JA-PRON-EH56E101EH-Redaction.pdf

Previous J&A for PRON EH46E139EH was per FAR 6.302-1, “Only One Responsible Source,” it was not signed by Comp.

Adv. since the value was under $650K; legal signed the J&A on 24 JUL 2014; PCO signed on 23 JUL 2014

CMO Control Number: [Completed by Comp. Mgt. Office]

SPRDL115R0091

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: CYLINDER HEAD,DIESEL

b. QUANTITY: 235

OPTION QUANTITY: 235

TOTAL QUANTITY: 470

c. NSN: 2815-007891006

d. MPN: 05198203 or 5198203

e. VEHICLE SYSTEM: M113 FOV Armored Personnel Carrier (APC)

f. ESTIMATED UNIT PRICE: $ 1,349.10

g. ESTIMATED VALUE: $ 317,035.50

ESTIMATED OPTION VALUE: $ 317,035.50

ESTIMATED TOTAL VALUE: $ 634,077.00

h. PRON NUMBER: EH56E101EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

k. AMC: 1- Suitable for competitive acquisition for the second or subsequent time

l. AMSC: H - The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical

Previous J&A for PRON EH46E139EH was per FAR 6.302-1, “Only One Responsible Source,” it was not signed by Comp.

data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

PART II - Technical Information and Certification

1. The US Army Tank-automotive and Armaments Command requires the acquisition of the above item. The only approved sources for the above item is:

a. Contractor Name: MTU AMERICA INC.

Cage: 72582 MFG Part Number: 05198203 or 5198203 MIL Part Number: 2815007891006

b. Contractor name: POWER COMPONENTS (DEUTSCHLAND) GMBH Cage: C7432 MFG Part Number: P/N: PC5198203

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

a. Status of the Acquisition Data:

This item is source controlled to MTU. The item can be obtained from MTU or an MTU distributor such as Power Components or Penn Detroit Diesel. The Government does not have drawings that are suitable for competitive procurement. The drawings were not defined for the following reasons:

(1) The above identified approved source have developed, tested, and obtained the Government's approval of this Cylinder Head, a key component of MTU engine Model 6V53, a system designed for the M113 APC at their own costs. The Government did not fund their efforts in development and qualification testing of this item. Additionally, the Government did not fund them to prepare fully detailed TDPs after approval. As such, Tognum America and/or Power Components America Inc is the sole owner of their drawings and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP.

(2) The Government does not own the patent rights to MTU data which would be required to produce a competitive TDP without having to reverse engineer the head.

b. Efforts to Develop a Competitive Package:

(1) There are no current plans to acquire a competitive TDP. This part is critical to functioning of the M113 vehicles. The cost to either reverse engineer the part or develop a new part is estimated to be at least $500,000. Developing a TDP for this item would take at least two (2) years. A new head would require a qualification test including hundreds of hours of bench and laboratory durability testing and follow-on testing in a vehicle for at least several thousand miles. No more M113 vehicle tests are scheduled, so the cost of a vehicle life test and subsequent refurbishment would have to be fully covered by this effort.

Previous J&A for PRON EH46E139EH was per FAR 6.302-1, “Only One Responsible Source,” it was not signed by Comp.

(2) The Government would not be able to recover the costs to create a TDP for this item through subsequent competition. If the Government conducts the efforts to allow the procurement to become competitive this two (2) year delay would adversely impact the Army operational readiness.

c. Demonstrate the approved contractor's unique qualifications:

(1) MTU is the sole owner of the drawing and technical data rights. The Government did not buy MTU’s proprietary rights to produce a competitive TDP. This item is a specifically designed cylinder head for application to the M113 APC engine assembly.

