JA6.3021CSPE7MX21R0150.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-21-R-0150

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.04

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. Technical certification dated June 11, 2021, was provided by a SAPD Technician. The certification states that the acquisition is restricted to source(s) specified on a source control drawing, the Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s), or 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. These items are to be procured from the approved manufacturers (See Attachment 1 – Technical Certification). Spicer Heavy Axle Brake, Inc., Dana Commercial Vehicle Products, and Dana Commercial Vehicle Manufacturing are the only companies known by the Government to possess the technical data necessary to manufacture these items.

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

CLIN Contractor CAGE Part Number 0001 Spicer Heavy Axle Brake, Inc. 1MVZ1 676759

0002 Spicer Heavy Axle Brake, Inc. 1MVZ1 676490

Dana Commercial Vehicle Products 52304 676490

0003 Spicer Heavy Axle Brake, Inc. 1MVZ1 673219

0004 Spicer Heavy Axle Brake, Inc. 1MVZ1 676693

0005 Dana Commercial Vehicle Manufacturing 9R200 676532

0006 Spicer Heavy Axle Brake, Inc. 1MVZ1 673345

Spicer Heavy Axle Brake, Inc., Dana Commercial Vehicle Products, and Dana Commercial Vehicle Manufacturing are the only sources that have been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and the using military services.

The approved CAGE and part numbers were confirmed by checking the Procurement Item Description (PID) and the Product Master. The Product Specialist reviewed the technical information and recommended for LTC on June 11, 2021. The technical data has indicated that these items are limited to Spicer Heavy Axle Brake, Inc., Dana Commercial Vehicle Products, and Dana Commercial Vehicle Manufacturing, as the sources.

The use of the authority cited below:

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

AMC 4. Acquire, for the first time, directly from the manufacturer.

The use of the authority cited is based on:

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. (CLINs 0005 and 0006)

Spicer Heavy Axle Brake, Inc. (CAGE 1MVZ1) (CLIN 0005) and Dana Commercial Vehicle Manufacturing (CAGE 9R200) (CLIN 0006) are the only manufacturing sources specified on the source control drawings. The function of these items is similar, but not exact to the function of other Valve Assemblies (CLIN 0005) and Pressure Switches (CLIN 0006). Although there are other commercial valve assemblies and pressure switches with the same function, it is essential that the Government procure only the respective part numbers manufactured by Spicer Heavy Axle Brake, Inc. and Dana Commercial Vehicle Manufacturing because of variances in dimension. The dimensional variances allow the valve assembly and pressure switch to perform in military specific vehicles per the source-controlled drawings. The Government does not have the rights to the referenced drawings or the complete data necessary to permit full and open competition.

The limited availability of sources for an item coded with an AMSC of “B” is inherent and not severable.

The items are identified with an increased level of criticality therein requiring a high degree of production and manufacturing fidelity. The AMSC provides simple and clear instruction to acquire the item directly from the identified manufacturer only. The source listed below is the only manufacturing source specified on the source control drawing, possessing the complete technical data for the item.

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. (CLINs 0001, 0002 and 0004)

The data for CLINs 0001, 0002, and 0004 is not within the government’s ability to obtain due to the economic limitations and the inability to create drawings or specifications the thoroughly meet the standard required fidelity necessary for the production of the items and their dependable use or end item interaction. Spicer Heavy Axle Brake, Inc. (CAGE 1MVZ1) (CLINs 0001, 0002, and 0004) and Dana Commercial Vehicle Products (CAGE 52304) (CLIN 0002) are the only sources to possess the complete technical data for these items; therefore, they are the only source uniquely qualified to manufacture these items and the only approved source listed for these NSNs.

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. (CLIN 0003)

For the items coded AMSC B, Dana Commercial Vehicle Manufacturing (CLIN 0005) and Spicer Heavy Axel Brake, Inc. (CLIN 0006) are the only manufacturing sources specified on the source control drawings. For the items coded AMSC D, only Spicer Heavy Axle Brake, Inc. (CLINs 0001, 0002, and 0004) and Dana Commercial Vehicle Products (CLIN 0002) have been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and the using military services. For the item coded AMSC R, the Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data. Spicer Heavy Axle Brake, Inc. is the only source known to own or possess the technical data necessary to manufacture the item.

