Redacted JA.pdf
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- Attached to
- SPRAL120R0003 Federal contract opportunity
- Solicitation number
- SPRAL120R0003
About this file
This justification document approved a sole source contract award to an unknown vendor. The Defense Logistics Agency Land and Maritime required 34 torque converters with national stock number 2520-01-472-8956 from the sole manufacturer, Twin Disc Incorporated. Market research including a sources sought notice and survey of Twin Disc did not reveal any other potential suppliers. The agency awarded contract SPRAL120C0013 for an unknown amount on April 23, 2020 to acquire the torque converters on behalf of the Marine Corps.
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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION: SPRAL1-20-R-0003
1 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
SOLICITATION# SPRAL1-20-R-0003 - SOURCE SELECTION INFORMATION (SEE FAR
2.101 & 3.104)
ORIGINAL
ADDENDUM (attach copy of original J & A for add-ons or revisions)
1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.
2. The action being approved is the acquisition of supplies for a Power Supply for the following National Stock Number (NSN) 2520-01-472-8956 for part number (P/N) 67190. The source controlled drawing is 7010161/ CAGE 0MLM6. Other than full and open competition basis per FAR 6.302-1 and 10 U.S.C.
2304 (c) (1) will be utilized since after market research (FAR 10) was conducted and the Marine Corps technical data that was presented indicates the NSN is sole source to TWIN DISC INCORPORATED (hereinafter TWIN), Commercial and Government Entity (CAGE) 61208. TWIN is the only known provider of this item to meet the services’ needs. For more details, see attachment #1- DLR Technical Certification, and attachment #2- PR Trailer.
3. The supplies required to meet the using activity's needs are described as follows:
CLIN BRIEF DESCRIPTION NSN/PN QUANTITY EST. TOTAL
VALUE
AMSC
0001 TORQUE
CONVERTER,
VEHICULAR
2520-01-472-8956 34 EA B
TORQUE CONVERTER, a vehicular item designed to transmit rotary motion from a driving member to a driven member through a reaction member(s) by transfer of the kinetic energy of a fluid. It provides automatic selection of the optimum torque conversion ratio with a return to the 1 to 1 state at the earliest possible moment. May have flywheel features, and facilities for direct drive.
The end item listed in the Table Authorized Material Control Number (TAMCN) is E08467K, NSN 2350-01-458- 7410 ID 09674A. TM8K-097. Description and Function: Assault Amphibian Vehicle, Personnel Carrier (AAVP7A1 RAM/RS) is an armored, amphibious, full-tracked landing vehicle and personnel carrier. The AAV7A1 RAM/RS (Reliability, Availability, and Maintainability/Rebuild to Standard) family of vehicles is the latest version of the assault amphibious vehicle operating with the U.S. Marine Corps and in numerous countries worldwide. The family of vehicles includes the AAVP7A1 RAM/RS Personnel Carrier, the AAVC7A1 RAM/RS Command Variant, and the AAVR7A1 RAM/RS Recovery Vehicle.
Procurement History - available for this NSN. As illustrated below, the most recent purchase was made within the last year by DLA Land and Maritime for the United States Marine Corps (USMC). There are no previous J&As for this item as all previous buys have been under the Simplified Acquisition Threshold (SAT). For more details, see below.
Company
Contract#
NSN
Date
Quantity
Unit Price
Price Reasonableness
Code
TWIN (61208)
SPRAL119P0024
2520-01-472-8956
02/21/2019
1 EA
$18,885.92
BB
TWIN (61208) SPRAL119P0007 2520-01-472-8956 11/06/2018 12 EA $18,885.92 BG
TWIN (61208) SPRA118P0052 2520-01-472-8956 05/23/2018 10 EA $18,885.92 BI
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. Based on the technical
2 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
certification that was provided by LOGCOM, SYSCOM does not own the drawings for this item to allow for full open and competition to exist. Based on SYSCOM’s technical review and certification, this item is to be procured from the sole source manufacturer, TWIN. This is the only company known by the Government to possess the technical data necessary to manufacture this item. As previously stated, the technical certificate from SYSCOM is attached to this document.
5. If restricted to the only source(s) of supply, include source(s) and CAGE code: NSN is sole source to TWIN (61208) per DLR tech data from Albany, GA. Twin is the only manufacturing source specified on the source control drawing and suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources. Although the Government has the drawing, it is source-controlled drawing. Because the Government does not have full rights to the drawing, the drawing cannot be used to provide full and open competition
The use of the authority cited is based on:
(X) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.
The use of the authority cited is based on:
(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.
6. Efforts to ensure that offers are solicited from as many sources as practicable are:
(X) The acquisition was synopsized on February 20, 2020.
( ) Manufacturers of similar products identified in the market research will be solicited.
( ) Dealers of the manufacturer will be solicited.
( ) A synopsis exception cited in FAR 5.202 applies. (Explain)
(X) Other (Explain) – A Sources Sought was conducted on FedBizOpps from December 18, 2019 until December 30, 2019 under solicitation SPRAL120R0003. Solicitation will be posted to DIBBS for 30 days.
7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.
The current requirement is sole source to TWIN and will be solicited for 30 days. The requirement is for a quantity of 34 EA for NSN 2520-01-472-8956 for P/N 67190 for a total estimate of Per FAR 15.403.4, Certified Cost or Pricing data is not required for procurements below the Truth-in-Negotiation Act (TINA) threshold is under $2 million. TWIN’s unit price for the aforementioned P/N is $20,000.00 EA per their market survey. In addition, the buyer will use previous awards SPRAL1-19-P-0024, SPRAL1-19-P-0007, and SPRAL1-18-P-0052 for the price analysis to establish Government targets. The price analysis will utilize a learning curve for the high target price and learning curve for the low target price.
