J&A_Redacted_SPRDL1-17-C-0070.pdf

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above item. The only approved source(s) for the above item is (are):

a. Contractor(s) Name: AM General LLC.

Cage: 34623 Part Number: 6048217

b. Contractor(s) Name: Dana Light Axle Products, LLC Cage: 63ZH0 Part Number: 2011412-1

2. Reasons the item is not suitable for full and open competition:

The differential, driving axle is for use in the HMMWV FOV with a serial number greater than 300,000 often referred to as a Rev B (Revision B) HMMWV. Rev B represents an incremental step in durability and reliability improvements that were incorporated into the entire vehicle system. These revisions were incorporated into production starting with HMMWV serial number 300,000. This differential, driving axle is one of those system improvements. This item can only be used on the most recent HMMWV variants, serial number 300,000 or higher and is not backwards compatible with the older HMMWV differentials due to improvements made to the differential cooling system. The Rev B rear differential is cooled by water provided from the engine coolant system where as older models were cooled with oil or not cooled at all. The reason that this water cooled variant provides an improvement over previous iterations is that we tie the cooling system into the vehicle Radiator/Fan system which allows for greater heat rejection and prevents thermal soak of the cooling fluid. The improvements realized in this variation of the HMMWV differential have improved the vehicle reliability by lowering the operational temperatures of the fluid in the differential, driving axle which has a direct impact on the longevity of the component.

a. Status of the Acquisition Data:

The Government does not own or have rights to the technical data for the Differential, Driving Axle. The TDP production specification data is not fully defined since the item was developed and tested at the OEM’s expense. Therefore, such data is considered proprietary to the above source. Since the HMMWV is out of production and the future demand for the rear differential is unknown, it is unlikely for the Government to recover the estimated reverse engineering costs through competition.

This HMMWV differential, driving axle is built by Dana Light Axle Products, LLC (OEM). All of the HMMWV differentials are supplied by Dana, including the one described within this document. The original HMMWV program acquisition strategy incorporated a combination of off-the shelf commercial parts, existing ordinance parts, and contractor developed parts to speed up the acquisition process and allow the Government to own some portions of the HMMWV, but not the full TDP. This strategy reduced research and development time as well as overall program cost. Thus, while the HMMWV FOV has a Technical Data Package (TDP), it is not all inclusive of every component of the vehicle system.

Further, the TDP does not include vendor developed components that were considered the intellectual property of the developer. A TDP for the differential, driving axle was not acquired with the vehicle TDP. Since this item was developed by the OEM, and at their expense, the technical information for this item is proprietary to the OEM. As such, the use of such descriptions in the acquisition is essential to the Governments’ requirement thereby precluding consideration of a product manufactured by another company.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

This action is limited to the OEM and their authorized dealers/distributors. It is expected this action will receive interest from the authorized dealers/distributors, which will also be considered. This action will be synopsized in FedBizOpps.gov in accordance with FAR Part 5.201. For the reasons cited in section 2 and 2.a., no further efforts to obtain competition will be taken.

c. Demonstration of Approved Contractor's Unique Qualifications:

Contractor has successfully made this item previously and there is currently no other contractor capable of making the item since the OEM owns the technical data.

d. Efforts to Qualify Additional Suppliers for future procurements:

Full and Open Competition is not a viable option because there are no current or planned efforts to qualify additional sources and there are no vendors in the process of being qualified to produce this rear differential at this time. It is unlikely for the Government to recover any costs associated with acquiring the technical data package or reverse engineering through a competitive contracting action because the HMMWV is out of Production, (i.e. it is in sustainment mode) and future demand for the differential is unknown.

e. Market Research:

The Project Engineer conducted a strategic search of available on-line sources.

Engineering has reviewed online catalogs and published product literature by manufacturers, and distributors, claiming to provide a suitable product for the HMMWV Rear Differential. This research has indicated that no other manufacturers or vendors being identified as having the capacity to meet the Government’s requirement of a drop in replacement that is in new condition, requiring no modification to the vehicle. Further, this is a low demand item and it would not be prudent for the automotive and heavy truck industry to modify an existing product to meet the Government’s need without steady demand.

Therefore, the result of this market research, coupled with the non-availability of fully defined technical data, require that this item be procured on a non-competitive basis from the current manufacturers for the replenishment of spare parts.

A Sources Sought Notice was requested on 12 January 2016. To date, no other sources have written to express an interest in becoming an alternate source for this NSN. The notices required by FAR 5.201 will be published and any proposals received will be considered.

3. The POC for this action is , Engineer, Pd-LTV, Ext.

4. Technical Certification: I certify that my supporting data are accurate and complete to the best of my knowledge and belief

Name:

Title: Engineering Branch Chief Signature: //s// Date: 11May2016

PART III - Requirements Certification

1. Per FAR 6.303-2(b), I certify that data provided on PRON EH57E086EH as to required quantities and delivery schedules are accurate and complete.

Item Manager: //s// Date: 13May2016

2. Requirements Certification - I certify that this data is accurate and complete to the best of my knowledge and belief.

Name:

Title: LTV Group Supply Supervisor Signature: //s// Date: 13 May 2016

PART IV - Contracting Information

1. Description of Action: The required item will be solicited on Request for Proposals SPRDL1-16-R-0059. It is proposed to negotiate a Firm-Fixed-Price contract with AM General LLC (CAGE 34623) for their part number 6048217 or with Dana Light Axle Products, LLC (CAGE 63ZH0) for their part number 2011412-

1. A TDP for the differential, driving axle was not acquired with the vehicle TDP.

Since this item was developed by the OEM, and at their expense, the technical information for this item is proprietary to the OEM.

2. Efforts to Obtain Competition: Although this procurement will be restricted to the above source(s), every effort will be made to obtain potential sources by synopsis through the FedBizOpps system.

3. Interested Sources: To date, no other sources have expressed a written interest in the acquisition of this item. Should potential sources respond to the synopsis in FedBizOpps, they will be evaluated by the appropriate engineering office as an alternate source.

4. The POC for this action is , OFFICE SYMBOL: ZGBC, Ext.

5. Fair and Reasonable Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Standard acquisition procedures will be followed to determine the contract price fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Certified cost or pricing data will not be required as the total dollar value for this procurement is under the threshold.

6. Contracting Officer Certification: I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Grover D. Easterling, Jr.

Title: Contracting Officer, DLA Land Warren Signature: //GDEjr// Date: 09 JUN 2016

PART V - Legal Concurrence

Concur: // // Date: 06/13/2016