JA_SPRDL1-19-R-0217_Redacted.pdf

J&A SPRDL1‐19‐R‐0217

(Previous J&A SPRDL1‐18‐R‐0135 is available.)

“Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The Government require the acquisition of the above item. The only approved source for the above item is Garrett, part number 409750-3, cage 08179. The government does not have a drawing for this item. The technical data for this item is not defined for the following reasons:

Only Garrett turbochargers passed all unique characteristics in the areas of performance, design, construction, operations in various environmental conditions, and vehicle system testing as described in the Item Product Function Specification. These tests are critical to ensure that the M109/M992 vehicles would be mission capable and operationally ready during all warfare environments. If an untested and/or unapproved turbocharger is installed in the vehicle, the turbocharger could malfunction and result in minimizing the engine performance. This kind of condition would force the Army unit to deadline the vehicle impacting the Operational Readiness (OR) Rate, until the malfunctioning/failed turbocharger is either repaired or replaced.

Garrett developed, tested, and obtained the US Government's approval of this item for application to the M109’s 8V71T engine at their own cost as the OEM for the engine. Garrett is the manufacturer of this item. Garrett have the requisite technical and engineering expertise to perform all efforts required to provide the supplies identified in this J&A. Garrett have demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The Government did not fund Garrett for their efforts in developing and testing this item. The Government did not appropriate funds for Technical Data Package (TDP) preparation. Garrett is the owner of their drawings and the Government does not have rights to proprietary information, which is required to produce a competitive TDP.

US Army Ground Vehicle Systems Center (GVSC), Light Combat Sustainment Engineering estimates the following breakdown for the minimum timeline and costs for reverse engineering a first iteration of current subcomponents to include review, design, prototyping, testing and TDP/publication. This process is shown below:

Reverse Engineering Activity Delay Costs Project definition 3 Months $35K Reverse engineer and create drawings 12 months $500K Obtain prototypes 12 Months $175K Engine and vehicle tests 15 Months $1M ECP and TM changes 6 Months $75K Refurbish engine and vehicle 0 months $500K Total Estimated Time to Reverse Engineer 4 years $2.285M

Added to these estimates is the time for a First Article Test after contract award if other than the approved source gets the contract.

The Government may 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 competitive package. It is estimated that 25% savings could be achieved by adding another supplier. With an expected annual demand average of 30 units per year, at the current cost of

$ and assuming the 25% savings achieved through competition, the $ annual savings would take 235 years to offset the estimated $2,291,000.00 cost of reverse engineering the item and qualifying another source.

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

As described below in section 9, potential vendors can submit requests to become an approved source through the Source Approval Process at any time.

A significant effort would be necessary to reverse engineer, test prototypes, release the design and procure. This delay would severely impact the availability of this turbocharger for the M109 engines. This effort is critical to operational readiness. Through our previous experience, we estimate that the cost to develop a competitive package for this item through reverse engineering could run as high as $2.3M and could require an estimated delay of four years to include definition of complete requirements, obtaining prototype and testing, and drawing update.

The Government may not be able to recover through subsequent competition the additional cost involved to allow the procurement to be competitive. If the Government conducts the efforts to allow the procurement to become fully competitive, an unacceptable delay of at least four years would occur. This delay would adversely impact the Army's readiness rate and Operational and Support (O&S) costs.

7. Actions to Increase Competition: As stated in section 5 above, there is no competitive TDP available to support a competitive procurement. Garrett developed, tested, and obtained the US Government's approval of this item for application to the M109 FOV 8V71T engine at their own cost. Due to the cost associated with developing a competitive TDP 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 $2.2M to reverse engineer the supercharger within a justifiable time frame.

8. Market Research: Computer based market research was performed by GVSC engineering to determine whether commercial or non-developmental items exist which may be available to meet Government needs. Garrett was contacted, and they stated that they were still in business but bought out by Honeywell, and that any inquiry to their Garrett subdivision could not be accomplished by phone, only through their website www.turbobygarrett.com. Garrett’s website indicates that the part is still available through a part number search and can be purchased through distributers. The manufacturing location on record is assumed to be the same with just a change in company name, but any change to the location would require a Government Quality team evaluation to the implications.

Other potential sources are specialty supercharger rebuilding shops, that use a core and repair and custom refit close tolerance parts and bearings, but these used items are not always available due to core parts shortage. They have also not submitted to the required testing described above, nor have they produced the item for this military specific application.

9. Interested Sources: Although this procurement will be restricted to the above source, every effort will be made to obtain potential sources by synopsis through the FedBizOpps system. In addition, a Sources Sought Synopsis was posted to FedBizOpps on 27 March 2019, for the listed item.

Component: Turbo Supercharger, Engine, Non-Aircraft

NSN: 2950-01-151-2684

Part Number: 409750-3 End Item: M109 Howitzer https://www.fbo.gov/index?s=opportunity&mode=form&id=17d39f2d331d9b23406e9d55e8969 a6c&tab=core& cview=0.

To date no contractors have expressed an interest in this item. Contractors interested in competing on any items listed are instructed to contact the Competition Advocate’s Office.

Any responses received will be evaluated by the appropriate office.

10. Other Facts:

a. Procurement history:

Contract: SPRDL1-19-C-0087

Award Date: 12/07/2018

Contractor: WW Williams Company (Cage: 43RF7)

Value: $289,893.74

Competitive Status: Limited Source

Authority Cited: FAR 6.302-1, Only One Responsible Source

Note: Prior J&A was sole sourced to MTU America with Garrett being left off because they were not active in Sam.gov. WW Williams Company was a distributor to MTU, but was unable to fulfill the contract due to obsolescence issues. Garrett’s distributor confirmed they still manufacture this item, so this is sole sourced to Garrett and authorized distributors.

JA_SPRDL118R0135_

Redacted.pdf

b. Acquisition Data Available: The Government does not own or have rights to the technical data for this item.

c. Subcontracting Competition: This will be required due to dollar value if we procure straight from Garrett. If Garrett utilizes its small business distributor, they will not be required to submit a subcontracting plan per exception under FAR 19.702(b)(1). However, large business distributors will be required to do so.

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-Light Combat Sustainment Engineering

Signature:

11 JUN2019

Date: 11 JUN 19

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:

Email:

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.

This determination will be based on the results of a detailed cost and or price analysis. The expected value is below the certified cost or pricing threshold of 2 Million therefore FAR 15.403- 3 Requiring Data Other Than Certifed Cost or Pricing Data will apply. If an offer received is over

2 Million, the contractor will be required to submit certified cost and pricing data IAW FAR 15.403-4. This item is non-commercial.

Typed Name: Timothy A. Nichols Date: ___28 AUG 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: ___28 AUG 2019______ Title: Contracting Officer Signature: ____//TAN//______

15. Legal Concurrence:

Date: 08/30/2019