T-9 EH Medium Dozer Contract Extension J and A_Redaction_Redacted.pdf

CMO Control Number: 2023-105

I&KPT 1 Lot = 2 Training classes)

1 Lot 1 Lot 0 2 Lots

Storage 120 Days (30

Dozers)

0 0 120 Days

Total

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code (U.S.C.) 3204(a)(1), as implemented in Federal Acquisition Regulation (FAR) 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." Specifically, FAR 6.302- 1(a)(2)(ii) “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 (B) Unacceptable delays in fulfilling the agency’s requirements”.

5. Reason for Authority Cited:

i. Background: CAT. is the Original Equipment Manufacturer (OEM) of the current Army T-9 EH Medium Dozer and owns both the Technical Data Package (TDP) and computer software package. The Government does not have the pertinent technical data and computer software or the necessary intellectual property data rights to the pertinent technical data and computer software to enable a competitive re-procurement. On 05 December 2022, the Government asked CAT. about purchasing the TDP, and in an email response on 05 December 2022, CAT stated: “Caterpillar is not willing to sell the Technical Data Package for the T-9 dozer as this information is proprietary and critical to Caterpillar’s commercial business.”

The Army Acquisition Objective (AAO) for the T-9 Medium Dozer is 1,711 with 1,271 vehicles procured thus far via the previous Dozer contract W56HZV-08-D- 0169 and the current contract W56HZV-21-D-0034. The proposed contract extension will provide an estimated 86 additional T-9 Medium Dozers that will reduce the current AAO shortage of 440 T-9 Medium Dozers to 354 T-9 EH Medium Dozers. Due to increased demands to meet the AAO requirements, additional machines are required.

ii. Unacceptable Delay: Award to any source other than CAT would result in undue delay to the Government. Timely supply of the T-9 EH Medium Dozers, related hardware, technical manuals and ancillary services depend on access to the

TDP.

6. Efforts to Obtain Competition:

a. Effective competition: Competition will not be pursued for this action for reasons stated in paragraph five above. In accordance with (IAW) FAR 5.201, this action will be synopsized on www.SAM.gov and all resulting bids and proposals received will be considered.

b. Subcontracting competition: CAT is a large business and will be required to submit a Small Business Subcontracting Plan for this modification IAW FAR 19.702(a)(1)(i). In addition, the contract includes, FAR clauses 52.219-9, Small Business Subcontracting Plan; 52.219-16, Liquidated Damages – Subcontracting Plan to ensure CAT competitively awards subcontracts to the maximum extent possible and Section L language, Submission of Subcontracting Plan; will be included in the solicitation. The proposed subcontracting plan will be reviewed and incorporated by reference into the contract upon issuance of the subject modification.

7. Actions to Increase Competition: A competitive action is only possible if the Government procures the T-9 EH Medium Dozer TDP and data rights to the pertinent TDP sufficient for a competitive re-procurement from CAT, or solicits sources of an alternate system to meet the performance specifications under ATPD 2371A. The Government does not plan to pursue either of those actions for this procurement because CAT refuses to offer the TDP for sale, and qualification of an alternate system would result in an unacceptable delay in meeting requirements for the T-9 EH Medium Dozer program. If any requirements for a new T-9 EH Medium Dozer arise the Government will assess competition in the marketplace at that time.

8. Market Research: Pursuant to FAR 10.002(b)(2), ACC-DTA posted a sources sought notice on www.SAM.gov on 18 April 2023, closing on 16 May 2023, to investigate the ability of existing contractors to support T-9 EH Medium Dozer program ATPD requirements. ACC-DTA received one response, from CAT.

i. CAT is the OEM for the T-9 Medium Dozer vehicles, related hardware and ancillary services. CAT also previously developed and provided logistics support package for the T-9 Medium Dozer, and developed the Operator and Maintainer training courses. CAT addressed every question in the Sources Sought Notice and no deficiencies were noted. CAT, has provided T-9 Medium Dozers, related hardware and ancillary services to the U.S. Government since 2008 and the EH variant since 2021. Based on this information, CAT is capable of meeting T-9 Medium Dozer program requirements per ATPD 2371A without increased risks or undue delay.

