W52H0909C0062.pdf

CMO Control # 09-241

CONTROL No. ACA090055

HMMWV Door Assist Mechanism

Est. Dollar Value: $31,128,460

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: U.S. Army TACOM Contracting Center, Rock Island, IL 61299-7630.

2. Description of Action: This action will result in a firm fixed price contract with Parker

Hannifin Corporation, Oildyne Division of Minneapolis, MN 55428-3602, for a new and urgent requirement for 1,354 Door Assist Mechanism (DAM) Kits, Parker Hannifin’s P/N 645916.

Each Kit contains a DAM for each of the four M1151 High Mobility Multi Wheeled Vehicle

(HMMWV) doors. Award is projected for the second quarter FY09 and FY09 PA funds will be used. An acquisition plan for the Up-Armored HMMWV was approved XXX.

3. Description of Supplies/Services. The estimated unit price is $22,990 per Kit. The estimated value of the total quantity of 1,354 is $31,128,460.

4. Authority Cited: 10 USC 2304(c)(2), Unusual and Compelling Urgency, as authorized by

FAR 6.302-2.

5. Reason for Authority Cited:

a. As authorized by FAR 6.302-2, procurement by other than full and open competition is necessary because Parker Hannifin is the only approved supplier of the DAM, and the only contractor who can meet the Government’s aggressive schedule to field the Frag Kit 6. The

DAM is an integral part of the Frag Kit 6. Parker Hannifin has in place the necessary equipment, material, and skilled labor to produce the required quantity of DAM Kits in support of the Frag

Kit 6.

b. The DAM is needed in mid-March 2009 in order to build the Frag Kit 6 for delivery

XXX. The contractor’s delivery schedule is approximately 8-12 weeks. Even if we are able to award by 13 Feb 09, initial deliveries will not begin until at least 10 Apr 09. Parker Hannifin states they have the capability to meet this aggressive requirement using the following schedule:

285 each in April 09

381 each in May 09

381 each in June 09

307 each in July 09

Exception 1 under 10 USC 2304(c) is not an option because we would not receive deliveries in time to meet the required schedule. In order to procure this requirement under Exception 1, we would have to synopsize, solicit, receive a proposal, audit the proposal, conduct negotiations, and process the award document. The estimated time for this process is 180 days. Deliveries would not begin until at least the September/October 2009 timeframe. Although Parker Hannifin is the only approved source for this item, 10 USC 2304(c)(2) must be used in order to meet the unusual and compelling urgency of this item and to meet the required delivery date of April

2009.

c. The very aggressive production and fielding schedule of the FK6 to SWA requires

Parker Hannifin to deliver all 1,354 DAM Kits during the months of April – July 2009.

d. Parker Hannifin developed the baseline technical data for this item and obtained

Government approval for its use in the HMMWV at its own expense. The Government did not fund Parker Hannifin to develop a fully detailed TDP for future competition. Parker Hannifin retains and controls all technical rights to this system.

e. The estimated cost to research and develop a technical data package is estimated to cost at least $1,000,000 and take more than 16 months. This proposed procurement would meet all expected program requirements for the DAM Kits before that time. Beyond the quantity of

1,354, there are currently no plans to procure additional DAM Kits. To wait sixteen months to develop a competitive TDP, six to eight months to compete and award a contract, and additional time to allow the contractor to produce, test, and ship the items, would result in failure of the

Frag Kit 6 program. This would put the successful and timely implementation of the Frag Kit 6 on the HMMWVs in jeopardy, resulting in reduced war fighting advantage and potential injury to

Soldiers.

6. Efforts to Obtain Competition: The proposed contract action will be synopsized to alert interested subcontractors.

7. Actions to Increase Competition: A performance specification was created prior to the DAM competition. The USG evaluated four unique Door Assist Systems/Mechanisms for the M1151

HMMWV. Parker Hannifin was the only manufacturer whose system met the Program

Manager’s performance requirements. The process to obtain additional approved suppliers for this specific requirement is not on-going beyond Parker Hannifin due to the high development resources and the fact that there are no known requirements beyond the current quantity of 1,354.

8. Market Research: Market research was conducted through AM General STS Engineering

Work Directive 323 in March 2008. AM General utilized research through the internet, references from past programs, company brochures and previous trade shows and seminars, and experience from Subject Matter Experts at AM General. Multiple companies specializing in door opening devices were sent performance requirements, and their products were evaluated.

Prototypes were developed and integrated on HMMWV assets and tested at Government testing facilities. The Government contractually paid for AM General’s market research and was extensively involved in the down select process. No system other than Parker Hannifin’s was able to demonstrate a fully developed door opening system capable of handling the unique

HMMWV requirements. Several entities tried developing similar devices but none have been qualified as an approved source other then Parker Hannifin. There are no other door opening efforts, commercial or Governmental, that are far enough along to meet the requirements for immediate fielding of these survivability enhancements.

9. Interested Sources: To date, XXX have expressed interest in developing a Door Assist

Mechanism capable of meeting the known performance requirements. The Parker Hannifin DAM was the only system that met all requirements and passed necessary testing.

10. Other Factors:

Procurement History: None

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

Name: XXX Date: 10 Feb 2009_

Title: Act DPM, Tactical Vehicles Signature:_//XX //_

12. Requirement Certification: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

Name: XXX Date: 10 Feb 2009_

Title: Act DPM, Tactical Vehicles Signature:_// XX //_

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on a cost audit conducted by DCAA.

Certified cost and pricing data will be required in accordance with FAR 15.403.

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

Name: Lisa Devlin Date: 11 Feb 09

Title: Contracting Officer Signature: //signed//

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of 1,354 Door Assist

Mechanism Kits, Parker Hannifin’s P/N 645916, in support of the Frag 6 Kit, at an estimated value of $31,128,460, on an other than full and open competition basis pursuant to the authority of 10 USC 2304(c)(2), subject to the availability of funds, and provided the services and property described herein have otherwise been authorized for acquisition.

DATE: 20 Feb 09 SIGNATURE: /s/ hph

HARRY P. HALLOCK

Principal Assistant Responsible for Contracting