JA - SPRDL124R0007_Redacted.pdf

JA-00715SPRDL1-24-R-0007

Previous J&A: Unavailable

With this transmission, mechanical output from the engine is delivered to the differential unit, which rotates the wheels, propelling the vehicle either forward or backward. The gears in the transmission reduce the higher engine speed to a slower rotational speed of the wheels. As part of this process, the torque available to the vehicle is increased, particularly at slower vehicle speeds. This results in enhanced driving conditions for the vehicle. For example, the greatest torque is needed when operating at low vehicle speeds (or to start from a stopped position), so the transmission transforms the engine’s output to provide high torque in this scenario. Alternatively, the engine must be able to perform efficiently at high speeds. The transmission unit makes these changes in torque, power, and speed possible. Unlike other transmissions that can be considered a commercial off the shelf (COTS) product, this transmission assembly has been specifically designed to mount to the HEMTT A4 vehicle.

The U.S. Government does not own or have rights to any of the detailed technical data for the HEMTT A4 Transmission (NSN: 2520-01-562-6793). The Government drawing only calls out the associated kit part numbers from Oshkosh Defense, LLC Transmission (CAGE: 75Q65). This item is defined by the Government owned Technical Data Package (TDP), CAGE 19207 kit drawing 57K6792, which consists of the HEMTTA4 Dressed Transmission (PN: 3695120, Oshkosh Defense, LLC CAGE:

75Q65) and the Container (PN: 00201200000). The HEMTT A4 Transmission cost is over 90% of the total value of this kit, and the TDP for this specific Transmission is not owned by the Government. The Government drawing for this item is partial in nature, and it only provides the part number for the HEMTT A4 Transmission with no other technical details, which is the reason why this item cannot be procured competitively.

This transmission is a critical component to the entire HEMTT A4 fleet.

The Original Equipment Manufacturer for the HEMTT A4 is Oshkosh Defense, LLC.

During initial production of this vehicle, the currently approved transmission was designed, configured, and integrated for this specific vehicle. Only the approved source is familiar with the specific configuration required for use on this vehicle. The risk associated with using an improper transmission is too great, so this procurement must be limited to vendors in possession of Oshkosh Defense, LLC technical data (i.e., its certified distributors).

There are other manufacturers which can produce similar transmissions (gear ratios, capacity, size, etc.), but they do not have the exact configuration, performance, or maintenance procedures as the transmission that was specifically designed, configured, and integrated for installation on this specific vehicle.

No actions are currently underway for competition. The efforts involved on the contract of the sole source components do 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 a mobility failure which could jeopardize the Army’s mission in a potentially adverse operational environment. Funds are not currently available 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

CUI

approved components to be contractually obtained under this procurement to maintain readiness .

There are two possible options for obtaining a competitive TDP for this transmission.

One would be for the Government to purchase the existing TDP from Oshkosh Defense, LLC and the other would be to reverse engineer the transmission in question. Currently Oshkosh Defense, LLC does not wish to sell their transmission TDP to the Government.

Ground Vehicle Systems Center (GVSC) Sustainment Engineering has estimated that reverse engineering the transmission assembly would cost a minimum of $2,850,000 with a lead time of 26 months for design, development, obtaining statistically correct tolerance levels, production, and TDP development. In addition, the assembly would have to undergo qualification and integration testing on a HEMTT A4 vehicle, which would have an additional lead time of 14 months and cost an additional estimated minimum of $2,500,000. The vehicle transmission is one of the most complex and critical items on a vehicle. GVSC contends that a mechanism to recover its investment shall be demonstrated by the Government before development will be considered.

Reverse engineering and qualification testing to include a material test, form, fit, and function test, performance test, and durability testing would require at least 40 months and an estimated minimum of $5,350,000. This expense could not be recouped through subsequent competition within a reasonable amount of time. At the current projected usage rate of units each year and the current unit cost of the annual cost is

. Assuming a % annual cost savings achieved through competition would result in an annual savings of This would take approximately years to offset the estimated $5,350,000 cost of reverse engineering the item and qualify another source.

The current HEMTT A4 Transmission Stock on Hand is zero, with backorders waiting fulfillment, and an Average Monthly Demand of . The 40 months it would take to reverse engineer this item would create a deficiency of transmissions. The conclusion of the reverse engineering process would result in . The delay associated with reverse engineering is unacceptable in fulfilling the Army’s requirements and would have a significant impact on the Army’s ability to sustain the HEMTT A4 fleet.

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.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

No additional actions to increase competition are being taken at this time. There are no contractors currently in the process of being qualified as an alternate source of supply for this item. There are no current or planned efforts to qualify additional sources since the Government does not possess a fully defined and validated TDP for this item. The source of supply, Oshkosh Defense, LLC (CAGE: 75Q65), owns the detailed technical data regarding this item.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 5 October 2023 and was open for 15 days. No responses were received.

The web-based market research in September of 2023 determined this transmission assembly is a commercial item pursuant to FAR Part subpart 2.101 – Definitions. The transmission assembly being procured by this action may have a limited application, but transmission assemblies, in general, have numerous applications in the commercial marketplace. No suitable transmission assemblies were identified as being a replacement for the asset being procured.

Computer-based market research was conducted by GVSC Sustainment Engineering during September of 2023. Keywords search: Transmission, Dressed Vehicular, HEMTT A4, Gear Box.

Links used to conduct market research are listed below:

https://www.eaton.com/us/en-us/products/transmissions/commercial-vehicle-transmissions.html https://twindisc.com/markets/land-based/military/ https://sapatransmission.com/propulsion-systems/

Findings: The results of this search did not produce any companies that would provide a direct replacement Transmission for the HEMTT A4 that is 100% new and not rebuilt that could be installed in the HEMTT A4 without considerable time and effort to adapt the new components. The HEMTT A4 is in sustainment at this time so massive vehicle system changes to accommodate competition are not funded and are unable to be fielded.

As a result of the Market Research, it was concluded that the Government does not have enough detailed information to consider similar parts for this specific application on the HEMTT A4. This transmission assembly cannot be identified as a COTS item.