JA SPRDL124R0080 Redacted.pdf

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Attached to
Redacted Justification and Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-24-R-0080
Issued by
Defense Logistics Agency Land and Maritime

About this file

This is a Justification and Approval (J&A) document for other than full and open competition from the Defense Logistics Agency - Land Warren (DLA-WRN) for a sole-source Firm-Fixed-Price contract award to Grove U.S. L.L.C. or Oshkosh Defense for cylinder assemblies used on Heavy Expanded Mobility Tactical Trucks (HEMTT). The requirement is for 12 base units and 12 option units of NSN 3040-01-193-4062 outrigger cylinders, which are critical components that provide stabilization for the HEMTT crane system.

The J&A cites that Grove is the only vendor with the technical data and expertise to manufacture these cylinders, as they were specifically designed for this vehicle during initial production. The government does not own the technical data rights, and reverse engineering would cost approximately $875,000 and take 12 months. Market research conducted in March 2024 included checking the DOD Commercial Item Database and posting a 15-day Sources Sought notice on SAM.gov, with no responses received. The document provides extensive procurement history showing multiple delivery orders to Grove U.S. L.L.C. between 2001-2007 under previous contracts W56HZV-06-D-0293 and DAAE07-01-D-S041, with quantities ranging from 15 to 65 units per order.

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SPRDL1-24-R-0080 (JA-00802)

No Prior J&As are available.

The HEMTT platform was designed and tested by Oshkosh, who owns the intellectual property for the truck. Oshkosh developed the system level requirements for the outrigger assembly and possess details regarding the design intent of the cylinder.

Oshkosh then sourced the assembly to Grove. During initial production of this vehicle, the outrigger cylinder was designed, configured, and integrated by Grove for this specific vehicle.

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.

Grove is the only vendor who possesses the technical data and expertise to manufacture and assemble this outrigger cylinder. Grove has manufactured outrigger cylinders that have met all system level requirements and have successfully operated in the field. If the Government were to purchase cylinders 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 cylinder would not fit or function properly, which could result failure or flipping of the HEMTT while recovering stranded vehicles in the field, which would jeopardize mission capability and fleet readiness.

Since the Government does not own any of the technical data, the Government would have to reverse engineer the outrigger cylinder to determine all aspects of the Cylinder.

A reverse engineering effort would include work to clarify and define a cylinder with the same fit, form, and function as the original. Design requirements should be broken down and clarified without any ambiguity. Technical information such as understanding the parameters to include types and load ratings of hydraulic cylinders and cables, housing dimensions, and mounting dimensions. 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 historical data from past reverse engineering efforts to estimate that Reverse Engineering the HEMTT cylinder would cost an estimated minimum of 12 months and $875,000.00 for:

- Research and Development (R&D), including part 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 12 months RAM Vehicle testing 4 months Develop TDP 6 months Total Development Time 22 months $875,000.00

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 technical data package within a reasonable time frame. At the current average usage rate of , a current unit cost of $ and assuming savings achieved through competition, the annual savings would take about years to offset the estimated $875,000 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 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: The Ground Vehicle Systems Center (GVSC) Tactical Vehicle Sustainment Engineer performed the following internet searches on 31 January 2024 to find suitable competition for the Grove outrigger cylinder.

Keyword: outrigger cylinder, heavy duty hydraulic cylinder

Website: https://www.powerpackerus.com/hydraulic-cylinders/stabilization-truck-outriggers/hydraulic-outrigger-stabilizers/ https://www.ramindustries.com/stabilizer-cylinders.aspx https://www.rrproducts.com/hydraulic-cylinder-outrigger-r163216.html

Findings: When searching for alternatives, the engineer came across Power-Packer, Ram, and R&R Products which offer industry solutions for outrigger cylinders. However, the government does not have any technical information for the Grove outrigger cylinder because the data is proprietary, so further research could not be completed. Although several manufacturers make products that appear to be similar to the cylinder used on the HEMTT, the lack of a TDP or detailed drawings for the cylinder prohibit the engineer from knowing the exact specifications that must be met by a potential alternative. A wide range of component strength, collapsibility, maximum load, and hydraulic and air connections are available across the brands reviewed. However, the government does not have access to any of these characteristics for the provisioned cylinder, so a direct comparison is not possible. The current cylinder 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 operational readiness and mission failure. Therefore, it can be concluded that this cylinder is custom for the application and should be identified as a sole-source item.

