CL19308005 JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

LONG TERM CONTRACT (LTC) PROJECT CL19308005

SOLICITATION SPE7LX-20-R-0058

FEBRUARY 27, 2020

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

ORIGINAL

1. Defense Logistics Agency (DLA) Land and Maritime (L&M) is the contracting activity.

2. The action being approved is the acquisition of supplies on an Other than Full and Open (Unrestricted) competition basis. The part in this initiative has been determined commercial and will be procured under Federal Acquisition Regulations (FAR) Part 12 – Acquisition of Commercial Items procedures.

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

This solicitation is for four (4) National Stock Numbers (NSNs):

Explanation of Chart Column Header Names and Descriptions:

CLIN: Contract Line Item Number NSN: National Stock Number CAGE: Commercial and Government Entity P/N: Part Number U/I: Unit of Issue

EA = Each AMC: Acquisition Method Code AMSC: Acquisition Method Suffix Code PIC: Place of Inspection Code

2 = Inspection/Acceptance at Destination QCC: Quality Control Code - DAF

First Position: D = Standard Inspection Second Position: A = No Quality Subsystem Requirements Third Position: F = Shelf Life – Deposit Storage Standard Actions

NAICS: North American Industry Classification System Codes 326211 Tire Manufacturing (except Retreading)

WSDC: Weapon System Designator Code:

CLIN 0001: 19F Aircraft, Eagle F-15 (Note: this is a ground tire, used on equipment to support the Eagle F-15) CLIN 0002: YEA Palletized Loading System CLIN 0003: No code listed

CLIN NSN Item Approved Source(s) CAGE Size Approved P/N(s) U/I AMC AMSC PIC QCC NAICS WSDC 0001 2610-01-311-6853 Tire, Pneumatic Michelin North America 12195 Large 09807 EA 3 D 2 DAF 326211 19F

Bridgestone Americas Tire 22337 Large 240623 or 004168 Continental Tire the Americas 73808 Large 0211203

Goodyear Tire Rubber Company 04NP3 Large 756-254-420

0002 2610-01-357-8333 Tire, Pneumatic Michelin North America 12195 Large 04852 EA 1 C 2 DAF 326211 YEA Oshkosh Defense 75Q65 Large 1867270

0003 2610-01-554-1191 Tire, Pneumatic Michelin North America 12195 Large 30097 or 39675 EA 3 D 2 DAF 326211 Terex American Crane Corp. 49185 Large 60459340

0004 2610-01-660-5812 Tire, Pneumatic Continental Tire the Americas 73808 Large 0523028 EA 3 D 2 DAF 326211 K6A

CLIN 0004: K6A Tractor Line Haul The scope of this solicitation, and resulting contract(s), is Global Tire Program (GTP)

Integrator and Government supply support for the four (4) tire NSNs, as listed in Solicitation SPE7LX-20-R-0058 Attachment B-2 (Pricing and Delivery Spreadsheet).

The GTP Integrator, Science Applications International Corporation (SAIC), is authorized and required to place orders under the LTC Vendors' contracts. Orders shall be placed by the GTP Integrator directly to the Government-designated LTC Vendor source for each NSN, as needed. The LTC Vendor shall fill the GTP Integrator orders at the price and delivery terms in the LTC Vendor's contract.The proposed action is for the solicitation and award of a three (3) year, firm fixed price, Long Term Contract (LTC), to include three (3) base years, with no option years.

The Federal Supply Class (FSC) for these items is 2610 - Tires and Tubes, Pneumatic, Except Aircraft.

The solicitation values for these NSNs are shown in the chart below:

The Annual Demand Value (ADV) for this acquisition project is $ , with a three-year total value of . The ADV is based upon the value found in the REC_ MAX_VALUE_1YR field from the Max-Out Values tab of the project data pull, as supplied by the Sourcing Strategy Specialist on 01/31/20.

Contract minimum and maximum values will be used within the solicitation, and are for the life of the contract. The contract maximum amount is , which is calculated by multiplying the ADV of the acquisition by 5. This will allow for any unexpected surges in demand through the life of the contract. The total guaranteed minimum for this acquisition is which is calculated as the ADV * 0.01. The contract minimum will be held in reserve by the Government.

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

10 U.S.C. 2304(c)(1) o (c) The head of an agency may use procedures other than competitive procedures only when— o (1) the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

Inventory Control Point

(ICP)

CLIN

National Stock Number (NSN)

Estimated Total Base

Year 1

(ADV)

Estimated 3 Year Contract Value

(ADV * 3)

Contract Maximum

(ADV * 5)

Contract Minimum

(ADV * 0.01)

DLA Land & Maritime 0001 2610-01-311-6853 DLA Land & Maritime 0002 2610-01-357-8333 DLA Land & Maritime 0003 2610-01-554-1191 DLA Land & Maritime 0004 2610-01-660-5812

Totals

The Government requires spare parts that are form, fit and functionally interchangeable with those currently used on the supported weapon system. The Product Specialist for tires, Joseph Cocanour, was contacted on 02/7/20, regarding these tires, and he states that “All weapon system coded 2610 tires require GVSC (formerly TARDEC) source approval”.

