JA_SPRDL120D0048 P00003_Redacted.pdf

Justification & Approval JA-00151 Modification: SPRDL1-20-D-0048

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: The Defense Logistics Agency Land Warren (DLA Land Warren) is the procuring activity for this action.

2. Description of Action: This procurement action is to incorporate (modify) 18 additional NSNs into the existing 3-Year Requirements long term contract (LTC) number SPRDL1-20-D-0048. This contract was awarded on 22 Jan 2020 for 24 separate NSNs of replacement spare parts and assemblies/components in support of the RT 240 Rough Terrain Container Handler (RTCH) system. The RT240 Rough Terrain Container Handler (RTCH) is a 53,000 pound capacity, variable reach container handler that allows Army units to trans-load intermodal freight containers and other loads in a variety of mission scenarios. The RT240 is a key component of the Army’s supply distribution mission. This contract action seeks to procure a number of spare part components to support the Army’s RTCH fleet. The list of components included are listed in Attachment A below.

Type of action: Modification to contract SPRDL1-20-D-0048.

Utilizing a Firm Fixed Price (FFP) contract for the following: 3-Year Requirements LTC:

The basic contract was awarded in January 2020, so this modification will provide an estimated 2.5 years ordering timeframe for the additional 18 NSNs.

Utilizing: The type of funding to be used is Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: This planned action is to procure 18 unique replacement spares used in the Army’s RT240 RTCH manufactured by Independent Rough Terrain Center (IRTC) LLC., CAGE 1NWY2 (formerly Kalmar RT Center, LLC.)

For a complete list of required parts, see Attachment A below. The Government’s estimated 3 year cost for contract SPRDL1-20-D-0048 is The Government’s estimated 3 year cost for this modification of the 18 NSNs to this contract is an additional

a. Vehicle System: Rough Terrain Container Handler (RT240 RTCH)

b. Government Estimate Quantity (3 Year): 196 each, see Attachment A

c. Estimated Total Value of Action: , see Attachment A

d. PRON Numbers: Multiple, see Attachment A

e. NSNs: Multiple, see Attachment A

f. Part Numbers: Multiple, see Attachment A

Attachment A - List of 18 NSNs.pdf

A description of the 18 separate components follows:

The Mechanical Transmission part number 9238920006, NSN 2520-01-514-0890 is a component of the RTCH powertrain. It takes the engine output and transfers it to the axles to propel the machine in either forward or reverse motion.

The Hydraulic Motor part number 9238990686 with NSN 2540-01-520-7864, is the tophandler slewing motor. This component provides precise control for the tophandler for extension and retraction. The tophandler is the main attachment for the RTCH, enabling the engagement of ISO containers.

The Parts Kit Fork Lift part number EP-0020139 with NSN 3930-01-550-5631, is the fork lift attachment for the RTCH. This attachment has hydraulically actuated fork tines and a supporting structure, allowing the RTCH to engage loads such as pallets and flatracks.

The Material Hoisting Unit part number 923853978 with NSN 3950-01-542-2909 is the lifting and elevating structure of the RTCH. It is a hydraulically extendable, multi-section boom that connects the RTCH to the tophandler.

The Hydraulic Pump part number 9231410043 with NSN 4320-01-480-4880 is a hydraulic pump that directs hydraulic flow for the steering and tophandler functions of the RTCH.

The Flow Control Valve part numbers A406750100, 920113047, 9238870001, 9235430034, 920129113, and 9235430020, with NSNs 4820-01-480-4846, 4820-01- 480-4860, 4820-01-480-4892, and 4820-01-546-0523, 4820-01-480-4853 and 4820-01- 480-5339 include a variety of control valves that direct hydraulic flow to actuate several different functions in the RTCH. These functions include radiator fan control (A406750100), boom servo (920113047), steering control (9238870001), bogie wheel control (9235430034 and 9235430020), and boom functions (920129113) (see below).

Part Name Part Number National Stock Number Flow Control Valve A406750100 4820-01-480-4846 Flow Control Valve 920113047 4820-01-280-4860 Flow Control Valve 9238870001 4820-01-480-4892 Flow Control Valve 9235430034 4820-01-546-0523 Flow Control Valve 920129113 4820-01-480-4853 Flow Control Valve 9235430020 4820-01-480-5339

The Distribution Boxes part numbers A487510100 and A326850400R are weather resistant enclosures that house electronic components that control different functions of the RTCH. The enclosures house components such as switches, circuit breakers, connectors, and cables.

The Boom Section, Outer part number A393860100, with NSN 3830-01-480-2863, and Boom Section, Inner part number A393870100, with NSN 3830-01-480-3144 are the individual components of the RTCH lifting and elevating boom. These components are made of structural steel and have precise tolerances that allow the telescoping action of the boom.

