JA_SPRDL121R0023_REDACTED.pdf

J&A SPRDL1-21-R-0023 (JA-00376)

Previous J&A SPRDL1-17-R-0118 is available.

also provides coolant passage to help reduce engine temperature. MTU America Inc.

has demonstrated their system has met all Army requirements to include integration with the vehicle through testing. As detailed in the following paragraphs, procurement from any other source will result in substantial duplication of cost that is not expected to be recovered through competition.

The Government does not have rights to the Technical Data Package (TDP) or specifications. This item was specifically designed for the 6V53T Diesel Engines which is used in the M113A1 and M113A2 Family of Vehicles. Only the MTU America engine block passed all the unique characteristics in the areas of performance, design, construction, operations in various environmental conditions, and vehicle system level testing as described in the Item Product Function Specification. These tests are critical to ensure that the M113 Family of Vehicles would be mission capable and operationally ready during all warfare environments. If an untested or unapproved engine block is installed on the 6V53T engines, the 6V53T engine could malfunction and result in degraded vehicle performance or in vehicle failure jeopardizing the safety of the crew in/during a battlefield situation. A failure of the engine block would force the operating unit to deadline the vehicle impacting the Operational Readiness (OR) Rate until the malfunctioning or failed engine is either repaired or replaced.

MTU America Inc. developed, tested, and obtained the US Government's approval of this item for application on the 6V53T engine at their own cost. MTU America has the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this Justification and Approval (J&A). MTU America, Inc. has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material or fabrication of this item could result in malfunctioning of the 6V53T engine. The Government did not fund their efforts in developing and testing this item.

The Government did not appropriate funds for a TDP preparation. MTU America, Inc. is the owner of their drawings, and the Government does not have rights to proprietary information which is required to produce a competitive TDP.

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.

Vehicle testing is required to ensure an additional supplier demonstrates the same performance levels (function, safety, RAM-D, etc.), as those produced by MTU America.

The only other option would be for the Government to initiate a reverse engineering effort, which would require significant duplication of cost. The estimated cost to develop a competitive TDP for this item through reverse engineering could run as high as $1.61M, which includes fabrication and testing of the prototype engine block and releasing a validated TDP. In addition, there would be added costs 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 $3M.

The total estimated duplication of cost including all the tasks to reverse engineer and test a new item would be approximately $4.61M and a delay of 40 months.

Ground Vehicle Systems Center (GVSC) Engineering has determined a Rough Order of Magnitude (ROM) cost estimate to reverse engineer this component and a minimum timeline to reverse engineer a first iteration of current component(s) to include review, design, prototyping, testing and TDP/publication refinement. This ROM is based upon similar ROMs provided by the Ground Vehicle Program Management (GVPM) team for similar reverse engineering projects that they have been involved in.

Reverse Engineering Activity Delay Costs Project definition 3 Months $35K Reverse engineer and create drawings 18 Months $750K Obtain prototypes 12 Months $250K Vehicle testing 15 Months $3M Drawing and Manual Changes 6 Months $75K Refurbish transmission & vehicle 6 Months $500K Total Estimated Time to Reverse Engineer 60 Months $4.61M

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a competitive TDP package. At the current average usage rate 24 units per year (to include Foreign Military Sales), at the current unit cost of $ , and assuming 25% savings achieved through competition based on historical savings, the annual savings of $ would take years to offset the estimated $4.61M 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.

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.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 28 January 2021 and was open for 15 days. No responses were received.

SOURCES SOUGHT

SPRDL121R0023.pdf

GVSC Sustainment Engineering performed Internet searches in January of 2021 for suitable competition, using the keywords: engine block, 6-cylinder, v-type, 2 stroke, 210 Horsepower (HP), Detroit Diesel, MTU America, diesel engine, 6V53T.

As this engine block is unique only to the 6V53T engine created by Detroit Diesel, no other manufacturers make this engine block. Previous procurements were awarded to Penn Power Group. They are an authorized distributor for MTU America and MTU America is the manufacturer of these parts.

The following are examples of online searches for manufactures of engine blocks for this engine and the findings:

- Vander Haags (https://www.vanderhaags.com/Search-Results.php); only provide used/remanufactured engine blocks.

- PC Industries (https://www.powerlinecomponents.com/); only provide remanufactured "long" blocks.

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

10.Other Facts: Procurement History:

Penn Detroit Diesel Allison, LLC (62860), contract SPRDL1-18-C-0040 awarded 23 January 2018. This was a firm fixed price contract, quantity 165 each/100% Option with an estimated total value of $1,821,022.50.

Penn Detroit Diesel Allison, LLC (62860), contract SPRDL1-16-C-0139 awarded on 08 March 2016. This was a firm fixed price contract, quantity 305 each/100% Option with an estimated total value of $3,188,470.

Penn Detroit Diesel Allison, LLC (62860), contract SPRDL1-14-C-0111 awarded on 25 September 2014. This was a firm fixed price contract, quantity 162 each/100%