J&A_for_SPE7L019R0017.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L019R0017

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.

The action being approved is the acquisition of an Air Spring,Vehicular for an 39A—Patriot Missile. The approved source for this item is Holland USA, Cage (74410) part number 90557344. This part acquires an item, for the second or subsequent time, directly from the manufacturer. Technical data on this item cannot be obtained economically. An alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant Government engineering activity. The Government will be using other than full and open competition by restricting manufacturing sources to the only source approved by the engineering support activity to manufacture the item.

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

BRIEF DESCRIPTION NSN ANNUAL

DEMAND QTY

ESTIMATED

ANNUAL

VALUE

AMC /

AMSC

Air Spring, Vehicular 2510-01-558-4138 1150 3/D

ESTIMATES:

3 YEAR (BASE) ESTIMATED VALUE:

5 YEAR (TOTAL) ESTIMATED VALUE:

MAXIMUM CONTRACT VALUE:

End item(s) weapon system(s) or class of items:

39A—Patriot Missile This is not a critical application item FAR 6.303-2(b)(5)

Estimated value and contract duration:

The proposed action is for the solicitation and award of a 5 year, Firm-Fixed-Price, Indefinite Quantity Contract (IQC) using FAR Subpart 15 – Contracting by Negotiation. The 5 year period is inclusive of one 3 year base period and two separately priced 1 year option periods. The 3 year base period estimated value is and the base period plus two option years’ estimated value is . The maximum value for each NSN was determined by multiplying the ADQ, the Estimated Unit Price, and the number of contract years (5). The maximum contract value after these calculations is the same as the 5 year total

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

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

The use of the authority cited in other than 10. U.S.C. 2304(c)(1) above:

i. AMC 3: Acquiring this item, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

ii. 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..

iii. Review of technical information: 2510-01-558-4138. This project has been technically scrubbed prior to release by the product specialist of record. This scrub was completed on 11/15/18. Item has an AMC/AMSC of 3/D. The approved source is the only known source capable of making this item. The Government does not have the drawings; the approved source is the only source known to possess the required drawings required to make this item.

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

Holland USA, Cage (74410) part number 90557344

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

The acquisition will be synopsized at least 15 days prior to issuance of solicitation.

Dealers of the manufacturer will be solicited.

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 Price Index (PPI), and learning curve analysis. Certified Cost or Pricing data in accordance with FAR 15.403-1(c)(1)(ii) will not be required. This acquisition is below the $2 million dollar threshold required for obtaining Certified Cost or Pricing Data.

Offerors may be requested to submit information other than cost or pricing data for determining price reasonableness. Based on the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable.

8. Market research/efforts to obtain competition:

Market research consisted of a 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 in accordance with FAR Subpart

12.1 was conducted to determine the commerciality of this item. A review of the DLA Product Master indicated this is not a Commercial-Off-The-Shelf item. Searches on the internet yielded no useful information on the P/N or pricing information. The product specialist was asked if this item was commercial or commercial of a type, what are the truly essential characteristics of the NSN item, how are these characteristics essential to the end user, why can no other commercial item meet these essential requirements, how the required NSN item 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, and for any differences between the required NSN item and its commercial equivalent. The product specialist responded back on December 20, 2018 stating this item was commercial. They also stated they spoke with the OEM Holland USA and Holland stated this item was commercial. The product specialist also indicated on December 20, 2018 that they had limited information regarding this items commerciality and was unable to answer any of the commerciality questions mentioned above to help support this items commerciality. Likewise, The product specialist was unable provide any substantial documentation or statements to support Holland’s assertion regarding this item being commercial. The buyer contacted Holland with a market survey containing questions regarding commerciality. They did not respond. Buyer also searched Holland USA’s website and there was no indication that this part is sold to the general public only to the Government. Therefore, the KO made the decision to procure this item using FAR Part 15 procedures.

