JA_SPRDL1-18-R-0256_Redacted.pdf

Previous J&A SPRDL1-12-R-0012 is available and included separately.

J&A SPRDL1-18-R-0256

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0256

1. Contracting Agency: Defense Logistics Agency Land Warren

2. Description of Action: The proposed action is to award a new five-year, long-term, firm-fixed price contract for the PLSA1 Dressed Transfer Case and Container used on the Palletized Loading System A1 (PLSA1) vehicle. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The Noun: Transfer Transmission, NSN: 2520- 01-569-9918 is defined by the Government Part Number (PN) 57K6822, which is a top level kit drawing listing two main items along with a few other small parts. The PLSA1 Dressed Transfer Case (PN 3839222, Oshkosh Defense, LLC, CAGE: 75Q65) and Container (PN 0-20190, The Champion Company, CAGE: 94231) cost is over 95% of the total value of this kit. The Government does not have a technical data package for this item and the top drawing only provides the part numbers for the Dressed Transfer Case and Container (and other small parts) with no other details. Therefore, this cannot be procured competitively.

The unit price is estimated at . The guaranteed minimum quantity of the contract is 4 each and the maximum quantity is 100 each. The total estimated contract value is between and .

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

AMSC 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 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 PLSA1 Dressed Transfer Case and Container (NSN: 2520-01-569-9918), which drawing only calls out the associated kit NSNs.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the PLSA1 Dressed Transfer Case and Container would cost an estimated minimum of $3,500,000.00 with a lead time of 36 months for design, development, and production for both items combined. In addition, the PLSA1 Dressed Transfer Case and Container would have to undergo qualification testing. Qualification testing on a PLSA1 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 $5,000,000.00. 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) and The Champion Company (CAGE: 94231), the owners 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) and The Champion Company (CAGE: 94231), 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 PLSA1 Dressed Transfer Case and Container (NSN: 2520-01-569-9918), market research results are very limited. Computer-based market research was conducted by the Project Engineer during January of 2018.

This is a Dressed Transfer Case assembly with yokes installed (by Oshkosh) along with a Shipping Container (The Champion Company). The components that Oshkosh uses to dress the PLSA1 Dressed Transfer Case and Container are also proprietary with no technical data available to the Government. Installing different types of transfer cases in the PLSA1 would require extensive reconfiguration and would have to requalify for performance metrics, which is the reasoning that no commercial-off-the-shelf transfer case assemblies exist to complete the mission.

When, and if, the technical information for the PLSA1 Dressed Transfer Case and Container (NSN: 2520-01-569-9918) 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 the FedBizOpps website on 02/02/2018 for:

Components: Transfer Transmission Assembly NSNs: 2520-01-569-9918 Part Number: 57K6822 (CAGE 19207) End Item: PLSA1

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).

10. Other Facts:

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 PLSA1 Dressed Transfer Case and Storage Container, NSN: 2520-01-569-9918, from Oshkosh Defense, LLC (CAGE: 75Q65) and The Champion Company (CAGE: 94231), 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: 28 Mar 2018