JA_SPRDL1-18-R-0480_Redacted.pdf

Previous J&A SPRDL1-17-R-0314 is available.

J&A SPRDL1-18-R-0480

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0480

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

2. Description of Action: The proposed contract action is to award a new 3-year, indefinite delivery indefinite quantity (IDIQ), firm-fixed price contract for the Dressed Engine Assembly with Container (NSN: 2815-01-517-1809) used on the M915A3 Vehicle.

This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The Engine, Diesel, NSN: 2815-01-517-1809 is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE:

19207) Part Number (PN) 57K4462, which consists of the M915A3 Engine PN: S01- 32466-000 from Daimler Trucks North America (CAGE: 64678), parts (over 100 total) used to dress the engine, and a container. The M915A3 Engine cost is over 80% of the total value of this part, and the TDP for this specific Engine is not owned by the Government. The Government drawing for this item is partial in nature, and it only provides the part number for the M915A3 Engine with no other technical details, which is the reason why this item cannot be procured competitively.

The unit price is estimated at . The guaranteed minimum quantity of the contract is 5 each and the maximum quantity is 150 each. The total estimated contract value is between and .

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

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Needs."

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the detailed technical data for the M915A3 Engine (NSN: 2815-01-517-1809). The top level drawing, as described above, only calls out the associated part numbers for the engine and parts to dress it from Daimler Trucks North America (CAGE: 64678) and other suppliers.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the M915A3 Engine would cost an estimated minimum of $3,300,000.00 with a lead time of 30 months for design, development, and production. In addition, the M915A3 Engine would have to undergo qualification testing. Qualification testing on a M915A3 vehicle would have an additional lead time of 12 months and cost an additional estimated minimum of $1,500,000.00.

In total, reverse engineering and qualification testing to include material test, form, fit, and function test, performance test, and durability testing would require at least forty two (42) months and an estimated minimum of $4,800,000.00. This expense could not be recouped through subsequent competition. The efforts involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the Army’s mission in a potentially adverse operational environment.

Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TDP or qualification testing for a new source.

Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition: This action is limited to Daimler Trucks North America (CAGE: 64678), the owners of the intellectual property and manufacturers of this item. No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

7. Actions to Increase Competition: There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a fully-defined and validated technical data package for this item. The source of supply, Daimler Trucks North America (CAGE: 64678), owns the detailed technical data regarding this item. Any vendor that believes it can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program.

8. Market Research: The Government has no funding to qualify additional sources, and thus any qualification would be done at contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office. Given that no detailed technical data is available for the M915A3 Engine (NSN: 2815-01-517-1809), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during May 2018.

This M915A3 Engine is proprietary with no technical data available to the Government other than the name of the OEM and the model number. Installing different types of engines in the M915A3 would require extensive reconfiguration and would have to requalify for performance metrics, which is the reason that no commercial-off-the-shelf engine assemblies exist to complete the mission. Engineering has determined that there are no COTS solutions that could be used in this application with any confidence.

If additional technical information for the M915A3 Engine (NSN: 2815-01-517-1809) is eventually made available, more detailed market research can then be conducted.

9. Interested Sources:

A Sources Sought Synopsis was posted to FedBizOpps on 5/22/2018.

Component: Engine, Diesel

NSN: 2815-01-517-1809

Part Number: 57K4462 End Item: M915A3

2018-532.pdf

Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. To date, no other sources have expressed an interest in providing the subject item. Only the approved source owns the technical data for the engine, as described above.

10. Other Facts:

a. Procurement History:

1. Contract: SPRDL1-17-C-0308

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 M915A3 Engine, NSN: 2815-01-517-1809, which is defined by the Government owned TDP, TACOM (CAGE: 19207) PN 57K4462, consisting of the M915A3 Engine PN: S01-32466- 000 from Daimler Trucks North America (CAGE: 64678), parts (over 100 total) used to dress the engine, and a container, 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(a)(2)(ii)(A) and (B), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Name:

Title:

Signature:

Date: 26 Jun 2018