JA SPRDL1-19-R-0286 Redacted.pdf

J&A SPRDL1-19-R-0286

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-19-R-0286

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

2. Description of Action: The proposed contract action is to award a new firm fixed price contract for the Dressed Transmission Assembly with Container (NSN: 2520-01- 549-8666) used on the M916A3 AND M917A2 Truck. This NSN is tied to part number 57K6162 (CAGE 19207) which is comprised of multiple parts, the vast majority of which are restricted to Allison Transmission (CAGE 73342). The primary component is Allison Transmission, part number E013122. Award is projected for the1st quarter of FY20. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: Allison Transmission (PN: E013122, CAGE:

73342) will provide the Dressed Transmission with Container (NSN: 2520-01-549-8666) used on the M916A3 AND M917A2 Truck. The minimum guaranteed value of the contract is for a quantity of 7 each. The total estimated maximum value of this contract, with a 100% option included, is for a total quantity of 14.

This item is defined by the Government-owned TACOM drawing number 57K6162, which is a kit that consists of two items: the dressed transmission on drawing 12512428 and the shipping container. The transmission called out on this drawing (Allison Transmission Part Number E013122) almost the entire cost of the kit. The Government-owned kit drawing 57K6162 does not fully define the transmission, which is why it cannot be procured competitively.

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.

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: Allison Transmission (CAGE: 73342) owns the intellectual property for the primary component of this part (E013122) and retains full-rights-in-data for its technical data. This buy is for replenishment of stock.

The TARDEC Tactical Vehicle Engineering Sustainment Team has estimated that reverse engineering the Dressed Transmission with Container (NSN: 2520-01-549-8666) would cost an estimated minimum of $2,500,000.00 with a lead time of 24 months for reverse engineering work to include design, development, obtaining statistically correct tolerance levels, TDP generation, and production. In addition, the Dressed Transmission with Container would have to undergo qualification testing/PVT testing on a M916A3 AND M917A2 Tractor Truck, which would have an additional lead time of 12 months and cost an additional estimated minimum of $2,000,000.00 as a vehicle transmission is one of the most complex and critical items in a vehicle.

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 36 months and an estimated total of $4,500,000.00 for both reverse engineering and testing. 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, for the historically low demand, savings would never materialize for a transmission that would require significant capital to reverse engineer and test.

Reverse engineering TDP development is not feasible due to requirements of the component’s material properties and part tolerances which cannot not be readily or easily identified. Because of the uncertain definition of requirements, an increased mission and readiness risk is possible. Issues with the Dressed Transmission with Container would leave the M916A3 and M917A2 incapable of completing its mission.

6. Efforts to Obtain Competition:

The Government does not own a fully detailed TDP required to manufacture this item.

There are no vendors 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. Testing and validation of any claims would need to be verified before approval is granted. At this time, there are no known contractors seeking approval through the CMO Currently, there has not been any expressed interest by any known vendor(s) to become a qualified source(s) to produce this item. Therefore, this action will only be limited to Allison Transmission (PN: E013122, CAGE: 73342), the owners of the intellectual property and manufacturer of this item.

The synopsis notices required by FAR 5.201 will be posted.

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 full-defined and validate technical data package for this item. The source of supply, (Allison Transmission) 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’s Source Approval Program. Reverse engineering, testing, and all other efforts to become a secondary approved source at their own expense.

8. Market Research:

Given that no detailed technical data is available for the Dressed Transmission with Container (NSN: 2520-01-549-8666), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during May 2019.

The results of performing many internet searched are that this Dressed Transmission with Container is proprietary with no technical data available to the Government other than a simple model number listed on a drawing. Installing different types of transmissions in the M916A3 and M917A2 would require extensive reconfiguration and would have to requalify for performance metrics, which is the reason that no commercial-off-the-shelf transmission assemblies exist to complete the mission. Engineering has determined that there are no COTS solutions that could be used in this application with any confidence.

A Sources Sought Synopsis was posted to FedBizOpps on May 22, 2019 and to date, there has been no interest.

Sources Sought Notice 2019-414

Item Name: Transmission, Hydraulic

NSN: 2520-01-549-8666

Part No: 57K6062 Quantity: 7 MIN/ 14 MAX End Item: M916A3 & M917A2 FedBizOppsLink:

https://www.fbo.gov/index?s=opportunity&mode=form&id=3769ff5d6a9003189cf4408c3 c9fde21&tab=core& cview=0

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). Therefore, interested, non-approved sources cannot provide the Government with valid proposals and cannot be considered at this time.

10. Other Facts:

a. Procurement History

b. Acquisition data availability. The Government does not own or have rights to the technical data for the purchased parts of the Dressed Transmission with Container.

c. Unusual and compelling urgency: N/A

d. Subcontracting Competition: N/A

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