JA_SPE7LX20RX058_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-X058

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:

NSN BRIEF DESCRIPTION

ANNUAL

DEMAND

QUANTITY

EST.

ANNUAL

DEMAND

VALUE

AMC AMSC KID WSIC

6130013880245 ANALYZER-

CHARGER,BA 45 3 Z 8 N

6130014467154 CHARGER,BATTERY 237 3 Z 3 Y

6130014774703 CHARGER,BATTERY 280 3 D 3 L

6130015109594 ANALYZER-

CHARGER,BA 765 3 D 1 K

6130015211317 CHARGER,BATTERY 36 3 D 7 N

6130015211329 CHARGER,BATTERY 51 3 D 3 F

6130015468432 CHARGER,BATTERY 892 3 D 1 N

6130016099818 CHARGER,BATTERY 140 3 D 3 N

6625014638499 TEST SET,BATTERY 1,444 3 D 1 F

3-year Estimated Value =

5-year Total Estimated Value = Contract Maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one (1) three-year base period and two (1) one-year option periods. The five-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, US Air Force, and US Marine Corps:

Material # WSDC WSIC Weapon System

014467154 AGF Y MIDS JTRS AN/USQ190

014774703 29A L CARRIER, PERS M-113A1, M-113A2, M-113A3

014774703 PRF T REAPER MQ-9 AND MQ-1 PREDATOR - UNMANNED AERIAL

VEHICLE

015109594 96F K SUPPORT EQUIPMENT, C-135 AIRCRAFT

015211329 6FM F HOWITZER MEDIUM TOWED LIGHT WEIGHT 155

015211329 FJA Z LIGHTWEIGHT 155MM TOWED ARTILLERY SYSTEM, M777A2

014638499 6FM F HOWITZER MEDIUM TOWED LIGHT WEIGHT 155

It is noted that not all NSNs on this acquisition are weapon-system coded.

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 items:

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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FSC NIIN CAGE PART NUMBER

6130 013880245 00NQ8 735X453

6130 014467154 00NQ8 735X467

6130 014774703 00NQ8 746X725

6130 015109594 00NQ8 741X491

6130 015211317 00NQ8 735X655

6130 015211329 00NQ8 735X667

6130 015468432 00NQ8 735X740

6130 016099818 00NQ8 746X840

6625 014638499 00NQ8 741X800

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 is based on:

[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.

[X] AMSC Z. This part is a commercial/no-developmental/off-the-shelf item.

[X] Other: (Explain) Per the approved manufacturers’ list for these NSNs in SAP (as received from the Defense Logistics Information Services), only CAGE 00NQ8 has 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 NSNs have the following WSIC codes:

NSN WSIC Definition 6130013880245 N Not weapon-system coded 6130014467154 Y Level C, reduction in effectiveness of end item 6130014774703 L, T Level B, failure will render end item inoperable; Level C, failure will render end item inoperable 6130015109594 K Level A, failure will not render inoperable 6130015211317 N Not weapons system coded 6130015211329 F, Z Level A, failure will render end item inoperable; Level C, failure will not render inoperable 6130015468432 N Not weapon system coded 6130016099818 N Not weapon system coded 6625014638499 F Level A, failure will render end item inoperable

These are replacement parts utilized in support of the electrical systems of the various weapon systems, or are standalone items used during maintenance. Product from the approved CAGE is the only known replacement that will ensure that either the batteries used in the various systems operate properly (analyzers) or are charged properly (chargers). Inappropriate chargers attached to batteries will cause damage to the batteries. Therefore, competition must be limited to offers of the product of CAGE 00NQ8. Most recent technical reviews were conducted for the NSN in March 2020 (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 March 2020. The NSNs were determined to be suitable for a LTC at that time by SAPD’s product specialists and certified as complete and accurate. See attachment #1, CL19337002 Technical Cert.

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

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[X] The acquisition will be synopsized on or about 08/07/2020.

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

This will be a five-year, firm fixed price, indefinite delivery indefinite quantity type contract. The five-year period is inclusive of one (1) three-year base period and two (2) 1-year option periods. As such, the price analysis for the future years 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 only one offer of the sole approved manufacturer’s part, from the approved manufacturer.

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 for these items, 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. The approved OEM was contacted by the strategic sourcing specialist regarding interest in a potential LTC. PulseTech Products Corp. provided completed survey documents on December 2019, and the Excel spreadsheet was updated by them in July 2020.

Sources Sought Notice:

On 07/01/2020, 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 07/09/2020. That sources sought notice contained the NSNs. As of 07/14/2020, no responses have been received.

Market Research Conclusion:

A market survey was conducted: December 2019 through July 2020.

Total number of vendors contacted: 2 Names of vendors contacted and responding:

CAGE 00NQ8 / PulseTech Products Corp. – responded;

CAGE 6PZL1 / Larkos Packing and Distribution Inc. – 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 00NQ8 / PulseTech Products Corp. indicated the following:

i.

ii. Small manufacturer offering own product

iii. Interested in LTC iv.

vii. Considers items to be commercial in nature viii.

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2. CAGE 6PZL1 / Larkos Packing and Distribution Inc. responded that they were not interested as PulseTech quotes direct to the Government.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of ‘Y’, ‘N’, or is blank depending on NSN, indicating the technical community has or has not made the recommendation to determine the items non-commercial. The entries are listed below.

NSN COTS entry 6130-01-388-0245 Y 6130-01-446-7154 blank 6130-01-477-4703 N 6130-01-510-9594 N 6130-01-521-1317 N 6130-01-521-1329 blank 6130-01-546-8432 N 6130-01-609-9818 N 6625-01-463-8499 N The approved manufacturer considers all these items to be commercial in nature. The contracting officer verified that all of the NSNs are in fact available for purchase by the general public on the manufacturer’ e- Commerce website. See attachment #2, 00NQ8 commercial support. 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. Also, the corresponding part numbers for NSNs 6130-01-477-4703, 6130-01-510-9594, and 6130-01-609-9818 are listed on the manufacturer’s GSA schedule #GS-07F-0473M (ends: Aug 11, 2022), but not all NSNs on this project are included in the GSA schedule. Therefore the contracting officer has determined that conducting the acquisition in accordance with FAR Part 8 and using the GSA schedule would not be in the best interests of the Government. Lastly, all of these items were previously determined commercial on solicitation SPE7LX-16-R- 0006, and the contracting officer sees no reason to overturn that previous determination. See attachment #3, AP SPE7LX16R0006 and attachment #4, J&A SPE7LX16R0006.

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.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) PulseTech Products Corp. / CAGE 00NQ8

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

[X] The solicitation contains DLAD Procurement Notes L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items.

[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 solicitation SPE7LX-16-R-0006’s justification and approval is attached.

Approvals appear on the next page.

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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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

Date

APPROVAL REQUIREMENTS

Competition Advocate

Competition Advocate Signature

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

Attachment:

Technical Cert 00NQ8 commercial support

AP SPE7LX16R0006

J&A SPE7LX16R0006

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

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.07.29 12:09:24 -04'00'

07/28/2020

07/29/2020