Redacted JA SPRDL120R0009.pdf

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a new, firm-fixed price five-year Long Term Contract (LTC) for Transmission Control Assembly for Heavy Expanded Mobility Tactical Truck (HEMTT) and Palletized Loading Systems (PLS).

Competition will be limited to part number A5900EN6. Award is projected for the 4th quarter of FY20. This action will be funded using Army Working Capital Funds (AWCF).This is a new, firm fixed price, five year contract.

3. Description of Supplies/Services: The contractor shall provide Transmission Control Assembly for the HEMTT and PLS, part number A5900EN6.

The unit value is $497.49. The minimum quantity of the contract is 90 and the maximum quantity is 2,250. The minimum value of the contract is $44,774.10 and maximum value is $1,119,352.50.

Acquisition Method Code (AMC): 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code: (AMSC): R – the government does not own the data or the rights to the data needed to purchase the part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

Table 1 – part numbers

NSN NOMENCLATURE P/N

2520-01-575-3007 Transmission Control

Assembly A5900EN6, Allison Transmission, Inc., Cage 73342

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 USC 2304(c) (1), as implemented by FAR 6.302-1, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: Transmission Control Assembly, NSN: 2520-01- 575-3007 is for HEMTT and PLS. Allison Transmission, Inc. designed and tested the part on HEMTT and PLS at their own expense and obtained the Government’s authorization of the Transmission Control Assembly for HEMTT and PLS.

The Government does not own technical data rights to this item. No technical data exists that would define production specifications for the Transmission Control Assembly and since the item was developed and tested at private expense of Allison

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009

Transmission, Inc. such data are considered proprietary to the supplier.

The non-availability of technical data requires that this item be procured on a non-competitive basis from the source controlled for the replenishment of spare parts. The acquisition data and technical data for NSN: 2520-01-575-3007 is owned and controlled by the source.

The Government does not own the patent rights or any other proprietary rights to the technical data that would be required to produce a competitive TDP. Allison Transmission, Inc. passed the requirements of the government qualification tests, to include performance, reliability and durability tests.

Allison Transmission, Inc. is the owner of the TDP for the use on HEMTT and PLS.

Allison Transmission, Inc. has the unique and proven qualities and capabilities, facilities, resources, and manufacturing and development experience, to produce and procure the item identified.

The government did not buy the proprietary rights to produce a competitive TDP.

No vendors other than Allison Transmission, Inc. can meet the required performance standards. The supplier has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The authorized sources tested the items in the vehicle to the vehicle specifications.

This is the only known source for the Transmission Control Assembly for the HEMTT and PLS to have the proper form, fit, and function for this application.

6. Efforts to Obtain Competition: There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints – no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become a qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN:

2520-01-575-3007 fully competitive for the following reasons:

Using estimates, the time to procure the proprietary data from the authorized source, develop and test a prototype to make sure TDP is complete and accurate, and then procurement will be in full and open competition, is 12 months. The estimated cost of such effort would be at least $350,000. This estimation was based on similar projects.

Reverse engineering such part would cost $400,000 and be at least 18 months. Funds

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009 are not available to develop technical data due to low demand and high cost.

The Government does not have the funds available nor would the Government be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the items to create a competitive package. At the current usage rate of 90 units per year minimum and 2250 units per year maximum at the cost of $497.49, and assuming the 25% saving achieved through competition, the $2,238.7 minimum and $55,967.62 maximum annual savings would take over 179 years and 7 years respectively to offset the estimated $400,000 cost of reverse engineering the item and qualifying another source.

Using these cost and delay model estimates, the Government likely could not recover in following competition, the costs for the procurement to become competitive and the 18 months delay is unacceptable to meet Government requirements.

The amount of time and funding required to develop, test, certify, and release a reverse engineered competitive design is not justifiable.

Without performing qualification testing, the government risks premature failure of this item, which could result in serious accidents involving fatalities.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require 12 months and $50,000. This expense could not be recouped through following competition. Funds are not available for qualification testing of a new source. The delay associated with these efforts is unacceptable in fulfilling TACOM requirements and would have a significant impact on TACOM’s ability to support the soldier in the field.

