JA_SPRDL124R0040_Redacted (003)_Redacted.pdf
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- Redacted Justification & Approval (J&A) Federal contract opportunity
- Solicitation number
- SPRDL1-24-R-0040
About this file
This is a Justification and Approval (J&A) for Other Than Full and Open Competition issued by the Defense Logistics Agency – Land Warren (DLA-Warren) for procurement SPRDL1-24-R-0040. The procurement seeks to award a Firm-Fixed-Price contract to either Renk America LLC (CAGE 02978), BAE Systems Land & Armaments L.P. (CAGE 06085), or an approved offeror for the AVDS-1790-8CR Engine with Container, Shipping and Storage (NSN 2815-01-414-6821, Part Number 12366412). The total contract value is redacted, with a base quantity of 40 units and an option quantity of 40 units, for a total of 80 units to be used on the M88A2 Hercules recovery vehicle. The acquisition method code is 1 (Suitable for competitive acquisition for the second or subsequent time), and the acquisition method suffix code is B, indicating the part must be acquired from specified manufacturing sources per DoD-STD-100. Army Working Capital Funds will be used.
The J&A justifies the use of FAR 6.302-1 (Only One Responsible Source) authority, citing that no other supplies or services will satisfy agency requirements. Key justifications include: the Government lacks necessary intellectual property data rights for competitive re-procurement; the AVDS-1790-8CR engine is the only source that has completed NATO Standard Engine Laboratory Testing (AEP-5); a complete Technical Data Package (TDP) at a competitive build-to-print level does not exist; and reverse engineering costs are prohibitively expensive at approximately $101.7 million. Market research was conducted on December 8, 2023, exploring alternatives from Caterpillar and Cummins, but neither manufacturer produces drop-in solutions compatible with the M88A2 platform without substantial engineering modifications and qualification testing. Procurement history shows three prior awards under FAR 6.302-1 authority, dating back to 2000, with BAE Systems and L3 Technologies (subsequently acquired by Renk) as contractors. The justification was approved for acquisitions between $15 million and $100 million by Jamie Wiebusch (Competition Advocate) and Robert D. Johnson (Head of Contracting Activity) on October 23-25, 2024.
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SPRDL1-24-R-0040 (JA-00726)
Previous J&A: SPRDL1-20-R-0064
5. Reason for Authority Cited: The M88A2 Hercules is a recovery vehicle whose primary role is to extricate combat/tactical vehicles that have been damaged, stuck, overturned, or inoperable, as well as the vehicles crew.
The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.
The AVDS-1790-8CR Engine from BAE has met the North Atlantic Treaty Organization (NATO) requirement for successful completion of NATO Standard Engine Laboratory Test for Gas Turbine Engines AEP-5 and Diesel and Spark Ignition Engines, Allied Engineering Publication.
If another possible source of supply for this item were identified, qualification testing would be required.
A complete TDP of the Engine with Container, Shipping and Storage has not been developed for competitive use at a build to print level. P/N 12366412 is a kit drawing that includes the fully dressed engine with the engine shipping and storage container.
The installation of the final configuration components on the AVDS-1790-8CR engine assembly such as driven accessories, wiring, and upper oil-fill assembly is defined by specification control drawing 12364800. The actual engine drawing, 12477625, is a source-controlled drawing listing Renk, CAGE 02978 and BAE, CAGE 06085, as the approved sources. The Renk or BAE sourced AVDS-1790-8CR engine makes up more than of the cost of the Engine with Container, Shipping and Storage. Drawings 12366412, 12477625 and the primary specification RVX00970, which the AVDS-1790- 8CR engine is developed from, have changed from being BAE proprietary drawings to the Government having data rights. The actual complete engine drawings are not available, and the design is based on a performance specification. Currently the TDP consists of level II drawings and specifications which were not meant to support a competitive procurement for the Government because they are not fully defined. The specification refers to the Original Equipment Manufacturer, BAE, for test approval as well.
Ground Vehicle Systems Center (GVSC) Ground Vehicle Power and Mobility (GVPM) was previously consulted to evaluate the cost implications and risk of reverse engineering the engine. Their 2018 GVPM Reverse Engineering study estimated the cost to develop a competitive package for this item through reverse engineering to be $93M with an estimated to include fabrication and testing of the prototype hardware and releasing a validated level III TDP. Added to these costs and delays would be the cost and time to resolve durability degradation issues associated with Reverse Engineered components including the cost and time it would take to qualify another source as a result. 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 $3.3M (Reliability, Availability, Maintainability (RAM), Full Load Cooling, Cold test) and . For the Government to competitively procure in accordance with a performance specification, it is estimated that and $500,000 would be required just for the Government to evaluate the TDP for level III competitiveness as a specification control drawing.
