J and A Redacted SPE7LX20R0055.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX20R0055

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

ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. The supplies required to meet the using activity's needs are described as follows:

National Stock Number (NSN) 2520-01-383-2387 –Constant Velocity Drive Parts Kit

Producer Price Index for the subject solicitation is 336350, “Motor Vehicle Transmission and Power Train Parts Manufacturing”

Weapon System:

The end item is Constant Velocity Drive Parts Kit supporting High Mobility Multi-Purpse Wheeled Vehicles.

Estimated Annual Value: (1,780 (ADQ)/NSN (Moving Average Price) Estimated Total Value (Base + Options): (5 yrs.

Maximum Value:

The intent is to issue a long-term contract to provide support for the NSN 2520-01-383-2387. The following Federal Supply classification provides a description of the item that will be acquired with Project CL19283001:

FSC 2520 – Vehicular Power Transmission

The contract will include a three-year base period and two one-year options.

FAR subpart 13.5 will be used in accordance with 41 U.S.C. 1901.

4. The statutory authority permitting other than full and open competition is:

(X) 10 U.S.C. 2304(c) (1) - Available from only one or a limited number of sources.

This is a replacement part. The Government requires spare parts that are form, fit, and functionally interchangeable with those currently supporting High Mobility Multi-Purose Wheeled Vehicles. The only manufacturing source approved by the design control activity with the comprehensive knowledge, technical data, and expertise needed to manufacture this item is GKN Driveline North America Incorporated.

Long Term Contract SPE7LX15D0180 provides support through August 30, 2020.

5. The subject NSN is restricted to GKN Drive North America Incorporated (CAGE 62826). The authority for using other than full and open competition is FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements qualifications”. Although this item is commercial, it is essential that the Government obtain this parts kit only from GKN Drive North America Incorporated because it is essential that the Government only obtain engineering source approved products that have been tested and verified to be used in specific higher level assemblies. Those higher assemblies include Army vehicles. To insure operability in accordance with military requirements of the stated higher assemblies, the spare/replacement parts incorporated in the higher level assembly must be the same form, fit, and function as the parts currently used in these higher assemblies. This is supported by the NSN Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) code of 3B. GKN Driveline North America Incorporated is the only company known to possess the technical data and/or rights in that data required to manufacturer the item being solicited. In addition, code B requires engineering source approval. Although the Government has the drawing, it is source-controlled drawing.

Because the Government does not have full rights to the drawing, the drawing cannot be used to provide full and open competition.

The use of the authority cited is based on:

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

The following is the AMSC description.

AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable 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.

, Quality Assurance Specialist, has verified on July 16, 2019 that GKN Driveline North America Incorporated is the only known source and verified the AMSC/AMC codes. At the time of the certification, NSN 2520-01-383-2387 was included in Project CL19008002. The NSN was removed from the project because the item was the only commercial NSN in the product mix and Project CL19283001 was created. Further, Market Research has demonstrated there are no other known sources capable of providing the subject item.

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

The acquisition was synopsized on December 10, 2019. A solicitation will be issued on or about December 28, 2019. The solicitation will remain open for thirty days. In addition to notifying the approved source for the item of the Request for Proposal (RFP), dealers of the manufacturer will be solicited.

Sources Sought Posted (See Section 8 for more information concerning Sources Sought).

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

This will be a five (5) year, firm fixed price Indefinite Delivery Contract-Quantity. The five-year period is inclusive of a three (3) year base period, and two (2) separately priced, one (1) year option periods. Certified Cost or pricing data as directed by FAR 15.403-1 will not be required for commercial items although the maximum estimated value is over $2,000,000. Price analysis will occur comparing the offer(s) received with past acquisition history, movement of the producer price index, and comparisons to similar items. Proposed commercial prices will be compared with current invoices. Based upon the above techniques to be applied, the Contracting Officer anticipates costs to the Government will be fair and reasonable. The NSN in this initiative are determined to be commercial as defined by FAR 2.101.

