JA_SPE7LX21RX064_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-21-R-X064

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

PUMP,COOLING

SYSTEM 2930-01-493-6007 2,950 3 Z 1 F

PARTS KIT,FLUID

PRE 4330-01-496-5720 5,459 3 C 1 F

1-year Estimated Value = 3-year 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 (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 in the Army, Marine Corps, and Navy:

NSN WSIC WSDC SHORT_NAME

2930014936007 F 39A PATRIOT MISSILE

2930014936007 F 80A HMMWV

4330014965720 F 80A HMMWV

2930014936007 L 3PM GUIDED MISSILE BAT

2930014936007 R C7N NAVY EXPEDITIONARY PROGRAMS

2930014936007 R EDN LCAC

4330014965720 R C7N NAVY EXPEDITIONARY PROGRAMS

2930014936007 S 7DM COMMUNICATION SUBSY (TAMCN: A00327)

2930014936007 S 7KM TRANS/TACSATCOM SMART-T

2930014936007 S BPM RADAR SET, FIREFINDER (AN/TPQ-

2930014936007 S BRM TRUCK,UTILITY

2930014936007 S FWM RECEIVER,RADIO

2930014936007 S LZM COMMAND SYSTEM,TACT (TAMCN: A00317G)

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NSN WSIC WSDC SHORT_NAME

4330014965720 S 3PM GUIDED MISSILE BAT

4330014965720 S 7DM COMMUNICATION SUBSY (TAMCN: A00327)

4330014965720 S FWM RECEIVER,RADIO

2930014936007 T 0QM TRUCK, UTILITY: EXPANDED CAPACITY ARMT C

2930014936007 T 1SM RADIO SET (TAMCN: A00677G)

2930014936007 T 44M RADIO TERMINAL SET (TAMCN: A01537G)

2930014936007 T 4RM MOUNTED DATA AUTOMATED COMM TERMINAL

2930014936007 T 8RM RADIO TERMINAL SET (TAMCN: A19547G)

2930014936007 T CPM RECEIVER-TRANSMITTE (TAMCN: A04037)

2930014936007 T QRM TRUCK, TOW CARRIER

2930014936007 T SFM TROOP TRUCK

4330014965720 T VHF SPECIAL, MISC. SPARES, VEHICLES

2930014936007 Y 1TN TRUCK, HMMWV

2930014936007 Z 16M TRUCK,UTILITY

2930014936007 Z 1AM TRUCK,UTILITY (TAMCN: D00317K)

2930014936007 Z 1BM TRUCK,UTILITY (TAMCN: D00337K)

2930014936007 Z 1CM TRUCK,UTILITY (TAMCN: D00347K)

2930014936007 Z AEM FIRESUPPRESSIONSYST

2930014936007 Z ARM AIR TRAFFIC NAVIGATION, INTEGRATION AND

2930014936007 Z C1M NOTM STAFF VEHICLE KIT (SV KIT) INC 1

2930014936007 Z EKM COMMAND AND CONTROL (TAMCN: A02577)

2930014936007 Z FYM DRONE SYSTEM (TAMCN: A03557)

2930014936007 Z H3M ORDNANCE SUPPORT SY

2930014936007 Z M0M COMMAND SYSTEM,TACT (TAMCN: A04347G)

2930014936007 Z NLM RADAR SYSTEM, COUNTER FIRE TARGET ACQUIS

2930014936007 Z PMM UNMANNED AIRCRAFT S

4330014965720 Z 0QM TRUCK, UTILITY: EXPANDED CAPACITY ARMT C

4330014965720 Z 1SM RADIO SET (TAMCN: A00677G)

4330014965720 Z 44M RADIO TERMINAL SET (TAMCN: A01537G)

4330014965720 Z 4RM MOUNTED DATA AUTOMATED COMM TERMINAL

4330014965720 Z 52M TRK, UTIL, HVY, 2 1/4T, HMMWV

4330014965720 Z 8RM RADIO TERMINAL SET (TAMCN: A19547G)

4330014965720 Z CPM RECEIVER-TRANSMITTE (TAMCN: A04037)

4330014965720 Z QPM TRUCK, AMBULANCE, HMMVW

4330014965720 Z SFM TROOP TRUCK

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:

2930-01-493-6007 - Part number 19168610 from CAGE 7X677 / General Motors LLC.

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4330-01-496-5720 – Part number 24210956 from CAGE 7X677 / General Motors LLC.

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 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 of 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.

[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, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

[X] Other: (Explain) Per the approved manufacturers’ list for this NSN in SAP (as received from the Defense Logistics Information Services), only CAGE 7X677 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. These NSNs have a WSIC code of F, indicating that failure will render the end item inoperable (WSEC 1). These are replacement parts incorporated into multiple wheeled vehicles. Product from the approved CAGE is the only known material that will ensure the various weapon systems operate properly. Therefore, competition must be limited to offers of the product of CAGE 7X677. A technical review in support of a potential LTC was performed in March 2021. The NSNs were determined to be suitable for an LTC at that time by SAPD’s product specialists. The product specialist certified on 03/25/2021 that the technical information, including the AMC/AMSC codes and approved source, is complete and accurate.

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

[X] The acquisition will be synopsized on or about 06/26/2021 for 15 days. At the completion of the synopsis period, this acquisition will be solicited on the Internet for a minimum of 30 days via the DLA Internet Bid Board System (DIBBS).

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

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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 parts, from the approved manufacturer. It is possible that authorized dealers for the approved manufacturer may submit offers, but it is not expected. 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 the same 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.sam.gov. The approved OEM was contacted by the sourcing strategy specialist and contracting officer regarding interest in a potential LTC. General Motors LLC provided completed market survey documents.

Sources Sought Notice:

On 05/25/2021, a Sources Sought notice was posted to www.sam.gov, which also contained attached market survey documents. The date of return referenced on the sources sought notice was 06/02/2021. That sources sought notice contained the NSNs. One response was received to the sources sought notice, from AM General LLC / CAGE 34623, on 05/26/2021. They plan on supplying a source approval request package, which the contracting officer will forward to the SAPD product specialist team, for coordination with the Competitive Advocate’s office and the Army’s Engineering Support Activity.

Market Research Conclusion:

A market survey was conducted: 03/25/2021 – 06/03/2021 Names of vendors contacted and responding:

CAGE 7X677 / General Motors LLC – 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 7X677 / General Motors LLC indicated the following:

i.

ii. Large business

iii. Offering their own product

iv. Interested in LTC v.

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viii. Considers item to be commercial in nature, can supply evidence of commercial sales ix.

2. CAGE 34623 / AM General indicated the following:

i.

ii. Large business

iii. Offering their own product with their own part numbers

iv. Interested in LTC v.

viii. Considers item to be commercial in nature ix.

x.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of ‘Yes’ for NSN 2930-01-493-6007, indicating the technical community has made the recommendation to determine the item commercial. MM03 COTS field is blank for NSN 4330-01-496-5720, indicating the technical community has not made any recommendation regarding the item’s commerciality. The approved manufacturer does consider both items to be commercial in nature. The contracting officer researched these items in Google and found the exact items available for purchase by the public.

Lastly, these items were determined commercial on previous contract SPE7LX-20-D-0191 and the contracting officer sees no reason to overturn the previous commercial determination. Therefore, the contracting officer has determined that these items meet the FAR Part 2.101 definition of a “commercial item” under (1)(ii), and the acquisition will be conducted under FAR Part 13.5, Acquisition of Certain Commercial Items. Finally, both NSNs are listed on one or more GSA Federal Supply Schedules. However, NSN 2930-01-493-6007 is only listed on one GSA schedule.

Competition among schedule holders would not exist, and the use of FAR Part 8 procedures would not be in the best interests of the Government.

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) General Motors LLC / 7X776; AM General LLC / 34623.

11. This item is subject to the following methods of locating additional sources:

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[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-19-R-X034’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 $750,000, 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] $750,000 to $15,000,000

Attachments:

Technical Certification

J&A SPE7LX19RX034

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: 2021.06.10 13:52:38 -04'00'

06/08/2021

06/10/2021