M0068121R0002-JA_Brand_Name_Final_Signed.pdf

SS

RCO MCIWEST

JA 21-001

3 December 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 6.302-1(c) and under the authority of 10 U.S.C. §2304(c)(1).

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 Region Fleet Transportation (SWRFT) Division.

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. The justification covers only the portion of the acquisition that is subject to OEM brand-name restrictions.

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 equipment 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

Due to the fluctuating quantities of vehicles and equipment continuously added to the fleet, it is not possible to provide a definitive list of the OEM parts that will be required for this contract.

Therefore, a sampling of the most common OEM parts required for SWRFT’s current inventory of vehicles and equipment is provided below:

TYPE MFR PART # DESCRIPTION

OEM CHEVROLET C4500, STAKE 2T 2005754 CAMSHAFT

OEM CHEVROLET SUPR, HANDICAP PASSENGER 12643471 SENSOR

OEM CHEVEROLET SUPR, HANDICAP PASSENGER 22892637 TANK

OEM MACK TRUCKS, REFUGE ROLLOFF 20992943 CONTROL SWITCH ASSY

OEM VOLVE TRUCK, TRACTOR 15T 82710979 HOSE ASSEMBLY

OEM INTERNATIONAL TRUCK, STAKE 3T 1828345C91 SENSOR MAGNETIC POSITION

OEM INTERNATIONAL FIRE, NURSE EMERGENCY 3604881C3 OVERHEAD CONSOLE

OEM INTERNATIONAL FIRE, BRUSH EMERGENCY 2606578C91 PEDAL ASSEMBLY KIT

OEM PIERCE FIRE, BRUSH EMERGENCY 3612612C1 CONVERTER CATALYLIC

OEM PIERCE FIRE, PUMPER EMERGENCY 1878571C95 IPR VALVE KIT

OEM FORD F550, FIRE BRUSH EMERGENCY F7TZ12K073B SENSOR

OEM FORD F450, AMBULANCE EMERGENCY STP281 PUMP ASSEMBLY

OEM TAYLOR-DUNN TRACTOR 12677838 SENSOR

OEM INTERNATIONAL TRUCK, CATCH BASIN 3546241C1 SWITCH PRESSURE

OEM INTERNATIONAL TRUCK, TRACTOR 10T 3549259C2 DOOR HINGE

OEM INTERNATIONAL TRUCK, TRACTOR 10T CR47697 SEAL

OEM INTERNATIONAL TRUCK, MAINT BUCKET 2515195C1 RETRACTOR ASSEMBLY

Based on historical data, the Government estimates the total value of OEM parts subject to brand name restrictions that will be required during the contract period (inclusive of any options) to be up to $1,268,328.29 if all options are exercised. Based on historical data, the total contract award estimate is $21,138,804.77; if the 6-month option to extend in accordance with FAR 52.217-8 is exercised, the estimated cost allocated to OEM parts is 6%.

4. Statutory Authority Permitting Other Than Full and Open Competition.

This J&A is permitted under the authority of 10 U.S.C. §2304(c)(1), as implemented by FAR Subpart 6.302-1, Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The use of OEM parts and equipment is critical to the proper maintenance of government vehicles. Only the OEM can ensure the parts meet original design specifications and allow for immediate installation without reconfiguration. As a result, the use of other-than-OEM may affect vehicle operation and/or safety. This is particularly necessary for fleet vehicles operated by firefighters and other emergency first responders (e.g. fire-fighter trucks, ambulances, security vehicles, Criminal Investigative Division vehicles, and Explosive Ordnance Disposal vehicles). Delays in locating a suitable after market or common part to take the place of an OEM part may have a deleterious impact on the mission schedule for these first responders.

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 and the ability to maintain 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, a Request for Information (RFI)/Sources Sought notice was posted on beta.SAM.gov on 28 October 2020. In addition, a pre-solicitation notice will be posted to further alert potential offerors about this opportunity. In accordance with FAR 6.302- 1(c)(1)(ii)(C), 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

Six sources expressed interest in this acquisition via written response to the RFI that was posted on 28 October 2020. Six potential small businesses, including the incumbent, provided capability statements.

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.

Date

Steve DeLaTorre, Contracting Officer Representative

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

This justification is determined legally sufficient.

Date

Erin L. Hernandez / John W. Torresala, Legal Counsel

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.

Date

Drena J. McIntosh, Contracting Officer

Approval

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

Date LtCol Donald Oliver – Director Regional Contracting Office - MCIWEST