JA_SPE7LX20RX040_redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-X040

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

Source Selection Information – See FAR Part 2.101 and 3.104.

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[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.

FAR Subpart 13.5 procedures are being used in accordance with 41 U.S.C. 1901.

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

BRIEF DESCRIPTION NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST. ANNUAL

DEMAND

VALUE AMC AMSC KID WSIC

Filter Element, Intake 2940-01-205-6038 2,017 1 B 1 F 1-year Estimated Value =

2-year Total Estimated Value Contract Maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a two-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one (1) one-year base period and one (1) one-year option period. The two-year contract period estimated value is The contract maximum is

Identify end item, weapon system, or class of item:

The items are used on the following weapon systems across the US Army:

Material # WSDC WSIC WSEC WSGC Seq Weapon System

012056038 MRA F 1 A 01 THIS WILL BE THE PARENT WSDC FOR ALL ARMY MRAP WSDCS

012056038 29A L 1 B 04 CARRIER, PERS M-113A1, M-113A2, M-113A3

012056038 84A T 1 C 05 CARRIER, CARGO 6-TON (M548 & M548A1)

012056038 M2A T 1 C 05 BAE CAT 2 (MRAP) NSN:2320-01-552-4677

012056038 MIA T 1 C 05 BAE/AMBULANCE CAT 2 (MRAP LRIP1-9) NSN:2355-01-558-1053

012056038 MMA T 1 C 05 RCV MED MINE PROTECTED VEHICLE (MMPV)MDL: 1226,1227,1228,1229

012056038 N1A T 1 C 05 MRAP BAE RG33 AUV (SOCOM)

012056038 N2A T 1 C 05 MRAP BAE RG33 SV (SOCOM)

012056038 OVZ T 1 C 05 OPPOSING FORCE SURROGATE VEHICLE (OSV) USES M113 CHASSIS, BFVS

012056038 MCA Z 3 C 15 BAE/AMBULANCE CAT 2 (MRAP LRIP10) NSN:2355-01-564-4340

012056038 MDA Z 3 C 15 BAE CAT 2 (MRAP LRIP10) NSN:2355-01-562-6675

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.

5. Acquisition is restricted only to the following source(s) of supply for the item:

CAGE 18265 / Donaldson Compay, Inc.; CAGE 60047 / Pall Aeropower Corp.

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:

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[X] 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.

[X] Other: (Explain) CAGEs 18265 and 60047 are the only manufacturing sources specified on the source control drawing. In addition, per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only CAGEs 18265 and 60047 have been identified as having the proper complete technical data and manufacturing expertise to supply the items to DLA and the using military services. The Government does not have rights to the technical data. The NSN has a WSIC code of F, indicating that failure of the part will render the end item inoperable. This is a replacement part incorporated into a higher level assembly used for air filtration into the engines of the various military vehicles in which it is used. If the air filtration unit does not properly filter out potential contaminants in the incoming air to the engine, the engine could be subject to damage and possibly render the vehicle inoperable. This replacement item is integral to proper operation of the overall filtration unit, and products from the two approved CAGEs are the only know replacements that will ensure the air filtration unit operates properly when installed in the vehicles. Therefore, competition must be limited to offers of the product of CAGE 18265 and 60047. Most recent product specialist of record technical reviews were conducted in for the NSNs in May 2019 (per SAP) and no additional sources were identified at that time. In addition, a technical review in support of a potential LTC was performed in February 2020. The NSN was determined to be suitable for an LTC at that time by SAPD’s product specialists.

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

[X] The acquisition will be synopsized on or about 04/25/2020.

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

This will be a two-year, firm fixed price, indefinite delivery indefinite quantity type contract. The two-year period is inclusive of one (1) one-year base period and one (1) 1-year option period. As such, the price analysis for the future year will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes. Based on the results of market research, the buyer anticipates receiving offers of one of the approved manufacturer’s part from multiple dealers. Adequate price competition is not expected to exist at time of evaluation of proposals. The buyer anticipates using comparison to past reasonable purchases (adjusted for passage of time and quantity sensitivity), in addition to comparison to commercial market prices, to support a reasonableness determination.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.beta.sam.gov. Both OEMs were contacted by the contracting officer regarding interest in a potential LTC. OEM Pall Aeropower Corp. told the contracting officer that their part was obsolete with no replacement and they would not be participating in the acquisition.

The other OEM, Donaldson Company, Inc. indicated that they would only support a two-year period of

(May 2018) P a g e | 3 pricing, but would not directly support the acquisition. They instead directed the contracting officer to reach out to their authorized distributor, Brighton Cromwell Inc. / CAGE 3NNX8 for LTC support. Brighton Cromwell, Inc. provided completed survey documents on April 7, 2020. In addition, previous LTC holder Cavanaugh Government Group, LLC / 5UY76 returned completed survey documents, indicating their interest in the upcoming acquisition.

