CM - SPE7LX22R0026 - Redacted.pdf

Consolidation Determination CL21305001/SPE7LX22R0026

CUI

The advantages of this project include cost avoidance for the Government, workload reduction, opportunity for continued participation in a supplier partnership, little disruption of the current flow of items to the customer, and minimal level of maintenance. These benefits are interrelated and largely result from elimination of the numerous separate contract actions (with associated lead-time and contracting resource requirements) now required to support Land based weapon systems on a worldwide basis.

The benefits of this consolidation are critical to the Agency’s mission success. DLA is the military’s premier combat logistics support agency, and it is imperative that DLA structures its contract actions to maximize benefits while minimizing costs. The consolidation does this by reducing administrative costs which, in turn, helps to keep DLA’s cost recovery rate low. Critical benefits include increased material availability, reduction in lead time, and increased warfighter equipment operational readiness. The contract will provide repair and replacement parts for military customers both in the CONUS and OCONUS. The support of these items will be through DLA Direct (stock) requirements.

Alternative Contracting Approaches: The Contracting Officer considered the less consolidated alternatives in developing the acquisition strategy for this project. The least consolidated, but also least beneficial, approach would be to procure the items via individual purchase orders (spot buys).

This approach would not achieve the efficiencies, cost avoidance, and other benefits when compared to the acquisition strategy proposed.

Another less consolidated contracting strategy would be to procure these items using Automated Indefinite Delivery Contracts (IDCs). However, Auto IDCs have a $250,000 threshold per item and are typically shorter than LTCs. NSN: 2510013507070 has an ADV exceeding $250,000.00, therefore the NSN should not be placed on Auto IDCs. This approach would therefore not achieve the efficiencies and other benefits of the proposed approach.

A third approach that is only slightly less consolidated than that proposed is to separately solicit for and award individual LTCs for each NSN. While this approach seeks to leverage the contract administration advantages of long-term delivery order contracts, it provides very little practical difference from the first alternative above. This approach would require greater resources both to award and administer (even if the contracts were awarded to the same vendor) and would take substantially longer to award than the proposed approach. Therefore, this alternative contracting strategy is substantially less beneficial than the proposed approach because it significantly decreases efficiencies during the pre-award cycle and provides no better benefits associated with competition than the proposed approach, as both approaches allow for the individual evaluation and award of each NSN.

Determination: For the reasons stated above, I hereby determine:

a. This proposed acquisition constitutes a consolidation of contract requirements.

b. The contract requirements being consolidated exceed $2 million.

c. There are benefits of consolidating the contract requirements, which include both quantifiable and non-quantifiable benefits.

d. The expected benefits do not meet the thresholds for a substantial benefit at FAR 7.107-2(d)(1) but are critical to the Agency’s mission success.

e. The procurement strategy provides for maximum practicable participation by small business.

Consolidation Determination CL21305001/SPE7LX22R0026

CUI

f. The consolidation of contract requirements is necessary and justified.

MARK A. BROWN, SES Date Acquisition Executive

Attachments

1. Procurement History

2. BCA Simulator Results

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK ALBERT.104117

Date: 2022.02.18 13:08:52 -05'00'