Redacted_J A_SPRDL1-15-R-0429_.pdf

SPRDL1-15-R-0429

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency – Warren (DLA – Warren) is the procuring activity for this action. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, "Only One Responsible Source and no other supplies or services will satisfy requirements."

PART I - Description of Item Required:

a. NOUN: Turbo Supercharger

b. QUANTITY: 61

OPTIONAL QTY:61

TOTAL QTY: 122

c. NSN: 2950-01-386-1566

d. MPN: 4025019

e. VEHICLE SYSTEM: M2/M3 Bradley

f. ESTIMATED UNIT PRICE: $2,000.37

g. ESTIMATED VALUE: $122,022.57

ESTIMATED OPTIONAL VALUE: $122,022.57

ESTIMATED TOTAL VALUE: $244,045.14

h. PRON NUMBER: EH56E412EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm-Fixed-Price

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above item. The only approved source for the above item is:

a. Contractor Name: Cummins Engine Inc Cage:15434 Part Number:4025019

2. Reasons the item is not suitable for full and open competition:

a. Status of the Acquisition Data:

Cummins Engine Inc is the sole owner of the drawings and technical data rights for turbo supercharger PN 4025019. The government does not own proprietary rights to the TDP that would be required to produce a competitive TDP. The above identified supplier has developed, tested and obtained Government approval for this item for application to the Bradley Vehicle system at their own cost. The Government did not fund the contractor’s efforts in developing and testing this item.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this

Procurement:

Turbo Supercharger part number 4025019 is used on the Bradley engines. It converts waste energy from the exhaust manifold into compressed air, which it pushes into the engine. This allows the engine to produce more power and torque and improves the overall efficiency of the combustion process. It is an integral part of the vehicles mobility and survivability system. In order to qualify additional vendors, a significant amount of time and money would be necessary to reverse engineer, procure and test additional prototypes before releasing the TDP. This delay would severely impact the availability of the Turbo Supercharger in the field. This item is critical to the Bradley vehicles’ readiness

Estimated cost to reverse engineer the Turbo Supercharger: $2,500,000

Estimated time to reverse engineer the Turbo Charger: 2.5 years

Estimated cost to perform RAM vehicle testing (5000 miles) - 3 vehicles at $750,000 per vehicle: $ 2,250,000

Estimated time to perform RAM vehicle testing: 2 years

Estimated cost to develop a Technical Data Package: $ 600,000

Estimated time to develop a Technical Data Package: 1 year

The above timing and cost estimates are based on the assumption no issues arising during the development and testing phases. With the complexity of Turbo Supercharger and insuring it works with the V903 Engine this scenario seems unlikely and any reasonable estimate would include the possibility of problems arising.

c. Demonstration of Approved Contractor's Unique Qualifications:

Cummins is the original equipment manufacturer (OEM) for the Turbo Supercharger and has the manufacturing capability to produce, repair, and remanufacture the turbo charger. This manufacturing capability includes the required labor skills, proprietary technical data and processes, contractor-owned facilities (including plant equipment), and production/remanufacture (REMAN) techniques.

The current supplier has qualified in accordance with all the necessary test requirements and performance parameters. The subject component PN 4025019 is installed in the Bradley vehicle to provide the necessary horsepower so that the vehicle can meet system level performance requirements such as vehicle speed, etc. A failure of the Turbo Supercharger under battlefield conditions could damage the vehicle’s engine, thus rendering the vehicle unable to proceed with its mission function. The approved source identified above has demonstrated the ability to establish and maintain the processing required to produce this item.

d. Efforts to Qualify Additional Suppliers for future procurements:

At this time, there are no current or planned efforts to qualify additional sources due to the fact that there is no technical data available for PN 4025019, Turbo Supercharger, nor are there any funds available to conduct the extensive, costly, and time consuming qualification testing requirements. Furthermore, any new source would be required to pass extensive validation testing of this item as those produced by the current vendor. The additional time required for these actions would prohibit delivery of the Turbo Supercharger in a time frame that would satisfy the Government's needs. Contractors interested in producing this item can seek approval through the Source Approval Program with the Competition Advocates Office.

e. Market Research: TARDEC performed an informal search of the internet and catalogs that did not yield any turbos that would work with the V903 Engine.

This item “Turbo Supercharger” PN 4025019 does not appear on the Advanced Procurement Planning List (APPL) July 2014. It does appear on the Competition Advocate Shopping List (CASL) dated July 2014.

On 22 September 2015, A Sources Sought Synopsis has been requested. To date, no additional contractors have expressed an interest in this item.

3. The POC for this action is ______________, Engineer, ______________.

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief.

Name: ______________ Title: Team Leader Heavy Combat Vehicle Team Signature: //s// Date: October 20, 2015

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH56E412EH as to required quantities and delivery schedules are accurate and complete.

Name: ______________ Title: Item Manager Signature: //s// Date: May 8th, 2015

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Name: ______________ Title: Team Leader Signature: //s// Date: May 8 2015

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-15-R-0429. It is proposed to negotiate a Firm Fixed-Price contract with Cummins Inc or one of its authorized dealers - distributors for their part number 4025019. This procurement is restricted to Cummins, Inc who developed, tested and obtained Government approval for its Turbo Super-charger. This company owns the proprietary data, which would be needed for competitive acquisition.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source(s), every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is ______________,Contract Specialist. OFFICE SYMBOL:

ZGAAB, Ext. ______________.

5. Fair and Reasonable Determination I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on FAR 15.404. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Karen Kaczorowski //s// Title: Contracting Officer Signature: //s// Date: 2015 Oct 21

PART V - Legal Concurrence

Concur: // ______________// Date: 10/22/2015