15R0155.pdf

J&A SPRDL1-15-R-0155

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-15-R-0155

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

2. Description of Action: The proposed contract action is to procure 517 brake shoe sets used on the HEMTT variants M977A4, M978A4, M983A4, M984A4 and M985A4 with a 100% option. Competition will be limited to Oshkosh Defense, LLC (CAGE 75Q65; P/N 95SK340). This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The contractor shall provide the spare part listed in Table 1 used on various HEMTT A4 platforms.

Total Estimated value of this contract: $305,836.52

Table 1 – List all spare parts

NSN NOMENCLATURE P/N

3040-01-588-6738 Brake Shoe Set 95SK340

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, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: The government does not possess the TDP for this brake shoe set. Efforts to procure a TDP for the item would not be cost effective;

procuring a TDP from the contractor is estimated to be in excess of $150,000.00.

This expense could not be recouped through subsequent competitive procurement.

Through our previous experience, Government Engineering estimates that the cost to develop a competitive procurement package for the item through reverse engineering could run as high as $200,000 and could require an estimated delay of at least six (6) months to include fabrication and testing of the hardware prototype, and releasing a validated TDP. Fabrication of a reverse engineered prototype would take as long as four (4) months and cost up to $100,000.

Qualification and durability testing would be required to prove out this item manufactured by new sources. Testing and qualification would require at least another four (4) months and up to an additional $100,000. The neglect of testing and qualification efforts would be a high risk as a premature failures of this item in the field could result in extensive loss of equipment and possible loss of life.

Testing could also reveal latent defects that would adversely impact the readiness of the equipment and Operational and Support (O & S) costs. Due to lack of funding and urgency of the item requirement, the Government would not be able to conduct reverse engineering efforts at this time. The Government would not be able to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive package.

6. Efforts to Obtain Competition: This action is limited to Oshkosh Defense LLC (CAGE 75Q65). Interested sources can seek approval through the Source Approval Program with the Competition Advocates Office. To date, there has not been any expressed interest by any other known vendors to become qualified to produce this item.

7. Actions to Increase Competition: It is not beneficial to increase competition because the Government does not own or have rights to the technical data for this brake shoe set. The time and money costs would not be recouped through competition.

8. Market Research: This item appears on the Competition Advocates Shopping List (CASL) for 2014. A Competition Management Office review of the CMO ACTLOG, TACOM LCMC Market Surveys and Competition Management Office Mailboxes showed no activity on this request for potential sources for this Noun:

Brake Shoe Set NSN: 3040-01-588-6738.

There are a number of brake manufacturers with the potential and capacity to design, develop, test and supply a brake shoe set capable of supporting military vehicle applications. Examples of these companies include Axletech Inc., and Dana Corporation. None of these companies have the particular knowledge of this item to build it without undergoing a program with the cost and time delay described in Section 5, which is inconsistent with our requirements.

9. Interested Sources: To date, no other sources have expressed an interest in providing the item listed above. The synopsis notice required by FAR 5.201 will be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement History:

Contract: W56HZV13C0175

Award Date: 10 June 2013 Contractor: Oshkosh Corporation Value: $221,835.00 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition Data Available: The Government does not own or possess rights to the technical data.

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.

[x ] $150K to $650K Team Leader [ ] $650K to $12.5M AD/Deputy AD [ ] $12.M to $85.5M Mr. Magid Athnasios EBG [ ] >$85.5 Dr. Paul Rogers

Name: Michael Gibson Title: Mechanical Engineer Date: 21 January 2015

Signature:

Name: Mohan Khabra Title: Team Leader Date: 29 January 2015 Signature: //Signed//

12. 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: Mary Ellen Babcock for Sharon Smith Title: Item Manager Date: 2/3/15 Signature: //s//

Name: Liz Barich Title: HEMTT/M915 Supply Lead Date: 2/3/15 Signature: //s//

Name: Rob Speare Title: Supply Chief, Secondary Item Management and RESET (SIMR) Team Trailers & Heavy Tactical Vehicles Date: 2/3/15 Signature: //s//

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. This determination will be based on the results of a detailed cost and or price analysis and the contractor’s submission of certified cost and pricing data. Based on the estimated dollar amount, certified cost and pricing data will not be required as the contract is expected to be under the threshold identified in FAR 15.403-4(a)(1). Other than cost or pricing data may be required in accordance with 15.403-3.

Name: Leah C. Bourdeau Title: Contracting Officer Date: 13 March 2015 Signature: //s// LCB

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

Name: Leah C. Bourdeau Title: Contracting Officer Date: 13 March 2015 Signature: //s// LCB

15. Legal Concurrence:

Concur: // Darin R. Morency // Date: 03/13/2015