JA_SPRDL122R0047_Redacted.pdf

Solicitation No. SPRDL1-22-R-0047 (JA-00485)

The Government does not have rights to the Technical Data Package (TDP), specifications, or intellectual property data to enable competitive procurement.

Danfoss is the original equipment manufacturer (OEM) and owns the intellectual property and TDP for this hydraulic piston pump. Danfoss has the knowledge and production capability to produce and/or source the necessary internal components, and the expertise in producing these hydraulic pumps. Unverified or unqualified substitute parts could result in inadequate system performance or would likely not fit properly and require additional work to retrofit.

The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Team has estimated that Reverse Engineering this hydraulic pump would cost an estimated minimum of $625,000.00 for Research and Development (R&D), comprising of design, development, and production. In addition, this pump would have to undergo qualification and integration testing, which would cost an additional estimated minimum of $325,000.00. Finally, in order to procure this hydraulic pump competitively, a complete TDP would need to be developed, which would require, at a minimum, an additional cost of $325,000.00.

Given the above, reverse engineering and qualification testing to include material test, form, fit, and function test, performance test, and durability testing would total at least $1,275,000.00. The Government would not be able to recover, within a reasonable amount of time, through subsequent competition, the additional costs involved in reverse engineering the items to create a competitive TDP. At the current average usage rate of 23 each, and assuming a cost savings rate of 25% achieved through competition, the in annual savings would require over years to offset the estimated $1,275,000 cost of reverse engineering the items and qualifying another source.

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. The notices required by FAR 5.201 will be posted.

b. Subcontracting competition: N/A; the estimated value of the resultant contract is not expected to require a small business subcontracting plan.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above. Nonetheless, the Government will continue to monitor Danfoss’ willingness to sell or license rights to their proprietary TDP.

8. Market Research: A Sources Sought Notice was posted to beta.SAM.gov on 11 February 2022 and was open for 17 days. An updated notice was reissued on 24 March 2022, reflecting Danfoss as the manufacturer (in lieu of Eaton Corporation, Hydraulics Division, CAGE: 9G527, which had been the original manufacturer; however, the hydraulics division was sold to Danfoss in 2020), and was open for 7 days. No

Solicitation No. SPRDL1-22-R-0047 (JA-00485) responses were received to either notice.

GVSC performed internet searches for suitable competition, utilizing the following search terms:

“PTO driven hydraulic pump” “PTO driven hydraulic pump heavy duty” “PTO driven hydraulic pump dump truck” “Hydraulic piston pumps”

Findings: Although the internet search identified some possible sources (such as Grainger, Prodrive PTO, Muncie Power, and Parker), there was not information online to determine whether these options will fit in the PLS in the same manner as the sole-source part. Due to the lack of a technical data package or in-depth technical specifications of the sole-source part, the validity of the researched pumps is difficult to determine.

Hydraulic piston pumps are typically rated by their pressure and flow rate. The pressure and flow rating of the sole-source component is not known, so beginning to narrow a search is impossible. Through visual comparison of the hydraulic pump from the Army technical manual to the researched hydraulic pumps, none of the commercially available parts researched appear to be identical in mounting locations, size, or shape.

Due to the internal components of many hydraulic pump assemblies, even a hydraulic pump that looks the same externally can vary greatly in performance or capability.

Hydraulic piston pumps are classified by the type, flow rate, and pressure. Additionally, bolt patterns for mounting, fitting size, type, and configuration, and controls methods are very specific per application. The exact characteristics of this hydraulic pump are not known. A pump other than the approved source of supply would have to undergo qualification testing to ensure suitability in this application. A different hydraulic pump would have a higher technical risk of failure upon installation and operation unless qualification testing was performed, as described in Section 5.

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

10. Other Facts: There is no previous acquisition history for this item.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name:

Title: Branch Chief, Tactical Vehicle Sustainment Engineering Email:

Signature: