Redated_JA_-_SPRDL1-16-R-0362_updated-signed.pdf

SPRDL1‐16‐R‐0362

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-16-R-0362

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

2. Description of Action: This action will result in a new Firm Fixed Price, five year Indefinite Delivery Indefinite Quantity (IDIQ) type contract for the 5-BA Valve Control. This award is projected for the 4th quarter of FY 2016 and Army Working Capital Funds (AWCF) will be used.

AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

3. Description of Supplies/Services:

The 5-BA Valve Control National Stock Number (NSN) 4820-01-559-5983 procurement is planned for a minimum quantity of 9 each and a maximum quantity of 225 each over five years. The 5-BA Valve Control is a hydraulic valve that controls crane movement for the Grove crane currently mounted on the Forward Repair System (FRS). The 5-BA Valve is a safety critical item. The only available source for the 5-BA Valve Control is:

Contractor Name: Grove U.S. L.L.C. (DBA Manitowoc Crane Group) Cage:12361 Part Number: 7-926-100586

4. Authority Cited: The statutory authority permitting this action is 10 U.S.C.

2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302-1(a)(2)(ii)(A) & (B) Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition, or unacceptable delays in fulfilling the agency’s requirements.

5. Reason for Authority Cited:

As authorized by FAR 6.302-1, procurement by other than full and open competition is necessary because control valve sets from a manufacturer other than the original equipment manager (OEM) would not be compatible with the Grove crane. Grove is the current manufacturer of the crane used on the FRS and the only source that can be used as a direct replacement and comply with form, fit, and functions.

The Forward Repair System, in its current configuration, was tested using a Grove crane with Grove hydraulic control valves. The use of other than Grove valves would cause compatibility issues that could result in system damage and possible injury to personnel.

The Government does not own the technical data for the Grove crane, nor does the Government have the rights to the technical data. Competitively procuring replacement valves would be impractical and would incur testing and re-engineering costs that the Government could not reasonably expect to recoup through competition. The 5 Valve control sets are needed in order to replace broken or damaged cranes that are currently in the field. Re-engineering the FRS to accept other than the current Grove crane control valves cannot be done in a short time and would cause unacceptable delays.

Re-engineering efforts are estimated to require 9 months minimum to redesign the crane and hydraulic system, equating to a cost of approximately $160,000.00. Once the new design is available, the FRS will need to undergo user and safety testing. It will take a minimum of 6 months to get on the testing schedule at Aberdeen Proving Ground. Barring any corrective actions, testing is estimated to take 8 weeks. Testing is estimated to cost approximately $90,000.00. In total, this redesign effort is estimated to take no less than 17 months and $250,000.

Procurement history shows that the last purchase for NSN 4820-01-559-5983 was for a total quantity of 18 in 2015. Future quantities are expected to be around 47 per year. If a redesign effort saved $550 (approximately 10% cost savings per unit), a total of 456 units would have to be purchased to recoup the up-front cost incurred. Taking future quantities into account that could take 9+ years to recoup, after the initial 17 month delay for engineering and testing.

Quantities are not high enough to justify the cost to increase competition.

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 qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office (CMO). 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 4820-01-559-5983 fully competitive for the following reasons: re-engineering efforts are estimated to require 9 months minimum to redesign the crane and hydraulic system, equating to a cost of approximately $160,000; additional testing would be required to ensure the data acquired is safe and accurate, estimated cost associated is $90,000; and no funding is available to conduct the tasks required to acquire or re-engineer the commercially controlled data. Quantities are not high enough to justify the cost to increase competition.

8. Market Research:

Market research was performed using both the internet and through telephone contact with companies in this particular market segment. The research showed that there is a commercial market segment that typically manufactures hydraulic valves used on cranes. However, only the Grove crane valves can be used as a direct replacement and comply with form, fit and function requirements.

9. Interested Sources:

To date, no other sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this item. Request for sources sought was sent on 24 Jun 2016.

10. Other Facts:

a. Procurement history:

1.) Contract: SPRDL1-15-C-0108 Award Date: 06 May 2015 Contractor: Brighton Cromwell LLC Quantity: 18 Value: $ 100,413.72 Competitive Status: Limited Source