JA_SPRDL1-16-R-0023.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-16-R-0023

Previous J&A History Is Not Available

Defense Logistics Agency Justification and Approval for

Other than Full and Open Competition

1. Contracting Activity:

DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action:

The proposed action is to award a contract on a sole source basis to HONEYWELL INTERNATIONAL INC. CAGE code 64547, for the manufacture of new “Generator, 650 AMP DC (OIL COOLED) with Container” commonly referred to as a Generator. The type of funds to be used are Army Working Capital Fund (AWCF). The type of contract is Firm Fixed Price.

The United States Army TACOM Contracting Command requires the acquisition of the above item.

2. Description of Supplies/Services:

The item to be acquired under the proposed contract are new generators used to provide electrical power to the M109A6 platform. The generator is a heavy-duty, 28-volt, 650-ampere, brushless, two stage, rectified output, direct current oil-cooled engine-driven accessory.

The total estimated contract value of the basic quantity of 202 is , but with full exercise of the 100% option of an addition 202 is for a total of 404 generators as follows:

NOUN: Generator, 650 AMP DC with Container (A.K.A. Generator) Contractor Name: HONEYWELL INTERNATIONAL INC.

CAGE Code: 64547 MFG Part Number: 30B95-45-C Part Number: 12361436 Part Number: 57K1788

NSN: 2920-01-442-8079

Basic Quantity: 202 With 100% option: 404 Est Unit Price:

Base Value:

Value w Option:

PRON: EH8E0864EH

Acquisition Method Code (AMC): 1. Suitable for competitive acquisition for the second or subsequent time.

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 D0D-STD-100. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The Generator is a critical component of the M109A6 charging system which operates in a unique military weapons system. The generator uses filtered oil from the engine main gallery line for cooling and is completely enclosed giving it the ability to function properly even if completely submerged in water. The performance of the generator is specialized to provide sufficient dc power output to the batteries of the M109A6 which ultimately supplies power for starting the Detroit Diesel 8V71T engine and to all of the electrically powered devices on the entire M109A6 vehicle. This allows the M109A6 to operate for long periods of time in extreme conditions and does so within the constraints of a unique space-claim.

This generator is source controlled to HONEYWELL. The Government does not have detailed drawings that are necessary for competitive procurement. Honeywell & Lucas Aerospace, have developed, tested, and obtained the Government's approval for this generator (and container) for application to the M109A6 vehicle electrical system at their own costs. The Government did not fund HONEYWELL effort in development and qualification testing of this item or preparation of the fully detailed Technical Data Package (TDP) after approval. As such, HONEYWELL is the sole owner of the drawings and technical data rights; and the Government does not have proprietary rights to the TDP that would be required to produce a competitive TDP.

This item is critical to functioning of the vehicle. The cost to either reverse engineer the part or develop a new part is estimated at $3M; developing a TDP for this item would take 4.5 yrs.

Based on similar projects, the cost to develop a build to print competitive package for this item through reverse engineering are estimated below:

Cost and schedule breakout

Reverse engineer and develop drawings 2 years $2M Develop special tooling 6 months $0.25M Fabricate prototypes 12 months $0.25M Testing 12 months $0.5M Total 4.5 years $3.0M

This delay would severely impact the availability of this item in the field. A fully functioning generator is necessary for vehicle readiness. Failure to be diligent in this effort would impose a risk as a premature failure of this item in the field could result in an extensive loss of the equipment.

There is no guarantee that the Government will recover through subsequent competition the costs involved in either procuring the proprietary data or reverse engineering the item to create a new, fully competitive package. The item cannot be made spec control because it is repairable with vendor proprietary parts. Even if an estimated 25% savings could be achieved by adding another supplier at the current average usage rate of 42 units per year (based on OSMIS database), at the current unit cost of $14,754.71, and assuming the 25% saving achieved through competition, the $154,924.45 annual savings would take 19 years to offset the estimated $3.0M cost of reverse engineering the item and qualifying another source. In addition, the end item, the M109A6 Paladin, is being phased out and replaced with the M109A7 over the next 5-10 years, so generator demand will be diminishing.

If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least 4.5 years would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O & S) costs. This shortage can lead to dead-lined vehicles since the generators are critical to the M109A6.

Only HONEYWELL has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to reliably supply this item. The use of incorrect material and/or improper process/quality control during manufacturing of this generator would result in malfunctioning or even a complete failure of this item for what it is designed, i.e., to recharge the vehicle batteries after the vehicle starts and to provide power for the vehicle’s electrical systems. A persistent malfunction or a failure of this generator would render the vehicle unable to perform its missions. Also, not being able to start and move the vehicle could jeopardize the safety of the crew in/during a battlefield situation. This kind of condition would force the Army unit to deadline the vehicle.

