REDACTED_JA_SPRDL1-14-R-0188_COMP_AD.pdf

DEFENSE LOG ISTICS AGENCY J&A :SPRDLl-14-R-0188

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CMO Control Number:

SPRDL1-14-R-0188

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 ofItem Required:

a. 1) NOUN: Engine Diesel

NSN:2815-01-558-2770

MPN: DR1439FRS

Min.Quantity: 3 ea.

Max. Quantity: 45 ea.

ESTIMATED 1•t ORDERING YEAR UNIT PRICE: $ 9,250.00 ESTIMATED 2nd ORDERING YEAR UNIT PRICE: $ 9,620.00 ESTIMATED 3rd ORDERING YEAR UNIT PRICE: $ 10,005.00

ESTIMATED MIN TOTAL VALUE $ 27,750.00

ESTIMATED MAX TOTAL VALUE $433,125.00

PRON NUMBER: EH45R913EH

2) NOUN: Engine Diesel

NSN:2815-01-559-2661

MPN: 0100-4046-FRS

Min Quantity: 3 ea.

Max Quantity: 45 ea.

ESTIMATED 151 ORDERING YEAR UNIT PRICE : $ 11,281.00

ESTIMATED 2nd ORDERING YEAR UNIT PRICE: $ 11,740.00 ESTIMATED 3rd ORDERING YEAR UNIT PRICE: $ 12,209.00

ESTIMATED MINTOTAL VALUE: $ 33,843.00

DEFENSE LOG ISTICS AGENCY J&A :SPRDLl-14-R-0188

ESTIMATED MAX TOTAL VALUE: $528,570.00

PRON NUMBER: EH45R914EH

TOTAL ESTIMATED MAX CONTRACT VALUE: $961,695.00

i. AMSC CODE: 00

j. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: FIRM FIXED PRICE

PART II·Technical Information and Certification

1. The US Anny TACOM LCMC requires the acquisition of the above item. The only approved sources for the above items are:

a. Contractor(s) Name: Cummins Central Power, LLC

Cage: 4TNW9 Part Number: DR1439FRS

b. Contractor(s) Name: Cummins Central Power, LLC

Cage: 4TNW9 Part Number:0100-4046-FRS

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

a. Status of the Acquisition Data:

As authorized by FAR 6.302-1, procurement by other than full and open competition for the generator motor is necessary because a motor from a manufacturer other than the original equipment manufacturer (OEM) or an authorized dealer of the manufacturer would require on-system testing of the motor, the revision of major portions of the technical manual(TM), additional user testing, loss of productivity and potential safety issues.

The Forward Repair System,in its current configuration,was tested using the Cummins diesel engine powered generator. The use of other than Cummins DR1439FRS or 0100-4046-FRS diesel motors to power the generator would cause compatibility issues.

No other engine is compatible with the generator operating system. Since the generator engine also powers the hydraulic crane, re-engineering of the hydraulic system would be necessary. Such changes from the OEM part requirements, not only could cause system damage, but also could cause injury to personnel. The Government does not own the technical data for the diesel motors, nor does the Government have the rights to the technical data. Competitively procuring replacement motors would be impractical

DEFENSE LOGISTICS AGENCY ]&A :SPRDLl-14-R-0188 and would incur testing and re-engineering costs that the Government could not reasonably expect to recoup through competition. Re-engineering the FRS to accept other than the current generator motor cannot be done in a short time and would cause unacceptable delays.

In addition to the cost penalty, a FRS with other than an OEM generator motor may have to undergo user and safety testing.It will take a minimum of six months to get on the testing schedule at Aberdeen Proving Ground. Barring any corrective actions, testing is estimated to take 12 weeks.

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

Procurement:

The Government does not own the technical data for the diesel motors, nor does the Government own rights to the technical data. Competively procuring replacement motors would be impractial and would incur testing and re-engineering costs and delays that the Government could not reasonable expect to recoup through competition.

Testing alone will cause a 9 month delay at the very least. In addition, updating performance specifications for the diesel motor and evaluating proposals will incur another 6 month delay at the very least. Costs associated with testing and engineering support for redesign could be upwards of $200,000.00. This is not expected to be recovered through a competitive procurement.

The Government cannot reverse engineer the FRS to accept other than the current generator motor in a short amount of time. A redesign effort of this nature would take 6 months minimum and approximately $100,000.00. Once the design was created, testing would again incur another 9 month delay minimum and $100,000.00. This is not expected to be recovered through a competitive procurement.

Procurement history shows that the last purchase for NSN 2815-01-558-2770 was for a quantity of 15 In 2010 and NSN 2815-01-559-2661 was for a quantity of 12 in 2010.

Future quantities are expected to be around 5 per year. If a redesign effort saved $700 per diesel engine (an average of a 10% cost savings per unit), a total of 285 FRS units would have to be purchased to recoup the up front cost incurred. Taking future quantities into account, that could take 57+ years to recoup. Quantities are too small to justify the cost to increase competition.

c. Demonstration of Approved Contractor's Unique Qualifications:

Cummins is the current manufacturer of the diesel motors used on the FRS and is the only source that has the particular knowledge and resources required to remanufacture Cummins engines. They have already passed all required testing, including user and safety testing. Use of a motor from a manufacturer other than the original equipment manufacturer (OEM) or an authorized dealer of the manufacturer would require on-system testing of the motor, the revision of major portions of the technical manual, additional user testing,loss of productivity, and potential safety issues.

DEFE NSE LOG ISTICS AGE NCY J&A : SPRDLl-14-R-0188

d. Efforts to Qualify Additional Suppliers for future procurements:

For reasons as stated herein, only the Cummins part numbers DR1439FRS and 0100- 4046-FRS will satisfy the requirements for Tier II and Tier Ill remanufactured engines.

Because of this, we are unable to increase competition.

e. Market Research:

Market research was performed using both the internet and through telephone contact with companies in this particular market segment. The research showed that there is a commercial market segment that typically remanufactures engines. However, only Cummins has the particular knowledge and resources to remanufacture Cummins engines.

3. The POC for this action is Jennifer Miller, Lead General Engineer, 309-782-8151.

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

Name: Jennifer Miller Title: Lead General Engineer Signature: Jennifer Miller /s/ Date: 1/12/2015

PART 111 - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH45R914EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: Karrie Charbonneau Signature: Karrie Charbonneau Isl Date: 1/12/2015

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

Name: Terrill Cofield Title: Armaments Team Leader Signature: Terrill Cofield/st Date: 1/13/2015

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL1-14-R-0188. It is proposed to negotiate a Firm-Fixed-Price contract with Cummins Central Power, LLC (Cage: 4TNW9) for their part number DR1439FRS and

0100-4046-FRS.

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 Derek Rutkowski,OFFICE SYMBOL: ZGAE.

5. Fair and Reasonable Determination: Ihereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable.

Certified cost and pricing data or other than Certified cost or pricing data and other cost or price data will be required to justify price reasonableness. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary.

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

Name: Michael J. Bissig Title: Contracting Officer I Branch Chief r Signature: /Isl!

Date: 1/13/2015

PART V .. Legal Concurrence

Concur: II Darin R. Morency II Date: 01/14/2015

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: Engine Diesel

b. NSN:2815-01-558-2770 / 2815-01-559-2661

c. Basic Quantity: Min 3 ea. I Max 45 ea. for both NSN's

d. Basic Estimated Value: $961,695.00

e. Option Percent: N/A

f. Quantity with Option: N/A

g. Estimated Value with Option: $ N/A

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 proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Date: