JA_SPE7LX20RX059_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-X059

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

Source Selection Information – See FAR Part 2.101 and 3.104.

(May 2018) P a g e | 1

[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.

Federal Acquisition Regulation (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:

NATIONAL

STOCK NUMBER

(NSN)

BRIEF DESCRIPTION

ANNUAL

DEMAND

QUANTITY

EST. ANNUAL

DEMAND

VALUE

AMC AMSC KID WSIC

2520-01-545-0405 PROPELLER SHAFT

WIT 142 3 B 3 F

2530-01-470-5919 VALVE,RELAY,AIR

PRE 814 3 B 1 F

2530-01-570-7735 TIE ROD,STEERING 188 $ 3 D 3 F

5330-01-362-6102 SEAL,PLAIN ENCASED 1,867 3 R 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 (FFP), Indefinite Delivery Indefinite Quantity (IDIQ) type contract. The five-year period is inclusive of one (1) three-year base period and two (2) 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 and US Marine Corps:

Material # WSDC WSIC Weapon System

2520015450405 3OM F LAUNCHER, ROCKET, HIG

2520015450405 XEA F

FAMILY OF MEDIUM AND LIGHT TACTICAL VEHICLES

(FMTV)

2520015450405 MBA T BAE/AH-CAT I (MRAP LRIP10) NSN:2355-01-561-2717

2520015450405 MYA T BAE/AH CAT I (MRAP) NSN:2320-01-555-0908

2520015450405 MZA T BAE/AH CAT 2 (MRAP) NSN:2320-01-555-0919

2530014705919 62A F MULTIPLE LAUNCH ROCKET SYSTEM (MLRS)

2530014705919 XEA F

FAMILY OF MEDIUM AND LIGHT TACTICAL VEHICLES

(FMTV)

2530014705919 3OM K LAUNCHER, ROCKET, HIG

2530014705919 MBA Z BAE/AH-CAT I (MRAP LRIP10) NSN:2355-01-561-2717

2530014705919 MYA Z BAE/AH CAT I (MRAP) NSN:2320-01-555-0908

2530014705919 MZA Z BAE/AH CAT 2 (MRAP) NSN:2320-01-555-0919

2530015707735 39A F MISSILE, PATRIOT

(May 2018) P a g e | 2

2530015707735 3OM F LAUNCHER, ROCKET, HIG

2530015707735 XEA F

FAMILY OF MEDIUM AND LIGHT TACTICAL VEHICLES

(FMTV)

5330013626102 XEA F

FAMILY OF MEDIUM AND LIGHT TACTICAL VEHICLES

(FMTV)

5330013626102 BTA L ARMORED SECURITY VEHICLE, MODEL XM1117

5330013626102 VHF T SPECIAL, MISC. SPARES, VEHICLES

5330013626102 MBA Y BAE/AH-CAT I (MRAP LRIP10) NSN:2355-01-561-2717

5330013626102 MYA Y BAE/AH CAT I (MRAP) NSN:2320-01-555-0908

5330013626102 MZA Y BAE/AH CAT 2 (MRAP) NSN:2320-01-555-0919

5330013626102 3OM K LAUNCHER, ROCKET, HIG

5330013626102 8NA Z CMTV CAIMAN MULTI-THEATER VEHICLE M1248

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:

Commercial and Government Entity (CAGE) code 78500 / Meritor Heavy Vehicle Systems, LLC, the original equipment manufacturer (OEM).

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 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.

[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 R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid.

[X] Other: (Explain) Per the approved manufacturers’ list for these NSNs in SAP (as received from the Defense Logistics Information Services), only CAGE 78500 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 weapons system indicator codes

(WSIC):

(May 2018) P a g e | 3

NSN P/N WSIC Definition

2520015450405 16XNS933D226 F, T Level A, failure will render end item inoperable (F); Level C, failure will render end item inoperable (T)

2530014705919 R950130 F, K, Z Level A, failure will render end item inoperable (F); Level A, failure will not render end item inoperable (K); Level C, failure will not render end item inoperable (Z)

2530015707735 A1-3102-N-4616 F Level A, failure will render end item inoperable

5330013626102 KIT-4451 F, K, L, T,

Y, Z

Level A, failure will render end item inoperable (F); Level A, failure will not render end item inoperable (K); Level B, failure will render end item inoperable (L); Level C, failure will render end item inoperable (T); Level C, reduction in effectiveness of end item (Y); Level C, failure will not render end item inoperable (Z)

These are replacement parts utilized in support of the power transmission, braking, suspension and engine systems of various vehicles, as well as missile and rocket launchers. Product from the approved CAGE is the only known replacement that will ensure that these various systems operate properly or are maintained properly.

