CM SPE7MX25R0048 redacted_Redacted.pdf

Consolidation Determination Project CM23118001

The items in project CM23118001 are commercial and the vendor agreed that they are commercial. They are willing to provide proof of commerciality.

However, when Contract Specialist contacted Sensear to confirm interest. They replied stated that they are not interested

Small Business Impact:

The Contracting Officer does not anticipate a negative impact on contracting with small business concerns because the Government’s strategy is specifically focused on facilitating the participation and award of small business concerns. Actions taken to maximize small business participation are requiring a subcontracting plan from large businesses and having a small business participation evaluation factors, in the solicitation. The only offer that the Government expects to receive is coming from small business manufacturer David Clark (Cage 71483). Actions taken to maximize small business participation are:

The Contracting Officer assessed the opportunity to set aside the procurement for small businesses in accordance with FAR 19.502. The procurement cannot be set aside for small business because only one small business manufacturer is interested in the procurement.

In accordance with FAR 7.107-2(a)(3), this consolidation determination has been coordinated with the Agency’s Office of Small Business and an email will be kept on file.

Benefit Analysis:

The details of the proposed approach are discussed in the Acquisition Plan. The proposed acquisition approach results in the following benefits:

1. Acquisition Cycle: Administrative Lead Time (ALT) will be reduced because items will not have to be procured via individual purchase orders (spot buys) each time a requirement arises.

Requirements will source automatically to the proposed LTC using DLA’s automated procurement system, which will generate delivery orders against the contract. As of June 2025 in the Maritime Supply Chain, the average ALT for delivery orders on LTC was , days for small buys, and days for Procurement Automated Contract Evaluation (PACE) awards. Using this data for comparison, there is a minimum savings of days when comparing the proposed LTC approach to small buys, and days compared to PACE awards.

2. Relationship Management: Orders from a LTC will provide a continuous relationship between the contractors and the contracting activity. After award issuance, the contract(s) will be assigned to a Basic Contract Administrator (BCA). The BCA and an Administrative Contracting Officer (responsible for post award actions on delivery orders) will be responsible for ensuring Purchase Requests are sourced properly to this contract and tracking delivery. The BCA will also be responsible for exercising any options until contract expiration. Having primary contact within the administration area will ensure that potential quality/delivery issues will be resolved more efficiently and quickly than individual spot buys. Also, contractors are more likely to be proactive in seeking avenues to resolve quality/delivery discrepancies since the items are on contract for an extended period of time.

3. Cost: The vendor(s) will reduce duplicate efforts and thereby lower administrative costs associated with quoting on multiple solicitations over the same period. Additionally, the vendor(s) may be able to reduce material costs for items on a LTC by using long-term production planning, which allows buying raw material or finished materials in bulk, resulting in quantity discounts.

These efficiencies can result in a reduction of Government costs. There are also internal Government benefits from using a LTC, such as decreased inventory capital investment requirements as a result of lowered ALT, since quicker and more reliable vendor delivery means that less stock is required to be kept on-hand. Also, the Government’s administrative and operational costs to initiate and manage multiple solicitations, evaluations, award decisions, and contracts are significantly reduced, ordering is automated, and the automated ordering process time is almost instantaneous.

In addition, according to the Cost Simulation performed using the AAA/BCA Simulator tool, this consolidated procurement will save the Government an estimated total of $ over five (5) years in comparison to spot buys. The proposed procurement is estimated at $ per year and the estimated Cost Simulation savings are approximately % per year, primarily resulting from cost reductions in the following cost drivers: depot throughput, transportation, asset management, and storage. Since the proposed vendor materiel prices are unknown at this time, these savings assume the vendor's materiel prices will be the same as the average DLA acquisition prices for each NSN. The actual savings will depend on the final negotiated materiel prices.

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 Maritime 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 logistics provider, 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.

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. Four (4) of the five (5) NSNs have ADVs have ADVs exceeding $250,000, therefore these NSNs 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.

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

CATHERINE L. CONTRERAS, SES Date Head of Contracting Activity (HCA) DLA Land and Maritime

CONTRERAS.CATH

ERINE.L.1229386472

Digitally signed by

CONTRERAS.CATHERINE.L.122

9386472 Date: 2025.07.19 09:01:44 -04'00'

Attachments:

1) VSRM Report

2) FY25 Award-ALT Summary

3) Market Research Summary of CM23118001

4) Contract History

5) Tech Certificate