JA_SPRDL1-15-R-02711REDACTED.pdf

SPRDL1-15-R-0271

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 award a new, firm fixed price contract for the tire/wheel/runflat (NSN: 2530-01-598-4010) in support of the High Mobility Equipment Excavator (HMEE). This is a replenishment buy.

Competition will be limited to JCB (P/N: 347/20198, Cage: 0JKF0), the only approved source of this item and OEM of the High Mobility Equipment Excavator (HMEE). Award is projected for the 4th quarter of FY15. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services:

The contractor shall provide the Wheel and Pneumatic Tire Assembly utilized on the HMEE as shown below.

Table 1 – List all spare parts

NSN NOMENCLATURE P/N

2530-02-598-4010 Wheel, Pneumatic Tire 347/20198

The total estimated maximum value of this contract is $538,240.8 for 60 assemblies, which includes the 100% option. The HMEE-I is a pneumatic-tired, diesel-engine-driven, all-wheel-drive tractor with work tools for the excavation of small emplacements, material handling, and general construction tasks. It has tactical mobility over rough terrain and high mobility on roadways. The machine meets with federal highway safety standards as well as the emission standards as applied to heavy-duty, off-highway engines. The machine can be conveyed by rail, marine, highway, and air modes.

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 U.S. Government does not own or have rights to any of the technical data for the HMEE-1. JCB is the owner of the intellectual property and retains full-rights-in-data for its technical data.

The TARDEC Tire Product Lifecycle Engineering Team has estimated that reverse engineering the Wheel and Pneumatic Tire Assembly would cost $2,000,000 - $3,500,000 for development, testing, qualification, production tooling, and wheel certification to develop a potential additional source. The tire/wheel assembly is a fundamental part of the vehicle system which impacts braking, handling, and durability test performance. These tests are critical to ensure the safety of the vehicle, its soldier occupants, and the public at large.

TARDEC’s contention is that a mechanism to recover their investment shall be demonstrated by the Government before they will consider reverse engineering.

In addition, a minimum lead-time of 18 months is required to meet the vehicle's mission performance requirements based on historical tire/wheel testing for this type of equipment. This delay is unacceptable in support of the mission for this vehicle.

Reverse engineering TDP development is not feasible due to requirements of the component’s material properties which cannot not be readily identified. Because of the uncertain definition of requirements, an increased safety risk is possible in which failure of one or more of these items could result in adverse stability and durability of the vehicle.

The quantity involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source. Qualification Testing to include material test, form, fit, function test, performance test and durability test would require at least twelve (12) months and up to $3.5M. This expense could not be recouped through subsequent competition. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the Army’s mission in a potentially adverse operational environment. The delay associated with these aforesaid efforts is completely unacceptable in fulfilling extremely exigent Global War on Terrorism (GWOT) requirements and would have a significant impact on TACOM’s ability to support the soldier customer in the field. Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TDP or qualification testing for a new source. Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition: This action is limited to JCB, the owner of the intellectual property and manufacturer of this item. No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, there are no planned efforts to qualify additional sources due to the fact that that there is no technical data available to produce a competitive TDP, nor are there any funds available to conduct the extensive (costly and time consuming) qualification testing requirements.

Additional interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) 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 JCB HMEE-I spare components. As aforementioned, it would take up to 18 months to develop a competitive technical data package with an estimated maximum cost of up to $3.5 million. The time and money costs would not be recouped through competition. Additional sources cannot be considered at this time.

8. Market Research: The Government has no funding to qualify additional sources, and any qualification would be done at contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office. Given that no technical data is available for the JCB HMEE-I vehicles, internal market research efforts have been very limited.

A sources sought synopsis was issued on June 9, 2015 and to date no other interested sources have expressed an interest in supplying this item.

9. Interested Sources: To date, no other sources have expressed an interest in providing the subject item. Only the approved source owns the most current TDP part iteration (revision level). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time. Sources Sought Notice 2015-190 has posted to Fed Biz Opps on June 04,2015.

10. Other Facts:

a. Procurement History:

(1) Contract: SPRDL1-15-C-0052 Award Date: 2/18/2015 Contractor: Giga, Inc.

Value: $386,000 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract: SPRDL1-14-C-0086 Award Date: 12/6/2014 Contractor: Giga, Inc.

Valve: 699,713.00 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(3) Contract: SPRDL1-14-P-0072 Award Date: 3/13/2014 Contractor: Giga, Inc.

Valve: 47,970.00

Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition Data Available: Acquisition data availability. The Government does not own or have rights to the technical data for the Wheel and Pneumatic Tire Assembly for this procurement.

c. Unusual and Compelling Urgency:

d. Subcontracting Competition:

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 Ali Bazari/Fred Krestik [ ] $650K to $12.5M Randal Gaereminck [ ] $12.M to $85.5M Mr. Magid Athnasios EBG [ ] >$85.5 Dr. Paul Rogers

Name: Richard Vinkovich X 2473 Title: General Engineer (0801) Date: 23 APRIL 2015 Signature: //s//: Richard Vinkovich

Name: Fred Krestik Title: Team Leader Date: 23 April 2015 Signature: //s// Fred Krestik

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: Douglas Fairbank Title: Team Leader Date: 27 May 2015 Signature //s// Douglas A. Fairbank

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. Certified Cost or Pricing Data will not be required as the total value of this procurement is under the threshold of $650,000.00.

Name: Leah Bourdeau Title: Contracting Officer

Date: 10 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: 10 Jun 2015 Signature: //s// LCB

15. Legal Concurrence:

Signature: // Darin R. Morency // Date: June 10, 2015