Redacted_HCA_signed_JA_SPE7LX24R0050.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-24-R-0050

[X] 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.

[X] Other: (Explain) Although there are other commercial valve assemblies with the same function, it is essential that the Government procure only the respective part number manufactured by Dana Commercial Vehicle Manufacturing because of variances in dimension. The dimensional variances allow the valve assembly 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 above is the only manufacturing source specified on the source control drawing, possessing the complete technical data for the item. A technical review in support of a potential LTC was performed in June and October 2023. The NSN was determined to be suitable for an LTC at that time by SAPD’s product specialists. The product specialist certified on 0 / /2024 that the technical information, including the AMC/AMSC code and approved sources, are complete and accurate. See attachment #1, CL2309 00 .

Based on the procurement history and a technical review, the solicitation will be issued as an other than full and open acquisition, in accordance with Federal Acquisition Regulation (FAR) 6.302-1.

This NSN shows CAGE 9R200 / Dana Commercial Vehicle as the only approved source and original equipment manufacturer (OEM) for it. This NSN is currently covered by long-term contract SPE7MX-22-D-0094, which has its current term expire 08/01/2025. However, based on increasing customer demands for this item, the contract will reach its maximum obligation dollar value prior to that date and will then become unavailable for issuance of delivery orders. Given the high demand for this NSN, the Agency desires to have another LTC in place prior to when the current contract reaches its maximum obligation dollar value.

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

[X] The acquisition will be synopsized on or about 05/17/2024 for 15 days. At the completion of the synopsis period, this acquisition will be solicited for a minimum of 30 days via the DLA Internet Bid Board System (DIBBS).

[X] Other. A sources sought notice was posted to www.SAM.gov on 10/31/2023 and closed on 11/07/2023. One response was received for the notice and is summarized below.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

Source Selection Information – See FAR Part 2.101 and 3.104.

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SOLICITATION SPE7LX-24-R-0050

Source Selection Information – See FAR Part 2.101 and 3.104.

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This will be a five-year, firm fixed price, indefinite delivery indefinite quantity type contract. The five-year period is inclusive of one (1) one-year base period and four (4) 1-year option periods. As such, the price analysis for the future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes.

Based on the results of market research, the buyer anticipates receiving only two offers of one approved manufacturer’s parts. Adequate price competition is not expected to exist at time of evaluation of proposals. The buyer anticipates using comparison to past reasonable purchases (adjusted for passage of time and quantity sensitivity), and comparison to commercial prices found during market research, to support a reasonableness determination. In addition, future period pricing shall be periodically redetermined in accordance with DLA procurement note H12, Price Redetermination-Prospective, using other than certified cost and price data.

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.sam.gov. The approved manufacturer and current contract holder were contacted by the contracting officer regarding interest in a potential LTC, along with three dealers who submitted quotes on the last standalone purchase or had previously submitted market research in response to the sources sought notice. Two dealers, including the current contract holder, provided completed survey documents to the contracting officer.

Sources Sought Notice:

On 10/31/2023, a Sources Sought notice was posted to www.sam.gov, which also contained attached market survey documents. The date of return referenced on the sources sought notice was 11/07/2023. The sources sought notice contained the NSN. One source, 31902 / VSE Corporation, responded with interest for the acquisition. When the contracting officer contacted VSE Corporation’s representative in February 2024 to update the previous market research, the firm responded saying they were still interested, but that their sister firm, 1D510 / Vectrus Systems Corp.

would be responding to the solicitation.

Market Research Conclusion:

A market survey was conducted: 10/12/2023 – 03/05/2024.

Names of vendors contacted and responding:

a. 0NJT4 / Ruta Supplies, Inc. – responded.

b. 9R200 / Dana Commercial Vehicle – did not respond.

c. 4GK47 / Kyrish Government Services – did not respond.

d. 0GE52 / Drive Line, Inc. – did not respond.

e. 1D510 / Vectrus Systems Corp. – responded.

Techniques used to conduct survey: E-mail, telephone.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

SOLICITATION SPE7LX-24-R-0050

Source Selection Information – See FAR Part 2.101 and 3.104.

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Summary of information received:

The market survey sought and gathered information including, but not limited to, commerciality, option periods, quantity/price breaks available, and certified cost/price data capability.

a. 0NJT4 / Ruta Supplies, Inc. provided the following information:

i. Small dealer supplying the product of 9R200 / ii.

iii. Is willing to pursue an LTC with DLA L&M iv.

v.

vi.

vii.

viii.

ix. Does not consider item to be commercial in nature x.

xi.

xii.

b. 1D510 / Vectrus Systems Corp. provided the following information:

i. Large dealer supplying the product of 9R200 / ii.

iii. Is willing to pursue an LTC with DLA L&M iv.

v.

vi.

vii.

viii. Does not consider item to be commercial in nature ix.

x.

xi.

In addition, the buyer conducted internet searches, commercial database searches, and researched past procurements, etc. The buyer was able to find the item online. This is a component of a commercial end item. Though information on the end item alone is not completely sufficient evidence to establish commerciality, this aspect is yet another factor in determining the item commercial. MM03 COTS field for the NSN has an entry of Y, indicating the technical community has recommended that the item be determined commercial. According to their returned surveys, Ruta Supplies, Inc. and Vectrus Systems Corp. do not consider this item to be commercial in nature. The contracting officer researched the item in Google. This specific part number was found to be available for purchase by the public directly via Internet e-commerce or through dealers. See attachment #3, 676532 Google results. The NSN itself, though, was not available for purchase through e-commerce sites and was only associated with Government based information sources. See attachment #4, 4820015652135 Google results. The NSN itself is not listed on any GSA Federal Supply Schedules, but the manufacturer’s part number is found on one GSA schedule. Since the part is only found on one GSA schedule, and at a significantly higher price than the current contract’s prices, Part 8 acquisition procedures will not be used for this acquisition. Threfore, the contracting officer has determined that

SOLICITATION SPE7LX-24-R-0050

Source Selection Information – See FAR Part 2.101 and 3.104.

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the item meets the FAR Part 2.101 definition of a “commercial product” under (1)(i) or (ii) and the acquisition will be conducted under FAR Part 12, Acquisition of Commercial Items.

9. Additional facts supporting other than full and open competition are:

[X] 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) Ruta Supplies, Inc. / 0NJT4; Vectrus Systems Corp. / 1D510

11. These items are subject to the following methods of locating additional sources:

[X] The solicitation contains DLAD Procurement Note L22, Restriction of Alternate Offers for Source-Controlled Items.

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. The J&A for the previous contract’s solicitation SPE7MX-21-R-0150 is attached. It is noted that NSN 4820-01-565-2135 is one of six (6) NSNs included on R-150’s J&A.

Approvals appear below.