JA_SPRDL119R0177_Redacted.pdf

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Redacted Justification and Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-19-R-0177
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification and approval document outlines a limited competition procurement of final drive vehicles by the Defense Logistics Agency Land and Maritime. The agency plans to award an indefinite delivery/indefinite quantity contract to the incumbent, LOC Performance Products, as the final drives are proprietary designs and no alternative suppliers have successfully completed qualification testing. The final drives are critical components of the M88A2 recovery vehicle used by the military to repair combat vehicles. The justification cites technical data and manufacturing rights restrictions, lack of competitive technical data packages, and excessive costs to re-engineer or qualify new sources. The sole source award to the incumbent is estimated between $13.5 million to $26.5 million for delivery of up to 625 final drives over five years.

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J&A SPRDL1-19-R-0177

No Previous J&A Is Available

DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1(a)(2), “When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

5. Reason for Authority Cited: The final drive is a gear reduction unit and is the last component in the driveline which transmits the output of the AVDS-1790 8CR engine to the M88A2 tracks to make mobility and recovery operations possible. The design of the final drive is specific to the M88A2 system architecture and directly impacts the performance of the M88A2 vehicle, including available torque, top speed, fuel consumption and braking.

The M88A2 Hercules is a recovery vehicle whose primary role is to extricate combat/tactical vehicles that have been damaged, are stuck, overturned, or are inoperable. Recovery missions can take place during training exercises or while under fire in a combat zone. The M88A2 Hercules secondary role is to aide in the repair or replacement of damaged parts during maintenance operations. It is commonly used to remove/install engines and/or transmissions for the Abrams Family of Vehicles (FOV), Bradley FOV, other M88 FOV and M113 Armored Personnel Carrier. Soldiers would not be able to perform the maintenance required on the aforementioned without the hoisting capabilities of the M88A2.

The primary component of the Transmission Output Reduction ASSY, RH/LH, with container, shipping, and storage is the Output Reduction Unit, Right/Left, part numbers 12510688/12365777, which are source controlled to LOC Performance Inc. LOC Performance Inc. has successfully met the performance requirements and specifications for transmission assembly, 12366578, United Defense Publication, and over time has been successful in demonstrating that their Final Drives can withstand the rigors demanded by the M88A2 recovery vehicle. The use of an inferior product from another source would pose unnecessary risk which could potentially leave a vehicle dead lined and unable to support recovery operations if a failure were to occur.

A complete TDP for the Final Drives has not been developed for competitive use. The performance specification in which the final drives were developed are proprietary to BAE and the manufacturing data is proprietary to LOC Performance Products Inc. (CAGE 1V513) There are currently no plans to acquire a competitive TDP due to funds that would be needed to acquire the data in order to support a competitive acquisition. A prohibitive amount of time and money would be necessary to reverse engineer, procure and test prototypes, and release the design(s).

The estimated cost to develop a single competitive package for this item through reverse

J&A SPRDL1-19-R-0177

These items do not appear on the Advance Procurement Planning List (APPL) dated 15 February 2019 or on the Competition Advocate Shopping List (CASL) dated 15 February 2019.

Contractors interested in becoming a source for this item need to meet the requirements of the Source Approval Program. This is done at the contractor’s expense, to include vehicle level qualification testing. The TACOM Life Cycle Management Command, Competition Management Office (CMO), is the lead proponent for the Source Approval Program. While interested contractors can contact the CMO for assistance with the Source Approval Program, Engineering requires successful vehicle level qualification testing to support the approval of a new source of supply and the Government has no plans or funding to complete qualification testing at this time. To date, no other sources have approached this office with questions or comments on how to become a qualified source to produce this item.

8. Market Research: Market research was performed by CCDC Ground Vehicle Systems Center (GVSC) Sustainment Engineering on 01 March 2019 by reviewing vendor catalogs and available product literature to determine if commercial items or non-developmental items are available to meet Government's needs or could be modified to meet the Government's needs.

