JA_SPRDL1-18-R-0477-Redacted.pdf

J&A SPRDL1‐18‐R‐0477

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0477

1. Contracting Activity: Defense Logistics Agency (DLA Land - Warren).

2. Description of Action: in a 5 year Long Term Contract for the Forward Repair System (FRS) Generator Diesel Engines (2815-01-558- 2770) and (2815-01-559-2661). This award is projected for the 2nd-3rd quarter of FY 2018 and Army Working Capital Funds (AWCF) will be used for this procurement.

AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

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.

3. Description of Supplies/Services:

The FRS Diesel Engine National Stock Number (NSN) 2815-01-558-2770 procurement is planned for a maximum quantity of 19 each estimated at

NSN 2815-01-559-2661 is planned for a maximum quantity of 38 each estimated at ; for a total estimated maximum dollar value of

The Diesel Engines manufactured by Cummins Power Generation, Inc., for the Forward Repair System (FRS) Generator are the only engines that are certified for replacement. These diesel engines not only powers the FRS generator, but also powers the hydraulic crane.

Contractor Name: Cummins Central Power, LLC Cage: 4TNW9 Part Numbers: 0100-4046-FRS and DR1439FRS

4. Authority Cited: The Statutory Authority permitting this action is 10 U.S.C.

2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited:

This procurement will be issued under FAR 6.302-1, because a diesel engine furnished by another contractor/manufacturer will require testing and re-engineering work. Cummins Central Power LLC is the current manufacturer of the diesel engine used on the FRS and is the only source that can be used as a direct replacement to comply with form, fit, and function.

The Forward Repair System, in its current configuration, was tested using a Cummins Central Power LLC diesel engine. The use of other than a Cummins diesel engine could cause not only system damage. In addition, excess engineering and testing would be required to ensure any newly selected diesel engine would be compatible with the existing hydraulic system. If it is not fully compatible with the existing hydraulic system, extension re-engineering would be required to ensure the new engine is capable of fulfilling all power requirements for the FRS, including the PTO (power take-off) for the hydraulic crane.

The Government does not own the technical data for the Cummins diesel engine, nor does the Government have the rights to the technical data. Competitively procuring replacement engines would be impractical and would incur testing and re-engineering costs that the Government could not reasonably expect to recoup through competition. The diesel engines are needed in order to replace broken or damaged engines that are currently in the field. Re-engineering the FRS to accept other than the current Cummins diesel engine cannot be done in a short time and would cause unacceptable delays.

Re-engineering efforts are estimated to require 4 months minimum to redesign the hydraulic system, equating to a cost of approximately per NSN (2).

Once the new design is available, the FRS will need to undergo user and safety testing. It will take a minimum of 6 months to get on the testing schedule at Aberdeen Proving Ground. Barring any corrective actions, testing is estimated to take 8 weeks. Testing is estimated to cost approximately In total, this redesign effort is estimated to take no less than 12 months and per NSN (x2).

Procurement history shows that requirements for NSN 2815-01-558-2770 are very low. Future quantities are expected to be around 1 for the next 36 months.

If a redesign effort saved (approximately 10% cost savings per unit), a total of 124 units would have to be purchased to recoup the up-front cost incurred. Taking future quantities into account that could take 372+ years to recoup, after the initial 17 month delay for engineering and testing. Quantities are not high enough to justify the cost to increase competition.

Procurement history shows that requirements for NSN 2815-01-559-2661 are very low. Future quantities are expected to be around 1 for the next 36 months.

If a redesign effort saved (approximately 10% cost savings per unit), a total of 100 units would have to be purchased to recoup the up-front cost incurred. Taking future quantities into account that could take 300+ years to recoup, after the initial 17 month delay for engineering and testing. Quantities are not high enough to justify the cost to increase competition.

6. Efforts to Obtain Competition:

There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints - no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office (CMO). To date, there has not been any expressed interest by any other known vendors to become qualified to produce this item. Per FAR 5.201 notices of proposed contract actions will be made available through Fedbizopps.gov.

7. Actions to Increase Competition:

There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN 2815-01-558-2770 and 2815- 01-559-2661 fully competitive for the following reasons: re-engineering efforts are estimated to require 4 months minimum to redesign the generator mounting system, equating to a cost of approximately additional testing would be required to ensure the data acquired is safe and accurate, estimated cost associated is $90,000; and no funding is available to conduct the tasks required to acquire or re-engineer the commercially controlled data. Quantities are not high enough to justify the cost to increase competition.

8. Market Research:

This item does not appear on TACOM Competition Advocate’s APPL or the CASL lists. Market research was performed by General Engineer from ARDEC Battlefield Tools and Equipment Division (BTED) throughout February 2018 using both the internet to perform business website and capabilities queries, and through telephone contact with companies in this particular market segment.

Companies researched: Generac, Kohler, Champion, Kubota, and Cummins.

The research showed that there is a commercial market segment that typically manufactures diesel engines for generators. While these sources provide engines in the appropriate load class to support the generators, none are a direct, drop-in replacement. These are commercial parts that would have to be modified in conjunction with the vendor, likely at a significant cost. They would also require vehicle testing to ensure that they were functional with the higher level system. However, only the Cummins Central Power LLC engines can be used as a direct replacement and comply with form, fit and function requirements. Per (FAR 6.303-2 (a) (8)).

A sources sought synopsis was posted to FedBizOpps on 18 July 2018, during the processing of PRONs EH86R079EH and EH86R077EH. No responses were received and no additional contractors have expressed an interest in this item or the ability to provide an alternate product.

sources sought.pdf

9. Interested Sources:

To date, no other sources have written to express an interest in the production of the FRS diesel engine, nor has the Government identified any other source possessing an interest in being an alternate source for this item. As required by the FAR 5.201 the requirement shall be published, and any bids or proposals received shall be considered. Per FAR 5.201 notices of proposed contract actions will be made available through Fedbizopps.gov. .

10. Other Facts:

a. Procurement history (NSN 2815015582770):

1.) Contract: SPRDL116D0001/0001/0011

Award Date: 12/1/2015 Contractor: Cummins Quantity: 8 Value: $79,463.76 Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source

(NSN 2815015592661)

2.) Contract: SPRDL116D0001/0001/0021

Award Date: 12/1/2015 Contractor: Cummins Quantity: 3 Value: $36,321.93 Competitive Status: Sole Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition data availability: The Government does not own the technical data for the Cummins diesel engine, nor does the Government have the rights to the technical data. The hydraulic system would require engineering redesign and the Cummins diesel engine would have to be reverse engineered to create a full and open technical data package (TDP). The redesigned FRS would then require retesting to ensure adequate function and safety. The cost and schedule delays incurred by this option are not expected to be recouped through competitive procurement.

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.

Typed Name: Date: 23 February 2018 Title: Lead General Engineer Signature:

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.

Typed Name:

Date: 14 March 2018 Title: Inventory Management Specialist Signature:

Typed Name:

Date: 14 MAR 18 Title: Team Leader

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.

This item has been determined commercial and therefore certified cost and pricing data will not be required.

Name: Timothy A. Nichols Title: Contracting Officer Date: 8/14/18 Signature: //TAN//

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Timothy A. Nichols Title: Contracting Officer Date: 8/14/18 Signature: //TAN//

15. Legal Concurrence:

Concur:

Date: 08/20/2018

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 NSNs 2815- 01-558-2770 and 2815‐01-559-2661, from Cummins Central Power LLC, with a total estimated value of . This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 U.S.C. 2304(c) (1), and FAR 6.302-1, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Name:

Title: Competition Advocate Date: