JA_SPRDL124R0052_Redacted.pdf

SPRDL1-24-R-0052 (JA-00747)

Previous J&As: SPRDL1-18-R-0459 (NSN 2590-01-592-5937)

SPRDL1-19-R-0273 (NSN 2590-01-592-5927)

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-24-R-0052

1. Contracting Agency: Defense Logistics Agency - DLA Land Warren (DLA-WRN).

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Tulsa Winch, Commercial and Government Entity (CAGE) 75096, or Oshkosh Defense, CAGE 75Q65, for National Stock Numbers (NSN) 2590-01-592- 5937, Winch, Drum, Vehicle, and 2590-01-592-5927, Winch, Drum, Vehicle, using Army Working Capital Funds.

3. Description of Supplies/Services: NSN 2590-01-592-5937, Part Number (PN) 51883-007 and NSN 2590-01-592-5927, PN 51882-004, are Winches, Drum, Vehicle, used on end item Heavy Equipment Transporter (HET). The deliverables for this contract are as follows:

NSN 2590-01-592-5937 is for a base quantity of 42 each, with an option quantity of 42 each, for a total quantity of 84 each with a maximum value of

NSN 2590-01-592-5927 is for a base quantity of 18 each, with an option quantity of 18 each, for a total quantity of 36 each with a maximum value of

The total estimated value of this contract is

Acquisition Method Code (AMC) for both NSNs:

3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC) for both NSNs:

R - The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204 (a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: The winch is a critical component to the HET fleet.

With the winch, the HET can recover itself when immobilized due to terrain, move other vehicles, or assist in recovering non-mission capable tactical and combat equipment.

The winch accomplishes these actions by using a motor that turns a spindle from which the drum assembly is attached. The drum, in turn, either winds or unwinds a cable which is attached to a fixed point. The cable needs to be strong enough to either move the HET or any other vehicle that could in need of recovery. This winch was specifically designed to mount to the HET chassis and can function fully without the use of the engine or traditional vehicle function.

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.

Tulsa Winch owns the rights to the technical data. The Original Equipment Manufacturer (OEM) for the HET is Oshkosh Defense who sourced the part to DP Manufacturing Inc, who has since been acquired by Tulsa Winch. Tulsa Winch conforms to the Army’s detailed purchase description for this winch including having a 50,000 pound (lb.)

minimum load capacity integrated on the HET. Tulsa Winch’s winch has been proven through extensive performance and durability testing on the HET and conforms to the SAE J706 standard for winch rating. Tulsa Winch has the means to produce this part, owns the technical data for the winch, and has the necessary knowledge to make the winch to fit and function correctly on a HET platform. If the Government were to purchase winches that have not undergone proper verification, mission failures and potential loss of mission critical functions to the vehicle would likely occur.

Since the Government does not own any of the technical data, the Government would have to reverse engineer the winch to identify all aspects of the part. A reverse engineering effort would include work to clarify and define a winch with the same fit, form, and function as the original, then, design the new winch 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 Technical Data Package (TDP) would have to be built so the part could be competitively sourced, and a source would have to be found.

The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Engineering Team has used a historical cost analysis of another HET winch to estimate that Reverse Engineering the HET A1 winch would cost an estimated minimum of $1,750,000 for:

- Reverse Engineering (RE), 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 Delay Cost Part R&D 18 months $1,000,000.00 RAM testing 6 months $ 500,000.00 Develop TDP 4 months $ 250,000.00 Total Development Time 18 months $1,750,000.00

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 TDP within a reasonable time frame.

NSN 2590-01-592-5937: At the current average usage rate of units each year, a current unit cost of $ and assuming % savings achieved through competition, the $ in annual savings would take over years to offset the estimated $1,750,000 cost of reverse engineering the item and qualifying another source.

NSN 2590-01-592-5927: At the current average usage rate of units each year, a current unit cost of $ , and assuming % savings achieved through competition, the $ in annual savings would take over years to offset the estimated $1,750,000 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 will not be pursuing competition for this item.

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 17 January and was open for 30 days. No responses were received.

The GVSC Tactical Vehicle Sustainment Engineer performed the following internet searches on 21 June 2023 to find suitable competition for the Oshkosh winch.

Keyword: winch, heavy truck winch, commercial vehicle winch

Website: https://www.meritor.com/en/products/transfer-cases/mtc-3000--series;

https://cotta.com/products/transfer-cases/;

https://spicerparts.com/parts/transmission/off-highway/transfer-cases

Findings: Winches offered by Meritor, Cotta, and Spicer were reviewed. In summary, there is not enough information to determine whether these options will fit the HET in the same manner as the 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 winches for this procurement is extremely difficult to ensure.

Although several manufacturers make products that appear similar to the winch used on the HET, the lack of a TDP or detailed drawings for the HET winch prohibit the engineer from knowing the exact specifications that must be met by a potential alternative. A wide range of winch geometries, torque outputs, and gear ratios are available across the brands reviewed. However, the government does not have access to any of these characteristics for the provisioned winch, so a direct comparison is not possible. The current winch 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 winch is custom for the application and should be identified as a sole-source item.

The Contracting Officer made the determination that the Winches, Drum, Vehicle are commercial items based on procurement history. The prior awards were 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).

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

10. Other Facts: Procurement History:

2590-01-592-5937

(1) Contract: SPRDL1-19-D-0027 Award Date: 6 November 2018 Contractor: Badger Truck Center, Inc. (CAGE 06YZ5, authorized distributor) Value: $1,252,312.04 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract: SPRDL1-18-P-0092 Award Date: 1 December 2017