. The expectation is that there will need to be extensive qualification requirements, derived from the RVX00970 specification, added to the drawing at an engine assembly level to prevent the risk of failure of this critical component. If a vendor other than BAE or Renk were to bid on the package, it would take and $3.5M to qualify that the vendor is meeting the engine qualification requirements prior to accepting deliveries to the Government. Because the Government remanufactures engines to support the field to reduce sustainment costs associated with buying new engines, an additional $5M and would be required to generate technical documentation and complete provisioning for a configuration other than the current configuration and would thus increase sustainment costs as well. There is also the potential for any vendor to purchase new engines from Renk to limit the configuration issues associated with this.
BAE and Renk are currently the only approved sources for this item.
Reverse Engineering
AMDF: $ 103,000 ~
Prototype: $ 752,000 ~
TDP: $ 6,650,000 ~
Component Bench Testing: $26,600,000 ~ Re-engineering: $52,300,000 ~ Final Qualification (NATO 400): $ 6,500,000 ~ Sub Totals $92.9M ~
Vehicle Level Testing RAM Testing of 5,000 miles: $ 750,000 ~ Full Load Cooling Test: $ 282,000 ~ Cold test: $ 2,250,000 ~ Sub Totals: $3.3M ~
New TDP Evaluation: $ 500,000 ~ New Vendor Qualification: $ 5,000,000 ~
GRAND TOTALS: $101.7M ~
8. Market Research: A Sources Sought Notice was posted to SAM.gov on 08 December 2023 and was open for 30 days.
Market research was performed by GVSC Engineering on 15 September 2023 by reviewing vendor catalogs and available product literature published by Caterpillar Inc.
and Cummins Inc. to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs. While these two sources manufacture engines that could theoretically be used as power-plant solutions in the M88 platform, they are not drop-in solutions and would require a great deal of engineering effort to integrate them into the current M88A2 vehicle platform. Additionally, neither Caterpillar Inc. nor Cummins Inc. currently manufacture an AIR-COOLED diesel engine with the power requirements similar to the current AVDS-1790-8CR engine for use on the M88A2. Finding the space-claim needed for the radiators, coolant-pump, and associated plumbing on the M88A2 platform is a primary challenge when looking at engine solutions from the manufacturers mentioned above. Further, since neither of these sources have produced this specific item for the M88A2 they have not completed the necessary AEP-5 testing to become a qualified source. Anniston Army Depot, Tecmotiv and Renk are all currently approved to rebuild the AVDS-1790-8CR engine, but only Renk and BAE are qualified as sources for new engines. While the Government rebuilds engines, the Government cannot compete with industry for production efforts of new components such as this. Since Renk and Tecmotiv are competitors, it is unlikely that Renk will sell engines to Tecmotiv to dress and containerize. Further the necessary reverse engineering of critical engine components by Tecmotiv is not viable due to the schedule constraints associated with this procurement.
Market Research links:
Website: https://www.cat.com/en_US/products/new/power-systems/industrial.html Keyword: Heavy Duty Diesel Engine Manufacturers Findings: While Caterpillar manufactures diesel engines for heavy duty applications, they are not tailored (fit and function) to be specifically used in the current space-claim of the AVDS-1790 8CR engine. There are geometry differences and the engine to transmission would need to be adapted to mate. Further, since this source has not produced this specific item for the M88A2 platform, they have not completed the necessary testing to become a qualified source.
https://cumminsengines.com/defense Keyword: Heavy Duty Diesel Engine Manufacturers Findings: While Cummins manufactures diesel engines for heavy duty applications, they are not tailored (fit and function) to be specifically used in the current space-claim of the AVDS-1790 8CR engine. There are geometry differences and the engine to transmission would need to be adapted to mate. Further, since this source has not produced this specific item for the M88A2 platform, they have not completed the necessary testing to become a qualified source.
9. Interested Sources: All interested sources are mentioned in Section 8 above.
10. Other Facts: Procurement History:
(1) Contract: SPRDL1-20-C-0211 Award Date: 15 October 2019 Contractor: L3 Technologies, Inc (CAGE 02978) (L3 subsequently acquired by Renk) Value: $2,864,547.18 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source
(2) Contract: W56HZV-04-C-0105 Award Date: 19 December 2003 Contractor: BAE Systems (CAGE 06085) Unit Price: $402,730 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source
(3) Contract: DAAE07-01-C-N030 Award Date: 08 December 2000 Contractor: BAE Systems (CAGE 06085) Unit Price: $342,624.24 Competitive Status: Limited Source Authority: 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: Associate Director, DEVCOM GVSC Sustainment Email:
Signature:
9/26/2024
X
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