The most critical features in military applications are reliability and performance. A Central Tire Inflation System (CTIS) is a system to provide control over the air pressure in each of a vehicle's tires to improve performance on different surfaces. CTIS is designed to enhance Government defense vehicles with significantly improved all-wheel drive performance, maximum mobility, and full diagnostics. A “limp home” feature prevents disabled military vehicles on the battlefield and in other instances of major tire leaks. CTIS has an automatic emergency mode to handle leaks, and it allows drivers to adjust tire pressure to optimum levels based on vehicle load – for increased traction, longer tire life, and reduced fuel consumption. It maximizes vehicle mobility by adjusting tire pressure to the optimum footprint on any terrain. It promotes confidence whether driving at highway speeds on paved surfaces, unpaved surfaces, or off-road. Additionally, CTIS reduce downtimes associated with tire malfunctions, such as minor punctures, leaks, or immobilization in muddy terrain. From complete mobility optimization and remote wheel-end venting to sealed wheel valves that prevent environmental contamination, the CTIS is designed to transport, deploy, and recover faster. Each of these items are used with the CTIS for military vehicles. It is crucial for the approved part numbers to be used with the CTIS, as the required items have specific requirements and could have a life or death consequences in the event of failure. Spicer Heavy Axle Brake, Inc., Dana Commercial Vehicle Products, and Dana Commercial Vehicle Manufacturing are known to have the required experience and capability to ensure product integrity. At this time, there are no alternate items that will satisfy the military services’ requirements that have been evaluated and approved by the cognizant Government Engineering Support Activity (ESA).

A technical review in support of a potential LTC was performed on June 11, 2021, and the NSNs were determined to be suitable for a long-term contract. The Product Specialist reviewed the technical information, including the AMC/AMSC code, source of supply, etc. and certified it as complete and accurate on June 11, 2021. See Attachment 1 – Technical Certification.

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

The acquisition will be synopsized on or about September 13, 2021 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).

The approved manufacturers will be solicited.

Dealers will be solicited.

In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land and Maritime hosts Captains of Industries bringing in industry leaders for particular commodities or weapon systems. DLA, depending on budget allowance, also holds supplier conferences.

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 acquisition is being solicited as commercial under FAR Part 12. These items will be solicited as Other Than Full and Open Competition. The buyer only intends to award the NSNs 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 commercial price comparison, price analysis, Producer Price Index (PPI), learning curve analysis, and/or informal cost breakdown.

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.beta.SAM.gov. In addition to the publishing of a Sources Sought notice, the Market Survey team contacted the approved sources and past providers from the procurement history.

Sources Sought Notice:

The Sources Sought Notice was posted to ww.beta.SAM.gov on July 8, 2021 and closed on July 15, 2021. No responses were received for the Sources Sought Notice.

Market Research Conclusion:

Market Research was conducted on May 5, 2021. Responses were received from Ruta Supplies, Inc. (0NJT4), Wheeler Fleet Solutions (55683) and Cal Pacific Truck Center, LLC (8TCT2).

DFARS 212.102(a)(ii) and the buyer’s additional Internet research, the Contracting Officer has determined that all items are commercial.

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.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

The following dealers indicated an interest in the acquisition. These dealers have supplied these items in the past from one of the approved sources of supply. The dealers will be included in the bidders list and will be provided a copy of the solicitation.

Ruta Supplies, Inc. (CAGE 0NJT4) Wheeler Fleet Solutions (CAGE 55683) Cal Pacific Truck Center, LLC (CAGE 8TCT2)

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

Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items. (CLINs 0001-0004) Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items. (CLINs

0001-0004) Solicitation contains DLA Procurement Note, L22 Restriction of Alternate Offers for Source Controlled

Items. (CLINs 0005 and 0006) The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competitive.

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, CLIN 0001 was previously on IDPO contract SPE7L3-21-D-61PC and CLINs 0002-0006 were previously on SPE7MX-18-D-0034. The Justification and Approval (J&A) for Other Than Full and Open Competition for SPE7MX-18-D-0034 (Attachment 2) is included.

Attachments:

1 – Technical Certification

2 – SPE7MX-18-D-0034 J&A

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. SAYLOR, Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification. The estimated total value of the J&A is

MARY E. SHEARER, Date Competition Advocate

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

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

SAYLOR.MEGA

N.M.1364088848

Digitally signed by

SAYLOR.MEGAN.M.1364088848

Date: 2021.09.08 15:58:41 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER MARY.E.1250702449

Date: 2021.09.10 12:26:15 -04'00'