JA SPE7LX24RX016.pdf
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- Attached to
- PARTS KIT, CONSTANT
- Solicitation number
- SPE7LX26D5001
About this file
This Justification for Other Than Full and Open Competition document is for the Defense Logistics Agency (DLA) Land & Maritime, seeking to procure two parts kits for constant velocity drive shafts. The solicitation (SPE7LX24RX016) is for 529 and 605 units annually of specific NSNs used in HMMWV trucks, Navy Expeditionary Programs, and vehicle-mounted Stinger missile systems. GKN Driveline North America Inc. is the sole identified source, with a contract strategy based on 10 U.S.C. 3204(a)(1) for limited sources and FAR 13.5 commercial procedures.
Market research was conducted through a Sources Sought Notice on SAM.gov, market survey questionnaires to potential dealers, and online research. Only Supply Core Inc. and AM General expressed limited interest, with Brighton Cromwell declining participation. The procurement will be posted on DIBBS around 5/29/2024 for at least 30 days, with a price analysis to be conducted using historical pricing, Producer's Price Index, and learning curve analysis. The document indicates technical data is not available to permit full and open competition, and the items have been determined to be commercial based on previous procurements and internet pricing research.
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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION SPE7LX24RX016
DLA Land & Maritime Justification for Other Than Full & Open Competition (December 2021)
[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/services on other than a full and open competition basis.
3. The supplies/services required to meet the using activity’s needs are described as follows:
ITEM
NUMBER BRIEF DESCRIPTION NSN/P/N
ESTIMATED.
ANNUAL
QUANTITY
ESTIMATED.
ANNUAL VALUE AMC/AMSC
1 PARTS KIT, CONSTANT VELOCITY
DRIVE SHAFT 2520013828874 529 EACH 3/B
2 PARTS KIT, CONSTANT VELOCITY
DRIVE SHAFT 2520013832387 605 EACH 3/B
ESTIMATED 3-YEAR BASE VALUE $
ESTIMATED TOTAL VALUE (BASE + 2 OPTION YEARS) $
MAXIMUM CONTRACT VALUE $
Identify end item, weapon system, or class of item:
NSN WEAPON SYSTEM
2520013828874 TRUCK, HMMWV
2520013828874 TRUCK, VEHICLE SYSTEM, 1 1/4-TON (HMMWV)
2520013828874 NAVY EXPEDITIONARY PROGRAMS
2520013828874 SPECIAL, MISC. SPARES, VEHICLES
2520013828874 MISSILE, VEHICLE MOUNTED STINGER (AVENGER)
2520013832387 TRUCK, HMMWV
2520013832387 TRUCK, VEHICLE SYSTEM, 1 1/4-TON (HMMWV)
2520013832387 NAVY EXPEDITIONARY PROGRAMS
2520013832387 SPECIAL, MISC. SPARES, VEHICLES
2520013832387 MISSILE, VEHICLE MOUNTED STINGER (AVENGER)
JUSTIFICATION FOR OTHER THAN FULL AND OPEN
COMPETITION SOLICITATION
DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)
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.
Brief narrative supporting the situation and weapon system:
The use of the authority cited above is supported by the Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) of each NSN listed below in section 5, which was confirmed as complete and accurate by the Strategic Acquisitions Program Directorate (SAPD) Product Specialist on 9/6/2023 during the technical review of the NSNs for placement on this long-term contract initiative. See attachment #1, MFR Technical Data Certification.
The source listed in the table below in section 5, confirmed by the SAPD Product Specialist 9/6/2023 during the technical review of the NSNs for placement on this long-term contract initiative, is currently the only source with the necessary qualifications, ability, and approval by the design control activity to manufacture the items. The listed source is the only source that possess the complete technical data, rights to the data, and capability necessary to manufacture the items for the required form, fit, function, and quality.
5. If restricted to the only source(s) of supply, include source(s) and CAGE code:
ITEM CAGE NAME PART NUMBER
1 62826 GKN DRIVELINE NORTH AMERICA INC. 12342974-3
2 62826 GKN DRIVELINE NORTH AMERICA INC. 298-0107
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. If at least two sources exist, AMCs 1 or 2 are valid.
6. Efforts to ensure that offers are solicited from as many sources as practicable are:
[X] The acquisition was synopsized on 5/2/2024.
[X] Dealers of the manufacturer(s) will be solicited.
[X] Other. (Explain) Solicitation will be posted to DIBBS on or about 5/29/2024 for a period of at least 30 days.
