JA_SPRDL120R0057_Redacted.pdf

J&A SPRDL1-20-R-0057

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0057

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 Rear Drive Axle Assembly (NSN: 2520-01-669-3009) used on the FMTV Truck. Competition will be limited to the only approved source, Meritor Heavy Vehicle Systems LLC (CAGE: 78500). This action will be funded utilizing Army Working Capital Funds (C-AWCF).

3. Description of Supplies/Services: The contractor, Meritor Heavy Vehicle Systems LLC (CAGE: 78500), shall provide the Rear Drive Axle Assembly (NSN: 2520-01-669- 3009, PN: RH15611NFDF3614) used on the FMTV Truck. The Meritor part is the primary component of part number 12424350-002 (19207). The base contract is for a quantity of 13 each at an estimated value of $ A 100% option will allow for an additional quantity of 13 each to be ordered. The total contract quantity of 26 each includes the option quantity. The total estimated value of this contract, including the option period, is

AMC 4. Acquire, for the first time, directly from the actual manufacturer.

AMSC B. This part must be acquired from a manufacturing source(s) 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. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 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: The Government does not own or have rights to any of the technical data for the Rear Drive Axle Assembly (NSN: 2520-01-669-3009) from Meritor Heavy Vehicle Systems LLC (CAGE: 78500) because it is a sole source part defined in TACOM Drawing 12424350. Therefore, only this approved source is the owner of the intellectual property and retains full-rights-in-data for the detailed technical data.

The GVSC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the Rear Drive Axle Assembly would cost an estimated minimum of $1,250,000.00 with a lead time of 18 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing on an FMTV Truck would have an additional lead time of 12 months and cost an additional estimated minimum of $2,750,000.00.

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 thirty (30) months and an estimated minimum of $4,000,000.00. 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: This action is limited to Meritor Heavy Vehicle Systems LLC (CAGE: 78500), the owner of the intellectual property and manufacturer of the primary component of this item. 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 fully-defined and validated technical data package for this item. The source of supply, Meritor Heavy Vehicle Systems LLC (CAGE: 78500), owns the detailed technical data regarding 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.

8. Market Research: The Government has no funding to qualify additional sources, and thus 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 Rear Drive Axle Assembly (NSN: 2520-01-669-3009), market research results are very limited.

Computer-based/internet market research was conducted by the Project Engineer during October 2019.

Many Rear Drive Axle Assemblies are available commercially, but the Government does not own the detailed technical data for this part, as it is source controlled, and therefore, does not have the information to perform a detailed search regarding dimensions and performance specifications. The results of this search did not produce any new source which could provide the same fit, form and function with certainty. The information found during market research was too generic to determine whether commercially available items exist for this critical application. This Rear Drive Axle Assembly is not COTS, and Meritor Heavy Vehicle Systems LLC (Cage Code: 78500) alone owns the technical data for dressing the Rear Drive Axle Assembly.

9. Interested Sources:

A Sources Sought Synopsis was posted to FedBizOpps on 10/10/2019. To date, no other sources have expressed interest in providing this item.

Item Name: Rear Drive Axle Assembly

NSN: 2520-01-669-3009

Part No: 12424350 Quantity: 13 MIN/ 26 MAX End Item: FMTV https://www.fbo.gov/index?s=opportunity&mode=form&id=cdd1ae1a009627d80a2675a acfac1865&tab=core&_cview=0

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.

10. Other Facts:

a. Procurement History: N/A

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the Rear Drive Axle Assembly (NSN: 2520-01- 669-3009).

c. Subcontracting Competition : The Government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR19.704.

11. Technical Certification: I hereby 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 ] $250K to $700K Engineering Branch Chief [ ] $700K to $13.5M AD/Division Chief [ ] $13.5M to $85.5M Executive Director [ ] >$85.5M GVSC Director

POC: Email:

Supervisor Name: Date: 20 DEC 2019 Title: Engineering Branch Chief Signature: //signed//

12. Requirement 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: 12/20/2019 Title: Item Manager Signature: //s//

Name: Date: 12/30/2019 Title: Supply Supervisor Signature: //s//

Name: Date: 12/30/2019 Title: Group Leader Signature: //s//

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. The contractor will not be required to submit certified cost and pricing data as this has been determined to be a commercial item.

Name: Leah Bourdeau Date: 1/6/20 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: 1/6/20 Title: Contracting Officer Signature: //s// LCB

15. Legal Concurrence:

Concur : // // Date: 01/09/2020