6.302-1_J A_SPRDL1-15-R-0318_redacted.pdf

SPRDL1-15-R-0318

Defense Logistics Agency – DLA Land Warren

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency – 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: SUPERCHARGER, ENGINE, NON-AIR

b. QUANTITY: 97

OPTION QUANTITY: 97

TOTAL QUANTITY; 194

c. NSN: 2950-01-434-3229

d. MPN: 194670 or 655595-4

e. VEHICLE SYSTEM: M88A2

f. ESTIMATED UNIT PRICE: $ 3,577.90

g. ESTIMATED VALUE: $347,056.30

ESTIMATED OPTION VALUE: $347,056.30

ESTIMATED TOTAL VALUE: $694,112.60

h. PRON NUMBER: EH-56E119-EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed-Price

k. AMC Code: 1C

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

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.

PART II - Technical Information and Certification

1. The US Army Tank-automotive and Armaments Command requires the acquisition of the above item. The approved source(s) for the above item are:

a. Contractor(s) Name: Borg Warner Turbo Systems Cage: 4W602

Part Number: 194670

b. Contractor(s) Name: L-3 Communications Cage: 02978 Part Number: 6555595-4 (Added by virtue of being the Original Engine Manufacturer (OEM))

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

a. Status of the Acquisition Data:

(1) The above identified sources developed, tested, and obtained Government approval of this item for application to the M88A2 AVDS1790-8CR engine at their cost. The Government did not fund their efforts in developing and testing this item. Additionally, the Government did not fund them to prepare a fully detailed TDP after approval. As such, Borg Warner Turbo Systems is the sole source owner of the drawing package and technical data rights; and the Government does not own proprietary rights to the TDP that would be required to produce a competitive TDP. L-3 Com CPS is an added source by virtue of being the Original Engine Manufacturer (OEM).

(2) The Government does not own patent or proprietary rights to the TDP or data that would be required to produce a competitive TDP. Borg Warner has also chosen to make the patent and proprietary rights unavailable for Government procurement.

c. 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 necessary to reverse engineer, procure and test prototypes, and release the design. This delay would severely impact the availability of the turbo supercharger. Through previous experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $2.0M and could require an estimated delay of at least 42 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 additional sources. 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 an additionally $500K and a delay of 12-18 months. To do otherwise would present a high risk as a premature failure of this critical item in the field. Due to lack of funding urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts 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.

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 1100 horsepower (Hp) engine and is required for item testing due to its usage in the M88A2 Recovery Vehicle. 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 meet the NATO requirement for successful completion of the 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 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 would also cause a substantial duplication of costs (estimated at $500K) 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 procedure, and the lack of available funding necessary to conduct the required testing, would prohibit delivery of the item to be procured in a time frame that would meet the Government’s requirements. Therefore, no efforts have been or are being taken to qualify additional sources of supply at this time for the item to be procured.

e. Market Research:

1) This item appears on the Competition Advocate’s Shopping List (CASL), dated 06 DEC 10.

The CASL contains TACOM-Warren’s projected buy list of sole source items for the next three years based on the AMRC Codes of 3, 4, and 5. It is updated and advertised twice a year in the FedBizOpps and is available to interested contractors on the TACOM-Warren Business Opportunities website under the Future and Potential Buys link. Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office. To date, no additional contractors have expressed an interest in this item

2) A market survey was performed on 23 June 2011 to determine if commercial items or non developmental items are available. No other turbocharger exists that will meet the governments needs.

3) A Sources Sought Notice was posted on FedBizOps on 26June2015.

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: SUPERCHARGER, ENGINE, NON-AIR

b. QUANTITY: 97

OPTION QUANTITY: 97

TOTAL QUANTITY; 194

c. NSN: 2950-01-434-3229

d. MPN: 194670 or 655595-4

e. VEHICLE SYSTEM: M88A2

f. ESTIMATED UNIT PRICE: $ 3,577.90

g. ESTIMATED VALUE: $347,056.30

ESTIMATED OPTION VALUE: $347,056.30

ESTIMATED TOTAL VALUE: $694,112.60

h. PRON NUMBER: EH-56E119-EH

i. TYPE OF FUNDS: AWCF

j. TYPE OF CONTRACT: Firm Fixed-Price

k. AMC Code: 1C

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

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: