Consolidation MFR redacted_Redacted.pdf

DEFENSE LOGISTICS AGENCY

TROOP SUPPORT

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

SUBJECT: Consolidation Determination and Findings for the Type I & Type II AirSave Survival Vests and Associated Components

Solicitation Number: SPE1C1-25-R-0088

Reference: 15 U.S.C. 657q; Federal Acquisition Regulation (FAR) 7.107-2; Defense Logistics Acquisition Directive (DLAD) 7.107-2(b); 15 U.S.C. 644(e);

This acquisition constitutes consolidation in accordance with FAR 7.107-2 because the Defense Logistics Agency (DLA) intends to award one (1) contract under solicitation SPE1C1-25-R-0088 to satisfy two (2) or more requirements for supplies which were previously provided to DLA under two (2) or more separate contracts, awarded to both small and large businesses, that were lower in cost than the total cost of the contract for which offers will be solicited. This Determination and Findings (D&F) has been prepared by the DLA Troop Support (DLA-TS), Clothing & Textiles Supply Chain (C&T) pursuant to the statutory and regulatory authorities referenced above.

The National Stock Numbers (NSNs) for the supplies included in this acquisition are as follows:

8415-01-568-9793 Vest Survival Type I 8415-01-568-9791 Vest Survival Type II 8415-01-622-2659 Sea Pocket Assembly 8415-01-579-1739 Harness, Hoisting Assembly 8415-01-569-4286 Pocket Radio Survival 8415-01-569-4123 Pocket General 8415-01-569-4118 Pocket, Oxygen Regulator CRU-103/P 8415-01-569-3989 Pocket, Oxygen Regulator V-22 8415-01-569-4120 Pocket Underwater 8415-01-569-4125 Pocket, Pistol, Survival 8415-01-577-6764 Pocket Knife 8415-01-578-9850 Adjustment Strap 8415-01-579-1786 Panel expansion

Alternative II: Multiple-Award IDIQ Contract Another alternative approach is to award a multiple-award IDIQ contract, under which contract holders would compete for requirements under delivery order solicitations containing evaluation factors such as price and delivery. However, the required quantities for this acquisition, which would be divided among, or separated by item under, multiple delivery order solicitations, may be too low for contractors to want to participate in a competitive procurement under this acquisition approach. Moreover, this approach would create an increased administrative burden on the Government due to the efforts required to compete and award delivery orders. Similar to the concerns under Alternative I, contractor holders may not be able to set up a dedicated production line for these critical safety items without assurances that they will be issued delivery orders. Contractor holders and, in turn, the Government, will not benefit from economies of scale because the contractor’s production quantity will be uncertain.

Alternative III: Consolidation of Vests and Components The third alternative is to award the vests and component items under one (1) solicitation/contract which will allow for placement of delivery orders against one contract containing all items. The Contracting Officer estimates that this approach will yield better pricing, lower administrative costs, and shorter award lead-times as only one (1) solicitation/contract must be reviewed and approved, and only one (1) contracting officer and one (1) acquisition specialist would be responsible for the acquisition. This alternative yields an estimated savings in personnel cost for the Government

Benefits of Consolidation

FAR 7.107-2(b) permits consolidation if the benefits of the consolidated acquisition substantially exceed the benefits that would be derived from any alternative contracting approaches.

The benefits of consolidating the thirteen (13) NSNs into one (1) requirement under (1) solicitation are not limited to the Government achieving economies of scale and negotiating better terms and conditions, such as longer contract periods, leading to cost savings, or price reductions. Consolidating these items under one (1) contract would enable the contractor to set up a dedicated production line, consisting of experienced sewers, for this product line which, in turn, will improve performance and efficiency, and lead to a better quality of products.

Economies of scale are anticipated by purchasing in a larger quantity the base material that is used to manufacture the vest configurations and components, which will result in cost savings for both the contractor and the Government.

This consolidated acquisition is anticipated to lead to reduced acquisition costs due to issuing one (1) solicitation and one (1) contract with higher production quantities and more stable demand requirements. This will allow the contractor to pass cost savings onto the Government.

This more effective form of contracting will also provide potential for more purchasing leverage while creating vigorous competition between offerors that will result in better pricing for the Government. In addition, the administrative burden for the contracting officer and acquisition personnel will significantly decrease as a result there being less contracts to manage.

Determination

For the reasons stated above, I hereby determine:

a. This proposed acquisition constitutes a consolidation of contract requirements per FAR 7.107-2, and as defined in FAR 2.101.

b. The contract requirements that are consolidated do not exceed $10 million and therefore this D&F requires approval by the Chief of the Contracting Office in accordance with DLAD 7.107-2(b).

c. The acquisition strategy has been coordinated with the Small Business Office which has addressed any potential negative impact on small business, the results of market research, and identified alternative contracting approaches, as required by FAR 7.107-2(a.

d. The benefits of consolidating the contract requirements substantially exceed the benefits of all alternative contracting approaches involving a lesser degree of consolidation. 15 U.S.C. 657q(c)(2)(A) and 15 U.S.C 644(e).

e. The consolidation of contract requirements described herein is necessary and justified in accordance with 15 U.S.C. 657q and 15 U.S.C. 644(e).

Chief of the Contracting Office DLA Troop Support DLA Troop Support