JA_SPRDL119R0055_Redacted.pdf

J&A SPRDL1-19-R-0055

Justification and Approval for Other Than

Full and Open Competition

SPRDL1-19-R-0055

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

2. Description of Action: The proposed action is to award a new, three-year, firm fixed price, Requirements contract for Wheel, Pneumatic Tire (NSN 2530-01-584- 5955).

Competition will be limited to Hutchinson Industries, Inc., Defense and Security Division (Part: AS-0747-C, Cage: 62161) and the OEM, NAVISTAR DEFENSE, LLC (Part:

3866680C91, Cage: 338X5), the only approved sources of this Wheel, Pneumatic Tire.

This action is to be funded utilizing Army Working Capital Funds C-AWCF

3. Description of Supplies/Services: This procurement is for the Wheel, Pneumatic Tire utilized on the MAXX PRO DASH ISS vehicle.

Estimated Unit Price: $ Estimated Guaranteed Minimum Quantity: 114 Estimated Minimum Value: $ Maximum Quantity: 2,052 Total estimated maximum value of this contract: $

The Mine Resistant Ambush Protected (MRAP) vehicle was acquired to address the need to provide additional protection to U.S. military personnel deployed in the Global War on Terrorism. MRAP vehicles are designed with enhanced capabilities to protect occupants. MRAP vehicles were rapidly produced for immediate fielding to troops in the AOR. Due to the urgency associated with fielding the MRAP vehicles, fielding of Army vehicles was authorized under an Urgent Material Release. As such, the U.S.

Government (USG) did not secure full technical data and associated rights to MRAP vehicles. The MAXX PRO DASH ISS is a vital Army vehicle that is utilized in combat operations imperative to national security. Tire/wheel assemblies are critical to vehicle safety and maintaining high levels of vehicle availability/readiness.

AMC 3: Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC R: The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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-responsible source and no other supplies or services will satisfy agency

5. Reason for Authority Cited: The USG does not own or have rights to any of the technical data for the MAXX PRO DASH ISS. Navistar Defense LLC, the vehicle OEM, is the owner of the vehicle Intellectual Property (IP) and retains full rights in data for its technical data. Via a proprietary business arrangement with the vehicle OEM, Hutchinson Industries developed the subject Tire/Wheel Assembly in conjunction with the overall vehicle design. Consequential to this historical OEM-vendor compact, Hutchinson Industries retains ownership of the Tire/Wheel Assembly IP.

Tire/Wheel Assemblies are critical to vehicle safety and maintaining high levels of vehicle availability/readiness. Components for these vehicles were originally qualified as part of vehicular testing, including Production Verification Testing (PVT). This Tire/Wheel Assembly contains Central Tire Inflation (CTI) hardware which was developed with, and integrated into, the overall vehicle design architecture. Utilizing components from a contractor that has not been tested specific to this vehicle application could result in loss of tire air pressure, thus negatively affecting the performance of the vehicle. Air loss would cause poor braking and hazardous handling characteristics which may lead to loss of vehicle control and potentially vehicular damage and probable injury or death.

The TARDEC Tire Engineering Team has estimated that reverse engineering the Wheel, Pneumatic Tire would cost $2,000,000 - $3,500,000 for development, testing, qualification, production tooling, and wheel certification to develop a potential additional source. The Tire/Wheel Assembly is a fundamental part of the vehicle system which impacts braking, handling, and durability test performance. Components must be tested to certain specifications in order to be validated (e.g. Wheel SAE J1992, Assembly SAE J2014).

These tests are critical to ensure the safety of the vehicle, its occupants, and the public at large. TARDEC's contention is that a mechanism to recover its investment shall be demonstrated by the USG before it will be considered. In addition, a minimum lead-time of 18 months is required to meet the vehicle's mission performance requirements based on historical Tire/Wheel Assembly testing for this type of equipment. This delay is unacceptable in support of the mission for this vehicle.

Reverse engineering Test Operating Procedure (TOP) development is not feasible due to requirements of the component's material properties which cannot not be readily identified. Because of the uncertain definition of requirements, an increased safety risk is possible in which failure of one or more of these items could result in adverse stability and durability of the vehicle. Such a compromised vehicle condition could cause objectionable braking/handling characteristics with potential roll-over and thus potentially beget an accident resulting in serious injury or death to operators, passengers and/or others in the vicinity.

