JA_SPRDL1-19-R-0068__Redacted.pdf

J&A SPRDL1-19-R-0068

Defense Logistics Agency Justification and Approval for Other Than Full and

Open Competition J&A SPRDL1-19-R-0068

1. Contracting Activity: The Defense Logistics Agency - DLA Land Warren is the responsible contracting activity for this action.

2. Description of Action: The proposed action is to award a new contract on a sole source basis to Cummins, Inc., for the procurement of a new Engine Oil Pump Assembly. The Type of funds to be used are Army Working Capital Funds (AWCF). The type of contract is Firm Fixed Price.

3. Description of Supplies/Services: This award is for the procurement of new Engine Oil Pump Assembly for the continued support of the Bradley Fighting Vehicle. The total estimated contract value with option is for up to 1023 Engine Oil Pumps. For this proposed Contract, the deliverables are as follows:

NOUN: Oil Pump Assembly, Engine

a. NSN: 2815-01-292-3002

b. MPN: 3062542

c. QUANTITY: 499

OPTION QUANTITY: 524

d. ESTIMATED UNIT PRICE:

e. ESTIMATED VALUE:

ESTIMATED OPTION VALUE:

ESTIMATED TOTAL VALUE:

f. PRON: EH9L0039EH

Acquisition Method Code (AMC): 3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code: (AMSC): R - The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: One of the main components of the Cummins VTA-903T Engine’s lubrication system is the Oil Pump Assembly, part number 3062542. Cummins Inc is the sole owner of their drawings and technical data rights. The government does not own proprietary rights to the TDP that would be required to produce a competitive TDP. The above identified supplier has developed, tested and obtained Government approval for this item for application to the M2 Bradley Vehicle system at their own cost. The Government did not fund their efforts in developing and testing this item. Only Cummins Engines Inc has the capability to manufacture the Oil Pump Assembly and its components, perform failure analysis, develop inspection and acceptance criteria for components, and repair/rebuild and test the item.

Due to the limited performance and technical data available on the Engine Oil Pump Assembly, Reverse Engineering is the only recourse the Government could entertain to increase competition through development of a competitive TDP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. Further, there is no funding to develop and qualify additional Engine Oil Pump Assembly manufacturers for this effort. Even if a reverse-engineering effort is successful, the Government will incur excessive costs and lead-time delay. The cost to reverse-engineer the critical components is estimated at $2.8 M and 3 years to complete.

Reverse Engineering the TDP includes, but is not limited to the following:

Estimated cost to reverse engineer the Engine Oil Pump Assy: $500,000.

Estimated time to reverse engineer the Engine Oil Pump Assy: 1 year

Estimated cost to perform RAM vehicle testing -3 vehicles at 5000 miles per vehicle: $1,800,000 Estimated time to perform RAM vehicle testing: 1-3 years (depends if it can be ran simultaneously)

Estimated cost to develop a Technical Data Package: $ 500,000 Estimated time to develop a Technical Data Package: 1 year

The Government does not have the funds available nor would the Government be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package. At the current usage rate of 90 units per year, at the current unit cost of , and assuming the 25% saving achieved through competition, the $39,394 annual savings would take over 71 years to offset the estimated $2.8M cost of reverse engineering the item and qualifying another source.

The consequential time delay of 3 years to reverse engineer, develop and test the new design and then qualify a new vendor would prohibit delivery of the Engine Oil Pump Assembly in a time frame that would satisfy the Government's needs.

6. Efforts to Obtain Competition: a) Effective Competition: Based on the detailed rational provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action at this time.

(b) Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition: As stated in section 5 above, there is currently no funding available to increase competition through the process of qualifying additional sources.

Due to the associated cost as stated in section 5, the Government is not actively pursuing additional sources for future procurements. This item, Engine Oil Pump Assembly, NSN:

2815-01-292-3002, currently does appear on the Competition Advocates Shopping List dated 8/31/18. Contractors interested in becoming a source of supply need to meet the requirements of the Source Approval Program including vehicle level qualification testing, at their own expense. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, there has not been any expressed interest by any known vendor(s) to become qualified source(s) to produce this item.

8. Market Research: Market research was completed by TARDEC Engineering in October 2018. There are other sources likely capable of developing a Engine Oil Pump, along with those that currently manufacture commercial engine pumps but none of them have met the testing requirements described above nor have they been shown to operate on this specific military system. Extensive analysis, prototyping, and vehicle testing as described in section 5 above would still need to be done to ensure that the BFVS will properly meet performance specifications with a new supplier’s hardware. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source and the proposed delays would be unacceptable for this procurement based on current requirements.

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Synopsis, Notice number 2019-056 was posted to Fed Biz Opps on 19-October 2018 for the Oil Pump Assembly, Engine, NSN: 2815- 01-292-3002, MPN 3062542 as required by FAR 5.201. Any responses received will be evaluated by the appropriate office.

Sources Sought Notice has been posted to Fed Biz Opps on 10-19-2018 Component: Oil Pump Assembly, Engine

NSN: 2815-01-292-3002

Part Number: 3062542 End Item: Bradley Fighting Vehicle

2019-056.pdf

10. Other Facts:

a. Procurement history: There are several prior awards for this end item. They are listed below:

Contract: SPRDL1-18-P-0449, CAGE: 04MP1; AWD: 07/02/2018

QTY: 21; Unit price (U/P): $1,950.68; NAICS: 333618; Total Value: $40,964.28

Contract: SPRDL1-14-C-0126; CAGE: 04MP1; AWD: 08/15/2014

QTY: 10; U/P: $1,718.90; NAICS: 336330; Total Value: $17,189.00

Contract: SPRDL1-14-P-0115; CAGE: 04MP1; AWD: 05/21/2014

QTY:10; U/P: $1,726.97; NAICS: NOT LISTED; Total Value: $34,539.40

The aforementioned contracts are the history of awards for this end item. Each procurement has been a sole source procurement issued directly to the Original Equipment Manufacturer (OEM). Based on the rationale provided in Para. 5 of this J&A, there is no reasonable expectation for competition now or in the future due to exobertant costs pertaining to reverse engineering in addition to the amount of time that would be required to manufacture the part and conduct testing.

b. Acquisition data availability: The government does not own proprietary rights to the Technical Data Package (TDP) that would be required to produce a competitive TDP. Cummins Inc. has developed, tested and obtained Government approval for this item for application to the Bradley Vehicle Fighting System at their own cost. The Government did not fund their efforts in developing and testing this item.

c. Unusual and compelling urgency: N/A

d. Subcontracting competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

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: __14 DEC 2018_________________

Title: Sustainment Engineering-Medium Combat Vehicles Team Lead Supervisor

Signature: 14 DEC 2018_______________

Email__

Date: __18 DEC 2018_________________

Title: Deputy AD Sustainment Engineering

Signature: 12/18/2018

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.

Date: 19 December 2018_____

Title: Director, Fires and Infantry Support PSID

Signature:

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.

Normal acquisition procedures will be followed to determine that 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 this procurement, certified cost and pricing data will be required IAW FAR 15.403. I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Typed Name: Timothy A. Nichols

Date: __25 January 2019_______

Title: Contracting Officer

Signature: __//TAN//________

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Timothy A. Nichols

Date: __25 January 2019_______

Title: Contracting Officer

Signature: ___//TAN//_________

15. Legal Concurrence:

Concur:

Date: 01/30/2019

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: Oil Pump Assembly, Engine

b. NSN: 2815-01-292-3002

c. Basic Quantity: 499

d. Basic Estimated Value:

e. Option Quantity: 524

f. Quantity with Option: 1023

g. Estimated Total 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: