JA6.302-1aSPE7L320D0014 Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L320RX013

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 for an Indefinite Quantity Contract (IQC) on other than a full and open competition basis. This is necessary because the Government either lacks complete technical data required to manufacture the supplies or must restrict sources due to the criticality of the part. FAR Subpart 13.5 procedures are being used pursuant to 41 U.S.C.

1901. The rationale specific to this item is detailed by its Acquisition Method Suffix Code (AMSC) as stated below in paragraph 4.

3. The supplies required to meet the using activity's needs are described as follows:

NSN ITEM

UNIT ADQ UNIT

PRICE ADV AMSC

2520012449863 Modulator Transmission Cable EA 1055 B

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTION):

MAXIMUM CONTRACT VALUE:

The item is used on the following weapon systems: Truck PCCN CHMMW 1 ¼ ton

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. At this time there is only 1 approved manufacturing source: Orscheln (60602)

The use of the authority cited above is supported by the following Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) of the NSN; which were confirmed as complete and accurate by the Land Product Specialist on 3/20/2020 during the technical review of the NSN for placement on this long term contract initiative.

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.

5. The source listed in the table below, confirmed by the DLA Land and Maritime Product Specialist on March 17,2020 during the technical review of the NSN for placement on this long term contract initiative, is currently the only source with the necessary qualifications, ability, and approval to manufacture the item. This is due to one or more of the following:

(X) The item is a Critical Part; therefore manufacturing sources require ESA approval.

At this time, the listed source is the only source approved by the ESA.

( ) The listed source is the only source that possesses the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function and quality.

( ) The Government either has no data, inadequate data, and/or lacks rights to the data needed to acquire this part from additional manufacturing sources. At this time, only the sources listed possess the complete data and rights to the data.

(X) The above is also supported by the information stated in the item’s applicable AMSC of ___B____.

(X) Orscheln is the only manufacturing source specified on the source control drawing and suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources. Although the Government has the drawing, it is source-controlled drawing. Because the Government does not have full rights to the drawing, the drawing cannot be used to provide full and open competition.

Additionally, although this item is commercial, it is essential that the Government procure the item only from Orscheln because the item supports and is incorporated into a specific military vehicle, the Truck PCCN CHMMW. It is necessary to procure only the item manufactured by Orscheln because this is the only item DLA can ensure will operate properly in the identified military vehicle in accordance with military requirements

(X) In regards to how the NSN is different from other commercially available items e.g.

unique characteristics to ensure the safe, dependable, and effective operation of military equipment (reliability/durability), weapon system coded, critical item of supply, the Product Specialist stated that our military users have set forth requirements to test for leakage, corrosion resistance and tensile strength that the commercial variants do not require due to different environmental users. In addition, this item is weapons system coded and critical as it is needed at the quality set forth in our data for the reliability and durability of the end item and ultimately safety of our users. Other commercially available items are not typically designed to be subjected to the various extreme environments and abuse that the military counterparts are routinely subjected to.

Source:

NSN Description Approved

CAGE

Company Name Approved Part Number

2520012449863 Modulator, Transmission Cable 60602 Orscheln 000-02136-0024

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

A Sources Sought Notice was posted to www.betasam.gov on March 13,2020.

The acquisition will be synopsized in Federal Business Opportunities at least 3 days prior to issuance of solicitation.

The solicitation will be posted to DIBBS.

Dealers of the approved manufacturing sources will be solicited.

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 included: Researching items on-line via the internet for availability, commerciality, and features. Pulling previous procurements of items and determining previous acquisition methods. Determining vendor interest in long term contracting for the items. Researching/gathering info regarding commerciality of the items. Vendor size and business status information. Delivery. Base year and option years; optimal lengths, and possible price/cost advantages.

Market research consisted of review of past procurements, market surveys received from interested parties, and internet sources. Market Research efforts show that this item has been purchased multiple times by DLA and has a relatively stable pricing history. Market research began with the analysis of prior procurements and their respective acquisition strategies. Market research in accordance with FAR Subpart 12.1 was conducted to determine the commerciality of this item. DLA Land and Maritime’s Product Specialist indicated this was a Commercial Of A Type item. Commercial per FAR 2.101(1)(i) - (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. The item is only available from one source controlled approved source as identified above. However, the approved source only quotes through their distributors. Searches on the internet yielded PN available in market as surplus, available overseas and similar item. Actual PN located on E-Bay from two different sellers, US-Army-Military-Shop.de (Euros), Eastern Surplus, and

Adventure Accessories. Similar item located on MP Parts.com. In addition, AM General provided list of sales order to multiple Hummer dealers.

