A11_-_SPRBL116Q0005_Redacted.pdf

For Official Use Only Source Selection Information – See FAR 2.101 & 3.104 SPRBL1-16-Q-0005

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRBL1-16-Q-0005

1. Contracting Activity: DLA Land at Aberdeen 6001 Combat Drive Room C1-301

APG, MD 21005-1846

2. Description of Action Being Approved:

This Justification and Approval (J&A) supports a solicitation using other than full and open competition procedures for a five-year base period with no options, Firm-Fixed-Price, Indefinite-Delivery/Indefinite- Quantity (ID/IQ) supply contract with DEUTZ AG (CAGE code: D2689). This requirement is for the production and delivery of three National Stock Numbers (NSNs). The guaranteed minimum for this contract will be . The maximum contract value is . This requirement is for commercial items; therefore, the procedures outlined in FAR Subpart 13.5, Test Program for Certain Commercial Items, in accordance with 14 U.S.C. 1901. Army Working Capital Funds will be used for this effort.

3. Description of Supplies:

The following three reparable spare parts are related to this acquisition, which supports the Maintenance and Sustainment of the PATRIOT Electric Power Plant (EPP) III:

The EPP III is a self-contained, mobile electric power plant that consists of two German-manufactured 150kW/400Hz diesel engine-driven generator sets and associated equipment, including a power distribution unit, grounding system, fuel tanks and distribution system, and cable reels with power and control cables. The EPP III is unique to the PATRIOT Missile Defense System (MDS) and powers its Radar Station (RS) and Engagement Control Station (ECS). Without the power generated by the EPP III, the PATRIOT MDS cannot function. PATRIOT MDSs are being used in overseas contingency operations, and must be maintained at a 90% readiness level as mandated by Army regulations.

Deutz (CAGE: D2689) is the Original Equipment Manufacturer (OEM) of these parts1, which were selected for use in the EPP III to meet the US Army and PATRIOT performance requirements of the EPP III. These parts are reparable spares required to maintain existing PATRIOT 150 kW Generator Sets.

The 150 kW Generator Sets are driven by an 8-cylinder model BF8L513 diesel engine with a continuous output of 186 kW at 2182 RPM which was selected specifically in the design for its ability to meet the US Army requirements. The Engine Block, Diesel is the core of the engine assembly that contains the combustion chamber where the fuel combustion is transformed into mechanical energy driving the

1 The previous J&A identified Lechmoteron as the OEM. This is incorrect. Lechmoteron was the OEM for several parts associated with the previous acquisition, but not for these parts. Deutz is identified as the OEM in WebFLIS and through market research.

Nomenclature P/N NSN Est. Annual QTY Est. 5 yr. Cost

PUMP, FUEL, METERING AND

DISTRIBUTING

4189268 2910-12-346-1273 6

TURBOCHARGER, ENGINE 4183618 2950-12-345-6733 5

ENGINE BLOCK, DIESEL 4187946 2815-12-345-6490 10

engine’s crankshaft. The Pump, Fuel, Metering and Distributing provides direct fuel injection into the engine’s cylinders to produce combustion driving the engines crankshaft which drives the main generator assembly producing electrical power for the RS and ECS loads. The Turbocharger, Engine is driven by the engine’s exhaust re-introduced into the combustion chamber to increase the power output and efficiency of the engine.

4. Authority Cited: 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 Agency Requirements.

5. Reasons for Authority Cited: The sole approved manufacturing source is DEUTZ AG (CAGE code:

D2689). The Acquisition Method Code is 3, which per DFARS PGI 217.7506 states that the NSN is being acquired for the second or subsequent time and should be acquired directly from the manufacturer.

The Acquisition Method Suffix Code (AMSC) is C which DFARS PGI 217.7506 states that the part requires engineering source approval by the design control activity in order to maintain the quality of the spare parts. Currently, only Deutz AG and its certified distributors are approved engineering sources for these spare parts.

Based on market research, DEUTZ AG is the sole source for these items and only DEUTZ AG’s spare parts meet the Government’s requirements. The Government does not possess technical data (drawings or specifications) that completely define form, fit, and function of the items being procured. Additionally, the form, fit, and function of the EPP III and its spare parts are not defined in any nationally recognized industry standard or specification. Use of any other source’s spare parts would require additional testing and redesign since any other source’s spare parts would not be compatible with existing EPP III engines.

The introduction of a new source’s spare part into the existing engines would require it to meet the existing form, fit, function, and interface of Deutz’s spare parts. It is estimated, based on the CECOM Tactical Quiet Generator Set re-engine program circa 1996, that the cost to re-engine the EPP III or qualify new components would require up to a $10M investment which significantly exceeds the estimated price of this procurement, and is not anticipated to be recovered through competition (tentative phase out is estimated between 2040-2048). Based on the life expectancy of this system and current replacement rate of parts, the remaining total expenditure for these items would be between $10M to $15M. The cost to qualify new components would not be anticipated to be recovered within those parameters. The EPP III parts must be standardized so that the same models are in the field to ensure interchangeability and effective operation of the PATRIOT MDS, and to enable interchangeability of maintenance support.

6. Efforts to Obtain Competition: This is a proposed, non-competitive, follow-on acquisition of supplies previously awarded on a non-competitive basis (W15P7T-11-D-A201). The previous justification recommended that the Government continue to conduct market research to ascertain if there are any changes in the market place that would enable future actions to be competed. These efforts were completed through market research conducted in anticipation of this acquisition.

Technical experts for the U.S. Army’s Communication-Electronics Command (CECOM) issued a Sources Sought announcement through the Government Point of Entry (www.fbo.gov) on March 19, 2015. The announcement required interested parties to respond by April 2, 2015. Results of the sources sought announcement are located in the market research section of this document.

The contract specialist has conducted periodic searches since March of 2015 using internet resources, including, i2Log, Haystack, and WebFLIS, checking by NSN, part number, and industry type. The most recent internet research conducted by the contract specialist was during February of 2016. To date, no other viable competition has been identified through any of these avenues.

I hereby certify that the requirements which form the basis of this justification are accurate and that this justification is accurate and complete to the best of my knowledge and belief.

Date

Item Manager

As the Contracting Officer, I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

JUSTIN RUTH Date Contracting Officer

I have reviewed and hereby approve this justification.

BRADLEY HOLTZAPPLE Date Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer ( X ) $700,000 - $13,500,000 Competition Advocate ( ) $13,500,000 - $93,000,000 Head of Contracting Activity ( ) Over $93,000,000 Senior Procurement Executive

10 Mar 2016

10 March 2016

11 March 2016

Date: 2016.03.10 12:25:34 -05'00'

RUTH.JUSTIN.D

OUGLAS.10418

94870

Digitally signed by

RUTH.JUSTIN.DOUGLAS.1041894870

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=RUTH.JUSTIN.DOUGLAS.104189

Date: 2016.03.10 13:50:31 -05'00'

HOLTZAPPLE.BRAD

LEY.A.1198214309

Digitally signed by

HOLTZAPPLE.BRADLEY.A.1198214309

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=HOLTZAPPLE.BRADLEY.A.1198214309

Date: 2016.03.11 07:41:58 -05'00'