JA_SPRDL1-19-R-0046_Redacted.pdf

J&A SPRDL1-19-R-0046

Previous J&A SPRDL1-17-C-0104 is available.

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed contract action is to award a contract for the M916A3 and M917A2 Dressed Engine and Container (NSN: 2815-01-506-6226). This item is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE: 19207) Drawing 57K4467, which consists of the M916A3 and M917A2 Dressed Engine (PN: 12478866) and Container (PN: 12389942). Drawing 12478866 of this package is a list of purchase parts including the engine and over 100 other components that are used to dress the engine. The engine (PN: S01-26473-008) from Daimler Trucks North America LLC (CAGE: 64678) makes up most of the cost of NSN: 2815-01-506- 6226, and the technical data for this specific engine is not owned by the Government.

This J&A is needed to justify the purchase of PN: S01-26473-008 from Daimler Trucks North America LLC (CAGE: 64678) since the Government-owned TDP for this item is a top level drawing that only provides the part number for the M916A3 and M917A2 Dressed Engine with no other technical details.

3. Description of Supplies/Services: The contractor Daimler Trucks North America LLC (CAGE: 64678) shall provide the proprietary engine (PN: S01-26473-008), which represents most of the cost of the kit used in the M916A3 and M917A2 Dressed Engine.

The maximum value of this contract is for a total of 8 units, including the option quantity.

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

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 DoD-STD-

100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD- 100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

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, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the detailed technical data for the engine specified in the M916A3 and M917A2 Dressed Engine and Container (NSN: 2815-01-506-6226); the TDP only calls out the associated part numbers for the engine from Daimler Trucks North America LLC (CAGE:

64678) and parts to dress it.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the M916A3 and M917A2 Dressed Engine and Container 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 M916A3 and M917A2 Dressed Engine would have to undergo qualification testing. Qualification testing on a M916A3 and M917A2 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 Daimler Trucks North America LLC (CAGE: 64678), the owner of the intellectual property and manufacturer 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 sources of supply, Daimler Trucks North America LLC (CAGE: 64678), own the detailed technical data regarding this item. 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: Computer-based/internet market research was conducted by the Project Engineer during October 2018. Based upon this market research, no additional sources of supply were identified. Given that no detailed technical data is available for the specified engine in the M916A3 and M917A2 Dressed Engine and Container (NSN:

2815-01-506-6226), market research results are very limited.

This M916A3 and M917A2 Dressed Engine is a dressed Detroit Diesel Series 60 12.7L engine (NOTE: Detroit Diesel is a subsidiary of Daimler Trucks North America) 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 M916A3 and M917A2 dressed 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. The dressed Detroit Diesel Series 60 12.7L engine in this technical data package is specifically designed for this truck and interfacing systems, as is the container. Engineering has determined that there are no COTS solutions that could be used in this application with any confidence.

Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office.

Sources Sought Synopsis has been submitted to Fed Biz Opps on 11/7/2018.

Component: Engine, Diesel, with Container

NSN: 2815-01-506-6226

Part Number: 57K4467 End Item: M916A3 and M917A2

Sources_Sought_N otice_2019-078.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.

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-17-C-0104 Award Date: 15 Feb 2017 Contractor: W. W. Williams Co., LLC Value: $1,820,857.78 (with option) Competitive Status: Full and open after exclusion of sources per FAR 6.302- 1 - Only one responsible source

Contract: W56HZV-06-D-0309-VD02 Award Date: 8 Aug 2011 Contractor: Freightliner of Savannah Value: $315,390.50 Competitive Status: Full and open after exclusion of sources per FAR 6.302- 1 - Only one responsible source (basic contract)

Contract: W56HZV-06-D-0309-VD01 Award Date: 20 Jan 2010 Contractor: Freightliner of Savannah Value: $283,851.45 Competitive Status: Full and open after exclusion of sources per FAR 6.302- 1 - Only one responsible source (basic contract)

Contract: W56HZV-06-D-0309-0001 Award Date: 30 Aug 2006 Contractor: Freightliner of Savannah Value: $493,327.26 Competitive Status: Full and open after exclusion of sources per FAR 6.302- 1 - Only one responsible source (basic contract)

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the engine specified in the M916A3 and M917A2 Dressed Engine and Container (NSN: 2815-01-506-6226).

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: N/A

11. Technical Certification: I hereby 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.

[ X ] $250K to $650K