JA SPRDL124R0186 redacted_Redacted.pdf

SPRDL1-24-R-0186 (JA-00898)

No Prior J&As are available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-24-R-0186

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Cummins Inc., Commercial and Government Entity (CAGE) 15434, or an offeror providing the approved source for National Stock Number (NSN) 2950-01-386- 1566, Turbo Supercharger, Purchase Request Order Number EH4C0862EH, using Army Working Capital Funds.

3. Description of Supplies/Services: The NSN 2950-01-386-1566, part number 4025019, Turbo Supercharger, is used on the Bradley Family of Vehicles (FOV). This Turbo Supercharger is integral to M2A3, M3A3, M2A2 Operation Desert Storm - Situational Awareness (ODS-SA), M3A2 ODS-SA, and M7A3 Bradley Fire Support Team (BFIST). The deliverable for this contract is a base quantity of 123 each, with an option quantity of 123 each, making a total quantity of 246 each. The total estimated value of this contract is $ .

Acquisition Method Code (AMC):

3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC):

P - The data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(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: No other company has access to the proprietary technical data owned by Cummins, Inc. that is needed to properly produce this item.

Cummins Inc. is the sole owner of the drawings and technical data rights for Turbo Supercharger, part number 4025019. The government does not own proprietary rights to the Technical Data Package (TDP) that would be required to produce a competitive TDP. Cummins has developed, tested and obtained Government approval for this item for application to the Bradley Vehicle system at their own cost. The Government did not fund the contractor’s efforts in developing and testing this item.

Turbo Supercharger part number 4025019 is used on the Bradley Family of Vehicles (FOV) engines. It converts waste energy from the exhaust manifold into compressed air, which it pushes into the engine. This allows the engine to produce more power and torque and improves the overall efficiency of the combustion process. It is an integral part of the vehicles mobility . To qualify additional vendors, a significant amount of time and money would be necessary to reverse engineer, procure and test additional prototypes before releasing the TDP. This delay would severely impact the availability of the Turbo Supercharger in the field. This item is critical to the Bradley vehicles’ readiness.

Cummins Inc. is the original equipment manufacturer (OEM) for the Turbo Supercharger and has the manufacturing capability to produce, repair, and remanufacture the Turbo Supercharger. This manufacturing capability includes the required labor skills, proprietary technical data and processes, contractor-owned facilities (including plant equipment), and production/remanufacture (REMAN) techniques. The current supplier has qualified in accordance with all the necessary test requirements and performance parameters. The subject component part number 4025019 is installed in the Bradley FOVs to provide the necessary horsepower so that the vehicle can meet system level performance requirements such as vehicle speed, etc. A failure of the Turbo Supercharger under battlefield conditions could damage the vehicle’s engine, thus rendering

Due to the lack of a drop-in replacement and limited technical data available for the Turbo Supercharger, Reverse Engineering 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 Reverse Engineering process successfully, the Government would have to obtain a sufficient sample size of existing parts. Once a large enough sample has been collected, the Government would then tear down and understand the design, identify requirements, develop new design, conduct prototype development, execute testing, and then produce the final TDP. Leveraging data from V903 Critical Service Component Reverse Engineering study performed by the Ground Vehicle Systems Center (GVSC) Ground Vehicle Power and Mobility Powertrain group as a basis for the cost estimate, it was determined that the Reverse Engineering cost would include the following: $15K to obtain existing part samples, $70K for requirements development, $500K for developing new design, $290K for prototype fabrication, $2.5M to reverse engineer, $70K for component-level testing, $130K for 400-hour North Atlantic Treaty Organization engine testing, $2.25M for 5,000 mile vehicle reliability testing, and $600K to develop a TDP.

The Reverse Engineering effort would cost an estimated total of $6.425M.

In addition, there is always the potential for defects to surface during testing that could adversely impact the readiness of the equipment and further increase costs beyond the Reverse Engineering estimate. These additional costs would be very difficult to be recouped through subsequent competition. Furthermore, even if the reverse-engineering effort were to be successful, the Government would still incur excessive costs and lead-time delay for item.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a competitive TDP within a reasonable time frame. At the current average usage rate of 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 $6,425,000 cost of reverse engineering the item and validating a competitive TDP.

Calculation:

Payback = Cost to Reverse Engineer / Estimated Annual Savings

= Cost to Reverse Engineer / (AMD * 12 months * unit price * 25% savings) = $6,425,000 / ( * 12 * $ * 0.25) = $6,425,000 / $ = years

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above we are not pursuing competition for this item. 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.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 8 August 2024 and was open for 15 days until 28 August 2024.

DEVCOM Engineering completed web-based market research on 10 September 2024, searching for “Turbo Supercharger”. The following websites were visited and reviewed:

www.borgwarner.com www.turboneticsinc.com www.honeywell.com www.baesystems.com

Although these manufacturers have the capability to produce Turbo Superchargers, none of them currently produce a drop-in replacement for NSN 2950-01-386-1566 that would be compatible with the Cummins engine used in the Bradley FOV, they would require significant integration work to be performed and would still require validation testing to be performed. The cost of validation testing alone ($2,450,000) would preclude use of any other Turbo Supercharger besides Cummins part number 4025019, even before considering integration costs.

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

10. Other Facts: Procurement History:

Contract Number: SPE7LX-16-D-0023/SPRDL120F0269 Award Date: 30 July 2020 Contractor: Cummins INC Contract Value: $205,697.04 Competitive Status: FAR 6.302-1 only one responsible source

11. Technical Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

Name:

Title: Branch Chief, Medium Combat Sustainment (MCS) Signature:

11/7/2024

X

Signed by:

12. Requirement Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.

Name:

Title: Branch Chief, Procurement Signature:

11/1/2024

X

Signed by: USA

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 contractor may be required to submit other than certified cost and pricing data. This item has been determined to meet the FAR 2.101 definition for a commercial item and therefore certified cost and pricing data will not be required.

Name: Robert Harrison DLA LAND AND MARITIME (USA) Title: Contracting Officer Signature:

11/4/2024

X Robert W. Harrison

Signed by: DLA

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Robert Harrison DLA LAND AND MARITIME (USA) Title: Contracting Officer Signature:

11/4/2024

X Robert W. Harrison

Signed by: DLA