Redacted--JA Signed-Alternate COMPAD.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L423RX001

Controlled by: DLA Land and Maritime Controlled by: [IPV Contracting Support Branch (FLSCB)]

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC: [michele.beasley@dla.mil]

DLA Land & Maritime Justification for Other Than Full & Open Competition (December 2021)

CUI

[ X ] 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 on other than a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN ADQ ANNUAL DEMAND

VALUE

AMSC

PISTON, INTERNAL,

COMBUSTION ENGINE

2815-01-522-4828 38 3D

*If too numerous, attach list of NSNs and AMSC codes

Identify end item, weapon system, or class of item: Colt Pielstick Diesel Engine.

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTION):

MAXIMUM CONTRACT VALUE:

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L423RX001

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

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

[ ] 10 U.S.C. (a)(2) - Urgency.

Brief narrative supporting the situation and weapon system:

The Colt-Pielstick PC2.6B is a development of the Colt-Pielstick PC2.6 medium-speed engine. While retaining the same main characteristics, the power rating has increased from 615 kW/cyl to 750 kW/cyl. The ‘B’ engine operates at 600 rpm, with a lower fuel consumption and with the patented MPC (Modular Pulse Converter) supercharging system._____________________________________________________________________________________

[ ] 10 U.S.C. 3204(a) - _____________________________________________________________.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

_____ FAIRBANKS MORSE, LLC 7PZX0_____________

The use of the authority cited below:

[ X ] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[ X ] AMSC D. 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.

Available from only one or a limited number of sources. At this time, there is one approved manufacturing source:

FAIRBANKS MORSE, LLC CAGE (7PZX0) P/N PM65838. Fairbanks Morse is a Large Business concern.

The sources listed in the table below, confirmed by the DLA Land and Maritime Quality Product Specialist on June 14, 2022 ) that FAIRBANKS MORSE, LLC (7PZX0) is the only source that possesses the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function and quality. The Government either has no data, inadequate data, and/or lacks rights to the data needed to acquire this part from additional manufacturing sources. At this time, only the source listed possesses the complete data and rights to the data.

Source:

NSN Description Approved

CAGE

Company Name Approved Part

Number

2815-01-522-4828

PISTON, INTERNAL,

COMBUSTINE

ENGINE

7PZX0

FAIRBANKS MORSE,

LLC PM65838

SOLICITATION SPE7L423RX001

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

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

[ X ] The acquisition will be synopsized on FBO at least one day prior to the solicitations opening date. That synopsis will be available on Fed Biz Ops while the solicitation is open on the DLA Internet Bid Board System(DIBBS), that synopsis will instruct bidders where to find the solicitation which will be open an additional 14 days. __________.

[ x ] Dealers of the manufacturer will be solicited.

[ x ] Other. (Explain)___Sources Sought notice discussed further under Paragraph. 8.___________________ .

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable: A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. Cost or pricing data in accordance with FAR 15.403-4 will not be requested if the offeror’s proposal exceeds the threshold for obtaining cost data because this procurement is being conducted under FAR 13.5 procedures. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable

8. Market Research/Efforts to Obtain Competition:

Market Research/Efforts to Obtain Competition included: Researching items on-line via the internet for availability, commerciality, and features. Pulling previous procurements of items and determining previous acquisition methods. Determining vendor interest in long-term contracting for the items. Researching/gathering info regarding commerciality of the items. Vendor size and business status information. Delivery. Base year and option years; optimal lengths, and possible price/cost advantages.

Market research consisted of review of past procurements, market surveys received from interested parties, and internet sources. Market Research efforts show that this item has been purchased multiple times by DLA and has a relatively stable pricing history. Market research began with the analysis of prior procurements and their respective acquisition strategies. Market research was conducted to determine the commerciality of this item.

Market Research has indicated this is commercial. The item is only available from the one approved source as identified above. Multiple dealers have supplied this NSN in the past. After complete review of the market research, previous procurements, and indication by the OEM, the contracting officer has made the determination that the NSN on this solicitation is commercial and will be solicited under FAR Part 13.5.

Procurement History:

SOLICITATION SPE7L423RX001

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

A Sources Sought Notice was posted to SAM.gov on June 13, 2022 for this specific item. The posting remained open until June 20, 2022. Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the acquisition specialist listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return. Potential sources would be added to the solicitation mailing list. There were no interested parties as a result of this sources sought notice.

Market Survey [10 U.S.C. (e)(2)(D)]:

[ x ] A market survey was conducted on/during __June 13, 2022______.

Total number of vendors contacted: ___5 dealers and the manufacturer.

