JA_V903 Engines 23-R-0089_Redacted.pdf

JA-00636 - W56HZV-23-R-0089 - Previous J&A: no

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

JA-00636 - W56HZV-23-R-0089

1. Contracting Agency: Army Contracting Command-Detroit Arsenal (ACC-DTA).

2. Description of Action: ACC-DTA proposes to award a new Firm-Fixed-Price contract to Cummins, Inc., Commercial and Government Entity (CAGE) 04MP1, for National Stock Number (NSN) 2815-01-631-9826, Engine, Diesel, using Army Working Capital Funds (AWCF). This contract may be awarded incrementally through modifications. The rationale for limiting competition applies to any incrementally awarded effort described herein.

3. Description of Supplies/Services: The Engine, Diesel, NSN 2815-01-631-9826, part number 57K8188, is used on the Bradley A4, Self-Propelled Howitzer Systems (M109A7/M992A3), Armored Multi-Purpose Vehicle (AMPV), and Multiple Launch Rocket System (MLRS).

The supplies to be acquired under the proposed contract are remanufactured Cummins V903 Series Diesel Engines which will be converted from existing Government assets of National Stock Number (NSN) 2815-01-623-7417 Engine, Diesel to NSN 2815-01-631- 9826 Engine, Diesel. The 675 horsepower (HP) diesel Cummins engine is located in the Power Unit or Engine compartment. The Variable Turbine Area (VTA) 903T engine powers the transmission, which drives the vehicle tracks. The base quantity for this effort is each with an option quantity of each. Based on a similar program's Independent Government Cost Estimate (IGCE) with a provided unit price of $ each, the total estimated dollar value of the proposed contract is $5,254,581.30.

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 under Federal Acquisition Regulation (FAR) 13.5(a) Sole Source Acquisitions, “Simplified Procedures for Certain Commercial Items”. This subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million, including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial products or commercial services.

5. Reason for Authority Cited: Cummins is the Original Equipment Manufacturer (OEM) of the commercial V903 series of engines and currently is the sole contractor with the capability to remanufacture (REMAN) the engine configuration that will be required under the proposed contract. The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement. The Cummins V903 series is manufactured on a dedicated line and is Controlled By: U.S. Army TACOM

Controlled By: Army Contracting Command CUI

Category: OPSEC

Distribution/Dissemination Control: FED ONLY

POC: steven.p.netter2.civ@army.mil a build to order product that over time has become unique to military hardware.

Cummins is a full-service vendor for the V903 series engines and has the technical capability to research, design and develop new engine configurations and production/remanufacture technique. Additionally, they have the manufacturing capability to produce and remanufacture the various V903 configurations, including labor skills, proprietary technical data and processes.

This manufacturing capability includes the required labor skills and Cummins exclusively-owned technical data, processes, and facilities. Additionally, only Cummins can provide the technical, engineering, and other product support dependent upon Cummins exclusively-owned design and manufacturing data. The Government does not have access to the Military Performance Curve (15434-FR3925), the Military Product Data Sheet (15434-DS-675-45), the Engine Installation Diagrams (15434-4348956, 15434-4349164, 15434-4349165, and 15434-4349166), or the technical data package that defines the latest configuration of the Cummins V903 (903E-675CDNC0-1). These documents are needed to complete the REMAN of the V903 Engine into the common spare configuration. The Government does not manage the configuration, which means it does not have access to these drawings, only Cummins does.

Cummins owns all technical data rights and drawings for this engine and is unwilling to sell any technical data rights to the Government. As a result of a 4 January 2024 inquiry to Cummins seeking a Specifically Negotiated License, on 24 January 2024 Cummins responded stating the technical data and computer software associated with the V903 Series Diesel Engine are wholly owned by Cummins, Inc (Cummins), and that currently, it is not interested in entering into any type of licensing agreement with the US Army to enable competition for overhaul and upgrade of the V903 Series Diesel Engine.

Due to the lack of technical data, the Government would have to reverse engineer the engine and develop the necessary technical data or otherwise establish the ability to overhaul/REMAN the engine at an Army Depot.

Engineering has performed an independent analysis to assess the feasibility of reverse-engineering of the V903 675 HP engine. This analysis took place in April 2023. This analysis resulted in a non-concur as the cost of accomplishing such an endeavor was deemed prohibitive. Engineering looked at the lowest cost alternative to going to Cummins. Reverse engineering was one of them along with depot overhaul. Depot overhaul turned out to be the less expensive option. There is no drop-in replacement for the Cummins V903 engine. A replacement engine from another manufacturer would require changes to the vehicles’ hulls, mechanical connections, wiring harnesses, cooling and fuel systems, and air intake and exhaust systems. Further, there are a limited number of available OEM engines on the market in the required HP range that could be modified to fit within the Bradley, MLRS, AMPV, or SPHS. A new replacement engine would require testing for performance and durability with military grade fuels under the modified North Atlantic Treaty Organization testing standards (i.e., elevated air and fuel temperatures). Also, replacement or modified engines must be compatible with the current Hydro-Mechanical Propelled Transmission manufactured by RENK America or would also require a change in transmission. Extensive analysis, testing, to maximize competition at the subcontract level and all future awards will include FAR Clause 52.244-5, “Competition in Subcontracting.”

8. Market Research: A sources sought notice was posted to SAM.gov on 4 April 2023 and was open for 13 days, closing on 17 April 2023 seeking industry capability to re-manufacture the Cummins V903 engine into a common spare. Two interested vendors, Atlantic Diving Supply (CAGE 1CAY9), and MTP Drivetrain Services (CAGE 3WXD8), which are both small businesses, responded to the survey. Additional questions were sent out to the two respondents of the market survey on 27 July 2023. These additional questions were as follows: “As stated within the Section 7 of the Sources Sought Notice, the vendor must have the ability to remanufacture Diesel Engine, National Stock Number 2815-01-631-9826, without a Government provided Technical Data Package and limited Government technical direction. This will require the vendor to have access to the necessary Cummins Technical data that defines the V903 Engine performance requirements and acceptance criteria. These would include the VTA903 CM2250 V105 Military Performance Curve (Document number 15434-FR3925), the VTA903 CM2250 V105 Military Product Data Sheet (Document number 15434-DS-675-45), the Engine Installation Diagrams (Document numbers 15434-4348956, 15434-4349164, 15434- 4349165, and 15434-4349166), and the TDP that defines the latest configuration of the Cummins V903 (Part number 903E-675CDNC0-1). Engines re-manufactured by any company other than Cummins would void the Cummins Industrial Warranty.

On 7 August 2023, Atlantic Diving Supply responded stating that they were going to utilize their Public Private Partnership (PPP) with RRAD to perform the work. This is not sufficient as there is a

This means that Atlantic Diving Supply would not be able to complete the work.

The same day, vendor MTP Drivetrain Services also responded. MTP Drivetrain Services stated that they do not have access the drawings mentioned in the additional questions. Without access to the drawings, MTP would not be able to accurately or correctly perform the work necessary to change the Cummins engines into the common spare.

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

10. Other Facts:

a. Procurement History: ACC-DTA has awarded the following contracts since 2009 for Cummins V903 Series Diesel Engines which include multiple variants of new and remanufactured (REMAN):

(1) Contract Date Total Amount

W56HZV-23-D-0048 21 July 2023 $ 347.4M