JA6.302-1cSPE7LX21D0133 - 21R0052.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7LX21R0052

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. This DLA Land and

Maritime acquisition is for an Indefinite Quantity Contract (IQC) with firm fixed price for the duration of a 1 year base period with 1 one-year option period for a potential total of 2 years. This procurement is for 4 NSNs and supports end items identified in the tables below and in Section B of the solicitation.

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

This initiative is to provide support for 4 Weapon Systems identified in the table below, for use by the Department of Defense.

This item being procured is listed below and includes the Reference Number Category Code (RNCC), which is a code that designates the relationship of the part number to an item of supply. The Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying or is for information only. The proposed acquisition is for DLA-managed items for which large business Donaldson Company, Inc. (18265) is the only source manufacturer. The requirement is being bought to a source controlled drawing and to code and parts (AMCs/AMSCs of 3/B, 3/C, 3/D). The approved source is:

CLIN NSN BRIEF DESCRIPTION COMPANY CAGE P/N RNCC RNVC AMC AMSC

0001 2990012457597 MUFFLER, EXHAUST Donaldson Company, Inc. 18265 WJM09-0554 3 2 3 B 0002 2940014150984 FILTER ELEMENT, INTA Donaldson Company, Inc. 18265 P52-2892 3 2 3 D 0003 2940015142457 FILTER ELEMENT, INTA Donaldson Company, Inc. 18265 P548796 3 2 3 D 0004 2940015265483 FILTER ELEMENT, INTA Donaldson Company, Inc. 18265 P548781 3 2 3 C

*If too numerous, attach list of NSNs and AMSC codes.

RNCC CODE:

3 - Design Control Reference. The primary number used to identify an item of production or a range of items of production, by the manufacturer (individual, company, firm, corporation, or Government activity) which controls the design, characteristics, and production of the item by means of its engineering drawings, specifications, and inspection requirements.

RNVC CODE: 2 - A design control or other reference number that is an item-identifying number for an item of production, or a source control reference or a specification or standard part, type, or similar reference number that is an item-identifying number for an item of supply.

Identify end item, weapon system, or class of item(s):

NAICS CODE NAICS INDUSTRY DESCRIPTION BUSINESS SIZE

336390 Other Motor Vehicle Parts Manufacturing 1,000 333618 Other Engine Equipment Manufacturing 1,500

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 2990012457597 CARRIER, PERS M-113A1, M-113A2, M-113A3 29A

0002 2940014150984 RECOVERY VEHICLE, FU 3NM

0003 2940015142457 TRUCK, M-915 SERIES, M-916A1 (LET) 73A

0004 2940015265483 THIS WILL BE THE PARENT WSDC FOR ALL ARMY MRAP WSDCS MRA

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

Estimated total award value and cost goals:

CLIN NSN ADQ QFD

ESTIMATED BASIC

ANNUAL DEMAND

VALUE (ADV)

ESTIMATED

ONE YEAR

BASE TOTAL

ESTIMATED TOTAL

CONTRACT VALUE

INCLUDING OPTION YEARS

CONTRACT

MINIMUM

CONTRACT

MAXIMUM

(ADV * 1%) (ADV * 2)

0001 2990012457597 173 43 0002 2940014150984 460 115 0003 2940015142457 512 128 0004 2940015265483 4,913 1,228 $

TOTALS $

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

Donaldson Company, Inc. (18265) is the only manufacturing source listed on the drawing. Donaldson Company, Inc. (18265) is the only source manufacturer approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture these items. Donaldson Company, Inc. (18265) is the only source manufacturer that own the data rights to manufacture these items. The Government does not currently possess or have access to detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of these parts.

The use of the authority cited is based on:

The Acquisition Method Code (AMCs) and Acquisition Method Suffix Code (AMSCs) are also listed below. The AMC code describes to the Contracting Officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC code provides the Contracting Officer and other Government personnel with engineering, manufacturing, and technical information. The Sourcing Strategy Specialist verified with SAPD Tech on 11/27/2020 that the AMC/AMSC codes are correct for this procurement. Reference table below:

AMC AMSC

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

A description of the Federal Supply Groups (FSG) and the Federal Supply Class (FSC) for these items are listed below. The FSG is represented by the first two digits of the NSN and identifies, by title, the commodity area covered by classes within the group.

The FSC is represented by the first four digits of the NSN and the code covers a relatively homogeneous area of commodities, in respect to their physical or performance characteristics, or in the respect that the item included therein is such as are usually requisitioned or issued together or constitute a related grouping for supply management purposes. Reference table below:

FSG: 29 - Engine Accessories

FSC 2990: Miscellaneous Engine Accessories, Nonaircraft

Includes: Engine Dynafocal Suspension Mounts; Engine Driven Superchargers (not integrated with engine); Starter Cranks; Engine Starter Ropes; Exhaust Mufflers; Hand Inertia Starters; Air Duck Heaters; Engine Governors; Intake Mufflers; Combustion Type Starters; Miscellaneous Accessories for all Engines except Aircraft and Guided Missile Prime Moving.

