JA_SPRDL1-17-R-0322_REDACTED.pdf

RTCH Equipment Est Dollar value:

Previous J&A: SPRDL1-17-C-0243

SPRDL1-17-R-0322

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The Defense Logistics Agency (DLA) - Warren is the procuring activity for this action.

The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c)(1), as implemented by FAR 6.302-1, "Only One Responsible Source and no other supplies or services will satisfy requirements."

PART I - Description of Item(s) Required:

1a. Noun: Valve, Flow Control

1b. Basic Quantity: 3 each

1c. NSN: 4820-01-550-5635

1d. MPN: 9238870007

1e. Vehicle System: Rough Terrain Container Handler (RTCH)

1f. Estimated Unit Price:

1g. Estimated Basic Value:

1h. PRON Number: EH7C0819EH

1i. Type of Funds: AWCF - 060011

1j. Type of Contract: Firm-Fixed-Price (FFP)

2a. Noun: Cylinder Assembly

2b. Basic Quantity: 5 each

2c. NSN: 3040-01-550-5627

2d. MPN: 9241460001

2e. Vehicle System: Rough Terrain Container Handler (RTCH)

2f. Estimated Unit Price:

2g. Estimated Basic Value:

2h. PRON Number: EH7C0820EH

2i. Type of Funds: AWCF - 060011

2j. Type of Contract: Firm-Fixed-Price (FFP)

3a. Noun: Cylinder Assembly

3b. Basic Quantity: 32 each

3c. NSN: 3040-01-550-5626

3d. MPN: 9241440001

3e. Vehicle System: Rough Terrain Container Handler (RTCH)

3f. Estimated Unit Price:

3g. Estimated Basic Value:

3h. PRON Number: EH7C0821EH

3i. Type of Funds: AWCF - 060011

3j. Type of Contract: Firm-Fixed-Price (FFP)

4a. Noun: Cylinder Assembly

4b. Basic Quantity: 2each

4c. NSN: 3040-01-550-5625

4d. MPN: 9241470001

4e. Vehicle System: Rough Terrain Container Handler (RTCH)

4f. Estimated Unit Price:

4g. Estimated Basic Value:

4h. PRON Number: EH7C0822EH

4i. Type of Funds: AWCF - 060011

4j. Type of Contract: Firm-Fixed-Price (FFP)

5a. Noun: Valve, Flow Control

5b. Basic Quantity: 3 each

5c. NSN: 4820-01-480-4860

5d. MPN: 920113047

5e. Vehicle System: Rough Terrain Container Handler (RTCH)

5f. Estimated Unit Price:

5g. Estimated Basic Value:

5h. PRON Number: EH7C0823EH

5i. Type of Funds: AWCF - 060011

5j. Type of Contract: Firm-Fixed-Price (FFP)

6a. Noun: Valve, Flow Control

6b. Basic Quantity: 3 each

6c. NSN: 4820-01-480-4846

6d. MPN: A406750100

6e. Vehicle System: Rough Terrain Container Handler (RTCH)

6f. Estimated Unit Price:

6g. Estimated Basic Value:

6h. PRON Number: EH7C0824EH

6i. Type of Funds: AWCF - 060011

6j. Type of Contract: Firm-Fixed-Price (FFP)

7a. Noun: Cylinder Assembly

7b. Basic Quantity: 22 each

7c. NSN: 3040-01-550-5630

7d. MPN: 9239762734

7e. Vehicle System: Rough Terrain Container Handler (RTCH)

7f. Estimated Unit Price:

7g. Estimated Basic Value:

7h. PRON Number: EH7C0825EH

7i. Type of Funds: AWCF - 060011

7j. Type of Contract: Firm-Fixed-Price (FFP)

8a. Noun: Cylinder Assembly

8b. Basic Quantity: 3 each

8c. NSN: 3040-01-546-0707

8d. MPN: 9241450001

8e. Vehicle System: Rough Terrain Container Handler (RTCH)

8f. Estimated Unit Price:

