eleased a request for quote (RFQ) for the short blocks to three prequalified suppliers of assembled tractor engines. However, only one supplier, ACE Manufacturing, Inc., showed an interest. ACE was a small startup company that was looking for work. In order to produce assembled R-208 engines, an investment in precision machinery of more than $1,500,000 would need to be made. ACE was willing to both invest in the necessary machine and guarantee at least 100 engines per month—provided TEMKO would contract with it as a sole source for the engines for the next three years. The price per engine would be $3,500 the first year, with an annual increase of 3 percent. TEMKO anticipated that they would need at least 1,000 finished engine assemblies per year for the next five years. As the purchasing manager for TEMKO,