J-A SPE7LX20RX034_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX20RX034

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4:

Although these NSNs have been determined commercial, they are all critical application items used on the HMMWV and other vehicles. NSNs 2815011660621, 2815013991020, 2815014128161, and 2930014936007 are engine parts. 4330014965720 is a filter kit for transmission fluid. It is not known where or what specific systems use 4730011777501 and 4730014440701; however, these NSNs also have critical applications.

It is crucial that these specific parts are procured to ensure proper performance of the systems they support so that the military customers can perform their duties safely. The data needed to acquire these parts competitively are 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. The approved source, General Motors (7X677), is the only known source that has the technical data and manufacturing knowledge necessary to ensure the parts properly support the HMMWV and other vehicles. It is, therefore, essential to limit to the approved CAGE code and part numbers.

The Product Specialist reviewed the technical information and confirmed the approved source for these items and confirmed that the AMC/AMSC codes are accurate on 5/21/2019 and 9/9/2019.

The procurement item description (PID) is included as Attachment 1.

The use of the authority cited is based on:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

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.

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.

AMSC L*. The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

AMSC Z. This part is a commercial/non-developmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition.

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement. Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

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

The acquisition will be synopsized on or about 4/14/2020. One day after the synopsis is posted the solicitation will be posted to DIBBS for 30 days for other interested businesses to access.

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

Cost or pricing data will not be required, since the items contained on this project have been determined to be commercial items in accordance with Federal Acquisition Regulations (FAR) 2.101 and meet the exception at FAR 15.403-1(b)(3). Commercial procedures will be utilized in accordance with FAR Part 13.5. Only General Motors, the approved source, is expected to submit a technically acceptable quote for this solicitation.

Per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be conducted using pricing on the current (past) long-term contract, which was determined fair and reasonable. Pricing on that LTC will be adjusted by Producer Price indexes (PPIs) and learning curve analysis, as necessary, for comparison with quoted prices for this procurement. General Motors provided commercial invoices for most of the NSNs being solicited, and these will be utilized in the price reasonableness determinations. Additional information, such as other-than cost data, may be obtained from the offeror(s), as necessary. By using the above techniques, the Contracting Officer anticipates that the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A sources sought notice was issued 3/5/2020 and closed 3/12/2020. AM General responded by email, stating they wish to submit an alternate offer for each NSN. Their subsidiary Genuine Engine Parts (GEP) bought transmission designs from GM, and GEP now manufactures these spare parts, as well as new transmissions. AM General confirmed that this is not a source in addition to GM or GM’s source but the new source for all new spares for the GM 4L80 transmission(s). AM General was directed to submit a SAR to have this reviewed. AM General will be notified by the system when the solicitation is issued to obtain a copy from DIBBS. The AM General representative said that their technical/engineering area is familiar with the SAR procedures and will put the package together to submit to the Contracting Officer of this solicitation. If AM General is approved as an alternate source prior to award, their offer may be considered for award.

However, it is likely that the approval may take longer than contract award. If AM General is approved after award, the requirement may be re-solicited.

Market surveys were sent to 6 businesses, who were listed in the past buy history for the original NSN population (15 NSNs)—5 of the sources are dealers and one was General Motors. All were sent the NSN list and a market survey form. Only General Motors (GM) replied, stating that they will be responding directly to the solicitation. GM noted estimated delivery days, that the items are not quantity sensitive, and that there are no minimum quantities. GM also provided commercial invoices for most of the items being solicited, which will be used for additional price reasonableness information.

The commerciality determination for this acquisition is based upon the commerciality determination in the Acquisition Plan for the current (past) LTC SPE7LX15D0216 (refer to Attachment 2).

Based on the definition in FAR 2.101 for Commercial Item at paragraph (1)*, the Contracting Officer for LTC SPE7LX15D0216 determined the NSNs on that contract to be “commercial” due to the same items being available in the commercial marketplace. The Contracting Officer for the current solicitation determined the items to be commercial based on the commercial determination for SPE7LX15D0216, since the current solicitation is for a successor contract.

Also, the product specialist confirmed agreement on March 6, 2020 with the Contracting Officer’s determination that the items are commercial.

*FAR 2.101, “Commercial item” means (1) 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 purposes, and- (i) Has been sold, leased, or licensed to the general public; or (ii) Has been offered for sale, lease, or license to the general public….

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

Based upon the technical certification on file in DLA Land and Maritime-VEP technical data is not available and cannot be developed to permit full and open competition for these items. The data presently available reflects the minimum needs of the Government.

10. A listing of business sources, indicating an interest in the acquisition is:

General Motors LLC (7X677) AM General LLC (34623)

11. Actions being taken to overcome barriers to competition:

DLAD Procurement Note L04, Offers for Part Numbered Items, will be included in the solicitation.

12. The prior J&A for SPE7LX15D0216 is Attachment 4.

Attachments:

1 PIDs SPE7LX20RX034 2 Acq Plan SPE7LX15D0216 3 Procurement History SPE7LX20RX034 4 Prior J-A SPE7LX15D0216

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

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.

614-692-9252

REBECCA S. HALTEMAN Date Phone Contracting Officer

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is

614-692-3670

Phone Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate

( ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

( ) over $93,000,000 Senior Procurement Executive (AQ)

HALTEMAN.R

EBECCA.S.127

3657475

Digitally signed by

HALTEMAN REBECCA.S.

1273657475 Date: 2020.04 20 09 00:11 -04'00'

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2020.04.20 14:05:00 -04'00'