Redacted JA.pdf

Justification for Other Than Full and Open Competition Solicitation: SPE7LX-21-R-0085

Controlled Unclassified Information Source Selection Sensitive Information See FAR 2.101 and 3.104 Page 2 of 10

For this acquisition, each of the 13,656 NSNs will be grouped into an active or an inactive group upon solicitation closing and will be predicated upon the current technical, packaging or supply data of the NSN. Active NSNs have been determined to be sole source to John Deere and have no technical, packaging or supply issues. Inactive NSNs are sole source to John Deere but currently have technical, packaging or supply issue(s). Any NSN deemed inactive will not be awarded under the resulting contract until the issue(s) have been resolved. This will result in phased awards as the issue(s) with inactive NSNs are fixed and they are added to the active NSN population.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c)(1), implemented by , as the supplies required by the agency are available from only one or a limited number of responsible sources and no other type of supplies will satisfy the requirements of the agency.

5. Reason for Authority Cited: As the Original Equipment Manufacturer (OEM), John Deere has 13,656 items available on their CPL that correspond with DLA NSNs and for which John Deere has the technical data, data rights, and manufacturing knowledge necessary to manufacture these NSNs and is currently the only producer of these parts at this time to support the weapons systems listed above. While secondary sources may be listed for some NSNs in the attached Technical Data Spreadsheet, these sources are excluded parts which are blocked, deleted, or no longer approved per the transaction code MP02 - “Display Approved Manufacturer Parts List” within the DLA Enterprise Business System. Each NSN within this requirement was grouped into the applicable Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) per the definitions referenced below and listed within the Technical Data Spreadsheet.

The 13,656 NSNs within this requirement contain the following AMCs:

AMC 1 - 543 NSNs. Suitable for competitive acquisition for the second or subsequent time.

AMC 3 - 12,764 NSNs. Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMC 4 - 186 NSNs. Acquire, for the first time, directly from the actual manufacturer.

AMC 5 - 163 NSNs. Acquire directly from a sole source contractor which is not the actual manufacturer.

The 13,656 NSNs within this requirement contain the following AMSCs:

AMSC B - 6 NSNs. 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. Due to the criticality of the NSN, procurement is restricted to the source(s) specified on “Source Control” drawing. For NSNs coded AMSC B, John Deere is the only manufacturer listed on the Source Control drawing.

AMSC C - 105 NSNs. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant Government engineering activity.

See FAR 2.101 and 3.104 Page 3 of 10

The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity’s procedures, AMCs 1 or 2 are valid. For NSNs coded AMSC C, John Deere is the only source that retains the data rights, manufacturing knowledge, or technical data that is essential to maintaining the quality of the parts, and is the only source currently approved by the design control activity.

AMSC D - 3,991 NSNs. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid. For NSNs coded AMSC D, John Deere is the only source known to own or possess the technical data necessary to manufacture these part numbers.

AMSC H* - 40 NSNs. The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For NSNs coded AMSC H, John Deere is the current source and is the only known supplier to have the data to provide the material. These NSNs will be synopsized and solicited; however, they will not be awarded until a permanent AMSC is assigned as items coded as AMSC H on Long-Term Contracts are subject to annual review for in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 217.7506.

AMSC L* - 125 NSNs. The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For NSNs coded AMSC L, John Deere is the only source of supply that is currently able to provide the materials for these NSNs as a manufacturer. These NSNs will be synopsized and solicited; however, they will not be awarded until a permanent AMSC is assigned as items coded as AMSC L on Long-Term Contracts are subject to annual review for possible assignment of a different or permanent AMSC when the Annual Demand Value is greater than $10,000.00 and will not be placed on contract (or will be removed from contract, as applicable) if the annual screening and review does not result in assignment of a permanent AMSC code within one year of the date the J&A is approved.

AMSC P - 62 NSNs. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this NSN, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this NSN, AMCs 1 or 2 are valid. For NSNs coded AMSC P, John Deere is the only source that possesses the rights or data to manufacture these parts.

See FAR 2.101 and 3.104 Page 4 of 10

AMSC Q - 59 NSNs. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months.

Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, re-procurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q NSNs are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. For NSNs coded AMSC Q, John Deere currently possesses the data or rights to the data for these NSNs and is the only company known to manufacture these parts.

AMSC R - 562 NSNs. The Government does not own the data or the rights to the data needed to purchase these parts from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and / or rights. If only one source has the rights or data to manufacture this NSN, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this NSN, AMCs 1 or 2 are valid. For NSNs coded AMSC R, John Deere is the only source with the rights or data to manufacture these parts.

