JA_SPRDL120R0154_Redacted.pdf

J&A SPRDL1-20-R-0154

(Previous J&A SPRDL1-19-R-0264 is available.)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-20-R-01 4

JA-00179

1. Contracting Agency: Defense Logistics Agency - DLA Land Warren.

2. Description of Action: The proposed action is to award a new Firm-Fixed-Price (FFP) five-year long-term Indefinite Delivery Indefinite Quantity (IDIQ) contract to Grove U.S. LLC doing business (DBA) as Manitowoc Crane Group, CAGE 12361, for National Stock Number (NSN) 3950-01-213-1623, Hoist Assembly, Truck, utilizing Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: Grove U.S. LLC DBA Manitowoc Crane Group shall provide: Hoist Assembly, Truck, NSN 3950-01-213-1623, with manufacturer Part Number 6-974-000796. This is the hoist assembly for all Heavy Expanded Mobility Tactical Truck (HEMTT) A4 models. The deliverables for this contract are for a minimum of 15 each and a maximum of 450 each, for a total value of minimum and maximum.

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (AMSC):

R - This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid. 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.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 2304(c)1 as implemented by FAR 6.302-1, Only One Responsible Source and No Other Can Satisfy Agency Requirements.

5. Reason for Authority Cited: This part is a critical component to the hoist capabilities of the M984A1 HEMTT Wrecker vehicle. This component is responsible for providing the driving force for the hoist. It is attached to the bottom of the main arm, roughly centered, and stays stationary regardless of the telescoping properties of the hoist. The hoist assembly is also the anchor point for the cable used in the crane portion on the hoist. It is capable of increasing, decreasing, and holding the cable at any length within the vendor specifications. To reach full length the hoist arm expands an additional two sections. The crane on the end is used to recover

(Previous J&A SPRDL1-19-R-0264 is available.)

vehicles that can no longer operate due to poor terrain or tire issues, as well as loading components for transport that are inefficient to lift by other methods. Due to the weight of some of the Army’s vehicles this hoist must be incredibly strong to withstand the force of pulling said vehicle out of an area or lifting heavy items several feet into the air.

The sole approved manufacturer for this part is Grove U.S. LLC. Grove is uniquely qualified to manufacture this part because of the technical data it owns and physical equipment to produce the part. Due to the parts originating from the same company and not owning the technical data to compete with other companies this part should be classified as sole source. Due to the nature of the hoisting extremely heavy objects the proper weight capabilities need to be met or exceeded when finding a replacement. Failure to meet these parameters could cause the item being hoisted to fall to the ground. The impact could in turn destroy the item and endanger the loading crew or other pedestrians with shrapnel and debris. There would also be concern in the integration of a new hoist into the HEMTT system. The position and functionality of this current hoist will mandate special parameters on any replacement hoist that make other hoists unsuitable. The telescopic expansion of the arm along with the amount of weight that needs to be securely lifted may prove too specialized for certain competitors. The resting position of the arm may also prove challenging because of the necessary folds and the direction it faces. If the dimensions of the hoist assembly vary too far from the original design, it may also cause issues for deployment and transportation for the HEMTT vehicle. Testing and validations would need to be done addressing these issues before considering another vendor for this part.

The Ground Vehicle Systems Command (GVSC) Sustainment Engineering Team has estimated that reverse engineering the HEMTT Hoist Assembly would cost an estimated minimum of $1,000,000 with a lead time of 12 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing on a HEMTT Truck would have an additional lead time of 8 months and cost an additional estimated minimum of $1,250,000.00. To develop a Technical Data Package (TDP) would have an estimated cost of $1,500,000.00.

This brings the total cost of reverse engineering to $3,750,000.00. This cost would be inefficient due to the low volume the part is procured at, along with the low return on investment year over year. A more effective means of making this part competitive is through the purchase of the proprietary data from the manufacturer.

Funds are not available at this time to purchase this data, therefore a competitive TDP cannot be created nor can another qualified source be added. Fulfilling this long-term contract will ensure that demand is met, and Army readiness will be maintained.

(Previous J&A SPRDL1-19-R-0264 is available.)

8. Market Research: Market Research efforts included a Sources Sought notice that was posted on the Beta.Sam website on12 March 2020 and no responses were received. A screenshot of the posted Sources Sought notice is below:

SourcesSought_13 MAR2020.pdf

Given that no detailed technical data is available for the HEMTT Hoist Assembly (NSN: 3950-01-213-1623), market research results are very limited. Oshkosh Defense (CAGE: 75Q65) is currently listed as an advisory reference to this NSN under part number 6HB60 and is not set up as a valid source. After speaking with the Oshkosh Defense DLA Parts Team (DParts@defense.oshkoshcorp.com 800- 392-9921) it was determined that part number 6HB60 is a valid and procurable part in Oshkosh's system. However, Oshkosh is not set up in FLIS as a valid source due to all Oshkosh part numbers being coded as non-procurable. Oshkosh is the original equipment manufacturer of the vehicle, but Grove U.S. LLC is the manufacturer meaning buying from Oshkosh is the same as buying from Grove U.S. LLC. Grove U.S. LLC has expressed that the part is valid and procurable per Stacy.Beck@manitowoc.com. With no other valid suppliers, the Government must buy from Grove U.S. L.C.C.

The GVSC Engineer performed internet searches for suitable competition, described below:

Hoist Assembly was searched online to find suitable competition. Keywords used during the search were “Hoist Assembly”, “Crane with 25000 lbs. lift”, and “Hoist 25000 lbs.” This yielded several results including hoists from Liftmoore, Torqhoist, and Prowinch. Without the technical data for this part a true counterpart could not be found. The component strength, collapsibility, cable capacity, maximum load, layout, bolt pattern, hydraulic/air connections would all have to be identical or adjustable to the current hoist assembly for plug and play capability.

Some of the websites searched included:

- http://liftmoore.com/wp-content/uploads/F2593-0-2019-Liftmoore-Crane-Product-

List.pdf

- https://www.torqhoist.com/product-category/hoists/winches/

- https://prowinch.com/

9. Interested Sources: To date no additional sources have expressed interest in this item.