JA_SPRDL121R0061_Redacted.pdf

SPRDL1-21-R-0061 (JA-00423)

Previous J&A SPRDL1-18-R-0414 is available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0061

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

2. Description of Action: DLA-WRN proposes to award a new, Firm-Fixed-Price, three-year Indefinite Delivery Indefinite Quantity (IDIQ) type contract to Stanadyne Corporation, Commercial and Government Entity (CAGE) 84760, for National Stock Number (NSN) 2910-01-641-0042, Pump, Fuel, Metering and Distributing. Army Working Capital Funds (AWCF) will be used.

3. Description of Supplies/Services: The NSN 2910-01-641-0042, part number DB2831-6282 or DB2831-6364, Pump, Fuel, Metering and Distributing, is used on the High Mobility Multi-Purpose Wheeled Vehicle (HMMWV). The three-year guaranteed minimum contract quantity is 243 each, and the three-year maximum quantity is 5,832 each. The total guaranteed minimum value of this contract is estimated at and the total maximum value is estimated at .

This Fuel Injection Pump (FIP) belongs to the Up Armored HMMWV.

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.

The FIP is a mechanical device that delivers the fuel from the fuel tank to the engine of the HMMWV. The FIP pressurizes and injects the fuel, forcing compressed air at a high pressure in the combustion chamber of the engine. The FIP ensures optimal calibration and fuel delivery for the specific engine. In return, the FIP helps to fully maximize the HMMWV's power, efficiency, and fuel consumption. The engine, when fueled, is then able to optimize and provide the power necessary for the HMMWV engine to complete the mission.

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.

Previous J&A SPRDL1-18-R-0414 is available

5. Reason for Authority Cited: This particular FIP (NSN 2910-01-641-0042) was originally tested and developed by Stanadyne Corporation approximately 30 years ago for the Detroit Diesel 6.5 Liter (L) turbo engine used in the HMMWV. In order to speed up the development and procurement process of the original HMMWV, AM General used the Stanadyne FIP and the Government did not obtain the technical data rights.

AM General is the Original Equipment Manufacturer (OEM) of the HMMWV while Stanadyne is the OEM of the FIP that is mounted to the vehicle engine. The current Stanadyne FIP to be purchased is a product improvement of previously purchased versions which features a steel pump body designed to improve the FIP service life.

This FIP was designed to optimize engine performance for the 6.5L turbo engine used in the HMMWV. Other FIPs may not allow for the optimized performance of this specific engine.

There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN 2910-01-641-0042 fully competitive.

Consequently, there are no current plans to acquire a fully competitive Technical Data Package (TDP) because funds are not available to acquire the data necessary.

Technically, there are three choices for the Government to pursue and obtain the data to this item. The three choices are: 1. Research and Development of a Government-owned Fuel Injection Pump design; 2. Reverse Engineering if the Government is unable to procure the item; and 3. Ask the vendor, in this case Stanadyne, for a price to purchase the Technical Data and rights to procure the item competitively. The Program Management Light Tactical Vehicle (PM LTV) office has tried to obtain pricing for the HMMWV TDP back in 2010 during a contract re-procurement with AM General. The Government asked for the cost on the Armor, Heating Ventilation and Air Conditioning (HVAC) system and all Rev B components of the HMMWV which would have included the FIP. AMG’s response was that it was not for sale. This leaves the Government with two remaining options to acquire the data as follows:

(i) Research and Development (R&D): To develop a competitive data package through a R&D effort, procuring proprietary data for research and qualifying additional sources will entail a significant amount of time, facility resources, man-hours, and funding.

Based on experience with similar efforts, the estimated cost to research and develop a compatible product and qualify additional sources exceeds $5,000,000 with a setback of 42 months. Required funding would include $3,500,000 for personnel to support research, and redevelopment of an item that would perform the same task as this NSN.

That $3,500,000 would also include funding for staff to develop the Computer Aided Design (CAD) models and drawings that would be required for any potential vendor to manufacture from. Another $1,500,000 - $2,000,000 would be required to develop prototypes to test and validate the Government design that functions identically to the original. If funding for a new R&D effort became available, the 42-month process would consist of the following: 12 months to develop requirements, 6 to 12 months in design and prototyping, 12 months to test compatibility and function, and an additional 12 months to write the TDP and provision the parts. A timeline of the estimated R&D process is shown below for clarity.

