Justification_and_Approval.pdf

UNITED STATES MARINE CORPS

MARINE CORPS INSTALLATIONS EAST-MARINE CORPS BASE

PSC BOX 20005

CAMP LEJEUNE NC 28542-0005

IN REPLY REFER TO:

Cont 27 May 15

MCIEAST1510

JUSTIFICATION AND APPROVAL FOR

USE OF OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as Contracting Officer, hereby approve the proposed sole source acquisition pursuant to the authority of the test program for commercial items as implemented by FAR Subpart 13.5, Test Program for Certain Commercial Items.

Pursuant to FAR 13.501 (a)(ii), this sole source justification is prepared using the format at FAR 6.303-2.

1. Contracting Activity. Marine Corps Installation East Contracting Office, Camp Lejeune, NC

2. Description of Action Being Approved.

This J&A authorizes the issuance of a new contract, awarded under FAR 13.5, utilizing other than full and open competition procedures. Only one responsible source and no other supplies or services will satisfy agency requirements. A firm fixed-price contract will be used in order to minimize the risk to the Government.

3. Description of Supplies/Services.

This J&A authorizes and approves the award of a sole-source, firm-fixed price contract to Power Test, Inc., N60 W22700 Silver Spring Drive, Sussex, WI 53089 for refurbishment of one Fully Containerized Transportable (FCT) Engine Dynamometer system in support of 2D Maintenance Battalion, Combat Logistical Readiness 24, 2D Marine Logistics Group, Camp Lejeune, NC.

The period of performance for the refurbishment task order is 28 weeks after contract award and four one year extended warranty options.

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

The sole source authority is pursuant to the test program for commercial items at 41 U.S.C. 1901.

5. Rationale Justifying Use of Cited Statutory Authority.

General Support Maintenance (GSM) Company possesses two Fully Contained Transportable (FCT) Dynamometer (dyno) Systems. These two dynos were purchased, commercial-off-the-shelf (COTS), exclusively for GSM Company by II MEF and resultantly GSM Company owns the only two FCTs in II MEF. II MEF purchased the FCTs from Power Test, Inc. due to the company’s equipment being supported by Program Manager Test, Measurement, and Diagnostic Equipment (PM TMDE) via the Fleet Automotive Support Team (FAST) under Marine Corps Systems Command (MARCORSYSCOM). The FAST visits GSM Company annually in order to calibrate TMDE and make on-the-spot repairs to test equipment. The FAST is equipped to calibrate and conduct corrective maintenance on the FCTs due to being trained on Power Test, Inc. equipment.

GSM Company supports II MEF via the Repairable Issue Point (RIP). Before GSM Company can classify components as “serviceable” and deliver them to the RIP for stocking purposes, they have to be tested on dynos such as the FCT. Additionally, II MEF purchased two FCTs in order to accommodate throughput as well as provide GSM Company with a redundant capability, should one FCT become inoperable. Moreover, each FCT consists of two containers. Should one container on one FCT become unserviceable and the opposite container become inoperable on the other FCT; you still have the ability to consolidate into one functional FCT. This is vital to supporting II MEF via the RIP. This redundant capability is reliant upon interchangeability of parts, test fixtures, mounting brackets for a variety of engines and other components, along with Stock Listing 3 (SL-3) items.

GSM Company would lose this capability if another company repaired the Power Test FCT dyno due to lack of compatibility with non-Power Test software and hardware across the lifecycle supportability spectrum. In summary, Power Test, Inc. is the sole source for repairs to the FCT due to FAST/PM TMDE corrective maintenance and calibration requirements, retaining redundancy, and interchangeability of containers between the two FCTs owned by GSM Company, as well as compatibility of software, hardware, test fixtures, SL-3, and mounting brackets. At this time, the Government is unwilling to accept the high level of risk associated with introducing another company’s parts.

Power Test, Inc. is the sole designer, developer, and integrator of FCT Engine Dynamometer system. As a result, Power Test, Inc. is uniquely qualified to provide the complete range of services, technical data and hardware necessary to fulfill the Government’s requirements. The technical data, material, and manufacturing processes required to perform these services and hardware replacement were developed by Power Test, Inc. This privately developed data, along with the corporate expertise are the sole property of Power Test, Inc. To date, Power Test, Inc. is the sole distributor of their parts, no third party is authorized by Power Test to resell or distribute their brand name parts and/or service.

A performance specification, technical data package, or a detailed description suitable for full and open competition cannot be developed because the FCT Dynamometer System is proprietary to Power Test, Inc. The unique capability of the refurbishment of the FCT Dynamometer System provides the Government with required technical capabilities to conducted testing on various military vehicle engines.

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

Sources Sought synopsis was posted to Federal Business Opportunities for interested parties to respond. Notification was posted on 20 May 2015 through 26 May 2015. No responses were received in response to the notification.

Market research was conducted on the capability of other companies to support the refurbishment of the FCT Dynamometer System resulting in no company, other than Power Test, Inc., that can fulfill the Government’s requested needs. The market for engine dynamometer refurbishment exists, yet, due to brand name no other company can provide the requested parts, service and warranties.

Contact was made with Power Test, Inc. on authorized brand name Power Test equipment and service providers. At this time Power Test, Inc. does not authorize third party refurbishment of their equipment maintaining manufacturer specifications and warranty.

7. Determination of Fair and Reasonable Cost

The Contracting Officer will make a determination the anticipated cost to the Government of the services and supplies covered by this J&A will be fair and reasonable.

The fair and reasonableness of the price will be based on an analysis of the contractor’s price proposal, including backup information supporting the price with a combination of published price listing, previously issued contracts, and current market prices for similar items. It is anticipated this analysis will be conducted using experienced technical representative, contract specialists, and field pricing support.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, the Marine Corps has no plans at this time to compete future contracts for the types of supplies/services covered by this J&A. If another potential source emerges, the Marine Corps will assess whether competition for future requirements is feasible.