JOFOC_UZ Toyotas sole source.pdf

SOLE SOURCE JUSTIFICATION FOR SIMPLFIED ACQUISITIONS

FAR Part 13.106-1

1. Identification of the agency and the contracting activity:

The Office of Acquisition Management, Regional Procurement Support Office Frankfurt is conducting this acquisition for Toyota passenger vehicles on behalf the

Nonproliferation and Disarmament Fund (NDF) of the U.S. Department of State, and in coordination with the Export Control and Border Security Program at U.S. Embassy

Tashkent. The total estimated cost is $2,400,000.

2. The nature and/or description of the action being approved.

This action is to approve the purchase of the specific brand and types of Toyota vehicles described in Section 3 below. The vehicles will be provided to the Uzbekistan Border

Guards (BG) in Tashkent for their exclusive use, in support of border security and counter-weapons-of-mass-destruction (WMD) security programs. The BG will assign the vehicles to border troops responsible for security operations in the green border areas

(areas of land between official border crossing points) throughout Uzbekistan. The vehicles will be used to patrol off-road areas that smugglers might use to conduct illicit activity near the border or attempt to cross the border illegally. The BG will also use the vehicles to intercept, arrest and transport suspicious subjects identified during patrolling or other means. Ultimately, this capability will help prevent the trafficking of contraband, illicit goods, conventional arms and weapons of mass destruction across

Uzbekistan’s international borders.

The procurement is to be limited to specific types, with aftermarket accessories, of vehicles within the Toyota brand for reasons cited in Section 5 of this document. The acquisition of the subject vehicles will result in a new firm-fixed price purchase contract.

3. A description of the supplies or services required to meet the Department’s needs.

Forty (40) units of factory-new Toyota Hilux SFX M3: model code TGN126L-DTMLK, model year 2020 or newer; technical specifications attached, color: silver.

Additional aftermarket accessories installed include:

1) Over-rail Bed Liner: Plastic or Spray

2) Aluminum front and rear bumper black powder coat with fog and back-up lighting options. No manufacture logo showing. Minimum .18-inch (4.5mm) thickness of aluminum.

3) All-terrain tires, stock size five (5) per vehicle: (BF Goodrich KO2, or Goodyear

Wrangler Duratrac).

4) One (1) 20 L metal gas can, with lockable holder attached in bed of the vehicle.

5) Emergency road-side Kit (one per vehicle).

6) Tinted windows: side and rear, only. No greater (darker) than 50% tint.

7) Rubber/plastic floor mats, entire vehicle.

Ten (10) units of factory-new Toyota Fortuner: model code TGN156L-STMLKW, model year 2020 or newer; technical specifications attached, color: silver.

Additional aftermarket accessories installed include:

1) Aluminum front and rear bumper black powder coat with fog and back-up lighting options. No manufacture logo showing. Minimum .18 inch (4.5mm) thickness of aluminum.

2) All-terrain tires, stock size five (5) per vehicle: (BF Goodrich KO2, or Goodyear

Wrangler Duratrac).

3) Emergency road-side Kit (one per vehicle)

4) Tinted windows: side and rear, only. No greater (darker) than 50% tint.

5) Rubber/plastic floor mats, entire vehicle.

Note: 1) The vehicles shall be purchased from a Toyota dealer who is authorized by the manufacturer, Toyota Sumitomo Corporation to serve as their sole authorized representative in Uzbekistan. and 2) a certified and authorized Toyota service center, must be located within the city limits of Tashkent, Uzbekistan. The certified and authorized service center shall be required to honor the warranty package associated with the purchase of the vehicles for the stated warranty period and be capable of providing and installing Original Equipment Manufacturer (OEM) parts for the vehicles.

4. An identification of the statutory authority permitting other than full and open competition:

This acquisition is conducted under the authority 41 U.S.C. 3304(a)(2) as implemented by FAR 6.3, and substantiated by the following regulatory authority:

☒ FAR 6.302-1 Only One Qualified and Responsible Source: There is only one qualified and responsible source that can provide the vehicles for end-use in Uzbekistan due to a requirement to purchase specific Toyota vehicles with the characteristics and features required.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

This project is for the United States Government (USG) to provide equipment imperative for the Uzbekistan Border Guards to detect and interdict illicit activities and radiological/nuclear materials transiting through the Afghanistan/Uzbekistan, Tajikistan/Uzbekistan, Kazakhstan/Uzbekistan, Turkmenistan/Uzbekistan and

Kyrgyzstan/Uzbekistan borders. The Toyota vehicles in this project will be used to enhance Border Guards’ existing WMD detection capabilities by being able to detect unauthorized border crossings and interdict subjects in a timely manner.

These vehicles will be used for on-and-off-road law-enforcement functions requiring extremely robust and rugged vehicles, light enough to be driven through mud and snow, heavy enough to maintain traction in off-road use, that are comparable with the vehicles already in use by the Uzbekistan Border Guards.

The motor vehicle market in Uzbekistan is very limited. Until independence in 1991, no vehicles of any sort were commercially sold in Uzbekistan other than those manufactured in the former Soviet Union. After independence, Toyota – the choice of most international organizations for terrain such as that found in Uzbekistan – became the first and most-widely used imported (non-Soviet) vehicle. The Toyota Hilux – which now has models specifically designed for Central Asian conditions – is and remains the medium-sized vehicle of choice for most organizations in the region. The Uzbekistan Border

Guards have standardized on it. It is the vehicle with which the BG motor vehicle staff – mechanics and drivers – are most familiar.

