Redacted_JA_SPRDL1-16-C-0174.pdf

SPRDL 1-15-R-0185

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

DLA 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: CRANKSHAFT, ENGINE

b. BASIC QUANTITY: 126

OPTION QUANTITY: 126

TOTAL QUANTITY : 252

c. NSN: 2815-01-233-9709

d. MPN: 12254249

e. VEHICLE SYSTEM: M88A1/A2, M-60

f. ESTIMATED UNIT PRICE:

g. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

h. PRON NUMBER: EH-56E145EH

$10,732.65 $1,352,313.90 $1,352.313.90 $2, 704,627 .80

i. TYPE OF FUNDS: Army Working Capital Fund (AWCF)

j. TYPE OF CONTRACT: Firm Fixed Price

ACQUISITION METHOD CODE (AMC): 3

Acquire, for the second or subsequent time, directly from the actual manufacturer.

ACQUISITION METHOD SUFFIX CODE (AMSC): B

This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100.

Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD STD-100 definition, altered and selected items shall have an adequate technical data

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package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. 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 11- Technical Information and Certification

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

a. Contractor(s) Name: L-3 Communication Corporation Cage: 02978 Part Number: 12254249

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

a. Status of the Technical Data Package: TACOM-Warren has only one drawing package (TOP) on this item in ACMS, 12254249. This drawing package is not fully defined and is marked "Source Control". This drawing was not fully defined for the following reasons:

(1) The above identified source 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, L-3 Communication Corporation, Muskegon is sole owner of the drawing packages and technical data rights; and the Government does not own proprietary rights to the TOP that would be required to produce a competitive TOP.

(2) The Government does not own patent rights to the data that would be required to produce a competitive TOP.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement: There are no current plans to acquire a competitive TOP.

(1) Funds are not available to acquire the data necessary to support a competitive acquisition. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. This delay would severely impact the availability of the crankshaft for repair of the AVDS1790-8CR engines in the field and for Anniston Army Depot's (ANAD) AVOS1790-8CR engine rebuild program. This program is critical to the M88A2's readiness. Through our previous experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $15.0 mil and could require an estimated delay of at least 60

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months to include fabrication and testing of the prototype hardware, and releasing a validated TOP. 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 and probable loss of lives. 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.

Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering effort at this time.

(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.

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 and higher horsepower capability as opposed to the AVDS 1790-2 (750 Hp) series of engines which also uses the item to be procured. This test is required for components which are critical for engine/vehicle operation and crew safety.

d. Efforts to Qualify Additional Suppliers: Due to the critical nature of this item, the TOP requires that the item meet 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. An award to any other source

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would also cause a substantial duplication of costs (estimated at $1.0 Mil) to the Government not expected to be recovered through competition. 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 procured in a timeframe that would meet the Government's requirements.

Therefore, no efforts have or are being taken to qualify additional sources of supply at this time for the item to be procured.

e. Market Survey: This procurement is top drawing source controlled to L-3 Communication Corporation who is the sole owner of the drawings and technical data rights. This item does not appear on the Competition Advocate's Shopping List (CASL) dated July 2014. There is no drop in replacement for the engine crankshaft. Reverse engineering would be necessary to develop a replacement.

3. The POC for this action is

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

Name:

Title:

Signature:

Date:

Name:

Title:

Signature:

Date:

Name:

Title:

Signature:

Date:

PART Ill - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH56E145EH as to required quantities and delivery schedules are accurate and complete.

SPRDL 1-15-R-0185 4

Date:

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

Name:

Title:

Signature:

Date:

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL 1-15-R-0185. It is proposed to negotiate a Firm-Fixed-Price contract with L-3 Communication Corporation for their part number 12254249. L-3 Communications Corporation is the sole owner of their drawings and technical data rights. The government does not own proprietary rights to the TOP that would be required to produce a competitive TOP.

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

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. DLA Land Warren will use the appropriate acquisition procedures and price and/or cost analysis to determine that the contract price is fair and reasonable. NSN: 2815-01-233-9709 has been determined to be a non-commercial item through market research. Due to the dollar value exceeding $700,000.00, Certified Cost or Pricing Data will be obtained in accordance with FAR 15.403-4.

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 Title: Contracting Officer

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Signature: /Is// Date: 28 Apr 2015

PART V - Legal Concurrence

Concur:

Date:

SPRDL 1-15-R-0185

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: CRANKSHAFT, ENGINE

b. BASIC QUANTITY: 126

OPTION QUANTITY: 126

TOTAL QUANTITY : 252

c. NSN: 2815-01-233-9709

d. MPN: 12254249

e. VEHICLE SYSTEM: M88A1/A2, M-60

f. ESTIMATED UNIT PRICE: $10,732.65

g. ESTIMATED VALUE: $1,352,313.90

ESTIMATED OPTION VALUE: $1,352.313.90

ESTIMATED TOTAL VALUE: $2, 704,627 .80

h. PRON NUMBER: EH-56E145EH

i. TYPE OF FUNDS: Army Working Capital Fund (AWCF)

j. TYPE OF CONTRACT: Firm Fixed Price

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.

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