JA_SPRDL1-18-R-0028_Redacted.pdf

Previous J&A SPRDL1-12-R-0047 is available.

J&A SPRDL1-18-R-0028

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the technical data for the highly detailed HET Engine and Storage Container (NSN:

2815-01-578-0468), which drawing only calls out the sole source parts to purchase from Oshkosh Defense, LLC (CAGE: 75Q65) and Mad River Fabricating (CAGE 4WM88).

Therefore, these companies are the owners of the intellectual property and retain full-rights-in-data for the detailed technical data.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the HET Engine and Storage Container would cost a minimum of $4,500,000.00 with a lead time of 24 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing on a HET vehicle would have an additional lead time of 8 months and cost an additional estimated minimum of $800,000.00.

In total, reverse engineering and qualification testing to include material test, form, fit, and function test, performance test, and durability testing would require at least thirty two (32) months and an estimated minimum of $5.3M. This expense could not be recouped through subsequent competition. The efforts involved on the contract of the sole source components does not justify the development and production tooling costs for a company to qualify as a second source. To neglect qualification testing would be a high risk as premature failures of this item in the field could result in mission failure which could jeopardize the Army’s mission in a potentially adverse operational environment. Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TDP or qualification testing for a new source.

Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition: This action is limited to Oshkosh Defense, LLC (CAGE: 75Q65) and Mad River Fabricating (CAGE 4WM88), the owners of the intellectual property and manufacturer of this item. No vendors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints. Additionally, 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. Currently, 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 contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or planned efforts to qualify additional sources due to the fact that the Government does not possess a fully-defined and validated technical data package for this item. The sources of supply, Oshkosh Defense, LLC (CAGE: 75Q65) and Mad River Fabricating (CAGE 4WM88), own the detailed technical data regarding this item. Any vendor that believes they can provide this item, while meeting the same requirements, should seek qualification as a secondary source through the Competition Management Office Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source will be at their own expense.

8. Market Research: The government has no funding to qualify additional sources, and thus any qualification would be done at contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office. Given that no detailed technical data is available for the HET Engine and Storage Container (NSN: 2815-01-578-0468), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during September of 2017.

The base engine is a “C18” diesel engine manufactured by Caterpillar Inc. (CAGE 11083) and is available. However, the additional components required to “dress” the base Caterpillar engine were established by Oshkosh as part of the HET M1070A1 vehicle design and development program at their own expense. The results of this search did not produce any new source which could provide the same fit, form and function.

When, and if, the technical information for the HET Engine and Storage Container (NSN:

2815-01-578-0468) is eventually made available, additional, specific market research can then be conducted and competitive procurement can be considered.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 12/21/2017. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. To date, no other sources have expressed an interest in providing the subject item. Only the approved sources own the most current TDP part iteration (revision level). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

Sources Sought Synopsis posted to Fed Biz Opps on 12/21/2017 Components: Engine, Diesel

NSN: 2815-01-578-0468

Part Number: 57K7253 End Item: M1070 HET

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 Noun:

Engine, Diesel, NSN: 2815-01-578-0468, PN: 57K7253 from Oshkosh Defense, LLC (CAGE 75Q65) for the Engine PN: 381536, and Mad River Fabricating (CAGE 4WM88), for the Container PN: 201109200, 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:

Date:

Signature:

Previous J&A

JA _CMO approval on SPRDL112R0047 -

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.01.24 14:28:28 -05'00'