JA_SPRDL117R0511_Redacted.pdf

Previous J&A W56HZV-10-R-0604 is available.

J&A REVISED SPRDL1-17-R-0511

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-17-R-0511 REVISED

1. Contracting Agency: Defense Logistics Agency Land Warren

2. Description of Action: The proposed contract action is to award a firm-fixed price contract for the procurement of an Automotive Axle Assembly used on the Palletized Load System (PLS) A1 (M1074A1 and M1075A1). Competition will be limited to OSHKOSH Defense, L.L.C. Cage Code: 75Q65 listed in Section 3 below. This action will be funded using Army Working Capital Funds (AWCF).

Note that a J&A was previously approved for this action at the PCO level with legal concurrence back on 9/23/2017. Upon final settlement of the contractual price it was determined that the prior estimated value of had been exceeded and crossed the $700,000.00 threshold requiring competition advocate level approval. This revised J&A incorporates the updated dollar value as well as new signature approvals for both requirements and contracting.

3. Description of Supplies/Services: The contractor OSHKOSH Defense L.L.C.

will provide the Automotive Axle Assembly (NSN: 2520-01-569-6437) at a quantity of 30 each at an estimated unit price of for an estimated dollar value of . The procurement will also include a 100% option to procure an additional 30 each, bringing the estimated maximum dollar value to

This action will procure NSN: 2520-01-569-6437, Noun: Automotive Axle Assembly from the following source of supply:

OSHKOSH Defense L.L.C.

2307 Oregon Street, Oshkosh, WI 54902-7062 Cage: 75Q65

NSN: 2520-01-569-6437

Part Number: 3831541 or 3665529

The Acquisition Method Code (AMC) for this part is 3: Acquire, for the second or subsequent time, directly from the manufacturer.

The Acquisition Method Suffix Code (AMSC) is R: The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 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 the sources listed (OSHKOSH Defense, L.L.C.) and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited:

a. Background:

OSHKOSH Defense, L.L.C. Cage Code: 75Q65 is the OEM for the PLS A1 (M1074A1 and M1075A1) Trucks, and as stated in paragraph 3, the Government does not own or have rights to the technical data for the Automotive Axle Assembly, NSN: 2520-01-569-6437.

The Government did not fund OSHKOSH Defense, L.L.C. to prepare a full TDP and conduct testing; therefore, the Government does not own the proprietary or patent rights to the TDP required to procure this item competitively. OSHKOSH Defense, L.L.C. designed and tested the Automotive Axle Assembly, NSN: 2520- 01-569-6437 at its own expense and obtained the Government’s approval for procuring the Automotive Axle Assembly. The axle assembly is constructed using drive axles, pinion/spider gears and wheel bearings to name a few that are of specific dimensions, pitch angles and diameters, and materials that are very specific to the mating gears, axle flanges, and housing that make up the axle assembly. If these items are not constructed properly the axle assemblies will not perform the basic driving maneuvers, handling and functioning it is supposed to handle during normal driving operations and conditions. Vibration and shock from various road conditions while carrying various loads may also render the PLS inoperative and even causing a catastrophic effect while driving. Moreover, bearing failures, and leaks within the housing could cause premature failures and complete stoppage and operation of the axle assembly. Therefore, the non-availability of the technical data requires that this item be procured on a non-competitive basis from the only approved source OSHKOSH Defense, L.L.C., Cage Code: 75Q65 for NSN: 2520-01-569-6437, Part Number: 3831541 or 3665529.

OSHKOSH Defense L.L.C. designed, prototyped and tested (form, fit, and function testing, and qualification, performance, and durability testing) the Automotive Axle Assembly for use on the PLS A1 Trucks. Only OSHKOSH Defense, L.L.C has the requisite technical and engineering expertise to perform all efforts required to provide the supplies and services identified in this J&A.

OSHKOSH Defense L.L.C. has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item. The use of incorrect material and/or improper process/quality control during fabrication of these items would result in a non-appropriate function of the Automotive Axle Assembly of PLS A1 (M1074A1 and M1075A1) Trucks.

b. Costs:

There are currently no plans to acquire a competitive TDP due to the lack of funds that would be needed to acquire the data needed in order to support a competitive acquisition. In addition, it is unlikely that these costs would be recovered through subsequent competition due to the low ordering quantities between the years of procurement for this item.

