JA_SPRDL119R0281_Redacted.pdf

J&A SPRDL1-19-R-0281

No Previous J&A full and open competition need not be provided for. Supplies may be deemed to be available from the original source in the case of a follow-on contract when award to another source would result in substantial duplication costs to the Government that would not be recovered through competition or unacceptable delays in filling the Government's requirements.”

5. Reason for Authority Cited: Procurement by other than full and open competition is necessary because the Government does not own any technical data on this Wheel and Tire Assembly. The Government’s acquisition data for this Wheel and Tire Assembly is limited to NSN, part number and the supplier CAGE code. The end item (ATEC) was procured by the Government through a performance specification where the selection of its subcomponents, including Wheel and Tire Assembly, were left up to the end item manufacturer as part of their internal design effort. There is no Technical Data Package (TDP) for the end item or its subcomponents, including the Wheel and Tire Assembly.

The Wheel and Tire Assembly covered by this procurement is designed and developed by the assembly manufacturer in coordination with the ATEC Original Equipment Manufacturer (OEM) and the OEM owns the TDP for the crane. Procuring proprietary technical data is estimated to be hundreds of thousands of dollars as the typical business case for a product like this includes the expectation of a revenue stream for the manufacturer. Such a revenue stream includes worldwide sales of complete assembly for many years. The cost of procuring proprietary information is expensive and would likely not be recovered through subsequent competition. There are funding constraints in that scarce resources are better directed to hardware procurement rather than procuring technical data for commercial products. It is estimated 12 to 18 months would be associated with attempting to procure the required proprietary data and qualifying additional sources. This delay is unacceptable to meet the Government’s needs as it would prevent needed replacement Wheel and Tire Assemblies to be delivered to field users in a timely manner. The ATEC is a vital part of the ARMY’s supply distribution mission, and delays of Wheel and Tire Assembly would severely impact the ATEC user’s mission, resulting in machines becoming non-mission capable.

This Wheel and Tire Assembly is not a feasible candidate for reverse engineering as it is an assembly that has already been designed by an established commercial vendor. Reverse engineering is therefore estimated as a high risk proposition as it would be replicating the effort associated with the original design of the assembly. The risk for the Government is high as there are limited resources to commit to this type of effort. For a contractor, there is high risk in that a long detailed effort is required without the assurance that there would be enough sustained demand for the final product.

6. Efforts to Obtain Competition: Currently, there are no planned efforts to qualify other suppliers of this Wheel and Tire Assembly, nor will there be prior to the award of this proposed contract due to funding constraints – no funds are available to qualify additional sources, given the cost and time involved, as described below:

Costs: Increasing competition would require a reverse engineering effort which would take approximately 12 months or more at a minimum cost of $600,000.00. In addition, the reverse engineered Wheel and Tire Assembly would have to establish reliability comparable to the already existing design. This evaluation process would need another 6 months and an estimated additional $150,000.00. These costs would not be recovered by subsequent competition as the ARMY’s demand for this Wheel and Tire Assembly is minimal. There may also be additional costs related to the Wheel and Tire Assembly such as costs to train Soldiers in the use and maintenance of the new Wheel and Tire Assembly, and costs required for the TMs to be rewritten and validated/verified for a new model Parts Kit.

Delays: At least 12 months, or more, of delays, as indicated in the preceding paragraph due to reverse engineering, qualification testing, training, and manual revisions would be unacceptable as it would further delay Soldiers from having accessibility to the Wheel and Tire Assembly in the field.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make the Wheel and Tire Assembly competitive. The time and money required to increase competition would not be recouped by the Government due to the time it would take to produce the Wheel and Tire Assembly in the quantities needed. Any efforts to increase competition would also create unacceptable delays in filling the Government’s requirements.

There has not been any expressed interest by any known vendor to become a qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office (CMO). To date, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

8. Market Research: TARDEC Engineering conducted market research for publicly available sources of Wheel, Pneumatic Tires. This research included online searches for commercial journals, catalogs, and websites of the commercial market place. The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for: Wheel, Pneumatic Tire part number 90044436 with NSN: 2530-01-678-6191.

Therefore, there are no other commercial or non-developmental items available to meet Government needs or that could be economically modified to provide the parts required.

This item does not appear in the Advanced Procurement Planning List (APPL) dated 15 February 2019 nor the Competition Advocate Shopping List (CASL) dated 15 February 2019.

The APPL is part of an on-going effort by the Department of the Army to increase secondary spares competition. This publication is used to apprise the public of the US Government’s acquisition intent for TACOM-Warren secondary items. Projected APPL requirements are published semi-annually using a fiscal budget year, instead of a calendar year. The CASL contains TACOM-Warren’s projected buy list of sole source items for the next three years based on the AMC Codes of 3, 4, and 5. It is updated and advertised twice a year in the FedBizOpps and is available to interested contractors on the TACOM-Warren Business Opportunities website under the Future and Potential Buys Link.

Contractors interested in competing on any items listed in either the CASL or the APPL are instructed to contact the Competition Advocate’s Office.

Sources Sought Notice has been submitted to FedBizOpps on 17 APR 2019 Component: Wheel, Pneumatic Tire

NSN: 2530-01-678-6191

Part Number: 90044436 End Item: All-Terrain Crane (ATEC)

Sources_Sought_N otice_2019-363 (Whe

9. Interested Sources: To date, no other sources have written to express an interest.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history: None

b. Acquisition data availability: The Government does not own any technical data on the kit. The end item was procured by the Government using a performance specification. The selection of the subcomponents that make up the end item is left to the end item manufacturer as part of their internal design effort. There is no technical data package for the end item or its subcomponents, and the Government has planned no action for their development.

c. Subcontracting competition: The Government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small businesses IAW FAR 19.704.

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:

Date: 29 April 2019 Title: Deputy Associate Director, CCDC GVSC Force Projection Technology Email:

Signature: //s//

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.

Typed Name: Date: 5/28/2019______ Title: Item Manager Signature: _ //s//____

Typed Name: Date: _ 5/29/2019______ Title: Team Leader Signature: _ //s//____

Typed Name: Date: _ 5/30/2019______ Title: Chief, Material Handling Signature: //s//____

Typed Name: Date: _30 May 2019______ Title: Group Leader (Acting) Signature: _//s//__________

Typed Name: Date: _30 May 2019__________ Title: Director, FP PSID (Acting) Signature: _____//S//_______

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost 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. Other Than Certified Cost and Pricing Data will be required to justify price reasonableness. The appropriate forms of cost and/or price analysis will be utilized and negotiations will be conducted, if necessary.

Typed Name: Jamal M. Brooks Date: ____06/28/2019___________ Title: Contracting Officer Signature: ___//s//____________

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

Typed Name: Jamal M. Brooks Date: ___06/28/2019_________ Title: Contracting Officer Signature: __//s//__________

15. Legal Concurrence:

Typed Name:

Date: 7/3/19 Title: Legal Advisor Signature: ____/ //___________

Approval Authority for Acquisitions Equal to or Greater Than $700,000.

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: Wheel, Pneumatic Tire

b. NSN: 2530-01-678-6191

c. Estimated Quantity:

Minimum: 3 Ea Maximum: 125 Ea

d. Estimated Minimum Value Estimated Maximum Value:

e. PRON: EH9L0321EH

f. Type of Funds: AWCF

g. Type of Contract: Firm Fixed Price

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.

Signature:

Date: SHEARER.MARY.E.1250702449 Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.07.10 07:21:34 -04'00'