JA_SPRDL120R0018_redacted.pdf

J&A SPRDL1-20-R-0018

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0018

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

2. Description of Action: The proposed contract action is to award a new, firm fixed price contract for the Palletized Loading System (PLS) Hydraulic Hoist Unit (NSN: 2590- 01-354-9107). Competition will be limited to the approved sources only, which consists of Grove US LLC (CAGE 12361) and Oshkosh Defense LLC (75Q65). This action will be funded utilizing Army Working Capital Funds (C-AWCF).

3. Description of Supplies/Services: The contractors, Grove US LLC (CAGE 12361) and Oshkosh Defense LLC (75Q65) shall provide the PLS Hydraulic Hoist Unit due to normal relinquishment. Grove US LLC provides PN 6974001705 and Oshkosh Defense LLC provides PN 1HT206. The base contract is for a quantity of 4 each at an estimated value of . A 100% option will allow for an additional quantity of 4 each to be ordered. The total contract quantity of 8 each includes the option quantity. The total estimated value of this contract, including the option period, is .

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

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 Government does not own or have rights to any of the technical data for the highly detailed PLS Hydraulic Hoist Unit (NSN: 2590-01-354- 9107). The approved sources are the owners of the intellectual property and retain full-rights-in-data for the detailed technical data.

The GVSC Sustainment Engineering Team has estimated that reverse engineering the PLS Hydraulic Hoist Unit would cost an estimated minimum of $1,000,000 with a lead time of 12 months for design, development, and production. After that, it would have to undergo qualification testing. Qualification testing on a PLS vehicle would have a lead time of 8 months and cost an estimated minimum of $1,250,000. Lastly, the Technical Data Package would need to be developed at a cost of $150,000 and require 8 months.

GVSC’s contention is that a mechanism to recover their investment shall be demonstrated by the Government before they will consider it.

With the current usage rate of 8 per year, at the current unit cost and assuming the savings achieved through competition, the annual savings would take over 16 years to offset the estimated cost of reverse engineering the item and qualifying another source.

In total, reverse engineering and qualification testing to include material test, form, fit, and function test, performance test, and durability testing would require at least twenty eight

(28) months and an estimated minimum of $2.4M. This expense could not be recouped through subsequent competition. The efforts involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the Army’s mission in a potentially adverse operational environment. Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TDP or qualification testing for a new source.

Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition: No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements. Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

7. Actions to Increase Competition: There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a full-defined and validated technical data package for this item. Any vendor that believes they can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source will be at their own expense.

A Sources Sought Synopsis was posted to FedBizOpps on 09/26/2019. To date, no other sources have expressed interest in providing this item.

Item Name: PLS Hydraulic Hoist Unit

NSN: 2590-01-354-9107

Part Number: 6974001705/1HT206 End Item: PLS

Sources_Sought_N otice_2019-582.pdf https://www.fbo.gov/index?s=opportunity&mode=form&id=9fdcb273f803f263e59d64969 f39c6fb&tab=core&_cview=0

8. Market Research: The Government has no funding to qualify additional sources, and any qualification would be done at contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office. Given that no detailed technical data is available for the PLS Hydraulic Hoist Unit (NSN: 2590-01-354-9107), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during September of 2019.

Many hoist assemblies are available commercially, but the Government does not own the detailed technical data for this part, and therefore does not have the information to perform a detailed search regarding dimensions and performance specifications of the structural components, hydraulics, hoses, and other moving parts in the hoist assembly.

The results of this search did not produce any new source which could provide the same fit, form and function with certainty. The results of this generic search were that no other sources exist, nor are there any sources anticipated to become available to satisfy the Government’s requirement.

9. Interested Sources: To date, no other sources have expressed an interest in providing the subject item. Only the approved sources own the most current TDP part iteration (revision level). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

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.

Name: Date: 03 OCT 2019 Title: Item Manager Signature: //signed//

Name: Date: 03 OCT 2019 Title: Supply Lead 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 Date: 11/25/19 Title: Contracting Officer 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 Date: 11/25/19 Title: Contracting Officer Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date: 11/29/2019