JA_SPRDL1-18-R-0255_Redacted.pdf

Previous J&A SPRDL1-12-R-0018 is available and included separately.

J&A SPRDL1-18-R-0255

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0255

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

2. Description of Action: The proposed action is to award a new three-year, long-term, firm-fixed price contract for the HETA1 Dressed Hydraulic Transmission and Container used on the HETA1 vehicle. This action will be funded using Army Working Capital Funds

(AWCF).

3. Description of Supplies/Services: The Noun: Transmission, Hydraulic, NSN: 2520- 01-577-8294, is defined by a kit drawing listing two main items; the HETA1 Dressed Hydraulic Transmission (PN 3815362, CAGE 45152 – Oshkosh Corporation, now Oshkosh Defense, LLC, Cage 75Q65) and Container (PN 201109100, CAGE 4WM88 – Mad River Fabricating LTD). The Transmission cost is 90% of the total value of this kit, and the TDP for this is not owned by the Government. The Government kit drawing for this item is partial in nature, and only provides the part numbers for the Dressed Hydraulic Transmission and Container with no other details, which is the reason why this item cannot be procured competitively.

The estimated unit price is each. The guaranteed minimum quantity of the contract is 1 each and the maximum quantity is 38 each. The total estimated contract value is between and .

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

AMSC H. 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. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, 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 One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the detailed technical data for the HETA1 Dressed Hydraulic Transmission and Container (NSN: 2520-01-577-8294). The drawing only calls out the associated kit NSNs.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the HETA1 Dressed Hydraulic Transmission and Container would cost an estimated minimum of $3,300,000.00 with a lead time of 36 months for design, development, and production for both items combined. In addition, the HETA1 Dressed Hydraulic Transmission and Container would have to undergo qualification testing.

Qualification testing on a HETA1 vehicle would have an additional lead time of 12 months and cost an additional estimated minimum of $1,500,000.00.

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 forty eight (48) months and an estimated minimum of $4,800,000.00. 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), the owner of the intellectual property and manufacturers 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. This effort will be synopsized in accordance with FAR Part 5.201(c).

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), owns 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 HETA1 Dressed Hydraulic Transmission and Container (NSN: 2520-01-577-8294), market research results are very limited. Computer-based market research was conducted by the Project Engineer in January 2018.

This is a 4800SP Series Allison Transmission that is dressed (by Oshkosh) along with a Shipping Container that is fabricated specifically for this part once fully dressed. The components that Oshkosh uses to dress the HETA1 Dressed Hydraulic Transmission are proprietary with no technical data available to the Government. Installing different types of transmissions in the HETA1 would require extensive reconfiguration and would have to requalify for performance metrics, which is the reasoning that no commercial-off-the-shelf transmission assemblies exist to complete the mission.

When, and if, the technical information for the HETA1 Dressed Hydraulic Transmission and Container (NSN: 2520-01-577-8294) is eventually made available, additional, specific market research can then be conducted.

9. Interested Sources:

A Sources Sought Synopsis was posted on the FedBizOpps website on 01/12/2018 for:

Components: Transmission Hydraulic NSNs: 2520-01-577-8294 Part Number: 57K7252 (CAGE 19207) End Item: HETA1 vehicle

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).

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 HETA1 Dressed Hydraulic Transmission and Storage Container, NSN: 2520-01-577-8294, 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: 4 Apr 2018