JA SPRDL119R0128_Redacted.pdf

SPRDL1-19-R-0128

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 firm fixed price Long Term (5 Year) Contract (LTC) on a sole source basis to Honeywell International Inc. (CAGE 64547) for the manufacture of new “Generator, AC-DC (OIL COOLED)” commonly referred to as a Generator, Part Number (P/N) 30B95-3C. The Government will fund this action using Army Working Capital Fund (AWCF).

3. Description of Supplies/Services: This is for the procurement of new generators used to provide electrical power to the M88 platform. The generator is a heavy-duty, 28-volt, 650-ampere, oil cooled, brushless, direct current engine-driven accessory. The Government estimates a minimum contract value for a quantity of 18 EA at $ and total estimated long-term contract value with option is $ for up to 881 EA generators.

NOUN: Generator, AC-DC (OIL COOLED) (A.K.A. Generator)

a. NSN: 2920-00-441-8137

b. P/N: 11655469

MPN: 30B95-3-C

c. MIN QUANTITY: 18 EA

MAX QUANTITY: 881 EA

d. ESTIMATED UNIT PRICE: $

e. ESTIMATED MIN VALUE: $

ESTIMATED MAX VALUE: $

f. PRON: EH81L073EH

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

Acquisition Method Suffix Code: (AMSC): C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

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: The Generator is a critical component of the M88 charging system that operates in a unique military weapons system. The generator uses filtered oil from the engine main gallery line for cooling and is completely enclosed giving it the ability to function properly even if completely submerged in water. The performance of the generator is specialized to provide sufficient dc power output to the batteries of the M88, which ultimately supplies power for starting the AVDS-1790 engine and to all of the electrically powered devices on the entire M88 vehicle.

This allows the M88 Family of Vehicles (FOV’s) to operate for long periods in extreme conditions and does so within the constraints of a unique space-claim. Honeywell International Inc. has developed, tested and obtained Government approval for this item for application to the M88 vehicle system.

In addition, the approved sources’ item has met the NATO requirement for successful completion of NATO Laboratory Test for Gas Turbine Engines AEP-5, Allied Engineering Publication while operating on an AVDS-1790 diesel engine. This test is required for components, which are critical for engine/vehicle operation and crew safety. Malfunction could result in catastrophic loss of equipment and life due to the vehicle. If the Government identifies another possible source of supply for this item, qualification testing would be required.

The Government has not developed a complete build to print Technical Data Package (TDP) for unlimited competitive use. The current Government drawing 11655469 is source controlled to Honeywell. There are currently no plans to acquire a build to print a competitive TDP to acquire the data in order to support a competitive acquisition due to lack of funds. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. The estimated cost to develop a build to print competitive package for this item through reverse engineering could run as high as $3M and could require an estimated delay of at least 24 months, to include fabrication and testing of the prototype hardware and releasing a validated TDP. There would also be added cost and time to qualify another source. Vehicle level qualification and durability testing would be required to prove out this item if manufactured by a new source at an estimated cost of an additional $3.5M and a delay of 24 months.

The Government would not 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 new, fully competitive package. At the current average usage rate of 60 units per year, at the current unit cost of , and assuming the 25% saving achieved through competition, the $ annual savings would take 18 years to offset the estimated $6.5M cost of reverse engineering the item and qualifying another source.

The consequential time delay of 48 months to reverse engineer, develop and test a build to print design and then qualify a new vendor for this effort is also unacceptable to meet the current annual demand of 60 and quantity of 39 back-order status for the Generators. Waiting for the reverse engineering project and for parts to become available through an unlimited competitive buy would negatively affect the readiness rate of the M88 vehicles and further increase the backorders to 222 by the end of 2020. This shortage would lead to dead lined vehicles since the generators are critical to the M88.

6. Efforts to Obtain Competition:

(a) Effective Competition: No vendors are currently in the process of being qualified to produce this Source Controlled CCA and there are no planned efforts to qualify any additional sources for the reasons listed above. Any effort to qualify additional vendors or obtain technical data for this item would add cost and production delays that the Government could not recover through competition.

