JA_SPRDL119R0329_Redacted (1).pdf

Previous J&A is available

SPRDL1-19-R-0329

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a new three-year long-term, firm-fixed-price contract (LTC) for the Transfer Transmission Assembly (Transfer Case) used on the Heavy Expanded Mobility Tactical Truck (HEMTT). Competition will be limited to NSN 2520-01-563-6518, part numbers 4100906, supplier Oshkosh Defense LLC and 57K4461 (Government Drawing). Part number 57K4461, cage code 19207 is Dressed Transfer Case and Container and consists of part numbers 3695121, cage code 75Q65 and 03052008, cage code 4WM88 called out in Table 1. Award is projected for the 2nd quarter of FY20. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The contractor shall provide Transfer Transmission Assembly and Container per government drawing 57K4461, cage code 19207 and part number 4100906, cage code 75Q65 for the HEMTT. Drawing 57K4461 calls out part numbers 3695121 (Dressed Transfer Case) and 03052008 (Container). The anticipated contract will be an indefinite delivery, indefinite quantity contract with a minimum quantity of 30 and maximum quantity 720. The estimated unit price is , making the estimated minimum value of the contract and estimated maximum value of the contract .

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

Acquisition Method Suffix Code: (AMSC): B This part must be acquired from a manufacturing sources specified on a source control or selected item drawing as defined by the current version of 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.

Table 1 Part numbers for the Transfer Transmission Assembly and Container

NOMENCLATURE P/N

Transfer Transmission 3695121, Oshkosh Defense LLC, CAGE 75Q65, government drawing 57K4461, cage code 19207.

Container 03052008, Mad River Fabricating CAGE: 4WM88, government drawing 57K4461, cage code 19207.

Transfer Transmission Assembly with

Container

4100906, Oshkosh Defense LLC, CAGE 75Q65

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: Transfer Transmission Assembly with Container, part number 4100906 and Transfer Transmission, part number 3695121 with Container, part number 03052008 are for HEMTT. Oshkosh Defense LLC designed and tested the Transfer Transmission Assembly on HEMTT authorization of the Transfer Transmission Assembly for use on the HEMTT.

The Government does not own technical data rights to this item. No technical data exists that would define production specifications for the Transfer Transmission Assembly and since the item was developed and tested at private expense of listed sources such data are considered proprietary to the suppliers.

The non-availability of technical data requires that this item be procured on a non-competitive basis from the manufacturer for the replenishment of spare parts. The acquisition data and technical data for NSN: 2520-01-563-6518 is owned and controlled by the sources.

The Government does not own the patent rights or any other proprietary rights to the technical data that would be required to produce a competitive TDP. Oshkosh Defense LLC passed the requirements of the government qualification tests, to include performance, reliability and durability tests. Oshkosh Defense LLC is the owner of the TDP for the use on HEMTT.

Oshkosh Defense LLC has the unique and proven qualities and capabilities, facilities, resources, and manufacturing and development experience, to produce and procure the item identified.

The government did not buy the proprietary rights to produce a competitive TDP. No vendors other than Oshkosh Defense LLC can meet the required performance standards. The supplier has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The authorized sources tested the items in the vehicle to the vehicle specifications.

These are the only known sources for the Transfer Transmission Assembly for the HEMTT to have the proper form, fit, and function for this application.

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 a 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: 2520-01-563-6518 fully competitive for the following reasons:

Using estimates, the time to procure the proprietary data from the authorized source, develop and test a prototype to make sure TDP is complete and accurate, and then procurement will be in full and open competition, is at least 24 months. The estimated cost of such effort would be at least $1,200,000. This estimation was based on similar projects. Reverse engineering such part would cost $1,200,000 and be at least 24 months. Funds are not available to develop model technical data due to low demand and high cost.

The Government does not have the funds available nor would the Government be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the items to create a competitive package. At the current usage rate of 10 minimum to 240 maximum units per year, at the cost of , and assuming the saving achieved through competition, the minimum to maximum annual savings would take over at the earliest to years at the latest to offset the estimated $1,200,000 cost of reverse engineering the item and qualifying another source.

Using these cost and delay model estimates, the Government likely could not recover in following competition, the costs for the procurement to become competitive and the 24 months 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.

Without performing qualification testing, the government risks premature failure of this item, which could result in serious accidents involving fatalities.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require 12 months and $1,500,000. This expense could not be recouped through following 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, vehicular could harm the mission. The delay associated with these efforts is unacceptable in fulfilling TACOM requirements and would have a significant impact on n the field.

8. Market Research: Computer based market research was conducted on 7 August 2019 to determine whether alternate sources of supply exist for this item. While there are many other transmissions in the marketplace, none of them produce this exact transfer transmission assembly for a military application. By not having any technical specifications, the range of information received in the market research was too vast and not specific. Therefore, the result of the market research was that no additional source of supply exist to manufacture this item at this time.

Interested sources will be invited to contact the Source Approval Program though the date, no additional sources have expressed an interest in providing this item.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 6/24/2019. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. To date, no other sources have expressed an interest in providing the subject item.

Components: Transfer Transmission Assembly

NSN: 2520-01-563-6518

Part Numbers: 57K4461, 4100906 End Item: HEMTT

The link and attachment to Sources Sought Notice 2019-419:

https://www.fbo.gov/index?s=opportunity&mode=form&id=32b3fa312365c6df1c948a69064020 78&tab=core&_cview=0

10. Other Facts:

a. Procurement History:

Contract: SPRDL119F0313 Award Date: 2019 May 29 Contractor: Oshkosh Defense, LLC Value: $1,130,889.69

Contract: SPRDL118D0096 Award Date: 2018 April 20 Contractor: Oshkosh Defense, LLC Value: $1,540,320

Contract: SPRDL118C0168 Award Date: 2018 February 28

Value: $834,340

Contract: SPRDL112C0083

Award Date: 2012 February 24

Value: $401,359.2

Contract: W56HZV09C0208 Award Date: 2008 December 30

Value: $2,104,708

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Transfer Transmission Assembly for HEMTT.

c. Unusual and Compelling Urgency: N/A

d. Subcontracting Competition:

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 $700K Team Leader [ x ] $700K to $13.5M AD/Deputy AD

Name:

Title: Sustainment Engineer Date: 7 August 2019 Signature:

Name:

Title: Sustainment Team Lead Date: 07 August 2019 Signature:

Name:

Title: Associate Director, Sustainment Engineering Date: 07 August 2019 Signature:

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: 7/3/19 Signature:

Name:

Title: Supply Lead Date: 7/3/19 Signature:

Name:

Title: Chief, HEMTT/PLS Team Date: 7/3/19 Signature:

Name:

Title: Director, Transportation Systems PSID Date: 11 Jul 19 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.

Name: Leah Bourdeau Title: Contracting Officer Date: 8/19/19 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 Bourdeau Title: Contracting Officer Date: 8/19/19 Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date : 08/21/2019