M0068120Q0035-COPARS JA_SAP_BrandName_Final_Redacted.pdf

RCO MCIWEST

JA 20-004

07 August 2020

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

This document constitutes justification and approval for other than full and open competition for the acquisition described herein, in accordance with FAR Subpart 13.501(a)(ii) and under the authority of 41 U.S.C. §1901.

1. Contracting Activity

U.S. Marine Corps, Regional Contracting Office (RCO) Marine Corps Installation West

Marine Corps Base (MCB), Camp Pendleton, CA 92055

2. Nature and/or Description of Action Being Approved

The Government is seeking to award a contract on a competitive basis for services to deliver repair parts and replacement components for government vehicles and heavy equipment maintained by the United States Marine Corps (USMC) Southwest Regional Transportation

Fleet (SWRFT).

The intent of this justification and approval (J&A) is to authorize the purchase of brand name original equipment manufacturer (OEM) parts needed to repair these government vehicles and heavy equipment.

3. Description of Supplies/Services

The purpose of this requirement is to provide repair parts, replacement components, supplies, materials, equipment and related services for automotive, forklifts, heavy equipment, material handling, construction, and civil engineering via a contractor-operated parts store (COPARS), direct delivery service, or the most efficient means possible. This effort supports the SWRFT, which consist of seven (7) sites throughout California and Arizona.

The items covered by this justification are original equipment manufacturer (OEM) parts needed to repair SWRFT vehicles and heavy equipment. OEM parts are manufactured by or under licensure of the original equipment or auto manufacturer. OEM parts are rarely cheaper, if at all than aftermarket (or common) parts. In these situations, the aftermarket (or common) part may be procured vice an OEM part. When an aftermarket part is available at lower cost, the

Contractor shall provide the aftermarket part. The Government also reserves the option to specify “OEM Requested” and the Contractor shall provide the OEM item when requested by the Contractor Officer Representative or other authorized Government representative.

UNITED STATES MARINE CORPS

MARINE CORPS INSTALLATIONS WEST-MARINE CORPS BASE

BOX 555010

CAMP PENDLETON, CALIFORNIA 92055-5010

In addition to ensuring proper maintenance and vehicle safety. The use of OEM parts are also required for aged beyond expected life vehicles and end-of-life heavy equipment where an aftermarket part is not an option. Manufacturers may require the use of OEM parts on newer vehicles and equipment because the use of a non-OEM part may void existing OEM warranties.

Use of a non-OEM part would not only impact mission readiness, the ability to maintain their advance life support services, but it would result in preventable costs to SWRFT for the repair of vehicles that would ordinarily be subject to warranty. The small-dollar differential between non-OEM parts versus OEM parts would not offset the cost of repairs in the event of a voided warranty.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Possible

This requirement will be competed as a 100% small business set-aside. To alert industry of this requirement, two Requests for Information (RFIs)/Sources Sought notices were posted on beta.SAM.gov on 15 January 2020 and 20 February 2020. In addition, a pre-solicitation notice was posted on 21 July 2020, to further alert potential offerors about this opportunity. In accordance with 13.501(a)(iv), the J&A will be posted along with the solicitation.

7. Determination of Fair and Reasonable Cost

The Government anticipates receiving these parts at the manufacturer’s suggested retail price or through a volume discounted price normally offered to preferred customers that receive economies of scale ordering. Under this effort, the Government requires commercially available OEM parts with published catalog pricing. These parts are sold in substantial quantities to commercial customers throughout the world. The Contracting Officer shall use market research to ensure brand name specific items offered under the resultant contract are priced at or below catalog pricing and/or commercial pricing available to all commercial customers.

8. Market Research

(a) A survey of past contracts was performed, which revealed OEM parts have historically been required to support SWRFT’s mission. Interviews conducted with SWRFT’s technical team confirmed the need for vehicle repair, replacement, and heavy equipment parts that are only manufactured by OEMs. SWRFT further confirmed that existing warranties would be voided if non-OEM parts and replacement components were used for repair.

(b) Research efforts also included a survey of various literature on the safety merits of using

OEM parts versus non-OEM parts (also called referred to as “aftermarket” or “third party parts”). This included a GAO report that identified multiple studies that questioned the safety of using aftermarket parts in lieu of OEM parts.

(c) Literature authored by the National Highway Traffic Safety Administration (NHTSA) was reviewed. According to the NHTSA, “if the vehicle manufacturer recommends that only an

OEM part should be used [for new vehicles], the repair shop must use the OEM part or contact the manufacturer to get its concurrence that the vehicle will meet the Federal motor vehicle safety standards (FMVSS)” embedded in the National Traffic and Motor Vehicle Safety Act.

To do otherwise would risk violation of the Safety Act. (Ref. NHTSA correspondence dated

April 17, 2015 titled “30122 - Make inoperative - Alan Nappier, April 14”).

(d) A review of FPDS-NG and beta.SAM.gov revealed that several COPARS, vehicle repairs and replacement parts, equipment, and maintenance contracts have been awarded to various large and small businesses to support government agencies. These contracts all include requirements for OEM repair parts and replacement components

9. Other Facts Supporting Use of Other Than Full and Open Competition

N/A

10. Interested Sources

Seven sources expressed interest in this acquisition via written response to the two-posted RFIs:

six potential small businesses and one large business.

11. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, there are no plans at this time to remove the requirement for OEM parts as covered by this document. If another potential alternative to

OEM parts emerges, the RCO MCIWEST will assess whether competition for future requirements is feasible.

Certifications and Approval

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION (FAR 6.303-2(c)):

I certify that the supporting data under my cognizance, which is included in this justification, are accurate and complete to the best of my knowledge and belief.

REVIEW FOR LEGAL SUFFICIENCY (MAPP 1.602-1-100(b)(6)):

This justification is determined legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12)):

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Approval

COMPETITION ADVOCATE (PROCURING ACTIVITY) (FAR 6.304(a)(2)):