These vehicles will be used both on-road (for movements between Tashkent and border locations) – and off road, in the green border areas. These off-road areas are extremely isolated and hostile, both in terms of unforgiving natural environment and in terms of dangers posed by armed smuggling cartels. Vehicle breakdowns could lead to stranding for hours or days, leaving BG staff vulnerable to attack or to dangers from the elements.

For these reasons, it is vital that vehicles be reliable, known, and well maintained. The

Border Guards standardization on specific brands, and the Toyota Hilux’s relative ubiquity for such use in the region, are a key element in reducing such risks.

The vehicles requested by the Border Guards under this project have a solid record of reliability while operating under the specific extreme conditions found in the region.

Furthermore, spare parts and after sales service options for Toyota vehicles are available within Tashkent, Uzbekistan and even, to some degree, in larger rural towns closer to the border. There are no other comparable vehicles in-country with the same availability of parts and after sales service capabilities.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, include whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Notice of this acquisition will be published per FAR5.201. This justification for Other than Full and Open Competition shall be published on FedBizOpps in accordance with

FAR section 6.305 within 14 days after contract award.

EXBS specialists and NDF, in conjunction with A/LM, conducted local and international market research. This research confirmed that a) Toyota Sumitomo Corporation has a firm policy against allowing its dealers to compete with the sole authorized dealer in a region, and b) that buying from any reseller would be more expensive both in terms of vehicle cost and shipping. Furthermore, no other dealer could offer the exact vehicle desired, and none could offer a warranty that Toyota would honor.

There is one, sole, authorized Toyota Central Asia FZE (TCA), based in Dubai, U.A.E.

“Toyota Central Asia FZE (TCA)” that is the sole official distributor of “Toyota Motor

Corporation” for Turkmenistan, Tajikistan, and Uzbekistan. The distributor operates a dealership in Tashkent, Uzbekistan that is the only supplier that possesses the local presence and capabilities to deliver the requested vehicles in Section 3 above and honor the warranty for those vehicles.

7. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable.

The EXBS Program at U.S. Embassy Tashkent and NDF Program has determined that the anticipated cost to the Government will be fair and reasonable.

8. A description of the market research conducted (per FAR Part 10) and the results or a statement of the reason market research was not conducted.

The EXBS Program Advisor conducted extensive in-country market research in

Tashkent, Uzbekistan between May 2019 and October 2020, and found that Toyota was the only brand-name certified vehicle provider of medium duty trucks and SUVs to the

Uzbekistan market. Additionally, Toyota was the only potential vendor that could provide servicing with OEM parts to the vehicles.

Additionally, from May 2019 to October 2020, the EXBS Program held multiple conversations and email exchanges with other authorized Toyota dealers. From those discussions, with dealers in Kazakhstan, Dubai and Gibraltar, it was determined that only

Toyota Central Asia was authorized to provide Toyota vehicles to the Uzbekistan market.

Other authorized Toyota dealers are excluded from providing vehicles to the Uzbekistan market.

NDF worked with A/LM to research the sources normally used by the Department of

State’s motor vehicle program (A/LM/PMP/MV) to source and purchase Toyotas for overseas use, currently Toyota Gibraltar USA (TGSUSA). TGSUSA confirmed that their stock vehicles do not meet Uzbekistan’s standards for importation, and that Toyota’s compliance team would not allow them to order from the factory, given that there is a sole authorized representative in Tashkent. A/LM confirmed that RPSO Tokyo no longer exists and that the relationship that RPSO Tokyo formerly had with Toyota Sumitomo has been replaced by the use of TGSUSA.

Both NDF and the EXBS Program Advisor have concluded that the sole-source purchase order with Toyota Central Asia FZE is the only effective way to meet the Uzbekistan

Border Guards’ needs and fulfill the State Department’s mission objectives.

9. Any other facts supporting the use of other than full and open competition such as:

None

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

Yoshinori Ichikawa

Director, Toyota Central Asia FZE

Yuriy Sheerman

General Manager

Sales&Marketing Division, Uzbekistan yury@toyota-centralasia.com

Toyota Central Asia FZE

Level 2, The Offices 3, One Central, Dubai World Trade Centre P.O. Box 415208, Dubai, United Arab Emirates

Phone: +971 (4) 824 0814

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition before any subsequent acquisition for the supplies or services required. Include a statement that this J&A for other than full and open competition will be published on FedBizOpps in accordance with FAR Section 6.305 within 14 days of award (or within 30 days if the J&A is for unusual and compelling urgency.)

None apply. This J&A for other than full and open competition shall be published on

FedBizOpps in accordance with FAR section 6.305 within 14 days after award of the resulting contract.

CERTIFICATIONS

TECHNICAL AND REQUIREMENTS CERTIFICATION AQM QA Plan

I certify that this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition.

SIGNATURE:

Daniel Hirsch Date

NDF Program Manager

NDF

December 10, 2020original signed

I certify that this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition.

SIGNATURE:

Dennis J. Gallagher Date

Assistant Legal Advisor, L/BA

Dennis J. Gallagher

RSPO Signatures and Contracting Officer Certification

Contracting Officer’s Certification

I certify that the justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition.

SIGNATURE:

Eric N. Moore Date

Contracting Officer

A/LM/AQM/RSPOFR

Competition Advocate’s Approval

Sharon D. James Date

Competition Advocate

A/OPE/AP/PD

original signed original signed original signed