2021-057 TEREX JA-Recompete 2021 8.02.2021 Redacted PCO cmts_Redacted.pdf

OPSEC: Locations

OPSEC: Locations and Equipment capabilities, limitations, and vulnerabilities.

OPSEC: Locations

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OPSEC: Locations and equipment capabilities, limitations, and vulnerabilities.

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Terex provided three FSRs over the previous nine years that are uniquely qualified to provide Specialized Repair Activity (SRA) capability, which is the lowest level of maintenance that can perform the complete repair of specific items. FSRs are specifically trained in the operation, maintenance and troubleshooting of the MAC 50T Crane. The Terex support structure in theater has an established base of technical documentation, personnel, and tooling.

Standard processes often utilized to establish equipment sustainment capabilities other than reliance on Terex would require extensive lead times and considerable funding.

b. Since the Government does not own the TDP or service manuals, the Government would need to develop maintenance procedures above unit level, which would include reverse engineering repair processes for major components that are routinely coded as SRA. Based on prior Program and engineering experience, reverse engineering of the maintenance and repair procedures would conservatively require 36 months. Cataloging of the repair parts could be expected to take an additional 15 months, but not concurrent with the reverse engineering. Catalogued parts would likely be identified for management by the Defense Logistics Agency (DLA). Given the low density of the equipment, demand levels for the parts would be insufficient to justify DLA to stock inventory. Administrative lead-time for parts not held in DLA inventory, especially for first time procurements, is estimated to take 18 months based on historical information. If items could not be reversed engineered, the OEM would remain the sole source of supply. Finally, specialized support would need to be obtained to provide unit level operator/maintainer training, technical inspection and assessment of the Crane and perform maintenance and repair.

Availability of this training, inspection, maintenance, and repair capability from third party vendors would be contingent on the lengthy development of maintenance and repair procedures as noted above.

6. Efforts to Obtain Competition:

a. Effective competition: Competition will not be pursued for this acquisition for the reasons stated in paragraph 5 above. The Government will post all notices required by FAR 5.201 for this action and any responses received will be considered by the Government.

b. Subcontracting competition: Terex Corporation is a Large Business performing in the U.S. and a small business subcontracting plan is required to be submitted as part of the initial proposal IAW FAR Clause 52.219-8 and 52.219-9. The contract will contain FAR Clause 52.244-5 entitled “Competition in Subcontracting”, which ensures that the prime contractor competitively subcontracts the efforts to the maximum extent possible.

7. Actions to Increase Competition: The Government will continue to perform market research for any future requirement for FSR support, to determine the capability of industry at that time.

8. Market Research: Pursuant to FAR 10.001 (b)(2)(ii), ACC-DTA posted a Sources Sought Notice (SSN) on 5 March 2021 to investigate potential MAC 50T Crane suppliers capable of meeting the Army’s requirement. ACC-DTA posted the SSN to beta.Sam.gov where prospective contractors may find current Government contracting opportunities. ACC-DTA received thirteen responses prior to the closing date of 22 March 2021. Twelve responses were deemed incomplete due to failure to address the entire questionnaire or that their response lacked the logistics and technical experience required for the effort. One respondent, Terex, provided a response that was deemed very relevant as Terex’s prior logistics experience is essentially the same as the effort required under the proposed contract.

Terex Corporation, based its response on the work they have performed the past three years on the current MAC 50T Crane FSR contract W56HZV-18-D-0031.

Terex also manufactured and delivered all of the MAC 50T Cranes to both the US Army and USMC under prior production contracts. Terex has supported the service, maintenance and training tasked on all of the MAC 50T Crane assets in the for the past three years with three FSRs. Because of their prior and current experience supporting MAC 50T Cranes in the Terex has the ability to deploy FSRs to inspect, evaluate and maintain the MAC 50T Crane fleet, provide unit operator and maintainer training, manage large parts inventories, troubleshoot, and repair deadline cranes, all with no break in service or unacceptable delay.

Terex is the only source available to provide the qualified FSR support that is critical to operations. Terex FSRs have the knowledge, training and reach-back capability to the corporate technical support base should there be a need to address complex diagnostic or repair issues. As Terex is the current service provider, award of a sole source contract is the only option available to provide continuous support for the Army without an unacceptable delay.

9. Interested Sources: Other than the responses to the Sources Sought Notice detailed in the Market Research section above, the Government has not identified any other source possessing the degree of expertise required to perform these services for the current action without an unacceptable delay.

10. Other Facts:

a. Procurement history:

(1) ACC-DTA awarded a Modification to extend contract W56HZV-18-D-0031 on 21 January 2021 on a sole source basis to Terex Corporation for $790,319.59 to provide FSR support for the MAC 50T Crane for

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The J&A for this procurement cited FAR 6.302-1, Unacceptable delays in fulfilling the agency’s requirements, and was approved by Ms. LaRuth Shepherd on 01 December 2020. The current contract’s Period of Performance ends 24 July 2021.

(2) ACC-DTA awarded contract W56HZV-18-D-0031 on 24 January 2018 on a sole source basis to Terex Corporation for $4,861,327.00 to provide FSR support for the MAC 50T Crane for The J&A for this procurement cited FAR 6.302-1, Unacceptable delays in fulfilling the agency’s requirements, and was signed by Ms. LaRuth Shepherd on 20 December 2017. The Period of Performance ended 24 January 2021.

(3) ACC-DTA awarded contract W56HZV-12-D-0041 on 2 February 2012 on a sole source basis to Terex Corporation to provide FSR support for the MAC 50T Crane for the The contract was subsequently extended twice. The J&A for this procurement cited FAR 6.302-1, Unacceptable Delay, and was signed by Ms. LaRuth Shepard on 06 JUN 2011. This contract expired on 24 January 2018. It was followed by the current contract, W56HZV-18-D-0031.

(4) ACC-DTA awarded contract M67854-10-D-5024 on 12 November 2009 on a sole source basis to Terex by the USMC to provide Contractor Logistics Support (CLS) to include Field Service Representatives (FSRs) for the MAC 50T Cranes utilized by US military forces within the as well as USMC CONUS assets. The statutory authority for the sole source procurement was 10 U.S.C. 2304(c) (1) per FAR 6.302-1. The Period of Performance (POP) ended 12 November 2011.

11/12. Technical/Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

NAME: Kiemba A. Knowlin DATE: 21 April 2021 TITLE: Director of Logistics

Program Manager Force Projection SIGNATURE: //KK//

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13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable. The contract price will be determined by a price comparison to previous contract actions along with a price analysis and a comparison of the proposed price to the Independent Government Cost Analysis. FAR 15.403-1(c)(3)(i) does not require the submission of certified cost or pricing data for this extension action for commercial services.

NAME: Shane C. Strehler DATE: 22 APR 2021 TITLE: Contracting Officer SIGNATURE: //SCS//

14. Contracting Officer Certification:

I certify that the facts and representations under my cognizance, which are included in this J&A, are accurate and complete to the best of my knowledge and belief.

NAME: Shane C. Strehler DATE: 22 APR 2021 TITLE: Contracting Officer SIGNATURE: //SCS//

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