Therefore, competition must be limited to offers of the product of CAGE 78500. 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 long-term contract (LTC) was performed in March 2020.

The NSNs were determined to be suitable for an LTC at that time by the Strategic Acquisition Programs Directorate’s (SAPD) product specialists. See attachment #1, CL20023001 Technical Cert.

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 11, 2020.

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

This will be a five-year FFP IDIQ 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 dealer offers of the single approved OEM’s products. 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 conducted various forms of market research including the publishing of a formal Sources Sought Notice (SSN) and market survey to www.beta.sam.gov. Dealers receiving purchase orders previously for these items, in addition to the previous LTC holder, were contacted by the strategic sourcing specialist regarding interest in a potential LTC.

Sources Sought Notice:

On July 6, 2020, an SSN was posted to beta.sam.gov, which also contained attached market survey documents. The date of return referenced on the SSN was July 13, 2020. That SSN contained the NSNs. As of August 20, 2020, no responses have been received.

P a g e | 4

Market Research Conclusion:

A market survey was conducted: March through August 2020.

Total number of vendors contacted: eight (8) Names of vendors (with CAGE code) contacted and responding:

Meritor Heavy Vehicles Systems, LLC / 78500 – responded;

HDT Vehicle Component Sales, Inc. / 1SER6 – responded;

Wheeler Bros., Inc. / 55683 – responded;

Penn Power Group / 62860 – responded;

Badger Truck Center / 06YZ5 – responded;

Navistar Defense, Inc. / 338X5 – did not respond;

DriveLine, Inc. / 0GE52 – did not respond; and CBT Corporation / 4N361 – did not respond.

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. Meritor Heavy Vehicle Systems, LLC initially expressed interest in the acquisition, but on August 20, 2020, it told the contracting officer that it would not be supporting the acquisition directly and to work through its dealer/distributors for the parts.

2. HDT Vehicle Component Sales, Inc. / 1SER6 indicated the following:

i. Point of Contact (POC)

ii. Small dealer offering product of large OEM CAGE 78500

iii. Has 7 employees

iv. Interested in LTC v.

viii. Considers items to be commercial in nature, not able to provide evidence of commercial sales ix.

3. Wheeler Bros., Inc. / 55683 indicated the following:

i. POC

ii. Large dealer offering product of large OEM CAGE 78500

iii. Interested in LTC iv.

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

4. Penn Power Group / 62860 indicated the following:

i. POC

ii. Large dealer offering product of large OEM CAGE 78500

iii. Interested in LTC iv.

(May 2018) P a g e | 5 vi.

vii. Considers items to be commercial in nature, willing to supply invoices viii.

x. Delivery estimated to be 120 - 180 days

5. Badger Truck Center / 06YZ5 responded that it was not interested as it is no longer a source for CAGE

78500 parts.

Information received regarding the commerciality of the item(s): MM03 commercial-off-the-shelf (COTS) field has an entry of ‘N’, or is blank depending on NSN, indicating the technical community has or has not made a recommendation regarding the commerciality of the items. Only NSN 5330-01-362-6102 has an entry of ‘N’ in the COTS field; the other 3 NSNs have a blank entry in that field. The two NSNs previously on contract SPE7LX-16-D-0064 were determined commercial for that acquisition. Those NSNs are 2530-01-470-5919 and 5330-01-362-6102. The contracting officer verified that all of the NSNs are available for purchase/requisition by the general public on the OEM’s e-Commerce website: https://www.meritorpartsxpress.com. See attachment #2, 78500 commercial part availability. Therefore, the contracting officer determined that these items meet 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. Lastly, the contracting officer saw no reason to overturn the previous commercial determination for solicitation SPE7LX-15-X-0041. See attachment #3, Commercial Memo – 15X0041.

9. Additional facts supporting other than full and open competition are:

[X] Based upon the technical certification on file in DLA Land and Maritime –Value Engineering Program (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) HDT Vehicle Component Sales, Inc. / 1SER6; Wheeler Bros., Inc. / 55683; Penn Power Group / 62860.

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

[X] The solicitation contains Defense Logistics Acquisition Directive (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-15-X-0041’s justification and approval is attached.

Approvals appear on the next page.

P a g e | 6

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 78500 commercial part availability Commercial Memo – 15X0041 JandA SPE7LX15X00041_signed

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: 2020.09.16 10:47:25 -04'00'

9/16/20

9/16/20