Excludes: Electrical Starters Non-Aircraft (FSC 2920); Aircraft (FSC 2925).

FSC 2940: Engine Air and Oil Filters, Strainers, and Cleaners, Nonaircraft

Includes: Components for all Engines except Aircraft and Guided Missile Prime Moving.

Excludes: Air and Oil Filters (FSC 4310, 4330), Strainers (FSC 4730) and Cleaners (FSC 4310) not specifically designed for use with engines.

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

The acquisition will be synopsized 15 days. At the conclusion of the synopsis period, the solicitation will be posted to DIBBS for 30 days.

The previous purchase orders for this project are SPE7L220V1286, SPE7LX19D0153, SPE7LX18D0107, SPE7LX20D0207.

There are no prior J&As related for two of the previous purchase orders as they were under the simplified acquisition threshold. There are two prior J&As related to the other two previous purchase orders and they were pulled from Record Management (Reference Attachment 1).

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

Certified cost and pricing data is not required, as the dollar value of the requirement does not exceed the $2M threshold. Other than certified cost or pricing data may be requested if adequate price competition is not received. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a one-year base period and one option year.

8. Market Research/Efforts to Obtain Competition:

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

A Market Survey was conducted on/during: 12/18/2020

Total number of vendors contacted: 9

Names of vendors responding: Brighton Cromwell, LLC (3NNX8), Cavanaugh Government Group, LLC (5UY76), Centilla Corporation (520A4), JGB Enterprises, Inc. (61125), Kampi Components Co, Inc. (7Z016), Longhorn Regional Service Center, LLC (4GK47)

Techniques used to conduct survey: Email to include a Market Survey questionnaire, an excel spreadsheet and posting a Sources Sought.

Type of information requested: Inquired about the interest of pursuing a Long Term Contract (LTC) for 5-year period to include delivery, cost and pricing data and commercial requirements.

Summary of information received: For this project, the Market Research was conducted by the Sourcing Strategy Branch ZAA and the Contracting Officer. The SSS received market surveys from Longhorn Regional Service Center, LLC (4GK47).

JGB Enterprises, Inc. (61125) responded stating they cannot competitively support mfr CAGE (18925). Brighton Cromwell, LLC (3NNX8) responded stating they have forwarded this to , but this individual never responded. The Contracting Officer requested surveys from vendors that did not respond to the SSS and received no surveys. Cavanaugh Government Group, LLC (5UY76) responded stating they will submit the survey but never did. Centilla Corporation (520A4) responded stating they no longer resell the requested product and will pass on this request. Kampi Components Co, Inc.

(7Z016) responded stating they must decline to bid as Kampi no longer supports the Donaldson product line (Reference Attachment 2).

For this project, the Sources Sought was conducted by the Contracting Officer. A Sources Sought was issued on FedBizOpps on 01/11/2021 and Closed on 01/20/2021. A market survey, an excel spreadsheet, and an alternate offer and source approval request guidance (AO-SAR) package were provided for contractors to fill out for this posting. No responses were received.

Based on market research, a proposal is anticipated by Longhorn Regional Service Center, LLC (4GK47) offering the part numbers from Donaldson Company, Inc. (18265).

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The commerciality code(s) on the Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA stated “N” or were “Blank” as well as in MM03. Longhorn Regional responded to the market survey and checked “No” when asked if the item(s) are commercial. A search online did not indicate that the item(s) are commercial. A separate memorandum detailing this determination has been prepared and is included in the solicitation file.

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

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.

Other: The NSN(s) included on this solicitation was reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to the potential source(s) for the source item(s). The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid Board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts.

Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current source item(s) can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number item(s). The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime Internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

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

• Longhorn Regional Service Center, LLC (4GK47)

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

The solicitation contains Procurement Notes L04 “Offers for Part Numbered Items,” L22 “Restriction of Alternate Offers for Source Controlled Items” and M06 “Evaluation of Offers for Part Numbered Items.” Procurement Notes L04 and M06 applies to NSNs coded with AMSC C and D, and Procurement Note L22 applies to the NSN coded with AMSC B.

ATTACHMENTS:

1. Previous J&As

2. Market Research Summary

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 $750,000, this signature serves as the approval.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approved this justification:

Competition Advocate Date

APPROVAL REQUIREMENTS

Up to $750,000 Contracting Officer

$750,000 to $15,000,000 Competition Advocate

$15,000,000 to $100,000,000 Head of the Contracting Activity (HCA)

Over $100,000,000 Senior Procurement Executive (AQ)

STEIN.MATTHE

W.A.1295794867

Digitally signed by

STEIN.MATTHEW.A.1295794

Date: 2021.03.11 11:44:36 -05'00'

03/24/2021

03/11/2021

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702

Date: 2021.03.24 09:35:12 -04'00'