J and A- Redacted - SPE7LX23D0005.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-22-R-0021

X ORIGINAL

ADDENDUM

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

2. The action being approved is for the acquisition of supplies on an other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Quantity Firm- Fixed Price type contract for spare parts. The acquisition includes a total 785 National Stock Numbers belonging to various Federal Supply Classes. Solicitation will be issued utilizing FAR 12 and 15 procedures. The subject NSNs are provided in Attachment 1, titled NSN Information (Active NSNs).

This procurement is a successor of originally awarded Oshkosh Defense, LLC contracts SPE7LX-17-D- 0100, SPE7LX-17-D-0101, SPE7LX-17-D-0077, SPE7LX-17-D-P077, and SPE7LX-18-D-0016. The Government has a need for continued parts support for the production and maintenance of various weapon systems. The weapon systems for each NSN are illustrated in Attachment 2, titled NSN Weapon Systems.

Items included on the solicitation are sole sourced to Oshkosh Defense, LLC (75Q65). The scope of this project is for the 785 items included within the Schedule of Supplies as well as an additional 4,452 inactive NSNs for which Oshkosh Defense, LLC (75Q65) is the sole approved source provided as Attachment 3, titled NSN Information (Inactive NSNs). Additional items within this scope may be added at a later date in accordance with the terms of Procurement Note L27 - Addition/Deletion of items.

3. The supplies required are to meet the activity's needs are described in Attachment 1 titled, NSN Information (Active NSNs).

All items are replacement parts for various weapon systems, mostly heavy trucks. Attachment 2 lists every weapon for each item.

Contract length will consist of one-three year base period with two, one-year option years. Option years will be exercised at the discretion of the Government. Solicitation will be issued as unrestricted as there is no expectation of receiving offers from at least two responsible small business concerns.

ESTIMATED THREE YEAR BASE VALUE:

*Estimated Base Value represents the first three years (Base Period) of the contract. The estimated base value is calculated by multiplying the estimated annual demand quantity (ADQ) for each NSN by the estimated unit price to establish an estimated Annual Demand Value (ADV). The ADV is multiplied by three (number of years in Base Period) to determine the estimated based value. The ADVs are summed to establish the total estimated base value.

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

The Estimated Total Value is calculated by multiplying the total ADV by 5 (number of contract years).

MAXIMUM CONTRACT VALUE:

*Annual demand value multiplied by six

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.

Items are only available from the limited, approved sources stated above. No other type of property will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

Each NSN is sole sourced to Oshkosh Defense, LLC, (75Q65). For each NSN, the approved source and part number is show in Attachment 4, titled Approved Source & Part Number.

, Quality Assurance Specialist, certified that the technical information is complete and accurate. All means to obtain a technical data package adequate for manufacture of the items has been exhausted. Technical certifications are included as Attachment 5, titled, Technical Certifications

The use of the authority cited is based on (The assigned AMC for each NSN is provided in Attachment 1, NSN Information):

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

AMC 4. Acquire, for the first time, directly from the manufacturer.

AMC 5. Acquire directly from the sole source contractor, who is not the manufacturer

The use of the authority cited is based on (The assigned AMSC for each NSN is provided in Attachment 1, NSN Information):

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. 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 item coded with an AMSC of B, the drawing(s) are source controlled with restricted limited rights.

Oshkosh Defense, LLC (75Q65) is listed as the only approved source. Government does not have the rights to distribute the source control documents.

AMSC C. These items require 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 retains the 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 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.

The Government has retained the right to approve manufacturing sources for these items due to their weapon systems criticality. For these items with an AMSC of C, Oshkosh Defense (75Q65) is the only source that is approved to manufacture the items. The identified approved source retains the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government. For the weapons systems, including the HEMTT, MRAP, and Patriot Missile, the military services have only approved the part numbers provided by Oshkosh Defense (76Q65). Oshkosh Defense (75Q65) is the only source that is trusted and approved by the military services. These items provided by Oshkosh Defense (75Q65) meets the technical and quality requirements identified by the military services. Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply these items.

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.

The Government does not have technical data for these items and cannot obtain the technical data economically. For items with an AMSC of D, Oshkosh Defense (75Q65) is the only known source to own or possess the technical data for the identified items. These exact items are required to ensure proper operability of the weapon systems. Use of any similar items available from other vendors may not produce the same operational results. For the weapons systems, including the HEMTT, MRAP, and Patriot Missile, the military services have only approved the part numbers provided by Oshkosh Defense (76Q65). Oshkosh Defense (75Q65) is the only source trusted and approved by the military services.

The item provided by Oshkosh Defense (75Q65) meets the technical and quality standards identified by the military services. Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply these items.

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.

Although items with an AMSC of L fall below the screening threshold, the Government has screened these items for existing sources, as well as additional sources. Currently, Oshkosh Defense is the only known source for these items. Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply these items.

AMSC P. 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.

Oshkosh Defense (75Q65) is the only source authorized to manufacture the item. Because the rights to use the data are not owned by the Government, item cannot be purchased, developed or otherwise obtained from additional sources. Oshkosh Defense has the engineering expertise to perform all efforts required to provide the supplies identified. Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply these items.

AMSC Q. 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.

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. Oshkosh Defense is the only sources known to own or possess the technical data necessary to manufacture these items. Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply these items.

AMSC R. 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.

Oshkosh Defense (75Q65) is the only source that has the data or the data rights necessary to manufacture the item. Oshkosh Defense is the owner of their drawings and technical data rights. The Government did not buy their proprietary rights to produce a competitive TDP. Oshkosh Defense has the engineering expertise to perform all efforts required to provide the supplies identified in this certification.

For the HEMTT and the Armored Truck Tractor weapon systems, the military services have only approved the parts provided by Oshkosh Defense (75Q65).

AMSC S. Acquisition of this item is restricted to Government approved source(s) because the production of this item involves unclassified but militarily sensitive technology (see FAR Subpart 6.3). If one source is approved, AM Cs 3, 4, or 5 are valid. If at least two sources are approved, AMCs 1 or 2 are valid.

Oshkosh Defense is the only Government approved source with the military sensitive technology used to produce these items. Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply this item.

AMSC Z. (Applies to CLIN 0026) 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.

Oshkosh Defense, LLC (75Q65) and its part number are the only source and part number approved by the military services. The Government knows of no other sources, nor is technical data available.

Therefore, Oshkosh Defense (75Q65) is uniquely qualified to supply this item.

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

(X) The acquisition will be synopsized on www.SAM.gov prior to solicitation opening date.

(X) Manufacturer of exact products identified in the market research will be solicited.

(X) Dealers of the manufacturer will be solicited

(X) Solicitation will be posted on DLA Internet Bid Board System (DIBBS).

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

Prices will be determined fair and reasonable through price analysis based upon the application of the Producers’ Price Index (PPI) to the past acquisitions. Should more than one offer be received, proposed prices will be compared among all offers to determine if price competition exists. Contract is firm-fixed price with a contract length of one three-year base period and two one-year options that will be exercised at the Government’s discretion. A price analysis for future contract years will be conducted based on the Global Insights Producer Price Index (PPI) forecasts. Since the items are commercial, certified cost and pricing data is not required per FAR 15.403-1(b)(3). Buyer will use all methods stated to determine all contract years and quantity range prices fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Buyer reviewed buy history for potential sources (See Attachment 6 – Procurement History). Buy history show that items were provided by Oshkosh Defense (75Q65). The only exception to this is when a PR most recently would occasionally not meet the terms and conditions of the LTC basic and therefore, could not be sourced against the LTC. Buyer researched the availability of the J&A documents for the previously awarded Oshkosh Defense that are considered for this successor project. A J&A was available for contracts SPE7LX-17-D-0100, SPE7LX-17-D-0101, SPE7LX-17-D-0077, and SPE7LX-18-D-

The J&As for the above NSNs are provided as Attachment 7, titled Previous Buys J&As

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

Market research was conducted during September 2021 – November 2021.

Total number of vendors contacted: 1

• Oshkosh Defense, LLC (75Q65) – Large Business, Manufacturer

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.

Additionally, 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: (If none, so state) -Oshkosh Defense (75Q65)

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

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. The Government will also include in the solicitation DLA Procurement Notes L04 Offers for Part Numbered Items and DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items. Should alternate offers be received, sources will be encouraged to submit a source approval request (SAR) package that will be referred to the engineering activity for consideration of future procurements.

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 $750,000, this signature serves as the approval.

Tracy L Holmes Contracting Officer Date

Approval/Certification

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

Mary Shearer Competition Advocate Signature Date

Mark A. Brown, SES Head of the Contracting Activity (HCA) Date

3/31/2022

HOLMES.TRAC

Y.L.1251897499

Digitally signed by

HOLMES.TRACY.L.1251897499

Date: 2022.03.14 12:26:03 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY E.1250702449

Date: 2022 03 31 11 27 55 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117503

Date: 2022.03.31 11 51:55 -04'00'

APPROVAL REQUIREMENTS

[X] Up to $750,000 Contracting Officer

[X] $750,000 to $15,000,000 Competition Advocate

[X] $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

Attachments:

1. NSN Information (Active NSNs)

2. NSN Weapon Systems

3. NSN Information (Inactive NSNs)

4. Approved Source & Part Number

5. Technical Certifications

6. Procurement History

7. Previous Buys J&As

8. GSA Advantage

9. Internet Search Results