JA_SPRDL120R0099_Redacted.pdf

J&A SPRDL1-20-R-0099 / Prior J&A Available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-0099

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

2. Description of Action: The proposed action is to award a new, firm-fixed price contract with one, 100% option for the Transmission Assembly with Container (National Stock Number (NSN) 2520-01-479-8832) used on the M915 trucks and Heavy Expanded Mobility Tactical Trucks (HEMTTs). The only approved source of the Transmission, which compromises the majority of the assembly, is Allison Transmission, Inc., (CAGE 73342), Part Number (PN) E006799. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The Contractor shall provide the Transmission Assembly with Container per Government drawing 57K4461, which calls out PNs 12478860 (Dressed Transmission Assembly) and 12436544-1 (Shipping and Storage Container). The primary component of PN is the Allison Transmission as called out in Table 1 below. The estimated unit value is each and quantity of the base contract is 39 each. A 100% option will allow for an additional quantity of up to 39 each. The total estimated value of the contract is for a total of 78 units with the option quantity exercised.

Primary PN for the Transmission Assembly with Container:

Nomenclature Part Number Manufacturer CAGE Transmission E006799 Allison Transmission, Inc. 73342

Table 1: Part Number

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 the 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 Federal Acquisition Regulation (FAR) 6.302-1, nly one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: The Government does not own technical data rights to the Transmission Assembly and the component drawing 12478860 for the transmission itself is not fully defined. No technical data exists that would define production specifications for the transmission and since the item was developed and tested at private expense by Allison Transmission, Inc., such data are considered proprietary to the supplier. The Transmission Assembly, PN 12478860 and Shipping and Storage Container, PN 12436544-1 are for M915 and HEMTT trucks.

Allison Transmission, Inc., designed and tested the transmission and its components for M915 and HEMTT trucks authorization of the transmission for use on the M915 and HEMTT. Allison Transmission, Inc., is the sole owner of technical data and manufacturer of the transmission. The non-availability of technical data requires that this item be procured on a non-competitive basis from Daimler Trucks North America, LLC, for the replenishment of spare parts.

The Ground Vehicle Systems Center (GVSC) Tactical Vehicle Sustainment Team has estimated that reverse engineering the Transmission Assembly would cost an estimated minimum of $2,500,000.00 with a lead time of 24 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing would have an additional lead time of 12 months and cost an additional estimated minimum of $1,000,000.00.

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

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 36 months and an estimated minimum of $3,500,000.00. 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 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 Technical Data Package (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.

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 16 unit per year, at the cost of , and assuming a 25% saving achieved through competition, the annual savings would take over years to offset the estimated $3,500,000 cost of reverse engineering the item and qualifying another source.

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 PN 57K4461 fully competitive. Using the above cost and delay model estimates, the Government likely could not recover in following competition, the costs for the procurement to become competitive and the 36 month 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.

8. Market Research: Given that no technical data is available for the Transmission

Assembly with Container, NSN: 2520-01-479-8832, 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 Transmission Assembly with Container, 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.

The project engineer performed some limited online market research with regards to the Transmission Assembly with Container. However, the information found was too generic due to the rationale provided above. As of 16 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: Sources Sought Synopsis Notice was submitted on 16 December 2019.

Components: Transmission Assembly with Container NSNs: 2520-01-479-8832

PN: 57K4461

End Item: M915, HEMTT

The link and attachment to Sources Sought Notice 2020-052:

https://beta.sam.gov/opp/067c4eb4295c4e2494617a16da7b8899/view?keywords =2020-052&sort=-relevance&index=opp&is_active=true&page=1

Sources Sought #2020-052.pdf

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-18-C-0238 Award Date: 12 April 2018 Contractor: Penn Detroit Diesel Allison, LLC Value: $318,600.00

Contract: W56HZV-09-D-0032 Award Date: 8 January 2009 Contractor: Oshkosh Defense, LLC Value: $8,894,062.80

Contract: W56HZV-07-C-0354 Award Date: 2007 April 17 Contractor: MTP Drivetrain Services, LLC Value: $1,865,000.00

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Transmission with Container used on M915 and HEMTT trucks.

c. Unusual and Compelling Urgency: N/A

d. Subcontracting Competition: FAR clause 52.244-5, Competition in

Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

The Government will require the awarded Contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business in accordance with FAR19.704.

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: 18 MAR 2020 Signature: //signed//

Title: Engineering Branch Chief Date: 18 MAR 2020

Title: Associate Director, Sustainment Engineering Date: 18 Mar 2020

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.

Title: Item Manager Date: 3.11.2020 Signature: //S//

Name:

Title: Supervisor Date: 3/11/2020 Signature: //S//

Title: Acting Group Leader, Trailers & Heavy Tactical Trucks Date: 3/11/2020 Signature:

Name:

Title: Dir, Transportation Systems PSID Date: 3/16/2020 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 other than cost and pricing data as this has been determined to be a commercial item.

Name: Leah Bourdeau Title: Contracting Officer Date: 3/24/20 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: 3/24/20 Signature: //s// LCB

15. Legal Concurrence:

Concur: // // Date : 03/30/2020