Consolidation Memo DF_SPRDL125R0089 Redacted.pdf

NSN 2530-01-514-7909 was awarded via Contract No. SPRDL1-22-D-0053, a three-year IDIQ contract which also received two offers – one from Pomp’s Tire Service and one from Wheel Systems International. The contract was awarded to Pomp’s with an estimated value of $674,840.52.

Therefore, this acquisition constitutes a consolidation as defined by FAR 2.101 because it is a solicitation for one contract that will satisfy two or more requirements of DLA for supplies that have been previously provided to DLA under separate contracts that were lower in cost than the estimated total cost of the current solicitation.

RESULTS OF MARKET RESEARCH AND BENEFITS OF CONSOLIDATION:

Market Research

Pneumatic wheel assemblies are a high-demand Army commodity. The two NSN’s being consolidated on this contract have well-established procurement histories, all of which were awarded IAW FAR Part 12, Acquisition of Commercial Products. The contract specialist conducted market research for the NSNs through an internet search as well as reviews of contract history, WEBFLIS, and Haystack on 23 January 2025. Research confirmed that these wheel assemblies are commercial items. Signed Market Research for Commerciality Determination Memoranda supporting commerciality of the wheel assemblies are filed in the Paperless Contract File (PCF).

All past Government contracts for both NSN’s dating back to 2007 were awarded to Pomp’s Tire Service with the exception of one contract awarded in FY2010 to Snider Fleet Solutions (CAGE: 3BGC0), a large business entity that no longer has an active registration in SAM.gov and is therefore ineligible to compete for Government requirements.

While offers were received from Wheel Systems International for Contract Nos. SPRDL1-22-D-0053 and SPRDL1-22-D-0062, one offer was nearly 20% above Pomp’s proposed price and the other was removed from the competitive range.

Based on this information, research did not identify at least two small businesses that can provide the pneumatic wheel assemblies to the Government.

Benefits of Consolidation

Benefits under the proposed approach include:

1. A reliable and consistent source of supply throughout the life of the contract: By awarding this consolidated requirement using an LTC, the selected contractor will be able to develop the most efficient inventory levels and design a supply chain and production process that reduces lead-time and maximizes supply and availability. The contractor can reduce duplicate efforts and thereby lower administrative costs associated with quoting on multiple solicitations over the same period.

The contractor is also able to reduce material costs for multiple items on a single contract by using long-term production planning that allows buying raw material or finished materials in bulk, resulting in quantity discounts. These efficiencies can result in cost reductions for the Government.

2. Reduced administrative lead time (ALT): Consolidating the NSNs into a single contract avoids the effort involved with soliciting, evaluating, and awarding a separate contract for each NSN.

Reduced ALT is important because it ultimately reduces the time it takes to award a contract, allows for the start of the manufacturing process, and delivers sooner to the military customer, thereby supporting military readiness.

3. Workload reduction: This benefit largely results from elimination of numerous separate contract actions (with associated lead-time and contracting resource requirements) that would happen if these items were not consolidated. The Government’s administrative and operational costs to initiate and manage multiple solicitations, evaluations, award decisions, and contracts is significantly reduced. Having a single point-of-contact to administer a single consolidated contract will ensure that potential quality and delivery issues will be resolved more efficiently and quickly than with individual contracts for each NSN.

These benefits are interrelated and largely result from elimination of two separate contract actions (with associated lead-time and contracting resource requirements) now required to support land-based weapon systems on a worldwide basis.

Impact on Small Business and Measures to maximize Small Business Participation

A technical review was completed to identify any potential small business offerors for this solicitation.

Previous procurement history does not include contracts awarded to small business, as Pomp’s Tire Service has been the low offeror for the preceding contracts for each of these NSNs. As a result, it is determined that there will be no adverse impact on small business because of this contracting action.

Additionally, because this contract is expected to exceed $750,000.00 and will be performed within the United States and its outlying areas, a small business subcontracting plan will be required in accordance with FAR 19.702 presuming the contract award is made to a large business.

Alternative Contracting Approaches:

The Contract Specialist has identified the following alternatives in developing the acquisition strategy for this project:

The least beneficial approach would be to procure the wheel assemblies via individual contracts (spot buys). Pursuing individual contracts for each NSN would not achieve the administrative efficiencies, cost avoidance, and other benefits mentioned above when compared to the proposed consolidated acquisition strategy.

Another approach is to separately solicit for and award individual LTCs for each NSN. This approach would leverage the contract administration advantages of long-term delivery order contracts but would require increased effort to award and administer two separate long-term contracts. Therefore, this alternative contracting strategy is less beneficial than the proposed consolidated approach because it significantly decreases efficiencies during the pre-award cycle and provides no additional benefits associated with competition.

Determination:

For the reasons stated above, I hereby determine: