JA6.3021CSPE7LX24R0021.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX24R0021

Controlled by: DLA Land and Maritime Controlled by: SAPD (ZBC)

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC: anna.douglass@dla.mil

DLA Land & Maritime Justification for Other Than Full & Open Competition (March 2023)

[X] ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis.

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

CLIN BRIEF DESCRIPTION NSN

EST. ANNUAL

DEMAND QUANTITY

(ADQ)

EST. ANNUAL

DEMAND VALUE

(ADV) AMSC

0001 STORAGE BATTERY 6140014414272 9,884 $1,745,613.24 3Z

Identify end item, weapon system, or class of item:

The highest end item being supported is 05F (Aircraft, Stratolifter C/KC-135).

ESTIMATED 3 YEAR BASE VALUE: $5,236,839.72

ESTIMATED TOTAL VALUE (3 YEAR BASE + 2 OPTION YEARS): $8,728,066.20

MAXIMUM CONTRACT VALUE: $13,964,905.92

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING

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

[X] 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.

Brief narrative supporting the situation and weapon system:

NSN 6140-01-441-4272 is available only from the coded source Clarios, LLC (CAGE 0UJ55) under part number 8014-045. At this time only Clarios, LLC has been identified as having the data necessary to manufacturer this item and have the technical data and manufacturing knowledge necessary to ensure the battery supports the military vehicle.

Technical review on the NSN was completed on October 27, 2023, and certification received confirming the AMSC coding and the fact that all means to obtain a technical data package adequate for manufacture of the item had been exhausted (See Attachment 1 – Technical Certification).

This battery uses a unique (patented) “gel cell:” technology that is different from other batteries. This technology provides some different characteristics – it is spill proof, handles vibration better, it allows deeper discharge cycles, has lower self-discharge rates and faster recharge times. All of these make this battery unique and different from anything else on the market. This battery technology is unique and patented and the Government is not allowed to reverse engineer patented items. These patents also mean that other companies would not be able to provide a battery with the same salient characteristics.

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

CLIN Contractor CAGE Part Number 0001 Clarios, LLC 0UJ55 8014-045

Clarios, LLC (CAGE 0UJ55) is the only source that has been identified as having the proper complete technical data and manufacturing expertise to supply this item to DLA and the using military services. This item is a Storage Battery that supports the highest end item of 05F (Aircraft, Stratolifter C/KC-135).

The approved CAGE and part number was confirmed by checking the Procurement Item Description (PID) and the Product Master. The Product Specialist reviewed the technical information and recommended for LTC on October 27, 2023. The technical data has indicated that this item is limited to Clarios, LLC as the approved source.

The use of the authority cited below:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

[X] AMSC Z. This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

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

[X] The acquisition will be synopsized on or about November 30, 2023 for 1 day prior to the solicitation opening.

At the completion of the synopsis period, this PR will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS).

[X] The approved manufacturers will be solicited.

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

a. Certified Cost or Pricing data is not required as the NSN has been determined commercial. Cost and pricing clauses/provisions will not be incorporated into the solicitation. This item will be solicited as other than full and open competition. The buyer only intends to award the NSN if a fair and reasonable price determination can be made.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on price analysis, Producer Price Index (PPI), learning curve analysis and/or commercial pricing.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.SAM.gov. In addition to the publishing of a Sources Sought notice, the Market Survey team contacted the sole source/provider for this item.

Sources Sought Notice:

The Sources Sought Notice was posted to www.SAM.gov on November 2, 2023 and closed on November 9, 2023.

A response was received from TD Dragon LLC. They were provided with the Source Approval Request (SAR) guide and advised that they would need to submit a SAR for consideration.

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

[X] A market survey was conducted on/during October 27, 2023.

Total number of vendors contacted: 1.

Names of vendors contacted and responding: Clarios, LLC (0UJ55). A positive response was received from Clarios, LLC.

Techniques used to conduct survey: Email.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

Clarios, LLC (CAGE 0UJ55)

Large business manufacturer Interested in LTC with 3-year base period Items are quantity sensitive Can provide Cost or Pricing Data Indicated that item is commercial Indicated minimum order quantity of 12 Provided quantity price breaks of 12-299 and 300+

Information received regarding the commerciality of the item(s):

The Market Survey respondent indicated that this item is commercial and provided Direct Pricing spreadsheet.

The buyer was able to locate this item online. Previous acquisitions were solicited utilizing FAR Part 12 procedures. Based on previous acquisitions in accordance with DFARS 212.102(a)(ii) and the buyer’s additional Internet research, the Contracting Officer has determined that this item is commercial.

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

[X] Based upon the attached technical certification, 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.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Clarios, LLC (0UJ55) TD Dragon LLC

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

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [X] Other (Explain) Per PGI 206.304, the requirement states, “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed”. Based on a review of the contract history, this item is currently on LTC contract SPE7LX20D0043. The Justification and Approval (J&A) for Other Than Full and Open Competition for SPE7MX19R0148 (Attachment 2) is included.

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.

Megan M. Mielke, Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[X] Over $750,000 to $15,000,000 Competition Advocate

[ ] Over $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] Over $100,000,000 Senior Procurement Executive (SPE)

Attachment(s):

1 – Technical Certification

2 – SPE7MX19R0148 J&A

MIELKE.MEGAN

.M.1364088848

Digitally signed by

MIELKE.MEGAN.M.1364088848

Date: 2023.12.14 14:49:09 -05'00'

DAPO.DOUGLAS

.A.1230220014

Digitally signed by

DAPO.DOUGLAS.A.1230220014

Date: 2023.12.14 17:48:37 -05'00'