JA_SPRDL1-25-R-0041_Redacted.pdf

SPRDL1-25-R-0041 (JA-00852)

Previous J&A: SPRDL1-20-R-0295

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-25-R-0041

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to an offeror providing the product of Tecmotiv (USA) Inc, Commercial and Government Entity (CAGE) 0L7R7; or Renk America LLC, Commercial and Government Entity (CAGE) 02978, the approved sources for National Stock Numbers (NSN) 2520-01-422-4200 & 2520-01-424-6732. Purchase Request Order Numbers EH4C0429EH Cooler, Fluid, Transmission, (Transmission Oil Cooler) and EH5C0201EH Cooler, Fluid, Transmission, using Army Working Capital Funds

3. Description of Supplies/Services: The NSN 2520-01-422-4200, part number 388010092; E9AR106-003, Cooler, Fluid, Transmission, (Transmission Oil Cooler), is used on the Recovery Vehicle, M88A2. The NSN 2520-01-424-6732, part number 388010091; E9AR106-002, Cooler, Fluid, Transmission, (Transmission Oil Cooler), is used on the Recovery Vehicle, M88A2. The combined deliverable for the base and option contracts is a total quantity of 174. The combined total estimated value of this contract is .

PRON EH4C0429EH EH5C0201EH

Item Name Cooler, Fluid, Transmission

Cooler, Fluid, Transmission

NSN 2520-01-422-4200 2520-01-424-6732

Manufacturer Part Number 388010092;

E9AR106-003

388010091;

E9AR106-002

Government Part Number NA NA

Cage Code 0L7R7;02978 0L7R7;02978

Contract Type FFP FFP

Unit Cost

Yearly Usage

Basic Quantity 46 41

Basic + Option Total Qty 92 82

Basic Contract Cost

Total Contract Cost

Acquisition Method Code (AMC):

3 - Acquire, for the second or subsequent time, directly from the actual 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.

AMSC 3, 4, or 5 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(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.

5. Reason for Authority Cited: The Transmission Oil Cooler is a of the highly specialized transmission used on the unique M88A2 towing and recovery system. The design of the Transmission Oil Cooler is

. Development of a similar component would be required , while

The Government does not have rights to the Technical Data Package (TDP) or specifications.

Only the identified sources Renk America LLC and Tecmotiv (USA) Inc have demonstrated the requisite technical and engineering expertise to provide the Transmission Fluid Cooler. They have demonstrated unique and proven manufacturing capabilities required to repetitively produce the Transmission Oil Cooler. In addition, while no TDP is available for the cooler, the approved source item has met U.S. Army M88A2 vehicle performance requirements.

This is required as

, and resulting in

. If another possible source of supply for this item were identified, qualification testing would be required. A TDP of the Transmission Oil Cooler has not been developed for competitive use.

There are currently to acquire the data to support a competitive acquisition. The Government does not own the performance specification(s), manufacturing knowledge or TDP needed to develop the Transmission Oil Cooler(s). The TDP is

. A significant amount of time and money

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in Section 5 above the Government is not pursuing competition for this item. SOLE SOURCE: Notices required by FAR 5.201 will be posted.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 6 November 2024 and was open for 15 days. Two responses were received, but only one response expressed interest through providing the requested and necessary information for verifying capability. The only response showing interest and capability was received from the intended supplier, Tecmotiv (USA) Inc.

In accordance with the tenets set forth in FAR 10.002(b)(2)(vii), market research was performed by the Ground Vehicle Systems Center (GVSC) on 8 August 2024.

An internet search using keywords “heavy duty oil cooler manufacturer” was performed to identify manufacturers who have existing products that could fill this procurement.

Keyword: Heavy Duty Oil Cooler Manufacturer

Website: https://www.akg-america.com/products/oil-coolers/

Findings: While there are several commercial options available for both PRONs, without a TDP The Government is unable to determine if available commercial-off-the-shelf (COTS) items fit the space claim or performance requirements of the platform.

Website: https://www.modine.com/markets/oil-cooler-products/

Findings: Without a TDP the Government is unable to determine if COTS items fit the space claim or performance requirements.

Website: https://catalog.hydac-na.com/category/coolers-air-cooled--standard-

Findings: Without a TDP the Government is unable to determine if COTS items fit the space claim or performance requirements.

The Contracting Officer made the determination that the Cooler, Fluid, Transmission, (Transmission Oil Cooler), is an “other than” commercial item, based on Market Research and Procurement History.

9. Interested Sources: Responses to the Sources Sought Notice are summarized below:

Tecmotiv provided:

-CAGE code, Data Universal Numbering System (DUNS) code, physical address, government sales point of contact and contact information, confirmation of small business status, and place of performance.

-Expertise in manufacturing this item: “Tecmotiv supplied 24 each of this NSN to Tank Automotive Command previously against 2022 contract SPRDL123P0010.

Furthermore, Tecmotiv is one of the approved sources for this NSN.”

-Delivery Capability: 300 days after award

BHPE LLC. responded to the Sources Sought, but did not provide the requested information or any other substantial evidence that verifies that they have the experience, qualifications, or capability for manufacturing and providing the intended item.

10. Other Facts: Procurement History:

NSN: 2520-01-422-4200

Contract Number: SPRDL1-23-P-0010 Award Date: 6 December 2022 Contractor: Tecmotiv (USA) Inc.

Contract Value: $146.628.24 Competitive Status: FAR 6.302-1, Only One Source

Contract Number: SPRDL1-20-P-0170 Award Date: 26 August 2020 Contractor: EOS Inc. (Distributor) Contract Value: $221,536 Competitive Status: FAR 6.302-1, Only One Source