Redacted_J A_SPRDL1-15-R-0270.pdf

CMO Control Number: XXXX-XXX

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed contract action is to procure 15 wire rope hoists used on the HEMTT series of vehicles with a 100% option. Competition will be limited to Grove U.S. LLC doing business as Manitowoc Crane Group (CAGE 12361; P/N 6974001850). 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 the HEMTT variants.

Total Estimated value of this contract: $317,504.40

Table 1 – List all spare parts

NSN NOMENCLATURE P/N

3950-01-193-1743 Hoist, Wire Rope 6974001850

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:

Grove LLC designed and tested this hoist for the HEMTT family of vehicles. The Government does not own any data or patent rights to this item. No technical data exists that would define production specifications for the hoist, nor the vehicle, and since the item was developed and tested at private expense, such data are considered proprietary to the supplier. The Government did not fund Grove LLC in their efforts to test and develop the item. Also, the Government did not fund the contractor to prepare detailed TDPs. Grove LLC is the sole owner of the technical data rights to this item. The non-availability of technical data requires that this item be procured on a non-competitive basis from the current manufacturer, Grove LLC, for the replenishment of spare parts.

The Government does not possess the hoist TDP. Efforts to procure a TDP for the item would not be cost effective; estimates to procure a TDP package from the contractor would be in excess of $200,000.00 to cover the contractor’s design and prove-out costs, and cause a delay of 12 months. The cost to procure the TDP was considered prohibitive. The basis for the cost and delay estimates is previous experience and prior procurements. There are no current plans to acquire a competitive TDP. This expense could not be recouped through subsequent competitive procurement.

Total Cost and Delays:

Purchase a competitive TDP: $200,000 and delay 12 months.

Through previous experience, the Government Engineering Command, TARDEC, estimates that the cost to develop a competitive procurement package for the item through reverse engineering could run as high as $75,000 and could require an estimated delay of at least six (6) months, which would include the release of a validated TDP. Several decades ago, TACOM maintained facilities dedicated to reverse engineering along with validation testing. Such facilities have been severely reduced whereby TACOM only pursues this initiative when urgently needed; otherwise nearly all reverse engineering and testing is done by outside contractors. Fabrication of a reverse engineered prototype would take as long as four (4) months and cost up to $150,000. 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 $75,000.

Develop a competitive TDP: $75,000 and 6 months.

Fabrication through Reverse Engineering: $150,000 and 4 months.

Qualification Testing of a New Source: $75,000 and 4 months.

Total Cost and Delays: $300,000 and 14 months.

To neglect testing and qualification 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 surface 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.

Referencing the above paragraph, performing in-house reverse engineering and testing demanded large resources and overhead costs. 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.

Funds are not available for either procuring the proprietary data or reverse engineering the item to create a competitive package. The delay associated with these efforts is unacceptable in fulfilling TACOM requirements and would have a significant detrimental impact on TACOM’s ability to support the soldier in the field.

6. Efforts to Obtain Competition: This action is limited to Grove U.S. LLC doing business as Manitowoc Crane Group (CAGE 12361). 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 for this procurement because the Government does not own or have rights to the technical data for this hoist. The time and money costs would not be recouped through competition.

8. Market Research: Market research was conducted in the preparation of this document. A sources sought synopsis was published and, to date, there have been no additional responses. While other sources have been identified with the potential to design, develop and test a wire rope hoist capable of supporting military vehicle applications, no source has undergone the mandatory testing required to become a qualified source. Interested sources should contact the Source Approval Program with the Competition Advocate’s Office.

9. Interested Sources: To date, no other sources have expressed an interest in providing the item listed above. The notices required by FAR 5.201 will be published and any proposals received shall be considered. Request for sources sought was sent on Jun 2, 2015.

10. Other Facts:

a. Procurement History:

(1) Contract: SPRDL112P0195 Award Date: 29 August 2012 Contractor: Grove U.S. LLC Value: $103,911.40 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract: W56HZV06D0091/VD01/0025AA Award Date: 27 April 2010 Contractor: Grove U.S. LLC Value: $222,187.92

(3) Contract: DAAE0701DS041/0059/0115AA Award Date: 13 October 2006 Contractor: Grove U.S. LLC Value: $161,471.76

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

c. Unusual and Compelling Urgency: N/A

d. Subcontracting Competition: N/A

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: 20 May 2015

Signature:

Name: Mohan Khabra Title: Team Leader, TTS Date: 20 May 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: Nicole Rich Title: Item Manager Date: 5/21/15 Signature: //s//

Name: Liz Barich Title: Secondary Supply Lead Date: 5/22/15 Signature: //s//

Name: Rob Speare

Title: Supply Chief, Secondary Item Management and RESET (SIMR) Team Trailers & Heavy Tactical Vehicles Date:5/26/15 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.

Name: Leah Bourdeau Title: Contracting Officer Date: 02 Jun 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 Bourdeau Title: Contracting Officer Date: 02 Jun 2015 Signature: //s// LCB

15. Legal Concurrence:

Name: // Darin R. Morency // Date: 06/03/2015