JA_SPRDL119R0025_Redacted.pdf

J&A SPRDL1-19-R-0025

Previous J&A SPRDL1-09-C-0115 is available.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the FMTV Dressed Engine would cost an estimated minimum of $4,000,000.00 with a lead time of 30 months for design, development, and production. In addition, the FMTV Dressed Engine would have to undergo qualification testing.

Qualification testing on a FMTV Dressed 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 $5,500,000.00. 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 Caterpillar, Inc. (CAGE:

11083), the owner of the intellectual property and manufacturers of this engine. 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 engine. 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 engine. The source of supply, Caterpillar, Inc. (CAGE: 11083), owns the detailed technical data regarding this engine. Any vendor that believes they can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source will be at their own expense.

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 specified engine in the FMTV Dressed Engine and Container (NSN: 2815-01-565-1112), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during January 2019.

This FMTV Dressed Engine is a dressed Caterpillar C7 engine with dressing components that are proprietary with no technical data available to the Government other than a simple model number. Installing different types of engines in the FMTV would require extensive reconfiguration and would have to requalify for performance metrics, which is the reason that no commercial-off-the-shelf (COTS) engine assemblies exist to complete the mission. The dressed Caterpillar C7 engine in this technical data package is specifically designed for this truck and interfacing systems. Based on market research, Engineering has determined that there are no COTS solutions that could be used in this application with any confidence.

When, and if, the technical information for the Caterpillar C7 engine is eventually made available, additional market research can then be conducted and competitive procurement procedures can be considered.

Sources Sought Notice has been submitted to Fed Biz Opps on 1/10/2019.

Component: Engine, Dressed, with Container

NSN: 2815-01-565-1112

Part Number: 12414398-016 End Item: FMTV

Sources_Sought_Noti ce_2019-162.pdf

9. Interested Sources:

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 sources own the most current TDP part iteration (revision level). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

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: FMTV Dressed Engine and Container

b. NSN: 2815-01-565-1112

c. Maximum Quantity: 92

d. Estimated 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.

Signature:

Date:

SHEARER.MA

RY.E.1250702

Digitally signed by

SHEARER.MARY.E.1250

702449 Date: 2019.02.13 10:15:26 -05'00'