8. Market Research/Efforts to Obtain Competition:
A sources sought was conducted on FedBizOps from December 18, 2019 until December 30, 2019. There were no responses received to the sources sought notice that was published for ten calendar days. A market survey was submitted to TWIN The market survey (consists of approximately 24 general questions).
3 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
The results of the market survey will be discussed in detail under “Type of information requested”. In addition, there was no information available from GSA Advantage, Google, Amazon, or EBay to support commerciality.
Market Survey [10 U.S.C. 2304(f)(3)(D)]:
A market survey was conducted on/during: market surveys were submitted two ways. The first way was via the source sought (December 18, 2019 until December 19, 2019) which included the market survey as an attachment and allowed non-approved sources to submit a Source Approval Request (SAR). The second way market research was conducted via the market survey that was submitted toTWIN on December 18, 2019, which was completed and forwarded via email on January 29, 2020.
Total number of vendors contacted: 1 (one).
Names of vendors contacted and responding: TWIN Techniques used to conduct survey: Email (communication) and written survey format technique. Types of information requested:
Source sought:
A sources sought was posted in FedBizOps on December 18, 2019 with a response day of December 30, 2019. The main purpose of source of sought was to provide an opportunity to other potential sources to manufacture this NSN in order to promote competition. Sources that are not approved for this NSN were required to submit a Source Approval Request (SAR) to DLA Land and Maritime.
Since DLA Land and Maritime does not manage this item, the SAR package would need to be submitted to LOGCOM, who manages the NSN. LOGCOM would then take the SAR information and submit it to SYSCOM since they manage the technical piece of the NSN. While the approval of the SAR would not necessarily occur for this procurement, it could be reviewed for future procurements. For this procurement, there were no SAR packages submitted.
As part of the sources sought, a market survey was included to allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition. The market survey included information about if the item was available in the commercial marketplace, EDI & MIL-STD-129 capable, company sizes, FOB & I/A information, P/N, quantity, delivery and OEM information, etc.
Types of information requested: A market survey was sent to TWIN via email in order to tailor our current acquisition situation under the following NSN – 2520-01-472-8956. Survey consists of approximately 24 general questions. Majority of questions involved check boxes and (yes or no) answers. The market survey included information about if the item was available in the commercial marketplace, if the contractor preferred to do business direct with the Government or via a distributor, if FOB Destination and FOB Origin would be acceptable, if the P/N provided by the Marines was active and procurable and if the price supplied by the Marines was close to the current unit price. It also, included questions concerning delivery, quantity breaks, and inspection and acceptance points and if dealers quoted, and if the contractor is EDI & MIL-STD-129 markings capable.
Summary of information received:
Sources sought:
The sources sought closed without receiving any responses for vendors submitting either SAR or market survey information for this requirement. Therefore, based on the technical certificate from SYSCOM, TWIN is sole source for this NSN.
4 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
Email to TWIN:
On 12/18/2019, DLA Land and Maritime sent a market survey via email to TWIN. from TWIN completed and returned it on 01/29/2020. Information sought on the market survey included business size, quantity sensitivity for this item, if the item is carried in the inventory, if a dealer/distributor network exists, the anticipated delivery for this item, if the item is commercial, which FOB & I/A is acceptable, if the OEM recognized part number, and if the contractor is EDI & MIL-STD-129 markings capable. This procurement is a code and part number (P/N) 67190 buy to TWIN. Per the information obtained thru the market survey, TWIN is a manufacturer and a large business with 873 employees without a parent company.
. They prefer to deal with the Government directly.
They also stated the item is not commercial. Most of the provisions selected by contractor were:
“Yes” or “No” answers. P/N was confirmed, and the contractor provided an
9. Additional facts supporting other than full and open competition are:
(X) Based upon the technical certification on file via the technical certification from SYSCOM 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) TWIN.
11. This item is subject to the following methods of locating additional sources:
( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering
(X) Other: The Marine Corp. does not intend to procure the technical data necessary to foster competition. A source sought was posted in FedBizOps for 10 calendar days without receiving any responses for vendors submitting either SAR or market survey information for this requirement. Per L22 Prescription: 9.306(S-91) Solicitations shall include procurement note L22 when the acquisition is restricted to material manufactured by the sources listed on the source control drawing, as indicated by AMSC B. As this is an AMSC B, L22 will be included in the solicitation. Therefore, the DLAD Procurement Note L04, Offers for Part Numbered Items, and M06 Evaluation of Offers of Alternate Product for Part Numbered Items (SEP 2016) will not be included.
Attachments:
1. DLR Technical Certification.
2. Source Controlled Drawings.
3. PR Trailer
5 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
CONTRACTING OFFICER CERTIFICATION
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 $700,000, this signature serves as the approval.
Contracting Officer Phone Date
Cletus M. Schafrath Typed name of Contracting Officer
614.692.1827 27 Feb 2020
SCHAFRATH.CLETUS.M.
1081024606
Digitally signed by
SCHAFRATH.CLETUS.M.1081024606
Date: 2020.02.27 11:07:19 -05'00'
File details come from the government source that posted it. Updated .