JA-SPE7LX-24-R-X048 redacted_Redacted.pdf
PDF 1 MB Posted
- Attached to
- Air Brake and Pump
- Solicitation number
- SPE7LX25D5023
About this file
This document is a Justification for Other Than Full and Open Competition (J&A) for Solicitation SPE7LX24RX048 issued by the Defense Logistics Agency (DLA) Land and Maritime. The solicitation seeks to procure two specific military parts: an Air Brake Chamber (NSN 2530-01-5874444) and a Hydraulic Pump (NSN 4320-01-6039072), both from Navistar Defense LLC as the sole approved source. The acquisition is for a Firm, Fixed Price Contract with a base year and one option year, with a total quantity of 244 Air Brake Chambers and 11 Hydraulic Pumps.
DLA conducted extensive market research from September to November 2023, including a Sources Sought notice, market surveys to manufacturers and dealers, and research through various platforms. Despite these efforts, only Navistar Defense was identified as capable of supplying these items due to proprietary technical data and manufacturing rights. The contract will be solicited under 10 U.S.C. 3204(a)(1) as a non-competitive procurement, with planned solicitation on beta.SAM.gov on September 9th, 2024. The government determined the items are commercial and will ensure fair and reasonable pricing through historical price comparisons and independent cost estimates.
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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7LX24RX048
DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018) only known source to own or possess the data or rights to the data necessary to manufacture these items. On August 27th, 2024, Quality Assurance Specialist Mr. certified that the technical information, including the AMC/AMSC code and approved source was complete and accurate. The tech cert is attached, along with copies of the Product Master for each associated NSN. DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government. The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).
Because only the approved sources possess the complete technical data for the item listed, they are the only sources acceptable that can manufacture this item. The Contracting Officer has relied upon the Product Specialist’s technical review of these NSNs and determined the only source capable of supplying these items to the Government is Navistar Defense LLC.
6. Efforts to ensure that offers are solicited from as many sources as practicable are:
[X] The acquisition will be synopsized on or about September 9th, 2024 on beta.SAM.gov.
[X] Manufacturer will be solicited.
[X] Unaffiliated dealers will be solicited.
[X] The Government published a Sources Sought on the beta.SAM.gov website for seven business days from October 25th 2023 to November 1st 2023 and received no responses.
[X] The Contract Specialist sent market surveys to vendors who have previously quoted to the DLA on these NSN and received 4 responses.
[X] Other: Solicitation will be posted on the DLA Internet Bid Board System for a minimum of 30 days.
7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.
This solicitation is being issued in accordance with FAR Part 13.5, Simplified Procedures for Certain Commercial Products and Commercial Services. The Contracting Officer will ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The buyer only intends to award the NSNs if a fair and reasonable price determination can be made.
Contract history will be reviewed for historical pricing to compare to the offered prices received. Historical prices will be indexed using Producer Price Index (PPI) data for the North American Industry Classification System for each NSN. Additionally, the historical prices will be compared with quantity as a factor to ensure the comparisons are as similar as feasible. Similar NSN may be compared for price if their technical characters can be determined by the product specialist team to be detailed and similar enough for adequate comparison. Contract length and price escalation will be evaluated using PPI data and trends to estimate potential inflation.
The threshold for obtaining Certified Cost or Pricing Data (CCPD) of $2 million (per FAR 15.403-4(a)(1)) has not been met for this acquisition and CCPD will not be required. Additionally, Certified Cost and Pricing Data is not required when acquiring Commercial items (per FAR 15.403-1(b)(3)). Informal cost and price data may be requested from the vendor. The Buyer and Contracting Officer may still request input by the DLA’s Pricing Office to assist in determining the proposed prices received fair and reasonable. The Contract Specialist will request a should-cost independent government estimate from the Value Engineering VE- Reverse Engineering Branch to help assess a reasonable price.
8. Market Research/Efforts to Obtain Competition:
DLA Land and Maritime conducted various forms of market research to improve competition, which is summarized below.
DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)
Aftermarket Supply NSN screenshot
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. Please see Attachment #1 for Technical Certification provided by Quality Assurance Specialist, .
10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)
- Navistar Defense, large business manufacturer
- Global Logistics Strategies, Service-Disabled Veteran Owned small business dealer
- VSE Corporation, large business dealer
Based on the procurement history and technical reviews by the Product Specialists, the solicitation will be solicited with Other Than Full and Open Competition under the authority of 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1(a)(2). The Contracting Officer evaluated the opportunity to set-aside the procurement for small businesses. A set aside is not suitable because there is no expectation that two or more small business will offer the material of one small business concerns, in accordance with FAR 19.502-2(b).
11. The following actions are being taken to identify additional sources:
[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items
[X] Per PGI 206.304, 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.” Previous J&A is available and reviewed from Contract SPE7LX19D0106. This previous J&A indicates that the requirement was to be synopsized on
DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)
FedBizOpps and dealers of the manufacturer would be solicited. Market research was conducted by sending market surveys to manufacturers and distributors that received awards in the past. The solicitation also contained the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items.
Based on this information from the previous J&A, it is determined that the planned actions to remove any barriers to competition were completed. 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. At this time, the requirement/guidance in PGI
206.304 has been fulfilled.
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.
Attachment #1: Technical Certification Attachment #2: Previous JA SPE7LX19D0106 Attachment #3: Navistar parts catalog Attachment #4: tech referral for commerciality Attachment #5: aftermarket supply NSN screenshot Attachment #6: 2530-015874444 product master Attachment #7: 4320-016039072 product master
Contracting Officer Date
APPROVAL/CERTIFICATION
I have reviewed and approve this justification:
Competition Advocate Date
8/27/2024
8/28/2024
BROOKINS.NORMA.V.
1402247289
Digitally signed by
BROOKINS.NORMA.V.1402247289
Date: 2024.08.27 15:28:55 -04'00'
WIEBUSCH.JAMIE.1
251897324
Digitally signed by
WIEBUSCH.JAMIE.1251897324
Date: 2024.08.28 10:00:21 -04'00'
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