JA PR84463601 Redacted.pdf

PDF 180 KB Posted

Attached to
PARTS KIT, INFLATOR Federal contract opportunity
Solicitation number
SPE7L320Q0550
Issued by
Defense Logistics Agency Land and Maritime

About this file

This justification document outlines a sole source procurement by the Defense Logistics Agency Land and Maritime for 869 inflator parts kits from Milton Industries. The kits are required to support all wheeled vehicles and have a total estimated value of $700,000. Milton Industries is identified as the only approved source for the proprietary part number 17-6F-506 due to engineering source approval requirements. A market survey found no other interested suppliers. The solicitation will include provisions to allow offers for alternate items and will be publicly posted from April 27 to May 7, 2020 prior to award of a firm fixed price contract to Milton Industries by June 30, 2020.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L3-20-Q-0550

DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

[X] 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 using simplified procedures IAW FAR 13.5 per 41 USC 1901.

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

BRIEF

DESCRIPTION

NSN and P/N QUANTITY TOTAL

VALUE

AMSC

Inflator Parts Kit 4910-01-668-5017, 17-6F-506

869 C

Identify end item, weapon system, or class of item: All wheeled vehicles.

Estimated Total Value:

This is a definite quantity contract for a total quantity of 869 Kits.

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

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

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

Milton Industries (94894) part number 17-6F-506 is the only approved item.

The use of the authority cited below:

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

The use of the authority cited is based on:

1) 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.

A review of the document availability code reveals that the drawings for this item cannot be made available to the general public and manufacturer Milton Industries is uniquely qualified to manufacture this item because they are the only owners of the technical drawings and data. On 17 September 2019 a referral was sent to Product Specialist to certify the accuracy of AMC/AMSC and the list of approved sources.

replied on 17 September 2019 that the coding and approved source list was accurate and complete; referral can be found in Records Management.

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

[X] The acquisition will be synopsized for 3 days on or about 27 April 2020. At the completion of the synopsis period, the PR will be solicited on the internet for 10 days, via the DLA Internet Bid Board System (DIBBS).

7. This is a definite quantity contract, for a quantity of 869 kits, with no option. Price analysis will be conducted using historical pricing, the Producer Price Index (PPI), and the learning curve analysis. The offeror(s) will not be required to submit Certified Cost and Pricing data due to the dollar amount. A request for Other Than Certified Cost or Pricing Data may be made by the buyer if needed. Based on the above techniques, Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

There is one approved source, Milton Industries (94894). Milton quoted on the previous procurement. A sources sought was posted to FBO on 17 Sept 2019 and closed on 23 Sept 2019. No companies expressed interest. The most recent solicitation for this NIIN was canceled, but it did produce two small business dealers offering Milton’s part. Those dealers were Warfighter Focused Logistics (6V4L8) and AMS Industries (6PVX3).

A market survey was sent to the only approved source. The OEM directed the survey to their authorized dealer.

The dealer stated that this kit is commercial-of-a-type, and provided a screen shot of a similar item that is for sale to the general public (attachment 1). The buyer talked to the product specialist, who stated the kit is similar to the commercial version; but has special modifications. The modifications are minor in nature. The modifications only change the rate of airflow and increase the number of quick connectors on the housing unit. The changes do not significantly alter the commercial version and are not considered major.

The product specialist also provided a spreadsheet (attachment 2) that identifies the following: items in the kit, the commercial equivalent of the items, pricing of the same or similarly commercial equivalents online, and the commerciality type of each item. The commercial and is commercial-of-a-type components within the kit account for 69% of the historic pricing. This also indicates the commercial modifications are only minor in nature.

A firm fixed price contract will be issued. Material Master does not show this NSN as commercial, however it is going to be procured using as a commercial-of-a-type item. This item is developed and manufactured for military use only; but the process is a minor modification from the commercial products Milton sells to the public.

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

A market survey was conducted on/during 09/17/2019 thru 09/23/2019 Total number of vendors contacted: One. This was Milton Industries (94894).

Techniques used to conduct survey: E-mailed questionnaire Types of information requested: Size of company, type of company, commercial status of item, if catalog/price listing info was available, is NSN a stocked item, is vendor interested in submitting an offer, approximate delivery schedule, quantity sensitivity, FOB and inspection/acceptance terms.

Milton returned the survey on 09/17/19, and provided the below information:

Small Business- Manufacturer

Item is not commercial

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 data presently available reflects the minimum needs of the Government.

10. A listing of sources indicating an interest in the acquisition:

Milton Industries (94894) (via the market survey).

Warfighter Focused Logistics (6PVX3) (due to quoting of the cancelled previous RFP).

AMS Industries (6PVX3) (due to quoting of the cancelled previous RFP).

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

[X] This solicitation will contain DLAD Procurement Notes L04 (offers for part numbered items) and M06 (evaluation of offers for part numbered items) which permit offers to quote alternate items.

Per PGI 206.304 (a)(1), the requirement states, “The justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.” The only previous purchases were below the SAT, and therefore did not require a J&A; so there are no previous justifications available from them. The most recent solicitation however was a Large, and the J&A from that one is attached.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Joseph Brookins, Contract Specialist

Monica Whiting, Contracting Officer

(X) Up to $700,000Contracting Officer

WHITING.MONIC

A.L.1378381815

Digitally signed by

WHITING.MONICA.L.137838181

Date: 2020.04.24 10:22:07 -04'00'

BROOKINS.JOSEP

H.DOUGLAS.12398

97254

Digitally signed by

BROOKINS.JOSEPH.DOUGLAS.

1239897254 Date: 2020.04.24 10:01:07 -04'00'

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