Redacted_J&A_SPRDL1-17-C-0122.pdf

Justification & Approval SPRDL1-16-R-0143

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed contract action will result in a new firm-fixed price contract to purchase 22 each Axle Assembly units for the M915, M916 and M917 series trucks with a 100% option. The estimated unit price is each.

Army Working Capital Funds estimated at for the basic quantity plus will be used for this action.

3. Description of Supplies/Services: The proposed action is to procure NSN:

2530-01-505-7567, Axle Assembly, military part number (MPN) 12479565, for M915, M916 and M917 model trucks. The manufacturer part numbers and CAGE codes listed in Table 1 are the only authorized components of MPN 12479565.

Table 1 – part numbers

NSN NOMENCLATURE P/N

Axle RR26160NNPF162-489, CAGE 78500 Air Brake Chamber 3430134, CAGE 15564 Air Brake Chamber 3430135, CAGE 15564 4730-01-289-1531 45 Elbow, Service Brake 159F-10-6, CAGE 93061 4730-01-158-9201 45 Elbow, Parking Brake 159F-6-6, CAGE 93061 4730-00-613-9339 Elbow Pipe to Tube 249F-10-8, CAGE 93061 5975-01-248-7077 Nylon Conduit 68237R, CAGE 77060 2590-01-576-5765 Control Rod Bracket 16-15072-000, CAGE 64678

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: Axle Assembly, NSN: 2530-01-505-7567 is for M915, M916 and M917 model trucks and manufactured by listed sources.

The listed sources designed and tested the Axle Assembly and its components, for M915, M916 and M917 model trucks on its own expense and obtained the Government’s authorization of the Axle Assembly for use on the M915, M916 and M917 trucks.

The NSN 2530-01-505-7567, Axle Assembly is composed of the axle and commercially unique items.

The Government does not own any data rights to this item. No technical data exists that would define production specifications for the Axle Assembly and since the item was developed and tested at private expense of listed sources such data are considered proprietary to the suppliers.

The non-availability of technical data requires that this item be procured on a non-competitive basis from the listed manufacturers for the replenishment of spare parts.

The acquisition data and technical data for 2530-01-505-7567 is owned and controlled by the listed sources.

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. Daimler Trucks North America LLC and Meritor LLC designed and manufacture this system. They passed the requirements of the government qualification tests, to include performance, reliability and durability tests. Daimler Trucks North America LLC, Meritor LLC and other listed sources are owners of the TDP for the Axle Assembly.

Daimler Trucks North America LLC and Meritor LLC have 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 Daimler Trucks North America LLC and Meritor LLC can meet the required performance standards. The suppliers have 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.

These are the only known sources for the Axle Assembly for M915, M916 and M917 models to have the proper form, fit, and function for this application.

The sources have demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item.

They also did the vehicle test for 20,000 miles to qualify their product. If another possible source of supply for this item is identified, qualification testing would be required to prove out the item. Without performing qualification testing, the government risks premature failure of this item.

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. Interested contractors can seek qualification through the Source Approval Program with the Competition Management 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: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN:

2530-01-505-7567 fully competitive for the following reasons:

The estimated times to obtain the proprietary data from the authorized source, develop and test a prototype to make sure the TDP is complete and accurate, and then procure the items via a full and open procurement, is at least 24 months. The estimated cost of such effort would be at least $1,200,000. This estimation was based on similar projects.

Reverse engineering such a part is not justified given the quantities in demand. The reverse engineering expense would not be recouped through subsequent competitive procurement and the 24 month delay is unacceptable to meet Government requirements. Funds are not available to develop model technical data due to low demand and high cost.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require 4 months and $450,000. This expense would not be recouped through follow on competitive procurements. Funds are not available for qualification testing of a new source. To neglect qualification testing is a serious risk as premature failures of the frame, structure, or vehicle could harm the mission. 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: A Sources Sought Notice was requested on 4 February 2016.

To date, no other sources have written to express an interest in becoming an alternate source for this NSN. The notices required by FAR 5.201 shall be published and any proposals received shall be considered.

9. Other Facts:

a. Procurement History:

Contract: SPRDL113P0060//0001AA Award Date: 2013 May 31 Contractor: Wheeler Bros Inc Value: $ 75,533

Contract: SPRDL111C0144//0001AA Award Date: 2011 July 27 Contractor: Freightliner LLC Value: $ 109,980

Contract: W56HZV07D0219/VD02/0013AA Award Date: 2009 November 18 Contractor: Southern Oregon Sterling Value: $ 83,408

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the Axle Assembly used on the M915, M916 and M917 series trucks.

c. Unusual and Compelling Urgency: N/A the only responsible sources and no other supplies or services will satisfy requirements.

The rationale for restricting completion is explained above.

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Standard acquisition procedures will be followed to determine the contract price fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Certified cost or pricing data will not be required as the total dollar value for this procurement is under the threshold.

Name:

Title: Contract Specialist Date: 2/4/2016 Signature: //s//

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

Name: Grover D. Easterling, Jr.

Title: Contracting Officer Date: 17 Feb 2016 Signature: //GDEjr//

14. Legal Concurrence:

Signature:

Date: 02/18/2016