JA_SPRDL118R0458_Redacted.pdf

Previous J&A W56HZV-08-R-0811 is available.

J&A SPRDL1-18-R-0458

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0458

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

2. Description of Action: The proposed contract action is to award a new 3-year, long-term, firm-fixed price contract for the HEMTTA4 Dressed Engine and Container (NSN:

2815-01-562-6787) used on the Heavy Expanded Mobility Tactical Trucks (HEMTTA4).

This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The Noun: Engine, Diesel, NSN 2815-01-562- 6787 is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE: 19207) PN: 57K6791, which is a kit drawing listing two main items; the HEMTTA4 Dressed Engine (PN: 3695119, Oshkosh Defense, LLC, CAGE: 75Q65, formerly CAGE:

45152) and Container (PN: 0-19980, Champion Company CAGE: 94231). The Engine and Container cost is 100% of the total value of this kit, and the TDP for these specific items are not owned by the Government. The Government kit drawing for this item is partial in nature, and it only provides the part numbers for the Dressed Engine and Container with no other details, which is the reason why this item cannot be procured competitively.

The unit price is estimated at . The guaranteed minimum quantity of the contract is 12 each and the maximum quantity is 180 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, "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 HEMTTA4 Dressed Engine and Container (NSN:

2815-01-562-6787), which drawing only calls out the associated kit part numbers from Oshkosh Defense, LLC (CAGE: 75Q65) and Champion Company (CAGE: 94231).

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the HEMTTA4 Dressed Engine 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 HEMTTA4 Dressed Engine and Container would have to undergo qualification testing. Qualification testing on a HEMTTA4 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) and 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.

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 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 HEMTTA4 Dressed Engine and Container (NSN: 2815-01-562-6787), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during April of 2018.

This is an Engine 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 HEMTTA4 Engine are proprietary with no technical data available to the Government. Installing different types of Engines in the HEMTTA4 would require extensive reconfiguration and would have to requalify for performance metrics, which is the reason that no commercial-off-the-shelf Engine assemblies exist to complete the mission. The container would have to meet performance requirements that are unknown due to the lack of TDP for both items. Engineering has determined that there are no COTS solutions that could be used in this application with any confidence.

When, and if, the technical information for the HEMTTA4 Dressed Engine and Container (NSN: 2815-01-562-6787) 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 5/1/2018.

Component: Engine, Diesel

NSN: 2815-01-562-6787

Part Number: 57K6791 (CAGE 19207) End Item: HEMTT A4

2018-496.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). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

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 HEMTTA4 Dressed Engine and Storage Container, NSN: 2815-01-562-6787, 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(a)(2)(ii)(A) and (B), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Name:

Title:

Signature:

Date: 13 Jun 2018