JA_SPRDL124R0158_Redacted.pdf

SPRDL1-24-R-0158 (JA-00825)

Previous J&A: SPRDL1-18-R-0596

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

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.

This axle assembly is manufactured solely by Oshkosh and the company owns all the data rights. Only Oshkosh has the specific technical expertise and proper facilities to manufacture this axle assembly. Additionally, Oshkosh has a history of building axle assemblies which allow the HEMTT to perform its mission. Oshkosh has manufactured axle assemblies that have successfully operated in the field and have met all mobility requirements outlined in the Army Technical Purchase Description. Unlike other commercially produced axles, this axle assembly has been designed specifically for use on the HEMTT. If the Government were to purchase axle assemblies 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 axle assembly would not fit or function properly, which could result in failure, jeopardizing mission capability and fleet mobility.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in reverse engineering the item to create a competitive Technical Data Package (TDP) or qualify additional source(s) within a reasonable time frame. At the current average usage rate of 20 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 $3,800,000 cost of reverse engineering the item and validating a competitive TDP or qualifying another source.

Since the Government does not own any of the technical data, the Government would have to reverse engineer this assembly to identify all aspects of the unit. A reverse engineering effort would include work to clarify and define an axle assembly with the same fit, form, and function as the original, then design the new axle assembly and develop a prototype. 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 introduce a high risk of premature failures of the axle assembly in the field. Premature failures of the axle would result in mobility failure which could jeopardize the Army’s mission in a potentially adverse operational environment. After the design validation, the TDP would have to be built so the part could be competitively sourced.

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: A Sources Sought Notice was posted to SAM.gov from 15 July 2024 to and was open for 16 days. One response was received, with the assessment of the response below:

BHPE LLC (CAGE 9SWS7) responded on 16 July 2024 expressing interest in becoming a source for this requirement. The contract specialist informed BHPE LLC on 22 July 2022 that they could contact the Competition Management Office to apply to become an additional source through the Source Approval Program (SAP). The contract specialist provided the point of contact for the SAP to the vendor.

The GVSC Heavy Tactical Vehicle Sustainment Engineer performed the following internet searches on 16 May 2024 to find suitable competition for the Oshkosh Driving Automotive Axle Assembly.

Keywords: Axle assembly, heavy-duty axle assembly, driving automotive axle assembly, axle manufacturers.

Websites:

https://www.dormanproducts.com/automotive/parts https://spicerparts.com/parts/axle/commercial/axle-carriers-for-medium-duty-and-heavy-duty-applications https://www.detroitaxle.com https://global.dana.com/commercial-vehicles/products/driveline/drive-axles#searchRootId=1cc6c5e8-d343-4928-8f69- 4078e55a8865/facets= https://www.axletech.com/en/products/axles https://www.meritor.com/products/axles/ https://www.aam.com American Axle & Manufacturing, Inc.

Axles offered by AxleTech, Meritor, Detroit Axle, Dorman Products, and Dana/Spicer were reviewed. In summary, there is not enough information to determine whether these items will fit the HEMTT in the same manner as the original equipment manufacturer (OEM) sole-source part. Due to the lack of a TDP or in-depth specifications of the sole-source part, the validity of these researched axles for this procurement is extremely difficult to ensure.

Although several manufacturers make products that appear to be similar to the axle used on the HEMTT, the lack of a TDP or detailed drawings for the HEMTT axle prohibit the engineer from knowing the exact specifications that must be met by a potential alternative. Similar features offered by other axles include load rating, compatibility with 8x8 suspension systems, and length. However, the current axle 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 in the field, such as negative impacts to vehicle safety and operational readiness. Therefore, it can be concluded that this axle assembly is custom for the application and must be identified as a sole-source item.

DLA-WRN research indicates that many dealers and distributors are prepared to quote interested parties for this NSN manufactured by Oshkosh. Gov Plant, a surplus vendor, recently conducted an online auction for an unused axle assembly with this NSN.

Additionally, the most recent purchase of this type of assembly was conducted as a commercial item purchase. As a result, this assembly is determined to be commercial in nature.

9. Interested Sources: One vendor responded to the Sources Sought Notice posted on SAM.gov and was determined unacceptable for this procurement. See the Market Research in Section 8 for the vendor inquiry details.

Other Facts: Procurement History:

Contract SPRDL1-19-D-0138 Award Date: 2 August 2019 Contractor: Oshkosh Defense LLC, CAGE Code: 75Q65 Maximum Five-Year Value: $1,767,798.79 Competitive Status: Sole-Source Authority: FAR 6.302-1, Only One Responsible Source

Contract SPRDL1-10-C-0018 Award Date: 23 December 2009 Contractor: Oshkosh Corporation, CAGE Code: 45152 Contract Value: $2,127,450 Competitive Status: Sole-Source Authority: 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.