JA_SPRDL1-25-R-0044_Redacted.pdf

SPRDL1-25-R-0044 (JA-00961)

Previous J&A: SPRDL1-17-R-0139 specialized technical expertise required for successful performance, making them uniquely qualified to meet the Government’s specific requirement for this procurement.

John Deere is the original equipment manufacturer (OEM) of the HYEX. The Cylinder Assembly in this procurement is the only item qualified and approved for the HYEX.

This performance is based on an understanding of the requirements of the item for supporting the HYEX performance, including power characteristics.

John Deere passed the unique testing of the Production Qualification and Verification tests for the HYEX, including the demonstration of supplying hydraulic cylinder booms that fully met the HYEX performance requirements. The tests included reliability demonstrations, operating in cold and other environmental conditions, The contractor has other capabilities in that they have full knowledge and understanding of the critical relationships between the hydraulic cylinder booms and the end item. The HYEX hydraulic cylinder booms have interfaces with the machine structure providing the

This knowledge assures the Government that replacement hydraulic cylinder booms will be easily incorporated into the machine, The quantity requirements for the Cylinder Assembly are too small to justify the cost required to increase competition. This requirement is for replacement (spares) hydraulic cylinder booms, so developing a competitive effort, procuring proprietary technical data, or reverse engineering are not cost-effective options. The hydraulic cylinder booms covered by this procurement are designed and developed by the OEM. 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 hydraulic cylinder booms and spare parts for many years.

The cost of procuring proprietary information is not expected to be recovered through subsequent competition because Tank Automotive and Armaments Command Life Cycle Management Command demands for these hydraulic cylinder booms are in smaller quantities This estimate is based on a general knowledge of the materials handling industry. There is funding constraints in that scarce resources are better directed to hardware procurement rather than procuring technical data for commercial products. We estimate would be associated with attempting to procure the required proprietary data or qualifying additional sources.

These hydraulic cylinder booms are not feasible candidates for reverse engineering currently. It is an assembly designed by an established commercial vendor. It is estimated as a high-risk proposition since the hydraulic cylinder booms are already in the market and the reverse engineering process would be replicating the effort associated with the original design of the Cylinder Assembly. The reverse engineering effort would take approximately at a cost of $500,000. Reverse engineered hydraulic cylinder booms would have to establish reliability comparable to the already existing design. This evaluation process and creating a competitive build to print technical data package (TDP) would need and an estimated additional $250,000. The total delay would be with a total estimated cost of $750,000. These costs would not be recovered by subsequent competition as the Army’s demand for these Hydraulic Cylinder Booms is small and variable. as there are limited resources to commit to this type of effort.

The Government would not be expected to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive build to print TDP within a reasonable time frame. There have been each of the Cylinder Assembly units purchased since

At the current average usage rate of units per year, a current unit cost of , and assuming 25% savings achieved through competition, the $ in annual savings would take about years to offset the estimated $750,000 cost of reverse engineering the item and qualifying another source.

Efforts to Obtain Competition:

Effective competition: Due to the reasons cited in Section 5 above, the Government is not pursuing competition for this item. Notices required by FAR

5.201 will be posted.

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 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

Actions to Increase Competition: There are no known funding efforts in progress at this time to develop the competitive technical data required to make the Cylinder

Assembly fully competitive. No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to time and funding constraints.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 15 November 2024, was open for 15 days and closed on 02 December 2024. Four responses were received, with assessment of the responses shown below:

Four responses were received from the vendors BHPE, Cavanaugh Government Group, CK Equipment Parts, and Melton Industries. Three of the vendors stated an interest in submitting a proposal for this requirement. Melton Industries was awarded prior purchase order SPRDL1-21-P-0025 for this requirement in August 2021. There were no responses received from vendors who are looking to be a potential alternate source of supply for this item.

The Ground Vehicle Systems Center Combat Engineering – Material Handling Equipment project engineer performed internet searches on 26 November 2024 searching for hydraulic cylinder booms that could meet the HYEX specifications.

Keywords used: “AT264214 HYEX 230” and “Hydraulic Cylinder Boom for HYEX 230 for sale”

Website: https://www.ebay.com/itm/166818918348

Findings: The keyword used for this search was the part number featured in this procurement. There were no results found for items for sale. The one website to populate that did list something for sale was eBay, which contained an access cover and not a hydraulic cylinder.

Website:https://www.hydrauliccylindersinc.com/equipment type/excavator/?srsltid=Afm BOorG-8peBjzNwIWmvSZYxCFxHGy-Q-S4MBSDqbPC6R-RvGg4Jh- Z&wpf filter equipment type=excavator&wpf fbv=1&wpf filter equipment manufactur er=john-deere

Findings: This market search resulted in the selection of a company selling new and used hydraulic cylinder booms across a line of Caterpillar equipment. None of the hydraulic cylinder booms listed are a candidate for the HYEX because they are not specified for the HYEX application.

Website: https://viequipmentltd.com/product/hitachi-zx230-boom-cylinder/

Findings: Hydraulic cylinders offered on this page are only for the bucket and thumb attachment. There are no hydraulic cylinders offered for the boom.

9. Interested Sources: Four responses from vendors were received in response to the Sources Sought Notice posted on SAM.gov. There were no responses received from vendors who are looking to be a potential alternate source of supply for this item. See the Market Research in Section 8 for the vendor inquiry details.

10.Other Facts: Procurement History:

(1) Procurement History

Contract Number: SPRDL1-22-P-0004 Award Date: 09 December 2021 Contractor: Kampi Components Contract Value: $225,278.04 (base and option value, no J&A required) Competitive Status: FAR 6.302-1, Only One Responsible Source

Contract Number: SPRDL1-21-P-0025 Award Date: 30 August 2021 Contractor: Melton Industries Contract Value: $165,500 (base value, no J&A required) Competitive Status: FAR 6.302-1, Only One Responsible Source

Contract Number: SPRDL1-19-P-0307 Award Date: 10 September 2019 Contractor: Kampi Components Contract Value: $231,648 (base and option value, no J&A required) Competitive Status: FAR 6.302-1, Only One Responsible Source

Contract Number: SPRDL1-18-C-0316 Award Date: 26 June 2018 Contractor: Melton Industries Contract Value: $234,600 (base and option value) Competitive Status: FAR 6.302-1, Only One Responsible Source

(2) The above buys were solicited and awarded under Other Than Full and Open Competition.

11. Technical Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.