JA_SPRDL1-19-R-0186_redacted.pdf

J&A SPRDL1-19-R-0186

Justification and Approval for Other Than

Full and Open Competition

SPRDL1-19-R-0186

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

2. Description of Action: The proposed action is to award a new, three-year, firm fixed price, IDIQ contract for Wheel, Pneumatic Tire (NSN 2530-01-532- 5635).

Competition will be limited to Hutchinson Industries, Inc., Defense and Security Division (Part: AS-0143, Cage: 62161), the only approved source of this Wheel, Pneumatic Tire. This action is to be funded utilizing Army Working Capital Funds

(AWCF).

3. Description of Supplies/Services: The contractor shall provide the Wheel, Pneumatic Tire utilized on the LAV (Light Armored Vehicle).

Estimated Unit Price:

Guaranteed Minimum Quantity: 18 Estimated Minimum Value:

Maximum Quantity: 378 Total Estimated Maximum Value of this Contract:

The LAV is a family of 8x8 wheel, diesel powered, lightly armored vehicles that combine speed, mobility, and firepower to fulfill a variety of missions for the US Marine Corps. The versatile LAV brings Marines to fight on land and in water while also providing a weapons platform for anti-tank missiles and mortars, functioning as a command and control vehicle, or performing logistical recovery tasks. Powered by a 6V53T Detroit Diesel turbo-charged engine, they are four-wheel drive (rear wheels) transferable to eight-wheel drive. These vehicles are also amphibious, meaning they have the ability to "swim," but are limited to non-surf bodies of water (no oceans). While engaged in amphibious operations, the maximum speed is approximately 12 km/h (7.5 mph) using equipped propellers. The current Service Life Extension Program (SLEP) modifications will hinder or eliminate amphibious operations.

Typical land speeds are approximately 100 km/h (62.5 mph) in either 4- or 8-wheel drive;

however, fuel economy decreases in 8-wheel drive. The vehicles operate on diesel fuel.

They are equipped with a M242 Bushmaster 25 mm cannon, two M240 7.62 mm machine guns, and two 4-barrel smoke grenade launchers located on the forward left and right sides of the turret. The crew is three: vehicle commander (VC), gunner and driver, and four passengers (scouts) with combat gear.

LAVs first saw combat during the Invasion of Panama in 1989, and continued service in the Gulf War, Iraq War, and the War in Afghanistan. The LAV platform is planned to remain in service with the Marine Corps until 2035.

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

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. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 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-responsible source and no other supplies or services will satisfy agency

FAR 6.302-1(a)(2)(ii)(A)(B) provides that supplies may be deemed available only from one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Supplies may be deemed to be available from the original source in the case of a follow-on contract when award to another source would result in substantial duplication costs to the Government that would not be recovered through competition or unacceptable delays in filling the Government's requirements.

5. Reason for Authority Cited: The USG does not own or have rights to any of the technical data for the LAV. GM Defense, the vehicle OEM, is the owner of the vehicle Intellectual Property (IP) and retains full rights in data for its technical data. Via a proprietary business arrangement with the vehicle OEM, Hutchinson Industries developed the subject Tire/Wheel Assembly in conjunction with the overall vehicle design. Consequential to this historical OEM-vendor compact, Hutchinson Industries retains ownership of the Tire/Wheel Assembly IP.

Tire/Wheel Assemblies are critical to vehicle safety and maintaining high levels of vehicle availability/readiness. Components for these vehicles were originally qualified as part of vehicular testing, including Production Verification Testing (PVT). This Tire/Wheel Assembly contains Central Tire Inflation (CTI) hardware which was developed with, and integrated into, the overall vehicle design architecture. Utilizing components from a contractor that has not been tested specific to this vehicle application could result in loss of tire air pressure, thus negatively affecting the performance of the vehicle. Air loss would cause poor braking and hazardous handling characteristics which may lead to loss of vehicle control and potentially vehicular damage and probable injury or death.

