JA6.302-1cSPE7LX25D0034 - 24R0062.pdf

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PARTS KIT, HORN BUTT
Solicitation number
SPE7LX24R0062
Issued by

About this file

This is a Justification for Other Than Full and Open Competition (J&A) document for solicitation SPE7LX24R0062 from the Defense Logistics Agency (DLA) Land and Maritime. The acquisition is for an Indefinite Quantity Contract with firm fixed pricing for a 3-year base period plus one 1-year option period for two items: Parts Kit, Horn Butt (NSN 2590013081624) and Housing, Steering Co (NSN 2530014791382).

The J&A cites 10 U.S.C. 3204(a)(1) as authority for limited competition, as TRW, Inc. (CAGE 77640) and Oshkosh Defense, LLC (CAGE 75Q65) are the only approved manufacturing sources with necessary data rights. The items support the Patriot Missile system and Armor Wrecker Truck. Market research included a Sources Sought notice posted on 06/06/2024 and direct outreach to vendors, with BHPE, LLC expressing interest but not providing requested information. The procurement will be synopsized for 15 days on SAM.gov followed by a 30-day solicitation period on DIBBS. The items are determined to be non-commercial and will be solicited under FAR Part 15 procedures. While specific dollar values are redacted, the requirement is below the $2M threshold for certified cost/pricing data.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SPE7LX24R0062

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 3-year base periods with 1 one-year option period for a potential total of 4 years. This procurement is for multiple NSNs and supports end item(s) 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 Weapon System(s) identified in the table below, for use by the Department of Defense.

The proposed acquisition is for a DLA-managed item(s) for which large businesses identified in the table below are the only manufacturing sources. The items being solicited are code and part number items; the Acquisition Method Code (AMC) / Acquisition Method Suffix Code (AMSC) and the approved sources are as follows:

CLIN NSN BRIEF DESCRIPTION COMPANY CAGE P/N AMC AMSC

0001 2590013081624 Parts Kit, Horn Butt TRW, Inc. 77640 465638 1 C

Oshkosh Defense, LLC 75Q65 1702240 1 C 0002 2530014791382 Housing, Steering Co Oshkosh Defense, LLC 75Q65 3233514 1 R

TRW, Inc. 77640 FC32006 1 R

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

NAICS CODE NAICS INDUSTRY DESCRIPTION BUSINESS SIZE

336992 Military Armored Vehicle, Tank and Tank Component Manufacturing 1,500 336330 Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing 1,000

Weapon system(s) being supported with this project:

CLIN NSN WEAPON SYSTEM WSDC

0001 2590013081624 Missile, Patriot 39A 0002 2530014791382 Truck, Wrecker, Armor 50M

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

THREE YEAR

BASE TOTAL

ESTIMATED TOTAL

CONTRACT VALUE

INCLUDING OPTION

YEARS

CONTRACT

MINIMUM

CONTRACT

MAXIMUM

(ADV * 1%) (ADV * 5)

0001 2590013081624 1,333 333 0002 2530014791382 322 81

TOTALS

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

10 U.S.C. 3204(a)(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:

TRW, Inc. (77640) and Oshkosh Defense, LLC (75Q65) are the only manufacturing sources approved to obtain the data needed not being available to the Government. The same sources listed above are the only manufacturing sources that own the data rights to manufacture the item(s). 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 the part(s).

The use of the authority cited is based on:

The AMC(s)/AMSC(s) is also listed below. AMC code(s) describes to the Contracting Officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and AMSC code(s) provides the Contracting Officer and other Government personnel with engineering, manufacturing, and technical information. Pursuant to FAR 6.303-2(c), the SAPD Technical Personnel certified on 03/22/2024 that the supporting data, including the AMC(s)/AMSC(s) code(s) and approved source(s), is complete and accurate. Reference table below:

AMC(s) AMSC(s)

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

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 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.

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

The acquisition will be synopsized for 15 days prior to the solicitation opening on https://sam.gov/. At the conclusion of the synopsis period, the solicitation will be posted on the internet via the DLA Internet Bid Board System (DIBBS) for 30 days.

For this project, the Sources Sought was conducted by the Contracting Officer. A Sources Sought was issued on FedBizOpps on 06/06/2024 and closed on 06/17/2024. A market survey and an excel spreadsheet were provided for contractors to fill out for this posting. From the Sources Sought Notice, BHPE, LLC (9SWS7) responded but did not provide the survey. The survey was requested by the Contracting Officer, but no response was received.

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.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 3204(e)(2)(D)]:

A Market Survey was conducted on/during: 05/30/2024

Total number of vendors contacted: 4

Names of vendors responding: Baker & Associates, Inc. (5S670)

Techniques used to conduct survey: Email to include a Market Survey questionnaire and an Excel spreadsheet and the posting of a Sources Sought Notice with a Market Survey questionnaire and an Excel spreadsheet attached.

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: The SAPD Strategic Sourcing Specialists emailed 2 vendors the market survey: Oshkosh Defense, LLC (75Q65) and Ruta Supplies, Inc. (0NJT4), with no vendors providing a survey.

The current Contracting Officer emailed 4 vendors the market surveys: Baker & Associates, Inc. (5S670), Oshkosh Defense, LLC (75Q65), Ruta Supplies, Inc. (0NJT4) and Wheeler Fleet Solutions Co. (55683). Baker & Associates responded stating not interested, and 2 bounced emails for one of the contacts for Wheeler Fleet were received (Reference Attachment 1).

Based on market research, a proposal might be anticipated by BHPE, LLC, Oshkosh Defense and Ruta Supplies.

Information received regarding the commerciality of the item(s): The requirement will be solicited based on FAR Part 15 procedures. The Data Refresh Spreadsheet received from the Sourcing Strategy Branch ZAA and MM03 indicates the item(s) as non-commercial. A search online indicates the item(s) as non-commercial. The Contracting Officer has determined the item(s) to be non-commercial and 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.

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:

BHPE, LLC (9SWS7)

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

The solicitation contains Procurement Notes L04 “Offers for Part Numbered Items” and M06 “Evaluation of Offers for Part Numbered Items.”

12. Previous J&A Justifications:

A previous J&A was found for NSN 2590013081624. All prior buys for NSN 2530014791382 were under the SAT and no J&As were required.

ATTACHMENTS:

1. Previous J&A

2. Market Research Summary

3. Technical 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 $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: 2024.09.30 06:59:14 -04'00'

09/30/2024

09/30/2024

WIEBUSCH.JAM

IE.1251897324

Digitally signed by

WIEBUSCH.JAMIE.12518973

Date: 2024.09.30 09:57:49 -04'00'

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