Paint Valley Equipment and Ricardo were identified as potential sources for final drives. Paint Valley Equipment commercially sells transmission final drives, but does not provide any drop-in solutions and would require a great deal of engineering effort in order to integrate any available items into the current M88A2 vehicle platform. Ricardo manufactures transmission components, however neither of the aforementioned produce a final drive unit with the necessary configuration and payload capability to be used on the M88 platform without undergoing a significant redesign effort. Furthermore, with the final drive being proprietary to LOC, LOC can limit who the final drive is sold to, and it is unlikely they will sell the hardware or technical data to a competitor. Additionally, since neither of these sources have produced this specific item for the M88A2 they have not completed the necessary testing specified in 12366577 and 12366578 to become a qualified source as described in Section 5. The Government has purchased the container and final drive from BAE, but as the OEM, BAE would have procured the final drive from LOC Performance per the technical data. LOC Performance Products verified that both NSNs are available for procurement.

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Interested sources will be referred to the Source Approval Program though the Competition Advocate’s Office. The Competition Advocate’s Office will direct contractors on how to become qualified for future procurements.

Sources Sought Notices, 2019-265 and 2019-420, were posted to Fed Biz Opps on 05 March 2019 and 31 May 2019 for the Final Drive, Vehicular, NSN 2520-01-432-2685 and NSN 2520- 01-432-2681, Part Numbers 12365778 and 12365777 and, to date, no responses have been received.

Sources_Sought_Noti ce_2019-420.pdf

Sources_Sought_N otice_2019-265.pdf

10. Other Facts:

a. Procurement history. The Government has awarded past procurements to LOC Performance Products, Inc. (CAGE 1V513). The most recent contracts include W56HZV-04-C- 0036, a firm fixed price contract awarded March 2004, W56HZV-06-C-0243, a firm fixed price contract awarded February 2006, and W56HZV-06-C-0648, a firm fixed price contract awarded September 2006. Prior J&A’s could not be located due to the length of time from last award.

b. Acquisition data availability: The Government does not own the build to print drawings and associated quality assurance data to the Final Drives that the Government needs to procure these items competitively. LOC Performance Products Inc. is the only currently approved source of supply for this item.

c. Technical POC: Jamey Gutierrez, Mechanical Engineer, Jamey.r.gutierrez.civ@mail.mil.

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.

Name:

Title: Branch Chief-Heavy Combat Sustainment Engineering Signature:

Date: 08/12/2019 Email:

Name:

Title: Associate Director - Sustainment Engineering Signature:

Date: 21 Aug 2019 Email

Name:

Title: Executive Director-Systems Integration and Engineering (Acting) Signature:

Date: 08/26/2019 Email:

12. Requirements 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.

Name:

Title: Director, GCS R&S Signature:

Date: 09/25/2019

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary to support price reasonableness in accordance with FAR 15.403-3.

Certified cost and pricing data will be obtained for this action due to the dollar value.

Name: Eric E. Tucker Title: Contracting Officer Signature: //EET//

Date: 12/5/2019

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Eric E. Tucker Title: Contracting Officer Signature: //EET//

Date: 12/5/2019

15. Legal Concurrence:

Concur:

Date: 12/18/2019

Approval Authority for Acquisitions Equal to or Greater Than $13.5 Million

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following material with a total estimated maximum contract value of :

a. NOUN: FINAL DRIVE, VEHICULAR

b. NSN: 2520-01-432-2685

c. P/N: 12365778

d. Min Quantity: 9 EA

e. Max Quantity: 625 EA

f. Estimated Unit Price:

g. Eestimated Min Value:

h. Estimated Max Value:

a. NOUN: FINAL DRIVE, VEHICULAR

b. NSN: 2520-01-432-2681

c. P/N: 12365777

d. Min Quantity: 15 EA

e. Max Quantity: 625 EA

f. Estimated Unit Price:

g. Estimated Min Value:

h. Estimated Max Value:

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the provision 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: 2020.01.09 15:47:11 -05'00'

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