JA-SPRDL1-24-R-0107 Redacted.pdf

SPRDL1-24-R-0107 (JA-00808)

Previous J&A: SPRDL1-22-R-0124

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-24-R-0107

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price contract to DP Manufacturing, Commercial and Government Entity (CAGE) 0EJ14, for National Stock Number (NSN) 2590-01-572-0890, Winch Drum, Vehicle Mounting, using Army Working Capital Funds.

3. Description of Supplies/Services: The NSN 2590-01-572-0890, part number 53642, Winch Drum, Vehicle Mounting, is used on the Heavy Expanded Mobility Tactical Truck (HEMTT) M983. The deliverable for this contract is for a base quantity of 5 each, with an option quantity of 5 each, making a total quantity of 10 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 data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them.

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 FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: The winch is a critical component to the HEMTT fleet.

The winch allows the HEMTT to recover itself from conditions when stuck, move other vehicles, or assist in recovering non-mission capable tactical and combat equipment.

This action is done using a motor that will turn a spindle from which the drum assembly is attached that in turn either winds or unwinds a cable. The cable is attached to a fixed point that assists in the winch mechanism to be able to move the vehicle without the use of the engine or traditional vehicle function. The cable needs to be strong enough to either move the HEMTT or potentially another vehicle that could utilize the winch for vehicle recovery.

The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.

DP Manufacturing owns the rights to the technical data. The original equipment manufacturer (OEM) for the HEMTTT is Oshkosh Defense. The part has been sourced from DP Manufacturing CAGE 0EJ14. DP Manufacturing has the means to produce this part, owns the technical data for the winch, and has the necessary knowledge to make the winch to fit a HEMTT platform, as well as conform to the SAE J706 standard for winch ratings for Government applications. Trying to procure a winch from other sources would not guarantee the quality, fit, form, or function of the current winch on the HEMTT. Without knowledge of proper fit, form, or function, winches not sourced from DP Manufacturing could fail to perform to the needs of the HEMTT, or not fit properly when installed, ultimately affecting the readiness of the HEMTT fleet.

The Ground Vehicle Systems Center (GVSC) Tactical Vehicle Engineering Sustainment Team has estimated, based on a previous support cost analysis of the M88 main winch, that reverse engineering the HEMTT winch drum could cost an estimated minimum of $450,000.00 for parts and labor, with a lead time of 12 months for design, development, production, and technical data development. In addition, it would have to undergo design validation and integration testing. Validation testing on a HEMTT would add an additional one month to the lead time and cost an additional estimated minimum of $50,000. In total, reverse engineering and validation testing to include material test, form, fit, and function test, performance test, and durability testing would require at least 13 months and an estimated minimum of $500,000.00. This expense could not be recouped through subsequent competition within a reasonable amount of time. To neglect validation testing would be a high risk as premature failures of this item would render the HEMTT crew unable to complete their mission.

The Government would not be able to recover, through subsequent open competition, the duplication of costs involved in reverse engineering the item to create a new and competitive TDP within a reasonable time frame. At the current average rate of 10 units each year, a current unit cost of $ , and assuming a 25% cost savings due to it being sole source, the $ in annual savings would take over to offset the estimated $500,000.00 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 we are 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.

Given that no technical data is available for this winch (NSN: 2590-01-572-0890), market research results are very limited. A general internet search was conducted by the Project Engineer during April of 2024. Similar winches are available that have multiple speeds and high capacities, but it is not certain whether they can meet the 60,050 lb. capacity at the specific speeds that the DP Manufacturing can operate as originally testing on the HEMTT platform. The integration of a like-winch without the necessary technical data would be a problem, as DP Manufacturing has the expertise and the technical data to provide a winch that performs properly on the HEMTT.

Installing a different winch on the HEMTT would require extensive reconfiguration and would have to requalify for performance metrics, which is the reason that no commercial-off-the-shelf winches exist to complete the mission.

8. Market Research: Market research was conducted by the GVSC Heavy Tactical Vehicle Sustainment Team during May of 2024 to find suitable competition for the drum winch. Winches are identified by characteristics such as length, weight capacity, and application. The materials, dimensions, mounting details, and performance requirements are not available for this assembly. Due to the lack of a TDP or in-depth technical specifications of the sole-source part, the validity of researched winches are difficult to evaluate. Other manufacturers offer similar winches, but the form, fit, and/or function of alternatives are not identical to the sole-source part.

Keywords:

HEMTT Winch Heavy Duty Winch Vehicle Mounted Winch

Websites:

https://www.dovertwg.com/ https://www.ramseywinch.com/ https://www.bulldogwinch.com/

Findings: The results of this search did not produce any new companies that would provide a direct replacement winch for the HEMTT that is 100% new and could be installed in the HEMTT without considerable time and effort to adapt the new components. Additionally, internet searches did not yield any products that meet the exact performance specs of the existing winch due to the lack of detailed technical data.

On 25 April 2024, the Contract Specialist conducted additional market research.

Specifically, they examined the Department of Defense (DOD) Commercial Item Determination Database (CID) for information related to the National Stock Number (NSN) 2590-01-572-0890. However, no records were found for this NSN in the database. It is important to note that although there is no formal commercial determination for NSN 2590-01-572-0890 in the database, there is compelling evidence suggesting the use of Federal Acquisition Regulation (FAR) Part 12 procedures in the previous procurement of the same product. This procurement took place under the contract SPRDL1-23-C-0026, which was officially awarded on 9 August 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 was posted to The System for Award Management on 24 April 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: SPRDL1-23-C-0026 Award Date: 27 January 2023 Contractor: Badger Truck Center, Inc. (CAGE 06YZ5) Contract Value: $496,070.88 Competitive Status: FAR 6.302-1 only one responsible source

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: Tactical Vehicle and Watercraft Sustainment Branch Chief

Signature:

7/25/2024

X

Signed by:

12. Requirement 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: Procurement Branch Chief Signature:

7/26/2024

X

Signed by: USA

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

This determination will be based on the results of a detailed cost and/or price analysis.

The contractor will not be required to submit certified cost or pricing data as this item has been determined to be a commercial product.

Name: Reinbolt, Adam R.

Title: Contracting Officer Signature:

7/31/2024

X Adam Reinbolt

Signed by: DLA

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

Name: Reinbolt, Adam R.

Title: Contracting Officer Signature:

7/31/2024

X Adam Reinbolt

Signed by: DLA