Procurement history:

A Sources Sought Notice was posted to www.betasam.gov on March 13, 2020 for this specific item. The posting remained open until March 20, 2020. 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 interested parties from the sources sought notice.

Market Questionnaires and Surveys were sent out on March 13, 2020 o Techniques used to conduct survey: E-mailed correspondence and spreadsheet.

o Types of information requested: Business size, manufacturer or dealer, price breaks, commerciality, estimated delivery, and quantity sensitivity.

o Total number of vendors contacted: 4- Only 2 responded.

o Names of Vendors Contacted:

• 1) Wheeler Brothers (55683) – Large Business Distributor

• 2) AM General (34623) – Large Business Manufacturer

• 3) Kampi Components (7Z016) - Small Business Dealer

• 4) Orscheln (60602)- Large Business Manufacturer

• Wheeler Brothers and Kampi were previous awardees. AM General listed on main drawing and Orscheln is 3B source.

Name of vendor and summary of information Received:

1) Wheeler Brothers (55683) – Large Business Distributor Did not respond to survey request

2) AM General (34623) – Large Business Manufacturer They are Manufacturer and dealer with actual MFG as Orscheln. Responded that this item is Commercial and is sold to non-governmental customers in same form w/out modification. The Commercial application is Commercial Hummer H1. Provided screenshot of item sold in public and un-redacted commercial sales history was provided. They are interested in providing IDC

3) Kampi Components (7Z016) - Small Business Dealer.

Did not respond to survey request

4) Orscheln (60602) – Large Business Manufacturer.

Responded but did not answer questions. Stated PN could also be quoted as

000-02136-0024-2. Their distributors have

Buyer researched SAP, the Material Master, MM03, IDS and coordinated with the Product Specialist.

Commercial The Product Specialist stated that this item is Commercial Of A Type.

The Product Specialist said the characteristics are essential to the end user because these are the characteristics that ensure proper reliable operation in the environmental conditions that our users are subjected to.

When asked why no other commercial item can meet these essential requirements, the Product Specialist stated that Commercial items are not typically designed to withstand the environments and abuse that military counterparts are subjected to.

When asked when the last time the technical team researched availability of alternative options, the Product Specialist said the item was technically reviewed for alternative options 6/2019.

In regards to Brand Name or Equal specification based on salient characteristics readily available in the commercial marketplace, the Product Specialist said that Commercial items are not typically designed to be subjected to the various extreme environments and abuse that the military counterparts are routinely subjected to.

In regards to how the NSN is different from other commercially available items e.g. unique characteristics to ensure the safe, dependable, and effective operation of military equipment (reliability/durability), weapon system coded, critical item of supply, the Product Specialist stated that our military users have set forth requirements to test for leakage, corrosion resistance and tensile strength that the commercial variants do not require due to different environmental users. In addition, this item is weapons system coded and critical as it is needed at the quality set forth in our data for the reliability and durability of the end item and ultimately safety of our users.

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. The data presently available reflects the minimum needs of the Government.

During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and DLA Land and Maritime Product Specialist for review; no additional sources were identified during those reviews.

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

AM General 34623

11. This item is subject to the following methods of locating additional sources in an effort to overcome barriers to competition:

Solicitation will be posted to DIBBS for a period of 10 days.

The solicitation will contain DLAD Procurement Note: L22 Restriction of Alternate

Offers for Source Controlled Items.

Any offer received for a product other than the approved source, will be directed/ encouraged to contact the cognizant design activity in accordance with DLAD Proc Note L22.

12. Recent Procurement was under SAT and did not contain a J&A.

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. If not exceeding $700,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL/CERTIFICATION:

TUBBS.JOHN.

D.1076026684

Digitally signed by

TUBBS.JOHN.D.1076026684

Date: 2020.04.02 09:36:14 -04'00'

I have reviewed and approve this justification:

Competition Advocate Date Signature

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

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