JA_SPRDL1-19-R-0013_Redacted.pdf

Reference previous J&A SPRDL1-15-D-0061 J&A SPRDL1-19-R-0013

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: The assigned Contracting Activity for this action is the Defense Logistics Agency -Warren (DLA-WRN).

2. Description of Action: The proposed contract action is to award a new, three year, firm fixed price, requirements type contract type contract for Wheel, Pneumatic Tire NSN 2530-01-484-1419. The previous contract expired on 17 September 2018.

Competition will be limited to Kalmar (Cage: 1NWY2) Part Number 12J1060, the only approved source of this item and the OEM of the end-item 50K Rough Terrain Container Handler (RTCH). This action is to be funded utilizing Army Working Capital Funds C-AWCF.

3. Description of Supplies/Services: The contractor shall provide Wheel, Pneumatic Tire utilized on the Kalmar RTCH. The total estimated maximum value of this contract is $6,037,873.92 and the Government’s good faith estimate is for 432 assemblies over the life of the contract.

The Kalmar RTCH operates on rough terrain, beaches, and other unimproved surfaces.

The US Army awarded production contract for a new RTCH in 2000. The container handlers are used to handle standard shipping containers that are the backbone of military logistics. The Kalmar RTCH lifts, moves, stacks and un-stacks standard 20 ft and 40 ft ISO containers. This machine can move containers with a maximum weight of 24 Tons. It can stack containers three high and is capable of picking up a container in the second row. Container handler of the RT240 is capable of side shifting, rotation, tilting forward/rear or left/right.

This military machine is powered by Cummins QSM 11 turbocharged multi-fuel diesel engine, developing 400 hp, Part number (CAGE: 1NWY2) 12J1060. The vehicle has all-wheel drive. This machine uses two-wheel steering for travelling on highway and four wheel steering for loading duties and operation in confined sites. Also it has a crab steer for parallel drive when operating close to walls or other obstacles. The RT240 is capable of operating in up to 1.5 m of sea water. This container handler can be airlifted after short preparation by the C-17 or C-5 military cargo aircraft. During preparation, transport height of this machine is reduced. The Kalmar RTCH can operate in temperatures from -40°C to +50°C.

AMC 3. Acquire, for the second or subsequent time, directly from the actual 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 Kalmar RTCH. Kalmar is the owner of the intellectual property and retains full-rights-in-data for its technical data.

The TARDEC Tire Product Lifecycle Engineering Team has estimated that reverse engineering the Wheel, Pneumatic Tire would cost $2,000,000 - $3,500,000 for development, testing, qualification, production tooling, and wheel certification to develop a potential additional source. The tire/wheel assembly is a fundamental part of the vehicle system which impacts; braking, handling, and durability test performance. These tests are critical to ensure the safety of the vehicle, its soldier occupants, and the public at large. TARDEC’s contention is that a mechanism to recover their investment shall be demonstrated by the Government before they will consider it. In addition, a minimum lead-time of 18 months is required to meet the vehicle's mission performance requirements based on historical tire/wheel testing for this type of equipment. This delay is unacceptable in support of the mission for this vehicle.

Reverse engineering TDP development is not feasible due to requirements of the component’s material properties which cannot not be readily identified. Because of the uncertain definition of requirements, an increased safety risk is possible in which failure of one or more of these items could result in adverse stability and durability of the vehicle.

The quantity 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.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require at least twelve (12) months and up to $2M. 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. The delay associated with these aforesaid efforts is completely unacceptable in fulfilling extremely exigent mission requirements and would have a significant impact on TACOM’s ability to support the soldier customer in the field.

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 Kalmar, 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: It is not economical to increase competition through the development of a Government owned technical data package. As aforementioned, it would take up to 18 months to develop a competitive technical data package with an estimated maximum cost of up to 3.5 million. The time and financial costs would not be recouped through competition. The government has no funding to qualify additional sources, and thusly any qualification would be done at contractor’s expense. Additional contractors can seek qualification through the Source Approval Program with the Competition Management Office.

8. Market Research: Given that no technical data is available for the Kalmar RTCH vehicles, market research results are very limited. This is mainly based on the fact that some type of information is required prior to conducting market research. For example, market research can be conducted on this tire/wheel assembly, but without having any technical specifications, the range of information on this component will be vast, thus not useful.

Computer based market research was conducted by the Project Engineer during January of 2019. However, the information found was too generic due to the rationale provided above. The results of this generic search were that no other sources exist or are anticipated to become available to satisfy the Government’s requirement.

A sources sought notice was requested on October 10,2018. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office. To date, no other sources have written to express an interest, nor has the Government identified any other source having an interest in being an alternate source for this NSN.

(See PCF file).

9. Interested Sources: To date, no other sources have expressed an interest in providing the subject item. Only the approved source owns the most current TDP part iteration (revision level). Interested sources of supply will be referred to the Source Approval Program through the Competition Advocate’s Office for information on becoming a qualified source.

10. Other Facts:

a. Procurement History

(1) Contract: SPRDL115D0061 Award Date: 2015 Sept 17 Contractor: Kalmar RT Center LLC (Cage: 1NWY2) Value: $557,499.29 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract: SPRDL113D004/0001/0002AA Award Date: 2014 Nov 5 Contractor: Kalmar RT Center LLC (Cage: 1NWY2) Value: $651,851.41 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(3) Contract: W56HZV09D0009 Award Date: 2011 Sept 14 Contractor: Kalmar RT Center LLC (Cage: 1NWY2)

Value: $878,535.00 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition data availability. The Government does not own or have rights to the technical data for the Kalmar RTCH Wheel, Pneumatic Tire for this procurement.

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: The government will require awardee to submit a subcontracting plan IAW FAR 19.704 during negotiations of the contract in order to achieve increased small business subcontracting opportunities throughout the life of the contract.

11. Technical Certification: I hereby certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Nathan A. Kamprath X 7339 Date:__ 12 Jan 2018 _______________ Title: _ Mechanical Engineer 0830 Signature: //s// Nathan A. Kamprath_ _

Name:_Mohan S. Khabra _____ Date:____16 Jan 2018__________________ Title: Supervisor, Tactical Trucks Signature: _//Signed// Mohan Khabra Name:_John S. Stepowski II _____ Date____17 Jan 2018__________________ Title: DAD Tactical Vehicle Engineering Signature:_//Signed// _

12. Requirement Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Monica Crutchfield for John Bunting Date: 4 APR 2018 Title: Item Manager Signature://s// Monica Crutchfield

Name: Brandie Jackowski Date: 21 Feb 2018 Title: Supervisor, Light Tactical Vehicles Signature: //s// Brandie Jackowski

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on the appropriate forms of cost/price analysis. The contractor will not be required to supply certified cost and pricing data as this has been determined to be a commercial item.

Name: Leah Bourdeau Date: 1/18/19 Title: Contracting Officer Signature: //s// LCB

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

Name: Leah Bourdeau Date: 1/18/19 Title: Contracting Officer Signature: //s// LCB

15. Legal Concurrence:

Concur: // Darin R. Morency // Date: 01/29/19

Previous J&A Comp adv.pdf

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 following:

a. Noun: Wheel and Tire Assy

b. NSN: 2530-01-484-1419

c. Estimated Max Quantity: 432 EA (3 Year)

d. Estimated Total Value: $6,037,873.92 (3 Year)

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.

Signature:

Date: SHEARER.MARY .E.1250702449 Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.13 16:23:33 -04'00'