12i. Type of Funds: AWCF - 060011

12j. Type of Contract: Firm-Fixed-Price (FFP)

13a. Noun: Cylinder Assembly

13b. Basic Quantity: 4 each

13c. NSN: 3040-01-550-5627

13d. MPN: 9241460001

13e. Vehicle System: Rough Terrain Container Handler (RTCH)

13f. Estimated Unit Price:

13g. Estimated Basic Value:

13h. PRON Number: EH7C0939EH

13i. Type of Funds: AWCF - 060011

13j. Type of Contract: Firm-Fixed-Price (FFP)

14a. Noun: Transmission Mechanical

14b. Basic Quantity: 3 each

14c. NSN: 2520-01-514-0890

14d. MPN: 9238920006

14e. Vehicle System: Rough Terrain Container Handler (RTCH)

14f. Estimated Unit Price:

14g. Estimated Basic Value:

14h. PRON Number: EH7C0940EH

14i. Type of Funds: AWCF - 060011

14j. Type of Contract: Firm-Fixed-Price (FFP)

15a. Noun: Cylinder Assembly

15b. Basic Quantity: 3 each

15c. NSN: 3040-01-546-0707

15d. MPN: 9241450001

15e. Vehicle System: Rough Terrain Container Handler (RTCH)

15f. Estimated Unit Price:

15g. Estimated Basic Value:

15h. PRON Number: EH7C0941EH

15i. Type of Funds: AWCF - 060011

15j. Type of Contract: Firm-Fixed-Price (FFP)

16a. AMC 3 (for items 1 through 15): Acquire, for the second or subsequent time, directly from the manufacturer.

AMSC H (for items 1 through 15): The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC.”

The estimated total value of this J&A is

PART II - Technical Information and Certification

1. The US Army TACOM LCMC requires the acquisition of the above items. The only approved source for the above items is:

Listed items 1a – 15a. Contractor Name: KALMAR RT CENTER LLC

CAGE: 1NWY2

2. Reasons the items are not suitable for full and open competition:

a. Status of the Acquisition Data:

This procurement is for a variety of replacement spare components as outlined in Part I, above. These components are used in the Army’s RT 240 Rough Terrain Container Handler (RTCH) manufactured by Kalmar RT Center, LLC. The Government does not own any technical data on the components. The Government’s identification data for these components is limited to NSN, part number and supplier (CAGE) code. The Acquisition data for these components is not fully defined. The Government procured the RTCH through a performance specification. The selection of the subcomponents that make up the end item is left to the end item manufacturer as part of their internal design effort. There is no technical data package for the end item or its subcomponents.

b. Efforts to Increase Competition or Qualify a New Source in Relation to this Procurement:

1. The components covered by this procurement are designed and developed by the individual component manufacturer. Procuring proprietary data is estimated to be in the many millions of dollars as the typical business case for a product like this includes the expectation of a revenue stream for the manufacturer that includes worldwide sales of complete components and spare parts for many years. This estimate is based on general knowledge of the Material Handling Equipment (MHE) industry. The cost of procuring proprietary information is not expected to be recovered through subsequent competition because of two elements: 1) TACOM LCMC procurements for these components are in small quantities and are driven by field demands; also, 2) TACOM LCMC contemplates a refurbishment effort for reclaimed repairable components from the field, and this would further reduce component procurement quantities. There are funding constraints in that scarce resources are better directed to hardware procurement rather than procuring technical data for commercial products. We estimate 18 to 24 months would be associated with attempting to procure the required proprietary data or qualifying additional sources.

This delay is unacceptable to meet the Government’s needs as it would prevent needed replacement components to be delivered to field users and would impact the mission as machines would be non-mission capable. The end item is a vital part of the Army’s supply distribution mission.