The quantity involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require at least 12 months and up to $2M. This expense could not be recouped through subsequent competition. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the mission in a potentially adverse operational environment. The delay associated with these aforesaid efforts is completely unacceptable in fulfilling extremely urgent security/police requirements and would have a significant impact on TACOM's ability to support field customers. Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TOP or qualification testing for a new source. Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON EH81L622EH to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition: This action is limited to Hutchinson Industries - Defense and Security Division, a subsidiary of Total Societe Anonyme and NAVISTAR DEFENSE, LLC. Hutchinson is the owner of the intellectual property and the sole qualified manufacturer 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 Technical Data Package (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.

Subcontracting competition. The USG will require the chosen contractor to submit a subcontracting plan IAW FAR 19.704 during negotiations of the contract in order to achieve increased small business subcontracting opportunities throughout the life of the contract.

7. Actions to Increase Competition: It is not beneficial to increase competition because the USG does not own or have rights to the technical data for MAXX PRO DASH ISS spare components. As aforementioned, it would take up to 18 months to develop a competitive technical data package with an estimated maximum cost of up to $3.5 million. For the needed procurement volume, the time and monetary costs would not be recouped through competition. Additional sources cannot be considered at this time.

8. Market Research: During the preparation of this document, in October 2018, the assigned engineer conducted computer based market research to determine if additional sources of supply were available. Given that no technical data is available for MAXX PRO DASH ISS vehicles, market research results were very limited. This is mainly based on the fact that some level of detail is required prior to conducting effective market research. The results of this generic search were that no other sources exist or are anticipated to become available to satisfy the USG's requirement.

Interested sources will be referred to the Source Approval Program thought the

9. Interested Sources: A Sources Sought Synopsis for this NSN was posted on 16 January 2019. To date, no sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this NSN. Any interested sources will be referred to the Source Approval qualified source.

FedBizOpps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=74c6fe1fee5af20c4377edc9 6bf49a72&tab=core& cview=0.

Sources_Sought_N otice_2019-167.pdf

Noun: Wheel, Pneumatic Tire

NSN: 2530-01-584-5955

End Item Application: MAXX PRO DASH ISS Quantity Required: 2,052, estimated (over three years) Unit Price: $

Approved Manufacturers and Part Numbers:

a. Hutchinson Industries, Inc., Defense and Security Division Part Number: AS-0747-C

b. Navistar Defense, LLC Part Number: 3866680C91

The notices required by FAR 5.201 will be published and any proposals received will be considered.

10. Other Facts:

a. Procurement history

Contract: SPRDL111C0103//0002AA Award Date: 2011 April 11th

Contractor: Navistar Defense LLC Cage: 338X5 Value:

$5,588,489.20 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

Contract: SPRDL111C0103//0001AA Award Date: 2011 April 11th Contractor: Navistar Defense LLC Cage: 338X5 Value:

$5,389,509.75 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

Contract: SPRDL111C0089//0001AA Award Date: 2011 March 17th Contractor: Navistar Defense LLC Cage: 338X5 Value: $4,102,047.36

b. Acquisition data availability: The Government does not own or have rights to the technical data for the MAXX PRO DASH ISS Wheel, Pneumatic Tire Assembly for this procurement.

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: The USG will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR19.704.

e. A justification was prepared to support the previous procurement, SPRDL1-11- C- 0103. The statutory authority cited permitting other than full and open competition was 10 USC 2304(c) (1), as implemented by FAR 6.302-source and no other supplies or services will sati

The acquisition data for the Navistar Defense MaxxPro Dash MRAP vehicle was not defined; hence, the USG did not have any data rights for the MRAP vehicle items that would be required to produce a competitive TDP and the USG had not funded Navistar Defense to prepare a TDP at that time. There has been no change in the status of developing a competitive TDP.

11. Technical Certification: I 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.

Typed Name: _ X 2473 Date: 17 January 2019

Title: General Engineer 0801 Signature: 1297263532

Digitally signed by 1297263532 Date: 2019 01 17 09:22:51 -05'00