JA-SPRDL123C0045_Redacted.pdf

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Redacted Justification & Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-22-R-0119
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification and approval document outlines the procurement of a transmission assembly for the M915A3 line haul truck from Allison Transmission as a sole-source vendor. The transmission is a critical component of the vehicle's drive train designed specifically for integration with this platform. As the original equipment manufacturer owns all technical data and configuration details, alternative sources would require extensive reverse engineering and qualification testing estimated at $7 million with savings from competition not recovered for over 25 years based on annual demand of five units. Prior contracts were awarded on a sole-source basis to Allison Transmission and Penn Power Group for this component. The related solicitation will result in an award to an undisclosed vendor on March 10, 2023 for an unknown amount.

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SPRDL1-22-R-0119 (JA-00540) –

Previous J&A SPRDL1-20-R-0099 is available.

5. Reason for Authority Cited: The Dressed Transmission Assembly (with Container), for use on the M915A3 Line Haul Truck, is a critical component of the vehicle’s drive train. The transmission transfers power generated by the engine to the axles to propel the vehicle either forward or backward. The transmission allows the mechanical output of the engine to change the speed or torque applied to the wheels based on the terrain and operating conditions.

The Original Equipment Manufacturer (OEM) for the M915A3 is Freightliner, which is now Daimler Trucks North America. During initial production of this vehicle, the transmission, manufactured by Allison Transmission, was designed, configured, and integrated for this specific vehicle.

This item is defined by the Government-owned drawing number 57K4461, which is a kit consisting of two items: the dressed transmission assembly shown on drawing 12478860 and the shipping container shown on drawing 12436544. The Government-owned technical data package (TDP), top level kit drawing 57K4461, does not fully define the transmission, which is why this item cannot be procured competitively.

The transmission is offered solely by Allison Transmission, who owns all the data rights.

Only Allison Transmission has the specific technical expertise and proper facilities to produce the Transmission. Additionally, Allison Transmission has the history of building transmissions that allow the M915A3 to perform its mission. Although the transmission is no longer manufactured, the Integrated Logistics Support Center (ILSC) Equipment Specialist team, in conjunction with the Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Engineering Team, reviewed the data provided by Allison Transmission and determined the transmission can still be procured from Allison Transmission as a rebuilt transmission through their ReTran department under P/N 29543093. Only Allison Transmission is familiar with the specific configuration required for this vehicle. If the Government were to purchase transmissions 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 transmission 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 the transmission to identify all aspects of the part. A reverse engineering effort would include work to clarify and define a transmission with the same fit, form, and function as the original, then design the new transmission 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 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. After the qualification, the TDP would have to be built so the part could be competitively sourced, and a source would have to be found.

The GVSC Heavy Tactical Vehicle Sustainment Engineering Team has used historical data from past reverse engineering efforts to estimate that reverse engineering the M915A3 transmission would cost an estimated minimum of $7,000,000 for:

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

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

- TDP development to procure competitively.

A detailed breakdown of cost impacts is shown below.

Action Cost Part R&D $3,000,000 RAM Vehicle Testing $2,000,000 Develop TDP $2,000,000 Total Development $7,000,000

The Government would not be able to recover, through subsequent competition, the additional of costs involved with either procuring the proprietary data, or reverse engineering the item to create a competitive TDP within a reasonable timeframe. At the current average usage rate of five units each year, a current unit cost of , and assuming a 25% savings achieved through competition, the in annual savings would take over years to offset the estimated $7,000,000 cost of reverse engineering the item to qualify 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.

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.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 12 July 2022 and was open for 15 days. No responses were received.

The Ground Vehicle Systems Center (GVSC) Tactical Vehicle Sustainment Engineer performed the following internet searches on 23 August 2022 to find suitable competition for the Allison Transmission Driving Automotive Transmission.

Keyword: transmission, heavy truck transmission, commercial vehicle transmission

Website: https://www.tremec.com/menu/medium-and-heavy-duty-truck-transmission/ ;

https://www.eaton.com/us/en-us/products/transmissions/commercial-vehicle-transmissions.html ; https://aftermarket.zf.com/en/aftermarket-portal/trucks-and-buses/products/transmissions/

Findings: Transmissions offered by TREMEC, Eaton, and ZF were reviewed. In summary, there is not enough information to determine whether these options will fit the M915A3 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 the researched transmissions for this procurement is extremely difficult to ensure.

Although several manufacturers make products that appear to be similar to the transmission used on the M915A3, the lack of a TDP or detailed drawings for the M915A3 transmission prohibit the engineer from knowing the exact specifications that must be met by a potential alternative. A wide range of transmission dimensions, torque-to-weight ratios, and number of gears are available across the brands reviewed.

However, the current transmission was designed by the OEM specifically to fit onto this vehicle, and integration/verification testing was conducted for this reason. Any other alternative would require integration and extensive testing to mitigate potential risks in the field, such as negative impacts to vehicle safety and operational readiness.

Therefore, it can be concluded that this transmission is custom for the application and should be identified as a sole-source item.

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

10. Other Facts: Procurement History:

Contract Number: SPRDL1-20-C-0193 Award Date: 4 AUG 2020 Contractor: MTP Drivetrain Services Contract Value: $1,010,750.61 Competitive Status: FAR 6.302-1 Only one responsible source

Contract Number: SPRDL1-18-C-0238 Award Date: 12 APR 2018 Contractor: Penn Power Group Contract Value: $318,600.00 Competitive Status: FAR 6.302-1 Only one responsible source

File details come from the government source that posted it. Updated .