JA_SPRDL110R0310_Redacted.pdf

No Previous J&A

SPRDL1-19-R-0310

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a 5yr firm-fixed priced Long Term Contract (LTC) for the FMTV Dressed Engine and Container (NSN: 2815-01-668- 4779) for the FMTV 2-1/2 ton sustainment. The guaranteed minimum quantity is 33ea and the maximum quantity of 313ea. The estimated minimum value of the contract and estimated maximum value of the contract . This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: This item is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE: 19207) drawing, 12505857 which consists of the FMTV C7 Dressed Engine (PN: 12505605-005) and Container (PN:

12414397). Drawing 12505605 is a list of purchased parts including the engine and over 100 other components that are used to dress the engine. The engine (PN: 12505854- 001, 311-0491) from Caterpillar Inc. (CAGE: 11083) makes up almost the entire value of NSN: 2815-01-668-4779, 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: 311-0491 from Caterpillar Inc. (CAGE: 11083) since the Government-owned TDP for this item is partial in nature, and it only provides the part number for the FMTV Dressed Engine with no other technical details.

The contractor Caterpillar Inc. (CAGE: 11083) shall provide the proprietary engine (PN:

311-0491), which is almost the entire cost of the kit used in the FMTV Dressed Engine.

C7 engine was started with FMTV A1R variants 2/2005.

- The 2.5 ton variant engine; had Caterpillar C7 275 hp.

Engine:

Caterpillar C7 Heavy Duty Diesel, 6-Cylinder, Electronic Controlled, Fuel-Injected Turbocharged and After cooled (it is used to cool engine air after passed through the Turbocharger before enter the engine), EPA Certified Rating 275 hip (205 kW) @ 2200 rpm Displacement 441 cu in (7.2 L) Torque 860 lo-fi (1,166 Nm) @ 1440 rpm Fuel Diesel, DF-2, JP-4, JP-8, VV-F-800 Oil MIL-L-2104D, MIL-L-46167, 22 qtr. (21 L)

- The 5 ton variant engine; Caterpillar C7 330 hp.

The Family of Medium Tactical Vehicles (FMTV) is a family of diesel powered U.S. Army supply trucks in the 2.5 to 5 ton payload class. The FMTV consists of the Light Medium Tactical Vehicle (LMTV) and the Medium Tactical Vehicle (MTV). The trucks are manufactured by Oshkosh Corporation. A five-year contract was awarded to Oshkosh Trucks in August 2009, unseating incumbent FMTV producers BAE Systems and Navistar Defense. The FMTV Family of Vehicles has 80% part commonality.

The LMTV is a family of 4-wheel (4x4) diesel powered trucks with a 275 hp Caterpillar C7 6 cylinder engine. The LMTV has a 2.5 ton payload capacity and consists of the M1078 Cargo and M1079 Van models. The M1082 2.5 ton payload trailer is designed to be pulled by LMTV trucks.

The Medium Tactical Vehicle (MTV) is a family of 6-wheel (6x6) diesel powered trucks with a 330 hp Caterpillar C7 6 cylinder engine. The MTV has a 5 ton payload capacity (dump truck has 10 ton payload), and consists of the M1083 MTV Cargo, M1084 MTV Cargo MHE,M1085 MTV Cargo Long Wheel Base (LWB),M1086 MTV Cargo MHE LWB, M1087 MTV Expansible Van, M1088 MTV Tractor, M1089 MTV Wrecker, M1148 MTV Load Handling System (LHS),and M1157 MTV 10 Ton Dump Truck models. MTV trailers include the 5 ton payload M1095 and the M1147 LHS Trailer. Sub variants of the MTV provide an air drop capability for contingency and rapid deployment operations.

Commonality between variants significantly reduces operation and maintenance costs.

The FMTV performs over 55% of the U.S. Army's local, line haul, and unit resupply missions in combat, combat support, and combat service support units.

Acquisition Method Code (AMC): 4 - Acquire, for the first time, directly from the actual manufacturer.

Acquisition Method Suffix Code: (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 FMTV Dressed Engine and Container (NSN: 2815-01-668-4779), which drawing only calls out the associated part numbers for the engine from Caterpillar Inc. (CAGE: 11083) and parts to dress it.

The CCDC GVSC Tactical Vehicle Engineering Sustainment Team has estimated reverse engineering (RE), testing and TDP development of the FMTV Engine based on the cost data acquired from GVSC GVPM Group. In total reverse engineering, qualification testing to include material test, form, fit, and function test, performance test, durability testing and Technical Data Development would require at least 5 to 6 years and an estimated minimum of $39,406,000. This expense could not be recouped through subsequent competition within the vehicle useful service life (25 Years). The RE payback period is 30+ years. In addition, RE cost for source control dressed components (Compressor, Starter, Alternator, Turbo System and Container) is not included, which may increase the estimated RE cost drastically. 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 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 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 source of supply, Caterpillar Inc. (CAGE: 11083), owns the detailed technical data for this item. Any vendor that believes it 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: 2815-01-668-4779), 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 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 CATERPILLAR C7 engine in this technical data package is specifically designed for this truck and interfacing systems, as is the container.

Engineering has thereforedetermined that there are no COTS solutions that could be used in this application with any confidence.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 6/26/2019. 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.

Sources Sought Notice: 2019-452 Component: ENGINE, DIESEL

NSN: 2815-01-668-4779

Part Number: 12505857-003 End Item: FMTV 2 ½ TON

FedBizOppsLink:

https://www.fbo.gov/index?s=opportunity&mode=form&id=03cece6ca6256af8c4f6482b9 3301e83&tab=core&_cview=0

10. Other Facts:

a. Procurement History: This is a new NSN and has never been procured. There is no previous procurement history.

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the engine specified in the FMTV Dressed Engine and Container (NSN: 2815-01-668-4779).

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.

Approval Authority for Acquisitions Equal to or Greater Than $13.5M.

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 Diesel Engine Block Assembly

b. NSN: 2815-01-668-4779 of which the engine (PN: 12505854-001, 311-0491) from Caterpillar Inc. (CAGE: 11083) makes up almost all of the total value.

c. Maximum Quantity: 313 each

d. Estimated Maximum Value:

This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 U.S.C. 2304(c) (1), and FAR 6.302-1 and subject to availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

Mark A. Brown, SES Head of Contracting Activity

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.08.13 10:43:08 -04'00'