JA_SPRDL1-17-R-0524_REDACTED.pdf

VRRTFLT Equipment Est Dollar value:

Previous J&A W56HZV-08-R-0237

SPRDL1-17-R-0524

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above item. The only approved sources for the above item are:

a. Contractor Name: JLG Industries Inc. CAGE: 1YHH8 Part number: 6607534

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

a. Status of the Acquisition Data:

1. This procurement is for a quantity of replacement (spares) cylinder assemblies outlined in above Part I. This cylinder assembly is used in the Army’s 6K VRRTFLT that was previously manufactured by Trak International; now JLG Industries Inc. The Government does not own any technical data on this cylinder assembly. The Government’s identification data for this cylinder assembly is limited to NSN, part number, and the suppliers CAGE code. The Acquisition data for this cylinder assembly is not fully defined. The end item (6k VRRTFLT) was procured by the Government through a performance specification. The selection of the subcomponents that make up the end item is left to the end item manufacturer as part of their internal design effort. There is no technical data package for the end item or its subcomponents.

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

1. JLG Industries Inc. controls the proprietary data for this cylinder assembly. Procuring proprietary data is estimated to be in the many millions of dollars as the typical business case for a product like this includes the expectation of a revenue stream for the manufacturer that includes worldwide sales of complete cylinder assemblies and spare parts for many years.

Qualifying additional sources is viewed as more of a schedule delay issue for this type product and will be addressed below. The cost of procuring proprietary information is not expected to be recovered through subsequent competition.

Field demands for this cylinder assembly are in small quantities. This estimate is based on a general knowledge of the materials handling industry. There are funding constraints in that scarce resources are better directed to hardware procurement rather than procuring technical data for commercial products. We estimate 18 to 24 months would be associated with attempting to procure the required proprietary data or qualifying additional sources. This delay is unacceptable to meet the Government’s needs as it would prevent needed replacement cylinder assemblies to be delivered to field users and would impact the mission as machines would be non-mission capable. The end item is a vital part of the Army’s supply distribution mission.

2. This cylinder assembly is not feasible candidate for reverse engineering at this time. It is an assembly designed by an established commercial manufacturer. Reverse engineering the cylinder assembly is considered a costly and unnecessary high risk proposition since the cylinder assembly is already in the market and the reverse engineering process would be replicating the effort associated with its original design. The reverse engineering effort would take approximately 18 months or more, at a cost of $1,000,000. Also, the reverse engineered cylinder assembly would have to establish reliability comparable to the already existing design. This evaluation process would require testing that would add 12 months onto the previously estimated 18 months, and the cost of this testing is estimated at approximately $440,000. These costs would not be recovered by subsequent competition as the Army’s demand for this cylinder assembly is small and variable. The risk to the Government is high as there are limited resources to commit to this type effort. For a contractor, there is high risk in that a long detailed effort is required without the assurance that there would be enough demand for the final product.

3. The quantity requirements for this cylinder assembly are too small to justify the cost required to increase competition. This item does appear in the Competition Advocate Shopping List (CASL) dated 26 Jan 2017. This requirement is for replacement (spares) so developing a competitive effort, procuring proprietary technical data, or reverse engineering are not cost effective options.

c. Demonstration of Approved Contractor's Unique Qualifications:

1. The approved contractor for this cylinder assembly is JLG Industries Inc., who is the Original Equipment Manufacturer (OEM) of the 6K VRRTFLT. The cylinder assembly passed the unique testing of the Production Qualification and Verification tests for the 6K VRRTFLT, including the demonstration of supplying cylinder assemblies that fully met the 6K VRRTFLT performance requirements. The tests included reliability demonstrations, operating in cold and other environmental conditions, and performance suitability in an operational scenario. These tests were important and critical in that they demonstrated to the Army that the 6K VRRTFLT and therefore the cylinder assemblies were ready for fielding and incorporation into the Army’s supply distribution mission.

2. The 6K VRRTFLT manufacturer have other capabilities in that they have full knowledge and understanding of the critical relationships between the cylinder assemblies and the end item. The 6KVRRTFLT cylinder assemblies have interfaces with the machine structure providing the needed safety factors that ensure mission effectiveness and protect the safety of the soldier. This knowledge assures the Government that replacement cylinder assemblies will be easily incorporated into the machine reducing time for other adjustments and troubleshooting.

3. Using a contractor without the unique qualification listed here introduces risks to the Government. Cylinder assemblies not ready to perform would prevent the end item from returning to full mission capable status. This would seriously impact the Army’s capability to move shipping containers as part of its supply distribution mission. Associated with this lack of capability would be shortage of supplies like food, water, and spare parts that are to be delivered to soldiers deployed in the field.

d. Efforts to Qualify Additional Suppliers for future procurements:

1. This action is for procuring replacement (spares) cylinder assemblies

(as outlined above) for the Army’s 6K VRRTFLT. All resources are directed to acquiring hardware and there is no funding available from the Army for qualifying additional sources.

2. The Government does not own the technical data associated with the interface between the cylinder assembly and the end item 6K VRRTFLT. That information is governed by the relationship between the 6K VRRTFLT contractor and the cylinder assembly OEM. The Army quantity requirement for cylinder assembly is small and driven by field demands, so it appears that it is not a candidate for the Source Approval Program.

e. Market Research:

This item does appear in the Competition Advocate Shopping List (CASL) dated 26 Jan 2017. Computer based market research was conducted in the preparation of this document, without any additional sources being identified. A sources sought synopsis for this item was posted to FedBizOpps on 14 August 2017. As of this date we are not aware of other contractors expressing an interest in this item.

3. The POC for this action is .