AMSC Z - 8,706 NSNs. This part is a commercial / non-developmental / off-the-shelf item.

Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid. For NSNs coded AMSC Z, John Deere is the only known source and the John Deere part numbers associated with those NSNs are listed on the John Deere CPL. While these items are commercial, these are replacement parts for which John Deere is the active OEM. Thus, in order to ensure configuration control over any higher-level military assembly to include part supersession or obsolescence, it is essential that only the John Deere code and part number item be acquired to the exclusion of other commercially available parts.

*Applies to LTCs - NSNs identified by AMSC H or L have been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase the NSNs from other than the identified source. NSNs identified by an AMSC of H or L on Long-Term Contracts are subject to annual review for possible assignment of a different or permanent AMSC. DLA L&M agrees to maintain a continual review of these NSNs to ensure that there is an annual review is completed at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any NSN determined to be competitively available during the solicitation/evaluation phase will be removed from the acquisition requirement. Any NSN determined after contract award to be competitively available may be deleted from the contract and resolicited.

6. Efforts Taken: The following efforts were taken to ensure that offers are solicited from as many sources as practicable:

A Sources Sought Notice was posted on the SAM.gov website along with the list of NSNs and respective part numbers from 20 January 2021 to 28 January 2021; however, no responses were received as a result of this notice.

The Synopsis and the Solicitation will be posted separately on the SAM.gov website in accordance with FAR 5.102 for a minimum of 30 days prior to the solicitation.

See FAR 2.101 and 3.104 Page 5 of 10

7. Fair & Reasonable Determination: The Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable and will use price analysis for this determination.

There may also be competition between the OEM and their distributors/dealers, or between the various dealers of the John Deere, which could result in competitive pricing as the basis for a fair and reasonable determination. Further, as these requirements will be procured from the John Deere 2021 CPL, which is available to the general public, it is anticipated that the Government will pay a similar or lower price compared to the general public for these NSNs. As these items have been determined commercial and will be solicited in accordance with FAR Part 12, certified cost and pricing data is not required per FAR 15.403-1(b)(3); however, if the proposed prices are unable to be determined fair and reasonable, the Buyer may ask the offeror(s) to submit other than cost and pricing information to support the pricing position.

8. Market Research & Results: Detailed market surveys along with a market research spreadsheet that detailed each NSN were emailed to the two (2) vendors listed below on 13 January 2021. The market survey was broken into seven (7) major sections: General Interest, Long-Term Contracting Specifics, Cost or Pricing Data, Commerciality, Freight on Board (FOB) and Packaging, Delivery, and Other Miscellaneous Questions. The questions within these seven (7) sections related to business size (large or small), business capabilities (manufacturer or dealer), LTC interest, base period and option year preference, production capacity, commerciality, quantity sensitivity, and FOB preferences. The two

(2) market survey responses received are referenced and detailed below. Both vendors have been added to the bidder’s list and will be notified once the solicitation is available on the DLA Internet Bid Board System (DIBBS).

RDO Agriculture Equipment Co. - CAGE 4PNJ5: , Parts Support Center Manager for RDO submitted the market survey to the Buyer on 21 January 2021 with the responses below and further referenced in attachment #2:

RDO is a large business dealer with no parent company, and approximately 2,800 employees.

RDO is independent from the OEM and has access to the products thereof and can set its own prices.

RDO is a dealer for the actual manufacturer of this items and noted the OEM as John Deere which has approximately 75,000 employees.

RDO is interested in pursuing this successor LTC project with DLA for all of these part numbers.

RDO is willing

RDO would not

RDO does

RDO prefers not to deal through dealers/distributors, but rather to deal directly with the Government.

RDO stated it is able to provide Cost or Pricing Data if required but stated these part numbers are Commercial per the definition listed at FAR 2.101(b), as well able to provide commercial sales history, listing in catalogs or brochures, known established price list to commercial marketplace, availability, or announcement to the public.

See FAR 2.101 and 3.104 Page 6 of 10

RDO is able and willing to provide invoices proving that these part numbers have been sold commercially at like prices, for like quantities to verify price reasonableness.

RDO is able to confirm and provide .