Names of vendors contacted and summary of information received:

o Names of Vendors Contacted:

• Chand, LLC (0D5X4) Large business dealer. Market research was also conducted with data from the previous large purchase SPE7L322C0030 / SPE7L322R0017.

Previuos markey survey response from Chand LLC on SPE7L322C0030 / SPE7L322R0017 stated item is a commercial item, however, Chand is unable to provide commercial sales invoices, listing in catalogs or brochures or no known established price list to commercial market place. In addition, Chand also provided a Commercial Item Justification memo from Fairbanks Morse indicating their products and services are commercial items per the definition in FAR 2.101.

• JGils (1N8T8) Small business dealer. Previous market survey response from JGils LLC on SPE7L322C0030 / SPE7L322R0017 stated item is not commercial and also advised they are unable to provide commercial sales invoices, listing in catalogs or brochures or no known established price list to commercial market place.

• Dela Technology Corp. (2U435) WOSB dealer. In an email response on June 14th, Dela provided the following “Unfortunately, this manufacturer, FAIRBANKS MORSE, will no longer allow for my company to bid on IQC’s. You will need to contact their distributor CHAND LLC”

• JGB Enterprises, Inc. (61125) small business dealer. In an email response on June 13th, JGB provided the following “Unfortunately this manufacturer has one distributor and they decided at the beginning of this year to quote everything direct. Therefore we can no longer support items from this manufacturer”

• Pioneer Industries (66200) small business dealer

• Fairbanks-Morse (7PZX0) large business manufacturer

Techniques used to conduct survey: __E-mailed correspondence and spreadsheet. ______________________.

Types of information requested: ___Business size, manufacturer or dealer, price breaks, commerciality, estimated delivery and quantity sensitivity. ________________________.

SOLICITATION SPE7L423RX001

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

Information received regarding the commerciality of the item(s):

Commerciality:

The Product Specialist stated that this item is Commercial Of A Type.

When asked why no other commercial item can meet these essential requirements, the Product Specialist stated the following: Its made and designed by the OEM of the engine.

When asked when the last time the technical team researched availability of alternative options, the Product Specialist responded with 2015.

In regards to Brand Name or Equal specification based on salient characteristics readily available in the commercial marketplace, the Product Specialist stated the following: No other manufacturer has the technical data to manufacture the item.

In regards to how the NSN is different from other commercially available items e.g. unique characteristics to ensure the safe, dependable, and effective operation of military equipment (reliability/durability), weapon system coded, critical item of supply, the Product Specialist stated the following: Material is critical application used on the LPD-17 Amphibious Transport Dock.

Due to information obtained from market surveys (JGB Enterprises and Dela Technology responses and market survey responses from previous procurement) and product specialist responses the contracting officer hereby determines this item to be “commercial”.

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

[ X ] Based upon the attached technical certification, 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.

[ x ] Other: (Explain)___ During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and DLA Land and Maritime Product Specialist for review; no additional sources were identified during those reviews._______.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) None.

11. The following actions are being taken to identify additional sources:

[ x ] The Solicitation contains DLA Procurement Notes L04 Offers for Part Numbered Items and M06 Evaluation of Offers for Part Numbered Items

SOLICITATION SPE7L423RX001

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

12. The J&A from previous procurement SPE7L322R0017 was found in Records Management and is attached to this document (Att1).

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[ x ] $750,000 to $15,000,000 Competition Advocate

Attachment(s):

#1 – Previous J&A #2 – Tech Referral Commercial Inquiry #3 – Tech Certification.

COTTONGIM.KEL

LY.E.1230104111

Digitally signed by

COTTONGIM.KELLY.E.1230104

Date: 2022.11.02 10:40:04 -04'00'

DAPO.DOUGLA

S.A.1230220014

Digitally signed by

DAPO.DOUGLAS.A.1230220014

Date: 2022.11.16 14:33:23 -05'00'

SOLICITATION SPE7L322R0017

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

[X] 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 on other than a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN QUANTITY EST. VALUE AMSC

PISTON,INTERNAL COM 2815-01-522-4828 42 D

Estimated Base Value:

Estimated Max Value:

Identify end item, weapon system, or class of item: This part is a PISTON,INTERNAL COM used on

LPD-17 Class Amphibious Assault Transport Dock manufactured by FAIRBANKS MORSE, LLC

(7PZX0) P/N PM65838.

IAW DFARS PGI 6.3, the previous J&A must be attached. (See Attachment 1)

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. If restricted to the only source(s) of supply, include source(s) and CAGE code:

FAIRBANKS MORSE, LLC (7PZX0) P/N PM65838

The use of the authority cited below:

[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 D. 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.

