JA Husky Wheel Limited Source_Redaction.pdf

CMO Control Number: 2020-108

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 Split Rim Assembly 20”x10” to either Titan Wheel Corp. or Hutchinson Incorporated. 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:

QTY: Estimated 2,620 ea. Split Rim Assembly 20”X10.0” Part Number: 12552762 REV.

C. Item will be delivered as a complete kit per the applicable drawing. The estimated total value of this procurement based upon the Independent Government Estimate (IGE) is $3,599,618.00

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 or services 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: Pursuant to FAR 6.302-1(a)(2)(ii)(B) provides that the agency’s need for the Husky Split Rim Assembly is designed and constructed specific to the Husky VMMD. Competition should be limited to avoid unacceptable delays in fulfilling the requirements for RRAD. TACOM reached out to several manufactures to redesign the Husky Wheel Assembly IAW drawing 12552762 Rev C with only Titan Wheel Corp. and Hutchinson Inc. responding for the development of the new design. Both manufacturers have submitted wheel samples for testing, and both are approved by TACOM engineering. Both have an approved DD Form 1694, Request for Variance (RFV), by the System Engineer at TACOM for the wheel assembly. Titan Wheel Corp. submitted a proprietary drawing to support that action.

Hutchinson Inc. withheld their technical data package. Both contractors have extensive knowledge in the tire/road-wheel assemblies for the Department of Defense, and the manufacturing will require specific tooling procedures and tooling formations for the manufacture of the items. It is important the process is done precisely and delivered without any undo delays. Any other interested vendor would have to submit their wheels for sampling and testing, causing severe delays to the acquisition. Allowing other sources of supply would prolong the current need for RRAD to build the assemblies by up to 270 days.

Description Time Build Dies(Molds), Order Steel sample material, Submit samples for testing

120 days

Testing at TACOM testing facility(Delivery, setup, testing)

30 days

Order Production materials (Steel), Start production, Initial delivery (Production Lead Time (PLT))

120 days

When a requirement is needed to manufacture a new or redesigned steel wheel, the manufacturer must create dies or a forming tools to create the shape of the wheels.

Ordering steel has the longest lead time for the process for the dies and the steel for the sample wheels. Once the samples are created, they are measured against the wheel drawings and then sent to TACOM for testing.

Coordination at the testing site is required where the wheels are assembled with a tire and all the parts for the assembly to be installed onto a vehicle. Testing equipment is mounted with the wheels that measure the revolutions while on the vehicle. A driving course is created, and various data elements are 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. Titan and Hutchinson have submitted samples for testing, and they are approved IAW approved DD Form 1694. 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 our 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. This acquisition shall be synopsized IAW FAR 5.201.

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: The Government will continue to conduct market research to assess the feasibility of other contractor’s 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: Various internet searches was conducted and produced no available sources for this wheel style. A sources sought was conducted through beta.SAM.gov from 25 June 2020 to 9 July 2020, and it produced no results. During Market Research phase, Titan Wheel Corporation and Hutchinson have history providing tracked and wheeled vehicle wheel components. TACOM contacted both vendors and expressed interest to supply the wheel assemblies During the Request for Variance process, both manufacturers expended time, money, and capabilities to qualify for this assembly and expressed interest and intent on bidding on this acquisition.

9. Interested Sources: No other sources except those listed in section in 8 above.

10. Other Facts:

a. Procurement History: An award, SPRDL1-12-C-0134, was made to Critical Solutions International, Inc., for 2,148 ea. for the entire Husky VMMD tire/wheel assembly on 1 June 2012 for a total contract value of $10,767,795.10. Manufacturer’s home facility is in South Africa and its SAM has since expired. As a result, data referencing the Rim Assembly has been included with the overall costs for the Tire/Wheel Assembly, and no information regarding the Rim Assembly alone has been located. Comparable Rim Assemblies have been referenced for this document in the IGE.

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

Title: Director of Logistics Signature:

13. Fair and Reasonable Cost Determination: ACC-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. The determination of fair and reasonable price will result from comparing the prices to similar items and comparing offered prices to the Independent Government

//JEB//

cost estimates. Details for the determination for Fair and Reasonable Prices will be documented in the Post Negotiation Memorandum that will be reviewed and concurred by Supervisory Contract Price/Cost Analysis.

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Typed Name: Robyn E. James Date: 14SEP2020

Title: Contracting Officer Signature:

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Robyn E. James Date: 14SEP2020

Title: Contracting Officer Signature:

//REJ//

//REJ//

Approval

Based on the foregoing justification, I hereby approve the procurement of 2,620 Split Rim Assembly 20”x10” each on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c) (2), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, “Only One Responsible Source and No Other Supplies or Service Will Satisfy Agency Requirements.” This approval is subject to the availability of funds, and provided the supplies and services herein described have otherwise been authorized for acquisition. The total estimated value of this procurement is $3,599,618.00.

X LaRuth Shepherd Competition Advocate