JA_SPRDL124R0071_Redacted.pdf

SPRDL 1-24-R-0071 (JA-00772)

Previous J&A: SPRDL 1-18-R-0255

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL 1-24-R-0071

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Oshkosh Defense LLC, Commercial and Government Entity (CAGE) 75Q65, for National Stock Number (NSN) 2520-01-577-8294, Purchase Request Order Number EH4C0158EH, or an offeror providing the product of the approved source for the Dressed Hydraulic Transmission and Container used on the Heavy Equipment Transporter (HET) M 1070A 1. This action will be funded using Army Working Capital Funds.

3. Description of Supplies/Services: The NSN 2520-01-577-8294, Government Kit Drawing 57K7252, Oshkosh Defense LLC. part number 3815362, Vehicular Hydraulic Transmission is a device used on vehicular power transmission components to increase torque and/or change ratios between the drive and driven shaft. This transmission is used on the HET M1070A 1. The deliverables for this contract are for a base quantity of seven each, with an option quantity of seven each, making a total quantity of 14 each.

The total maximum value of this contract is

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (AMSC):

B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate Technical Data Package (TDP), data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are val id.

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 Federal Acquisition Regulations (FAR) 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Reason for Authority Cited: This transmission is found on the HET A 1 platform.

Transmissions are a critical component of the vehicle's drive train assembly. The transmission contains several sets of gears at variable gear ratios and is responsible for maintaining relative engine torque and revolutions per minute to keep the engine from

Previous J&A: SPRDL 1-18-R-0255 operating at dangerous levels while under varying loads. The HET A 1 is designed and produced by Oshkosh. Oshkosh developed the system level requirements for the drivetrain system and possesses details regarding the design intent of this transmission.

The performance characteristics, mounting details, materials, components, specifications, and certifications of this transmission are unknown. Oshkosh is the only vendor who possesses the technical data and expertise to manufacture and dress this transmission.

The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.

The TOP includes Government owned drawings for fittings as well as the container.

Over 50% of the value total package lies with the transmission itself, therefore sole source procurement and a justification and approval is required.

The transmission is manufactured solely by Oshkosh, who owns all the data rights to the transmission. The dressed transmission assembly is defined by the Government owned Tank-Automotive and Armaments Command (TACOM) drawing 57K7252, which is a parts list consisting of several items: the transmission (Oshkosh P/N 3815362), the shipping container, and various yokes, plates, brackets, and other fitting and fastening equipment. The Government-owned TOP (top level kit drawing 57K7252) does not include any technical data for the transmission, which is why this item cannot be procured competitively. Only Oshkosh has the specific technical expertise and proper facilities to manufacture and dress the transmission. Additionally, Oshkosh has the history of building transmission assemblies that allow the HET A 1 to perform its mission.

Oshkosh has manufactured transmissions that have successfully operated in the field and have met all mobility requirements outlined in the Army Technical Purchase Description. Unlike other commercially produced transmissions, this transmission as dressed has been designed specifically for use on the HET A 1. Oshkosh and the Government conducted developmental and operational testing during the vehicle's design and initial production phases, which proved that Oshkosh could manufacture a transmission that meets the Government's performance and reliability, availability, and maintainability (RAM) requirements. 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 f it or function properly, which could result in failure , jeopardizing mission capability and fleet mobility.

Due to the lack of technical data available for the transmission, reverse engineering is the only recourse for the Government to increase competition through development of a competitive build-to-print TOP. The Ground Vehicle Systems Center Heavy Tactical Vehicle Sustainment Team has estimated the effort that would be required to reverse engineer this transmission 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

Previous J&A: SPRDL 1-18-R-0255 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 transmission competitively, a complete TOP 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 TOP 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 fai lures 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 TOP within a reasonable amount of time. At the current average usage rate of four units each year, a current unit cost of-· and assuming 25% cost savi~ved through competition, the annual savings of - would take ove- to offset the estimated $3.5 million cost of reverse engineering the item and developing a competitive TOP.

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.

Previous J&A: SPRDL 1-18-R-0255

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 Oshkosh dressed transmission. Transmissions are identified by characteristics such as gear ratios, number of gears, and application. The materials, dimensions, mounting details, and performance requirements are not available for this assembly. Due to the lack of a TOP or in-depth technical specifications of the sole-source part, the validity of researched transmissions is difficult to evaluate. Other manufacturers offer similar transmissions, but the form, fit, and/or function of alternatives are not identical to the sole-source part, nor would they come with the necessary dressing components to fit the HET A 1.

