JA_SPRDL122R0136_Redacted.pdf

SPRDL1-22-R-0136 (JA-00531)

Previous J&A is not available

2815-01-567-7009, manufacturer’s part number 504354860 and the supplier CAGE 10988. Part number 504354860 is a reciprocating internal combustion engine, in which the power necessary to produce motion of the mechanism is obtained by igniting a compressed fuel and air mixture within the cylinder or cylinders by extreme heat resulting from compression. The Diesel Engine consists of a cylinder block assembly complete with a cylinder head and oil pan. The M400 SSL Type II and Type III end items were procured by the Government through a performance specification, where the selection of the subcomponents was left to the end item manufacturer as part of their internal design effort. There is no TDP available to the Government for the end item or its subcomponents, including the Diesel Engine. The cost of procuring proprietary information is cost prohibitive and would likely not be recovered through subsequent competition. The M400 SSL is a vital part of the Army’s supply distribution mission, and delays in receiving this Diesel Engine would severely impact the M400 SSL user’s mission, resulting in machines becoming non-mission capable.

The Government contacted CNH on 20 September 2022 regarding a potential purchase price for the Diesel Engine TDP. CNH stated that the intellectual property belongs to Fiat Power Technologies and cannot be released or sold to the Government at this time.

The Diesel Engine is not a feasible candidate for reverse engineering as it is a component that has already been designed by an established commercial vendor.

Reverse engineering is therefore estimated as a high-risk proposition, as it would be replicating the effort associated with the original design of the Diesel Engine.

The risk for the Government is high as there are limited resources to commit to this type of effort. The U.S. Army Combat Capabilities Development Command (DEVCOM) Ground Vehicle Support Center (GVSC) project engineer on the Combat Engineering, Material Handling Equipment (CE-MHE) team estimated that it would cost approximately $4.5M to reverse engineer, test and develop a competitive TDP for the Diesel Engine. The estimated reverse engineering tasks, approximated costs and timelines are detailed below:

$1.0M in cost to obtain the Diesel Engine from CNH, perform tear down, analysis, and testing. This effort would take approximately two years to complete.

$1.5M in cost to design hardware, fabricate engine castings, internal mechanical components, external mechanical components, external electrical components, and integrate accessory drive components, including creating a valid TDP and perform system fit-up. This effort would take approximately one year to complete.

$1.5M in cost to verify the overall system meets key performance parameters, industry safety standards and successful first article activities have been met. This effort would take approximately six months to complete.

$500K in cost to finalize the TDP, including build to print drawings, update components and system specifications, generate technical manuals and establish manufacturing processes. This effort would take approximately six months to complete.

The Total Reverse Engineering Cost is approximately $4.50M and includes a four year timeframe of completion.

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 Diesel Engine TDP. The Diesel Engine has a current average usage rate of 20 units each year. With a current unit cost of , and assuming 25% savings of per unit achieved through competition, the in annual savings would take over years to offset the estimated $4.5M cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

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.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to develop the competitive technical data required to make the Diesel Engine fully competitive. No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 26 August 2022 and was open for 15 days. No responses were received from the posting.

performed internet searches on 24 and 25 August 2022 searching other diesel engines that could meet the M400 SSL performance specification. Key words used were: Diesel, Engine, tier 3 engine, FPT engine, Fiat Powertrain Technologies F5C engine, 53kW, 296 fan. It was determined that no other companies produce a Diesel Engine that meets the same form, fit and function as the current Diesel Engine in the M400 SSL.

Some Research Links:

https://www.iveco.com/en-us/collections/pdfcollections/Documents/ENGINE%20TECHNICAL%20SPECIFICAT IONS.pdf https://www.fptindustrial.com/global/en/engines/off-road/construction/f34 https://spare.avspart.com/catalog/case/53735/39856/191985/ http://www.citroenet.org.uk/passenger-cars/michelin/gs/flat-4/engine.html https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rule-control-air-pollution-motor-vehicles-tier-3

9. Interested Sources: To date no additional sources have expressed interest in providing this item. No responses were received from the Sources Sought Notice posted on the SAM.gov website.

10. Other Facts: Procurement History:

Procurement History: The following buys were solicited and awarded as Other Than Full and Open Competition under FAR 6.302-1, only one responsible source and no other supplier or services will satisfy agency requirements.

1. Purchase Order SPRDL1-19-P-0054, awarded on 14 November 2018 to CNH Industrial America for a quantity of 21 each Diesel Engine units with a total dollar value of $148,045.80.

2. Purchase Order SPRDL1-18-P-0317, awarded on 17 April 2018 to CNH Industrial America for a quantity of 10 each Diesel Engine units with a total dollar value of $73,290.

3. Contract SPRDL1-17-C-0050, awarded on 14 December 2016 to CNH Industrial America for a quantity of 16 each Diesel Engine units with a total dollar value of $137,480.88.

4. Purchase Order SPRDL1-14-P-0045, awarded on 11 February 2014 to Badger Truck Center for a quantity of 9 each Diesel Engine units with a total dollar value of $102,167.55.

5. Purchase Order W56HZV-13-P-0200, awarded on 27 February 2013 to CNH Industrial America for a quantity of 5 each Diesel Engine units with a total dollar value of $47,089.05.

6. Purchase Order W56HZV-12-P-0341, awarded on 28 March 2012 to CNH Industrial America for a quantity of 4 each Diesel Engine units with a total dollar value of $37,671.24.

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.