JA-00844_SPRDL124R0165-FOIA_CS_Redacted.pdf
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- Redacted Justification & Approval (J&A)
- Solicitation number
- SPRDL1-25-R-0165
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This document is a Justification and Approval (J&A) for Other Than Full and Open Competition for a Defense Logistics Agency (DLA) contract. The procurement is for a Geared Hub Assembly (NSN 2530-01-562-8935) used on the High Mobility Multi-Purpose Wheeled Vehicle (HMMWV), with a minimum guaranteed quantity of 147 and a maximum five-year quantity of 3,675 units. The contract will be awarded to AM General LLC, who developed the technical data for this assembly and is the sole rights owner of the manufacturing processes and technical information.
The J&A highlights that no other sources were found during market research capable of producing a compatible geared hub assembly meeting the military's strict requirements. The estimated cost to develop an alternative source would exceed $3,000,000 and take 36 months. The contract will be a firm-fixed-price, five-year, indefinite delivery-indefinite quantity agreement, funded using Army Working Capital Funds. The procurement is being conducted under the authority of 10 U.S.C. 3204(a)(1), which allows for other than full and open competition, with the justification primarily based on the unique technical capabilities and proprietary data owned by AM General LLC.
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SPRDL1-24-R-0165 (JA-00844)
Previous J&A SPRDL1-19-R-0317 is available.
assembly line. This geared hub assembly has been designed to withstand both hot and extreme arctic/cold temperature operation, water submersion, endurance operations, and is compatible in geometrical fitment and operation with the HMMWW suspension, driveline, and wheel assembly components and systems.
The Government does not have the pertinent technical data to enable competitive re-procurement.
AM General LLC developed the technical data for this assembly and obtained the Government's approval for its use in the HMMWV at its own expense. The Government did not fund AM General, LLC to prepare fully detailed TDPs for full assembly nor subcomponents after approval. As such, AM General, LLC is the sole rights owner to the technical data and processes used to manufacture a conforming product to HMMWV system level requirements. The Government does not own proprietary rights nor intricate information to the fully defined TDP nor the manufacturing process, tooling, machinery, facilities, testing equipment, and experienced skilled labor needed to produce the final end-item.
Geared hub assemblies secured from this contractor have historically met the unique technical requirements of the HMMWV family of vehicles. This contractor developed the item identified without assistance from the Government, and has the qualities and capabilities (e.g., facilities, resources, manufacturing and development experience) to produce the item identified. A high degree of risk is associated with not using a source of supply with experience in producing a tested and qualified assembly which is critical to safety and enables optimal performance of suspension and driveline operation for the User. Failure of the geared hub assembly resulting from gear breakage, gear housing breakage, or internal component breakage could lead to loss of mission capability and loss of life. Therefore, geared hub assembly failure has negative connotations with respect to any Army mission.
To develop a competitive data package through an R&D effort will require procuring proprietary data and qualifying an additional supply source will entail a significant amount of funding, time, manpower, as well as identification, assisting, and auditing a different supply source. If funding were available, based on past experience, the estimated cost to research, develop, and fully qualify/test a compatible product from a new source exceeds $3,000,000 with a schedule setback anticipated to be 36 months.
The process would consist of the following:
6 months to retrieve full market research and to review sourcing package;
2 - 4 months to develop and staff a test plan;
12 - 16 months to coordinate test site scheduling, develop & complete bench/TDP testing equipment;
3 - 6 months to obtain and review all test reports and data;
6 months to develop the technical data package and provision the parts.
SPRDL1-24-R-0165 (JA-00844)
Previous J&A SPRDL1-19-R-0317 is available.
8. Market Research: A Sources Sought Notice was posted to SAM.gov on 17 July 2024 and was open for 15 days. To date, no other sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this NSN.
The U.S. Army Combat Capabilities Development Command Engineer completed web-based market research on 29 May 2024 searching for companies that manufacture geared hub assemblies to the requirements of stringent military applications which would be drop-in substitutes or replacements to the existing AM General sourced geared hub assemblies. This market research yielded no evidence (results) of any companies having an existing product that meets all requirements, interface, compatibility, and functionality of the current HMMWV Geared Hub Assemblies as defined on the source control Army Ordnance drawing 12529085 nor vehicle operational requirements defined on the HMMWV ATPD2099E System Specification Purchase Description.
9. Interested Sources: To date no additional sources have expressed interest in this item.
10. Other Facts: Procurement History:
Contract Number: SPRDL1-20-D-0060 Award Date: 27 January 2020 Contractor: AM General LLC Contract Value: $1,604,360.66 Competitive Status: FAR 6.302-1 only one responsible source
Contract Number: SPRDL117D0056 Award Date: 22 MAR 2017 Contractor: AM General LLC Contract Value: $3,107,155.27 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: PD LTV Engineering Branch Chief Email: @army.mil
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