JA_Brand_Name__FAR_13.5_-_W56HZV18R0207__EH81L538EH_-_Redacted.pdf

Department of the Army Brand Name Sole Source Justification for Purchases using

Simplified Procedures for Certain Commercial Items (Using FAR Part 13)

1. Contracting Activity: The Army Contracting Command - Warren, Michigan is the procuring activity for this action.

2. Description of the Supply or Service Purchased:

Brand Name: Delco Remy Noun: Starter, Engine, Electrical

NSN: 2920-01-330-2061

P/N: 10478800 Total Maximum 5 Year Quantity: 1,578 Yearly Quantity Targets: 312 - 328 Total Estimated LTC Value: $565,461 Estimated Unit Price: $358.34

3. Dollar Amount: The estimated total value of the 5 year, firm fixed price (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) is $565,461. The type of funds is AWCF. The first delivery order, for ordering period one, is a quantity of 45 with an estimated value of $16,125.30 and will be awarded with the L TC.

4. Authority Cited: The statutory authority permitting other than full and open competition is 41 United States Code (U.S.C.) 1901 as authorized and implemented by FAR 13.501 (a) "Sole source (including brand name) acquisitions."

5. Reason for Authority Cited: This procurement is restricted for brand name, Delco Remy, for NSN: 2920-01-330-2061. All authorized Delco Remy vendors may compete for this procurement.

A main component of the Bradley Fighting Vehicle Mobility and Survivability Systems is the Power Unit Installation. The Electrical Engine Starter is a 4illlcomponent of the Power Unit Installation. Delco Remy is the-owner of the technical data package (TOP) and the technical data rights needed to fabricate the Starter. The Government does not own proprietary rights to the TOP that is required to manufacture the Starters. Delco Remy, at its own cost, has developed, tested, and obtained Government approval for the Starter to function with the BVFS. The Government did not fund Delco Remy's efforts in developing and testing this item.

Due to the limited performance and technical data available on the Electrical Engine Starter, Reverse Engineering is the only alternative the Government could use to increase competition through development of a competitive TOP. A significant amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design. Further, there is no funding to develop and qualify additional Electrical Engine Starter manufacturers for this effort. Even if a reverse-engineering effort is successful, the

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EH81L538EH: Sole Source Justification for Purchases under the SAT (Using FAR Part 13)

Government will incur excessive costs and lead-time delay. The cost to reverse-engineer the critical component is estimated at $2.8 M and three years to complete. Reverse Engineering the TOP includes, but is not limited to the following:

a. Estimated cost to reverse engineer the Electrical Engine Starter: $500,000

b. Estimated time to reverse engineer the Electrical Engine Starter: 1 year

c. Estimated cost to perform RAM vehicle testing: 3 vehicles at 5,000 miles per vehicle:

$1,800,000

d. Estimated time to perform RAM vehicle testing: 1 - 3 years (depends if it can be ran simultaneously)

e. Estimated cost to develop a Technical Data Package:$ 500,000

f. Estimated time to develop a Technical Data Package: 1 year

The Government does not have the funds available nor would the Government 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. At the current usage rate of 186 units per year, at the current unit cost of $358.34, and assuming the 25% saving achieved through competition, the $16,663 annual savings would take over 168 years to offset the estimated $2.8M cost of reverse engineering the item and qualifying another source. The consequential time delay of three years to reverse engineer, develop and test the new design, and qualify a new vendor would prohibit delivery of the Electrical Engine Starter in a time frame that would satisfy the Government's needs.

Currently, there is no stock on hand at the wholesale level and the monthl month.

Delco Remy does not contract with the U.S. Government and the Starter can only be procured through Delco Remy approved vendors.

6. Market Research:

a. TARDEC Sustainment Engineering conducted market research in July 2018. There are other Electrical Engine Starters available commercially, however, there is no identifiable replacement for this hardware.

b. In November 1999, Prestolite Electric manufactured a starter, P/N M001-7506ME;

however, PM AFV/TARDEC Engineering determined that this starter is not an acceptable alternative due to an improper fit with the BFVS.

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EH81L538EH: Sole Source Justification for Purchases under the SAT (Using FAR Part 13)

c. TARDEC Sustainment Engineering posted Sources Sought Notice 2018-662 to FedBizOpps on 20 July 2018 for 30 days. To date, no sources have written to express an interest in supplying a different Starter.

d. The Contract Specialist conducted additional market research for this acquisition:

i. IHS Haystack Gold was searched on 13 September 2018 and it revealed the item is Source Controlled to Delco Remy.

ii. The lnteragency Contract Directory was searched on 13 September 2018 using the NSN and no results were found.

iii. GSA Advantage was searched on 13 September 2018 and no information was found using the NSN or part number.

iv. Delco-Remy was called on 17 September 2018. Delco Remy confirmed it does not contract directly with the Government and indicated the part is available through its approved vendors. The vendor list is on the Delco Remy website, www.delcoremy.com.

v. As of 27 September 2018, three vendors have expressed interest in the synopsis that is posted on FedBizOpps.

- point of contact for this action is Dawn M. Hessell, dawn.m.hessell.civ@mail.mil,_

8. Contracting Officer Certification:

I certify this justification is accurate and complete to the best of my knowledge and belief.

JOSEPH REUBEN Digitally<igned by

• • JOSEPH.REUBEN.THOMAS.104

X THOMAS.104471 41181so

81 so ::;�018.10.2312'52:07

Contracting Officer

MAJ Reuben T. Joseph Contracting Officer

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