SPRDL1-19-R-0109_J&A_Redacted.pdf

J&A SPRDL1-19-R-0109

Logistics Agency Justification and Approval for Other Than Full and Open Competition

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 hardware contract on a limited source basis to Allison Transmission, Inc, CAGE Code 73342, for the procurement of new Pump, Output Oil. The Type of funds to be used is Army Working Capital Fund (C-AWCF).

The type of contract is Firm Fixed Price.

3. Description of Supplies/Services: The items to be acquired under the proposed contract are new Oil Output Pumps Assemblies for the X200-4A transmissions which are used in the M113A3 Family of Vehicles.

The total estimated contract value with option is for up to 855 Oil Output Pumps.

For this contract, the deliverables are as follows:

NOUN: Pump, Output Oil

a. NSN: 2520-01-198-0495

b. P/N: 23018062

c. QUANTITY: 285

OPTION QUANTITY: 570

d. ESTIMATED UNIT PRICE:

e. ESTIMATED VALUE:

f. ESTIMATED TOTAL VALUE:

h. PRON: EH8E0365EH

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

Acquisition Method Suffix Code: (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.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, "Only One Responsible Source and no other supplies or services will satisfy requirements."

5. Reason for Authority Cited: The US Army Tank-Automotive and Armaments Command requires the acquisition of the above item. The only approved source for the above item is Allison Transmission, Inc, CAGE Code 73342. TACOM-Warren does not have or own the drawing(s) for this item. The technical data for this item is not defined for the following reasons:

This item was specifically designed for the X200-4A transmissions which is used in the M113A3 Family of Vehicles. Only the Allison Oil Output Pumps Assembly passed all the unique characteristics in the areas of performance, design, construction, operations in various environmental conditions, and vehicle system level testing as described in the Item Product Function Specification. These tests are critical to ensure that the M113A3 Family of Vehicles would be mission capable and operationally ready during all warfare environments. If an untested and/or unapproved Oil Output Pumps Assembly is installed in the vehicle, the X200-4A transmission could malfunction and result in degraded vehicle performance or in vehicle failure.

A failure of the Oil Output Pumps Assembly would force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate until the malfunctioning/failed X200-4A transmission is either repaired or replaced.

Allison Transmission developed, tested, and obtained the US Government's approval of this item for application to the X200-4A transmission at their own cost. Allison Transmission has the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this J & A. Allison Transmission, Inc has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material and/or fabrication of this item could result in malfunctioning of the X200-4A transmission. The Government did not fund their efforts in developing and testing this item. The Government did not appropriate funds for a Technical Data Package (TDP) preparation. Allison Transmission, Inc is the owner of their drawings and the Government does not have rights to proprietary information which is required to produce a competitive TDP.

TARDEC Engineering has determined a Rought Order of Magnitude (ROM) cost estimate to reverse engineer this component and a minimum timeline to reverse engineer a first iteration of current component(s) to include review, design, prototyping, testing and TDP/publication refinement.

Reverse Engineering Activity Delay Costs Project definition 1 Months $5K Reverse engineer and create drawings 6 Months $125K Obtain prototypes 3 Months $70K Transmission & vehicle tests 17 Months $3.02M ECP & TM changes 6 Months $75K Refurbish transmission & vehicle 6 Months $500K Total Estimated Time to Reverse Engineer 39 Months $3.795M

Added to these estimates is the time for a FAT after contract award if other than the current source gets the contract.

6. Efforts to Obtain Competition: Per section 7, potential vendors can submit requests to become a source through the Source Approval Process at any time. Per section 9, a Sources Sought synopsis was posted to FedBizOpps. Based on the detailed rational provided in paragraph 5 above, the Government has no plans to obtain competition for this proposed contractual action. Approving additional vendors will result in minimal additional cost savings in comparison to the additional cost required to qualify those additional sources.

7. Actions to Increase Competition: As stated in section 5 above, a complete TDP and manufacturing knowledge are unavailable to support a competitive procurement. A TDP and the manufacturability details in theory could be developed, however, due to the costs associated with developing a competitive TDP and methodology that cannot be recovered also stated in section 5, the Government is not actively pursuing the development of a competitive TDP for future procurements. The Government would not be able to recover the dollars required to reverse engineer and qualify the item within a justifiable time frame.

8. Market Research: Computer based market research was completed by TARDEC Engineering in November 2018. There are other sources likely capable of developing this component for our needs. Although these companies have no identifiable replacement for this hardware, they do make similar ones for the commercial and military market. Extensive analysis, prototyping, and vehicle testing as described in section 5 above would still need to be done to ensure that the M113 Family of Vehicles will properly meet performance specifications with a new supplier’s component. The cost of such analysis, prototyping, and testing would far exceed any cost savings realized by adding another source.

Sources Sought Notice: 2019-084 Item Name: Pump, Oil Output

NSN: 2520-01-198-0495

Posted Date: 13 November 2018 Fed Biz Opps Link:

https://www.fbo.gov/index.php?s=procurement&mode=form&tab=step1&id=32f4c22f64 5816f81e3cc67453468380&tab=ntype&_cview=0 Part Number: 23018062 End Item: M113A3 Family of Vehicles

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2019-084 was posted to Fed Biz Opps on 13 November 2018 for the Pump. Oil Output, NSN: 2520-01-198-0495, Part Number 23018062, as required by FAR 5.201. Any responses received will be evaluated by the appropriate office. Interested contractors will be referred to the Source Approval Program though the Competition Advocate’s Office for information on becoming a qualified source.

10. Other Facts:

a. Procurement History: The most recent contract awarded for this part was a delivery order (VD18) against W56HZV-09-G-0001 on 10 Mar 12. Here, 280 units were purchased at a price of $636.01 from Allison Transmission. There were no commercial clauses/provisions included in the base contract or the delivery order. The buyer obtained this information from EDA; unfortunately no pre-award supporting documents are available through EDA. The buyer was unable to find an electronic contract file or relevant documents for this procurement.

Therefore the buyer was unable to determine the authority previously used for less than full and open competition for this NSN, if any other offer were received, or if a J&A was prepared.

b. Acquisition data availability: The Government does not have a drawing for this item.

This is a Non-Developmental Item and is purchased from a manufacturer’s part number. Allison Transmission, Inc is the sole owner of their technical data.

c. Unusual and compelling urgency: NA

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.

The POC for this action is

Name:

Title: Supervisory Team Lead- Medium Combat Vehicle Engineering

Date: 13 DEC 2018 Email: tina.m.minauro.civ@mail.mil

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.

Name:

Title: Requirements Officer for Carrier Group

Date: 19 Dec 2018

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine 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. Certified cost and pricing data will be required.

Name: Laura L. Monteith Title: Contracting Officer Signature: //LLM//

Date: 25 Jan 19

14. Contracting Officer Certification:

mailto:celeste.r.kozinski.civ@mail.mil

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

Name: Laura L. Monteith Title: Contracting Officer Signature: //LLM//

Date: 25 Jan 19

15. Legal Concurrence

Concur:

Date: 01/29/2019