The TARDEC Tire 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. Components must be tested to certain specifications in order to be validated (e.g. Wheel SAE J1992, Assembly SAE J2014). These tests are critical to ensure the safety of the vehicle, its occupants, and the public at large. The Ground Vehicle Systems Center contention is that a mechanism to recover its investment shall be demonstrated by the USG before it will be considered. In addition, a minimum lead-time of 18 months is required to meet the vehicle's mission performance requirements based on historical Tire/Wheel Assembly testing for this type of equipment. This delay is unacceptable in support of the mission for this vehicle.

Reverse engineering Test Operating Procedure (TOP) 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. Such a compromised vehicle condition could cause objectionable braking/handling characteristics with potential roll-over and thus potentially beget an accident resulting in serious injury or death to operators, passengers and/or others in the vicinity.

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 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 mission in a potentially adverse operational environment. The delay associated with these aforesaid efforts is completely unacceptable in fulfilling extremely urgent security/police requirements and would have a significant impact on TACOM's ability to support field customers. Funds are not available at this time for either procuring the proprietary data or reverse engineering the item to create a competitive TOP or qualification testing for a new source. Ultimately, there is a vital need for correct approved components to be contractually obtained under this PRON EH9L0213EH to maintain readiness and avoid vehicle dead-lining due to supply problems.

6. Efforts to Obtain Competition:

(a) This action is limited to Hutchinson Industries - Defense and Security Division.

Hutchinson is the owner of the intellectual property and the sole qualified 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 Technical Data Package (TDP), nor are there any funds available to conduct the extensive (costly and time-consuming) qualification testing requirements.

Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item.

(b) Subcontracting competition. The USG will require the chosen contractor 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.

7. Actions to Increase Competition: It is not beneficial to increase competition because the USG does not own or have rights to the technical data for LAV spare components. 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. For the needed procurement volume, the time and monetary costs would not be recouped through competition. Additional sources cannot be considered at this time.

8. Market Research: The Government has no funding available to qualify additional sources; thus, any qualification would be done solely at the contractor's expense.

Given that no technical data is available for LAV 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. Hence, it is imperative that some technical information be available in order to conduct valuable market research. A general internet search was conducted by the Project Engineer during February 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 USG's requirement.

In the event that the technical information for LAV vehicles is eventually made available, specific market research could then be conducted and competitive procurement considered.

9. Interested Sources: A Sources Sought Notice for this NSN was posted on 20 February 2019. To date, no sources have written to express an interest, nor has the Government identified any other source possessing an interest in being an alternate source for this NSN.

FedBizOpps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=74c6fe1fee5af20c4377edc9 6bf49a72&tab=core& cview=0.

Sources_Sought_N otice_2019-262.pdf

Noun: Wheel, Pneumatic Tire

NSN: 2530-01-532-5635

End Item Application: LAV

Quantity Required: 378, estimated (over three years) Unit Price:

Approved Manufacturer and Part Number: Hutchinson Industries, Inc., Defense and Security Division; Part Number: AS-0143

The notices required by FAR 5.201 shall be published and any proposals received shall be considered.

10. Other Facts:

a. Procurement history

(1) Contract #: SPRDL1-17-D-0011 Award Date: November 14, 2016 Contractor: Hutchinson Industries (CAGE: 62161) Value: $974,084.40 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(2) Contract #: SPRDL1-13-D-0014 Award Date: September 18, 2013 Contractor: Hutchinson Industries (CAGE: 62161) Value: $456,730.00 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(3) Contract #: W56HZV-09-D-0063 Award Date: January 14, 2009 Contractor: Hutchinson Industries (CAGE: 62161) Value: $ 4,102,133.68 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

(4) Contract #: W56HZV-06-D-0120 Award Date: March 29, 2006 Contractor: Hutchinson Industries (CAGE: 62161) Value: $6,113,602.40 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

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 results of a detailed cost and or price analysis and the contractor's submission of certified cost and pricing data.

Typed Name: Leah Bourdeau Date: 4/18/19

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.

Typed Name: Leah Bourdeau Date: 4/18/19

Title: Contracting Officer Signature: //s/ LCB

15. Legal Concurrence:

Typed Name: Date: 4/26/2019

Title: Legal Advisor Signature: