JA_SPRDL124R0038_redacted.pdf
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- Redacted Justification & Approval (J&A)
- Solicitation number
- SPRDL1-24-R-0038
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This document is a Justification and Approval (J&A) for a sole source contract award by the Defense Logistics Agency Land and Maritime. The J&A is for the procurement of a Cylinder Assembly, Actuating, Linear (NSN 3040-01-457-1272) for the M1000 Heavy Equipment Transporter (HET). The Government does not have the technical data or intellectual property rights to enable competitive procurement of this item, which was developed and tested by the approved source, DRS Sustainment Systems, Inc. The estimated cost to reverse engineer the component and qualify a new source is $2 million over 18 months. Due to the criticality of the hydraulic steering system to the safety and performance of the M1000 HET, the Government has determined that a sole source award to the approved manufacturer is the only viable option. The J&A provides details on market research, efforts to increase competition, and the rationale for the sole source determination.
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SPRDL1-24-R-0038 (JA-00744)
Previous J&A: SPRDL1-09-D-0033 meet U.S. and European federal automotive safety requirements. The M1000 HET contains a complex hydraulic system of components that is critical to the function of the steering assembly. The hydraulic system of the M1000 HET requires routine maintenance and reliable parts to ensure performance without jeopardizing safety.
The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.
The approved source (DRS Sustainment Systems, Inc. Cage:98255) designed and tested the Cylinder Assembly, Steering for the HET Series Trailers. The US Government does not own any data or patent rights to this item. No technical data exists that would define production specifications for the Cylinder Assembly, nor the vehicle. This item was developed and tested at the manufacturer’s expense; such data are considered proprietary. The non-availability of technical data requires that this item be procured on a non-competitive basis from the current manufacturer for the replenishment of spare parts. Parker Hannifin, Mobile Cylinder Division, Cage: 13829, part number 377 6321 017 is a distributor.
DRS Sustainment Systems, Inc. has had a long history of reliably producing this item. It would be costly and potentially risky to qualify a new manufacturer. Components such as linear actuating hydraulic cylinders require several types of unique testing such as functional, load, pressure, cycle, leak, vibration, reliability, and shock testing. Using a component that has not undergone the same verification processes as the above stated part could impose several safety risks. In the case of the M1000 HET, component failure, in the hydraulic steering system could lead to accidents, damage to equipment, and potential harm to personnel. Non-verified components could lead to a degradation in the trailer’s performance, including reduced load carrying capacity, stability issues, and decreased maneuverability, compromising mission readiness of the equipment.
Parts lacking proper vetting may require more frequent maintenance and compatibility issues, leading to higher operation costs and downtime of equipment.
A cost estimate was completed to show the potential cost for reverse engineering, designing, developing, and testing a linear actuating cylinder assembly. For a component like a linear actuating cylinder assembly, samples would need to be procured and broken-down to understand and characterize the assembly application, dimensions, and materials. Engineering and design would require three months with design validation and Computer Aided Design models. Tooling, facilities, materials, and equipment would need to be purchased for the fabrication of prototypes, with an estimated three-month lead time. This would be followed by eight months of testing and development including form, fit, function, and testing for load, pressure, cycle, leak, vibration, reliability, and shock. Additionally, there would also be overhead costs associated to labor, facilities, and program management. Once testing is completed, a final Technical Data Package (TDP) would need to be developed with an additional lead time of four months.
• Engineering and Design: $350,000
• Tooling and Prototype Manufacturing: $500,000
• Material Procurement: $150,000
• Testing: $450,000
• Labor and Facilities: $300,000
• TDP Development: $250,000
In total, this investment would be completed in an 18-month timeframe with a minimum estimated cost $2,000,000.
The Government would not be able to recover, through subsequent competition, the duplication of costs required for procuring proprietary data or reverse engineering this item to create a competitive build to print TDP within a reasonable amount of time. The current average usage rate is units each year with a $ current unit cost.
Assuming 25% savings can be achieved through competition, the in annual savings would take over years to offset the estimated $2,000,000 cost of reverse engineering the item and qualify another source.
Scheduling Concern Statement:
N/A
The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.
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" and 52.244-5, "Competition in Subcontracting," to maximize small business opportunities and utilization.
SOLE SOURCE: Notices required by FAR 5.201 will be posted.
7. Actions to Increase Competition:
TDP Status:
The Government has not completed the screening process and does not have a TDP.
Efforts to Increase Competition:
There are no plans to increase competition for future procurements due to the reasons cited above.
Additional actions to increase competition information:
The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement and does not plan to purchase this data.
8. Market Research: A Sources Sought Notice was posted to SAM.gov on 12 January 2024, and was open for 15 days. No responses were received.
The Contracting Officer determined the Cylinder Assembly, Actuating, Linear, to be a commercial item based on procurement history and market research conducted by the Contract Specialist on 1 February 2024. The prior award was made using FAR Part 12 procedures and the award is precedent setting in accordance with DFARS case 2020- D033 and DFARS 212.102(a)(ii)(A).
Market research was conducted by the GVSC Tactical Vehicles Team during September of 2023. Given that very little technical data is available for the Cylinder Assembly, Actuating, Linear (NSN 3040-01-457-1272), market research results were limited. Rated pressures, load, dimensions, and other performance specifications could not be determined.
Using applicable application data for steering cylinder assemblies an internet search was performed. Several companies were contacted for quotes on hydraulic steering cylinder assemblies for trailer steering applications. The following components/assemblies were compared as similar parts.
Keywords: Hydraulic Steering Cylinders, Hydraulic Cylinder, Stroke, Rod Diameter, Extended Length, Collapsed Length, Retracted Length, Single Action, Single Acting, Welded Hydraulic Cylinder, Linear Actuating Hydraulic.
https://www.enerpac.com/en-us/rc-series-cylinders/general-purpose-cylinder/RC1510 Enerpac RC1510, 15.7-ton Capacity, 10.00 in Stroke, General Purpose Hydraulic Cylinder.
https://bvahydraulics.com/product/H1510
BVA
Hydraulics General Cylinder H1510 15 Ton 10-Stroke 10,000 PSI (700BAR).
https://www.columbushydraulics.com/ Columbus Hydraulics Hydraulic cylinders for steering application.
https://www.aircraftsystemstech.com/p/actuators Aircraft Systems Aircraft hydraulic system actuators.
Several companies offer high pressure hydraulic cylinders for industrial applications.
The pricing and features of the comparable cylinders are similar to that of the Parker Hannifin cylinder assembly. However, due to the lack of technical data performance specifications could not be compared. Since technical data is unavailable for the Parker
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