JA_SPRDL118R0481_Redacted.pdf

Previous J&A SPRDL1-18-R-0198 is available.

J&A SPRDL1-18-R-0481

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-18-R-0481

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

2. Description of Action: The proposed contract action is to award a contract a new 5-year, long-term, firm-fixed price contract for the HETA1 Axle (NSN: 2530-01-593-0997) used on the Heavy Equipment Transporter (HET) Model M1070 Truck, M1000 Trailer.

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

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

75Q65) shall provide the HETA1 Axle (NSN: 2530-01-593-0997, PN: 3815351) used on the HET Model M1070 Truck, M1000 Trailer. The unit price is estimated at .

The guaranteed minimum quantity of the contract is 5 each and the maximum quantity is 200 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. AMCS 3, 4, or 5 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 technical data for the HETA1 Axle (NSN: 2530-01-593-0997) 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 HETA1 Axle would cost an estimated minimum of $1,250,000.00 with a lead time of 18 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing on an HETA1 Truck would have an additional lead time of 12 months and cost an additional estimated minimum of $2,750,000.00.

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 that it 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 Axle

(NSN: 2530-01-593-0997), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during May 2018.

Many Axle Assemblies 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 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.

If technical information for the HETA1 Axle (NSN: 2530-01-593-0997) is eventually made available, additional, specific market research can then be conducted.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 6/15/2018.

Component: HET A1 Axle

NSN: 2530-01-593-0997

Part Number: 3815351 End Item: HET A1

2018-598.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.

10. Other Facts:

a. Procurement History:

1. Contract: SPRDL1-18-C-0072

Award Date: 11/20/2017 and 05/09/2018 Contractor: Oshkosh Defense, LLC Quantity: 49 each Value: $1,642,174.68 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

2. Contract: SPRDL1-12-C-0091 Award Date: 03/08/2012 Contractor: Oshkosh Corporation

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination will be based on appropriate forms of cost and/or price analysis. Negotiations will be conducted as necessary. The Contractor will not be required to submit certified cost and pricing data based on the exception at FAR 15.403-1(b)(3) because this item is determined commercial.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 22 Jun 2018

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: 22 Jun 2018

15. Legal Concurrence:

Concur:

Date: 06/25/2018

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 for the HETA1 Axle (NSN: 2530-01-593-0997), 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: 29 Jun 2018