The Turret Ring Assembly part number 9239762713 and NSN 3830-01-558-5074 is a structural component that connects the RTCH boom to the tophandler, enabling rotation of the tophandler through its prescribed range of movement. This component is made of structural steel and has precise tolerances that allow connection of these components.

The Cylinder Assembly part number EP-0002125 and NSN 3040-01-659-9993 is a component of the RTCH bogie wheel system. The bogie wheels are deployed by actuating the hydraulic cylinder and are used to assist the machine to be loaded for aircraft transport. In general, the parts of a hydraulic cylinder include the cylinder barrel, the base or cap, the cylinder head, the piston, the piston rod, the seal gland, and the seal gland.

The Cab Assembly part number MP-0029790 and NSN 2510-01-685-0698 is a replacement steel cab for the RTCH. It serves as a weather resistant operator enclosure with glass windows on four sides and the roof.

Acquisition Method Code (AMC): The following AMCs apply to this procurement:

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

4 – Acquire, for the first time, directly from the manufacturer.

Acquisition Method Suffix Code (AMSC):

R – This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.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. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy requirements.”

5. Reason for Authority Cited: This action intends to award a modification to existing long term contract SPRDL1-20-D-0048, adding a group of eighteen (18) NSNs of replacement spare parts for the RTCH. The parts required are direct components of the fielded RTCH. They are the current configured parts and are critical to maintain the accepted, validated performance of the RTCH. A variation of this list by pursuing different components would not be an effective solution for the Government as the form, fit and function of the parts required is already validated by performance testing of the end item RTCH. For example, the inner and outer boom sections are integral structural parts of the RTCH boom; and the different hydraulic flow valves in the list have the required fluid flow characteristics needed for the diverse applications they have within the machine.

The Government does not have rights to the Technical Data Package (TDP) or specifications for any of the items listed in Attachment A above.

a. The proposed contractor for this action is Independent Rough Terrain Center (IRTC), LLC, CAGE 1NWY2 (formerly Kalmar RT Center, LLC).

b. The approved contractor is also the original equipment manufacturer (OEM) of the RTCH. The contractor passed the unique testing of the Production Qualification and Verification tests for the RTCH, including the demonstration of supplying components that fully met the RTCH performance requirements. The tests included reliability demonstrations, operating in cold and other environmental conditions, and performance suitability in an operational scenario. These tests were important and critical in that they demonstrated to the Army that the RTCH and therefore the components were ready for fielding and incorporation into the Army’s supply distribution mission.

c. The contractor has other capabilities in that they have full knowledge and understanding of the critical relationships between the components and the end item.

The RTCH components have interfaces with the machine structure providing the needed safety factors that ensure mission effectiveness and protect the safety of the soldier. This knowledge assures the Government that replacement components will be easily incorporated into the machine, reducing time for other adjustments and troubleshooting.

d. Using a contractor without the unique qualifications listed here introduces risk to the Government. A component not ready to perform would prevent the end item from returning to full mission capable status. This would seriously impact the Army’s capability to move shipping containers as part of its supply distribution mission.

Associated with this lack of capability would be a shortage of supplies such as food, water, and spare parts that are to be delivered to soldiers deployed in the field.

6. Efforts to Obtain Competition:

a. The components covered by this procurement are designed and developed by the component manufacturer. Procuring proprietary data is estimated to be in the many millions of dollars as the typical business case for a product like this includes the expectation of a revenue stream for the manufacturer that includes worldwide sales of complete components and spare parts for many years. Qualifying additional sources is viewed as more of a schedule delay issue for this type of product and will be addressed below. The cost of procuring proprietary information is not expected to be recovered through subsequent competition because TACOM LCMC demands for these components are in small quantities and are driven by field demands. This estimate is based on a general knowledge of the materials handling industry. There are funding constraints in that scarce resources are better directed towards hardware procurement rather than procuring technical data for commercial products. We estimate 18 to 24 months would be associated with attempting to procure the required proprietary data or to qualify additional sources. This delay is unacceptable to meet the Government’s needs as it would prevent needed replacement components to be delivered to field users and would impact the mission as machines would be non-mission capable. The end item is a vital part of the Army’s supply distribution mission.

b. These components are not feasible candidates for reverse engineering at this time.

They are assemblies designed by an established commercial vendor. It is estimated as a high risk proposition since the components are already in the market and the reverse engineering process would be replicating the effort associated with the original design of the components. The reverse engineering effort would take approximately 12 months or more at a cost of $1M dollars per component. In addition, the reverse engineered component would have to establish reliability comparable to the already existing design.

This evaluation process would need another 12 months and an estimated additional $500K dollars per component. As an example,we recently undertook a project to reverse engineer three electronic components for the same end item. The engineering cost to reverse engineer these components was $1.2M dollars, with an additional $300K dollars needed for component verification at Aberdeen Test Center. These costs would not be recovered by subsequent competition as the Army’s demand for these components is small and variable. 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 demand for the final product.

