J and A.pdf
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- Attached to
- J&A for SPE7LX-21-R-0150 Federal contract opportunity
- Solicitation number
- SPE7LX21D0081
About this file
This justification and approval document outlines a limited competition solicitation for industrial hardware parts to be awarded to IRTC. The solicitation will include over 4,000 national stock numbers for items like nails, rivets, springs, o-rings and other miscellaneous hardware. According to the technical data reviewed by the contracting officer, IRTC is the only source able to meet the government's needs due to lack of adequate technical data for the items. The justification cites market research efforts including sources sought notices and surveys that did not identify any additional suppliers. The Defense Logistics Agency Land and Maritime plans to issue solicitation SPE7LX-21-R-0150 for these items with an anticipated award to IRTC.
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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7LX-20-R-0150
For Official Use Only Source Selection Information
See FAR 2.101 and 3.104 technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For the NSNs coded as AMSC B, IRTC is the only approved manufacturing source specified on the source control or selected item drawings and is the only known source to possess the requisite rights to technical data for these items.
AMSC C (241 NSNs). 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. IRTC is the only source approved by the design control activity and they are the only known source to own or possess the technical data necessary to manufacture the items coded AMSC C, which is not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part.
AMSC D (1998 NSNs). 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. The Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. For the NSNs coded AMSC D, IRTC is uniquely qualified because they are the only known source with the data necessary to manufacture these items.
AMSC L (60 NSNs). 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. For the items coded AMSC L, IRTC has been evaluated by the military services' Engineering Support Activity and is the only company known to have the capability to manufacture these items. An item identified by AMSC 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
See FAR 2.101 and 3.104 identified by 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.
AMSC P (16 NSNs). The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid. The Government does not have the rights to the data and it is not economical to obtain the rights to this data. For the items coded AMSC P, IRTC is uniquely qualified because they are the only source that owns the data rights to these items.
AMSC Q (93 NSNs). The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For the items coded AMSC Q, IRTC is uniquely qualified because they are the only known source to possess the technical data necessary to manufacture these items.
AMSC R (366 NSNs). The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid. The Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. For the items coded AMSC R, IRTC is uniquely qualified because they are the only known source to possess the technical data necessary to manufacture these items.
AMSC Z (349 NSNs). 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. For the items coded AMSC Z, IRTC has
See FAR 2.101 and 3.104 material available for these items; the Government knows of no other souces, nor is technical data available.
The confirmation of sources listed above was completed during the technical review of these items on 6/5/20 for the DLA Aviation items, on 4/9/20 for the DLA Construction and Equipment items, on 3/23/20 for the DLA Industrial Hardware items, and on 6/5/20 for the DLA Land and Maritime items by Product Specialist Please also note that the Product Specialists confirmed that the technical data, including the AMSC codes in addition to the approved source, is accurate and complete and there are no open 339s for these items. Based on the limited data the Government possesses, only IRTC can meet the Government’s minimum needs for these items. 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:
The acquisition will be synopsized in July or August of 2020 prior to the solicitation opening. At the completion of the synopsis period, this acquisition will be solicited on the internet for 60 days via the DLA Internet Bid Board System (DIBBS).
7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.
Cost and Pricing Data is not required per FAR 15.402-1(b)(3) for the items listed above. The Contracting Officer has determined these items to be commercial; therefore, the items covered by this initiative will be procured under FAR Part 12- Acquisition of Commercial Items. In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contracting Officer must ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR Subpart 15.4. The buyer may request information other than cost or price data to support price reasonableness if necessary. If other than certified cost or pricing data cannot be obtained, at a minimum, the Contracting Officer shall determine the prices fair and reasonable based on price analysis of the proposed prices to the historical prices paid for all items. Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.
8. Market Research/Efforts to Obtain Competition:
The Contracting Officer posted a Sources Sought Notice on 11/22/19, and on 3/4/20, on Beta.Sam looking for other sources of supply willing and able to produce these items, but no responses were ever received. Market Surveys were sent to IRTC and the 35 companies listed in the procurement history. While multiple companies provided a response, only IRTC actually completed the market survey. Listed below is a summary of the responses received from all companies except IRTC.
See FAR 2.101 and 3.104
Company CAGE Response ABEJ INTERNATIONAL INC 1USX8 ----No response received---- ACUTEK, INC. DBA 99717 ----No response received---- ADVANCED MILITARY TECHNOLOGY, EVA 5X5V1 ----No response received---- ALLIED DEFENSE INDUSTRIES, LLC DBA 0GD25 ----No response received---- APEX PINNACLE CORP. 0REY5 ----No response received---- BLUE CORD LOGISTIC STRATEGIES, 7MBP0 ----No response received---- DMC LOGISTICS DBA 5Z7Q9 ----No response received---- EQUIPMENT PARTS SALES 1N0P1 ----No response received---- FEDERAL REALTY INVESTMENT COMPANY 6DP44 ----No response received---- GULF PRODUCTS SERVICES 5YPU3 ----No response received---- H-D CLUTCH AND BRAKE, INC. 0PB68 ----No response received---- HOOSIER INDUSTRIAL SUPPLY, INC 0RCD8 ----No response received---- HOWCO DISTRIBUTING CO. 5E074 ----No response received---- INTEGRITY CORPORATION, INC. DBA 5HQV0 ----No response received----
J.G.B. ENTERPRISES, INC. 61125
Greatly appreciate the opportunity.
