SPRDL1-24-R-0056_Redacted (1).pdf

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Redacted Justification and Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-24-R-0056
Issued by
Defense Logistics Agency Land and Maritime

About this file

This document is a Justification and Approval (J&A) for a sole-source procurement of an Ignition Modulator Assembly for the M915A3 vehicle. The Government determined that there is only one responsible source, Freightliner of Savannah (an authorized Daimler distributor), that can provide this proprietary part due to lack of technical data required for programming and qualifying another source. Market research found that while remanufactured or new ECMs are available from third-party vendors, the Government cannot validate whether they will fit the M915A3 in the same manner as the OEM part. The J&A cites the high cost and lengthy timeframe to reverse engineer the item and qualify another source. The Government previously awarded sole-source contracts to Freightliner of Savannah under FAR 6.302-1 for this part. The current solicitation is SPRDL1-24-R-0056, with the contract SPRDL1-24-D-0061 awarded on August 13, 2024 to an unknown vendor.

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SPRDL1-24-R-0056 (JA-00755)

Previous J&A: SPRDL1-19-R-0220

The Government would not be able to recover, through subsequent competition in a reasonable amount of time, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive build to print technical data package within a reasonable time frame. At the current average usage rate of units each year, a current unit cost of $ , and assuming 25% savings achieved through competition, the $ in annual savings would take over years to offset the estimated $2,750,000 cost of reverse engineering the item and qualifying another source.

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

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.

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

There are no other actions besides the above mentioned to increase competition.

8. Market Research: Market research was conducted by the GVSC Medium Trucks and Trailers Sustainment Team during January of 2024 for alternatives to the Daimler

ECM.

Keywords: Ignition Modulator Assembly, detroit truck programmed ecm, "ddeciv" reprogrammed ecm, electronic engine control unit https://dieselecmexchange.com/detroit-diesel/ddeciv-ecm https://goecm.com/products/detroit-diesel-ddeciv-ecm- 23519307?variant=29315856367676 https://www.bosch-mobility.com/en/solutions/control-units/engine-control-unit/

Remanufactured ECMs are offered by several companies as well as new ECMs however, there is not enough information to determine whether these options will fit the M915A3 in the same manner as the original equipment manufacturer (OEM) sole-source part programmed by Daimler. Due to the lack of TDP and specifications required for programming it is hard to validate that 3rd party companies will be able to program to Army serial numbers which are not publicly available. When and if the technical information for the ECM is eventually made available, specific market research can then be conducted and a competitive procurement considered.

Contacted the contractor to request consideration for the United States Government (USG) to purchase the intellectual property on 2 January 2024. The contractor is not interested in selling the technical data rights/intellectual property at this time due to this item being actively manufactured.

On 11 January 2024, additional market research was performed by contract specialist.

Contract specialist checked the Department of Defense (DOD) Commercial Item Determination Database (CID) for NSN 2920-01-517-1812, but no records were found.

Although NSN 2920-01-517-1812 didn’t have a formal commerciality determination in the database, there is evidence that Federal Acquisition Regulation (FAR) Part 12 procedures were previously employed to procure the same product under contract SPRDL1-20-D-0005 awarded 18 October 2019.

As a result of the market research conducted, it was concluded that this product is of a type used, sold/leased, or offered for sale to the public and is available in the commercial marketplace with or without modifications pursuant to the definition of a commercial product at FAR 2.101. This product meets the definition of a commercial product at FAR 2.101.

A Sources Sought Notice was posted to the System for Award Management (SAM.gov) on 30 January 2024 and was open for 15 days. One response was received from Clarke Power Services, CAGE 1SHN6 expressing interest in submitting a proposal.

9. Interested Sources: To date no additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

Indefinite-quantity Contract Number: SPRDL1-20-D-0005 Contractor: Freightliner of Savannah, Inc. (Authorized Daimler Distributor) Award Date: 18 October 2019 Competitive Status: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

The following delivery orders were places by DLA Land Warren under Indefinite-quantity Contract SPRDL1-20-D-0005:

Delivery Order SPRDL1-20-F-0019 awarded 18 October 2019 to Freightliner of Savannah, Inc. for a quantity of 32 each Modulator Assembly units with a total dollar value of $71,557.44.

Delivery Order SPRDL1-20-F-0151 awarded 24 February 2020 to Freightliner of Savannah, Inc. for a quantity of 40 each Modulator Assembly units with a total dollar value of $89,446.80.

Delivery Order SPRDL1-20-F-0335 awarded 04 August 2020 to Freightliner of Savannah, Inc. for a quantity of 19 each Modulator Assembly units with a total dollar value of $42,487.23.

Delivery Order SPRDL1-22-F-0034 awarded 08 April 2022 to Freightliner of Savannah, Inc. for a quantity of 32 each Modulator Assembly units with a total dollar value of $72,995.84.

Delivery Order SPRDL1-22-F-0243 awarded 30 August 2022 to Freightliner of Savannah, Inc. for a quantity of 18 each Modulator Assembly units with a total dollar value of $41,060.16.

Indefinite-quantity Contract Number: SPRDL1-17-D-0095 Contractor: Freightliner of Savannah, Inc. (Authorized Daimler Distributor) Award Date: 12 July 2017 Competitive Status: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

The following delivery orders were places by DLA Land Warren under Indefinite-quantity Contract SPRDL1-17-D-0095:

Delivery Order SPRDL1-17-D-0095 0001 awarded 01 August 2017 to Freightliner of Savannah, Inc. for a quantity of 20 each Modulator Assembly units with a total dollar value of $51,899.00.

Delivery Order SPRDL1-17-D-0095 0002 awarded 31 January 2018 to Freightliner of Savannah, Inc. for a quantity of 29 each Modulator Assembly units with a total dollar value of $60,202.84.

Delivery Order SPRDL1-18-F-0070 awarded 28 September 2018 to Freightliner of Savannah, Inc. for a quantity of 27 each Modulator Assembly units with a total dollar value of $58,291.92.

Delivery Order SPRDL1-19-F-0209 awarded 13 March 2019 to Freightliner of Savannah, Inc. for a quantity of 25 each Modulator Assembly units with a total dollar value of $53,974.00.

Delivery Order SPRDL1-20-F-0141 awarded 15 February 2020 to Freightliner of Savannah, Inc. for a quantity of 18 each Modulator Assembly units with a total dollar value of $40,409.28.

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