JA_SPRDL123R0157_Redacted.pdf

SPRDL1-23-R-0157 (JA-00704)

Previous JA-00552 SPRDL1-23-C-0050 in that they demonstrated to the Army that the LCRTF, and therefore the components were ready for fielding and incorporation into the Army�s supply distribution mission.

The diesel engine is the only item qualified and approved for the LCRTF and is a reciprocating internal combustion engine 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 cylinder head and oil pan. The LCRTF was procured by the Government through a performance specification where the selection of its subcomponents was left to the end item manufacturer as part of their internal design effort. The LCRTF is a vital part of the Army�s supply distribution mission, and delays of diesel engine would severely impact the LCRTF user�s mission, resulting in forklifts becoming non-mission capable. Selecting a Diesel Engine that has not met this rigorous qualification by the OEM and verification through continual, efficient field use on the LCRTF platform, will result in degraded system performance and mission effectiveness.

This would seriously impact the Army�s capability to enter, load and unload International Organization for standardization (ISO) shipping containers and load and unload tactical vehicles containers as part of its supply distribution mission. Associated with this lack of capability would be a shortage of supplies that are to be delivered to soldiers deployed in the field.

The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.

The diesel engine is not a feasible candidate for the reverse engineering as it is a component that has already been designed by an established 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 United States 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 will cost approximately $4.5 Million 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:

� One million in cost to obtain the diesel engine from IRTC, perform teardown, analysis, and testing. This effort would take approximately two years.

� $1.5 million in cost to design hardware, fabricate engine castings, internal and external mechanical components, external electrical components, and integrate accessory drive components, including creating a valid TDP and perform system fit up.

� $1.5 million in cost, to verify through qualification and durability testing, that the overall system meets key performance parameters

(KPPS) and key system attributes (KSAs), industry safety standards, and successful first Article activities have been met. This effort would take approximately one year 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.

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 in a reasonable amount of time. The diesel engine has a current average usage rate of 29 units each year. With a current unit cost of each, and assuming 25% savings of in annual savings would take over to offset the estimated $4.5 million 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, 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 SAM.gov on 13 July 2023, and was open for 15 days. No responses were received.

GVSC CE/MHE Team System Engineer performed market research on 28 June 2023 by reviewing three engine manufacturer websites and catalogs. Part number EP- 0011486 and NSN 2815-01-622-3891 were used as key word terms in the search field for all the below websites and catalogs:

Kubota Engines � A search on https://www.kubotaengine.com using the above part number and NSN yielded no results.

Cummins Inc. � A search on https://www.cummins.com using the above part number and NSN yielded no results.

Perkins- A search on http://www.perkins.com using the above part number and NSN yielded no results.

Caterpillar � A search on the Caterpillar website, Cat® Parts Store (parts.cat.com) using the above part number and NSN yielded no results.

The research revealed no new sources that manufacture a product that can be used as a replacement for the LCRTF Diesel Engine assembly.

The GVSC CE/MHE Team System Engineer also completed an additional search using the Google search Engine with the part number and NSN which yielded no additional sources for the LCRTF diesel engine assembly.

The Contracting Officer made the determination that the diesel engine is a commercial item based on procurement history. The prior award was made using FAR Part 12 procedures and the award is precedent setting in accordance with DFARS case 2020- D033 and DFARS 212.102(a)(ii)(A).

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

10. Other Facts: Procurement History:

Contract: SPRDL1-23-C-0050 Award Date: 13 April 2023 Contractor: Independent Rough Terrain Center Competitive Status: FAR 6.302-1 Only One Responsible Source

Contract: SPRDL1-20-C-0122 Award Date: 27 March 2020 Contractor: Independent Rough Terrain Center Competitive Status: FAR 6.302-1 Only One Responsible Source

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

Name:

Title: Division Chief Email: