JA_SPRDL123R0066_Redacted.pdf

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Redacted Justification & Approval (J&A) Federal contract opportunity
Solicitation number
SPRDL1-23-R-0066
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification and approval document seeks to award a sole source contract to Independent Rough Terrain Center for wheel and tire assemblies in support of rough terrain container handlers. The assemblies are a proprietary design integral to vehicle performance and safety, requiring extensive testing and qualification. Estimates to reverse engineer a competitive design exceed $3 million with an 18 month timeline, and would not recover costs within a reasonable period given annual demand and savings. Prior contracts were also awarded sole source from 2012 to 2015 based on the design being the only responsible source. The Defense Logistics Agency Land and Maritime will issue this solicitation for the wheel and tire assemblies.

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SPRDL1-23-R-0066 (JA-00601)

Previous J&A: SPRDL1-15-R-0108 based on an understanding of the requirements of the item for supporting the RTCH performance, including tire construction and mobility characteristics.

The source of supply, IRTC, is the owner of the intellectual property and retains full-rights-in-data for its technical data. IRTC has the unique qualifications to fulfill this requirement. They have the technical expertise of supporting the end item RTCH for many years and selecting components like the Wheel and Tire Assembly to meet system requirements. They have conducted in-house testing to assure the mobility requirements and the durability of the Wheel and Tire Assembly meet the RTCH mission. Selecting a Wheel and Tire assembly that has not met this rigorous qualification by the OEM and verification through continual and efficient field use on the RTCH platform could result in degraded system performance and mission effectiveness.

The Ground Vehicle Support Center (GVSC) Tire Product Lifecycle Engineering Branch was utilized for their expertise in reverse engineering and product qualification testing options. The GVSC Tire Branch has estimated that reverse engineering the Wheel and Tire Assembly would cost between $2M to $3.5M for development, testing, qualification, production tooling, and wheel certification to develop a potential additional source. The Wheel & Tire Assembly is a fundamental part of the RTCH vehicle system which impacts braking, handling, and durability test performance. These tests are critical to ensure the safety of the vehicle, its soldier occupants, and the public at large. With a demand rate of 65 units per year and a procurement lead time of 12 months for parts, a delay in acquiring replacement parts impacts the Army’s ability to meet field demands.

With no parts on hand, up to 65 vehicles could be down for this reason. Reverse engineering and TDP development are not feasible due to requirements of the component’s material properties which cannot be readily identified. Due to the uncertain definition of material requirements, an increased safety risk is possible in which failure of one or more of the component items could result in adverse stability and durability of the vehicle, potentially resulting in serious injury to the warfighter.

Qualification Testing to include material test, form, fit, function test, performance test and durability test would require at least 18 months and a cost up to $3.5M. Neglecting qualification testing would be a high-risk proposition, as premature failures of the Wheel & Tire Assembly in the field could result in mission failure, which could jeopardize the Army’s mission in a potentially adverse operational environment. Funding is not currently available for either procuring the proprietary technical data, reverse engineering the item to create a competitive TDP, or qualification testing for a new source. There is a vital need for correct approved components to be contractually obtained under this procurement to maintain readiness and avoid vehicle dead-lining due to supply problems.

The Government would not be expected to recover, through subsequent competition, the additional costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive build to print TDP within a reasonable time frame. At the current average usage rate of 65 units each year, a current unit cost of

, and assuming 25% savings achieved through competition, the in annual savings would take approximately years to offset the estimated $3.5M cost of reverse engineering the item and qualifying another source.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in section 5 above the Government is not pursuing competition for this item.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

SOLE SOURCE: Notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no known funding efforts in progress at this time to develop the competitive technical data required to make the Wheel & Tire Assembly fully competitive. No contractors are in the process of being qualified at this time, nor will be prior to the contract award due to funding constraints.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 07 Feb 2023, and was open for 15 days. Two responses were received from vendors, with assessment of the responses below:

Two responses from potential vendors were received in response to the Sources Sought Notice. Both Titan Marketing Services, LLC. and The Toota Group, LLC.

requested information on how to submit an offer for this requirement. The contract specialist informed the vendors that they could contact the Competition Management Office to apply to become an additional source through the Source Approval Program.

No further responses were received from either vendor.

The GVSC CE-MHE project engineer performed internet searches on 14 and 19 December 2022 searching for other wheel and tire assembly units that could meet the RTCH specifications.

1. Keyword used: “Part Number MP-0002433G”

Website location: https://buynsn.com

Findings: The keyword used for this search was the part number featured in this procurement. The result was the actual tire that is approved for the RTCH application.

2. Keyword used: “Rough Terrain Tire and wheel assembly”

Website location: https://www.evolutionwheel.com/rough-terrain-forklift-tires

Findings: This market search resulted an example of a solid tire for forklift applications where pneumatic tires are not recommended, for example, in a rock quarry or a landfill.

These tires are not a candidate for the RTCH because they are smaller, have lower load rating, and lack in rough terrain mobility.

3. Keyword used: “Rough Terrain Container Handler Tire and wheel assembly”

Website location: https://commercial.bridgestone.com/en-us/product/bridgestone/off-the-road/vchs

Findings: This search resulted in a pneumatic tire used in container handlers. The size selection is smaller than the RTCH application, and therefore not a suitable solution for this requirement.

9. Interested Sources: Two responses from vendors were received in response to the Sources Sought Notice posted on SAM.gov and determined unacceptable. See the Market Research in Section 8 for the vendor inquiry details.

10. Other Facts:

(1) Procurement History:

Contract Number: SPRDL1-15-D-0061 Award Date: 17 September 2015 Contractor: Independent Rough Terrain Center (CAGE 1NWY2) Contract Value: $1,963,935 (3-Year ordering period) Competitive Status: FAR 6.302-1, Only One Responsible Source

Contract Number: SPRDL1-13-D-0004 Award Date: 07 Nov 2012 Contractor: Independent Rough Terrain Center (CAGE 1NWY2) Contract Value: $2,554,193 (2-Year ordering period) Competitive Status: FAR 6.302-1, Only One Responsible Source

(2) The above buys were solicited and awarded under Other Than Full and Open

Competition.

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

Name:

Title: Division Chief Email:

File details come from the government source that posted it. Updated .