JA-SPRDL1-23-R-0077_Redacted.pdf

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Redacted Justification & Approval (J&A)
Solicitation number
SPRDL1-24-R-0050
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This is a Justification and Approval (J&A) document for a sole-source contract award by the Defense Logistics Agency–Land Warren (DLA-WRN).

DLA-WRN proposes to award a firm-fixed-price contract to C.E. Niehoff & Co., Commercial and Government Entity (CAGE) 76761, for NSN 2920-01-698-8166, Generator, Engine Accessory, using Army Working Capital Funds (AWCF). The contract is a five-year Long Term Indefinite Delivery Indefinite Quantity (IDIQ) agreement with a minimum guaranteed quantity of 21 units and a maximum quantity of 553 units. The Generator, Engine Accessory is an ampere belt-driven electrical component used on the Armored Multi-Purpose Vehicle (AMPV) to charge electronic support batteries. The acquisition is made directly from the actual manufacturer under Acquisition Method Code (AMC) 4. The item is subject to single source control drawing requirements under Acquisition Method Suffix Code (AMSC) B.

The justification demonstrates that C.E. Niehoff & Co. is the only qualified manufacturer and approved source because the company designed, developed, and successfully tested the item to meet Performance Specification 12386539. The Government lacks a complete build-to-print Technical Data Package (TDP) and proprietary rights necessary for competitive procurement. Reverse engineering was evaluated as the only means to develop competition but was determined economically infeasible, requiring an estimated cost with a payback period exceeding several years at projected usage and savings rates. Market research, including a Sources Sought Notice posted July 11, 2022 (15 days open with no responses) and a technical study by Ground Vehicle Systems Center Engineering on May 25, 2023, confirmed no viable commercial alternatives or drop-in replacements exist. The authority for sole-source procurement is 10 U.S.C. 3204(a)(1), implemented by FAR 6.302-1. Unless awarded to a small business, the contract will include FAR clauses 52.219-8, 52.244-5, and 52.219-16, as well as DFARS 252.219-7003 to maximize small business subcontracting opportunities. The approval was signed by the Competition Advocate on July 6, 2023.

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Text version

SPRDL1-23-R-0077 (JA-00607)

No Previous J&A

Output voltage and current are controlled by the generator mounted voltage regulator.

The Generator, Engine

Accessory and its subsystems can operate under extreme environmental conditions

C. E. Niehoff & Co. is the only approved source of supply for the Generator, Engine Accessory. The Government does not have a complete build-to-print TDP nor proprietary rights that would be required to produce a competitive TDP. The Government possesses the Source Control drawing 12594722 and Performance Specification 12386539; however, these documents are insufficient on their own to reproduce the Generator, Engine Accessory.

C. E. Niehoff & Co. is the only qualified manufacturer of the Generator, Engine Accessory as they designed, developed, and successfully completed testing to meet the Performance Specification for the Generator, Engine Accessory 12386539. In addition, the Generator, Engine Accessory manufactured by C. E. Niehoff & Co. meets

C. E. Niehoff & Co. is the Original Equipment Manufacturer for the Generator, Engine Accessory and retains the technical expertise of the item. Additionally, C.E. Niehoff & Co. has a proven track record to deliver as they are the only manufacturer to have been awarded contracts for similar Generators

Due to the lack of a drop-in replacement and limited technical data available for the Generator, Engine Accessory, Reverse Engineering (RE) is the only recourse for the Government to increase competition through development of a competitive build-to-print TDP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, release the design, and develop a competitive TDP.

To complete the RE process successfully, the Government would have to obtain a sufficient sample size of existing parts to provide a ninety-percent confidence level in the size of the existing item to be studied. Once a large enough sample has been collected, the Government would then tear down and understand the design, develop new design, and conduct prototype development. Then the following testing would need to be performed:

Finally, the competitive TDP would be produced.

Utilizing a previous RE effort for Bradley generator as a basis of estimate, costs were

SPRDL1-23-R-0077 (JA-00607)

No Previous J&A verified and adjusted in collaboration with Mounted Armored Vehicles (MAV) Mobility Engineer. Required funding is expected to include the following: to obtain existing part samples, reverse engineer, design and fabricate prototypes, for testing and for creation of new TDP. The RE effort would be expected to have a total cost of .

The Government would not be expected to recover in a reasonable amount of time, through subsequent competition, the duplication of costs involved in reverse engineering the Generator, Engine Accessory to create a new and competitive TDP. At an estimated usage rate of units per year, average unit price of , and assuming 25% savings achieved through competition, the in projected annual savings would take over years to offset the estimated cost to reverse engineer the item and develop a competitive TDP.

Calculation:

Payback = Cost to Reverse Engineer / Annual Savings

= Cost to Reverse Engineer / (AMD * * unit price * 25% savings) = years

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above, the Government is not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

SOLE SOURCE: Notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 11 July 2022 and was open for 15 days. No responses were received.

A technical study was performed on 25 May 2023 by Ground Vehicle Systems Center Engineering to review cost and competition consideration, along with determining commercial or non-developmental items which may be available to meet Government needs. An internal search of existing Army inventory was conducted within the Federal Logistics Information System (FLIS), to determine if Generators from other weapon systems would be viable. Additionally, an internet search was performed to determine if

File details come from the government source that posted it. Updated .