JA_SPRDL1-20-R-0033_Redacted(1).pdf

DDEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

J&A SPRDL1-20-R-0033

(Previous J&A (W56HZV-08-R-0352) W56HZV-09-D-0025 is available.)

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: Defense Logistics Agency Land Warren (DLA-WRN)

2. Description of Action: The proposed contract action is to award a new, firm-fixed-price contract for the HEMTTA2/A2R1 engine (NSN: 2815-01-500-0668). This item is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE:

19207) PN: 57K4539, which is a kit drawing listing two items; the HEMTTA2/A2R1 engine and the storage container. The container has a competitive drawing package, but the engine does not. The sole source of the engine is Oshkosh Defense, LLC (CAGE 75Q65, formerly 45152) for the engine PN: 3365073. The engine cost is over 80% of the total value of this kit. The Government-owned top drawing is incomplete, and it only provides the part number for the engine with no other technical details, which is the reason why this item cannot be procured competitively. The engine from Oshkosh is not commercial-off-the-shelf (COTS) because the Government does not own the technical data of the base engine, electronic controller, and the parts to dress it for use on the HEMTTA2/A2R1 vehicle.

3. Description of Supplies/Services: The contractor Oshkosh Defense, LLC (CAGE:

75Q65) shall provide the containerized engine (NSN: 2815-01-500-0668) used on the HEMTTA2/A2R1 vehicle. The maximum value of this firm-fixed price contract is for a total of 566 units.

Acquisition Method Code (AMC) 3: Acquire, for the second or subsequent time, directly from the manufacturer.

Acquisition Method Suffix Code (AMSC) D: The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMC's 3, 4, or 5 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: The U.S. Government does not own or have rights to the detailed technical data for NSN: 2815-01-500-0668, which drawing only calls out the vendor part number for the engine. The following research shows justification for the need to limit competition to a single source based on cost and lead-time of reverse-engineering or development of a new engine, which will directly affect the readiness of the HEMTTA2/A2R1.

(i) Reverse-Engineering (RE) and Remanufacturing Costs

The Ground Vehicle Systems Center (GVSC) Sustainment Engineering Team has received input from the GVSC Ground Vehicle Power and Mobility (GVPM) engine subject matter experts, and it was estimated that reverse engineering the HEMTTA2/A2R1 engine would cost an estimated $40 million with a lead time of no less than 60 months for design, development, testing, and technical data development. A breakdown of the recommended development and testing is below:

Action Time Costs

Reverse-Engineering Engine 36 Months $28,000,000.00

RAM Vehicle testing (3 vehicles at 5000 miles per vehicle)

24Months (included in 36 months above)

$3,000,000.00 (included in $28M above)

NATO 400 Hour Test (3 vehicles)

8 Months

$750,000 .00

Full Load Cooling Test (3

4 Months

$850,000.00

Cold Test (3

6 Months

$7,250,000.00

Develop Technical Data Package

6 Months

$2,500,000.00

Total Development Time

Approx. 60 Months

$39,350,000.00

In addition to the cost and delay for a Research and Development (R&D) action or reverse engineering effort, GVSC estimates that it would take approximately one additional year to establish another source to procure these kits on a competitive basis.

Based on the above findings, GVSC engineering does not recommended the reverse engineering course of action for the HEMTTA2/A2R1 engine. Even if this was feasible, TACOM ILSC would be faced with the same issues of logistics, sustainment, and future main supply route (MSR) levels required to retain engine capabilities for any engine replacement.

(ii) Research and Development (R&D) costs:

Before embarking on the research and development of a new Army proprietary engine to replace the current HEMTTA2/A2R1 engine, a comprehensive set of HEMTT requirements reflective of the latest vehicle configurations would need to be generated (estimated 4 months). A marketing survey and production sourcing studies would also need to be completed (estimate 3 months). CAD drawings (or laser scans) of the original engine, transmission, intake and exhaust systems would need to be acquired/made (estimated 4-6 months} for purposes of configuration management and to minimize vehicle integration efforts. Total time required to complete preparation tasks is estimated to be 11-13 months.

These requirements would then need to be written into a competitive Request for Proposal (RFP) with 12-18 months required to write the proposal, solicit offers, and complete evaluations.

Based on the development time and costs associated with experience gained from the Army's Advanced Combat Engine (ACE) program, the expected maturation of a clean sheet engine design from TRL 1 to TRL 9 (low rate production) could take as long as 6- 8 years, with a cost approaching $120-$150 million. Purchase price of a new engine is largely dependent upon the amortized costs associated with capital tooling and facilities investment cost required to produce a specified quantity of engines ordered. Because of the low volume production expected for a vehicle configuration that is out of production (with future demands dwindling), the costs cited above will result in a substantial per unit price increase (estimate 10-20X increase}.

Therefore, GVSC engineering does not recommend Research and Development into a new HEMTTA2/A2R1 engine.

