JA_SPRDL120R0005_Redacted (1).pdf

Previous J&A W56HZV-04-R-0419 is not available.

J&A SPRDL1-20-R-0005

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 firm-fixed price contract for the Transfer Transmission Assembly (Transfer Case) with Container (NSN:

2520-01-370-7444, Part Number (P/N) 2HP693) used on the Palletized Loading System (PLS). Competition will be limited to Oshkosh Defense, LLC (CAGE 75Q65), the only approved source for this specific Transfer Transmission Assembly. 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: This action is for the Oshkosh Defense, LLC (CAGE: 75Q65) Transfer Transmission Assembly with Container (NSN: 2520-01-370- 7444, P/N: 2HP693) used on the PLS. The procurement quantity is 16 each with an option quantity of 16 each. The estimated unit price is , making the estimated value of the contract and estimated option value of the contract .

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

Acquisition Method Suffix Code: (AMSC): R – 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.

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: The Transfer Transmission Assembly with Container, NSN: 2520-01-370-7444, P/N: 2HP693 is used on the PLS. Oshkosh Defense LLC designed and tested the PLS Transfer Transmission Assembly at their own expense and obtained the Government’s authorization of the Transfer Transmission Assembly for use on the PLS.

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 supplier.

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: 2520-01-370-7444 is owned and controlled by the source.

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 technical data package (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 PLS.

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.

Oshkosh Defense, LLC is the only known source for the Transfer Transmission Assembly used on the PLS to have the proper form, fit, and function for this application.

6. Efforts to Obtain Competition: This action is limited to Oshkosh Defense, LLC (CAGE: 75Q65), the owner of the intellectual property and manufacturer of this item.

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. The synopsis notifications required by FAR 5.201 will be posted.

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:

2520-01-370-7444 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 the TDP is complete and accurate, and then procure the item through 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 6 units per year, at the cost of , and assuming the 25% saving achieved through competition, the annual savings would take over years 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 TACOM’s ability to support the soldier in the field.

8. Market Research: Given that no technical data is available for the Transfer Transmission Assembly, NSN: 2520-01-370-7444, 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 Transfer Transmission Assembly, but without having any technical specifications, the range of information on this component will be vast, thus not useful. Hence, it is imperative that some technical information be available in order to conduct valuable market research. Performed some research with regards to Transfer Transmission Assembly. However, the information found was too generic due to the rationale provided above. As of 23 December 2019, this research did not produce any results that other sources exist or are anticipated to become available to satisfy the Government's requirement.

9. Interested Sources: A Sources Sought Notice was posted on beta.SAM.gov on 12/20/2019. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

Item Name: Transfer Transmission Assembly with Container

NSN: 2520-01-370-7444

Part Number: 2HP693 End Item: Palletized Loading System (PLS)

The link and attachment to Sources Sought Notice 2020-037:

https://beta.sam.gov/opp/7f463f6774484f13b35b1cb89bf0a3db/view

10. Other Facts:

a. Procurement History:

Contract: W56HZV05D0281 Award Date: 2005 June 17 Contractor: Oshkosh Defense, LLC Value: $1,963,760.99

Contract: DAAE0703CS096 Award Date: 2003 August 12 Contractor: Oshkosh Defense, LLC Value: $5,803,798.00

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Transfer Transmission Assembly with Container used on the PLS.

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.

[ x ] $150K to $700K Team Leader [ ] $700K to $13.5M AD/Deputy AD [ ] $13.5M to $93M [ ] >$93M

Name:

Title: Sustainment Engineer Date: 12/23/2019 Signature:

Name:

Title: Sustainment Team Lead Date: 12/23/2019 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: Inventory Management Specialist Date: 23 December 2019 Signature:

Name:

Title: HEMTT/PLS Supply Lead Date: 12/30/2019 Signature:

Name:

Title: Acting - THTV Group Leader Date: 12/30/2019 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 appropriate forms of cost and/or price analysis.

Negotiations will be conducted as necessary. The Contractor will not be required to submit certified cost and pricing data based on the estimated dollar value and because this item is determined commercial.

Name: Leah Bourdeau Title: Contracting Officer Date: 1/10/20 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: 1/10/20 Signature: //s// LCB

15. Legal Concurrence:

Name:

Date: 1/10/2020 Signature: