JA SPE7LX23RX075.pdf
PDF 2 MB Posted
- Attached to
- Storage Batteries
- Solicitation number
- SPE7LX24D5012
About this file
This justification document provides the basis for a sole source award for storage batteries to an unknown vendor. The justification cites 10 U.S.C. 3204(a)(1) to restrict competition based on the items only being available from limited sources approved to manufacture them. EnerSys Energy Products and EnerSys Ltd. are identified as the only approved sources for the battery national stock numbers. Market research including a sources sought notice and survey of the two vendors found no other potential sources. The solicitation is for a minimum five-year contract to be awarded on December 20, 2023, and will include firm fixed pricing with an option to escalate prices for years two through five. A price analysis will be conducted using past prices and economic indicators to determine fair and reasonable pricing without requiring certified cost data.
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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7LX23RX075
DLA Land & Maritime Justification for Other Than Full & Open Competition (March 2023)
4. The statutory authority permitting other than full and open competition is:
[ X ] 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.
The J&A from the most recent procurement, LTC SPE7LX19D5053, was noted in the Stack 1 e-file for contract record in Records Management, but was not found in the attachments. There was, however, a document titled, Level Above for Unrestricted Procurement. See Attachment #1 SPE7LX19D5053 Level Above for Unrestricted Proc18RX130. This procurement is a successor LTC to SPE7LX19D5053.
Brief narrative supporting the situation and weapon system:
The product specialist reviewed the item prior to acquisition and determined there are limited sources approved to manufacture these items: two sources for NSN 6140-01-417-3244 (different CAGE codes of EnerSys) and one source for NSN 6140-01-600-5837. Only the approved sources possess the complete technical data for the items listed. They are the only sources uniquely qualified to manufacture these items; therefore, this acquisition 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.
On April 18, 2023, , Product Specialist, certified that the items have been reviewed, that the AMC/AMSC codes are correct, and that the items are good for LTC inclusion. See Attachment #2 Tech Cert
CL23031071.
5. If restricted to the only source(s) of supply, include source(s) and CAGE code:
NSN MANUFACTUROR PART NUMBER
6140-01-417-3244 CAGE 0WY95 EnerSys Energy Products 9750S0833 6140-01-417-3244 CAGE U6335 EnerSys Ltd. 9750S0833 6140-01-600-5837 CAGE 0WY95 EnerSys Energy Products 0785-2025
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.
According to the Tech Cert (attached), the Government does not physically have in its possession sufficient or accurate data to purchase the Storage Batteries from other than the current approved source(s). Only the listed approved part numbers from EnerSys Energy Products and EnerSys Ltd. are acceptable for procurement.
6. Efforts to ensure that offers are solicited from as many sources as practicable are:
[ X ] The acquisition was synopsized on July 21st, 2023.
[ X ] Dealers of the manufacturers will be solicited, however the approved source is expected to quote directly as they have done so repeatedly in the past for both of these items.
[ X ] The Government published a Sources Sought on the SAM.gov website for five (5) business days from 06/15/2023 to 06/29/2023.
[ 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.
Market research has revealed that only the approved source, large business EnerSys Energy Products, is expected to submit proposals for these items. The procurement is being conducted under FAR 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services. The estimated total contract value is over $2 million however per FAR 15.403-1(c)(3) Certified Cost or Pricing Data (CCPD) will not be required. Other than Cost or Price Data may be requested. A price analysis will be conducted, utilizing the Producer Price Index (PPI) and learning curves. A comparison to past award prices will also be performed in the determination of a fair and reasonable price.
The NSNs will be solicited with four quantity ranges, firm-fixed pricing, and allow for escalation in prices for years 2 through 5 of the LTC.
8. Market Research/Efforts to Obtain Competition:
Describe the market research conducted and the results.
The Contracting Officer reviewed the procurement history for contractors that offered and contracted the subject items in the past. Internet & GSA searches were conducted. Additionally, a market survey and a sources sought posting were done.
A sources sought was issued on SAM.gov on 06/15/2023, closing on 06/29/2023, by the Contracting Officer. No sources responded to sources sought posting.
Market Survey [10 U.S.C. 3204(e)(2)(D)]:
[ X ] A market survey was conducted on/during June 15, 2023.
Total number of vendors contacted: 2 - EnerSys Energy Products (0WY95) and EnerSys Ltd (UK) (U6335) Names of vendors responding: 1
- EnerSys Energy Products (0WY95) – RECEIVED – Responded that they are interested in supporting both items on a long-term contract
Techniques used to conduct survey: Contractors were identified using procurement history and market survey was sent by email with follow-up emails as needed to clarify information provided.
Types of information requested: Interest in supporting potential LTC, ideal number of base and option years, quantity price breaks, commerciality, estimated delivery, and any known challenges with ability to provide items for potential long-term contract.
(March 2023)
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
12. No prior J&As have been done for NSN 6140-01-600-5837 within the past 3 years; the item was purchased below the Simplified Acquisition Threshold.
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.
Contracting Officer
APPROVAL/CERTIFICATION
I have reviewed and approve this justification:
Competition Advocate Signature
APPROVAL REQUIREMENTS
[ X ] Over $750,000 to $15,000,000 Competition Advocate
Attachment(s):
1) SPE7LX19D5053 Level Above for Unrestricted Proc18RX130
2) Tech Cert CL23031071
3) MRCICDM CL23031071
KRAUSS.KRIST
A.L.1394506695
Digitally signed by
KRAUSS.KRISTA.L.1394506695
Date: 2023.08.17 10:19:15 -04'00'
DAPO.DOUGLA
S.A.1230220014
Digitally signed by
DAPO.DOUGLAS.A.1230220014
Date: 2023.08.17 14:49:05 -04'00'
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