(iii) Unacceptable Delay:

If the procurement of the HEMTTA2/A2R1 engine is delayed until the TDP is developed by the Government, there would be an unacceptable delay of a minimum of five years in fulfilling this requirement. The five-year delay is a result of the time required to develop items of equivalent performance explained previously in this document. Further delay in providing this engine will negatively impact our force readiness and capability to actively support mission efforts for the HEMTTA2/A2R1. Oshkosh is currently the only source that can meet the requirements without substantial duplication of cost and without unacceptable delay against this action. The approved source has the requisite technical and engineering expertise to perform all efforts required to provide the NSN identified in this Justification and Approval (J&A). The contractor developed the fully dressed engine identified on this document without assistance from the Government. Furthermore, if a project to make this item competitive was rushed through without proper testing and validation, there would be an increased risk of a premature failure of this item in the field which could result in an extensive loss of the equipment through destroyed engines or mating components.

6. Efforts to Obtain Competition: This action is limited to Oshkosh Defense, LLC (CAGE: 75Q65), the owner of the intellectual property and manufacturers of this item. No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

7. Actions to Increase Competition: There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a fully-defined and validated technical data package for this item. The source of supply, Oshkosh Defense, LLC (CAGE: 75Q65), owns the detailed technical data regarding this item. Any vendor that believes they can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse-engineering, testing, and all other efforts to become a secondary approved source will be at their own expense.

8. Market Research: The Government has no funding to qualify additional sources, and thus any qualification would be done at contractor's expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office. Given that no detailed technical data is available for the HEMTTA2/A2R1 Engine (NSN: 2815-01-500-0668), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during October of 2019.

This engine is a dressed engine (by Oshkosh) of a Detroit Diesel Series 60, inline-6 four stroke diesel engine with the proprietary Detroit Diesel Electronic Control IV (DDEC IV) system, which is the latest, most-advanced electronic controller to date available on these engines. Competing power plants for this specific engines are Caterpillar C11 and C12 engines, as well as Cummins ISM series engines. The DDEC IV electronic controller is proprietary to Detroit Diesel, and is not available on competing engines. The components that Oshkosh uses to dress the engine for the HEMTTA2/A2R1 are also proprietary with no technical data available to the Government. Installing engines of different types in the HEMTTA2/A2R1 other than the current dressed Oshkosh engine would require extensive reconfiguration of the electronic control module (including reverse-engineering of the software), mounting characteristics inside the vehicle, and an impact to all electrical, fuel, oil, and hydraulics connections. Based on the rationale, this engine cannot be viewed as a COTS item.

9. Interested Sources: A Sources Sought Synopsis was requested to FedBizOpps on 16 OCT 2019. To date, there has been no response or inquiries as a result of this posting:

Sources Sought Notice 2020-017

Sources_Sought_N otice_2020-017.pdf

Item Name: DDEC IV Engine w/Container

NSN: 2815-01-500-0668

Part No: 57K4539 Quantity: 566 End Item: HEMTT A2

FedBizOps link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=fd200b7f85bf0c145beb3fa3b90305d e&tab=core&_cview=0

FBO_Sources-Soug ht_16OCT2019.pdf

To date, no other sources have expressed an interest in providing the subject item.

Only the approved sources own the most current TOP part iteration (revision level).

Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-09-D-0025-0001 Award Date: 22 JUN 2009 Contractor: Oshkosh Corporation Value: $ 545,706.90 Competitive Status: Other than Full & Open

Contract: W56HZV-06-D-0058 Award Date: 18 JUN 2008 Contractor: Oshkosh Corporation Value: $ 22,588,500.00 Competitive Status: Unknown

Contract: W56HZV-04-C-0169 Award Date: 6 JAN 2004 Contractor: Oshkosh Corporation Value: $ 2,250,000.00 Competitive Status: Unknown

Contract: DAAE07-01-D-S014 Award Date: 13 SEP 2002 Contractor: Oshkosh Corporation Value: $ 531,252.00 Competitive Status: Unknown

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the HEMTTA2/A2R1 Engine

(NSN: 2815-01- 500-0668).

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: N/A

11. Technical Certification: I hereby 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.

[ ] $250K to $700K [ ] $700K - $13.5M [ X] $13.5M - $85.5M [ ] >$85.5M

POC:

Engineering Branch Chief Associate Director/Division Chief GVSC Executive Director GVSC Director

Email:

Title: Director, Transportation Systems PSID <$13.5mil Signature:

Date: 10/25/2019

Name:

Title: Director, CS&CSS, R&S Directorate <$93M Signature:

Date: 10/25/2019

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination will be based on appropriate forms of cost and/or price analysis.

Negotiations will be conducted as necessary. The Contractor will not be required to submit certified cost and pricing data in accordance with FAR 15.403-1(b)(3) as this has been determined to be a commercial item.

Name: Leah C. Bourdeau Title: Contracting Officer Signature:

//s// LCB Date: 04 Nov 2019

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

Name: Leah C. Bourdeau Title: Contracting Officer Signature:

//s// LCB Date: 04 Nov 2019

15. Legal Concurrence:

Concur:

Date: 11/07/2019

Approval Authority for Acquisitions Greater Than $13,500,000 but less than

$93,000,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Engine with Container

b. NSN: 2815-01-500-0668

c. Quantity: 566

d. Estimated Value:

This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 USC 2304(c)(1), and FAR 6.302-1 subject to the availability of funds, and provided that the property herein described has otherwise been authorized for acquisition.

Mark A. Brown, SES, Acquisition Executive

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.11.13 17:55:49 -05'00'