JA_SPRDL122R0121_Redacted.pdf

SPRDL1-22-R-0121 (JA-00527)

Previous J&A: SPRDL1-18-R-0479 technical details, which is the reason why this item cannot be procured competitively.

This transmission is a critical component to the entire M915A5 fleet. With this transmission, mechanical output from the engine is delivered to the differential unit, which rotates the wheels, propelling the vehicle either forward or backward. The gears in the transmission reduce the higher engine speed to a slower rotational speed of the wheels. As part of this process, the torque available to the vehicle is increased, particularly at slower vehicle speeds. This results in enhanced driving conditions for the vehicle. For example, the greatest torque is needed when operating at low vehicle speeds (or to start from a stopped position), so the transmission transforms the engine’s output to provide high torque in this scenario. Alternatively, the engine must be able to perform efficiently at high speeds. The transmission unit makes these changes in torque, power, and speed possible. Unlike other transmissions that can be considered a commercial off the shelf (COTS) product, this transmission assembly has been specifically designed to mount to the M915A5 vehicle. Modifications are made to the base transmission to specifically configure it for installation on these vehicles.

The Original Equipment Manufacturer (OEM) for the M915A5 is Freightliner, which is now owned by Daimler Trucks. During initial production of this vehicle, the currently approved transmission, manufactured by Allison Transmission, was designed, configured, and integrated for this specific vehicle. Only the approved source is familiar with the specific configuration required for use on this vehicle. The risk associated with using an improper transmission is too great, so this procurement must be limited to vendors in possession of Allison’s technical data (i.e., its certified distributors).

There are other manufacturers which can produce similar transmissions (gear ratios, capacity, size, etc.), but they do not have the exact bolt pattern, performance, or maintenance procedures as the transmission that was specifically designed, configured, and integrated for installation on this specific vehicle.

The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Team has estimated that reverse engineering the transmission assembly would cost a minimum of $2,500,000 with a lead time of 24 months for design, development, obtaining statistically correct tolerance levels, production, and Technical Data Package (TDP) development. In addition, the assembly would have to undergo qualification and integration testing on a M915A5 vehicle, which would have an additional lead time of 12 months and cost an additional estimated minimum of $2,000,000 since a vehicle transmission is one of the most complex and critical items on a vehicle. GVSC contends that a mechanism to recover its investment shall be demonstrated by the Government before development will be considered.

In total, reverse engineering and qualification testing to include a material test, form, fit, and function test, performance test, and durability testing would require at least 36 months and an estimated minimum of $4,500,000. This expense could not be recouped through subsequent competition within a reasonable amount of time. At the current average usage rate of 12 units each year, a current unit cost of , and assuming 25% cost savings achieved through competition, the in annual savings would take over years to offset the estimated $4,500,000 cost of reverse engineering the item and qualifying another source.

The efforts involved on the contract of the sole source components do 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 a mobility 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 procurement to maintain readiness and avoid vehicle dead-lining due to supply problems.

The current M915A5 Transmission Stock on Hand (SOH) is zero, with three backorders waiting fulfillment, and the Average Monthly Demand (AMD) is one. The 36 months it would take to reverse engineer this item would create a deficiency of 36 transmissions.

The conclusion of the reverse engineering process would result in 36 vehicles being dead-lined. The delay associated with reverse engineering is unacceptable in fulfilling the Army’s requirements and would have a significant impact on the Army’s ability to sustain the M915A5 fleet.

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 an approved small business distributor, 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. A small business subcontracting plan will be required if award is not made to an approved small business distributor as this procurement is expected to exceed the $750,000 threshold for the small business subcontracting plan requirement.

c. Sole Source: Notices required by FAR 5.201 will be posted.

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

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 since the Government does not possess a fully defined and validated TDP for this item. The source of supply, Allison Transmission (CAGE: 73342), owns the detailed technical data regarding this item.

8. Market Research: A Sources Sought Notice #2022-SPRDL122R0120 was posted to SAM.gov on 8 July 2022 and was open for 17 days. No responses were received in response to the Sources Sought Notice.

Computer-based market research was conducted by GVSC Engineering during July of 2022. Keywords searched: Transmission, Dressed Transmission, M915A5, Gear Box

Links used to conduct market research are listed below:

https://www.eaton.com/us/en-us/products/transmissions/commercial-vehicle-transmissions.html https://twindisc.com/markets/land-based/military/ https://sapatransmission.com/propulsion-systems/

Findings: The results of this search did not produce any new companies that would provide a direct replacement Transmission for the M915A5 that is 100% new and not rebuilt that could be installed in the M915A5 without considerable time and effort to adapt the new components. The M915A5 is in sustainment at this time so massive vehicle system changes to accommodate competition are not funded and are unable to be fielded.

As a result of the Market Research, it was concluded that the Government does not have enough detailed information consider similar parts for this specific application on the M915A5. This transmission assembly cannot be identified as a COTS item.

The Contract Specialist performed web-based market research on 18 July 2022 and determined this transmission assembly is a commercial item pursuant to FAR Part subpart 2.101 – Definitions. The transmission assembly being procured by this action may have a limited application, but transmission assemblies, in general, have numerous applications in the commercial marketplace. No suitable transmission assemblies were identified as being a replacement for the asset being procured.

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

10. Other Facts: Procurement History:

(1) Contract: SPRDL1-19-D-0031 Award Date: 11 December 2018 Contractor: Penn Power Group, LLC (CAGE 62860) – authorized distributor Value: $1,883,494.38 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source