JA_SPRDL1-24-R-0148_Redacted.pdf
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- Redacted Justification & Approval (J&A)
- Solicitation number
- SPRDL1-24-R-0148
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This document is a Justification and Approval (J&A) for a non-competitive procurement by the Defense Logistics Agency (DLA). The contract is for Jerry Can Containers manufactured by CJK Manufacturing, LLC, with a National Stock Number (NSN) 8145-01-515-6458. The procurement is a five-year, indefinite-delivery/indefinite-quantity (IDIQ) contract with a minimum quantity of 237 and a maximum quantity of 6,269 containers, using Army Working Capital Funds.
The container is a clam shell-style fuel container designed for safe transportation of four-gallon fuel containers, featuring secondary containment, high-density molecular polyethylene construction, and stainless steel rings. Market research conducted in August 2024 found no commercially available alternatives with equivalent form, fit, and functional compatibility. The contract will be awarded under FAR 6.302-1 (Only One Responsible Source) due to the unique specifications and the estimated $130,000 cost of developing competitive specifications. Previous contracts with CJK Manufacturing from 2019-2020 were also awarded under similar non-competitive conditions.
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SPRDL1-24-R-0148 (JA-00879)
Previous J&A: SPRDL1-20-R-0019 competitive procurement, it would cost approximately $130,000 with a Government engineers would be required to review all relevant standards, develop draft performance specifications, conduct internal reviews of the specifications, revise these specifications, conduct external industry reviews of the specifications, further revise and finalize the specifications, and publish the final specifications. In addition, if a new source of supply was selected, First Article Testing would be required.
This estimate was based on technical input of subject matter experts who have developed previous performance specifications.
The Government would not be able to recover, through subsequent competition, the duplication of costs involved either procuring the proprietary data or reverse engineering the item to create a competitive specification within a reasonable time frame. At the current average usage rate of units each year, a current unit cost of each, and assuming 25% savings achieved through competition, the in annual savings would take years to offset the estimated $130K cost of reverse engineering the item and qualifying another source.
6. Efforts to Obtain Competition:
a. Effective competition: Due to the reasons cited in Section 5 above, the Government is not pursuing competition for this item.
b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.
7. Actions to Increase Competition: There are no known funding efforts in progress at this time to develop the competitive specifications required to make the Container fully competitive. No contractors are in the process of being qualified at this time, nor will it be prior to the contract award due to time and funding constraints.
8. Market Research: A Sources Sought Notice was posted to SAM.gov on 31 July 2024, was open for 15 days and closed on 14 August 2024. Two responses were received, with an assessment of the responses shown below.
Two responses from potential vendors were received in response to the Sources Sought Notice from both BHPE, LLC. and Infinity Government Services (IGS).
The conducted Market Research on 01 August 2024 which consisted of internet searches including WebFLIS, Haystack, and internet search engines.
Keywords: shipping and storage container, fuel storage container, Jerry Can
Websites:
https://teccontainersolutions.com/fuel-containers/ - TEC https://www.rotopax.com/ - Rotopax, Grainger https://www.newpig.com/spill-control-containment/c/109 - New Pig
The Internet search did not reveal any items with the same form, fit and functional compatibility. While other items exist that can be used for storage, there is nothing commercially available that has been designed for the safe transportation of these specific containers. No other suitable products were discovered.
9. Interested Sources: Two responses from vendors were received in response to the Sources Sought Notice posted on SAM.gov.
See Market Research in Section 8 for the vendor inquiry details.
10. Other Facts: Procurement History:
(1) Procurement History
Contract Number: SPRDL1-20-D-0092 Award Date: 12 August 2020 Contractor: CJK Manufacturing, LLC.
Contract Value: $1,126,899 (5-Year LTC period) Competitive Status: FAR 6.302-1, Only One Responsible Source
Contract Number: SPRDL1-20-P-0107 Award Date: 10 March 2020 Contractor: CJK Manufacturing, LLC.
Contract Value: $221,502.00 (total value) Competitive Status: FAR 6.302-1, Only One Responsible Source
Contract Number: SPRDL1-19-P-0116 Award Date: 16 January 2019 Contractor: CJK Manufacturing, LLC.
Contract Value: $150,500.00 (total value)
14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.
Name: Timothy A. Nichols Title: Contracting Officer, ZGBC Signature:
4/8/2025
X Timothy A. Nichols
File details come from the government source that posted it. Updated .