The TDP for the Automotive Axle Assembly 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 Automotive Axle Assembly for procurement as follows:

(i) Research and Development (R&D): Efforts to procure a competitive TDP from the contractor would not be cost effective. The cost to procure a TDP from the contractor would be in excess of $2,500,000.00 with a delay of 2 years to cover the design and prove-out of the item. There will also be a 2 year delay for research and develop, component selection, and safety and system level testing at a cost of another $ 2,000,000.00.

This cost estimate was based on previous "Systems Technical Support" (STS) projects. There are no current plans to acquire a competitive TDP.

Engineering estimates the following minimum timeline for R&D:

Write TDP, technical bulletins and provision parts 2 Years Component, safety and system level testing 1 Year Estimated Minimum Time to research and develop 1 Year

TOTAL COST: $4.5 million and a delay of 4 Years

(ii) Reverse Engineering (RE): To reverse engineer the Automotive Axle Assembly and develop a competitive TDP would take 3 Years at a cost of $4.5 million. It would take a contractor approximately 2 Years to develop prototypes for testing, and validate the design to release a competitive TDP for approximately $1.5 million.

Write TDP, technical bulletins and provision parts 3 Years Estimated Minimum Time to research and develop Prototypes for testing 2 Years

Component, safety and system level testing 2 Years

TOTAL COST: $6 million and a delay of 7 Years

c. Unacceptable Delay:

If the procurement of the Automotive Axle Assembly is delayed until a competitive TDP is developed and released by the Government, the Government would experience an unacceptable delay, as described above, in fulfilling this requirement. The minimum 5 years delay is a result of the time required to develop items of equivalent performance and quality by the manufacturer of this product. OSHKOSH Defense L.L.C is currently the only source that can meet the requirements needed for supplying the Automotive Axle Assembly without substantial duplication of cost and without unacceptable delays against this action.

6. Efforts to Obtain Competition: Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that there is no expressed interest, 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.

Interested sources can seek qualification through the Source Approval Program with the Competitive Management Office (CMO). At this time, there are no contractors seeking approval through the CMO. Therefore only OSHKOSH Defense L.L.C. will be solicited for this effort. This effort will be synopsized in accordance with FAR Part 5.201 (c).

7. Actions to Increase Competition: It is not possible to increase competition at this time because the Government does not own or have rights to the technical data for the Automotive Axle Assembly, (NSN: 2520-01-569-6437). It would take up to 5 Years to qualify additional source with an estimated minimum cost of $ 4,000,000.00. The time and money costs may not be recouped through competition. Additional sources cannot be considered at this time.

The government has no funding to qualify additional sources, therefore any qualification would be done at the contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office.

8. Market Research: Given that no technical data is available for the Automotive

Axle Assembly (NSN: 2520-01-569-6437) market research results are very limited. This is mainly based on the fact that some level of detail in order to conduct market research. For example, market research can be conducted on this Automotive Axle Assembly, but without having any technical specifications, the results will be overly broad.

Market research was conducted in the preparation of the original J&A, in addition to this updated J&A, though the use of online sources. The results of this research was that no other sources exist or are anticipated to become available to satisfy the Government’s requirement. Any additional sources would be referred to the source approval program though the competition advocate’s office for information on becoming a qualified source of supply in future procurements.

9. Interested Sources: A sources sought synopsis was posted to FedBizOpps on 30 July 2019 for the Automotive Axle Assembly. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. 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 NSN.

Sources Sought Synopsis posted to FedBizOpps on 07/30/2019 Components: Axle Assembly

NSN: 2520-01-569-6437

Part Number: 3831541 or 3665529 End Item: Palletized Loading System (PLS), M1074, M1075, M1076, M1077

Sources Sought Notice 2019-514.pdf

10. Other Facts:

a. Procurement history: 2520-01-569-6437

(1) Contract: W56HZV12C0420

Award Date: June 2013 Contractor: OSHKOSH Defense L.L.C.

Value: $261,445.20 Competitive Status: N/A Authority: N/A

b. Acquisition Data Availability: The Government does not own or have rights to the detailed technical data for the Automotive Axle Assembly (NSN: 2520-01- 569-6437).

c. Unusual and Compelling Urgency: N/A

15. Legal Concurrence:

Concur:

Date: 07/30/2019

J&A REVISED SPRDL1-17-R-0511

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 for the PLS A1 (M1074A1 and M1075A1) Truck, Automotive Axle Assembly (NSN: 2520-01-569-6437), from Oshkosh Defense, LLC (CAGE: 75Q65) with a total estimated value of

. This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 U.S.C. 2304(c) (1), and FAR 6.302-1, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Name:

Title:

Signature:

Date: SHEARER.MARY.E.125070244

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.07.31 15:32:05 -04'00'