SPRDL124R0060_Redacted (1).pdf

SPRDL1-24-R-0060 (JA-00780)

Previous J&A: SPRDL1-20-R-0004

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-24-R-0060

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to Grove U.S. LLC, Commercial and Government Entity (CAGE) 12361, for National Stock Number (NSN) 3040-01-207-6374, Purchase Request Order Number EH4C0125EH Cylinder Assembly, Actuating, using Army Working Capital Funds.

3. Description of Supplies/Services: The NSN 3040-01-207-6374, part number 6- 372-002506, Cylinder Assembly, Actuating, is used on the Heavy Expanded Mobility Tactical Trucks (HEMTT) and is a Hydraulic Outrigger extension Cylinder used for lifting or lowering of items. The deliverable for this contract is for a base quantity of 18 each, with 100% option making a total quantity of 36 each. The total maximum value of this contract is $ .

Acquisition Method Code (AMC):

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

Acquisition Method Suffix Code (AMSC):

R - The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: The outrigger cylinder is a device that converts fluid power to linear force and motion. Pressure from the vehicle’s hydraulic compressor moves through hoses to the actuating cylinder. The pressure is used to expand and contract the cylinder. The cylinder assembly is a component of the outrigger assembly mounted on HEMTT configurations M977 and M985. The outrigger extension cylinder provides the force necessary to extend the outriggers into position. The HEMTT outriggers provide stabilization to the HEMTT while the crane is in use. Without the extension cylinders to extend the outriggers into their proper position, the HEMTT crane could not be safely used, inhibiting the main functionality of the HEMTT.

The HEMTT platform was designed and tested by Oshkosh, who owns the intellectual property for the truck. Oshkosh developed the system level requirements for the outrigger assembly and possess details regarding the design intent of the cylinder.

Oshkosh then sourced the assembly to Grove. During initial production of this vehicle, the outrigger cylinder was designed, configured, and integrated by Grove for this specific vehicle.

The Government does not have rights to the Technical Data Package (TDP) or specifications. Grove is the only vendor who possesses the technical data and expertise to manufacture and assemble this outrigger cylinder. Grove has manufactured outrigger cylinders that have met all system level requirements and have successfully operated in the field. If the Government were to purchase cylinders that have not undergone proper verification, mission failures and potential loss of mission critical functions to the vehicle could occur. Without this proper verification, it is likely that the cylinder would not fit or function properly, which could result failure or flipping of the HEMTT while recovering stranded vehicles in the field, which would jeopardize mission capability and fleet readiness.

Since the Government does not own any of the technical data, the Government would have to reverse engineer the outrigger cylinder to define all aspects of the Cylinder. A reverse engineering effort would include work to clarify and define a cylinder with the same fit, form, and function as the original. Design requirements should be broken down and clarified without ambiguity. Technical information such as understanding the parameters to include types and load ratings of hydraulic cylinders, housing dimensions, and mounting dimensions. Next, Reliability, Availability, and Maintainability (RAM) testing would have to be completed. Testing would include accelerated life testing, cold and hot environments, salt spray, and maximum load operation testing. To neglect testing would be a high risk as premature failures of this item in the field could result in a mobility failure

. After the qualification, the TDP would have to be built so the part could be competitively sourced, and a source would have to be found.

The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Engineering Team has used historical data from past reverse engineering efforts to estimate that Reverse Engineering the HEMTT cylinder would cost an estimated minimum of 12 months and $ for:

• Research and Development (R&D), including part design, development, and prototype.

• RAM testing, design validation and vehicle integration testing; and

• TDP development, to procure competitively.

A detailed breakdown of cost impacts is shown below:

Action Delay Cost Part R&D 12 months $ RAM Vehicle testing 4 months $ Develop TDP 6 months $ Total Development Time 22 months $

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data or reverse engineering the item to create a competitive build to print technical data package within a reasonable time frame. At the current average usage rate of 11 units each year, a current unit cost of $ and assuming 25% savings achieved through competition, the $ in annual savings would take over years to offset the estimated $ 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. Sole Source: Notices required by FAR 5.201 will be posted.

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.

8. Market Research: The Ground Vehicle Systems Center (GVSC) Tactical Vehicle Sustainment Engineer performed the following internet searches on 31 January, 2024 to find suitable competition for the Grove outrigger cylinder.

Keyword: outrigger cylinder, heavy duty hydraulic cylinder

Website: https://www.powerpackerus.com/hydraulic-cylinders/stabilization-truck-outriggers/hydraulic-outrigger-stabilizers/ https://www.ramindustries.com/stabilizer-cylinders.aspx https://www.rrproducts.com/hydraulic-cylinder-outrigger-r163216.html

Findings: When searching for alternatives, the engineer came across Power-Packer, Ram, and R&R Products which offer industry solutions for outrigger cylinders. However, the government does not have any technical information for the Grove outrigger cylinder because the data is proprietary, so further research could not be completed. Although several manufacturers make products that appear to be like the cylinder used on the HEMTT, the lack of a TDP or detailed drawings for the cylinder prohibit the engineer from knowing the exact specifications that must be met by a potential alternative. A wide range of component strength, collapsibility, maximum load, and hydraulic and air connections are available across the brands reviewed. However, the government does not have access to any of these characteristics for the provisioned cylinder, so a direct comparison is not possible. The current cylinder was designed by the OEM specifically to fit onto this vehicle, and integration/verification testing was conducted for this reason.

Any other alternative would require integration and extensive testing to mitigate potential risks

. Therefore, it can be concluded that this cylinder is custom for the application and should be identified as a sole-source item.

On 29 January 2024, the Contract Specialist performed additional market research and searched the Department of Defense (DOD) Commercial Item Determination Database (CID) for National Stock Number (NSN) 3040-01-207-6374, but no records were found.

Although NSN 3040-01-207-6374 didn't have a formal commercial determination in the database, there is evidence that Federal Acquisition Regulation (FAR) Part 12 procedures were previously employed to procure the same product under contract SPRDL1-20-C-0080, awarded on 31 January 2020.

As a result of the market research conducted, it was concluded that this product is of a type used, sold/leased, or offered for sale to the public and is available in the commercial marketplace with or without modifications pursuant to the definition of a commercial product at FAR 2.101. This product meets the definition of a commercial product at FAR 2.101.

A Sources Sought notice was posted to The System for Award Management (SAM.gov) on 23 February 2024, and remained open for 15 days. No responses were received.

9. Interested Sources: To date no additional sources have expressed interest in this item.

10. Other Facts: Procurement History:

Contract Number: SPRDL1-20-C-0080 Contractor: Melton Sales & Service, an authorized dealer for Grove U.S. LLC.

Award Date: 31 January 2020 Quantity: 40 Total Dollar Value: $246,646.40 Competitive Status: FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

Purchase Order: SPRDL1-18-P-0523 Contractor: Melton Sales & Service an authorized dealer for Grove U.S. LLC.

Award Date: 09 August 2018