JUSTIFICATION FOR OTHER THAN FULL AND OPEN
COMPETITION SOLICITATION
7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. Offerors may also be required to submit information other than certified cost or pricing data if deemed necessary by the Contracting Officer in order to determine prices fair and reasonable. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable.
8. Market Research/Efforts to Obtain Competition:
A Sources Sought Notice was posted for seven days to www.SAM.gov on 4/12/2024. Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the acquisition specialist listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return. Potential sources would be added to the solicitation mailing list. No new source responses were received from the notice.
Market Survey [10 U.S.C. 3204(e)(2)(D)], was conducted:
A market survey questionnaire was emailed 9/1/2023 to the approved source GKN Driveline North America, Inc.
CAGE 62826 and the following dealers: Janel’s Industries Inc. CAGE 3B8L1, Brighton Cromwell CAGE 3NNX8, Supply Core Inc CAGE 4V314, AM General CAGE 34623. The following information was requested relative to each company and the items to be procured:
Company size and type.
Interest in submitting an offer for a long term contract.
Familiarity with and willingness to provide Certified Cost or Price Data (CCPD) if required.
Commerciality of the item.
Delivery information.
AM General responded with a completed market survey on 9/5/2023 and again 4/17/2024 in response to the sources sought. Summary of information it provided:
Large business manufacturer/distributor/dealer supplying the GKN Driveline North American parts.
It is interested in supplying the items on a long-term contract.
Supply Core responded with a completed market survey on 9/11/2023. Summary of information it provided:
• Small business distributor/dealer supplying the GKN Driveline North American parts.
• It is interested in supplying the items on a long-term contract.
SOLICITATION
Brighton Cromwell responded to the market research 9/5/2024 stating it does not want to participate in this LTC procurement. GKN Driveline North America Inc. and Janel’s Industries did not respond to the market research request.
Additional market research conducted by the Acquisition Specialist:
Reviewed previous procurement of each item for acquisition information. NSN 2520013828874 was previously procured under other than full and open competitive procedures on long term contract SPE7LX19D0052, see attachment #2 for its Justification and Approval (J&A) under solicitation number SPE7LX18R0076. This previous contract was solicited unrestricted utilizing FAR Part 12 commercial procedures. The Contracting Officer determined the item commercial through market research findings that the item is available via the commercial market place for use on the commercial Hummer H1 and pricing for the item was found on commercial web sites. NSN 2520013832387 was previously procured under other than full and open competitive procedures on long term contract SPE7LX20D0104, see attachment #3 for its Justification and Approval (J&A) under solicitation number SPE7LX20R0055. This previous contract was solicited unrestricted utilizing FAR Part 13.5 commercial procedures. The Contracting Officer determined the item commercial through market research finding that the item was previously determined and procured commercial on contract SPE7LX15D0180 where it was determined the item was available for sale to the commercial marketplace through MAC Motors and its web-site and AM General provided commercial sales invoices of the item.
Researched items on-line via the internet for commercial availability. The items were found for sale on the internet with listed prices. The items were not found on any GSA contracts when researching the GSA web site.
Based on the market research conducted, the items to be solicited against subject solicitation have been determined to be commercial and will be procured under FAR 13.5 procedures.
9. Additional facts supporting other than full and open competition are:
[X] Based upon the technical certification, attachment #1, 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.
[X] Other: During the project development stage, each NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and the Strategic Acquisition Programs Directorate (SAPD) Product Specialist for review; no additional sources were identified during those reviews.
10. A listing of sources, if any, indicating an interest in the acquisition is: Supply Core Inc CAGE 4V314 and AM General CAGE 34623.
11. The following actions are being taken to identify additional sources:
[X] Solicitation contains DLA Procurement Note, L22 Restriction of Alternate Offers for Source Controlled Items.
[X] Other: Forecast information is available to all potential sources for both sole source and competitive items.
The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole
SOLICITATION
source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.
12. Upon review of the prior J&As attached and their associated procurements, it was found the actions under the previous solicitations were accomplished as stated in the J&As. No alternate offers were received.
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] $750,000 to $15,000,000 Competition Advocate
Attachment(s):
1. MFR Technical Data Certification
2. J&A of Previous Procurement SPE7LX19D0052
3. J&A of Previous Procurement SPE7LX20D0104
ROBERTS.TRACY.S
.1230171781
Digitally signed by
ROBERTS.TRACY.S.1230171781
Date: 2024.05.06 09:07:14 -04'00'
WIEBUSCH.JAMIE.1
251897324
Digitally signed by
WIEBUSCH.JAMIE.1251897324
Date: 2024.05.14 13:39:33 -04'00'
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