JA_SPRDL1-18-R-0429_Redacted.pdf

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J&A SPRDL1-18-R-0429

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0429

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

2. Description of Action: The proposed contract action is to award a new three-year, long term, firm-fixed price contract for the Pneumatic Tire Wheel (NSN: 2530-01-631- 0906) used on the PLSA1 Truck. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: Competition for NSN: 2530-01-631-0906, Noun: Wheel, Pneumatic Tire used on the PLSA1 Truck will be limited to approved sources only, which consist of: Oshkosh Defense, LLC (CAGE: 75Q65) Part Number:

3673296.

The estimated unit price is each. The guaranteed minimum quantity of the contract is 75 each and the maximum quantity is 1,125 each. The total estimated contract value is between and .

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

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation.

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(a)(2), “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 technical data for the Pneumatic Tire Wheel (NSN: 2530-01-631-0906) from Oshkosh Defense, LLC (CAGE: 75Q65). Therefore, only this approved source is the owner of the intellectual property and retains full-rights-in-data for the detailed technical data.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the Pneumatic Tire Wheel would cost an estimated minimum of

$2,000,000.00 with a lead time of 18 months for design, development, and production.

In addition, it would have to undergo qualification testing. Qualification testing on a PLSA1 Truck would have an additional lead time of 12 months and cost an additional estimated minimum of $2,000,000.00.

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

(30) months and an estimated minimum of $4,000,000.00. 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), the owner 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 source 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 Pneumatic Tire Wheel (NSN: 2530-01-631-0906), market research results are very limited.

Computer-based/internet market research was conducted by the Project Engineer during April 2018. Many Pneumatic Tire Wheels are available commercially, but the Government does not own the detailed technical data for this part, as it is source controlled, and therefore does not have the information to perform a detailed search regarding dimensions, design features, and performance specifications. The results of this search did not produce any new source which could provide the same fit, form and function with certainty.

When, and if, the technical information for the Pneumatic Tire Wheel (NSN: 2530-01- 631-0906) 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 on the FedBizOpps website on 4/26/2018 for:

Components: Wheel, Pneumatic Tire NSNs: 2530-01-631-0906 Part Number: 3673296 (CAGE 75Q65) End Item: PLSA1 Truck

2018-472.pdf

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:

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 Pneumatic Tire Wheel (NSN: 2530-01-631-0906), 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: 23 May 2018