JA_SPRDL1-19-R-0106_redacted.pdf

J&A SPRDL1-19-R-0106

Justification and Approval for Other Than Full and Open Competition

SPRDL1-19-R-0106

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

2. Description of Action: Approval is being requested to purchase wheel and tire assemblies for the High Mobility Engineering Excavator (HMEE) Type I. This will be a one-year, firm fixed price contract with a one-year, 100% option using Army Working Capital Funds (AWCF). The base quantity to be procured is 198 each, with a 100% option for a total of up to 396 each. The estimated maximum of this procurement is This contract will cover while a Source Approval Request (SAR) is being evaluated for a potential, secondary source of this NSN. If the SAR is approved, future purchases will be solicited competitively. Prior PRON EH81L493EH, also for this NSN, was intended to be a Long-Term Contract for up wheel and tire assemblies. That PRON is on hold for the time being.

3. Description of Supplies/Services:

PRON EH8E1733EH

Noun : Wheel, Pneumatic Tire

NSN : 2530-01-598-4010

: JCB, Inc.

CAGE Code Part Number : 347/20198 Quantity : 198 Option Quantity: 198 Unit Price :

Total Value :

Vehicle System..: Tractor, Wheeled, Industrial [JCB HMEE Type I, NSN: 2420-01-535-4061]

Acquisition Method Code (AMC): 3 Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC): R The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, "Only the responsible source(s) listed under and no other supplies or services will satisfy agency requirements." The United States Army TACOM Life Cycle Management Command (TACOM LCMC) is the requirement activity for this action.

5. Reason for Authority Cited: Specifically, FAR 6.302-1(a)(2)(ii) is the authority cited for this procurement, whic upplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

The previous and current supplier of this NIIN is JCB, Inc. (CAGE 0JKF0)

The TARDEC Tire Product Lifecycle Engineering Team has estimated that reverse engineering the Wheel/Pneumatic Tire/Run Flat Assembly 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.

ontention is that a mechanism to recover its investment shall be demonstrated by the Government before consideration. Reverse engineering a Technical Data Package (TDP) is readily identified. In addition, a minimum lead-time of 18 months is required to meet the vehicle's mission performance requirements through Qualification testing based on historical tire/wheel testing for this type of equipment. 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 tially adverse operational environment. This delay is unacceptable in support of the mission for this vehicle, because historical data shows this NSN has a significant and constant monthly demand and soldiers cannot afford to wait that duration of time without spare assemblies.

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 JCB, Inc., the owner of the TDP and sole qualified manufacturer of this item. 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. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

7. Actions to Increase Competition: The Government does not own or have rights to the technical data. The Government posted a sources sought notice on Fed Biz Opps and has not received any inquiries from other providers in response to the notice to date.

TACOM has been engaged in a source approval process with Hutchinson, Inc.

for the wheel and tire assembly, since February 2018. TACOM recently requested additional

Potential Vendor

Capability/Product Website Contact Information

OTR Wheel Engineering

Aftermarket wheels and tires, including multi-piece rims. Also the capability to make custom wheels.

Specializes in industrial/agricultural applications.

http://otrwheel.com/a ftermarket/

While these sources provide wheel/tire assemblies in the appropriate load class to support the HMEE-I, none are a direct, bolt-on replacement. These are also commercial parts that would have to be modified in conjunction with the vendor, likely at a significant cost.

9. Interested Sources: Hutchinson, Inc. submitted a SAR package for this wheel and tire assembly to the Competition Management Office in February 2018 for Government review.

Hutchinson, Inc., several years. The SAR was not submitted in response to an open solicitation for this NSN, and

Tire Product Lifecycle Engineering Team regarding PRON EH81L493EH for the intended Long-Term Contract.

Currently, the Government is still in discussions with Hutchinson, Inc., to review the SAR package; so no decision has been made to approve or reject Hutchinson, Inc. as a secondary source. TACOM requested additional information from Hutchinson, Inc. and is awaiting its response in order to execute a final determination. This J&A covers a short term procurement to allow the Government time to review the package and conduct any qualification testing without disrupting monthly demands for this NSN.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history

(1) Contract: SPRDL1-16-D-0052 Award Date: 11/24/2015 Contractor: Giga, Inc.

Value: $3,015,733.90 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract: SPRDL1-16-C-0055 Award Date: 12/6/2014 Contractor: Giga, Inc.

Value: $579,000.00

(3) Contract: SPRDL1-15-C-0052 Award Date: 2/18/2015 Contractor: Giga, Inc.

Value: $386,000.00

(4) Contract: SPRDL1-14-C-0086 Award Date: 12/6/2014 Contractor: Giga, Inc.

Value: $699,713.04

(5) Contract: SPRDL1-14-P-0072 Award Date: 3/13/2014 Contractor: Giga, Inc.

Value: $47,970.00

The manufacturer, JCB, Inc., owns the fully-defined TDP for this NSN. No other vendor was being qualified to produce this NSN at time of award. Hutchinson, Inc., submitted a SAR to the Competition Management Office in February 2018 and is in the review process currently. No prior contract was awarded using full and open competition practices. No unusual procurement patterns have been identified.

b. Acquisition data availability

The Technical Data Package (TDP) for this Wheel/Tire Assembly is not available due to ownership and control of the TDP remains with the original manufacturer of the component suppliers. Items procured through a non-developmental approach which maximize the use of off-the shelf technologies, rely on commercial sources for spare parts. This is the main reason technical data packages are not procured for combat engineer and material handling equipment. There are no planned efforts to acquire the TDP or reverse engineer a sample component to generate a TDP.

c. Unusual and compelling urgency: N/A