The Government would not be able to recover, through subsequent competition, the additional costs involved in reverse engineering the items to create a new and competitive package. For example, for the Parts Kit Fork Lift, at the current average usage rate of 2 units each year (per the Item Manager), a current unit cost of and assuming the 25% savings achieved through competition, the in annual savings would take over to offset the estimated $1.5M dollar cost of reverse engineering the item and qualifying another source.

The Government does not have the pertinent technical data to enable competitive procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive procurement. Due to the reasons cited in section 5 above, we are not able to compete for these items.

SOLE SOURCE: The notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

a. This action is for procuring replacement components, as outlined above, for the Army’s RTCH. All resources are directed to acquiring hardware and there is no funding available from the Army for qualifying additional sources.

b. The Government does not own the technical data associated with the interface between the components and the end item RTCH. That information is governed by the relationship between the RTCH OEM and the component supplier(s). The Army’s quantity requirements for these components are small and driven by field demands, so it appears that it is not a candidate for the Source Approval Program.

8. Market Research: Market Research efforts included:

posted a Sources Sought Notice with information on the 18 items on the beta.Sam.gov website for potential responses from interested vendors on: 06 Mar 2020 (see below attachments for details). The Sources Sought Notice was posted for 15 days until 20 Mar 2020. Results of the posting are described below:

No responses were received from the posted Sources Sought Notice.

SourcesSoughtNoti ce-beta.SAM-Posted

Sources Sought Notice - RTCH Comp

GVSC performed internet searches for suitable competition, as described below:

On 6 February 2020 market research was conducted , for publicly available sources of mechanical transmissions. This research included searching for published material of newly built replacement units and other product information. The website consulted was WBParts (https://www.wbparts.com/rfq/2520- 01-514-0890.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Mechanical Transmission part number 9238920006 with NSN 2520-01-514-0890. 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.

On 7 February 2020 market research was conducted by , for publicly available sources of hydraulic motors. This research included searching for published material of newly built replacement units and other product information. The website consulted was WBParts (https://www.wbparts.com/rfq/2540-01-520-7864.html).

The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Hydraulic Motor part number 9238990686 with NSN 2540-01-520-7864. 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.

On 7 February 2020 market research was conducted by for publicly available sources of Fork Lift Parts Kits. This research included searching for published material of newly built replacement units and other product information.

The website consulted was National Stock Number.org (https://nationalstocknumber.org/fsc/3930/). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Parts Kit Fork Lift part number EP-0020139 with NSN 3930-01-550- 5631. 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.

On 7 February 2020 market research was conducted by for publicly available sources of Material Hoisting Units. This research included searching for published material of newly built replacement units and other product information. The website consulted was Part Target (https://www.parttarget.com/3950- 01-542-2909_3950015422909_923853978.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Hoisting Unit, Material part number 923853978 with NSN 3950- 01-542-2909. 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.

On 7 February 2020 market research was conducted by , for publicly available sources of hydraulic pumps. This research included searching for published material of newly built replacement units and other product information. The website consulted was Part Target (https://fsg-43-pumps-compressors.parttarget.com/power-hand-pumps-923141-0043_923263.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Hydraulic Pump part number 9231410043 with NSN 4320-01-480-4880. 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.

On 7 February 2020 market research was conducted by , for publicly available sources of flow control valves. This research included searching for published material of newly built replacement units and other product information.

The websites consulted was Part Target (https://www.parttarget.com/4820-01-480- 4846_4820014804846_923460-0003.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Flow Control Valves part numbers A406750100, 920113047, 9238870001, 9235430034, 920129113, and 9235430020, with NSNs 4820-01-480- 4846, 4820-01-480-4860, 4820-01-480-4892, 4820-01-546-0523, 4820-01-480-4853, and 4820-01-480-5339. 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.

On 10 February 2020 market research was conducted by , for publicly available sources of distribution boxes. This research included searching for published material of newly built replacement units and other product information. The website consulted was Part Target (https://www.parttarget.com/Kalmar-RT-Center-LLC_nsn-parts_12J1171_9241590002.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Distribution Box part numbers A487510100 and A326850400R, with NSNs 6110-01- 550-5629 and 6110-01-550-8342. 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.

On 10 February 2020 market research was conducted by , for publicly available sources of boom sections. This research included searching for published material of newly built replacement units and other product information. The websites consulted were in Part Target (https://www.parttarget.com/3830-01-480-2863_3830014802863_A35001-0100.html, and https://www.parttarget.com/Kalmar-RT-Center-LLC_nsn-parts_923828- 0897_A39386-0100.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Boom Section, Outer part number A393860100, with NSN 3830-01-480-2863, and Boom Section, Inner part number A393870100, with NSN 3830-01-480-3144.