The item generates the engine accessory electrical power for the M109A6. Only HONEYWELL Generator passed all unique characteristics in the areas of performance, design, construction, operations in various environmental conditions and vehicle system testing. In addition, only HONEYWELL generators passed the tests that were critical to ensure the vehicles would be mission capable and operationally ready. If an untested and/or non-approved component is installed in the vehicle, the electrical system may malfunction by failure to re-start the vehicle or failure to provide electrical power at a critical time.

Endurance: The generator must comply with performance test criteria shown on drawing 12361436. It includes a 3000 hour endurance test and various performance and environmental tests. The generator is part of a complex electrical vehicle configuration requiring extensive systems level qualification and testing to be approved for use. It generates 650 amps at 28V and converts it to DC (has integral rectifier). It has an integral oil pump. It is tested to 3000 hours.

Due to the rationale above there are no current or planned efforts to qualify additional sources, nor will be prior to the contract award.

6. Efforts to Obtain Competition:

(a) Effective Competition: Per section 7, potential vendors can submit requests to become a source through the Source Approval Process at any time. Per section 9, a Sources Sought notice was posted. Based on the detailed rational provided in paragraph 5 above, there are no current plans to develop or acquire a competitive TDP due to lack of funds that would be needed to acquire the data in order to support a competitive acquisition.

(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition: As stated in section 5 above, there is no build to print TDP available to support an unlimited competitive procurement. HONEYWELL is the sole owner of the defining drawings and technical data rights. The Government did not buy HONEYWELL proprietary rights to produce a competitive TDP. This item is a specifically designed generator for application to the M109A6. Further, due to the costs associated with developing a competitive TDP that cannot be recovered as stated in section 5, the Government would not be able to recover the $3.0M to reverse engineer the generators within a justifiable time frame and thus not actively pursuing the development of a competitive TDP for future procurements.

While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, no other sources have approached this office with questions or comments on how to become a qualified source to produce this item.

8. Market Research: Market research was performed by TARDEC Sustainment Engineering on 18 August 2018 to review cost and competition considerations, reviewing vendor catalogs and available product literature published by Kohler Co. and Baldor Inc. to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs. This 28V generator is designed especially for the M109A6. Industry standard is 12V. While these two sources manufacture generators and generator sets for heavy duty applications, they are not submersible and lack a solution with the dimensional requirements and mounting provisions needed to fit within the unique space claim of the M109A6 application, which is specifically what this J&A seeks to acquire. It is also noted that LUCAS AEROSPACE LTD. was contacted and responded via email dated 11 September 2018 that they no longer have the capabilities to produce this item. This NSN was confirmed to only be available from Honeywell in CY18.

Market Research Links:

1. http://www.baldor.com/brands/baldor-reliance/products/motors/ac-motors/severe-duty

2.

http://www.kohlerpower.com/marine/category.htm?categoryNumber=8361&sectionNum ber=13461

A Sources Sought Synopsis was posted to Fed Biz Ops on August 20, 2018

Item Name: 650 Amp DC Generator with Container

NSN: 2920-01-442-8079

Part Number: 57K1788 End Item: M109A6 155mm Self-Propelled Howitzer

NSN: 2920-01-442-8079

LINK:https://www.fbo.gov/index?s=opportunity&mode=form&id=f87c6dc718eed09af0

9a0915fc4639af&tab=core& cview=0

9. Interested Sources: To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item. Sources Sought Notices 2018-701 and 2018-702 were posted to Fed Biz Ops on 20 August 2018 for the Generator, 650 AMP DC (OIL COOLED) with Container, NSN: 2920-01-442-8079 (HONEYWELL, P/N: 57K1788, Manufacturer P/N: 30B95-46-C. Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement History: Previous procurements J&A’s were made by ACC-Warren and are no longer available.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

The POC for this action is , , Name:

Title:

Signature:

Date: 13 SEP 2018 Email:

Name:

Signature:

Date: 13 SEP 2018 Email:

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name:

Signature:

Date: 18 SEP 18

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the results of a detailed cost and or price analysis. The contractor will be required to submit Data Other Than Certified Cost or Pricing Data. This item is commercial.

I also certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Jeffrey J. Mahlmeister Title: Contracting Officer Signature: //JJM//

Date: 19 September 2018

15. Legal Concurrence

09/21/2018

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: Generator, AC-DC (OIL COOLED) with Container

b. NSN: 2920-01-442-8079

c. Min Quantity: 202

d. Min Value:

e. Option Percent: 100%

f. Max Quantity: 404

g. MAX Value:

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

Name:

Signature

Date:

SHEARER.M

ARY.E.12507

02449

Digitally signed by

SHEARER.MARY.E.12

50702449 Date: 2018.09.26 15:06:39 -04'00'