JA_SPRDL124R0155_Redacted.pdf

SPRDL1-24-R-0155 (JA-00833)

Previous J&A:

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

This series engine is a heavy-duty diesel engine with fully integrated electronic control, the first of its kind at the time of development. The electronic control module is the most specialized component of the engine. The engine control is performed by the DDEC system, proprietary to Detroit Diesel. Detroit Diesel is now a subsidiary of Daimler Trucks North America. Engines with DDEC Level III utilizes electronic signals and offers enhanced engine control over an engine with a lower DDEC level (I or II), thus improving capability and performance of the engine. Engines with different DDEC levels are not directly compatible and would have different components and testing procedures. No vendor other than Detroit Diesel possesses the necessary technical data to program Electronic Control Modules to the correct DDEC level specifications.

Production of this engine was discontinued by Detroit Diesel in 2007. Since the engine has been discontinued, remanufactured engines became the only way to procure the exact engine that was initially tested and qualified. The Tank-automotive and Armaments Command (TACOM) Maintenance Team has decided that remanufactured engines are acceptable for this procurement due to the reasoning provided above and the operational need for engines to be supplied. This solution is preferable to modifying a different engine that is still in production to perform and mount in an identical manner as the currently approved engine. The Government does not have rights to the Technical Data Package (TDP) or specifications. This item is defined by the Government-owned TACOM drawing number 57K4728, which is a kit that consists of two items: the dressed engine PN 2272940U (CAGE Code 75Q65), and the shipping container PN 0-19095 (CAGE Code 94231). The Government-owned top-level kit drawing 57K4728 does not fully define the engine, which is why this item cannot be procured competitively.

There are no plans to increase competition for future procurements due to the reasons cited in this document. No contractors are currently in the process of being qualified as alternate sources of supply for this item. Currently, there are no planned efforts to qualify additional sources because the Government does not possess a fully defined and validated TDP for this item. The source of supply, Daimler Trucks, owns the detailed technical data regarding this item. Due to the lack of rights to the engine technical data, reverse engineering is the only resource for the Government to increase competition for this item.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a competitive TDP or qualify additional source(s) within a reasonable time frame. At the current average usage rate of six units each year, a current unit cost of $ , and assuming

% savings achieved through competition, the $ in annual savings would take over to offset the estimated $39.35M cost of reverse engineering the item and validating a competitive TDP or qualifying another source. A detailed breakdown of cost and schedule impacts is shown below.

Part Research & Development (design, development, production) – 24 months - $25M.

Reliability, Availability, and Maintainability Vehicle Testing (five vehicles at 5,000 miles/vehicle – 12 months - $3M.

North Atlantic Treaty Organization 400 Hour Test (three vehicles) – eight months

- $.75M.

Full Load Cooling Test (three vehicles) – four months - $.85M.

Cold Test (three vehicles) - six months - $7.25M.

Develop TDP – six months - $2.5M.

Find Additional Source – 12 months.

Total: $39.35M

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. Notices required by FAR

5.201 will be posted.

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.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

8. Market Research: Sources Sought Notice 2024-SPRDL1-24-R-0155 posted to SAM.gov on 10 July 2024 for 15 days. Three responses were received:

* BHPE LLC (CAGE 9SWS7) responded with an email to express interest and provided no details of its capability or interest in qualifying a product to become an approved source of supply. The process and contact information to become an approved source of supply was included in the Sources Sought Notice. The buyer acknowledged BHPE’s interest via email.

* American Fleet, Inc., (CAGE 6TET8) responded with an email touting its expertise in the remanufactured engine market. No details regarding its interest in qualifying a product to become an approved source of supply were provided. The process and contact information to become an approved source of supply was included in the Sources Sought Notice. The buyer acknowledged American Fleet’s interest via email.

* MTP Drivetrain, (CAGE 3WXD8) responded via email that it can supply this engine as Other Than New Material (OTNM) and claims to have past performance in supplying this NSN as a remanufactured engine, though not to DLA-WRN. The buyer acknowledged MTP’s interest via email and indicated that offers using OTNM will be evaluated.

In response to the eventual solicitation, vendors offering remanufactured engines will be required to submit an OTNM worksheet, which will, in part, be used to verify that the proposing vendor has the necessary technical data and ability to remanufacture the Detroit Diesel engine. Engineering will be consulted to review the OTNM worksheets and supporting documents to determine the proposing vendor’s capability to procure this remanufactured engine.

Computer-based market research was conducted by the Ground Vehicle Systems Center (GVSC) Project Engineer during May of 2020 and January of 2021. Heavy-duty truck diesel engines offered by Detroit Diesel, Caterpillar, and Cummins were evaluated. In summary, no engines available on the commercial market can match both the performance specifications and configuration of the sole-source part. The lack of a complete TDP and performance specifications for the sole-source part makes it difficult to ensure the validity of alternatives, but enough information is available to conclude that a drop-in replacement is non-existent, and significant modifications would have to be made to the vehicle if a different engine was selected for this procurement. As described earlier, and further explained below, TACOM and GVSC believe the best solution is to procure remanufactured engines of the same model and configuration that were initially tested and integrated on this vehicle.

Research conducted in June of 2024 identified several manufacturers who make products that appear to be similar to the engine used on the M1070 Base Tractor. The lack of a TDP or detailed drawings for the M1070 engine prohibit the engineer from knowing the exact specifications that must be met by a potential alternative. Similar features that other engines offer include engine size, comparable power/torque characteristics, materials, compression ratio, etc. However, the exterior features, including location of components, mounting patterns, and other critical features are specific to the sole-source component. Although other engines may perform similarly, aftermarket modifications would be necessary before installation on a M1070 Base Tractor. The current engine was selected by the Original Equipment Manufacturer specifically to fit onto this vehicle, and integration/verification testing was conducted for this reason. Selecting a potential alternative that was not specifically designed for this vehicle and was not properly tested results in a higher risk of issues once fielded.

Many heavy-duty diesel engines that are similar in performance to the Detroit Diesel Series 60 have not been manufactured for several years. These models include the Caterpillar 3406E, the Mack E7, and the Cummins NTC 400. Detroit Diesel’s subsequent engine, the DD15, is not a direct replacement, as upgrades in performance,