Keywords:

Heavy Truck Transmission HET Transmission Allison Transmission 4800SP

Website:

https://www.allisontransmission.com/en-gb/transmissions/models/4000-series https://www.eaton.com/us/en-us/products/transmissions/commercial-vehicle transmissions.html https://www.caterpillar.com

The results of this search did not produce any new companies that would provide a direct replacement transmission assembly that is 100% new and could be installed in the HET A 1 without considerable time and effort to adapt the new components.

Additionally, internet searches did not yield any products that meet the exact performance specifications of the existing transmission transfer assembly due to the lack of detailed technical data.

On 22 February 2023, additional market research was conducted by the contract specialist. The contract specialist performed an inquiry was conducted into the Department of Defense (DOD) Commercial Item Determination Database regarding the NSN 2520-01-577-8294. No records pertaining to said NSN were discerned within the database. It is noteworthy that, despite the absence of a formal commercial determination for NSN 2520-01-577-8294 in the database, compelling evidence exists indicating the utilization of FAR Part 12 procedures in the prior procurement of the identical product. This procurement occurred under contract SPRDL 1-19-D-0073, which was duly awarded on the 8 March 2019.

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 (SAM.gov)

Previous J&A: SPRDL 1-18-R-0255 on 23 February 2024, and remained open for 15 days. No responses were received.

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

10. Other Facts: Procurement History:

Indefinite-quantity Contract Number: SPRDL 1-19-D-0073 Contractor: Oshkosh Defense (75Q65) Award Date: 12 May 2022 Competitive Status: FAR 6.302-1 , Only one responsible source and no other supplies or services will satisfy agency requirements.

The following delivery orders were places by DLA Land Warren under Indefinite quantity Contract SPRDL 1-19-D-0073:

Delivery Order SPRDL 1-19-F-0194 awarded 08 March 2019 to Oshkosh Defense (75Q65) for a quantity of nine each Hydraulic Transmissions units with a total dollar value of $489,915.36.

Delivery Order SPRDL 1-19-F-0496 awarded 18 September 2019 to Oshkosh Defense (75Q65). for a quantity of five each Hydraulic Transmissions units with a total dollar value of $285,873.95.

Delivery Order SPRDL 1-21-F-0026 awarded 25 August 2021 to Oshkosh Defense (75Q65). for a quantity of eight each Hydraulic Transmissions units with a total dollar value of $466,030.80.

Firm-Fixed Price Contract: SPRDL 1-13-C-0034 Contractor: Oshkosh Corporation (45152) Award Date: 29 April 2013 Contract Value: $1 ,057,545.32 Competitive Status: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

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.

Previous J&A: SPRDL 1-18-R-0255

Name:

Title: Di Email:

Signature:

X I

S i g n e d by : U SA

5 / 23/2024

12. Requirement 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: Di Email:

Signature:

X

Signed by :

S/22/2024

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination will be based on appropriate forms of cost and/or price analysis. Negotiations will be conducted as necessary. The Contractor will not be required to submit certified cost and pricing data based on the exception at FAR 15.403-1(b)(3) because this item is determined commercial.

Name: Reinbolt, Adam Title: Contracting Officer Email: adam.reinbolt@dla.mil Signature:

X A dam Rei n bo l t

Signed b y : DLA

5/24/2024

Previous J&A: SPRDL 1-18-R-0255

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Reinbolt, Adam R Title: Contracting Officer Email: adam.reinbolt@dla.mil Signature:

X Adam Reinbo lt

S i gned by : OLA

S/24/2024

Previous J&A: SPRDL 1-18-R-0255

Approval Authority for Acquisitions Greater Than $750,000 But Less Than $15M

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Dressed Hydraulic Transmission and Container

b. NSN: 2520-01 -577-8294

c. Total Quantity: 14 each

d. Total Estimated Value:

This action will be awarded under other than full and open competition pursuant to the authority of 10 U.S.C. 3204(a)(1) and subject to the availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

Signature:

WIEBUSCH.JAM Digilmlys~nedey

WIESUSCH.JMIIE.~ X IE oa10:m4.os.12 1~

Competition Advocate