Based on the market research, the previous procurement and program knowledge, and the circumstances described in section five, a competitive effort would result in an unacceptable delay.

9. Interested Sources: To date, no other sources other than CAT, as described in paragraph 8 above, have written to express an interest in this effort.

10. Other Facts:

a. Procurement History:

1. Contract Numbers and Dates:

FFP Requirements Contract W56HZV-08-D-0169 was awarded on 06 June 2008 for T-9 Medium Dozers.

FFP Requirements Contract W56HZV-21-D-0034 was awarded on 31 March 2021 for T-9 EH Medium Dozers.

a. Competitive status: Contract W56HZV-08-D-0169 was awarded through full and open competition. Contract W56HZV-21-D-0034 was awarded on a sole-source basis to CAT.

2. Authority previously cited if less than full and open competition was used: FAR 6.302-1, “Only One Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements” was the authority used in the previous J&A supporting the award of Contract W56HZV-21-D-0034.

3. Summary of Paragraph 7 of the previous J&A for Contract W56HZV-21-D-0034 states, “A competitive action is only possible if the Government procures the T-9 Medium Dozer TDP from CAT or solicits sources of an alternate system to meet the performance specifications under ATPD 2371A. The Government does not plan to pursue either of those actions for this procurement because CAT refuses to offer the TDP for sale, and qualification of an alternate system would result in substantial duplication of cost in meeting requirements for the T-9 Medium Dozer program”. Since award on 29 March 2021, the Government has procured T-9 Dozers from CAT The contractor has delivered without issues.

4. Explanation of the changed circumstances causing this action to now limit the sources: Only the initial production contract, W56HZV-08-D-0169, was awarded utilizing full and open competition, but the prior award of contract W56HZV-21-D- 0034 for the T-9 Dozer program was sole source to CAT Per paragraph 5 above, competing this effort would result in an unacceptable delay to the Government.

5. There are no unusual patterns revealed by the procurement history.

6. The circumstances for the current contract have not changed and further support of sole source contract action to extend the contract up to three years. CAT as the OEM for the subject vehicle types, retains the technical data, Technical TDP and computer software package necessary to produce the required T-9 EH Medium Dozers.

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: //signed// DATE: 8AUG23

DENYADA L. BARNES

Lieutenant Colonel, SC Product Manager, Engineer, Maintenance & Support Equipment (EMSE)

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: //signed// DATE: 9 August 2023

KYLE M. BRUNER

Project Manager, Force Projection

13. Fair and Reasonable Cost/Price Determination: The negotiated price will be determined fair and reasonable through a price analysis to ensure that the price agreement is consistent with the IGE. ACC-DTA has a dedicated Pricing Division with trained Price Analysts who will assist the Contracting Officer by performing the Price analysis. PdM EMSE will also support this analysis with a technical review. The Contracting Officer will request that engineers or similar personnel familiar with the hardware and services ensure that what is proposed is fair and reasonable. The ACC- DTA Price Analyst will use the recommendations contained in the PdM EMSE engineering technical report to develop a recommended negotiating position. Certified Cost or Pricing Data will not be required however, data other than Certified Cost or Pricing Data will be requested from the contractor to the extent necessary to determine a fair and reasonable price. ACC-DTA will document the results of negotiations, and the detailed Price Fair and Reasonable determination from the Contracting Officer, in a Price Negotiation Memorandum (PNM) that ACC-DTA senior Contracting personnel within the Pricing Division will review and concur upon.

I hereby determine that the final negotiated price to the Government for this contract action will be fair and reasonable in accordance with FAR 15.403 and FAR 15.404.

Signature: //signed// DATE: 31 August 2023

CARRIE L. ENGLISH

Contracting Officer, Army Contracting Command – Detroit Arsenal

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

Signature: //signed// DATE: 31 August 2023

CARRIE L. ENGLISH

Contracting Officer, Army Contracting Command – Detroit Arsenal