JA_SPRDL114R0060_Stator_Redacted.pdf

SPRDL1-14-R-0060

CMO Control Number:

Defense Logistics Agency Land Warren

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

Defense Logistics Agency Land 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: STATOR, ENGINE GENERATOR

b. BASE QUANTITY: 58 100% Option Quantity: 58

c. NSN: 2920-01-046-1718

d. MPN: 1587423-1

e. VEHICLE SYSTEM: M88A2

f. ESTIMATED UNIT PRICE: $5,207.01

g. ESTIMATED VALUE: $302,006.58 VALUE With 100% option: $604,013.16

h. PRON NUMBER: EH36E138EH

i. TYPE OF FUNDS: Army Working Capital Fund (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(s) Name: Honeywell International Inc Cage: 64547 Part Number: 1587423-1

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

a. Status of the Acquisition Data:

The government does not own a complete technical data package for stator, engine generator as this item is a spare part identified on the M88A2 generator TDP that is source controlled to Honeywell International Inc. The generator TDP does not provide adequate dimensional or performance requirements to competitively procure the stator, engine generator. Honeywell International Inc developed, tested, and obtained Government’s approval of this item for application to M88A2s AVDS1790-8CR engine at their own cost. Government did not fund their efforts in developing and testing this item.

Additionally, Government did not fund them to prepare fully detailed TDPs after approval. As such, Honeywell is sole owner of the drawing packages and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

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

(1) Funds are not available to acquire the data necessary to support a competitive acquisition. A significant amount of time and money would be needed to reverse engineer, procure and test prototypes, and release the design. This delay would severely impact the availability of the stator/generator for repair of the AVDS1790-8CR engines. We estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $2.0 million and could require an estimated delay of at least 24 months to include fabrication and testing of the prototype hardware, and releasing a validated TDP. Added to these costs and delays would be the costs and time involved to test and qualify another source. Qualification and 400 hr NATO (NATO Laboratory Test for Diesel and Spark Ignition Engines AEP-5 Allied Engineering Publication) durability testing would be required to prove out this item manufactured by a new source(s) at an estimated cost of additional $750K and a delay of 12-18 months. To do otherwise would be a high risk as a premature failure of this item in the field could result in an extensive loss of the equipment. Testing could also surface latent defects that could adversely impact the readiness of the equipment that could adversely impact the readiness of the equipment and Operation and Support (O&S) costs.

(2) The Government would not be able to recover, through subsequent competition, the additional costs involved to allow the procurement to become competitive.

(3) If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least 24 months would occur. This delay would adversely impact the Army’s readiness rate and Operational and Support (O&S) costs.

(4) The stator is a spare part to the source controlled generator used on the M88A2 AVDS1790-8CR engine. The government owns limited technical data on the generator and limited configuration control could cause a significant risk that any changes made to the generator by Honeywell International could make a reverse engineered or 2nd source stator incompatible with the generator and therefore obsolete.

c. Demonstration of Approved Contractor's Unique Qualifications:

The item to be procured is a critical component of a highly specialized engine assembly which operates in a unique military weapons system. The approved source of the item to be procured has demonstrated the ability to establish and maintain the processing required to produce the item to be procured. In addition, the approved source’s item has met the NATO requirement for successful completion of NATO Laboratory Test for Diesel and Spark Ignition Engines AEP-5, Allied Engineering Publication while operating in an AVDS1790-8CR engine or equivalent. The AVDS1790-8CR is a 1050 horsepower (Hp) engine and is required for item testing due to its usage in the M88A2 HRV. This test is required for components which are critical for engine/vehicle operation and crew safety.

d. Efforts to Qualify Additional Suppliers for future procurements:

Due to the critical nature of this item, it is required that the item meets the NATO requirement for successful completion of NATO Laboratory Test for Diesel and Spark Ignition Engines AEP-5, Allied Engineering Publication while operating in an AVDS1790-8CR engine or equivalent. This requirement must be accomplished prior to contract award. The amount of time required to complete the above requirement related to the assembly of an engine with the supplier’s item, operational testing of the supplier’s item in the engine and engine disassembly and examination of the supplier’s item would cause unacceptable delays (12 months) in fulfilling the agency's requirements. A new source would also require a tooling adjustment and the development of new and extensive processing procedures would result in additional delays of up to 12 months. In addition, qualifying a new source would require an expenditure of funding that is not presently available for such activity. The combination of the qualification test delays, the delays associated with tool adjustment and development of new processing procedures, and the lack of available funding necessary to conduct the required testing, would prohibit delivery of the item to be

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-14R-0060. It is proposed to negotiate a Firm-Fixed-Price contract with Honeywell for their part number 1587423-1.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source, 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 , Office Symbol: ZGAA

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable and certified cost and pricing data will not be required due to the low dollar value. 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: Marlene J. Scheele Title: Contracting Officer Signature: /s/ Date: 18 Feb 14

PART V - Legal Concurrence

Signature:

Date: February 18, 2014

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $650,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

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

a. Noun: Stator, Engine Generator

b. NSN: 2920-01-046-1718

c. Basic Quantity: 58 Option Quantity: 58

d. Basic Estimated Value: $302,006.58

e. Option Percent: 100%

f. Quantity with Option: 116

g. Estimated Value with Option: 604,013.16

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and FAR 6.302-1, Only One Responsible Source and no other supplies or services will satisfy requirements subject to the availability of funds.

This approval is subject to the provisions that the property herein described has otherwise been authorized for acquisition.

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