JA SPRDL20R0019_Redacted.pdf

SPRDL1-20-R-0019

(Previous J&A SPRDL1-17-R-0460)

Defense Logistics Agency Justification and Approval for Other Than Full and

Open Competition

1. Contracting Activity: The Defense Logistics Agency Warren (DLA Land Warren) is the procuring activity for this action.

2. Description of Action:

Approval is being requested for a new contract. The contract will be a five year/firm fixed price/Indefinite Delivery Indefinite Quantity type. The contract will be with the Original Equipment Manufacturer (OEM) CJK Manufacture LLC. (CAGE: 3A2F4). Army Working Capital Funds will be used. The estimated Minimum Guarantee is or 180 units. The estimated five year maximum is or 5,148 units.

3. Description of Supplies/Services:

Noun: SHIPPING AND STORAGE CONTAINER

NSN: 8145-01-515-6458

Part Number: 5CTU-091151

Estimated Minimum Quantity: 180 each

Estimated Maximum Quantity: 5,148 each

Estimated Unit Price: each

Estimated Contract Total:

Weapon System Code: WC (Containers)

Acquisition Method Code (AMC): 4. ACQUIRE, FOR THE FIRST TIME, DIRECTLY

FROM THE ACTUAL MANUFACTURER RATHER THAN THE PRIME CONTRACTOR.

Acquisition Method Suffix Code: (AMSC): R. THE DATA OR THE RIGHTS TO USE THE

DATA NEEDED TO PURCHASE THIS PART FROM ADDITIONAL SOURCES ARE

NOT OWNED BY THE GOVERNMENT AND IT HAS BEEN DETERMINED THAT IT IS

UNECONOMICAL TO PURCHASE THEM.

4. Authority Cited:

The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited

CJK Manufacture LLC is the Original Equipment Manufacture of the Shipping and Storage Container. The Shipping and Storage Container provides the capability to move up to four five-gallon fuel canisters assuring safe transport of gas, oil and fuel. The Shipping and Storage Container provides secondary containment, is weather resistant, utilizes high density molecular polyethylene, and stainless steel rings. It is designed to keep fuel containers upright, secure and has passive vents that prevent fume build up.

The Government does not own any of the technical data for the production of this item, since it was developed at contractor expense. In order to develop technical data sufficient to support a competitive procurement it would cost approximately $130,000 and take approximately nine months. Government engineers would be required to review all relevant standards, develop draft performance specification, conduct internal reviews of the specifications, revise these specifications, conduct external (industry review) of specification, further revise the specification, finalize specification, and finally publish the final specification. 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 whom have develop previous performance specifications.

There are currently QTY 180 backorders for this product. Delaying procurement until funding for the development of a performance specification is provided and developed would bring considerable harm to the Government. Furthermore, purchasing untested Shipping and Storage Containers could lead to the improper transportation of gas, oil and fuel.

6. Efforts to Obtain Competition:

To increase competition, a source sought synopsis was posted to beta.SAM.gov on December 16, 2019. This effort will also be synopsized on FedBizOpps per FAR 5.201(a) – Synopses of Proposed Contract Actions to find additional sources of supply.

Subcontracting Competition: FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract to assure that the prime contractor obtains as much competition as possible in its subcontracting.

7. Actions to Increase Competition:

Due to the costs associated with developing a competitive performance specification that cannot be recovered as stated in section 5 above, the Government is not actively pursuing the development of a competitive performance specification for future procurements. Any proposals received will be sent to the engineering office.

8. Market Research:

The Item Manager conducted Market Research on 1 November 2019. Market Research consisted of internet searches including WEBFLIS, Haystack, and internet search engines. Key phrases such as the official nomenclature (SHIPPING AND STORAGE CONTAINER), common nomenclature (Jerry Can) and part number were used. No other suitable products were discovered.

Contract Specialist, , performed internet searches on sites such as www.homedepot.com, www.lowes.com, and other commercial sources that provide similar storage containers on 1/17/2020. 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.

DLA originally procured this item from Bowhead Environmental & Safety, LLC, an authorized distributor of CJK. CJK is the actual manufacturer and DLA has procured this item directly with CJK, most recently under contract SPRDL1-17-C-0336.

Sources Sought Synopsis was posted to https://beta.sam.gov/ on 12/12/2019 Item Name: Storage & Shipping Container

NSN: 8145-01-515-6458

Part No: 5CTU-091151 Quantity: 180 MIN/ 5,148 MAX End Item: POL Storage Equipment

Adobe Acrobat Document

9. Interested Sources: To date, no other sources have written to express an interest in qualifying as a source of supply. Sources Sought Notice 2020-053 was posted to Fed Biz Opps on 12 December 2019, for the Storage & Shipping Container, NSN: 8145-01-515-6458, Part Number: 5CTU-091151.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history:

-Contract: SPRDL1-16-P-0107

Award Date: 2016 January 16

Contractor: CJK Manufacturing

Value: $150,500.00

Competitive Status: Limited Source

-Contract: SPRDL1-17-C-0336

Award Date: 2017 September 25

Contractor: CJK Manufacturing

Value: $159,472.00

-Contract: SPRDL1-17-P-0292

Award Date: 2017 April 26

Contractor: Bowhead Environment

Value: $138,375.00

11. Technical Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: General Engineer Signature:

Date: 12/27/2019 Email:

12. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: Acting Group Leader, Soldier Product Support Integration Directorate, TACOM ILSC

Date: 1/9/2020

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. In accordance with FAR 15.403-3, Other Than Certifed Cost and Pricing Data will be required to justify price reasonableness. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Item is deemed commercial.

Typed Name: Timothy A. Nichols Date: 2/4/20 Title: Contracting Officer Signature: //TAN//

14. Contracting Officer Certification:

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

Typed Name: Timothy A. Nichols Date: 2/4/20 Title: Contracting Officer Signature: //TAN//

15. Legal Concurrence:

Concur:

Date: 02/04/2020

Approval Authority for Acquisitions Equal to or Greater Than $700,000.

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Storage & Shipping Container

b. NSN: 8145-01-515-6458

c. Minimum Quantity: 1,238

d. Maximum Quantity: 5,138

e. Unit Price:

f. Estimated Total Value:

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the provision that the property herein described has otherwise been authorized for acquisition.

SHEARER.MARY.E.12 Digitally signed by

Date: 50702449

SHEARER.MARY.E

Date: 2020.02.10 07:10:24 -05'00'

Title: DLA Land and Maritime Competition Advocate