JA SPRDL1-19-R-0276_Redacted.pdf

No previous J&A is available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-19-R-0276

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

2. Description of Action: The proposed action is to award a new three year firm-fixed priced Long Term Contract (LTC) for the Steering Gear (NSN: 2530-01-580-3591), for the Heavy Expanded Mobility Tactical Truck (HEMTT). Competition will be limited to Oshkosh Defense, LLC. (CAGE: 75Q65), part number 3847755, the only approved source for this specific Steering Gear. 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 Steering Gear (NSN:

2530-01-580-3591), part number 3847755 for the Heavy Expanded Mobility Tactical Truck (HEMTT). The anticipated contract will be an indefinite delivery, indefinite quantity contract with a minimum quantity of 21 and maximum quantity 315. 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 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.

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: The U.S. Government does not own or have rights to any of the technical data for the Steering Gear (NSN: 2530-01-580-3591) from Oshkosh Defense, LLC. (CAGE: 75Q65). Therefore, this company 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 Steering Gear would cost an estimated minimum of $700,000.00 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 HEMTT would have an additional lead time of 10 months and cost an additional estimated minimum of $500,000.00.

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 twenty eight

(28) months and an estimated minimum of $1,200,000.00. 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: 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 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 they 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 Steering Gear (NSN: 2530-01-580-3591), market research results are very limited. The part does not look to be Commercial off the Shelf (COTS).

Computer-based/internet market research was conducted by the Project Engineer during May 2019. Many Steering Gears are available commercially, but the Government does not own the technical data for this Steering Gear, 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.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 5/9/2019. 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.

Sources Sought Notice: 2019-394 Item Name: Steering Gear

NSN: 2530-01-580-3591

Part No: 3847755 End Item: HEMTTA4

FedBizOpps Link:

https://www.fbo.gov/index?s=opportunity&mode=form&id=15196ea31e4711ed4c79a54f c6d2d219&tab=core& cview=0

10. Other Facts:

a. Procurement History:

Contract: SPRDL1-18-P-0454 Award Date: 2018 August Contractor: Flight Source Inc.

Value: $ 64,800.00 (provided surplus)

Contract: SPRDL1-17-P-0302 Award Date: 2017 May Contractor: Oshkosh Defense LLC.

Value: $ 58,681.53

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the Steering Gear (NSN: 2530-01-580-3591).

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: N/A

Title: Contracting Officer Date: 6/7/19 Signature: //s// LCB

15. Legal Concurrence:

Concur:

Date: 06/14/2019