Redacted JA SPRDL1-19-R-0235.pdf

Previous J&A is available

SPRDL1-19-R-0235

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Description of Action: The proposed action is to award a three year firm-fixed priced Long Term Contract (LTC) for the Crane Hoist Assembly (NSN 3950-01-196- 4840), part numbers, 6-974-001851 for the Heavy Expanded Mobility Tactical Truck (HEMTT). Competition will be limited to Grove U.S. L.L.C, (CAGE 12361), part numbers, 6-974-001851 the only approved source for this specific Crane Hoist Assembly. Award is projected for the 1st quarter of FY20. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: This procurement is for the Crane Hoist Assembly (NSN 3950-01-196-4840), part numbers 6-974-001851 for the Heavy Expanded Mobility Tactical Truck (HEMTT). The anticipated contract will be an indefinite delivery, indefinite quantity contract with a minimum quantity of 3 and maximum quantity

45. The estimated unit price is , making the estimated minimum value of the contract and estimated maximum value of the contract .

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 the 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 USC 2304(c) (1), as implemented by FAR 6.302-1, where only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: Grove U.S. L.L.C designed and tested the Crane Hoist Assembly on the HEMTT at their own expense and obtained the Government’s authorization of the Hoist, Wire for use on the HEMTT.

The Government does not own technical data rights to this item. No technical data exists that would define production specifications for the Crane Hoist Assembly, this item was developed and tested at the private expense of Grove U.S. L.L.C, Cage 12361 and any such data is considered proprietary to the supplier.

The non-availability of technical data requires that this item be procured on a non-competitive basis from the source controlled for the replenishment of spare parts. The acquisition data and technical data for NSN: 3950-01-196-4840 is owned and controlled by the source.

The Government does not own the patent rights or any other proprietary rights to the technical data that would be required to produce a competitive TDP. Grove U.S. L.L.C passed the requirements of the government qualification tests, to include performance, reliability and durability tests.

Grove U.S. L.L.C is the owner of the TDP for the use on HEMTT.

Grove U.S. L.L.C has the unique and proven qualities and capabilities, facilities, resources, and manufacturing and development experience, to produce and procure the item identified.

The government did not buy the proprietary rights to produce a competitive TDP.

No vendors other than Grove U.S. L.L.C can meet the required performance standards.

The supplier has demonstrated the unique and proven manufacturing capabilities to establish and maintain the processing control required to repetitively produce this item.

The authorized sources tested the items in the vehicle to the vehicle specifications.

This is the only known source for the Crane Hoist Assembly for the HEMTT to have the proper form, fit, and function for this application.

6. Efforts to Obtain Competition: There are no known funding efforts in progress at this time to qualify other suppliers of this item nor will there be prior to the contract award due to funding constraints – no funds are available to qualify additional sources given the cost and time involved. At this time, there has not been any expressed interest by any known vendor to become a qualified source to produce this item. Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to acquire the commercially controlled data needed to make NSN:

3950-01-196-4840 fully competitive for the following reasons:

Using estimates, the time to procure the proprietary data from the authorized source, develop and test a prototype to make sure TDP is complete and accurate, and then procurement will be in full and open competition, is 12 months. The estimated cost of such effort would be at least . This estimation was based on similar projects.

Reverse engineering such part would cost and be at least 12 months. Funds are not available to develop technical data due to low demand and high cost.

Using these cost and delay model estimates, the Government likely could not recover in following competition, the costs for the procurement to become competitive and the 18 months delay is unacceptable to meet Government requirements.

The amount of time and funding required to develop, test, certify, and release a reverse engineered competitive design is not justifiable.

Without performing qualification testing, the government risks premature failure of this item, which could result in serious accidents involving fatalities.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require 12 months and . This expense could not be recouped through following competition. Funds are not available for qualification testing of a new source. To neglect qualification testing would cause a serious risk as premature failures of the frame, structural, vehicular could harm the mission. The delay associated with these efforts is unacceptable in fulfilling TACOM requirements and would have a significant impact on TACOM’s ability to support the soldier in the field.

8. Market Research: Given that no technical data is available for the Crane Hoist Assembly, NSN: 3950-01-196-4840, 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 the Crane Hoist 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.

The assigned engineering office performed market research with regard to the Crane Hoist Assembly. However, the information found was too generic due to the rationale provided above. As of 25 April 2019, this research did not produce any results that other sources exist or are anticipated to become available to satisfy the Government's requirement.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 4/11/2019. To date, no other sources have expressed an interest in providing the subject item.

Components: Crane Hoist Assembly

NSN: 2920-01-450-0215

Part Number: 6-974-001851 End Item: HEMTT

The link to Sources Sought Notice:

https://www.fbo.gov/index?s=opportunity&mode=form&id=2e7f340eae7b21c23548265e f0279a20&tab=core& cview=0