However, JGB can no longer supply approved source cage 1NWY2.
They support all Department of Defense requirements directly.
JGILS, LLC 1N8T8 No interest KAMPI COMPONENTS CO., INC. 7Z016 ----No response received----
LARKOS PACKING AND DISTRIBUTION 6PZL1
Sorry we do not rep the mfg. that is listed on the market research so we are not a good company to reply to the market survey.
LYNN ELECTRONICS CORP. 19151
We can try and quote anything, but we do not do market surveys.
MAVEN ENGINEERING CORPORATION 46YF5
Unfortunately we cannot quote on these items.
MAVERICK COMPONENTS 5G0M5 ----No response received----
MEGABITE ELECTRONICS, INC. 045V4
Thank you for an opportunity however we no longer supply this company’s product, Have a great day
MERCY DAYCARE LLC 67LX5 ----No response received---- PAR DEFENSE INDUSTRIES, LLC 7DWH2 ----No response received---- PHOENIX TRADING INC. 4LF36 ----No response received---- PIONEER INDUSTRIES, INC. 66200 No quote S I T CORPORATION DBA SYRACUSE 1MQB3 ----No response received----
See FAR 2.101 and 3.104
FSC 5315 - Nails, Machine Keys and Pins FSC 5320 - Rivets FSC 5325 - Fastening Devices FSC 5330 - Packing and Gasket Materials FSC 5331 - O-Rings FSC 5340 - Miscellaneous Hardware FSC 5355 - Knobs and Pointers FSC 5360 - Coil, Flat, Leaf and Wire Springs FSC 5365 - Bushings, Rings Shims and Spacers
Of the 253 NSNs, the KO was able to obtain the Technical Manuals (TMs) for the RTCH-240 and the LCRTF to review for the remaining 149 NSNs. The KO reviewed these NSNs in relation to their subsystem and general description as listed in the TMs. Although in most cases, no specific information was given to size, material composition and/or technical specifications, the KO could ascertain that these items were similar to those used in the commercial marketplace. For example, NSN 2510016526362 is a shock absorber for the seat commonly used on forklifts made everywhere.
Seven of the NSNs are standard bearings, 24 of the NSNs are hydraulic hoses standard to forklift and cargo handlers and five NSNs are valves to regulate hydraulic or brake pressure. Other items include standard chains, fluid filters, plugs that go into pipes to retain the fluid inside them, other parts related to the hydraulic lift system, etc. The IRTC LCRTF is comparable to commercial 5K forklifts such as the JCB, Inc. 950 Rough Terrain Forklift in terms of its essential physical characteristics and function just as the IRTC RTCH-240 is comparable to heavy cargo forklifts such as the Toyota Reach Stacker Forklift. The KO was also able to ascertain that 92 of the 254 NSNs were solicited as part of the RTCH-240 contract with TACOM, which was solicited under FAR Part 12 procedures.
While commercial part numbers may be manufactured to different specifications, if they are, there is no evidence that those specification differences are so substantial to render these items (used on these military platforms) unsuitable and unavailable for commercial purposes. Based on the technical information provided, the items that are used by the military are “of a type” as the items used commercially. Modifications are of a type customarily available in the commercial marketplace. The difference may simply be the size or perhaps a more stringent specification, but these NSNs meet the definition of commercial, see Attachment 5 for similar items.
For the reasons stated above, the items covered by this initiative are commercial and procured under FAR Part 12- Acquisition of Commercial Items.
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 for these CLINs and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.
10. Listing of sources that expressed interest in the acquisition: IRTC and Lynn Electronics are the only sources that have expressed interest in participating in an LTC for the items listed in this solicitation.
See FAR 2.101 and 3.104
11. These items are subject to the following methods of locating additional sources: The solicitation contains Procurement Notes L04 – Offers for Part Numbered Items, M06 – Evaluation of Offers for Part Numbered Items and L22 Restriction of Alternate Offers for Source Controlled Items.
12. The J&A for SPE7LX-15-R-0150 in included as Attachment 4.
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. If not exceeding $700,000, this signature serves as the approval.
Charles E. Mielke II, Contracting Officer
APPROVAL/CERTIFICATION
I have reviewed and approve this justification. The estimated total value of the J&A is
Competition Advocate
Head of the Contracting Activity (HCA)
APPROVAL REQUIREMENTS
[ x ] $700,000 - $13,500,000 Competition Advocate [ x ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)
*Attachment 1 provides the item information.
*Attachments 2&3 provide commerciality determination information.
*Attachment 4 is the J&A for SPE7LX-15-R-0150
SHEARER.MARY.E.1
250702449
Digitally signed by
SHEARER.MARY.E.1250702449
Date: 2020.07.29 14:00:52 -04'00'
BROWN.MARK.ALBE
RT.1041175032
Digitally signed by
BROWN.MARK.ALBERT.1041175032
Date: 2020.07.29 14:14:57 -04'00'
MIELKE.CHARLES.EVANS.II.125
3169750
Digitally signed by
MIELKE.CHARLES.EVANS.II.1253169750
Date: 2020.07.29 13:04:45 -04'00'
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