Redacted JA.pdf

Solicitation Number SPE7MX-22-R-X058

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

X ORIGINAL

ADDENDUM

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is for the acquisition of supplies on a 100% Small Business Set Aside. The acquisition is for one National Stock Number (NSN) belonging to Federal Supply Class 2590. Solicitation will be issued utilizing FAR 13.5 procedures in accordance with 41 U.S.C.1901.

The Item included on the solicitation is sole sourced to Womack Machine Company (1SV90).

The scope of this project is for one NSN included in the Schedule of Supplies as well as all DLA and DoD managed NSNs for which Womack Machine Supply Company of Houston (1SV90) is the sole approved source of supply. Additional items within this scope may be added later in accordance with the terms of Procurement Note L27 - Addition/Deletion of items.

3. The item required to meet the activity's needs is described below:

Weapon System – 39A, Patriot Missile

NSN 4320015681152 is a hydraulic hand pump used to manually lift the cab of a FMTV (Family of Medium and Light Tactical Vehicle). The image above to the left is the NSN itself, and the image to the right is of a patriot missile mounted to, and launched from, the FMTV.

This DLA Land and Maritime acquisition is for an Indefinite Delivery, Firm Fixed Price type contract for spare parts. Contract length will consist of one 1-year base period with four, 1-year option years. Option years will be exercised at the discretion of the Government. Solicitation will be issued as 100% Small Business Set Aside.

NSN ITEM

Unit of

Issue

Est.

Annual

Demand Quantity

AMC/

AMS

C*

PIC* QCC*

DPAS

Priority Rating

PLT* NAICS* Federal Supply Class

Highest Weapon System Code

4320015681152

Pump, Hydraulic Manual

EA 275 3D 2 DAA DOC9 133 336996 Power and Hand Pumps 39A, Missile, Patriot

ESTIMATED ONE YEAR BASE VALUE:

*Estimated Base Value represents the first year (Base Period) of the contract. The estimated base value is the estimated annual demand quantity (ADQ) for the NSN multiplied by the estimated unit price to establish an estimated Annual Demand Value (ADV).

ESTIMATED TOTAL VALUE (BASE + OPTIONS): $ *

* The Estimated Total Value is calculated by multiplying the total ADV by 5 (number of contract years).

MAXIMUM CONTRACT VALUE:

*Annual demand value multiplied by ten.

4. The statutory authority permitting other than full and open competition is:

(X) 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. As of 11/16/2022, the Approved Materials and Parts List (AMPL) Attachment 1, lists Womack (1SV90) and their material number as the only approved source of supply. Acquisition is restricted to the following source of supply for the item:

Womack Machine Supply Company of Houston (1SV90) P/N HP16-2103-0-N

On 11/15/2022, , Product Specialist, advised that the Womack (1SV90) owns the intellectual property rights and maintains the drawing for the Womack (1SV90) P/N HP16-2103-0-N. On 5/20/2022, Doug Sanders, Product Specialist, certified the technical information is complete and accurate. All means to obtain a technical data package adequate for manufacture of the items has been exhausted. Attachment 2, Technical Certification.

The use of the authority cited is based on:

- AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

An AMC of “3” applies to CLIN 0001.

(The following is the AMSC description. The full text is available in DFARS PGI 217.7506 Part 2).

AMSC D. (Applies to CLIN 0001) 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.

The Government has retained the right to approve manufacturing sources for this item due to its weapon systems criticality. For the item with an AMSC of D, Womack Machine Supply Company of Houston (1SV90), is the only source that is approved. The identified approved source retains the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government.

For NSN 4320015681152 – Pumping Unit, Hydraulic, Manual, the item is used on the Weapon System XEA, Family of Medium and Light Tactical Vehicles (FMTV). The highest weapon system for NSN 4320015681152 is 39A – Missile, Patriot. NSN 4320015681152 is a hydraulic hand pump used to manually lift the cab of a FMTV vehicle in the event DC power is not available on the vehicle. Under normal operations, the warfighter lifts and lowers the cab via hydraulic power available from a small DC driven hydraulic power unit, but the hydraulic hand pump can be used to lift and lower the cab if power is not available. The item provided by Womack Machine Supply Company of Houston (1SV90) meets the technical and quality requirements identified by the military services.

The military services have only approved the part number provided by Womack Machine Supply Company of Houston (1SV90), P/N HP16-2103-0-N. Womack Machine Supply Company of Houston (1SV90) possesses the complete technical data for the item. Womack Machine Supply Company of Houston (1SV90) is the only source uniquely qualified to manufacture this item; therefore, this acquisition will be solicited with other than full and open competition under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302.

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

(X) The acquisition will be synopsized on www.SAM.gov on or about 12/1/22.

(X) Dealers of the manufacturer will be solicited.