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.

On 19 February 2020 market research was conducted by for publicly available sources of Turret Ring Assemblies. This research included searching for published material of newly built replacement units and other product information. The website consulted was WB Parts (https://www.wbparts.com/rfq/3830-01-558-5074.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Turret Ring Assembly part number 9239762713 and NSN 3830- 01-558-5074. 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.

On 20 February 2020 market research was conducted by for publicly available sources of Cylinder Assemblies. This research included searching for published material of newly built replacement units and other product information. The website consulted was Part Target (https://fsg-30-mechanical-power-transmission.parttarget.com/fsc-3040-miscellaneous-power-transmission-3040-01-659- 9987_3040-01-660-1783.html). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Cylinder Assembly part number EP-0002125 and NSN 3040-01-659-9993.

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.

On 21 February 2020 market research was conducted by for publicly available sources of Cab Assemblies. This research included searching for published material of newly built replacement units and other product information. The website consulted was My Little Salesman (https://www.mylittlesalesman.com/heavy-equipment-cabs-for-sale-i16c438f0m0). The results of this search did not produce any new information or product catalogs from any company that provides a direct replacement for Cab Assembly part number MP- 0029790 and NSN 2510-01-685-0698. 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.

Additional Market Research efforts:

The following components from the required list are listed in the current version of the Competition Advocate Shopping List (CASL) and are identified below. The CASL 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 U.S. Government’s acquisition intent for TACOM secondary spares items.

Mechanical Transmission - NSN 2520-01-514-0890 Hydraulic Motor - NSN 2540-01-520-7864 Hydraulic Pump NSN 4320-01-480-4880 Flow Control Valve - NSN 4820-01-480-4846 Flow Control Valve - NSN 4820-01-480-4860 Flow Control Valve - NSN 4820-01-480-4892 Flow Control Valve - NSN 4820-01-546-0523 Distribution Box - NSN 6110-01-550-5629 Ring Assembly, Turrett - NSN 3830-01-558-5074 Flow Control Valve - NSN 4820-01-480-4853

9. Interested Sources: To date no additional sources have expressed interest in this item. There has not been any expressed interest by any known contractors to become a qualified source to produce any of the 18 NSNs for the RTCH. The notices required by FAR 5.201 will be published, and any notices received from interested contractors will be referred to the Source Approval Program (SAP) within the Competition Management Office (CMO) for guidance.

10. Other Facts:

a. Procurement History (several contracts):

1. Contract SPRDL1-17-D-0126 was awarded on 01 September 2017 to Kalmar RT Center (nba Independent Rough Terrain Center) for the procurement of 49 unique replacement spare parts. This was a 3-Year Requirements LTC with a total value estimated at $4,136,186.11. The solicitation was solicited as Other Than Full and Open Competition. A J&A was approved utilizing FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services will Satisfy Requirements.” Due to the costs and high risk associated with developing a competitive TDP, the Government is not actively pursuing the development of a competitive TDP for future procurements.

2. Contract SPRDL1-14-D-0011 was awarded on 28 January 2014 to Kalmar RT Center (nba Independent Rough Terrain Center) for the procurement of 46 unique replacement spare parts. This was a 3-Year Requirements LTC with a total value estimated at $8,211,055.45. The solicitation was solicited with only the Manufacturer’s Part Number.

A J&A was approved utilizing FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services will Satisfy Requirements.” Due to the costs and high risk associated with developing a competitive TDP, the Government is not actively pursuing the development of a competitive TDP for future procurements.

3. Contract SPRDL1-11-D-0003 was awarded on 14 June 2011 to Kalmar RT Center (nba Independent Rough Terrain Center) for the procurement of 55 unique replacement spare parts. This was a 2-Year Requirements LTC with a total value estimated at $14,133,903.05. The solicitation was solicited as Other Manufacturer’s Part Number. A J&A was approved utilizing FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services will Satisfy Requirements.” Due to the costs and high risk associated with developing a competitive TDP, the Government is not actively pursuing the development of a competitive TDP for future procurements.

b. Unusual and Compelling Urgency: N/A

c. Subcontracting Competition: A subcontracting plan will not be required per FAR 19.702(b)(i) as the contractor IRTC is a small business.

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: Associate Director

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. Nouns: Multiple, see Attachment A

b. NSNs: Multiple, see Attachment A

c. Government Estimate (3 Year): 196 each

d. PRON Numbers: Multiple, see Attachment A

e. Type of Funds: C-AWCF

f. Type of Contract: 3-Year Requirements LTC, 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 proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Date: SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.12507

02449 Date: 2020.06.02 13:20:12 -04'00'