There are no known pending source approval requests with Engineering Support Activities (ESA) for these tires.

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

The use of the authority cited is based on:

Acquisition Method Code (AMC) 1: Suitable for competitive acquisition for the second or subsequent time.

Acquisition Method Code (AMC) 3: Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (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.

CLIN NSN Approved Source(s) CAGE Approved P/N(s) AMC AMSC 0001 2610-01-311-6853 Michelin North America 12195 09807 3 D

Bridgestone Americas Tire 22337 240623 or 004168 Continental Tire the Americas 73808 0211203

Goodyear Tire Rubber Company 04NP3 756-254-420

0002 2610-01-357-8333 Michelin North America 12195 04852 1 C Oshkosh Defense 75Q65 1867270

0003 2610-01-554-1191 Michelin North America 12195 30097 or 39675 3 D Terex American Crane Corp. 49185 60459340

0004 2610-01-660-5812 Continental Tire the Americas 73808 0523028 3 D o For the item coded AMSC C, only the approved sources listed in the chart above retain the data rights, manufacturing knowledge, or technical data that are essential to maintaining the quality of this part.

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. AMCS 3, 4, or 5 are valid.

o For the items coded AMSC D, only the approved sources listed in the chart above retain the data necessary to manufacture this part

, the Product Specialist for Tires at DLA L&M, completed a technical review for these tires, stating that “A complete tech review was completed on all subject LTC NSNs on 09 Dec 2019 and is annotated in the material master internal comments for each NSN.

The tech data, AMC/AMSC codes and approved sources were reviewed and certified as complete and accurate.”

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

Market research efforts are detailed in Section 8.

A Sources Sought notice, which included a market survey, was posted on the beta.SAM.GOV web site from 12/10/19 through 12/19/19, with no responses received.

This acquisition will be solicited using Federal Acquisition Regulation (FAR) Part 12 –

Acquisition of Commercial Items guidelines. The synopsis will be posted on the beta.SAM.GOV web site, and will run for a period of 15 days.

On the day immediately following the close of the synopsis, the solicitation will be posted on the internet, via the DLA Internet Bid Board System (DIBBS). The solicitation will run for a period of 30 days.

On the day that the solicitation is posted to DIBBS, copies of the solicitation will be e-mailed to all approved sources for these tires, as well as to those suppliers indicating an interest during market research.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

This will be a three (3) year, Firm Fixed Price, long-term, Indefinite Delivery Contract (IDC). The time frame consists of three (3) base years, with no option years.

As this is a commercial solicitation, Certified Cost or Pricing Data (CCPD) is not required.

The price analysis of historical contracts, as well as current and future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast data is provided by the DLA L&M Pricing Support group, and provides timely, accurate price & cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

Based upon the above techniques to be used, the Contracting Officer hereby anticipates costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for these NSNs.

o Researching/gathering information regarding commerciality of the items.

o Vendor size and business status information.

o Delivery estimates.

o Distributor/dealer involvement.

Summary of market research:

o In addition to posting a Sources Sought notice, a copy of the market survey was also e-mailed on 12/11/19 to the tire offerors listed below:

Anthony E. Balser LLC (CAGE 5CAZ4) Bridgestone Americas (CAGE 073A9) Bridgestone Americas DBA GCR (CAGE 22337) Colony Tires Corporation (CAGE 7W3F5) Continental Tire Americas (CAGE 73808) Goodyear Tires & Rubber Company (CAGE 04NP3) Michelin North America (CAGE 12195) Oshkosh Defense (CAGE 75Q65) Pomp’s Tire Service (CAGE 1T1Z4) Southern Tire Mart (CAGE 3RRT3) Specialty Tires of America (CAGE 66798) Terex American Crane Corporation (CAGE 49185)

Responses to the request for market research information were received from five (5) of the suppliers contacted. Their responses are summarized below:

o (5CAZ4) Small Dealer

Interest in all 4 NSNs (would quote

Tires are commercial (confirmed with , as he showed non-commercial on survey but commercial on spreadsheet) o Bridgestone DBA GCR (073A9) – – Large Dealer o Goodyear Tire and Rubber (04NP3) – – Large Manufacturer

Tire is commercial o Pomp’s Tire Service (1T1Z4) – – Large Dealer Interested in all 4 NSNs (would quote

Indicates tires are commercial o Michelin (12195) – – Large Manufacturer

Indicates tires are commercial

Information received regarding the commerciality of the item:

o Commerciality was investigated using several different techniques. The tires on this solicitation are used on land vehicles. While commercial tires may be manufactured to different specifications, there is no evidence that those specification differences are so substantial as to render the military version unsuitable and unavailable for commercial purposes. The definition of Commercial, as found in FAR Subpart 2.101, states "Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purpose."

