQAS-E traveling over unimproved roads and rough terrain. This ECU is unique in its small footprint which allows it to fit on the front of the PQAS-E, as well as be placed atop the fuel tank for the PQAS-E's generator. This ability to be stacked on the fuel tank allows the greatest use of space possible, and if a different ECU were to be used this conservation of space would be lost, or a new fuel tank would have to be designed and tested as well to integrate into the PQAS-E. The ECU is connected directly to a controller inside the lab which allows the operators to control the inside temperature of the lab without having to go outside to make adjustments. Because the PQAS-E is fully protected from electromagnetic interference (EMI), special cables and seals must be used to ensure the integrity of the EMI envelope. This would also be lost or have to be redesigned and tested if a different ECU were used.

The Integrated Logistics Support Center (ILSC) and GVSC developed the PQAS-E TM, which was written specifically for this ECU and includes detailed work packages with pictures on how to operate the ECU, maintain the ECU, service the ECU, as well as troubleshoot the ECU. A new ECU would necessitate that the TM be revised to include all new work packages. The ILSC Petroleum and Water Systems team provisioned all the spare parts of the PQAS-E program and NSNs have been assigned. A different ECU would also require new provisioning and NSNs and those would have to be updated in the TM as well.

GVSC has estimated that Reverse Engineering the ECU would cost an estimated minimum of $2M with a lead time of 24 months for design, development, production, and technical data development. In addition, it would have to undergo qualification and integration testing. Qualification testing on an ECU installed in the PQAS-E would have an additional lead time of 12 months and cost an additional estimated minimum of $3M.

In total, reverse engineering and qualification testing to include form, fit, and function test, performance test, and durability testing would require at least 36 months and an estimated minimum of $5M. 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 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 would result in the PQAS-E being non-mission capable which could jeopardize the Army’s mission in a potentially adverse operational environment. Funds are not available currently 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 Purchase Request Order Number (PRON) to maintain readiness and avoid system dead-lining due to supply problems.

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 TDP. At the current average usage rate of five units each year, a current unit cost of , and assuming 25% cost savings achieved through competition, the in annual savings would take over years to offset the estimated $5,000,000 cost of reverse engineering the item and qualifying another source.

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.

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. 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 since the

Government does not possess a fully defined and validated TDP for this item.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 31 January 2021 and was open for 15 days. One response was received as detailed below:

Beta.Sam Sources Sought Notice.pdf

MilAIR Thermal Products, located in Sterling Heights, MI, specializes in the engineering, development, manufacturing and testing of Environmental Control Systems (ECS) for the defense and aerospace market. In addition to a standard family of Environmental Control Units, MilAIR’s vast capabilities include, but are not limited to, Liquid to Liquid Heat Exchangers, Liquid to Air Heat Exchangers, Fluid Coolers, Liquid Chillers and Diesel Generators. Other capabilities also include the repair, overhaul and upgrade of several types of cooling systems manufactured by other suppliers.

The PQAS-E Systems Engineer reviewed the information sent from MilAIR Thermal Products on 08 March 2021. It was concluded that they do not produce an ECU that would be a drop-in replacement for the current Fischer Panda ECU. The integration into the PQAS-E would require significant redesigns on the system and would also require significant cost to implement. Furthermore, new TMs would have to be developed as well as full provisioning completed to support the MilAIR ECU.

The PQAS-E Systems Engineer, on the Petroleum and Water Equipment Team, conducted web searches on 13 January 2021 for suitable ECUs that would satisfy the form, fit, and function of the ECU currently used on the PQAS-E. Search criteria included environmental control unit, portable ECU, and ruggedized ECU.

The following websites were found that had comparable ECUs:

https://www.tekgard.com/horizontal-configuration https://blu-med.com/ecu-environmental-control-units/ http://www.hdtglobal.com/product/6-ton-basic/

Findings: The three ECUs that were found in the web searches are not suitable substitutes for the ECU in question. All the ECUs would require new mounting provisions, new TM work packages, and new spare parts to be incorporated into the PQAS-E. Furthermore, a different ECU would have to be tested for function and reliability, to ensure it is up to the standards needed for a mobile laboratory environment.

9. Interested Sources: One additional company expressed interest in becoming an

Approval Authority for Acquisitions Equal to or Greater Than $750,000 But Less Than $15M

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: Environmental Control Unit

b. NSN: 4120-01-613-1437

c. Basic Quantity: 3 each

d. Maximum Quantity: 50 each

e. Estimated Minimum Value: $

f. Estimated Maximum Value: $

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 proviso that the property herein described has otherwise been authorized for acquisition.

Digitally signed by

SHEARER.MARY SHEARER.MARY.E.125070244 9

X.E.1250702449 Date: 2021.07.13 08:40:20 -04'00'

Competition Advocate