8. Market Research: Given that no technical data is available for the Transmission Control Assembly, NSN: 2520-01-575-3007, market research results are very limited.

This is mainly based on the fact that some type of information is required prior to conducting market research. For example, market research can be conducted on the Transmission Control Assembly, but without having any technical specifications, the range of information on this component will be vast, thus not useful. Hence, it is imperative that some technical information be available in order to conduct valuable market research.

Engineering performed limited market research regarding the Transmission Control Assembly. However, the information found was too generic due to the rationale provided above. As of 8 August 2019, this research did not produce any results that other sources exist or are anticipated to become available to satisfy the Government's requirement.

A Sources Sought Synopsis has been posted to Fed Biz Opps on 8-1-2019. To date, no sources have expressed an interest in providing this part.

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009

Components: Transmission Control Assembly

NSN: 2520-01-575-3007

Part Number: A5900EN6 End Item: HEMTT, PLS

The link and attachment to Sources Sought Notice 2019-534:

https://www.fbo.gov/index?s=opportunity&mode=form&id=a37fca52833eeef14a05adc14 2514e50&tab=core&_cview=0

9. Other Facts:

a. Procurement History:

Contract: SPRDL119F0307 Award Date: 2019 May Contractor: Clarke Power Service Value: $ 105,239.2

Contract: SPRDL119F0114 Award Date: 2018 December

Value: $ 73,667.44

Contract: SPRDL117D0011 Award Date: 2018 March

Value: $ 281,495.52

Contract: W56HZV17P0094 Award Date: 2017 May Contractor: Central Power Systems Value: $ 23,716

Contract: W56HZV16C0035 Award Date: 2015 November Contractor: Penn Power Group Value: $ 224,932

Acquisition Data Available: The Government does not own or have rights to the technical data for the Transmission Control Assembly for Heavy Expanded Mobility Tactical Truck and Palletized Loading Systems.

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009

10. 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.

[ ] $250K to $650K Branch Chief [ x ] $650K to $12.5M AD [ ] $12.M to $85.5M Executive Director/SES [ ] >$85.5 GVSC Director

Name: Greg Slota Title: Sustainment Engineer Date: 22 August 2019 Signature: //signed// (Team Lead signed for engineer)

Name: Dan Hefel Title: Sustainment Team Lead Date: 22 AUG 2019 Signature: //signed//

Name: Tony McKheen Title: Associate Director, Sustainment Engineering Date: 23 Aug 19 Signature: /s/

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

Name: Nicole Rich Title: Item Manager Date: 8/23/19 Signature: //s// Nicole Rich

Name: Liz Barich Title: Supply Lead Date: 8/23/2019 Signature: Liz Barich//s//

Name: Alfred Linton Title: Acting Group Leader Chief,Trailers & Heavy Tactical Veh Grp Date: 23 Aug 2019 Signature: Alfred Linton //s//

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

This determination will be based on the results of the appropriate price or cost analysis.

The contactor will not be required to submit certified cost and pricing data in accordance with FAR 15.403-1(b)(1) as this has been determined to be a commercial item.

Name: Leah Bourdeau Title: Contracting Officer Date: 20 Nov 2019 Signature: //s// LCB

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

Name: Leah Bourdeau Title: Contracting Officer Date: 20 Nov 2019 Signature: //s// LCB

14. Legal Concurrence:

Concur: // Darin R. Morency // Date: 11/25/2019

Prior J&A SPRDL1-17-R-0257 available J&A SPRDL1-20-R-0009

Approval Authority for Acquisitions Greater Than $700,000 but less than

$13,500,000.

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: Transmission Control Assembly

b. NSN: 2520-01-575-3007

c. Maximum Quantity: 2,250

d. Estimated Maximum Value: $1,119,352.50

This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 USC 2304(c)(1), and FAR 6.302 (a)(2)(ii)(A) and (B), subject to the availability of funds, and provided that the property herein described has otherwise been authorized for acquisition.

Date: ___________________ Signature:__________________________

Competition Advocate