JA SPE7LX-20-R-X063 - reviewed_Redacted.pdf

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7 NSN LTC (CL20119005)
Solicitation number
SPE7LX20RX063
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This document provides a justification for a sole source contract award. The contract is for the procurement of seven national stock numbers from a single vendor, MarathonNorco. The items are commercial spare parts for various military weapon systems including the 11F, 05F, STF, MVF, WAN, IYN, JGN, EXN, 23N, and 26F systems. A sources sought notice was posted on January 7, 2021 with no responses received. The procurement was also synopsized on July 6, 2020 and February 5, 2021. MarathonNorco is identified as the only approved source for the items in the Approved Manufacturer Parts List and Procurement Identification records. The justification cites the vendor as the only source with the necessary technical data and manufacturing knowledge to produce the parts, which were designed and tested for the specified weapon systems. The contract was awarded on September 29, 2022 to an unknown vendor for an unknown amount.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-X063

For Official Use Only Source Selection Information See FAR 2.101 and 3.104

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

NSN CAGE SOURCE PART NUMBER AMC/AMSC

5935012451949 74025 MarathonNorco 16163-023 3C 5935015281350 74025 MarathonNorco 16163-026 3C 6140007123053 74025 MarathonNorco 19205-001 3C 6140014496418 74025 MarathonNorco 28656-002 3Z 6140014950488 74025 MarathonNorco 33033-001 3Z 6140015281722 74025 MarathonNorco 32966-001 3D 6160011028970 74025 MarathonNorco 39693-001 3C

The use of the authority cited below:

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

The use of the authority cited below:

[X] 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. For those items designated 3/D, MarathonNorco is uniquely qualified because it is the only known source with the data or rights to the data necessary to manufacture the items.

[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 for 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. For those items designated 3/C, MarathonNorco is the only source approved by the design control activity because MarathonNorco retains the data rights, manufacturing knowledge, or technical data that is not economically available to the Government, and the data or knowledge is essential for maintaining the quality of the part.

[X] AMSC Z. This part is a commercial/nondevelopmental/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 and 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid. For those items designated 3/Z, MarathonNorco has material available for these items; the Government knows of no other sources, nor is technical data available. DLA is working with DMCA CIG to develop other sources.

There is one approved source for these items, CAGE 74025, MarathonNorco. The Approved Manufacturer Parts List (AMPL) and the Procurement Identification (PID) state that MarathonNorco is the only approved source for these items. This source is uniquely qualified because they are the only source that possess the necessary technical data to manufacture these items. The Product Specialist verified the AMC/AMSC codes on 8/30/2021and has certified that all means to obtain a technical data package adequate for manufacture of these items have been exhausted. Tech has certified that the data is complete and accurate.

Although these items are commercial, these items are repair/replacement parts incorporated into specific military weapon systems. It is essential that the Government procure these items from the approved source. These items provide support for the following Weapon Systems; 11F, 05F, STF, MVF, WAN, IYN, JGN, EXN, 23N, 26F and AYF. These items from MarathonNorco were designed for and tested for these weapons systems, and are the only items DLA can ensure will operate properly in the identified weapons systems in accordance with military requirements.

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

[X] Due to age of the requirement, a sources sought notice was posted on beta.SAM.gov (formerly FedBizOps) on 1/7/2021 with a response date of 1/14/2021. There were no responses received as a result of the sources sought.

[X] The acquisition was synopsized on July 6, 2020. . This acquisition will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS). Acquisition was re-synopsized on 2/5/2021 and was synopsized for 7 days.

[X] Other: Any sources received from Market Surveys and/or previous procurements will be solicited.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. The items will be solicited in accordance with FAR 13.5 – Simplified Procedures for Certain 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 extend 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. Cost or pricing data in accordance with FAR 15.403-4 will not be required as NSNs have been determined commercial. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR 15.4. The buyer may request information other than cost or price data to support price reasonableness if necessary. Also, the proposed prices will be reviewed for fairness and reasonableness using price analysis based on comparison of the offer received with the past buy history and movement of the Producer Price Index. Based upon the above techniques, the contracting officer hereby anticipates that costs to the Government will be determined fair and reasonable.

Although these items are commercial, it is essential that the Government procure these items from the approved source. A CIG report was received to further determine commerciality and is an attachment to the Acquisition Planning checklist in the eContract file. These items were also determined to be commercial on the previous contracts. Based on the above, the contracting officer has made the determination that the NSNs on this solicitation are commercial and will be solicited under FAR Part 13.5. A separate memorandum detailing this determination has been prepared and is included in the solicitation file..

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