LSJ W56HZV-22-R-0156 Redacted 21 MAR 2023.pdf

Department of the Army Sole Source Justification for Purchases using

Simplified Procedures for Certain Commercial Items

1. Contracting Activity: The Army Contracting Command-Detroit Arsenal (ACC-DTA), MI is the procuring activity for this action.

2. Description of the Supply or Service Purchased:

Brand Name: Delco Remy Noun: Electrical Starter Engine

NSN: 2920-01-330-2061

Part: 10478800 Estimated Maximum Quantity: 865 EA Maximum Guaranteed Minimum Quantity: 24 EA Yearly Quantity Targets: 291 EA in first year and 100 EA all four years thereafter Total Estimated LTC Value: $507,755.00 Estimated Unit Price: $587.00

3. Dollar Amount: The estimated total value of the five-year, firm-fixed price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) contract is $507,755.00. The type of funds to be utilized is Army Working Capital Funds (AWCF).

4. Authority Cited: The statutory authority permitting other than full and open competition using simplified procedures for certain commercial products in sole source (including brand name) acquisitions is 41 United States Code (U.S.C.) Section 1901, as implemented by FAR 13.500(a) and 13.501(a)(1)(i). Specifically, FAR 13.500(a), "authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million, including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial products or commercial services."

Moreover, FAR 13.501(a)(1) allows for, "sole source acquisitions (including brand name)."

5. Reason for Authority Cited: This procurement is restricted for brand name, Delco Remy, for NSN: 2920-01-330-2061. All authorized Borg Warner distributors may compete for this procurement.

The Delco Remy brand was acquired by Borg Warner, the sole owner of the technical data package (TDP) and the technical data rights needed to fabricate the Electrical Starter Engine. The Government does not own the proprietary TDP rights required to manufacture the Starters. Delco Remy, at its own cost, developed, tested, and obtained Government approval for the Electrical Starter Engine . The Government did not fund Delco Remy’s efforts in developing and testing this item.

Equipment capabilities, limitations and vulnerabilities.

Equipment Capabilities.

The efforts required to compete this item or reverse engineer are simply not cost efficient.

The consequential time delay, derived from similar requirements, of to reverse engineer, develop and test the new design, and qualify a new vendor would prohibit delivery of the Electrical Starter Engine in a time frame that would satisfy the Government's needs.

6. Market Research: According to market research conducted by the ACC-DTA Contract Specialist via the Internet on 06 July 2022, there is only one manufacturer associated with this NSN and part number. This brand name, source-controlled manufacturer is Borg Warner.

Internet based market research was obtained via the NSN-Now, Haystack, FPDS, FedLog Batch, and other contracting sites.

A Sources Sought Notification was posted to SAM.gov from 06 July 2022 to 19 July 2022.

One company, VSE Corporation, stated it was interested in this opportunity and can acquire

Readiness vulnerability and detailed budget data.

Detailed budget data.

Detailed budget data.

Critical maintenance information.

Readiness and vulnerability assessment.

Readiness.