On 18 March 2024, additional market research was performed by the Contracting Specialist. The Department of Defense (DOD) Commercial Item Determination Database (CID) was checked for NSN 3040-01-193-4062, but no records were found.

Although NSN 3040-01-193-4062 didn't have a formal commercial determination in the database, there is evidence that Federal Acquisition Regulation (FAR) Part 12 procedures were previously employed to procure the same product under contract W56HZV-06-D-0293, awarded on 06 August 2009. 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.

On 18 March 2024, a Sources Sought notice was disseminated on SAM.gov, remaining accessible for a duration of 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: W56HZV-06-D-0293 Contractor: Grove U.S. L.L.C.

Award Date: 18 September 2006 Competitive Status: This contract was awarded by another agency; it is unknown how the solicitation was solicited and by what authority the J&A was approved.

The following delivery orders were placed under Indefinite Quantity Contract, W56HZV- 06-D-0293:

Delivery Order VD01 awarded on 06 August 2006 to Grove U.S. L.L.C. for a quantity of 65 each Cylinder Assembly units with a total dollar value of $183,976.00.

Delivery Order 0001 awarded on 18 September 2006 to Grove U.S. L.L.C. for a quantity of 24 each Cylinder Assembly units with a total dollar value of $65,291.76.

Delivery Order 0002 awarded on 24 January 2007 to Grove U.S. L.L.C. for a quantity of 40 each Cylinder Assembly units with a total dollar value of $108,819.60.

Delivery Order 0003 awarded on 13 December 2007 to Grove U.S. L.L.C. for a quantity of 30 each Cylinder Assembly units with a total dollar value of $83,247.00.

Indefinite Quantity Contract Number: DAAE07-01-D-S041 Contractor: Grove U.S. L.L.C.

Award Date: 24 May 2001 Competitive Status: This contract was awarded by another agency; it is unknown how the solicitation was solicited and by what authority the J&A was approved.

The following delivery orders were placed under Indefinite Quantity Contract, DAAE07- 01-D-S041:

Delivery Order 0001 awarded on 24 May 2001 to Grove U.S. L.L.C. for a quantity of 18 each Cylinder Assembly units with a total dollar value of $42,649.56.

Delivery Order 0004 awarded on 27 July 2001 to Grove U.S. L.L.C. for a quantity of 20 each Cylinder Assembly units with a total dollar value of $47,388.40.

Delivery Order 0005 awarded on 21 September 2001 to Grove U.S. L.L.C. for a quantity of 36 each Cylinder Assembly units with a total dollar value of $85,299.12.

Delivery Order 0023 awarded on 28 August 2003 to Grove U.S. L.L.C. for a quantity of 36 each Cylinder Assembly units with a total dollar value of $88,711.20.

Delivery Order 0029 awarded on 18 November 2003 to Grove U.S. L.L.C. for a quantity of 15 each Cylinder Assembly units with a total dollar value of $36,963.00.

Delivery Order 0036 awarded on 13 October 2004 to Grove U.S. L.L.C. for a quantity of 15 each Cylinder Assembly units with a total dollar value of $38,441.55.

Delivery Order 0040 awarded on 12 January 2005 to Grove U.S. L.L.C. for a quantity of 30 each Cylinder Assembly units with a total dollar value of $76,883.10.

Delivery Order 0054 awarded on 01 December 2005 to Grove U.S. L.L.C. for a quantity of 20 each Cylinder Assembly units with a total dollar value of $53,305.80.

Delivery Order 0057 awarded on 06 August 2006 to Grove U.S. L.L.C. for a quantity of 36 each Cylinder Assembly units with a total dollar value of $101,894.40.

File details come from the government source that posted it. Updated .