J-A6.302-1SPE7LX20R0064 - Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7LX-20-R-0064

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

NSN Company CAGE CODE PRT NUM

2530016053206 NAVISTAR DEFENSE 338X5 3888206C91

3030015664263 NAVISTAR DEFENSE 338X5 1882928C1

The use of the authority cited below:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer. One manufacturer is approved for these items: Navistar Defense (338X5).

Procurement history shows that Navistar Defense (338X5) is the actual manufacturer of these items and that various dealers have provided Navistar Defense parts. The Government lacks the technical data needed to acquire these items competitively.

Navistar Defense (338X5) is the only sources known to possess the complete technical data for both items; therefore, this acquisition will be solicited with other than full and open competition under the authority of 10 U.S.C 2304(c)(1), as implemented by FAR 6.302.

The use of the authority cited is based on:

AMSC C: Applicable to CLIN 0001. 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.

Coordination was made with the Alternate Offer Monitor (AOM). As of the date of this J&A, no return response has been received regarding any source approval packages that are pending at the engineering support activity. For CLIN 0001, Navistar Defense (338X5) is the only company who has gone through the approval process to get its item approved.

AMSC Z: Applicable to CLIN 0002. 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.

Item is not listed on an interchange catalog or appears on a commercial cross reference list. For CLIN 0002, Navistar is the only company who has gone through the approval process to get its item approved.

As confirmed by the SAPD Product Specialist on 2/26/2020 the AMC/AMCS code for each NSN are correct and that Navistar Defense (338X5) is the only approved source for these NSNs. If new sources are approved prior to award, the solicitation will be reissued allowing for the new source(s) a chance to compete for this acquisition.

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

a. The acquisition will be synopsized on or about March 5, 2020, and will run for 15 days. At the completion of the synopsis period, the RFP will be solicited on the internet for 30 days, via the DLA Internet Bid Board System

(DIBBS).

b. Alternate items will be evaluated for this procurement. However, Alternate items received will be forwarded through the Competition Advocate/Ombudsman Office to assist vendor(s) in submitting an Alternate Offer Technical data package (SAR) through DLA Land and Maritime.

c. Other. (Explain) A sources sought was posted on Beta.Sam.Gov on 2/6/2020 with a return response of

2/13/2020. No companies responded as a result of the sources sought that was posted.

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

a. Past procurement, history will be reviewed and a price analysis will be performed using the Producer Price

Indexes from the Bureau of Labor Statistics. The basis for determining the reasonableness of this procurement will be price analysis; analysis of the prices in the commercial market place plus other than cost or pricing data will be request if needed.

8. Market Research/Efforts to Obtain Competition:

a. The product specialist reviewed both NSNs for the project during project creation, and no new sources were found. A Sources Sought notice was posted on February 6, 2020, in Beta.Sam.Gov for 7 calendar days to find potential sources for these NSNs and no responses were received from companies indicating an interest in the manufacturing of these NSNs with a closing date to respond of February 13, 2020.

b. A market survey was conducted on/during April 22, 2019 – January 13, 2020.

Describe the market research conducted and the results.

The Strategic Sourcing Specialists attempted to conduct market research with the company listed on table below to assess their interest and capability to perform. Navistar Defense indicated an interest in a Long Term Contract.

Techniques used to conduct survey: Emails and posting a sources sought on Beta.Sam.Gov.

Types of information requested: Companies were asked to respond to areas regarding their independence from the manufacturer if they were a dealer/distributor, inventory capability, # of base years, # of option years, priced option years versus EPA, FOB origin or destination, quantity breaks, commerciality, commercial sales invoices, Understanding of cost/price data.

Total number of vendors contacted: 1 Names of vendors contacted and responding: See table below.

Information received regarding the commerciality of the item(s): Items are a commercial of a “type”.

Market research was conducted during the review of the DLA Land and Maritime supplied files, Navistar Defense response to RFI, as well as internet resources. The market research consisted of reviewing NSN data for one (2) components, part number 3888206C91, Arm, Control, Vehicular Suspension, NSN 3040-01-438-8050) and part number 1882928C1, Belt V, NSN# 3030-01-566-4263 for the Mine Resistant Ambush Protected (MRAP) family of vehicles, review of historical sales data, part prints, and DLA supplied Long Term Contract Market Research Questionnaire. The Analyst’s market research included reviewing the following websites: www.maximinc.com.

The Contract Specialist search on the internet for CLIN 0001, NSN: 2530016053206, PN: 3888206C91 and CLIN 0002, NSN: 3030015664263, PN: 1882928C1 was successful. These items are for sale to the public on the following websites:

www.FindItParts.com, and www.maximinc.com. See attachment# 1.

The material master in SRM indicates that CLIN 0002 is a Commercial off-the-shelf (COTS) and the item is for sale to the public at the websites above. Though the material master indicates the items is COTS, the Contracting Officer could find no evidence that these items are available off the shelf at stores such as Home Depot, Walmart, Lowes, etc.

Company Name

Cage Code

Interested in a LTC

Business Size

Base Year Option Years

Fixed Firm Price

Priced Option

FOB

Origin

Cost/Price Data

Navistar Defense 338X5 Yes Large

Market research analysis I/A/W FAR 12.101 (a) was conducted and based on Navistar response to the market survey they indicated that both NSNs are a commercial of a type. Unredacted invoices was requested to Navistar and they indicated that resources to search for the unredacted invoices was costly. Navistar indicated that on contract# SPE7LX-15-D-0130 the Contracting Officer determined that theses NSNs were commercial of a type. The Contracting Officer for contract# SPE7LX- 15-D-0130 was contacted for a copy of the determination of commerciality and indicated that Navistar supplied the supporting commerciality documentation for these NSNs and that the signed copies of the commercial determination was awarded when the hard copy folder was the official file.

Based on statement above the Contracting Officer has determined that these NSNs for this project are commercial items of a type as it meets the definition of a commercial item of a type customarily used by the general public as found in FAR 2.101 (1)(i) “Commercial Item” and DLAD 12.102 (a) (S-91).

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

a. 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. The data presently available reflects the minimum needs of the Government.

b. The SAPD’s product specialist group completed a technical evaluation for these NSNs. The subject NSNs are a sole/limited source item. No other sources or adequate technical data were identified or located for competitive procurements. If new sources are approved prior to award, the solicitation will be reissued allowing for the new source(s) a chance to compete for this acquisition.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Navistar Defense (338X5) responded to the market survey and expressed an interest in the acquisition. As such, this company will be in the solicitation mailing list.

11. The following actions are being taken to identify additional sources:

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [X] Other

a. The buyer was not able to locate a copy of any previous J&A’s in the SRM Records Management database and could not locate any statement of actions to remove or overcome any barriers for competition.

b. Planned actions for the future to overcome any barriers to competitions will be periodic market research and sources sought. Also as these items are AMCS C and Z, periodic reviews are required by DFARS PGI 217.7506 2-203(b).

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

Contracting Officer\Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

CARABALLO.EDWIN.1253

443274

Digitally signed by

CARABALLO.EDWIN.1253443274

Date: 2020 03.17 11:05:33 -04'00'

SHEARER.MARY.E.1250

702449

Digitally signed by

SHEARER MARY.E.1250702449

Date: 2020.03.18 12:42:14 -04'00'

APPROVAL REQUIREMENTS

[X] $700,000 to $13,500,000 Competition Advocate

Attachments

1. Commercial Websites