JA_SPRDL119R0311_Redacted.pdf

J&A SPRDL1-19-R-0311

Previous J&A SPRDL1-17-C-0156 is available.

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-19-R-0311

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

2. Description of Action: The proposed action is to award a new three year firm fixed price Long Term Contract (LTC) for Cab Assembly, NSN 2510-01-580-2569 used on the Palletized Loading Systems truck. Competition will be limited to Cab Assembly with part number 3847782 (CAGE 75Q65). Oshkosh Defense, LLC designed and manufacturers the Cab Assembly for the Palletized Loading Systems truck. Award is projected for the 1st quarter of FY20. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The supplier shall provide Cab Assembly, part number 3847782. The Cab Assembly is for Palletized Loading Systems truck. The unit value is estimated at . The minimum quantity of the contract is 4 and maximum quantity is 56. The value of the contract is estimated at a minimum value of and a maximum value of .

Acquisition Method Code (AMC): 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC): R – The Government does not own the data or the rights to the data needed to purchase the 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 6.302-1, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: Cab Assembly, part number 3847782 is for Palletized Loading Systems truck. Oshkosh Defense, LLC designed and tested the Cab Assembly for HEMTT trucks and obtained the Government’s authorization of the Cab Assembly for use on the Palletized Loading Systems truck. Oshkosh Defense, LLC is the sole owner of technical data and the manufacturer of the Cab Assembly.

The Government does not own technical data rights to the Cab Assembly. No technical data exists that would define production specifications for the Cab Assembly and since the item was developed and tested at private expense of Oshkosh Defense, LLC, such data are considered proprietary to the supplier.

The non-availability of technical data requires that this item be procured on a non-competitive basis from Oshkosh Defense, LLC for the replenishment of spare parts. The acquisition data for part number 3847782 is owned and controlled by Oshkosh Defense, LLC.

Oshkosh Defense, LLC passed the requirements of the government qualification tests, to include performance, reliability and durability tests. Oshkosh Defense, LLC has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. Oshkosh Defense, LLC tested the items in the vehicle to the vehicle specifications.

6. Efforts to Obtain Competition: There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints – no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

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 NSN 2510-01-580-2569 fully competitive for the following reasons:

The cost to procure the TDP package from the contractor, build a prototype, then test and validate the design would be an estimated $2.75 million with a delay of 24 months.

To develop TDP through reverse engineering would cost $1.5 million with a delay of 18 months. Developing a Cab Prototype and testing will cost $1 million and would take 12 months.

Using these cost and delay model estimates, the Government could not recover the procurement cost to become competitive and a 24-month delay is unacceptable to meet Government requirements.

The amount of time and funding required to develop, test, certify, and release a reverse-engineered competitive design is not justifiable.

Qualification testing of the new source to include material test, form-fit-function test, performance test, and durability test would require 6 months and $600,000. This expense could not be recouped through competition. Funds are not available for qualification testing of a new source. To neglect qualification testing would cause a serious risk as premature failures of the frame (structural and vehicular) could harm the mission. The delay associated with these efforts is unacceptable in fulfilling TACOM requirements and would have a significant impact on TACOM’s ability to support the soldier in the field.

8. Market Research: Given that no technical data is available for the Cab Assembly (NSN: 2510-01-580-2569) market research results are very limited. This is mainly based on the fact that some type of information is required prior to conducting market research. For example, market research can be conducted on the Cab Assembly, but without having any technical specifications, the range of information on this component will be vast, and therefore not useful. Hence, it is imperative that some technical information be available in order to conduct valuable market research.

Information gathered during generic market research was found to be too generic due to the rationale provided above. The results of this generic market research were that no other sources exist or are anticipated to become available to satisfy the Government's requirement. As of 8 MAY 2019, the results of this search did not produce any new leads with a company that provides a direct replacement for the Cab Assembly.

Sources Sought Notice was submitted to Fed Biz Opps on 11 APR 2019.

Components: Cab Assembly

NSN: 2510-01-580-2569

Part Number: 3847782 End Item: Palletized Loading Systems

The link to Sources Sought Notice:

https://www.fbo.gov/index?s=opportunity&mode=form&id=ce9555923460aefa231d59c4 dcc9f566&tab=core&_cview=0

SS_FBO_11

APR2019.pdf

9. Interested Sources: To date, no other sources have written to express an interest. Based on the market research described above, there are no other sources that exist or are anticipated to become available to satisfy the Government's requirement.

10. Other Facts:

a. Procurement History:

Contract: SPRDL117C0156 Award Date: 9 MAY 2017 Contractor: Oshkosh Defense, LLC Value: $363,750 Competitive Status: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements

Contract: SPRDL113D0013 Award Date: 29 MAY 2013 Contractor: Oshkosh Defense, LLC Value: $363,750 Competitive Status: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy requirements.

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Cab Assembly used on Palletized Loading Systems trucks.

c. Unusual and Compelling Urgency: N/A

d. Subcontracting Competition: N/A

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.

[ ] $150K to $650K Team Leader [ x ] $650K to $12.5M AD/Deputy AD [ ] $12.M to $85.5M Dr. Jennifer Hitchcock [ ] >$85.5 Mr. Jeffrey Langhout

Name:

Title: Sustainment Engineer Date: 8 May 2019 Signature: //signed//

Name:

Title: Sustainment Team Lead Date: 14 MAY 2019 Signature: //signed//

Name:

Title: Associate Director, Sustainment Engineering Date: 17 May 19 Signature: //signed//

12. Requirement Certification: I certify that the supporting data under cognizance which are included in the justification are accurate and complete to the best of knowledge and belief.

Name:

Title: Item Manager Date: 17 May 2019 Signature: //signed//

Name:

Title: Supply Lead Date: 5/17/2019 Signature:

Name:

Title: Group Leader Date: 5/17/2019 Signature:

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.

This determination will be based on the results of a detailed cost and or price analysis and the contractor’s submission of appropriate forms of cost and pricing data. Certified cost or pricing data will not be required pursuant to FAR 15.403-1(b)(3), commercial item exception.

Name: Leah C. Bourdeau Title: Contracting Officer Date: 30 Jul 2019 Signature: //s// LCB

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

Name: Leah C. Bourdeau Title: Contracting Officer Date: 30 Jul 2019 Signature: //s// LCB

15. Legal Concurrence:

Name:

Date: 8/2/2019 Signature:

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

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: Cab Assembly

b. NSN: 2510-01-580-2569

c. Part Number: 3847782 (CAGE 75Q65)

c. Maximum Quantity: 56 each

d. Estimated Maximum Value:

This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 U.S.C. 2304(c)(1), and FAR 6.302-1(a)(2)(ii)(A) and (B), and subject to availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

Name: Mary Shearer Title: Competition Advocate, DLA Land and Maritime Signature:

Date:

SHEARER.MARY.E.125070

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.09.04 11:56:03 -04'00'