JA00341_SPRDL121R0031_Redacted.pdf

SPRDL1-21-R-0031 (JA-00341)

No previous J&A is available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-21-R-0031

1. Contracting Agency: Defense Logistics Agency (DLA) - Land Warren (WRN).

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Oeco LLC, Commercial and Government Entity (CAGE) 02101, for National Stock Number (NSN) 6115-01-661-8547, GENERATOR, ALTERNATING CURRENT, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The NSN 6115-01-661-8547, Manufacturer part number 96354-3 / Government part number 12580181, GENERATOR, ALTERNATING CURRENT, is used on the M992A3 and M109A7. The deliverables for this 5 year Long Term Indefinite Delivery, Indefinite Quantity Contract are for a minimum guaranteed quantity of 16 each, with a maximum quantity of 400 each. The total estimated value of this contract is $ .

This acquisition is for the M992A3 and M109A7 three-phase Alternating Current (AC) high voltage, 70 Kilowatt (kW) generator, which powers the vehicle electrical systems, as well as charges the batteries. The generator is located in the hull of M992A3 and M109A7.

Acquisition Method Code (AMC): 4 - Acquire, for the first time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC): B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate Technical Data Package (TDP), data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

4. Authority Cited: The Statutory Authority permitting other than full and open competition for this effort is 10 United States Code (USC) 2304 (c)(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”.

5. Reason for Authority Cited: The Generator is a critical component of the M109A7 and M992A3 vehicles’ charging system which operates in a unique military weapon system. The performance of the generator is specialized to provide sufficient power output to the batteries of the vehicle which ultimately supplies power for starting the engine and all the electrically powered devices on the vehicle. This allows the M109A7 and M992A3 to operate for long periods of time in extreme conditions and does so within the constraints of a unique space claim.

This generator is a mission essential item that must function predictably and properly within the M109A7 and M992A3 vehicles. As of the date of this document, Oeco LLC is the only company that offers a product that has passed these tests. Additionally, Oeco LLC is listed as the only approved source on the TDP. Oeco LLC has the rights to this generator. The Government has not identified additional sources to enable competitive procurement. As detailed in the following paragraphs, procurement from any other source will result in substantial duplication of cost that is not expected to be recovered through competition.

The Government does not have complete build to print TDPs. The Government does not have proprietary rights. Oeco LLC is not willing to sell the rights.

Oeco is the only qualified source to meet unique military testing for application on the M992A3 and M109A7. A few of these specific tests that Oeco has met are listed below.

• ISO 1940-1:2003 -Mechanical Vibration. Balance Quality Requirements for Rigid

Rotors

• IEC 60034-18-41- Qualification and Type Tests for Type 1 Electrical Insulating

Systems Used in Rotating Electrical Machines Fed from Voltage Converters

• MIL-STD-810G - Environmental Engineering Considerations and Laboratory

Tests

Oeco has also shown through test and integration that their part meets the required modular power system component specification #12578471 as well as conformance to the requirements of the military unique interface control documents #12580182 and generator component specification #12580183 which includes gunfire, mobility and rail impact shock.

This item is critical for the functionality of the vehicle. The cost to either reverse engineer the part or develop a new part is estimated at $3.5M; developing a TDP for this item would take 60 months. Based on similar projects, the cost to develop a build to print competitive package for this item through reverse engineering are estimated below:

Reverse Engineering (RE) Activities

Delay Cost

Reverse Engineer and Develop Drawings 30 months $2M Develop Special Tooling 6 months $1.0M Fabricate Prototypes 12 months $2.0M Testing 12 months $8.0M Total 60 months $13M

August 2020 and was open for 15 days. No responses received.

Market research was performed by GVSC Sustainment Engineering in August 2020 to review cost and competition considerations, reviewing vendor catalogs and available product literature 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.

A web search was conducted using the keywords, "Three-phase generator with AC output”, "Nominal value of 610 Volts direct current (Vdc) and supplies up to 70kW of power.”, "Liquid cooled generator with Water-Ethylene Glycol (WEG)" and the websites included:

https://apelectric.com/liquid-cooled-generator-kw-ratings/70kw-generators-85kw-generators https://apelectric.com/generac-qt07068-commercial-series-70kw-generator/

During the market research, there were numerous options for generators. Closely examining to the requirements, size, military standards, testing and integration, the Oeco generator was the only one that met the Government's unique requirements and integration for the vehicles. Generac’s QT07068 generator supplies the same 70kW power and three-phase output, but unfortunately it does not provide the same nominal Vdc value as the Oeco generator. The Generac generator also does not meet the military standard, size requirement, integration, and various testing specific to the M109A7 and M992A3 vehicles.

BAE was the prime contractor for the original procurement. Oeco is the only approved and qualified source of supply that has met all test and verification. The Government has purchased the generator from BAE, but as the OEM (Original Equipment Manufacturer) and configuration manager of the technical data, BAE procured the generator from Oeco per the technical data as the only approved manufacturer.

Contacted the OEM to purchase the intellectual property with a negative response.

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

10. OTHER FACTS:

Contract number: SPRDL1-19-C-0216 Award date: 19 September 2019 Contractor: BAE Systems (CAGE: 076M6) Contract Value: $4,383,724.32 Competitive Status: Full and Open for this procurement, originally solicited as a Small Business Set Aside. No offers received. There were no other historical procurements

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for this part in DLA.

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.

Name:

Title: Division Chief Email:

Signature:

2/24/2021

12. Requirement Certification: I certify that the supporting data under cognizance which are included in the justification are accurate and complete to the best of knowledge and belief.

Name:

Title: Director, Fires & Infantry Support Email:

2/23/2021

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

This determination will be based on the results of a detailed cost and or price analysis.

The contractor will be required to submit certified cost and pricing data as the expected value of this procurement falls within the threshold. This item is non-commercial.

Name: Mahlmeister, Jeffrey J CIV DLA LAND AND MARITIME (USA) Title: Contracting Officer Email: Jeffrey.Mahlmeister@dla.mil

Sign ed by: MAHLMEISTER. JEFFREY. J. 1288587244

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

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Name: Mahlmeister, Jeffrey J CIV DLA LAND AND MARITIME (USA) Title: Contracting Officer Email: Jeffrey.Mahlmeister@dla.mil

Sign ed by: MAHLMEISTER. JEFFREY. J. 1288587244

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Approval Authority for Acquisitions Equal to or Greater than $750,000, but Less Than $15M

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. NOUN: GENERATOR, ALTERNATING CURRENT

b. NSN: 6115-01-661-8547

c. Minimum Long Term Contract (LTC) Quantity: 16 each

d. Minimum Estimated Total Value: $

e. Maximum LTC Quantity: 400 each

g. Maximum Estimated Total Value: $

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

SHEARER.MARY. Digitally signed by

X E.1250702449

SHEARER MARY.E.1250702449

Date: 2021.03.17 10:09:07 -04'00'