JA_SPRDL122R0008_Redacted.pdf

JA-00461 - SPRDL1-22-R-0008

Previous J&A SPRDL1-17-R-0540

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-22-R-0008

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

2. Description of Action: DLA-WRN proposes to award a new, firm-fixed price contract to Parker Hannifin, Commercial and Government Entity (CAGE) code 09990, for National Stock Number (NSN) 4820-01-193-6793, Linear Directional Control Valve, using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The NSN 4820-01-193-6793, manufacturer part number 85563-01P, CAGE 09990, Linear Directional Control Valve, is used on the Heavy Expanded Mobility Tactical Truck (HEMTT) A4. The deliverables for this contract are a base quantity of 259 each, with an option quantity of 259 each, resulting in a total quantity of 518 each. The total maximum value of this contract including option is

Approved distributor part numbers are as follows:

Grove part number 99261404098 (CAGE 12361) Oshkosh part number 2CK183 (CAGE 75Q65)

Valve, Linear, Direct, NSN: 4820-01-193-6793 is a power operated valve through which hydraulic fluid flows. The position of an internal spool allows or restricts the flow of hydraulic fluid, resulting in the actuation of a cylinder, which applies force to a system.

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (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. 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.

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 the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: This item is a linear directional control valve used on the HEMTT. This valve is located in the material handling crane assembly that can be found on several HEMTT variants, including the M977 (cargo truck), M984 (wrecker), and M985 (missile transporter). Specifically, its purpose is to actuate the outrigger assembly, which stabilizes the vehicle while the crane is being operated. This valve was specifically designed by Parker Hannifin to integrate with the crane assembly, which is built by Grove. As such, it is NOT a commercial off the shelf (COTS) item. Although this crane was designed for a military application, it does not differ substantially from other cranes used for non-military applications aside from what is described below.

The crane assembly is sold to Oshkosh to be integrated on the vehicles mentioned above. As manufacturers of higher-level components, both Grove and Oshkosh created part numbers for the Parker Hannifin valve. The Engineer confirmed that Grove part number 99261404098 and Oshkosh part number 2CK183 are part numbers defining Parker Hannifin part number 85563-01P, so they are approved distributor part numbers for this procurement.

Other manufacturers offer similar linear directional control valves, but the valves would not be identical, and would not have been extensively tested on the specified weapon system. Directional control valves contain many internal components, which must be assembled to complete the part. These parts are manufactured with many different materials, so the material analysis necessary to define the entire assembly would be quite extensive. Additionally, each part is manufactured with specific tolerances, which would be difficult to determine, especially for small components.

Using an alternative part would introduce technical risk to the performance of the crane assembly because the alternative would not have had rigorous developmental and operational tests in the exact application and configuration. The technical data for this valve is proprietary to Parker Hannifin and is unavailable to the Government or commercial manufacturers. Since it is provided as one component of the crane assembly on the vehicle, no component-level technical information is available to describe the performance specifications and mounting information for the valve. If the part fails, the crane assembly, and thus the vehicle, may be unable to complete its mission.

The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Team has estimated that Reverse Engineering this valve would cost an estimated minimum of $500,000.00 with a lead time of eight months for Research and Development (R&D), comprising of design, development, and production. In addition, it would have to undergo qualification and integration testing, which would have an additional lead time of six months and cost an additional estimated minimum of $250,000.00. In order to procure this valve competitively, a complete TDP would need to be developed, which would have a lead time of 4 months with an estimated minimum cost of $250,000.00. Following successful testing and technical data package (TDP) development, GVSC estimates that it would take approximately six months to establish a new source to procure this valve competitively.

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 24

Two responses offering P/N 85563-01P (CAGE 09990) were received. The responses were from Brenco Supply, Inc. (CAGE 6BZD0), and Scott Industrial Systems, Inc.

(CAGE 22841). Both responses identified they are Parker Hannifin (CAGE 09990) distributors. None of the responses identified an interest in qualifying an alternate part number as a replacement for P/N 85563-01P (CAGE 09990).

Computer-based market research was conducted by the GVSC Engineer during November 2021. Directional control valves offered by MasterFlo, Valtek, and Flowserve were reviewed, in addition to commercial valves offered by Parker Hannifin. In summary, there is not enough information to determine whether these options will fit in the HEMTTA4 in the same manner as the sole-source part. Due to the lack of a technical data package or in-depth technical specifications of the sole-source part, the validity of the researched valves is difficult to determine.

Valves are typically rated by their pressure. The pressure rating of the sole-source component is not known, so beginning to narrow a search is impossible. Through visual comparison of the valve from the Army technical manual to the researched valves, none of the commercially available parts researched appear to be identical in mounting locations, size, or shape. Due to the internal components of many valve assemblies, even a valve that looks the same externally can vary greatly in performance or capability. Directional control valves are classified by the number of ports, positions, and methods of actuation. The exact characteristics of this valve are also not known. A valve other than the approved source of supply would have to undergo qualification testing to ensure suitability in this application. A different valve would have a higher technical risk of failure upon installation and operation unless qualification testing was performed, as described in Section 5.

If a commercially available option met Grove’s requirements, the GVSC Engineer believes that it would have been used when designing the Grove crane assembly.

Instead, this valve had to be designed and developed, likely with significant expense to Grove.

When, or if, the technical information for the linear directional control valve is made available, additional and specific market research could be conducted and competitive procurement could be considered.

Links used to conduct market research are below:

https://www.masterflo.com/en/products/control-valves/ https://www.valtek.it/en/products/valves/ https://www.flowserve.com/en/products/all-products?product_category=336&product_type=861 https://ph.parker.com/us/17593/en/hydraulic-directional-control-valves-hvd

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

10. Other Facts: Procurement History:

Contract Number: SPRDL1-20-P-0013 Award Date: 10/28/2019 Contractor: Global Logistics Contract Value: $78,860.00 Competitive Status: Simplified Acquisition – Limited to manufacturer part sources under SAP

Contract Number: SPRDL1-18-D-0034 Award Date: 12/19/2017 Contractor: Wheeler Fleet Solutions Contract Value: $308,564.90 Competitive Status: FAR 6.302-1, where only one responsible source and no other supplies or services will satisfy agency requirements

Contract: SPRDL1-17-P-0070 Contractor: Wheeler Bros, Inc.

Date Awarded: 9/12/2016 Contract Value: $55,479.33 Competitive Status: Simplified Acquisition – Limited to manufacturer part sources under SAP

Contract: SPRDL1-14-P-0156/0002AB Contractor: Wheeler Bros, Inc.

Date Awarded: 8/24/2014 Contract Value: $39,321.14 Competitive Status: Simplified Acquisition – Limited to manufacturer part sources under SAP

Contract: SPRDL1-14-P-0156/0001AA Contractor: Wheeler Bros, Inc.

Date Awarded: 8/24/2014 Contract Value: $45,966.11 Competitive Status: Simplified Acquisition – Limited to manufacturer part sources under SAP

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.

Name:

Title: Engineering Branch Chief, Tactical Vehicles Email: