JA SPE7MX19RX056 Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19RX056

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

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 pursuant to 41 U.S.C. 1901.

3. The supplies (12 NSNs) required to meet the using activity's needs are shown below. They are all Fluid Filter Elements or Intake Filter Elements.

NSN ITEM

Estimated Annual

Estimated Annual

Qty AMC AMSC

2910011862540 FILTER ELEMENT,FLUI 296 3 D

2940014345206 FILTER ELEMENT,FLUI 335 1 B

2940015478550 FILTER ELEMENT,FLUI 1,202 1 R

4310014668495 FILTER ELEMENT,INTA 6,427 1 C

4330011140918 FILTER ELEMENT,FLUI 256 1 B

4330013614966 FILTER ELEMENT,FLUI 338 3 D

4330014255576 FILTER ELEMENT,FLUI 1,109 1 C

4330014425009 FILTER ELEMENT,FLUI 500 1 Z

4330014961603 FILTER ELEMENT,FLUI 320 2 Q

4330015274508 FILTER ELEMENT,FLUI 264 1 Q

4330015443410 FILTER ELEMENT,FLUI 301 3 R

4330015627343 FILTER ELEMENT,FLUI 252 3 D

Following are the approved manufacturers and part numbers.

NSN CAGE COMPANY NAME Part Number

2910011862540 90005 PUROLATOR FACET, INC. 1742243

2940014345206 00736 FALLS FILTRATION TECHNOLOGIES, R9W2501

2940014345206 61208 TWIN DISC INCORPORATED 715583

2940014345206 90005 PUROLATOR FACET, INC. 1744830-05

2940015478550 13573 PARKER-HANNIFIN CORPORATION DBA I-633MMTB

2940015478550 1R5C8 HEIL TRAILER INTERNATIONAL, LLC 9291-0065

4310014668495 12658 BALDWIN FILTERS INC RS3704

4310014668495 18265 DONALDSON COMPANY, INC. P821575

4310014668495 29186 MACK BORING AND PARTS CO. MACK262A

4310014668495 79396 WIX CORP 46438

4330011140918 00736 FALLS FILTRATION TECHNOLOGIES, R9W2172

4330011140918 90005 PUROLATOR FACET, INC. 1736036-02

4330013614966 87405 FACET (OKLAHOMA) LLC DBA 2988251

4330013614966 87405 FACET (OKLAHOMA) LLC DBA 900129-3

4330014255576 11083 CATERPILLAR INC. DBA CATERPILLAR 485-4705

4330014255576 12658 BALDWIN FILTERS INC P7012

4330014425009 13573 PARKER-HANNIFIN CORPORATION DBA I-65687TB

4330014425009 87405 FACET (OKLAHOMA) LLC DBA CA56-3SB

4330014961603 13573 PARKER-HANNIFIN CORPORATION DBA I-644A4TB

4330014961603 87405 FACET (OKLAHOMA) LLC DBA CM100-43SB-5

4330015274508 13573 PARKER-HANNIFIN CORPORATION DBA I-656A4TB

4330015274508 87405 FACET (OKLAHOMA) LLC DBA CM100-56SB-5

4330015443410 13573 PARKER-HANNIFIN CORPORATION DBA SO-636CM

4330015627343 13573 PARKER-HANNIFIN CORPORATION DBA I-656MMTB

Identify end item, weapon system, or class of item:

There are a large number of weapon system supplied by the NSNs. Refer to Attachment 1.

ESTIMATED BASE VALUE (5-Year Base Period):

MAXIMUM CONTRACT VALUE:

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4:

Although these items have been determined commercial, the items are used on a variety of military specific equipment designed to satisfy the needs of the warfighter, such as, the C/KC-135, F-5, F-16, and B-2 aircraft; the FU Recovery Vehicle; the Ford Class and Seawolf Class Carriers; Submarine Engineering and Diesel Systems; and the Virginia Class Submarine. The weapon systems or support equipment, in which these items are used, were designed to meet military-specific requirements. These are all replacement parts, and to ensure proper functioning of the higher level assembly, DLA must buy the brand name replacement parts. The Government does not have technical data sufficient for full and open competition. The approved sources identified are the only known sources that have the technical data and manufacturing knowledge necessary to ensure these repair and replacement parts to properly support the weapon systems. It is therefore essential to limit to the approved CAGE codes and part numbers.

NSN 4310014668495 is a Critical Safety Item (CSI). In accordance with DFARS 209.270, this critical safety item may only be procured from a source approved by the head of the design control activity.

The Product Specialist reviewed the technical information and certified it as complete and accurate on 1/9/2019.

The procurement item descriptions (PIDs) for each NSN are included as Attachment 2.

The use of the authority cited is based on:

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

AMC 2. Suitable for competitive acquisition for the first time.

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

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.

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.

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 Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary.

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. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

AMSC Z. This part is a commercial/non-developmental/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).

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

The acquisition was synopsized on 8/5/2019. At the conclusion of the synopsis period, the solicitation will be posted to DIBBS for 30 days for other interested businesses to access.

