JA_SPRDL120R0050_Redacted.pdf

J&A SPRDL1 20 R 0050

Previous J&A SPRDL1 17 R 0091 is available.

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: This proposed contract action will result in a new long term (5 year) firm-fixed-price contract to purchase a minimum of 108, and a maximum of 2,700 each Actuating Cylinder Assemblies (NSN: 2590-01-230-3922) used in the Heavy Expanded Mobility Tactical Truck (HEMTT). This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The contractor shall provide the Actuating Cylinder Assembly for the HEMTT restricted to Jarp Industries (CAGE: 8T716) Part Number 140670B, or Hader, Inc. (CAGE: 1N365) Part Number HI8310-008. The estimated unit value is . The guaranteed minimum quantity under the resultant contract is 108 units, with an estimated value of , and the maximum contract quantity is 2,700 units, with a maximum overall estimated value of .

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

Acquisition Method Suffix Code: (AMSC): D – The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

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: Jarp Industries and Hader, Inc., designed and tested this Actuating Cylinder Assembly for the HEMTT at their own expense and obtained the Government’s authorization of this assembly. Both firms passed the requirements of the Government’s qualification tests, to include performance, reliability, and durability tests.

The Government does not own the patent rights, technical data rights, or any other proprietary rights to the technical data for this item. No technical data exists that would define production specifications for the Actuating Cylinder Assembly and since the item was developed and tested at private expense of Jarp Industries and Hader, Inc., and 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 source controlled for the replenishment of spare parts.

No vendors other than Jarp Industries and Hader, Inc. can meet the required performance standards. The suppliers have demonstrated the unique and proven manufacturing capabilities, facilities, resources, and experience to establish and maintain the processing control required to repetitively produce this item. The authorized sources have tested the item in the HEMTT to the vehicle specifications. These are the only known sources for the Actuating Cylinder Assembly that 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 the Actuating Cylinder Assemblies (NSN: 2590-01-230-3922) 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 12 months. The estimated cost of such effort would be at least $350,000. This estimation was based on similar projects.

Reverse engineering such part would cost $500,000 and be at least 12 months. Funds are not available to develop 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 estimated current usage rate of 280 units per year, at the cost of $785.75, and assuming the 25% saving achieved through competition, the $55,000 annual savings would take over 9 years to offset the estimated $500,000 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 12 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.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require 12 months and $50,000. 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 of system failure. 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 Actuating Cylinder Assembly (NSN: 2590-01-230-3922), 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 Actuating Cylinder 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.

Engineering performed some research with regard to Actuating Cylinder Assembly (NSN:

2590-01-230-3922). However, the information found was too generic due to the rationale provided above. As of 15 October 2019, this research did not produce any results that other sources exist or are anticipated to become available to satisfy the Government's requirement, and it was determined that this part is not Commercial-Off-The-Shelf.

A Sources Sought Synopis was posted to Fed Biz Opps on 1 October 2019. To date, no interested source of supply has responded to this notice.

Components: Actuating Cylinder Assembly

NSN: 2590 01 230 3922

Part Numbers: 140670B and HI8310 008 End Item: HEMTT

Sources_Sought_N otice_2020-002.pdf

Beta.Sam.Gov Link https://beta.sam.gov/opp/37c2e41491242d54cdcffe07b2566fab/view?index=opp&sort=-relevance&page=1&keywords=2020- 002&opp inactive date filter model=%7B%22dateRange%22:%7B%22startDate%22:

%22%22,%22endDate%22:%22%22%7D%7D&opp publish date filter model=%7B% 22dateRange%22:%7B%22startDate%22:%22%22,%22endDate%22:%22%22%7D%7 D&opp modified date filter model=%7B%22dateRange%22:%7B%22startDate%22:% 22%22,%22endDate%22:%22%22%7D%7D&opp response date filter model=%7B% 22dateRange%22:%7B%22startDate%22:%22%22,%22endDate%22:%22%22%7D%7 D&date filter index=0&inactive filter values=false&is active=false

9. Interested Sources: To date, no other sources have expressed an interest in providing the transfer transmission assembly. However, offerors are always encouraged to seek qualification through TACOM’s Source Approval Program (SAP) with the CMO. The notices required by FAR 5.201 will be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-17-D-0081 Award Date: 16 May 2017 Contractor: Hader, Inc.

Value: $984,101.05 (Estimated) Competitive Status: Full and open after exclusion of sources per FAR 6.302-1 - Only one responsible source

Contract: SPRDL1-12-D-0006 Award Date: 21 November 2011 Contractor: Hader, Inc.

Value: $197,640.00 (Estimated) Competitive Status: Full and open after exclusion of sources per FAR 6.302-1 - Only one responsible source

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Actuating Cylinder 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.

[ ] $250K to $700K Engineering Branch Chief [ x ] $700K to $13.5M Division Chief/Associate Director [ ] $13.5M to $93M Executive Director [ ] >$93M GVSC Director

Name:

Title: Sustainment Engineer Date: 10/15/2019 Signature:

Name:

Title: Engineering Branch Chief Date: 10/22/19

Name:

Title: Associate Director, Sustainment Engineering Date: 10/29/19 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: 10/29/19 Signature:

Name:

Title: Supply Lead Date: 10/29/19 Signature:

Name:

Title: Supervisor HEMTT/PLS Date: 10/29/19 Signature:

Name:

Title: THTV Group Leader Date: 11/01/19 Signature:

Name:

Title: Director, Transportation Systems PSID Date: 11/01/19 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 appropriate forms of cost and/or price analysis.

Negotiations will be conducted as necessary. In accordance with FAR 15.403-1(b)(3) the contractor will not be required to submit certified cost and pricing data since this item meets the FAR 2 definition of a commercial item.

Name: Leah C. Bourdeau Title: Contracting Officer Date: 11/22/19 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 C. Bourdeau Title: Contracting Officer Date: 11/22/19 Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date: 11/26/2019

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. Noun: Actuating Cylinder Assembly

b. NSN: 2590-01-230-3922

c. Maximum Quantity: 2,700

d. Maximum Estimated Value:

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 provision that the property herein described has otherwise been authorized for acquisition.

Date:

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2019.12.02 15:48:31 -05'00'