In general, tires used by the military are "of a type", when compared to a specific similar tire used commercially. The difference may simply be the size, or perhaps a more stringent specification but, nevertheless, these NSNs meet the definition of commercial. During a pre-solicitation review of the NSNs included in this project, the Product Specialist for tires stated that “All of these are Commercial of a Type”.

In addition to independent research, the Acquisition Specialist conducted market research analysis, I/A/W FAR 12.1, by submitting a market survey to industry (tire manufacturers and distributors). The survey asked whether these NSNs constituted a commercial item, as defined in FAR 2.101. In their market survey responses, , Goodyear Tire and Rubber, Pomp’s Tire Service, and Michelin North America have all indicated that these tires are commercial.

A Google search on 02/27/20 found the following approved tires on commercial web sites:

CLIN 0001:

Michelin 09807 https://www.speedytire.com/tires/michelin/x-line-energy-z-coach/315-80r225- 09807 $739.20 https://www.otrusa.com/product/315-80r22-5-20pr-l-michelin-x-lez/ $891.04

CLIN 0003:

Michelin 30097 https://www.otrusa.com/product/44595r25-michelin-x-crane-174f-tl/ $2,995.00

GSA Advantage was reviewed on 02/19/20, but none of the approved tires were found.

Tire manufacturers make both commercial and non-commercial tires, thus further solidifying the “of a type” application herein. Accordingly, the acquisition specialist is able to conclude that the tires subject to this requirement fall under the FAR commerciality definition “of a type” language, referenced above.

Therefore, this acquisition will proceed in accordance with the procedures of FAR Part 12 – Acquisition of Commercial Items.

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

Based upon the technical certification on file in DLA L&M-VEP, technical data is not available to the Government, and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

The NSNs included in this solicitation were reviewed by the Product Specialist for tires, during the project development phase, where he stated that “All weapon system coded 2610 tires require GVSC (formerly TARDEC) source approval”.

10. A listing of sources, if any, indicating an interest in the acquisition:

Anthony E. Balser LLC (CAGE 5CAZ4); CLINs 0001, 0002, 0003, 0004 Bridgestone DBA GCR (CAGE 073A9); CLIN 0001 Goodyear Tire and Rubber (CAGE 04NP3); CLIN 0001 Michelin North America (CAGE 12195) CLINs 0001, 0002, 0003 Pomp’s Tire Service (CAGE 1T1Z4); CLINs 0001, 0002, 0003, 0004

11. This item is subject to the following methods of locating additional sources:

Procurement History: CLINs 0001, 0002 and 0003 were most recently awarded to Michelin North America (CAGE 12195), on long-term contract SPE7LX-19-D-0077, dated 1/25/19. Although this contract was expected to last for three years, unexpected increased demand will cause it to max out in 2020, creating the need for a new solicitation and contract.

A review of the J&A (see Attachment 1) for solicitation SPE7LX-18-R-0112 / contract SPE7LX-19-D-0077, found that a Sources Sought notice was posted to FedBizOps, as well as to the GTP web site. In addition, a market survey was sent to 31 tire suppliers.

After market research was completed, the acquisition was synopsized on FedBizOps for 30 days, and the solicitation was concurrently posted to DIBBS.

CLIN 0004 was previously awarded Pomp’s Tire Service (CAGE 1T1Z4) on Indefinite Delivery Contract (IDC) SPE7LX-19-D-5088, dated 07/18/2019. Pomp’s Tire Service was the only supplier to submit a quote. As is the case with CLINs 0001, 0002 and 0003, this three year contract will also max out in 2020, making it necessary for it to be solicited/awarded again as a part of this project. The Acquisition Specialist for this project was contacted on 03/12/20, and has indicated that a J&A was not required for the project, as it was solicited under FAR Subpart 13.5 procedures, and had a contract maximum under the Simplified Acquisition Threshold.

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive. This solicitation contains the DLAD Procurement Note entitled Offers for Part Numbered Items (L04). This clause provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements, and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

At this time, the requirement/guidance in DFARS PGI 206.304 has been fulfilled.

Attachments:

1. J&A from LTC contract SPE7LX-19-D-0077

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

Heidi Treadway Typed name of Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approved this justification:

Competition Advocate

Head of the Contracting Activity (HCA)

APPROVAL REQUIREMENTS

( X ) $13,500,000 to $93,000,000 Head of the Contracting Activity (HCA)

TREADWAY.HEI

DI.E.1299371855

Digitally signed by

TREADWAY.HEIDI.E.129937185

Date: 2020.03.20 12:56:23 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.03.25 07:57:31 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.10411750

Date: 2020.03.25 10:03:51 -04'00'