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

Cost or pricing data will not be required as the items contained on this project have been determined commercial items in accordance with Federal Acquisition Regulations (FAR)

2.101 and, therefore, meet the exception at FAR 15.403-1(b)(3). Commercial procedures will be utilized in accordance with FAR Part 13.5. Competition is expected on most of these items. However, per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be conducted using historical pricing determined fair and reasonable for the same or similar items, Producer Price indexes (PPIs) and learning curve analysis. For items are listed on the internet for sale to the public, a comparison with commercial pricing may also be utilized. Additional information, such as other-than cost data, may be obtained from the offeror(s), as necessary. By using the above techniques, the Contracting Officer anticipates that the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A sources sought notice was issued 10/18/2018. No responses were received.

Thirteen market surveys were sent out by the market survey team for the original project, CM18268001, which included the NSNs for this project. Of those market surveys, 4 were sent to approved sources for NSNs on this project: Baldwin Filters (12658), Donaldson (18265), Facet (87405), and Parker-Hannifin (13573). Another market survey was sent to a dealer, Longhorn (4GK47). A response was received only from Facet (87405), who completed the market survey, stating they are interested in the solicitation and that the items for which they are an approved source are commercial.

The Buyer assigned to the project sent quick market survey emails to the dealers below, which included a spreadsheet of the NSNs with approved sources, asking the dealers if they are interested in the solicitation and asking “at a quick glance” if they are able to provide "most or all of the NSNs. The following businesses replied by email stating they are interested in this long-term contract solicitation and that they could provide some, most, or all of the items.

Hupp & Associates (0JT27), Small Business, they can provide most or all of the NSNs Longhorn (4GK47), Small Business, they can provide most of the NSNs Supply Core (4V314), Small Business, they can provide most or all of the NSNs.

JGB (61125), Large Business, they can provide Baldwin CAGE 12658 parts

The Buyer did research on the internet to support the commerciality determination:

Commercial information was found for NSNs 2940015478550, 4310014668495, 4330011140918, 4330014255576, 4330014425009, 4330014961603, and 4330015627343.

• Commercial pricing was found for the exact items for NSNs 2940015478550, 4310014668495, 4330011140918, 4330014255576, and 4330014961603.

• The information found for 4330014425009 consisted of replacement parts for the approved part number.

• Pricing was not found online for 4330015627343; however, it is listed online by a commercial company, stating that one could call for pricing.

Specific part number information was not found online for NSNs 2910011862540, 2940014345206, 4330013614966, 4330015274508, or 4330015443410. Yet these are all Fluid Filter Elements, as are all but one of the NSNs with commercial data.

These also have the same or similar function as the NSNs with commercial data.

Based on the definition in FAR 2.101 for Commercial Item at paragraph (1)*, the Contracting Officer hereby determines these items to be “commercial” or “commercial of a type” due to the same or similar items being available in the commercial marketplace.

*FAR 2.101, Commercial item” means (1) Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and- (i) Has been sold, leased, or licensed to the general public; or (ii) Has been offered for sale, lease, or license to the general public…

NSNs 4310014668495 and 4330014255576 are further determined to be commercial-off-the shelf (COTS) because online research indicates that they are sold in the commercial marketplace in substantial quantities. Two approved parts of 4310014668495 are available from Napa Auto Parts and O-Reilly Auto Parts, which are leading automotive parts retailers. The Baldwin approved part number for 4330014255576 is also available from Napa Auto Parts.

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 not available and cannot be developed to permit full and open competition for these items. The data presently available reflects the minimum needs of the Government.

10. A listing of business sources, indicating an interest in the acquisition is:

Hupp & Associates (0JT27) Longhorn (4GK47) Supply Core (4V314)

JGB (61125)

Facet (87405)

11. Actions being taken to overcome barriers to competition:

DLAD Procurement Note L22, Restriction of Alternate Offers for Source Controlled Items, will be included in the solicitation and will apply to items with AMSC of B. The provision tells offerors that they must contact the design control activity specified on the source control drawing if they want to qualify their product.

DLAD Procurement Note L04 Offers for Part Numbered Items, will be included in the solicitation and will apply to items with AMSC of other than B. The provision explains how offerors can submit technical documentation to have their item reviewed as an alternate part number.

NSNs 4310014668495 and 43300142555762, which have been determined to be COTS, will be referred to the Value Engineering Office and/or the Engineering Support Activity to identify salient characteristics that an “equal” item must meet to allow DLA Land and Maritime to pursue future acquisitions under a brand-name-or-equal specification pursuant to FAR 52.211-6.

12. The most recent past buys were reviewed. There are purchase orders and some delivery orders against long-term contracts (see Attachment 1). SPE7MX15D5010 (4310014668495) is an Indefinite Delivery Purchase Order under the simplified acquisition threshold, so there is not a J&A for this. SPE7LX15D0210 (4330014961603 and 4330015274508) is an Indefinite Quantity Contract; however, a J&A could not be located in records management.

Attachments:

1 NSNs, Weapon Systems, Proc Hist

2 PID-PKG

3 Commercial Information

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

614-692-9252

REBECCA H. HARTGE Date Phone Contracting Officer

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is

614-692-3670 MARY E. SHEARER Date Phone Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate

( ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

( ) over $93,000,000 Senior Procurement Executive (AQ)

HARTGE.REBEC

CA.H.1273657475

Digitally signed by

HARTGE REBECCA.H.1273657

Date: 2019 08 08 09:29:44 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER MARY.E.1250702

Date: 2019.08.12 15 08:34 -04'00'