JA_SPRDL123R0170_Redacted.pdf
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- Redacted Justification and Approval (J&A) Federal contract opportunity
- Solicitation number
- SPRDL1-23-R-0170
About this file
This document is a Justification and Approval (J&A) for a sole source procurement for a Wheel Assembly, Pneumatic Tire for the M-ATV vehicle. The J&A states that the Technical Data Package (TDP) for this component is proprietary to the original equipment manufacturer, Oshkosh, and reverse engineering efforts would cost an estimated $2.8 million and take up to 18 months. The Government does not have the funds or rights to the TDP to qualify additional sources. As a result, the J&A concludes that competition is not feasible, and a sole source contract will be awarded to Oshkosh. The prior contract was SPRDL1-11-C-0173 awarded to Oshkosh on August 30, 2010 for $14,233,468.69. The current solicitation is SPRDL1-23-R-0170, and the contract is expected to be awarded to an unknown vendor on September 23, 2024.
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SPRDL1-23-R-0170 (JA-00721)
Previous J&A: SPRDL1-10-R-0065 poor braking and hazardous handling characteristics which may lead to loss of vehicle control and potentially vehicular damage, injury, or death.
Reverse engineering the Technical Data Package (TDP) is not feasible due to requirements of the component’s material properties which cannot be readily identified.
Because of the uncertain definition for the requirements, an increased safety risk is possible in which failure of one or more of these items could result in adverse stability and durability of the vehicle. Such a compromised vehicle condition could cause objectionable braking/handling characteristics and thus potentially cause an accident resulting in serious injury or death to operators, passengers and/or others in the vicinity.
Qualification testing, that includes material test; form, fit, function test; performance test;
and durability test, would require at least 18 months and up to $2.8M. The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a competitive build-to-print TDP within a reasonable timeframe.
To neglect qualification testing even commercially available wheel assembly with specification shows same size and load rating, would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the mission in a potentially adverse operational environment. The delay associated with these aforesaid efforts is completely unacceptable in fulfilling the requirements and would have a significant impact on Tank-Automotive and Armaments Command’s ability to support field customers. 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.
The Government does not have rights to the TDP or specifications. The TDP is owned by Oshkosh; as the M-ATV Original Equipment Manufacturer, the firm controls component design and sourcing including the Wheel Assembly, Pneumatic Tire.
Oshkosh owns the rights for this proprietary data.
Reverse engineering efforts involve a significant amount of money and time. The Government does not have the funding for reverse engineering or to qualify additional sources for this product. The cost to reverse-engineer this unique component is estimated at $2.80M. Reverse Engineering the TDP includes but is not limited to the following:
Development Summary Cost
• Obtain Existing Parts: $ 25,000
• Tear Down and Understand the Design: $ 75,000
• Prototype Development: $ 250,000
• Design Fabrication: $ 250,000
• Component Level Safety Testing: $ 250,000
• Conduct System Level Testing: $1,750,000
• Write TDP, Bulletins and Provision Part: $ 200,000
• Total $2,800,000
The Government would recover the reverse engineering and testing costs in seven years. At the current average usage rate of units each year, unit cost of (prior cost plus %) and assuming the % savings achieved through competition, the $ in annual savings would take seven years to offset the estimated $2.8M cost of reverse engineering, testing, and qualifying another manufacturer.
Ultimately, the quantity involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second 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 in section 5.
8. Market Research: A Sources Sought Notice was posted to SAM.gov on 14 August 2023 and was open for 15 days. No responses were received.
Market research was performed by Sustainment Engineer in September 2023 via internet searching on the following websites for Military Run-Flat Wheel manufacturers:
Michelin https://www.michelinman.com/auto/auto-tips-and-advice/tires-101/run-flat-tires
Continental https://www.continental-tires.com/products/b2c/car/continental-tire-technologies/runflat-tires/
Pirelli https://www.pirelli.com/tires/en-us/car/tech-and-knowledge/run-flat
Goodyear https://www.goodyear.com/en_US/tires/by-type/run-on-flat
Findings: Given that no technical data is available for the subject, Wheel Assembly, Pneumatic Tire, market research results are limited. The information found via the internet search was too generic due to the lack of critical technical information such as material and load requirements, dimensions, assembly component interfaces, etc.
Therefore, the results of this search did not produce any new companies that would provide a direct replacement for the M-ATV Wheel Assembly, Pneumatic Tire without considerable time and effort to adapt the new component or reengineer a new component. The M-ATV is a sustainment program. Therefore, extensive vehicle system changes to accommodate competition are not funded.
Summary: As a result of the Market Research, it was concluded that the Government does not have enough detailed technical data information to look into similar parts for this specific application on the M-ATV. The Wheel Assembly, Pneumatic Tire cannot be identified as a Commercial Off-The-Shelf item as detailed in section 5 above.
9. Interested Sources: To date no additional sources have expressed interest in this item.
This NSN has been determined to be a commercial item based on market research which identified this product as a type customarily available in the commercial marketplace.
10. Other Facts: Procurement History:
Contract Number: SPRDL1-11-C-0173 Award Date: 30 August 2010 Contractor: Oshkosh Defense, LLC Contract Value: $14,233,468.69 Competitive Status: FAR 6.302-1, Only One Responsible Source
11. Technical Certification: I certify that the supporting data under my cognizance which is included in the justification is accurate and complete to the best of my knowledge and belief.
Name:
Title: Engineering Division Chief Email: @army.mil Signature:
10/24/2023
X
Engineering Division Chief Signed by: USA
Signature:
10/26/2023
X Adam Reinbolt Adam Reinbolt Contracting Officer Signed by: REINBOLT.ADAM.ROSS.
File details come from the government source that posted it. Updated .