JA SPRDL1-25-R-0110_Redacted.pdf

SPRDL1-25-R-0110 (JA-01005)

Previous J&A: SPRDL1-18-R-0269

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-25-R-0110

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

2. Description of Action: DLA-WRN proposes to award a new Firm-Fixed-Price (FFP) contract to an offeror providing the product of Grove U.S. LLC, Commercial and Government Entity (CAGE) 12361, for National Stock Number (NSN) 3010-01-354- 9233, Speed Decreaser Gear Assembly, using Army Working Capital Funds.

3. Description of Supplies/Services: The NSN 3010-01-354-9233, part number 6- 734-000131, Speed Decreaser Gear Assembly is used on the Heavy Expanded Mobility Tactical Truck (HEMTT) vehicle and Palletized Loading Systems (PLS) with the function of decreasing the speed from the driver(s) to the driven shaft(s). The deliverable for this FFP contract is for a base quantity of 7 each, with an option quantity of 7 each, for a combined total quantity of 14 each. The total estimated 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):

D - The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMC's 3, 4, or 5 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 FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

The Speed Reducer Gear Assembly is part of a Material Handling Crane mounted on the HEMTT M984A4 and M985A4 and PLS A1. The Speed Reducer Gear Assembly is a series of gears that reduces Crane Motor rotation speed and increases output torque.

The HEMTT and PLS Material Handling Crane capacity is 14,000 pounds (lbs.) at nine feet, and only Grove U.S. L.L.C has provided this specific Speed Reducer Gear Assembly to meet the crane capacity.

The Government does not own technical data or the rights to the data needed to purchase the part from additional sources. Grove U.S. L.L.C used the company’s resources to design and test the actuating Speed Reducer Gear Assembly used on Material Handling Crane for the HEMTT M984A4 and M985A4 and PLS A1. Grove U.S.

L.L.C passed all Government required qualification tests including performance, reliability, and durability tests. The HEMTT and PLS crane capacity is 14,000 lbs. at nine feet, and only Grove U.S. L.L.C has provided this specific Speed Reducer to meet the Crane capacity. If an effort was made to procure this item competitively, and all proper testing and validation procedures were not followed, there would be an increased risk of premature failure of this item in the field, which could result in an extensive loss of the vehicle’s equipment by damaging the structural frame, vehicle crane, mating components, or the vehicle itself. Based on the above, Grove U.S. L.L.C is the only source of supply capable of providing the validated and tested Speed Reducer Gear Assembly for the HEMTT M984A4 and M985A4 and PLS A1.

Due to the lack of technical data available, reverse engineering is the only recourse the Government could entertain to increase competition through the development of a competitive set of technical data. The development of a fully competitive Technical Data Package (TDP) for this part would involve reverse engineering by obtaining Speed Reducer Gear Assembly samples, bench testing capacities and pressures, breaking them down to each individual component, scanning/measuring each part for dimensions, and performing material analysis to create a technical data package with performance criteria.

Using estimates provided by similar HEMTT and PLS Speed Reducer Gear Assembly reverse engineering studies, 18 months and $2,000,000 is required for reverse engineering processes. Design validation testing which includes material tests, form, fit, function tests, and performance and reliability tests within the HEMTT and PLS to ensure that the reverse engineered design meets requirements will cost $1,000,000 and 12 months. $200,000 and 6 months is required for the generation of a competitive TDP.

In total, $3,200,000 and 36 months will be required to reverse engineer and develop a validated, competitive TDP.

Using the average monthly demand of one, the yearly usage rate is 12 units per year. At a unit cost of , and assuming a 25% savings achieved through competition, the annual savings would take years to offset the estimated $3,200,000 cost of reverse engineering the part and validating the TDP. The Government would not be able to recover, through subsequent competition, the duplication of cost involved in procuring the data or reverse engineering to increase competition in a reasonable amount of time.

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. 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. There are no contractors currently in the process of being qualified as an alternate source of supply for this item. At this time, there are no current or future efforts to qualify additional sources because the Government does not possess a fully defined and verified TDP for the part. Grove U.S.

L.L.C (CAGE 12361), owns the technical data regarding this part.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 2025-02-21 was open for 15 days. No responses were received.

Sources Sought Notice NSN: 3010-01-354-9233 Item Name: Speed Reducer Gear Assembly

NSN: 3010-01-354-9233

Part No: 6-734-000131 Quantity: 7, option 7 End Item: HEMTT M984A4, HEMTT M985A4 and PLS A1

Grove U.S. L.L.C supplies the Speed Reducer Gear Assembly for HEMTT M984A4, HEMTT M985A4 and PLS A1. The HEMTT and PLS crane capacity is 14,000 lbs. at 9 feet, and the Grove U.S. L.L.C Speed Reducer Gear Assembly is the only Speed Reducer to have met performance requirements as part of the overall Crane. No specific capacities or ratings are provided for the Speed Reducer Gear Assembly that make up the crane. Based on the lack of technical data for the Speed Reducer Gear Assembly in the crane, there is not enough technical information available to properly verify any other offeror would meet the same form, fit, and function. Integrating an unverified Speed Reducer would likely result in the HEMTT and PLS systems not running smoothly, safely, and cost-effectively. Crane components are considered critical safety items.

There is not enough technical information available for the Speed Reducer Gear Assembly. Per WebFLIS, Grove is the source, and Grove sells the part. The Government verified with Grove U.S. L.L.C that they are the source for part number 6- 734-000131.