Sources Sought Notice:

On 03/25/2020, a Sources Sought notice was posted to www.beta.sam.gov, which also contained attached market survey documents. The date of return referenced on the sources sought notice was 04/01/2020. That sources sought notice contained the NSN. As of 04/07/2020, no additional manufacturing sources have responded to the notice. The contracting officer did receive two responses from surplus material dealers offering 1 piece each. Both surplus material dealers were advised that the Sources Sought notice was intended to request additional manufacturing sources, and that they were welcome to submit quotes in support of the LTC when the RFQ was made public via DLA DIBBS.

Market Research Conclusion:

A market survey was conducted: 02/04/2020 – 04/07/2020.

Total number of vendors contacted: 6 Names of vendors contacted and responding:

CAGE 1Y875 / Southern Automotive Wholesalers, Inc. – did not respond;

CAGE 3NNX8 / Brighton Cromwell, Inc. – responded;

CAGE 5UY76 / Cavanaugh Government Group, LLC – responded;

CAGE 02769 / Lockheed Martin Corp. – responded;

CAGE 18265 / Donaldson Company, Inc. – responded;

CAGE 60047 / Pall Aeropower Corp. – responded.

Techniques used to conduct survey: E-mail, telephone.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

1. CAGE 3NNX8 / Brighton Cromwell, Inc. indicated the following:

i.

ii. Small dealer offering product of 18265

iii. Interested in LTC iv.

viii. Does not consider item to be commercial in nature ix.

2. CAGE 5UY76 / Cavanaugh Government Group, LLC indicated the following:

i.

ii. Small dealer offering product of 18265

iii. Interested in LTC iv.

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vii. Does not consider item to be commercial in nature viii.

ix.

3. CAGE 02769 / Lockheed Martin Corp. indicated they were not interested in the acquisition.

4. CAGE 18265 / Donaldson Company, Inc. indicated they were not directly interested in the acquisition but that their authorized distributor, Brighton Cromwell, Inc. would supply pricing for the LTC.

5. CAGE 60047 / Pall Aeropower Corp., indicated they were not interested in the acquisition as they considered their part obsolete with no replacement.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of ‘No’ for the NSN, indicating the technical community has made the recommendation to determine the item non-commercial.

One of the approved manufacturers also does not consider this item to be commercial in nature. However, as engine air filters are generally considered to be commercial, or commercial of-a-type, the contracting officer researched other Donaldson engine air filters via the Donaldson website (https://shop.donaldson.com/store) and they, as a manufacturer, offer thousands of different air filters across multiple industries, including aerospace, agriculture, automotive, electronics, manufacturing, marine, medical, and pharmaceuticals among others. While the manufacturer does not offer this particular part number via their website, they have many other air filtration products readily available for purchase by the general public via normal commercial outlets such as brick and mortar stores or online retailers, including those used in large diesel engine applications. While this specific air filter element has been designed to fit in the various wheeled vehicles it is used in, it is of a type customarily used by the general public for non-governmental purposes, and has had military-specific modifications based on the weapon system design. Therefore, the contracting officer has determined that this item meets the FAR Part

2.101 definition of a “commercial item” under (1)(i), and the acquisition will be conducted under FAR Part 13.5, Acquisition of Certain Commercial Items. In addition, this NSN was previously determined commercial under solicitation SPE7LX-18-R-X027, and the contracting officer sees no reason to overturn the previous determination. Lastly, the NSN is not listed on any GSA Federal Supply Schedules.

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. It is noted that this NSN is described by a source controlled drawing, 19207-12349505.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Brighton Cromwell, Inc.; Cavanaugh Government Group, LLC.

11. These items are subject to the following methods of locating additional sources:

[X] The solicitation contains DLAD Procurement Note L22, Restriction of Alternate Offers – Source-Controlled Drawing.

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. Previous contract SPE7L1-20-D-0003’s justification and approval is attached.

Approvals appear on the next page.

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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.

Carol M. Bucher Date Contracting Officer

APPROVAL/CERTIFICATION

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

Competition Advocate Date Signature

APPROVAL REQUIREMENTS

[X] $700,000 to $13,500,000 Competition Advocate

Attachment:

Technical Certification

J&A SPE7L1-20-D-0003

Digitally signed by

BUCHER.CAROL.M.1267565690

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=BUCHER.CAROL.M.1267565690 04/15/2020

04/17/2020

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.04.17 08:11:40 -04'00'