(X) Solicitation will be posted on DLA Internet Bid Board System (DIBBS)

(X) Sources Sought Notice (which is a means to solicit from as many sources as possible) is further discussed in paragraph 8.

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

Prices will be determined fair and reasonable through price analysis based upon the application of the Producers’ Price Index (PPI) to the past acquisitions. Should more than one offer be received, proposed prices will be compared among all offers to determine if price competition exists. Also, since the item is commercially available, buyer will compare proposed prices to commercial prices. Contract is firm-fixed price with a contract length of one 1-year base period and four 1-year options that will be exercised at the Government’s discretion. A price analysis for future contract years will be conducted based on the Global Insights Producer Price Index (PPI) forecasts. Since the items are commercial, certified cost and pricing data is not required per FAR 15.403-1(b)(3). Buyer will use all methods stated to determine all contract years and quantity range prices fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Buyer reviewed the procurement history for potential sources (See Attachment 3,, Procurement History).

Buy history shows the item was most recently provided by Womack Machine Supply Company of Houston (1SV90). Previous buys included one-time buys and delivery orders issued from basic contracts.

The buyer could not locate a previous J&A for the item.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

Buyer conducted market research from 8/19/2022 – 11/15/2022.

Total number of vendors contacted: 9

• Allied Defense Industries (0GD25) – Small Business, Dealer

• Global Logistics Solutions (GLS) (7BUL6) – SDVOSB, Dealer

• Hoosier Industrial (0RCD8) – Small Business, Dealer

• Womack Machine Supply Company of Houston (1SV90) – Small Business, Manufacturer

• TNL Sales (1XLG2) – Woman Owned Small Business, Dealer

• Statz (3WGD1) – SDVOSB, Dealer

• Blue Cord Logistics (7MBP0) – SDVOSB, Dealer

• Lockheed Martin (02769) – Large Business, Manufacturer

• Lynn Electronics (19151) - SDVOSB, Dealer

Techniques used to conduct survey: Market Survey questionnaire, review of buy history, Sources Sought notice, internet search on exact and similar items and email conversations the Quality Assurance Specialist (QAS).

Types of information requested: Information requested included business type, business size, interest in LTC and length of contract, commerciality of the item, approximate price and delivery, inspection and packaging compliance, end-item use, and ability to provide Certified Cost & Price data.

To identify other possible sources, a Sources Sought notices was issued on SAM.gov on 8/26/22, with a response date of 9/2/2022. There were no responses to the Sources Sought notice.

Womack was the only source to respond to the market survey, and provided the following additional information:

-Womack is interested in a long-term contract.

-Womack’s market survey response indicated they are a Small Business Dealer with 204 employees, however their registration on SAM.GOV indicates they are a Small Business, Manufacturer.

-Womack stated in their market survey response that there

-Womack indicated the item is not commercial.

In addition to the Sources Sought and Market Survey Requests, the Contract Specialist conducted the following research to determine the commerciality of the item:

Product Specialist, , confirmed by email dated 9/1/22, the item is commercial, and validated that the material master correctly reflects the item is designated as commercial off-the-shelf (COTS).

The Contracting Specialist also checked the COTS line in the material master for the subject NSN and confirmed the COTS indicator line is populated with “Yes” (Attachment 4, COTS Screen print).

Referred to the Defense Contract Management Agency (DCMA) Commercial Item Group (CIG) database to see if commercial determination and/or other commercial recommendation was submitted to other DCMA offices and buying command engineers/SMEs for review. The subject NSN was not previously submitted for review.

The General Service Administration’s (GSA) online shopping system, GSA Advantage, was reviewed and it was confirmed that the subject NSN was not available through that service.

Based on the results of the research conducted, Contracting Specialist determined that the subject item is commercial as defined in FAR 2.101, Definitions – Commercial Items – Paragraph 1(i).

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

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.

Additionally forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

10. A listing of sources, if any, indicating an interest in the acquisition:

• Womack Machine Supply Company of Houston (1SV90)

11. The following actions are being taken to identify additional sources: The Government will continue to conduct market research, to see if changes occurred in the marketplace that would enable future actions for these items to be competitive. The Government will also include in the solicitation DLA Procurement Notes L04 Offers for Part Numbered Items and DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items. Should alternate offers be received, sources will be encouraged to submit a source approval request (SAR) package that will be referred to the engineering activity for consideration of future procurements.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Tracy L Holmes Contracting Officer Date

APPROVAL REQUIREMENTS

[X] Up to $750,000 Contracting Officer

Attachments:

1. AMPL

2. Technical Certification

3. Procurement History

4. COTS Screen print

HOLMES.TRACY

.L.1251897499

Digitally signed by

HOLMES.TRACY.L.1251897499

Date: 2022.12.05 11:44:40 -05'00'