On 03/17/2022 the buyer received confirmation from the product specialist that the AMC/AMSC of 3/D is accurate (See attachment 1). The approved source is FAIRBANKS MORSE, LLC (7PZX0) P/N PM65838. Per the Product Specialist, this is the only known source that possesses the technical data for the manufacturing of this item, thus, demonstrating that FAIRBANKS MORSE, LLC (7PZX0) has the unique design capability, engineering skills, and manufacturing knowledge for this NSN. The Engineering Support Activity (ESA) has declared FAIRBANKS MORSE, LLC (7PZX0) P/N PM65838 is the only acceptable part. Any other commercial, or non-commercial, offerings would be required to submit a Source Approval Request (SAR) to the ESA for approval.

Product Specialist Rob Wilson certified the above information is correct as of 04/07/2022 (See Attachment 2).

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

The acquisition will be synopsized on or about 04/04/2022 and will be on the DLA Internet Bid Board

(DIBBS).

Dealers of the manufacturers will be solicited.

SOLICITATION SPE7L322R0017

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

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

The most recent buy for this NSN was on 06/26/2020. PO# SPE7L720P3899 was awarded to JGILS, LLC (1N8T8) for 33 EA at each. This price was determined Fair and Reasonable based on comparison to purchase history and was coded BG.

There have been 15 purchases for this NSN since 2013. Previous purchase quantities have ranged from 1 to 41 each. Prices have ranged from The weighted average of all prices was

This is a DLA direct item. The estimated price of the solicited maximum quantity of 42 each with a 100% option may exceed . If the contract value exceeds , a subcontracting plan will be required.

In order to determine the cost as fair and reasonable, Price Analysis will be calculated using past procurement history, a Learning Curve and PPI. If additional analysis is needed for the fair and reasonable determination, support will be sought from the Pricing Office.

Negotiation procedures may be used pending price analysis results and competition.

Length of contract: A firm-fixed price contract will be issued.

Quantity: 42 each with a 100% option

8. Market Research/Efforts to Obtain Competition:

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

Market surveys were sent to JGILS, LLC (1N8T8), HOWCO DISTRIBUTING CO. (5E074), PIONEER INDUSTRIES, INC. (66200) and CHAND, L.L.C. (0D5X4) on 03/16/2022 with a respond by date of 03/23/2022.

A Sources Sought was posted on 03/16/2022 and closed on 3/22/2022. No responses to the Sources Sought were received.

Total number of vendors contacted: 4 Names of vendors contacted and responding: 3

Techniques used to conduct survey:

The market survey was sent via email..

Types of information requested:

Information requested included: business size, commerciality, preference for submissions of offers through distributors/dealers or directly to the government, source of supply, catalogue price, is the item in inventory, willingness to quote the item, economical production quantities, their price break ranges, delivery, and if they are registered in SAM.

Summary of information received:

HOWCO DISTRIBUTING CO. (5E074) responded 03/16/2022 that they no longer sell Fairbanks Morse. JGILS, LLC (1N8T8) responded 3/21/2022. They indicated they intended to quote the requirement; they are a small business; the item is not commercial; and they could not meet the government’s last price paid. CHAND, L.L.C.

(0D5X4) responded 3/22/2022. They indicated they intended to quote the requirement; they are a large business;

the item is commercial; and they could not meet the government’s last price paid.

Information received regarding the commerciality of the item(s):

The COTS field in SRM is blank. Market research did not yield any readily available published catalog price lists, schedules or other form of commercial pricing that are regularly maintained and updated by a manufacturer or vendor that are available to the general public for inspection nor is there evidence of sale prices at which sales

SOLICITATION SPE7L322R0017

DLA Land & Maritime Justification for Other Than Full & Open Competition

(FEB 2017)

CUI

were made to a significant number of buyers constituting the general public. Therefore, the Contracting Officer determines this item to be non-commercial and the solicitation shall be issued pursuant to FAR Part 15 procedures.

Synopsis will state that based upon market research, the Government is not using the policies contained in FAR Part 12. However, interested persons may identify to the contracting officer their interest and capability to satisfy the Government’s requirement with a commercial item within 15 days of this notice.

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) JGILS, LLC (1N8T8) and CHAND, L.L.C. (0D5X4)

11. The following actions are being taken to identify additional sources:

This solicitation will contain Conditions for Evaluation and Acceptance of Offers for Part Numbered Items, Procurement note L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Monica Whiting, Contracting Officer Date

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[ X] $750,000 to $15,000,000 Competition Advocate

ATTACHMENT:

Attachment 1: Previous J&As Attachment 2: Product Specialist Certification

WHITING.MONICA.L.

1378381815

Digitally signed by

WHITING.MONICA.L.1378381815

Date: 2022.04.12 08:08:10 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.04.22 07:47:58 -04'00'

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