JA SPE7MX19R0113 ADDENDUM.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION-

ADDENDUM

SOLICITATION SPE7MX19R0113

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

The supplies needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

Transhield Inc. CAGE 064U8.

The use of the authority cited below:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

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.

AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

Transhield is the only source that is known to have the data rights to manufacture this item. Mr.

, an SAPD Product Specialist, did a technical review on 03/26/19. Based on his review he states that the Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than the current sources (Transhield CAGE 064U8). He also states the rights needed to purchase this part from additional sources are not owned by the Government and cannot be purchased. For the items coded as AMSC D and P, only Transhield, Inc. has been identified as having the complete technical data and manufacturing expertise to supply these items to DLA and the using military services.

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

The acquisition was synopsized on 07/03/19. The synopsis will be amended when the solicitation is reopen.

Dealers of the manufacturers were solicited.

A sources sought notice was posted on FedBizOps from 06/19/19 to 06/26/19 with no responses received.

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

This will be a five (5) year, firm fixed price, Indefinite Quantity Contract (IQC). The five year period is inclusive of a three (3) year base period, and two (2) separately priced, one (1) year option periods. There is not expectation of competition as there is only an expectation of receiving an offer from the sole source OEM.

The project was reviewed by a BPA Price Analyst for a commerciality determination. The Price Analyst recommends that these items could be commercial. The Analyst reviewed the NSNs current pricing with the previous pricing. NSN 1005-01-644-7531 is also listed on the GSA website with pricing valid through November 2024. The analyst stated the pricing should not be higher for this NSN than the pricing listed on the GSA website. The Analyst recommended a review of the vendor’s historical commercial sales history or the pricing list to support historical pricing. The analyst recommends requesting the size of the tarps because based on research the larger the tarp, the higher the cost.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A market survey was conducted on/during 04/29/19-06/28/19.

Market Survey Results

Two companies were contacted through email with formal market surveys. The OEM, Transhield Inc. CAGE 064U8 and a dealer, Shore Solutions CAGE 6D0X3. The project population and market survey originally included seven (7) NSNs. After review by the Small Business Administration (SBA), a recommendation to set aside one NSN was proposed. As a result, the project population is now for 6 NSNs.

Transhield, Inc. CAGE 064U8 Transhield is a small business manufacturer with approximately 67 employees. They manufacture items for the commercial market and the Military. They state that only 1/3rd of their business is through Government sales. They expressed their interest in pursuing this long term contract project. They stated they have submitted certified data in the past but after an extensive review the acquisition specialist found they have not submitted data. The acquisition specialist coordinated with the pricing office to conduct a proposal conference to discuss the process on submitting certified data with Transhield. The meeting was successful and Transhield agreed to submit data. Transhield stated these items are not commercial.

Shore Solutions CAGE 6D0X3 Shore Solutions is an 8(a), HubZone, SDVOSB, EDWOSB, WOSB, and a SB. They have approximately 18 employees and are a dealer for Transhield. Transhield confirmed they were an authorized dealer. Shore Solutions had expressed interest in this project when the population included a 7th NSN. Shore Solutions was interested in the single NSN project for Transhield but has never participated in any procurements for these NSNs. They responded to the market survey, but they are not expected to submit an offer for this procurement after discussions on the different NSNs. They are only submitting an offer on the seperate single NSN project.

Commerciality

The solicitation was issued using Part 15 procedures and contained certified cost data submission clauses. The DCMA and DCAA reviewed the cost data from Transhield and concluded that the cost data was inadequate and the vendor’s financial structure was not able to provide an adequate proposal. The vendor hired a consulting firm to help prepare an adequate cost package. During this time the vendor’s consultants assisted the vendor to prepare a report to support the request for a commercial determination. The initial information provided by the vendor was not enough to make a commerciality determination.

The DLA Land and Maritime BPA Pricing Office assisted the Contracting Officer with making a commercial determination based on the new information provided by the vendor. The Price Analyst recommended the NSNs be considered commercial in accordance with FAR 2.101 as the items have been sold leased, or licensed to the general public or has been offered for sale, lease, or license to the general public. The vendor states that some of the NSNs have been sold to the public and that all of the six NSNs are available to the public. The vendor also states that all production is performed in the same location by the same employees. The military tarps are similar to regular commercial tarps but the tarp is designed to fit each item securely and is unique for each item. The fit would be different from commercial tarps and specific to the military item. This is a kind of a unique commercial item where the items are made to order.

The military items require minor modifications to conform to the requirements. The Contracting Officer has determined to make these items commercial that require minor modifications.

The procurement will be amended to include Far Part 12 procedures and will be reopened.

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

Based upon the technical certification on file in DLA Land and Maritime – VEP technical data is available, but the Government does not own the rights to the data on NSN 2540016637410. On the remaining NSNs VEP technical data is not available and cannot be developed to permit full and open competition.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Transhield CAGE 064U8

11. The following actions are being taken to identify additional sources:

Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part

Numbered Items

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. Per PGI 206.304, the requirement states, “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed”. Based on a review of the contract history, SPE7L319R0001 included a Justification and Approval (J&A). The J&A for Other than Full and Open Competition is included as an attachment.

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[ ] $700,000 to $13,500,000 Competition Advocate

[ X] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ) (DLA General Counsel signature line required when sending to AQ)

WATSON.CAROLI

NE.R.1299372142

Digitally signed by

WATSON.CAROLINE.R.1299372

Date: 2020.05.06 15:44:07 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.05.13 06:58:42 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2020.05.13 07:12:17 -04'00'