(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 no build to print TDP available to support a competitive procurement. The Government does not own a build to print TDP necessary to procure this item as full and open competition. This item is source controlled to Honeywell as the owner of the respective technical and manufacturing data and they are the only approved source of supply for this item.

This item does not appear on the Advance Procurement Planning List (APPL) dated 16 January 2018 and does not appear on Competition Advocate Shopping List (CASL) dated 16 January 2018. The APPL contains TACOM-Warren’s projected buy list of sole source items for the next three years. It is updated and advertised twice a year in the FedBizOpps and is available to interested contractors on the TACOM-Warren Business Opportunities website under the Future and Potential Buys link. Contractors interested in becoming a source for this item need to meet the requirements of the Source Approval Program. This is done at the contractor’s expense, to include vehicle level qualification testing. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. Specific information and point of contact for the Source Approval Program is available at https://www.tacom.army.mil/cmo/sap.html. 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, no other sources have approached this office with questions or comments on how to become a qualified source to produce this item.

8. Market Research: Market research was performed by TARDEC Sustainment Engineering on 18 June 2018 by reviewing vendor catalogs and available product literature published by Kohler Co. and Baldor Inc. to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs. While these two sources manufacture generators and generator sets for heavy-duty applications, they are not submersible and lack a solution with the dimensional requirements and mounting provisions needed to fit within the unique space claim of the M88 FOV’s application. Further, since neither of these sources have produced this specific item for the M88 FOV’s application they have not completed the necessary testing to become a qualified source as described in section 5. Ormat has previously rebuilt the generators, but is not qualified as a new generator manufacturer.

TARDEC confirmed that this NSN was available from Honeywell in the early CY of 2018.

9. Interested Sources: To date no other known source has expressed interest in writing regarding the manufacture of this item. The Competition Advocate’s Office will direct contractors on how to become qualified for future procurements.

A Sources sought synopsis, 2018-485, for this item was posted on FedBizOpps on 1 May 2018 for the Generator, Engine Accessory, NSN 2920-00-441-8137, Part Number, 11655469/30B95- 3-C as required by FAR 5.201. No responses have been received to date.

SourcesSoughtFBO notice01MAY2018.pd

10. Other Facts:

a. Procurement History: Past procurements have been sole source to Honeywell. The most recent contracts include SPRDL1-16-C-0173, a firm fixed price contract, awarded August 2017 and SPRDL1-15-C-0078, a firm fixed price contract, awarded March 2015.

b. Acquisition data availability: The Government does not own the build to print drawings and associated quality assurance data to the Generator that the Government needs to procure this item competitively. Honeywell is the original equipment manufacturer (OEM) and is the only approved source of supply for this item.

c. Technical POC: , Mechanical Engineer, .

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.

Name:

Title: Supervisory Team Lead-Heavy Combat Sustainment Engineering Signature:

Date: 8 August 2018 Email:

Name:

Title: Deputy Associate Director, Combat Vehicle Engineering Signature:

Date: 8/8/2018 Email:

Name:

Title: Associate Director, Combat Vehicle Engineering Signature:

Date: 10 Aug 18 Email:

Name:

Title: Deputy Executive Director, Systems Integration and Engineering Signature:

Date: 14 August 2018 Email:

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: Item Manager Signature:

Date: 16AUG2018

Name:

Title: Director, Ground Combat Systems, Readiness & Sustainment Directorate (GCS R&S Dir) Signature:

Date: 9/14/2018 Email:

Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Typed Name: Eric E. Tucker Title: Contracting Officer Signature: //EET//

Date: 2/15/2019

14. Contracting Officer Certification:

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

Name: Eric E. Tucker Title: Contracting Officer Signature: //EET//

Date: 2/15/2019

15. Legal Concurrence:

Name:

Title: Legal Advisor Signature:

Date: 2/22/19

Approval Authority for Acquisitions Equal to or Greater Than $13.5 Million

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: Generator, AC-DC (OIL COOLED)

b. NSN: 2920-00-441-8137

c. Min Quantity: 18 EA

d. Min Value:

e. Option Percent: 5 yr. LTC

f. Max Quantity: 881 EA

g. MAX 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.

Mary E. Shearer Competition Advocate

Mark A. Brown, SES Head of Contracting Agency