REDACTED JA 2021-098 W56HZV-21-R-0149.pdf
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- Solicitation number
- 2021-098
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This document is a sole source justification for awarding a contract to an unknown vendor for the procurement of M870A4 Semitrailers, also known as 40 Ton Construction Equipment Transporters. The Army Materiel Command TACOM Life Cycle Management Command seeks to award an indefinite delivery/indefinite quantity contract with a minimum order quantity of two trailers. Previous contracts to Globe Trailer Manufacturing and Load King to fulfill this requirement were terminated or demonstrated test issues. While five companies responded to a recent request for information, the market research found all respondents currently incapable of meeting requirements. As the incumbent contractor, Schutt Industries holds the technical data package and intellectual property rights required by the justification to procure the trailers in the first quarter of fiscal year 2023.
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CMO Control Number: 2021-098
Table 3: Government Developed TDP Timeline Tasks/Actions Timeline Reverse Engineer Analysis 18 months Government Developed TDP 24 months Validate Government Developed TDP
– Build
10 months
Validate Government Developed TDP
– Testing
27 months
Total 79 months
a) Reverse Engineering Analysis. This alternate path forward would add an additional 18 months to reverse engineer the system, subsystems and components. The reverse engineering analysis identifies the following associated tasks:
• trailer disassembly,
• digital scan,
• dimensional measurements,
• material analysis (spectrophotography, surface, hardness, etc.)
• weld analysis,
• commercial-off-the-shelf (COT) item identification, and
• manage and review.
b) Government Developed TDP. The development of the TDP by the Government, utilizes data from the reverse engineering activity, CAD software to develop a 3D solid model from which 2D detail drawings will be created. Government SMEs estimates approximately 1,000 drawings to define the M870A4 Semitrailer design, including all spare parts, these drawings will be reviewed, released and uploaded to a Government database. The estimated lead time for the development of a Government developed TDP is approximately 24 months with some of the tasks being done concurrently. Tasks to develop the TDP consists of the following tasks:
• generate 3D CAD models,
• create 2D drawings,
• review drawings, and
• release CAD files in Government database
c) Validate Government Developed TDP - build. To validate the Government developed TDP two trailers would be used upon completion of fabrication and assembly.
Any issues with the TDP would be identified and adjudicated. The estimated lead time for the Validation of Government TDP (building trailers) is approximately 10 months.
Validation of the TDP consists of the following tasks:
• order raw materials and COTS,
• fabricate and weld Parts, and
• assemble trailer claimed to have done does not demonstrate that they passed performance tests IAW ATPD-2395. The remaining three respondents, included design concepts only without any physical trailers having been built or tested. In summary, the market report cites concerns regarding all of the companies who responded to the RFI, as having significant challenges that would require unacceptable cost and schedule delays to resolve. Industry is currently incapable of providing M870A4 Semitrailers that would support the mission needs of the Army.
b. On-going Market Research. PdM HTV SME's periodically perform research pursuant to FAR 10.002(b)(2). The SMEs consider current market conditions on vehicles and variants, components, and the capabilities of industry to accomplish the requirement when evaluating potential vendors. The SMEs are not aware of any other vendor capable or interested in this action.
9. Interested Sources:
The five RFI respondent companies, by responding to the RFI, have indicated an interest in this effort, although all of the respondents are currently not capable of supporting this effort. The RFI respondents are; Carolina Growler, Fontaine Commercial Trailer Inc., Global Enterprise Inc., Heil Trailer (dba Kayln Siebert), and Talbert Manufacturing.
10. Other Facts:
a. Procurement History: The contract actions below consist of all previous awards to fulfill the M870A4 Semitrailer requirement:
i. On 21 September 2011, the Government awarded a five year Indefinite Delivery Indefinite Quantity (IDIQ) FFP contract W56HZV-11-D-0204 to Globe Trailer Manufacturing, Inc. In March 2014, this contract was terminated for convenience. Globe's M870A4 Semitrailer did not pass Government performance tests IAW ATPD-2395. The total contract value for the effort was!4•14J'A
ii. On 26 August 2016, the Government awarded a five year Multiple Award IDIQ contract with two (2) single-year options (7 year total) for a minimal order quantity of two
(2) Production Prove-Out Test (PPT) trailers to Load King, LLC and Schutt Industries.
____!l. Load King, LLC (W56HZV-16-D-0106): The total estimated contract value was li;iJil Load King was one of two contractors awarded the FFP IDIQ 2016 competitive contract used for trailer competitive PPT and down-select. Load King's trailer demonstrated multiple test issues which have not been resolved, as verified through Government test.
____,!2,LSchutt Industries (W56HZV-16-D-0107): The total estimated contract value was liiialiilll Schutt Industries was down-selected based upon the PPT results for production follow-on efforts. This contract is a 5-year IDIQ FFP contract that expired 25 August 2021. Schutt Industries is required to complete the following under this contract;
PVT, Log Products Development, and Full Material Release.
b. Other Facts: A Schutt Industries TDP, Log Products Development and PVT required under contract W56HZV-16-D-0107, would be used for the production and fielding of trailers in 1QFY23 under the planned sole source contract. The Schutt Industries TDP is the basis for the Government-format TDP and negotiated sufficient IP data rights that the Government will seek to procure with the sole source contract, and is planned to be used for a competitive procurement estimated award timing of 1QFY25.
11/12. Technical/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: Wolfgang A. Petermann TITLE: Project Manager, Transportation Systems
//S// Wolfgang A. Petermann 5 Sept 2021
13. Fair Reasonable Cost Determination:
The negotiated price would be determined fair and reasonable by conducting a cost and price analyses to ensure that the negotiated price is consistent with the Independent Government Cost Estimate (IGCE) for the production trailer and TDP. ACC-DTA has a dedicated Cost and Pricing Division with trained Cost/Price Analysts and Industrial Specialists who would assist the Procuring Contracting Officer (PCO) by performing the Cost and Price analyses. In addition to the price analysis, a cost analysis would be used to evaluate the reasonableness of individual cost elements. These analyses would also be supported by a PdM HTV Technical Review. The recommendations from the Cost/Price Analyst and PdM HTV technical review would be used to develop a recommended negotiating position. This detailed Government position would be approved in a comprehensive Business Clearance Review consisting of reviews from senior contracting officials at ACC-DTA. The results of negotiations and the detailed Fair and Reasonable Determination from the PCO would be documented in a Post Negotiation Memorandum (PNM) that would be reviewed and concurred upon by senior contracting personnel within the Pricing Division.
I hereby determine that the final negotiated price to the Government for this contract action would be fair and reasonable in accordance with FAR 15.403.
NAME: Kaye Chamberlain TITLE: Contracting Officer
//S// Kaye Chamberlain 8 Sep 2021
14. Contracting Officer Certification:
I certify that this justification is accurate and complete to the best of my knowledge and belief.
NAME: Kaye Chamberlain TITLE: Contracting Officer
//S// Kaye Chamberlain 8 Sep 2021
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