8. Market Research/Efforts to Obtain Competition:

In an effort to obtain competition and satisfy FAR 10.001, the solicitation will be synopsized and a copy will be furnished to any vendor expressing interest. Additional sources may be identified by the DLA Land and Maritime – Office of Small Business Programs (DU) and Small Business Administration – Procurement Center Representative (SBA-PCR), and will be solicited when practicable. A Sources Sought notice was posted on Federal Business Opportunities (FedBizOps) on April 4, 2019 with Project CL19008002 and remained open for seven days. No additional sources of supply were identified as a result of the notice. A second notice was posted December 2, 2019 under Project CL19283001 and remained opened for five days. There were no responses received. The main purpose of posting a Sources Sought notice is to provide an opportunity to other potential sources to manufacture the subject NSNs in order to promote competition. All interested parties will be added to the source list to be solicited.

Market Survey [10 U.S.C. 2304(f) (3) (D)]:

A market survey occurred on 1/9/2019 and 2/2/2019.

Total number of contractors contacted: 5 Names of vendors contacted: Janel’s Industries Incorporated (CAGE 3B8L1), Integrity Corporation, Incorporated (CAGE 5HQV0), Truck and Equipment Parts Company (CAGE 8X479), AM General LLC (CAGE 34623), and Wheeler Bros. Incorporated (CAGE 55683) Names of vendors responding: Janel’s Industries Incorporated and AM General LLC Techniques used to conduct survey: Market Surveys sent via email, phone calls, internet research.

Types of information requested: The market survey sought information on contractors’ capabilities, vendor size and business status information, distributor involvement, researching/information gathering on commerciality of the items, delivery information, interest in Economic Price Adjustments (EPA), Base year and option years; optimal lengths, possible price/cost advantages, and interest in a multi-year contract and the duration of such a contract.

Summary of information received:

AM General LLC (CAGE 34623)

Large Business Dealer for GKN Driveline North America Incorporated States item is commercial

Janel’s Industries Incorporated (CAGE 3B8L1)

Small Business Dealer for GKN Driveline North America Incorporated States item is noncommercial

There were no other responses to the market survey.

Based upon the information collected, this item meets FAR 2.101(1) (ii) definition of a commercial item which states that the item must have been “offered for sale, lease or license to the general public.” For the reasons stated below the Contracting Officer determines the item in this initiative to be commercial.

Product Specialist, updated the Material Master database on December 12, 2019 to identify NSN 2520-01-383-2387 as a commercial item.

Solicitation SPE7LX-15-X-0001 that resulted in the current long-term contract SPE7LX-15-D-0180 was solicited applying FAR 12 procedures. The Contracting Officer determined the NSN to be commercial (Attachment 3 – commercial determination). Although the determination alone does not justify a commercial determination for the current acquisition, DLAD 12.102 (S-97) (vi) sates the prior determination is an indicator of commerciality.

The NSN is a kit supporting repair of a HMMMWV half-shaft axle. The axle shaft is a driveshaft assembly that runs from the differential to the hub, delivering power to the wheel. The half-shaft axle has many commercial applications to include cars (Reference Attachment 4aA). The HMMWV kit can be obtained in the commercial marketplace through MAC Motors and other websites.

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.

The NSN included in this solicitation were reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially, it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

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

AM General LLC (34623) Janels Industries Incorporated (3B8L1)

11. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, these items are subject to the following methods of locating additional sources:

(X) The solicitation contains Procurement Note- Restriction of Alternate Offers for Source Controlled Items (SEP 2017) (L22).

(X) Source Development Review and a Sources Sought notice was posted on FEDBIZOPPS on 4/4/2019 and 11/21/2019. No responses were received in response to the posting.

(X) The solicitation will be posted on the DLA Internet Bid Board System (DIBBS} for 30 days.

The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for these items to be competitive.

Attachments:

1. NSN and Annual Demand Value

2. Previous J & A

3. Previous Commercial Determination

4. Commercial Verification Half-Drive Shaft

5. Mac Motors Website Verification

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.

______________ 9833_____________1/23/2020 Contracting Officer Phone Date Michael L. Shirley

Approval/Certification

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

Competition Advocate Phone Date

SIGNATURE

APPROVAL REQUIREMENTS

(X) $700,000 to $13,500,000 Competition Advocate knowledge and belief.

Contracting Officer

614-692-3760SHEARER.MARY.E.1250702449 Digitally signed by SHEARER.MARY.E.1250702449 Date: 2020.01.24 14:42:30 -05'00'