J&A REDACTED.pdf

Previous J&A SPRDL1-11-R-0194 is available.

J&A SPRDL1-18-R-0497

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL-18-R-0497

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

2. Description of Action: The proposed contract action is to award a new 3-year, long-term, firm-fixed price contract for the PLSA1 Dressed Transmission and Container (NSN:

2520-01-540-4212) used on the PLSA1 vehicle. This action will be funded using Army Working Capital Funds (AWCF).

3. Description of Supplies/Services: The PLSA1 Dressed Transmission, NSN: 2520- 01-540-4212 is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE: 19207) PN: 57K4776, which is a kit/list drawing listing two items; the PLSA1 Dressed Transmission and the Storage Container. The kit drawing defines the sole source of the Transmission as Oshkosh Defense, LLC (CAGE 75Q65, formerly 45152), PN: 3590229, and the sole source of the Container as Composition Materials Co., Inc. (CAGE 98231), PN: 00198700000. The Dressed Transmission is over 80% of the total value of this kit. The Government owned TDP is partial in nature, and it does not define either of these items except for providing the contractor’s part numbers, which is the reason why this item cannot be procured competitively.

The unit price is estimated at The guaranteed minimum quantity of the contract is 4 each and the maximum quantity is 45 each. The total estimated contract value is between and

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

AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-

100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD- 100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, 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 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Needs."

5. Reason for Authority Cited: The U.S. Government does not own or have rights to any of the technical data for the highly detailed PLSA1 Transmission and Storage Container (NSN: 2520-01-540-4212), which drawing only calls out the sole source parts to purchase from Oshkosh Defense, LLC (CAGE: 75Q65) and Composition Materials Co., Inc. (CAGE 98231). Therefore, these companies are the owners of the intellectual property and retain full-rights-in-data for the detailed technical data.

The TARDEC Tactical Vehicle Sustainment Team has estimated that reverse Engineering the PLSA1 Transmission and Storage Container would cost an estimated minimum of $4,500,000.00 with a lead time of 24 months for design, development, and production. In addition, it would have to undergo qualification testing. Qualification testing on a PLSA1 vehicle would have an additional lead time of 8 months and cost an additional estimated minimum of $800,000.00. TARDEC’s contention is that a mechanism to recover their investment shall be demonstrated by the Government before they will consider it.

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 thirty two (32) months and an estimated minimum of $5.3M. 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: This action is limited to Oshkosh Defense, LLC (CAGE: 75Q65) and Composition Materials Co., Inc. (CAGE 98231), the owners of the intellectual property and manufacturers 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 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.

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

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 sources of supply, Oshkosh Defense, LLC (CAGE: 75Q65) and Composition Materials Co., Inc. (CAGE 98231), own 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 PLSA1 Transmission and Storage Container (NSN: 2520-01-540-4212), market research results are very limited. Computer-based/internet market research was conducted by the Project Engineer during May of 2018.

The information found during market research was too generic to determine whether commercially available items exist for this critical application. Oshkosh receives the transmission from an OEM and then adds on additional components to make it “dressed”.

This transmission is not COTS, and Oshkosh alone owns the technical data for dressing the transmission. The results of this generic search were that no other sources exist, nor are there any sources anticipated to become available to satisfy the Government’s requirement.

If the technical information for the PLSA1 Transmission and Storage Container (NSN:

2520-01-540-4212) is eventually made available, specific market research can then be conducted and competitive procurement can be considered.

9. Interested Sources: A Sources Sought Synopsis was posted to FedBizOpps on 5/24/2018. To date, no other sources have expressed interest in providing this item.

Component: Transmission, Hydraulic, Vehicular

NSN: 2520-01-540-4212

Part Number: 57K4776 End Item: Palletized Loading System (PLS)

2018-537.pdf

To date, no other sources have expressed an interest in providing the subject item. Only the approved sources own the most current TDP part iteration (revision level).

10. Other Facts:

a. Procurement History:

1.) Contract: SPRDL112C0036 Award Date: 03/08/2012 and 05/04/2012 Contractor: Oshkosh Corporation Quantity: 37 Value: $1,126,342.16 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

2.) Contract: W56HZV07C0278 Award Date: 04/06/2007 Contractor: Oshkosh Truck Corporation Quantity: 50 Value: $1,355,000.00 Competitive Status: Limited Source Authority: FAR 6.302-1, Only One Responsible Source

b. Acquisition data availability. The Government does not own or have rights to the detailed technical data for the PLSA1 Transmission and Storage Container

(NSN: 2520-01-540-4212).

c. Subcontracting Competition: The Government will require the awarded contractor to submit a subcontracting plan, which will include the efforts to subcontract to small business IAW FAR 19.704.

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 of my knowledge and belief.

[ ] $150K to $650K Team Leader [ X ] $650K to $12.5M AD/Deputy AD [ ] $12.M to $85.5M SES [ ] >$85.5 Director

Engineer Name: Date: 5/29/2018 Title: Engineer, Tactical Trucks Signature: //signed//

Supervisor Name: Date: 5/31/2018 Title: Supervisor, Tactical Trucks Signature: //Signed//

Supervisor Name: Date: 5/31/2018 Title: Deputy Associate Director, TVE Signature: //signed//

12. Requirement Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: Date: 6/1/18 Title: Item Manager Signature: //Signed//

Name Date: 6/1/18 Title: Supply Lead Signature: //s//

Name: Date: 6/1/18 Title: Acting Group Leader Signature: //s//

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination will be based on appropriate forms of cost and/or price analysis. Negotiations will be conducted as necessary. The Contractor will not be required to submit certified cost and pricing data based on the exception at FAR 15.403-1(b)(3) because this item is determined commercial.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 02 July 2018

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Leah Bourdeau Title: Contracting Officer Signature: //s// LCB Date: 02 July 2018

15. Legal Concurrence:

Concur: // // Date: 07/05/2018

Approval Authority for Acquisitions Equal to or Greater Than $700,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing justification, I hereby approve the procurement of PLSA1 Dressed Transmission, NSN: 2520-01-540-4212 which is defined by the Government owned Technical Data Package (TDP), TACOM (CAGE: 19207) PN: 57K4776 consisting of the Transmission, PN: 3590229, from Oshkosh Defense, LLC (CAGE 75Q65) and the Container, PN: 00198700000 from Composition Materials Co., Inc. (CAGE 98231), with a total maximum estimated value of . This action will be awarded on an other than full and open competition basis, pursuant to the authority of 10 U.S.C. 2304(c) (1), and FAR 6.302-1, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Name:

Title:

Date:

Signature:

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.07.17 11:35:37 -04'00'