4.1 JA_CUI-Revisedv2 SPE7L422R0004.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L422R0004

Controlled by: DLA Land and Maritime Controlled by: [IPV Contracting Support Branch (FLSCB)]

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC: [michele.beasley@dla.mil]

DLA Land & Maritime Justification for Other Than Full & Open Competition (December 2021)

CUI

[ X ] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN ADQ ANNUAL DEMAND

VALUE

AMSC

COMPLETE AXLE ASSEMBLY 2530-01-577-4606 223 3C

*If too numerous, attach list of NSNs and AMSC codes

Identify end item, weapon system, or class of item: AN/TSQ-108A. The AN/TSQ-108A Radar Sonar Surveillance Center (RSSC) van which is used as a command center. The sensors, located in and on the RSSC include a SPS-64 radar and a AN/SQR-17A for sonar buoy processing.

located in and on the RSSC include a SPS-64 radar and a AN/SQR-17A for sonar buoy processing.

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTION):

MAXIMUM CONTRACT VALUE:

SOLICITATION SPE7L422R0004

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

4. The statutory authority permitting other than full and open competition is:

[ X ] 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

[ ] 10 U.S.C. 2304(c)(2) - Urgency.

[ ] 10 U.S.C. 2304(c) - _____________________________________________________________.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

_____ SCHUTT INDUSTRIES OF CLINTONVILLE CAGE: 1CSL0_____________

The use of the authority cited below:

[ X ] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[ X ] AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

Available from only one or a limited number of sources. At this time, there is one approved manufacturing source:

SCHUTT INDUSTRIES OF CLINTONVILLE CAGE (1CSL0) P/N 1162771. Schutt Industries is a Small Business concern.

The sources listed in the table below, confirmed by the DLA Land and Maritime Quality Product Specialist on June 10, 2022 (Matthew Krile, Anders Peterson) that this part requires engineering source approval by the design control activity in order to maintain the quality of the part. An alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant Government engineering activity. In the Technical Data Supporting Limited Sourcing area, PS stated the following: “DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source.

The data presently available reflects the minimum needs of the Government and there is no outstanding DLA Form 339 request for additional sources.”

SCHUTT INDUSTRIES OF CLINTONVILLE CAGE (1CSL0) is the only source that possesses the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function and quality. The Government either has no data, inadequate data, and/or lacks rights to the data needed to

SOLICITATION SPE7L422R0004

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

acquire this part from additional manufacturing sources. At this time, only the source listed possesses the complete data and rights to the data.

Source:

NSN Description Approved

CAGE

Company Name Approved Part

Number

2530-01-577-4606 COMPLETE AXLE

ASSEMBLY 1CSL0

SCHUTT INDUSTRIES

OF CLINTONVILLE

CAGE (1CSL0)

1162771

Efforts to ensure that offers are solicited from as many sources as practicable are:

[ X ] The acquisition will be synopsized on SAM.gov 15 days prior to the solicitations opening date and will be available on SAM.gov while the solicitation is open instructing bidders where to find the solicitation which will be open 30 days via the DLA Internet Bid Board System (DIBBS). __________.

[ ] Dealers of the manufacturers will be solicited.

[ x ] Other. (Explain)___Sources Sought notice discussed further under Paragraph. 8.___________________ .

I hereby determine that the anticipated cost to the Government will be fair and reasonable. A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. The total value of this acquisition is greater than $2,000,000 threshold for Certified Cost or Pricing Data. (CCPD).

Therefore CCPD will be required for this acquisition unless adequate competition is received in response to the solicitation per 15.403-1(b)(1)."

Market Research/Efforts to Obtain Competition:

Market Research/Efforts to Obtain Competition included: Researching items on-line via the internet for availability, commerciality, and features. Pulling previous procurements of items and determining previous acquisition methods. Determining vendor interest in long-term contracting for the items. Researching/gathering info regarding commerciality of the items. Vendor size and business status information. Delivery. Base year and option years; optimal lengths, and possible price/cost advantages.

Market research consisted of review of past procurements, market surveys received from interested parties, and internet sources. Market Research efforts show that this item has been purchased multiple times by DLA and has a relatively stable pricing history. Market research began with the analysis of prior procurements and their respective acquisition strategies. Market research was conducted to determine the commerciality of this item.

Market Research has indicated this is not commercial. The item is only available from the one approved source as identified above. Searches on the internet yielded no useful information on the P/N or pricing information and also did not identify any additional manufacturing sources. After complete review of the evidence, including market

SOLICITATION SPE7L422R0004

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

research, previous procurements, and indication by the OEM, the contracting officer has made the determination that the NSN on this solicitation is non-commercial and will be solicited under FAR Part 15.

Procurement History:

A Sources Sought Notice was posted to SAM.gov on June 1, 2022 for this specific item. The posting remained open until June 8, 2022. Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the acquisition specialist listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return. Potential sources would be added to the solicitation mailing list. There were no interested parties as a result of this sources sought notice.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

[ x ] A market survey was conducted on/during __June 1, 2022______.