(2) The cylinder head is a steal casting with machined surfaces, holes and cavities. The cylinder head contains passages for cooling fluid and oil. It would take time to reverse engineer. Through past performance, the source identified above has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. If an untested and/or non-approved cylinder head is installed in the vehicle, the cylinder head would likely malfunction and fail to operate major valves causing catastrophic and permanent damage to the power plant; which would then fail to provide the needed horsepower severely impacting the mission. This kind of condition would force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate, until the malfunctioning/failed cylinder head is either repaired or replaced. The cylinder head shall be rugged enough to allow the rebuilt engine assembly to remain in compliance with the 400 Hour NATO Standard Engine Laboratory Test without performance degradation and without any maintenance or malfunction. Under the best conditions, without any incidents, NATO testing would take at least 12 months at a cost of at least $100,000 after securing a test site.

d. Efforts to Qualify Additional Suppliers

(1) No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

(2) 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 to produce a competitive TDP. Any new source would be required to pass extensive first article/validation testing at the component and vehicle level. Vehicle testing is required to ensure that an additional supplier obtains the same performance levels (function, safety, RAM-D, etc.), as those produced by Tognum America and/or Power Components The additional time required for these actions would preclude the delivery of the items in a time frame that would satisfy the Government’s needs.

(3) Any new vendor who decides to pursue the qualification process would be directed to the Competition Advocate's Source Approval Program. The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item for future buys.

e. Market Research:

This item appears on the Competition Advocate's Shopping List (CASL) dated 31 July 2014. A "Sources Sought" synopsis was requested on 12 December 2014. To date no contractors have expressed an interest in this item.

Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office. A market survey was performed on 12 Dec 2014 by the System Engineer to review cost and competition considerations, along with determining commercial or non developmental items which may be available to meet Government needs. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

The POC for this action is James Weiss, System Engineer RDTA-EN/LCV, 282-2275.

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

Previous J&A for PRON EH46E139EH was per FAR 6.302-1, “Only One Responsible Source,” it was not signed by Comp.

Name:

Title:

Signature: //s// Date:

Name:

Title:

Signature: / S / Date:

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH56E101EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: /s/ Date:

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

Name:

Title:

Signature: /s/ Date:

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request For Proposals SPRDL115R0091. It is proposed to negotiate a Firm-Fixed-Price contract with TOGNUM AMERICA INC. (CAGE-72582), their part number: 05198203 or 5198203 or POWER COMPONENTS (DEUTSCHLAND) GMBH (CAGE-C7432), their part number:

PC5198203. Tognum America Inc. and Power Components GMBG are the only responsible sources and no other supplies or services have been identified to satisfy the requirements outlined in this document. Rationale for the restriction to Tognum America Inc. and Power Components GMBG is listed above in Part II.

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.

Previous J&A for PRON EH46E139EH was per FAR 6.302-1, “Only One Responsible Source,” it was not signed by Comp.

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 Mary Morin, OFFICE SYMBOL: ZGAAC, Ext. 282-3201.

5. Fair and Reasonable Determination: : I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Based on previous contracts, pricing should remain fair and reasonable to include any inflation factors. In addition, a new contract price could change due to increase in quantities being purchased (buy more, pay less:

buy less, pay more). Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. Due to the value of the procurement, certified cost and pricing data will not be required.

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: 6 Apr 15

PART V - Legal Concurrence

Concur:

Date:

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $700,000.

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: CYLINDER HEAD,DIESEL

b. QUANTITY: 235

OPTION QUANTITY: 235

TOTAL QUANTITY: 470

c. NSN: 2815-007891006

Previous J&A for PRON EH46E139EH was per FAR 6.302-1, “Only One Responsible Source,” it was not signed by Comp.

d. MPN: 05198203 or 5198203

e. VEHICLE SYSTEM: M113 FOV Armored Personnel Carrier (APC)

f. ESTIMATED UNIT PRICE: $ 1,349.10

g. ESTIMATED VALUE: $ 317,035.50

ESTIMATED OPTION VALUE: $ 317,035.50

ESTIMATED TOTAL VALUE: $ 634,077.00

h. PRON NUMBER: EH56E101EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed Price

k. AMC: 1- Suitable for competitive acquisition for the second or subsequent time

l. AMSC: H - The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

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: