J and A SPE7LX20D0137.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-0073

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

ORIGINAL

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

1. The Defense Logistics Agency (DLA) Land and Maritime (L&M), is the contracting activity.

2. The action being approved is the acquisition of supplies on an other than full and open competition basis. This DLA L&M acquisition is for an Indefinite Quantity Contract (IQC) Firm-Fixed Price (FFP) Long Term Contract (LTC), for the duration of one (1), three-year (3-year) base and two (2), one-year (1-year), option periods, which may be exercised at the discretion of the Government, for a potential total contract period of five (5) years, if both options are exercised. The proposed acquisition is for a DLA managed item for which Haldex Brake Products Corporation and Oshkosh Defense, LLC are the only approved sources. This acquisition is for National Stock Number (NSN) 4730-01-339-8584 which is an Air Drier and Cooler. This item is going on multiple weapon systems to include a heavy equipment truck tractor. Solicitation will be issued as an Unrestricted acquisition utilizing Federal Acquisition Regulation (FAR) 15 (Contracting by Negotiation) procedures.

3. The supplies required to meet the using activity's needs are described in Table A.

Table A

NSN Item Description

Estimated Annual Demand Quantity (ADQ)

Estimated Three-Year (3-year) Base Value

Acquisition Method Code

(AMC)

Acquisition Method Suffix Code (AMSC)

4730-01-339-8584 Air Drier and Cooler 150 1 C

Identify end item, weapon system, or class of item: Multiple weapon systems to include a heavy equipment truck tractor.

Estimated Annual Demand Value (ADV):

Estimated Three-Year (3-year) Base Value:

Estimated Total Value (Base + Options):

Maximum Contract Value (ADV*8): $

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

(X) 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Haldex Brake Products Corporation [Commercial and Government Entity (CAGE) code 06721] Oshkosh Defense, LLC (CAGE code 75Q65) are the only approved source of supply for this item and no other type of supplies will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code in Table B. A technical review performed by the product specialist was completed for the item identified in Table B to certify the accuracy of the AMC/AMSC coding and list of approved sources. The approved sources listed in Table B are the only sources known to possess complete and

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018) adequate technical data / data rights for the item and are the only known sources that have proven to maintain technical data / data rights for this item.

Table B

NSN Company Name Company

CAGE

Business Size

4730-01-339-8584 Haldex Brake Products Corporation 06721 Large 4730-01-339-8584 Oshkosh Defense, LLC 75Q65 Large

The use of the authority cited below:

(X) AMC 1. Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

The following AMSC description is available in Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 217.7506 Part 2.

[X] 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.

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

(X) A Sources Sought was posted on Federal Business Opportunities (FedBizOpps) on September 20, 2019.

(X) The acquisition will by synopsized at least 15 days prior to the solicitation opening date.

(X) Manufacturers and dealers of exact products identified in the market research will be solicited.

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

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 Producer Price Index (PPI) to the past acquisition. If competition is present, proposed prices will be compared among all offers to determine if price competition exists. Contract will be FFP for the duration of one (1), three-year (3-year) base and two (2), DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018) one-year (1-year), option periods, which may be exercised at the discretion of the Government, for a potential total contract period of five (5) years, if both options are exercised. Based upon the above techniques to be used, the Contracting Officer hereby anticipates the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

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

A market survey was conducted on January 9, 2020.

Total number of vendors contacted: 4 Names of vendors contacted and responding: A market survey was sent to Brighton

Cromwell (CAGE 3NNX8), Ruta Supplies Inc. (CAGE 0NJT4), CBT Corporation (CAGE 4N361), and Oshkosh Defense, LLC (CAGE 75Q65). A market survey was not sent to Haldex Brake Products Corporation (CAGE 06721) as it indicated Brighton Cromwell is its primary DLA distributor. Brighton Cromwell responded with a completed market survey indicating an interest in the project. Ruta Supplies Inc. responded that it can no longer supply the NSN. CBT Corporation and Oshkosh Defense, LLC did not respond to the market survey.

Techniques used to conduct survey: Telephone and E-mail Types of information requested: The market survey sought information on company size, status, and willingness to engage on a Long-Term Contract (LTC), pricing data, risks, delivery, Free on Board (F.O.B.) point, packaging, consolidation and commerciality.

Summary of information received:

o Brighton Cromwell responded to the market survey. Its market survey stated it is a small business distributor with approximately 72 employees. Haldex Brake Products Corporation [Original Equipment Manufacturer (OEM)] (CAGE 06721) formed an alliance with Brighton Cromwell (CAGE 3NNX8) and selected Brighton Cromwell as its primary DLA distributor. It is interested in a LTC

Information received regarding the commerciality of the item(s): The NSN to be acquired on this solicitation/contract is determined to be non-commercial in accordance with FAR 2.101. The Acquisition Specialist had a phone conversation with Haldex Brake Products Corporation who stated that this item is considered a legacy item that is only used on military vehicles and not sold commercially.

Brighton Cromwell could not provide documentation to prove commerciality. Market Research, involving the product specialist reviews, has suggested the NSN is not a commercial item. The product specialist coded the NSN as a non-commercial item in DLA’s Enterprise Business System (EBS) under transaction code “MM03 – Display Material.” The NSN was not found in any commercial price list when the project was developed by the Strategic Sourcing Specialist (SSS). The Acquisition Specialist conducted additional research through past buys and online searches to see if this

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018) item was determined commercial. Per Defense Logistics Agency Directive (DLAD) 12.102(a)(i)(S-91)(1)(i), a search of the General Services Administration (GSA) for this NSN returned no results.

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

(X) 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. Furthermore, a technical and quality review was completed by the Product Specialist during the project development stage for this acquisition to which the AMC and AMSC was verified.

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

Table C

Company Name Company CAGE Brighton Cromwell 3NNX8 CBT Corporation 4N361

11. The following actions are being taken to increase competition:

(X) Solicitation contains DLAD Procurement Note, L04 Offers for Part Numbered Items

(X) Solicitation contains DLAD Procurement Note, M06 Evaluation of Offers for Part

Numbered Items

(X) Every effort will be made to obtain potential sources by synopsis through the Federal

Business Opportunities website. Any vendor that believes it can provide this NSN while meeting the same requirements as the existing item should seek qualification as a secondary source through the Competition Management Office Source Approval Program at their own expense.

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.

HEIDI TREADWAY Date Contracting Officer

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

TREADWAY.HEI

DI.E.1299371855

Digitally signed by

TREADWAY.HEIDI.E.1299371855

Date: 2020.02.18 12:51:38 -05'00'