2. These components are not feasible candidates for reverse engineering at this time. Each component is an assembly designed by an established commercial vendor. It is estimated as a high risk proposition since the components are already in the market and the reverse engineering process would be replicating the effort associated with the original design of each component. A reverse engineering effort would take approximately 12 months or more at a cost of between $500,000 to $2 million dollars per component. In addition, the reverse engineered components would have to establish reliability comparable to the already existing designs. This evaluation process would need another 12 to 24 months and an estimated additional $500,000 dollars per component. These costs would not be recovered by subsequent competition as the Army’s demand for these spare parts is small and variable. The risk for the Government is high as there are limited resources to commit to this type effort. For a contractor, there is high risk in that a long detailed effort is required without the assurance that there would be enough demand for the final product.

3. The quantity requirements for these spare parts requirement are too small to justify the cost required to increase competition. The Government’s data for these components is limited to national stock number (NSN), part number and supplier (CAGE) code. All but one, item 14, of these components are listed for procurement in the TACOM LCMC Competition Advocate Shopping List (CASL). This requirement action is to establish a bridge procurement for essential spare parts, so developing a competitive effort, procuring proprietary technical data, or reverse engineering are not cost effective options.

c. Demonstration of Approved Contractor's Unique Qualifications:

1. The approved contractor is also the supplier of the Rough Terrain Container Handler (RTCH). The contractor passed the unique testing of the Production Qualification and Verification tests for the RTCH, including the demonstration of supplying components that fully met the RTCH performance requirements. The tests included reliability demonstrations, cold starts, operation in a variety of environmental conditions, and operational suitability in an operational scenario. These tests were important and critical in that they demonstrated to the Army that the RTCH and therefore the components were ready for fielding and incorporation into the Army’s supply distribution mission.

2. The contractor has other capabilities in that they have full knowledge and understanding of the critical relationships between the components and the end item.

The RTCH and it key components have interfaces with complex computer controls that monitor system performance and record fault conditions. The RTCH components have interfaces with the machine structure, mobility and operational systems providing the needed safety factors that ensure mission effectiveness and protect the safety of the soldier. This knowledge assures the Government that replacement components will be easily incorporated into the machine reducing time for other adjustments and troubleshooting.

3. Using a contractor without the unique qualification listed here introduces risks to the Government. A component not ready to perform would prevent the end item from returning to full mission capable status. This would seriously impact the Army’s capability to move shipping containers as part of its supply distribution mission.

Associated with this lack of capability would be a shortage of supplies like food, water, and spare parts that are to be delivered to soldiers deployed in the field.

d. Efforts to Qualify Additional Suppliers for future procurements:

1. This action is for procuring replacement spare components (as detailed above) for the Army’s RTCH. All resources are directed to acquiring hardware and there is no funding available from the Army for qualifying additional sources.

2. The Government does not own the technical data associated with the interface between the components and the end item RTCH. That information is governed by the relationship between the RTCH contractor and its individual suppliers.

The Army quantity requirement for these components is small and driven by field demands, so it appears that it is not a candidate for the Source Approval Program.

e. Market Research:

Market research was not conducted to determine whether or not other commercial or non-developmental items are available to meet the government's needs, or could be modified to meet the government's needs. The objective of this effort is to award a bridge contract for parts support to the RTCH. The Army quantity requirements for these spares are small. We have a long-standing, responsive source for these critical spares in the RTCH original equipment manufacturer. All but one, item 14, of the items are listed in the TACOM LCMC Competition Advocate Shopping List (CASL).

A sources sought synopsis was posted to FedBizOpps on June 23, 2017 for each of the items listed above. To this date we are not aware of other contractors expressing an interest in these items.

3. The POC for this action is .

4. Technical Certification: I certify that the above supporting data in Part II are accurate and complete to the best of my knowledge and belief.

Approval Authority for Acquisitions Equal to or Greater Than $700,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Various (See part 1 for listed items 1a – 15a)

b. NSN: Various (See part 1 for listed items 1c – 15c)

c. Total Quantity: 113 Ea (See part 1 for listed items 1b – 15b)

d. Total Estimated Value:

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

Signature:

Name:

Title:

Office:

Date: 31 Aug 2017