Light Tactical Vehicle (LTV) Engineering estimates the following timeline for R&D:

Requirements development: 12 Months Design and prototype development: 6 Months Component, safety and system level testing: 12 Months Write TDP, technical bulletins and provision parts: 12 Months

Estimated Time to research and develop: 42 Months

(ii) Reverse Engineering (RE): To reverse engineer, validate the design, procure prototypes for testing and release a competitive data package would entail a significant amount of time, facility resources, man-hours, and funding. Based on past development experience, the estimated cost to develop a reverse engineered competitive product is $4,500,000 with an estimated delay of no less than 36 months. Required funding would include $3,000,000 for personnel to support reverse engineering and validation of the design as well as fund staff to develop the CAD models and drawings. Add another $1,500,000 - $2,000,000 to develop prototypes, test and finalize the product to verify that the newly created item provides equivalent performance when compared against the original. If funding for RE became available, the 36-month process would consist of the following: three months to obtain existing parts, three months to tear down and understand the design, six months to iteratively develop drawings, prototypes and bench test, 12 months to perform system and vehicle level testing, and 12 months to write the TDP and provision the parts. To complete the RE process successfully, the Government would have to obtain a sufficient sample size of existing parts to provide a 95% probability and 90% confidence level in the actual size of the existing item to be studied. Once a large enough sample has been collected, the Government would then tear down and understand the design, conduct prototype development, and produce the final TDP and associated provisioning documents at a cost of $4,500,000. A timeline of the estimated R&D process is shown below for clarity:

Obtain existing parts: 3 Months Tear down and understand the design: 3 Months Prototype development: 6 Months Component, safety and system level testing: 12 Months Write TDP, technical bulletins and provision parts: 12 Months

Estimated Time to Reverse Engineer: 36 months

In addition to the cost and delay for an R&D action or RE effort, LTV estimates that it would take approximately one additional year to establish another source and procure these FIPs on a competitive basis. Specific events would include additional market research, solicitation, evaluation, and awarding a contract. Finally, any new source of supply would require component, safety, and system level testing that is estimated to take six months. These estimates are based on similar Government projects. These events combined are estimated to take an additional 12 months after development of the item.

The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the FIP to create a new and competitive TDP. At the current average usage rate of 1,166 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 $4,500,000 in cost to RE the item and qualify another source.

If the procurement of the HMMWV fuel injection pump is delayed until the TDP is developed by the Government and made suitable for a competitive procurement, the Government would experience an unacceptable delay of a minimum of four years in fulfilling this requirement. The four-year delay is a result of the time required to develop items of equivalent performance explained previously in this document. Further delay in providing this NSN will negatively impact our force readiness and capability to actively support U.S./Coalition efforts, as without the FIP the HMMWV would be unable to perform its mission. Stanadyne Corporation is currently the only source that can meet the requirements without substantial duplication of cost and without unacceptable delay against this action. The approved source has the requisite technical and engineering expertise to perform all efforts required to provide the NSN identified in this Justification and Approval (J&A). The contractor developed the FIP identified in this document without assistance from the Government. Furthermore, if a project to make this item competitive was rushed through without proper testing and validation, there would be an increased risk of a premature failure of this item in the field which could result in an extensive loss of the equipment through destroyed engines.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above, the Government is 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 21 March 2021 and was open for 15 days. No responses were received.

In March 2021, Ground Vehicle Systems Center (GVSC) Engineering conducted a computer-based online search of known fuel injection pump suppliers looking for published material on a new built fuel injection pump assembly.

Keyword(s): fuel injection pump, fuel injection pump manufacturers, 6.5L Turbo Charged Diesel Engine

Links used to conduct market research are listed below:

https://www.standardbrand.com/en/products/diesel/diesel-fuel-injection/diesel-fuel-injection-pumps https://usdieselparts.com/c-969576-chevy-gmc-1993-2000gm-6-5l-turbo-diesel-electronic-injection-pumps-and-injectors-gm-6-5l-td.html https://pensacoladiesel.com/product/94-00-remanufactured-6-5l-ds-pump/ https://www.hdiesel.com/P/5ChevyGMCDieselInjectionPump/1071 https://www.accuratediesel.com/shop/10.html

Findings: The results of this search did not produce any new companies that would provide a direct replacement fuel injection pump for the HMMWV 6.5L Turbo Charged Diesel Engine that is 100% new and not rebuilt that could be installed in the HMMWV without considerable time and effort to adapt the new components. Note that the HMMWV is in sustainment at this time so massive vehicle system changes to accommodate competition are not funded and are unable to be fielded.

Summary: As a result of the Market Research, it was concluded that the Government does not have enough detailed information to consider similar parts for this specific application on the HMMWV. This fuel injection pump cannot be identified as a Commercial-Off-The-Shelf item.

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

10. Other Facts: Procurement History:

Contract Number: SPRDL1-19-D-0061 Award Date: 5 November 2018 Contractor: Southeast Power Systems of Orlando, Inc.

Contract Value: $8,247,300 Competitive Status: FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements