JA_SPRDL122R0095_Redacted.pdf

SPRDL1-22-R-0095 (JA-00516)

Previous J&A is not available system resupply variants.

This axle assembly is manufactured solely by Oshkosh and the firm owns all the data rights. Only Oshkosh has the specific technical expertise and proper facilities to manufacture this axle assembly. Additionally, Oshkosh has a history of building axle assemblies which allow the HEMTT A4 to perform its mission.

Oshkosh has manufactured axle assemblies that have successfully operated in the field and have met all mobility requirements outlined in the Army Technical Purchase Description (ATPD). Unlike other, commercially produced axles, this axle assembly has been designed specifically for use on the HEMTT A4. If the Government were to purchase axle assemblies that have not undergone proper verification, mission failures and potential loss of mission critical functions to the vehicle could occur. Without this proper verification, it is likely that the axle assembly would not fit or function properly, which could result in failure, jeopardizing mission capability and fleet mobility.

Since the Government does not own any of the technical data, the Government would have to reverse engineer this assembly in order to identify all aspects of the unit. A reverse engineering effort would include work to clarify and define an axle assembly with the same fit, form, and function as the original, then design the new axle assembly and develop a prototype. Next, Reliability, Availability, and Maintainability (RAM) testing would have to be completed. Testing would include accelerated life testing, cold and hot environments, salt spray, and maximum load operation testing. To neglect testing would introduce a high risk of premature failures of the axle assembly in the field. Premature failures of the axle would result in mobility failure which could jeopardize the Army’s mission in a potentially adverse operational environment. After the design validation, the Technical Data Package (TDP) would have to be built so the part could be competitively sourced.

The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Engineering Team has used historical data from past reverse engineering efforts to estimate that reverse engineering the HEMTT A4 Axle Assembly would cost an estimated minimum of $3,500,000 for:

- Research and Development (R&D), including part qualification and design, development, and prototype;

- RAM testing, including design validation and vehicle integration testing;

- TDP development, in order to procure competitively; and

A detailed breakdown of cost impacts are shown in the table below.

Action Cost Part R&D $1,000,000 RAM Vehicle testing $1,500,000 Develop TDP $1,000,000 Total Development $3,500,000

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive build to print the TDP within a reasonable time frame. At the current average usage rate of 12 units each year, a current unit cost of , and assuming 25% savings achieved through competition, the in 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:

a. Effective competition: Due to the reasons cited in section 5 above, the Government is not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 16 May 2022 and was open for 15 calendar days. No responses were received.

The GVSC Heavy Tactical Vehicle Sustainment Engineer performed the following internet searches on 10 May 2022 to find suitable competition for the Oshkosh Driving Automotive Axle Assembly.

Keywords: Axle assembly, heavy-duty axle assembly, driving automotive axle assembly

Websites: https://spicerparts.com/parts/axle/commercial/axle-carriers-for-medium-duty-and-heavy-duty-applications ; https://global.dana.com/commercial-vehicles/products/driveline/drive-axles#searchRootId=1cc6c5e8-d343-4928-8f69- 4078e55a8865/facets= ; https://www.axletech.com/en/products/axles ;

https://www.meritor.com/products/axles/

Findings: Axles offered by AxleTech, Meritor, and Dana/Spicer were reviewed. In summary, there is not enough information to determine whether these items will fit the HEMTT A4 in the same manner as the original equipment manufacturer (OEM) sole-source part. Due to the lack of a TDP or in-depth specifications of the sole-source part, the validity of these researched axles for this procurement is extremely difficult to ensure.

Approval Authority for Acquisitions Equal to $750,000 but Less Than $15M

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: Axle Assembly, Driving, Automotive

b. NSN: 2520-01-572-2757

c. Basic Quantity: 28 each

d. Basic Estimated Value:

e. Option Percentage: 100%

f. Quantity with Option: 56 each

g. Estimated Value with Option:

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.

Signature:

Competition Advocate

SHEARER.MARY.E.1250702

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.07.29 13:49:24 -04'00'