REDACTED_J A_FOR_POSTING_19_Ocr_15.pdf

MICC 2015-144 Office Eustis-2015--22

Justification and Approval for Other Than Full and Open Competition

Contracting Activity: Maritime & Intermodal Training Department (MITD), U.S. Army Transportation School (USATSCH) – Hagglund Crane Replacement.

2. Description of Action: This is a new FFP contract to replace the 36 year old Hagglund Crane located at the Landship Training Area, 3rd Port, JBLE. This procurement will use FY15 Other Procurement Army (OPA) funds.

3. Description of Supplies/Services: The Government intends to purchase one (1) MacGregor Hagglund electric deck crane type TGL2526 (SWL 25 tons in general cargo handling at 26 m max outreach). One (1) Standard Twin crane mount, type B cylindrical, with H – 2300 mm. The crane simulates the twin pedestal crane mounted on the deck of strategic sealift ships used to load/unload oversized equipment into the cargo holds of the ship. The crane has two signal cargo booms that can be used independently (single mode) or brought together (twin mode) and used to offload extremely large/heavy loads. The cost is estimated at $2.7M and includes the crane, mount, hardware, installation, and the removal of the existing crane. The approximate time to manufacturer, deliver, and install the crane is 18 months.

4. Authority Cited: This action is authorized under 10 United States Code 2304(c)(1) as implemented by Federal Acquisition Regulation 13.5, Simplified Procedures for Certain Commercial Items.

5. Reason for Authority Cited: The Hagglund crane is the only crane that will meet the U.S.

Army Transportation School (USATSCH) requirement as it is the only one that will fit aboard the Large, Medium-speed, Roll-on/Roll-off (LMSR) Ships. The LMSR vessels have the capacity to load and upload cargo where shore side infrastructure is limited or nonexistent. The Hagglund crane is provided only by one manufacturer, MacGregor. MacGregor is the owner of the Hagglund crane model. They are the only authorized distributor for this specific crane.

(a) The Hagglund crane is the mission-critical training capability employed by USATSCH, JBLE, and Cargo Handling Division to train 88H Soldiers for terminal operations on board a Department of Defense strategic sealift ship. The existing Hagglund crane is mounted aboard a fixed facility that replicates a strategic sealift vessel at 3rd Port, JBLE called the “Landship” and is used for training purposes. The current 1626 cargo-handling crane was manufactured in 1978 and acquired as a used system by the Transportation School/Center in 1984. Since its acquisition, there have been and continues to be numerous repairs needed to maintain the 36 year old crane. Due to the obsolescence of the crane, spare parts for repair are not readily available and, in most cases, are no longer manufactured. The fore mentioned problems with the current Hagglund crane decrease the training capabilities of the crane. This Hagglund crane supports over 45% of the 88H10 TRADOC approved Program of Instruction, which is an MOS producing Initial Military Training course.

(b) The Government requirement is specific for only this type of crane, the Hagglund crane, as it is the only one that will fit aboard the LMSR Ships; there is no suitable alternative to this sole source procurement. The LMSR vessels have the capacity to load and upload cargo where shore side infrastructure is limited or nonexistent. There is only one manufacturer and no authorized resellers for the crane. However, one alternative is to keep using the existing crane which is not the best alternative because parts are no longer being manufactured for it. Another alternative considered is to acquire a used one; however, the availability of parts and the ability to repair it would still remain an issue. The Hagglund crane is used in theater of operations on all DOD strategic sealift ships. Training 88H soldiers on any other type of crane would not prepare these soldiers to operate the actual equipment they will be expected to use. Given the sheer size of this equipment and the relative inexperience of these newly trained soldiers, the risk of damage/loss of vessel equipment as well as life threatening injury to soldiers would be high if these soldiers are not trained on the equipment they will be required to use. Failure to replace this crane will negatively affect mission readiness in that it will impede the training of cargo handling specialists and therefore negatively affect the Army’s ability to efficiently and effectively operate the Hagglund crane on strategic sealift vessels. It will impact the operational commander’s ability to provide shipboard terminal cargo operations in support of the Combatant Commanders mission. MacGregor is the only manufacturer and authorized distributor of this equipment.

6. Efforts to Obtain Competition: A sources sought synopsis was posted to the Army Single Face to Industry (ASFI) on 29 July 2015. The announcement was posted for five days until 5 August 2015. No other sources have expressed an interest in writing.

a. Effective competition. Future requirements will be competed to the maximum extent practicable.

b. Subcontracting competition. Not Applicable. This requirement is a commercial supply and it is not possible to subcontract any portion of it.

7. Actions to Increase Competition: MacGregor is the only manufacturer and authorized distributor of the Hagglund crane; however future requirements will be competed to the maximum extent practicable.

8. Market Research: In accordance with FAR Part 10 – Market Research was conducted to identify small businesses with the capabilities to perform this acquisition. Extensive internet searches of other crane manufacturers resulted in no other similar cranes suitable to meet this requirement. Telephonic research was conducted with 5 companies. Each company contacted stated they could not meet this requirement. Based on this market research, MacGregor is the only manufacturer and authorized distributer of the Hagglund crane.

9. Interested Sources: As referenced in Section 6 above, a sources sought synopsis was issued on ASFI; to date, no other sources have written to express an interest. This announcement was issued to locate responsible 8(a), HUBZone, and small business contractors with the capability to perform this requirement. There is only one manufacturer, MacGregor, and no authorized resellers for the crane.

10. Other Facts:

a. Procurement history. None

(1) None

(2) Not Applicable.

(3) FAR 13.5, Simplified Procedures for Certain Commercial Items.

(4) The previous justification was authorized under 10 U.S.C. 2304(c)(1) as implemented by FAR 13.5. The acquisition was cancelled due to funding constraints.

(5) Not Applicable.

(6) Not Applicable.

(7) A justification was prepared in FY 14, the action was authorized under 10 U.S.C. 2304(c)(1) as implemented by FAR 13.5. Due to funding constraints the acquisition was cancelled.

b. Other facts. None.

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: William Elburn

Title: Contracting Officer’s Representative Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Donald Topping

Title: Director, MITD Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The techniques identified at FAR 15.404-1(b)(2)(vi) will be used to ensure award will be at a fair and reasonable prices. The Contracting Officer used a comparison of industry cost for similar work. Use of competitive published price lists for similar items will be used to determine the pricing fair and reasonable.

Additionally, the techniques identified at FAR 15.404-1(c)(2)(iii)(D) will be used to further ensure award will be at fair and reasonable prices. Certified Cost and Pricing Data are not required as the product required is a commercial product and falls under an exception for Certified Cost and Pricing Data.

Name: Diane Black

Title: Contracting Officer Signature:

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

Name: Diane Black

Title: Contracting Officer Signature:

15. Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Local Small Business Specialist

Name: Curtis Scott DSN: 501-8119

Signature:

Legal Counsel

Name: Marleen J. Phillips DSN: 501-7090

Division Chief

Name: Abra N. Smith DSN: 501-8159

Director

Name: COL Vernon L. Myers DSN: 501-8166

Approval

Based on the foregoing justification, I hereby approve the procurement of a Hagglund Crane to MacGregor USA Inc., for an estimated $2.7M on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c )(1) as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: Signature:

Dean M. Carsello Special Advocate for Competition US Army Mission and Installation Contracting Command, Ft Sam Houston TX