JA_SPRDL117R0347_Redacted.pdf

J&A Solicitation No. SPRDL1-17-R-0347

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION NO. SPRDL1-17-R-0347

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

2. Description of Action: Procurement of linear direct valves, NSN 4810-01-210- 8870, on a restricted basis to the following approved sources only: Oshkosh Defense, LLC (CAGE: 75Q65); Parker-Hannifin Corporation (CAGE: 09990); and Grove U.S., LLC (CAGE: 12021) – as these firms are the only responsible sources for this valve, and no other supplies will satisfy agency requirements.

3. Description of Supplies/Services: The proposed contract action would result in a potential 5-year long term, firm fixed price contract for valves supporting the hydraulic systems of the Heavy Expanded Mobility Tactical Truck (HEMTT) family of vehicles.

The estimated unit price for these valves is each, with a minimum purchase quantity under the proposed contract of thirty-three units (or ), and a maximum purchase quantity of 950 units (or ). Army Working Capital Funds (AWCF) will be utilized for this procurement. Additional pertinent details regarding the valves are listed below:

NSN Nomenclature Manufacturer P/N Acquisition

Method Code

4810-01-210-8870 Valve, Linear, Direct Oshkosh Defense, LLC P/N 4199376 or Parker-Hannifin Corporation P/N 85593-01-PAAG24 or Grove, U.S., LLC P/N 9-926-104920

3D

Acquisition Method Code (AMC): 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (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.

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:

a. Background:

As stated in paragraph 3, the Government purchases these valves from the original equipment manufacturer (OEM) Oshkosh Defense, LLC, Parker-Hannifin Corporation, and Grove U.S. LLC. Parker-Hannifin Corporation and Grove U.S., LLC obtained approval from Oshkosh Defense, LLC, for the valve to be used on the HEMTT. The Government did not fund any of these sources in the development or testing of the valves; as a result, the Government does not have the patent rights or access to the technical data that would be required to produce a competitive technical data package

(TDP).

Due to the unique requirements of the valve, the Government imposed source control restrictions. As the design rights for this valve are proprietary, the non-availability of technical data requires that this item be procured on a non-competitive basis from the approved sources highlighted above.

b. Costs: The TDP of the Linear Direct Valve is “not for sale”, and if it were, the purchase price would be cost and time prohibitive. Without the option to purchase the TDP, the Government has two methods of acquiring the data to execute a competitive Linear Direct Valve purchase. They are as follows:

(i) Research and Development (R&D): Efforts to procure a competitive TDP from the contractor would not be cost effective. It is estimated that to procure a TDP from the contractor, the cost would be at least $150K with a delay of approximately 12 months. Component, system and safety level testing would require an additional 6 months of time, at an additional cost of $50K. The total cost of an R&D effort, then, would be $200K and require 18 months of effort.

(ii) Reverse Engineering (RE): Engineering estimates that to reverse engineer the linear direct valve and develop a competitive TDP, it would take at least 18 months at an estimated cost of $210K. The development of prototypes for testing, validation of the design, and release of a competitive TDP from a contractor would require an additional 12 months, and costs as high as $100K. The total cost of an RE effort would be at least $310K, and require 30 months of effort.

The costs required to procure this item via either of the methods above could not be recouped through subsequent competition. Furthermore, the time required to develop items of equivalent performance and quality as the above mentioned sources via competitive TDP would result in an unacceptable delay in fulfilling requirements and jeopardize the Army’s mission in a potentially adverse operational environment

6. Efforts to Obtain Competition: Currently, 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 (CMO). To date, 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: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make these parts competitive. Furthermore, the resources invested in such an effort – both in time and money – would not be recouped through competition.

8. Market Research: On 10 May 2017 Engineering collaborated with the CMO for an online search of known Linear Direct Valve suppliers seeking published material on new built replacement units. The results of this search did not produce any new leads on a company that provides a direct replacement Linear Direct Valve for the HEMTT.

9. Interested Sources: A sources sought synopsis was posted to FedBizOpps on 13 June 2017. To date, no other sources have written to express an interest. Additionally, the synopsis notice required by FAR 5.201 will be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement history (Last 2 buys):

(1) Contract: SPRDL1-15-P-0058 Award Date: December 2014 Contractor: Oshkosh Defense, LLC Value: $49,574.72

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

(2) Contract: W56HZV-04-D-0129-VD04 Award Date: April 2009 Contractor: Wheeler Bros Value: $72,960.00 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition Data Availability: The Government does not own or have rights to the technical data for the valves.

c. Unusual and Compelling Urgency: N/A

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: Valve, Linear, Direct

b. NSN: 4810-01-210-8870

c. Maximum Quantity: 950

d. 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 proviso that the property herein described has otherwise been authorized for acquisition.

NAME:

TITLE:

SIGNATURE:

Date: 23 Jun 2017