RDO stated that

RDO stated a

RDO stated it

RDO stated they are authorized to provide all CAGE codes that are associated with John Deere, including foreign CAGEs, and listed the following CAGEs: 0XWZ3, 02YK8, 11457, IJ955, 1KXW6, 1QME2, 3PSD7, 4KWL7, 4PNJ5, 54UW7, 66545, 75130, 75755, 92836, and 96105.

RDO additionally noted that, “We have made many modifications to contract SPE7LX-17-D-0028 to get it to what it is today. These modifications will have to carry into the next contract for any dealer to be successful.”

When asked to clarify Section VII which stated

West Side Tractor Sales - CAGE 02YK8: Parts Manager for West Side Tractor Sales submitted the market survey to the Buyer on 2 February 2021 with the responses below and further referenced in attachment #3:

West Side confirmed they are self-certified as a small business concern within the System for Award Management (SAM) database for Government contracts with approximately 280 employees.

West Side is independent from the OEM and has reliable access to the products thereof and can set its own prices.

See FAR 2.101 and 3.104 Page 7 of 10

West Side stated that it is a dealer for the actual manufacturer of this items and noted the OEM as John Deere with approximately 70,000 employees.

West Side is interested in pursuing this successor LTC project with DLA for all of these part numbers.

West Side is willin

West Side stated it

West Side prefers not to deal through dealers/distributors, but rather to deal directly with the Government.

West Side stated it is able to provide Cost or Pricing Data if required but also stated these part numbers are Commercial per the definition listed at FAR 2.101(b) and would be able to provide a copy of the applicable John Deere CPL, which was not initially sent, but was eventually received.

West Side is able and willing to provide invoices proving that these part numbers have been sold commercially at like prices, for like quantities to verify price reasonableness.

West Side stated

West Side

West Side identified the following CAGE codes that are associated with John Deere they are authorized to provide: 06021, 08416, 0ECL6, 0ES85, 0MWG9, 0S4XB, 0XWZ3, 10WY1, 1J955, 1KXW6, 1N016, 3PSD7, 66836, 75160, 75755, 80924, 9R569, and 92836.

See FAR 2.101 and 3.104 Page 8 of 10

West Side Tractor further noted that while this will predominantly Customer Direct contract, Commerciality Information Received: DLA L&M currently administers the John Deere CPL, awarded to RDO Equipment though contract, SPE7LX-17-D-0028. The Justification and Approval (J&A) document from this current contract notes that all NSNs from the previous contract SPM7LX- 11-D-9037 were previously determined to be commercial is referenced in attachment #4. Further, as part of the market survey, each vendor has stated these NSNs to be commercial. While John Deere, the OEM does not distribute their CPL directly to DLA, the Buyer received a version of the 2021 John Deere CPL from an authorized dealer, West Side Tractor, which is referenced in attachment #5.

Based on this information, the Contracting Officer has determined these NSNs to be commercial in accordance with subparagraph (1)(ii) of the commercial item definition in FAR 2.101, as these items have been offered for sale, lease, or license to the general public.

To further obtain competition and satisfy FAR 10.001(a)(3), the solicitation will be synopsized and posted to DIBBS and a copy will be furnished to any vendor expressing interest. Also, for NSNs identified by AMSCs of C, D, P, Q, R, and Z, the Solicitation contains Procurement Note L04, Offers for Part Numbered Items, which increases competition by permitting the consideration of alternate offers. If alternate offers or capability statements are provided in response to the synopsis, DLA will consider either the offeror’s statement or proposal for award; or, if specific to one or a few NSNs, DLA will consider whether those NSNs should be removed from the Solicitation to be solicited separately on another project. For NSNs identified by AMSC of B, the solicitation contains Procurement Note L22, Restriction of Alternate Offers for Source Controlled Items, as alternate offers are not permitted.

The Small Business Coordination Record, DD Form 2579, was sent to the DLA Land and Maritime - Office of Small Business Programs (DU) and the Small Business Administration - Procurement Center Representative (SBA-PCR). The DD Form 2579 documented efforts with DU and SBA-PCR to identify additional small business opportunities including additional sources capable of manufacturing these NSNs; however, no additional sources were identified. Lastly, the technical reviews that were completed confirm that the NSNs in this acquisition are sole source to John Deere and that no additional sources were identified.

9. Additional Facts Supporting Other Than Full and Open Competition: Based upon the technical certification on file in DLA Land and Maritime - Value Engineering Proposal, 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.

See FAR 2.101 and 3.104 Page 10 of 10

4. Preceding J&A

5. John Deere 2021 CPL