JA Husky Run Flat Proprietary Source_Redacted.docx

Control No.: [Assigned by DfC] Program/Item: [Abbreviated Description] Estimated Dollar Value: $[Total estimated]

Control No.: [Assigned by DfC] Program/Item: [Abbreviated Description] Estimated Dollar Value: $[Total estimated]

CMO Control Number: 2020-109

DEPARTMENT OF THE ARMY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Army Contracting Command- Red River Army Depot (ACC-RRAD), Texarkana, TX 75507-5000 is the procuring activity for this action.

2. Description of Action: This action is to award a Firm Fixed Price contract for the purchase of Husky runflats from Hutchinson Industries, Inc. This acquisition is in support of Red River Army Depot (RRAD) Husky Wheel Assembly programs. Funding is Army Working Capital Fund (AWCF).

3. Description of Supplies/Services: The following will be procured in support of the Husky Wheel Assembly Programs performed at RRAD:

a. QTY: 2,620 ea. Husky Run flats P/N: VF-0633 Cage Code: 62161. This item is required for the assembly of the Husky Wheel shown on Drawing: 12651246_A.

The estimated total value of this procurement based upon the Independent Government Estimate (IGE) of $2,882,590.40.

4. Authority Cited: The statutory authority permitting other than full and open competition is pursuant to 10 U.S.C. 2304 (c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirements,” specifically, FAR 6.302-1(a)(2)(ii)(B) Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (B) Unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited: RRAD’s need for the above stated parts are governed by proprietary data exclusive to Hutchinson. No other manufacturer can produce this runflat. Any source other than Hutchinson would need to reverse engineer run flat P/N VF-0633, recreate the design and manufacturing data, and fully test the item in order for the run flat to perform as it is intended. No other source possesses the original rubber formula and specifications for it as well. TACOM has tested and authorized the use of VF-0633 exclusively for this Tire/Wheel system in accordance with drawing 12651246_A. Any other product would have to meet the testing requirements. Allowing other sources of supply would prolong the current need for RRAD to build the assemblies by up to 425 days.

Molds are designed to shape the runflat to fit into the tire/wheel assembly shape. Runflats are a solid piece of rubber, and a rubber compound is required to be developed that will endure the rigors of military requirements. Samples are submitted to TACOM, assembled in the tire/wheel assembly and then tested.

Testing of the runflats is an endurance test over different types of terrains, and various types of data is recorded. Upon a successful test, the manufacturer can be notified to proceed with production. However, if a test fails, the manufacturer will have correct the flaws to get the wheel to pass the testing.

RRAD is scheduled to rebuild an estimated 2,620 ea. tire/wheel assemblies for the Husky VMMD in accordance with TACOM drawing 12651246 Rev A. Drawings have export restrictions and are designated under Distribution Statement C classification. Drawing 12651246 Rev A specifically calls for the Hutchinson run flat, P/N VF-0633. This run flat is an essential part of troop and vehicle survivability, and it should perform as designed for the safety of the military personnel in the vehicle. Hutchison has many years of past performance in which extensive testing has been completed on their run-flats, and they own the proprietary data rights for this run-flat required in support for the Husky vehicle, including specific tooling and processes to supply RRAD production schedules. Hutchinson Inc. is not open to providing technical data for the manufacture of P/N VF-0633, and Sources Sought provided no additional manufactures interested in this action. Unacceptable delays caused by other manufacturers recreating the design and manufacturing data, and fully testing the item, would cause delays in providing this item to the program manager (PM) of the M1123 Husky Vehicle currently in use in several theaters. Currently, there is a rebuild program for this item supplying 100 per month which is not sufficient to maintain the Husky Fleet’s requirements of 200- 250 each per month. The unavailability of this item to the PM would cause these vehicles to be removed from service and would negatively impact Soldiers and US Army Mission readiness in several theaters.

6. Efforts to Obtain Competition:

a. Effective Competition: The Government does not plan to pursue competition for this action for reasons stated in paragraph five above. P/N: VF-0633 is specific to the VMMD tire/wheel assembly, and the requirements necessary to support the VMMD is exclusive to Hutchinson Inc. Hutchinson Inc. is not open to provide data on this item. In accordance with FAR 5.201, this action will be synopsized.

b. Subcontracting competition: The solicitation and contract will contain the following clauses: FAR 52.219-8 “Utilization of Small Business Concerns,” and DFARS 252.219-7003 “Small Business Subcontracting Plan (DoD Contracts).” To maximize competition at the subcontracting/vendor level.

7. Actions to Increase Competition: Due to the proprietary data and restrictions from TACOM requirements on drawing 12651246 Rev A, actions to increase competition will require RRAD and TACOM to do one of the following:

a. Post Sources Sought in search of more than one source(s) of supply that may provide an equivalent run flat to the required standards, to be included to the TACOM drawing 12651246_A.

b. Work with RRAD to determine whether RRAD has the capability to test/determine or Equal products.

The Government will continue to conduct market research to assess the feasibility of multiple sources ability to meet similar future Government requirements. Any additional information received will be considered to determine if a competitive acquisition should be conducted or to determine potential future requirements.

8. Market Research. Due to the proprietary data, TACOM or RRAD does not have any technical data to Hutchinson Inc. P/N: VF-0633. As of July 27, 2020, Hutchinson Inc., is not open in providing the technical data rights to the VF-0633. Hutchinson indicated interest in this action to the PM during market research, prior to the sources sought. The sources sought was conducted through beta.SAM.gov from 24 June 2020 to 8 July 2020 and produced no results.

9. Interested Sources: Hutchinson Industries Inc. is the Original Equipment Manufacturer for the stated supplies, and they have expressed interest in this acquisition prior to the sources sought. No additional manufactures showed interest via the sources sought and there are no alternate sources of supply.

10. Other Facts:

a. Procurement History: An award, W911N2-19-P-0074, was made to Hutchinson Industries Inc. for 150 ea. of this exact item on 15 August 2019 for a total value of $156,105.00. It was awarded under Sole Source for “Testing of run-flats from other suppliers would cause an unacceptable delay.” (No authority was included in the Contracting Officer’s Determination Memorandum for Sole Source for less than SAT posted on beta.SAM.gov.)

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.

Typed Name: Jamie Bass Date: 26AUG2020

//JEB//

Title: Director of Logistics Signature:

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. RRAD will use other-than-certified cost price data to determine that the price is fair and reasonable certified cost or pricing data will not be required due to the commercial exemption in FAR Subpart 15.403.

Typed Name: Robyn James Date: 15SEP2020

//REJ//

Title: Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Robyn James Date: 15SEP2020

//REJ//

Title: Contracting Officer Signature:

Approval

Based on the foregoing justification, I hereby approve the procurement of 2,620 each P/N: VF-0633 Hutchinson Runflat, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c) (1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirements, subject to availability of funds, and provided that the supplies and property herein described have otherwise been authorized for acquisition. The total estimated value of this procurement is $2,882,590.40.

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