JA_SPRDL124R0070_Redacted (1).pdf

SPRDL1-24-R-0070 (JA-00761)

Previous J&A: SPRDL1-18-R-0228 certifications of this component are unknown. Meritor is the only vendor who possesses the technical data and expertise to manufacture this differential assembly.

The Government does not have rights to the Technical Data Package (TDP), specifications and 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.

This differential assembly is manufactured solely by Meritor, who owns the data rights to the differential assembly. Only Meritor has the specific technical expertise and proper facilities to manufacture this differential. Additionally, Meritor has the history of building differentials that allow the HET A1 to perform its mission. Meritor has manufactured differential assemblies that have successfully operated in the field and have met all mobility requirements outlined in the Army Technical Purchase Description. Unlike other commercially produced differentials, this differential has been designed specifically for use on the HET A1. Meritor and the Government conducted developmental and operational testing during the vehicle's design and initial production phases, which proved that Meritor can manufacture a differential that meets the Government's performance and reliability, availability, and maintainability (RAM) requirements. If the Government were to purchase differential assemblies 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 differential assembly would not fit or function properly, which could result in failure, Due to the lack of technical data available for the differential assembly, reverse engineering is the only recourse for the Government to increase competition through development of a competitive build-to-print TDP. The Ground Vehicle Systems Center Heavy Tactical Vehicle Sustainment Team has estimated the effort that would be required to reverse engineer this differential based on conversations with Subject Matter Experts in Reverse Engineering, Test & Evaluation, and Quality Engineering. The reverse engineering process consists of procuring samples of the current part, tearing down the samples to understand and characterize the assembly’s components, dimensions, and materials, and designing the reverse engineered part. Several prototypes would need to be fabricated. The process to reverse engineer the part and fabricate prototypes would cost an estimated minimum of $1,000,000 with a lead time of 12 months, of which $100,000 would be used to procure samples, $700,000 would be used to characterize the part and develop the new design, and $200,000 would be used to fabricate prototypes. In addition, the prototype would have to undergo design validation and vehicle integration testing, which would cost an additional estimated minimum of $1,500,000 with an additional lead time of 24 months. The prototype testing would consist of a form, fit, and function test, a performance test, RAM testing, accelerated life testing, cold and hot environment testing, salt spray testing, and maximum load operation testing. To procure this differential competitively, a complete TDP would need to be developed, which would cost an estimated minimum of $1,000,000 with an additional lead time of 6 months. In total, reverse engineering, design validation, performance testing, and developing the TDP would require at least

42 months and an estimated minimum of $3,500,000. To neglect design validation and integration testing would be a high risk as premature failures of this item in the field could jeopardize the Army’s mission in a potentially adverse operational environment.

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 Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a new and competitive TDP within a reasonable amount of time. At the current average usage rate of units each year, a current unit cost of $ , and assuming cost savings achieved through competition, the in annual savings of $ would take over to offset the estimated $3.5 million cost of reverse engineering the item and developing a competitive TDP.

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. SOLE SOURCE: Notices required by FAR 5.201 will be posted.

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 above.

8. Market Research:

Market research was conducted by the GVSC Heavy Tactical Vehicle Sustainment Team during February of 2024 to find suitable competition for the Meritor differential assembly. Differentials are identified by characteristics such as open, locked, limited slip as well as gear design, which change the behavior of each wheel on an axle depending on driving conditions. The materials, dimensions, mounting details, and performance requirements are not available for this assembly. Due to the lack of a TDP or in-depth technical specifications of the sole-source part, the validity of researched differentials is difficult to evaluate. Other manufacturers offer similar differentials, but the form, fit, and/or function of alternatives are not identical to the sole-source part.

Keywords:

Differential Assembly Heavy Truck Differential Commercial Truck Differential HET Differential

Websites:

https://www.maximinc.com/parts-differential-parts-category https://gearcentre.com/products-services/heavy-duty-products/heavy-duty-differentials/ https://wellertruck.com/inventory/differential https://www.eaton.com/us/en-us/products/differentials-traction-control/original-equipment-differentials.html

Findings:

The results of this search did not produce any new companies that would provide a direct replacement differential assembly that is 100% new and could be installed in the HET A1 without considerable time and effort to adapt the new components. Additionally, internet searches did not yield any products that meet the exact performance specs of the existing differential assembly due to the lack of detailed technical data.

On 22 February 2023, the contract specialist conducted additional market research.

Specifically, they examined the Department of Defense (DOD) Commercial Item Determination Database (CID) for information related to the National Stock Number (NSN) 2520-01-592-5841. However, no records were found for this NSN in the database. It is important to note that although there is no formal commercial determination for NSN 2520-01-577-8294 in the database, there is compelling evidence suggesting the use of Federal Acquisition Regulation (FAR) Part 12 procedures in the previous procurement of the same product. This procurement took place under contract SPRDL1-18-C-0314, which was officially awarded on 17 August 2018. As a result of the market research conducted, it was concluded that this product is of a type used, sold/leased, or offered for sale to the public and is available in the commercial marketplace with or without modifications pursuant to the definition of a commercial product at FAR 2.101. This product meets the definition of a commercial product at FAR 2.101.

A Sources Sought notice was posted to The System for Award Management on 26 February 2024, and remained open for 15 days. Three (3) responses were received.

USLS, Inc., VSE Federal & Defense Services and Norcatec all expressed interest in receiving future notifications regarding the opportunity.

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