JA_SPRDL125R0177_Redacted__Redacted.pdf

SPRDL1-25-R-0177 (JA-01062)

Previous J&A: N/A

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-25-R-0177

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

2. Description of Action: DLA proposes to award a new Firm-Fixed-Price contract to an offeror providing the product of Oshkosh Defense LLC, Commercial and Government Entity 75Q65, for National Stock Number (NSN) 2520-01-366-3318, Axle Assembly, Automotive, Driving, using Army Working Capital Funds.

3. Description of Supplies/Services: The NSN 2520-01-366-3318, part number 1837410 U / 12439164, Axle Assembly, Automotive, Driving, is used on the Palletized Loading System (PLS) M1074-M1077; it’s a device suspended between and connecting opposite wheels, it supports the weight of a vehicle, and consists of the housing and axles, and may include the driving differential mechanism. The deliverable for this contract is for a base quantity of five each, with an option quantity of five each, making a total quantity of 10 each. The total maximum value of this contract is $

Acquisition Method Code:

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

Acquisition Method Suffix Code:

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 Federal Acquisition Regulation (FAR) 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition.

5. Reason for Authority Cited: This axle is the rear drive axle on the Oshkosh

Defense PLS M1074 - M0177. Axles are identified by characteristics such as weight rating and wheel end hardware, as well as interfaces with suspension and wheel-tire assemblies. They help transfer power generated by the engine to the wheels and carry vehicle loads. The wheels are mounted to the axle assembly, providing mobility to the vehicle.

Oshkosh developed the system-level requirements for the drive train system and possesses details regarding the design intent of this component. The performance characteristics, mounting details, materials, components, specifications, and certifications of this component are unknown. The Government does not have rights to the technical data package (TDP) or specifications to enable competitive re-procurement. Only Oshkosh has the specific technical expertise and proper facilities to manufacture the axle. Additionally, Oshkosh has experience building axle assemblies that allow the PLS to perform its mission. Oshkosh has manufactured axle assemblies that have successfully operated in the field and have met all US Army mobility requirements. Unlike other commercially produced axles, this axle has been designed specifically for use on this vehicle. Oshkosh and the Government conducted developmental and operational testing during the vehicle’s design and initial production phases, which proved that Oshkosh could manufacture an axle that meets the Government’s performance and reliability, availability, and maintainability (RAM) requirements. If the Government were to purchase axle assemblies that have not undergone proper verification, Due to the lack of technical data available for the axle, Reverse Engineering (RE) is the only recourse for the Government to increase competition through development of a competitive build-to-print TDP. The Ground Vehicle Systems Center (GVSC) Heavy Tactical Vehicle Sustainment Team has estimated the effort that would be required to reverse engineer this axle based on conversations with Subject Matter Experts in RE, Test & Evaluation, and Quality Engineering. The RE process consists of procuring samples of the current part, tearing down the samples to understand and characterize the assembly’s components, dimensions, and materials, and designing the reverse engineered part. Several prototypes would need to be fabricated. The process to reverse engineer the part and fabricate prototypes would cost an estimated minimum of $ with a lead time of . $ would be used to procure samples, $ would be used to characterize the part and develop the new design, and $ would be used to fabricate prototypes. In addition, the prototype would have to undergo design validation and vehicle integration testing, which would cost an additional estimated minimum of $ with an additional lead time of . The prototype testing would consist of form, fit, and function testing, performance testing, RAM testing, accelerated life testing, cold and hot environment testing, salt spray testing, and maximum operational load testing. To procure this axle competitively, complete TDP would need to be developed, which would cost an estimated minimum of

$ with an additional lead time of . In total, RE, design validation, performance testing, and developing the TDP would require at least and an estimated minimum of $ . Neglecting design validation and integration testing would

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 TDP or qualify additional source(s) within a reasonable time frame. At the current average usage rate of , a current estimated unit price of $ and assuming 25% savings achieved through competition, the $ in annual savings would take to offset the estimated $ cost of reverse engineering the item and validating a competitive TDP or qualifying another source.

6. Efforts to Obtain Competition:

a. Effective competition: Due to the reasons cited in Section 5 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 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.

Due to the reasons cited in Section 5 above, the Government is not pursuing additional actions to increase competition for this item.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 24 April 2025, and was open for 14 days.

Commercial axles offered by Meritor, Rockwell, DANA/Spicer, GDLS, US Axle, Dexter Group, and Hendrickson were reviewed. There is not enough information to determine if these options will fit properly on this vehicle and operate in the same manner as the sole-source part. For this assembly, Oshkosh Defense purchases a commercial axle from a supplier but modifies it for military use. The modification, which involves adding components to increase performance and properly interface with military suspensions, is proprietary to Oshkosh and is not known by the Government. Additionally, a visual comparison of the axle from the US Army technical manual to the researched alternatives was conducted, none of the commercially available parts appear to be identical in mounting, size, or shape. Due to internal components, even a part that appeared the same externally could vary in performance, capability, or manufacturing.

Market research was conducted by the GVSC Heavy Tactical Vehicle Sustainment Team on 28 May 2025. Attempt was to find suitable competition for the Oshkosh Defense axle assembly. Axles are identified by characteristics such as weight rating and wheel end hardware, as well as interfaces with suspension and wheel/tire assemblies.

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 axles is difficult to evaluate. Other manufacturers offer similar axles, but the form, fit, and/or function of alternatives are not identical to the Oshkosh Defense part.

Keywords searched: axle assembly, military axle, HEMTT axle, heavy truck axle, PLS axle, MRAP axle, and driving axle assembly.

https://www.meritor.com/products/axles https://www.rockwellaxles.com/rockwell_axle_specs.htm https://spicerparts.com/parts?category=1 https://www.hendrickson-intl.com/search?ti=product&st=axle https://www.gdls.com https://usaxle.com https://www.dextergroup.com

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

10. Other Facts: Procurement History:

(1) Contract: SP0750-02-D-9720 Award Date: 06 January 2004 Contractor: Oshkosh Truck Corp Value: $6,851,000.00

(2) Contract: DAAE07-02-C-S034 Award Date: 17 January 2002 Contractor: Oshkosh Truck Corp Value: $484,096.56