JA_SPRDL118R0371_Redacted.pdf

Previous J&A SPRDL1-12-R-0034 is available

SPRDL1-18-R-0371

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed contract action is to award a contract for the HETA1 Dressed Transfer Case and Container (NSN: 2520-01-577-8298). This item is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE:

19207) PN: 57K7254, which is a kit drawing listing two main items with a few other small parts: the HETA1 Dressed Transfer Case (PN: 3815354, CAGE: 75Q65) and Container (PN: 200906001, CAGE: 4WM88) cost is almost 100% of the total value of this kit. The Government owned TDP only provides the part numbers for the Dressed Transfer Case and Container with no other details, which is the reason why this item cannot be procured on a competitive basis.

3. Description of Supplies/Services: The contractors Oshkosh Defense, LLC (CAGE:

75Q65) and The Mad River Fabricating (CAGE: 4WM88) shall provide the HETA1 Dressed Transfer Case and Container (NSN: 2520-01-577-8298) used on the HETA1 vehicle. The minimum guaranteed quantity is 2 for and estimated value of .

The maximum quantity is 50 for and estimated value of .

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, where 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 Transfer Case and Container (NSN: 2520-01-577-8298), which drawing only calls out the associated kit NSNs.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the HETA1 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 HETA1 Dressed Transfer Case 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 $5,000,000.00. This expense could not be recouped through subsequent competition. 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 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 at their own expense. 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 HETA1 Dressed Transfer Case and Container (NSN: 2520-01-577-8298), 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 along with a Shipping Container. The components that Oshkosh uses to dress the HETA1 Dressed Transfer Case and Container are proprietary with no technical data available to the Government. Installing different types of transfer cases in the HETA1 would require extensive reconfiguration and would necessitate requalification against performance metrics, which is the reason that the Government believes that no commercial-off-the-shelf transfer case assemblies exist to complete the mission in a timely and affordable manner.

If the technical information for the HETA1 Dressed Transfer Case and Container (NSN:

2520-01-577-8298) is 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 3/2/2018.

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:

a. Procurement History:

Contract: SPRDL113C0107 Award Date: 5/22/2013 Contractor: Oshkosh Corp.

Value: $312,089.00

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the HETA1 Dressed Transfer Case and Container (NSN: 2520-01-577-8298).

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: N/A

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 14 Apr 2018

15. Legal Concurrence:

Signature:

Date: 04/17/2018

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 Transfer Case and Storage Container, 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: 24 Apr 2018