Total number of vendors contacted: ___1 manufacturer.

Names of vendors contacted and responding:

o Names of Vendors Contacted:

• SCHUTT INDUSTRIES OF CLINTONVILLE CAGE (1CSL0) Small business manufacturer and OEM.

Techniques used to conduct survey: __E-mailed correspondence and spreadsheet. ______________________.

Types of information requested: ___Business size, manufacturer or dealer, price breaks, commerciality, estimated delivery and quantity sensitivity. ________________________.

Summary of information received: Name of vendor and summary of information Received:

Schutt Industries (1CSL0) Small – In the market survey, Schutt advised they are the manufacturer for this item. Schutt also advised this item has not been determined commercial and have no knowledge of a similar item sold in the commercial market

SOLICITATION SPE7L422R0004

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

place. Schutt advised they are interested in pursuing an IDC, but not for a three-year based or option years. Lastly, Schutt advised there is not a minimum buy for this item. Schutt provided a delivery estimate of 445 days ARO.

Information received regarding the commerciality of the item(s):

Commerciality:

The Product Specialist stated that this item Commercial.

When asked what the truly essential characteristics of this NSN item are, the Product Specialist stated the following: Axle for a trailer

When asked why no other commercial item can meet these essential requirements, the Product Specialist stated the following: Cage 1CSL0 is the OEM, would need data package of material

When asked when the last time the technical team researched availability of alternative options, the Product Specialist advised material was reviewed in 2016 and then recommended for LTC in 2020. Notes do not reflect other review.

In regards to Brand Name or Equal specification based on salient characteristics readily available in the commercial marketplace, the Product Specialist stated the following: USG does not have the data package for this item. CAGE 1CSL0 is the OEM.

In regards to how the NSN is different from other commercially available items e.g. unique characteristics to ensure the safe, dependable, and effective operation of military equipment (reliability/durability), weapon system coded, critical item of supply, the Product Specialist stated the following: Item is weapon system coded to 48M essentiality 1, C7N essentiality 1 and GMA. In addition, contacted the PS for verification from the OEM on determining this item as commercial. PS, Anders Peterson provided the following response: “Good morning, I am not seeing notes in Material master from when I contacted Schutt Industries in Material master, I don’t think it saved correctly. I emailed terry@schuttindustries.com on 06/01/2022 for a part inquiry on this NIIN, I did not hear back and remember calling them

(715) 823-8025. I spoke with the parts team who advised this axle is available to the DOD and to the public.”

Due to information obtained from the market survey (Schutt Industries’responses) and product specialist responses the contracting officer hereby determines this item to be “non-commercial”.

SOLICITATION SPE7L422R0004

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

9. Additional facts supporting other than full and open competition are:

[ X ] Based upon the attached technical certification, technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

[ x ] Other: (Explain)___ During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and DLA Land and Maritime Product Specialist for review; no additional sources were identified during those reviews._______.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Schutt Industries (1CSL0) interested in this acquisition based on response in market survey.

11. The following actions are being taken to identify additional sources:

[ x ] The Solicitation contains DLA Procurement Notes L04 Offers for Part Numbered Items and M06 Evaluation of Offers for Part Numbered Items

12. Procurement history show only under SAT buys and J&A’s were not required.

SOLICITATION SPE7L422R0004

DLA Land & Maritime Justification for Other Than Full & Open Competition

(November 2021)

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[ x ] $750,000 to $15,000,000 Competition Advocate

Attachment(s):

#1 – Tech Referral Commercial inquiry #2 – Tech Certification

COTTONGIM.KEL

LY.E.1230104111

Digitally signed by

COTTONGIM.KELLY.E.1230104

Date: 2022.09.14 07:14:14 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.09.22 14:04:36 -04'00'

Matthew Krile

Reference

Project CL21245001

NSN 2530-01-577-4606

Good morning Matthew, I am in the process of soliciting this item as “commercial of a type” for a 5-year IDC for this item.

In order to solicit this correctly, please provide responses for the following:

1. Is the AMC/AMSC correct as 3C?

2. Is this item commercial or commercial of a type?

3. What are the truly essential characteristics of the NSN item?

4. How are these characteristics essential to the end user?

5. Why can no other commercial item meet these essential requirements?

6. When was the last time the technical team researched availability of alternative options (e.g., technical review, breakout screening)?

7. Explain why the government cannot pursue a Brand Name or Equal specification based on salient characteristics that are readily available in the commercial marketplace.

8. How the required NSN item is different from other commercially available items e.g. unique characteristics to ensure the safe dependable, and effective operation of military equipment(reliability/durability), weapon system coded, critical item of supply?

9. Describe any differences between the required NSN item and its commercial equivalent (e.g., same part number but additional Military quality requirements).

Thanks. Michele Beasley 614-692-7572