JA - SPRDL125R0090_Redacted.pdf
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- Redacted Justification and Approval (J&A)
- Solicitation number
- SPRDL1-25-R-0090
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This document is a Justification and Approval (J&A) for Other Than Full and Open Competition for a solenoid valve procurement by the Defense Logistics Agency - Land Warren (DLA-WRN). The contract is for a Firm-Fixed-Price award to Allison Transmission Inc. for 104 solenoid valves (52 base quantity and 52 option quantity) used in the M113A3 Family of Vehicles transmission, with a National Stock Number of 4810-01-198-0504. The procurement is being conducted under 10 U.S.C. 3204(a)(1), citing that Allison Transmission is the only source with the proprietary technical data necessary to produce the item, having developed and tested the valve at their own expense.
Market research was conducted, including a Sources Sought Notice and searches of various websites and small business databases. While 24 potential small businesses were identified, none could produce a direct drop-in replacement without significant integration and validation testing, which would cost approximately $1,000,000. The document notes that Clarke Power Services Inc. and BHPE LLC showed initial interest, but Clarke Power Services is actually a distributor for Allison Transmission. The contract justification emphasizes that reverse engineering the valve would be prohibitively expensive, estimated at $1.75M, and would not be cost-recoverable through subsequent competition.
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SPRDL125R0090 (JA-00931)
Previous J&A: SPRDL1-19-R-0092
JUSTIFICATION AND APPROVAL
FOR OTHER THAN FULL AND OPEN COMPETITION
SPRDL125R0090
1. Contracting Agency: Defense Logistics Agency - Land Warren (DLA-WRN).
2. Description of Action: DLA-WRN proposes to award a New Firm-Fixed-Price, with a 100% option contract to ALLISON TRANSMISSION INC, Commercial and Government Entity (CAGE) 73342, for National Stock Number (NSN) 4810-01-198- 0504, Solenoid Valve, Part Number 23017931, using Army Working Capital Funds
(AWCF).
3. Description of Supplies/Services: The Solenoid Valve is used on the M113 Family of Vehicles (FoV) transmission. The deliverable for this contract is for a base quantity of 52 each, with an option quantity of 52 each, making a total quantity of 104 each. The total maximum value of this contract is $ .
Acquisition Method Code (AMC):
3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.
Acquisition Method Suffix Code (AMSC):
D - The data needed to produce this item from additional sources is not physically available.
4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1. Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.
Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.
5. Reason for Authority Cited: No other company has access to the proprietary technical data owned by Allison Transmission that is needed to properly produce this item. Allison Transmission is the sole owner of the drawings and technical data rights for Solenoid Valve, part number 23017931. The government does not own proprietary rights to the technical data that would be required to produce a competitive Technical Data Package (TDP). Allison Transmission has developed, tested and obtained Government approval for this item for application to the M113 vehicle at their own cost.
The Government did not fund the contractor’s efforts in developing and testing this item.
Clarke Power Services Inc. CAGE: 1SHN6
BHPE LLC. CAGE: 9SWS7
The source approval process was sent to both contractors that showed interest.
Clarke Power Services Inc. is not interested in becoming an approved source. Clarke Power Services Inc. is a distributor for Allison Transmission Inc.
DEVCOM Engineering completed web-based market research on 24 October 2024, searching for “Solenoid Valve”. The following websites were visited and reviewed:
www.gwlisk.com www.newark.com www.theleeco.com www.ussolid.com
Although these manufacturers have the capability to produce Solenoid Valve Assemblies, none of them currently produce a drop-in replacement for NSN 4810-01- 198-0504 that would be compatible with the Cross Drive Transmission, Model X200-4A, used in the M113A3, they would require significant integration work to be performed and would still require validation testing to be performed. The cost of validation testing and subsequent vehicle and transmission refurbishment alone ($1,000,000) would preclude use of any other Solenoid Valve Assembly besides Allison Transmission Inc. part number 23017931, even before considering integration costs.
The Small Business Administration site was searched using the NAICS 332912 and keyword: Valve, Solenoid (Manufacturing and ISO 9000 Series selected). This search resulted in a potential of 24 small businesses who could provide this item from the approved source. The 24 businesses are classified as the following:
Small Business: 20 Women Owned Small Business and HUBZone: 1 Service Disabled Veteran Owned Small Business: 1 Women Owned Small Business: 2
Any interested source will be provided the information on becoming an approved source through the Source Approved Process (SAP).
In accordance with FAR Part 8 Required Sources of Supplies and Services, a search was made to find required sources of supply for this requirement. The following is the result of this search:
a. Inventories from requiring agency: There is no excess inventory available for this item.
b. A search of the Interagency Contract Directory did not show any contracts available for external agencies to order against.
c. UNICOR / Federal Prison Industry (FPI) does not list the Federal Supply Code (FSC) 4810 and is not a mandatory source of supply.
d. A search on Ability One.gov was made for this item and no results were found.
e. There are no opportunities listed under the Federal Supply Schedule (FSS) from the General Services Administration (GSA).
1. Contract: SPRDL1-20-C-0008
2. Award Date: 10/10/2019
3. Contractor: Clarke Power Services, Inc. CAGE:1HSN6
4. Contract Value: $589,367.52
5. Competitive Status: Other than Full and Open Competition Authority Cited: 10 U.S.C. 304(c)(1), Implemented by FAR 6.302-1
6. J&A SPRDL1-19-R-0092 is associated with the contract mentioned above. Allison Transmission Inc. (CAGE: 73342) developed, tested and obtained Government approval of this item for application to the M113A3 Family of Vehicles at the contractor’s expense. The USG does not have the right to the technical data to produce a TDP.
7. The previous procurement, SPRDL1-15-C-0019, was solicited and procured as a Limited Source and was restricted to Allison Transmission, Inc. (CAGE: 73342). J&A SPRDL1-14-R-0022 is associated with SPRDL1-15-C-0019.
9. Interested Sources: To date, no additional sources have expressed interest with the exception from what’s listed above in Section 8, Market Research.
Any additional interested vendor will be provided with information on becoming an approved source through the Source Approval Process (SAP).
10. Other Facts: Procurement History:
Contractor: Clarke Power Services Contract Number: SPRDL1-20-C-0008 Award Date: 10.10.2019 Contract Value: $589,367.52
Contractor: Allison Transmission Contract Number: SPRDL1-15-C-0019 Award Date: 19.11.2014
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