JA_SPRDL1-18-R-0430_Redacted.pdf

DEFENSE LOGISTICS AGENCY J&A: SPRDL1-18-R-0430

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

a. Contractor(s) Name: GARRETT TURBOCHARGER DIV.

(SUBSIDIARY OF HONEYWELL INT)

Cage: 08179 Part Number: 44232-1

b. Contractor(s) Name: MTU AMERICA INC Cage: 72582 Part Number: 8925741

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

a. Status of the Acquisition Data:

This item is source controlled to Garrett and MTU. This item is a subassembly of the Garrett turbocharger, designed and produced for MTU. The sub-assembly consists of the fan, impeller, shaft, seals, bearings, and center housing. The purpose of the turbo is to force additional air and increase pressure in the cylinders of a reciprocating engine to increase power produced by the engine. It is a critical part of the engine. It is used on most variants of the M113. The fan and impeller have tight tolerances and spin at very high speeds. The Government does not have drawings that are suitable for competitive procurement. The drawings were not defined for the following reasons:

(1) The sources have developed, tested, and obtained the Government's approval of this turbocharger 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, Garrett and MTU are the sole owners of their drawings and technical data rights.

(2) The Government does not have rights to the data that would be required to produce a competitive TDP.

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

(1) There are no current plans to acquire a competitive source/ TDP. A significant effort would be necessary to reverse engineer, procure and test prototypes, and release the design. This program is critical to the mission readiness of the M113.

Through our previous experience, we estimate that there would be a cost of $2M to develop a competitive package for this item through reverse engineering and could require a delay of 42 months, to include definition of complete requirements, obtaining prototype and testing, and drawing update.

(2) The Government may not be able to recover through subsequent competition the additional costs involved to allow the procurement to become competitive. The M113 FOV is scheduled to be phased out over the next several years for US Army, however, demand will continue from FMS customers.

(3) If the Government conducts the efforts to allow the procurement to become competitive, an unacceptable delay of at least 42 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:

(1) Garrett and MTU are the sole owners of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. This item is a specifically designed turbocharger for application to the M113 vehicle.

(2) Only Garrett and MTU have the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this J & A.

(3) The approved sources identified above have demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material and/or improper process/quality control during manufacturing of this turbocharger could result in malfunctioning or complete failure of this item. A persistent malfunction or a failure of this turbocharger could result in damage to the engine; and could jeopardize the safety of the crew in a battlefield situation due to reduced engine power or worse. During peace time, this condition would force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate, until the damaged/malfunctioning turbocharger is either repaired or replaced.

d. Efforts to Qualify Additional Suppliers for future procurements:

(1) No vendors are in the process of being qualified at this time, nor will they be prior to the contract award due to funding constraints. Garrett, MTU-Detroit Diesel and approved dealers/distributors may submit proposals, which will be considered for award.

(2) At this time, there are no current or planned efforts to qualify additional sources, partially due to incomplete tech data.

(3) TARDEC Engineering estimates the following breakdown for the minimum timeline and costs for reverse engineering a first iteration of current subcomponents to include review, design, prototyping, testing and TDP/publication refinement.

Reverse Engineering Activity Delay Costs Project definition 3 Months $ 35K Reverse engineer and create drawings 8 Months $350K

Obtain prototypes 12 Months $100K Engine and vehicle tests 15 Months $ 1M ECP and TM changes 4 Months $ 50K Refurbish engine and vehicle 0 Months $500K

Total Estimated Time for Reverse Engineering 3.5 years $2.04M

Added to these estimates is the time for a FAT after contract award if other than the current source gets the contract.

(4) Any new vendor who decides to pursue the qualification process would be directed to go through 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, in order to become qualified for future buys.

e. Market Research:

(1) This item appears on the Competition Advocate's Shopping List (CASL) but not on the Advance Procurement Planning List (APPL) dated 26 Jan 2017. 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 web search technical study was performed on Feb 24, 2017 by James Weiss to review cost and competition consideration, along with determining commercial or non-developmental items, which may be available to meet Government needs.

(2) The POC for this action is

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. Normal acquisition procedures will be followed to determine whether the contract price is fair and reasonable. The appropriate forms of cost and/ or price analysis will be utilized, and negotiations will be conducted if necessary. Due to the estimated value of the procurement, certified cost and pricing data is not required; if necessary, other than certified cost or pricing data, will be used to support reasonableness in accordance with

FAR 15.403-3.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief. The last procurement for this Rotor and Housing Assembly was under SAP in Sept 2012 (Purchase Order SPRDL1-12-P-0206) and before that was Jul 2007, though neither J&A is available.

Name: Morris Belleville Title: Contracting Officer Signature: Morris A. Belleville /S/ Date: 04/05/2017

PART V - Legal Concurrence

Concur:

Date: 04/06/2017