Procurement history:

Smart Number (PIIN) Source Type

TIC Vendor

CAGE

Code

Vendor Name Quantity Unit Net Price Curr Per Award Date Incoterms Prc Reas SAP PO No. Wgt Avg

SPE7L319P3578 B 7S443 Grand Industries, Inc. 150.000 EA 209.27000 USD 1 2/13/2019 1 BB 8506291707 SPE7L319P3051 R 3WGD1 STATZ Corporation 280.000 EA 212.97000 USD 1 1/28/2019 1 BB 8506235953 SPE7L319P1462 B 7S443 Grand Industries, Inc. 300.000 EA 192.87000 USD 1 11/23/2018 1 BB 8506080170 SPE7L318P9899 A 55683 WHEELER BROS., INC. 50.000 EA 195.33000 USD 1 9/10/2018 1 BB 8505860009 X SPE7L318P9252 B 7S443 Grand Industries, Inc. 60.000 EA 192.87000 USD 1 8/15/2018 1 BB 8505780016 X SPE7L318V9266 B 7S443 Grand Industries, Inc. 112.000 EA 187.07000 USD 1 7/16/2018 1 BB 8505686319 X SPE7L318P6768 B 7S443 Grand Industries, Inc. 408.000 EA 178.24000 USD 1 5/17/2018 1 BB 8505511856 SPE7M118F48KVP0000 A K 02769 LOCKHEED MARTIN CORPORATION D 1.000 EA 214.28000 USD 1 4/4/2018 D BF 8505366608 SPE7M118F48BFP00001A K 02769 LOCKHEED MARTIN CORPORATION D 3.000 EA 214.28000 USD 1 4/3/2018 D BF 8505365949 SPE7M118F47GJP00001A K 02769 LOCKHEED MARTIN CORPORATION D 4.000 EA 214.28000 USD 1 4/2/2018 D BF 8505360987

A sources sought notice was posted on FedBizOpps from 12/06/2018 to 12/14/2018. No responses were received.

Market Survey [10 U.S.C. 2304(f)(3)(D)] was conducted during the December 2018-January 2019 time-period.

o Techniques used to conduct survey: E-mail correspondence and market survey attached to sources sought notice.

o Types of information requested: Business size, manufacturer or dealer, price breaks, commerciality, estimated delivery, and quantity sensitivity o Total number of vendors contacted: 4 o Names of Vendors Contacted: Holland USA, Inc. (Cage 74410) Badger Truck (Cage 06YZ5)

Grand Industries (Cage 7S443), and Wheeler Brothers, Inc. (55683).

o Names of vendors and summary of information Received:

Badger Truck Received a survey response from Representative, for Badger Truck Center (06YZ5) on 28 December 2018. The vendor indicated they are a Small Business Distributor/Dealer/Reseller; 1) The vendor is interested in pursuing a long-term contract for this NSN; 2) They are a small business capable of performing on this contract;

6), This item is commercial per FAR 2.101(b) and the item is Published Catalogs/Price Listed. Un-redacted commercial sales history is not available. The buyer went back to Badger on December 28, 2018 asking for catalog pricing, unredacted invoices and other information demonstrating this item is commercially available to the general public. Badger responded back on 12/31/18 stating this item was commercial but could not provide any unredacted invoices.

Grand Industries Received a survey response from , A Representative, for Grand Industries (7S443) on 07 January 2019. 1)The vendor indicated they are a Small Business Distributor/Dealer/Reseller; 2) The vendor is interested in pursuing a long-term contract for this NSN; 3) They are a small business capable of performing on this contract;

8) Stated this item is not commercial per FAR 2.101(b) and the item is not Published Catalogs/Price Listed.

Holland USA Buyer contacted Holland USA to answer questions regarding this items commerciality. No response was received.

Wheeler Brothers, Inc Responded via e-mail stating they are not quoting on Long Term Contract’s. They further indicated they are having issues with the LTC’s they currently hold due to Government imposed Tariff’s and Vendor’s increasing pricing at higher rates then estimated for the option years.

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

Based on the technical certifications 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 is owned by Holland USA, Inc. (Cage 74410) and they are the only approved source for this item.

Holland USA is the only known source with proven knowledge to manufacture the item to meet the needs of the Government.

Per PGI 206.304 (a)(1), the requirement states that “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.” At this time, the requirement/guidance in PGI 206.304 has been fulfilled. The previous buys were SAT requirements so

J&A was not required.

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

Badger Truck (Cage 06YZ5) and Grand Industries (Cage 7S443).

11. This item is subject to the following methods of locating additional sources:

Solicitation will be posted to DIBBS for a period of 30 days.

The solicitation contains provisions L04 Offers for Part Numbered Items and M06

Evaluation of Offers for Part Numbered Item..

A synopsis will be posted on FedBizOpps at least 15 days prior to issuance of solicitation.

APPROVAL/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.

TIFFANI R. HARRIS – CONTRACTING OFFICER

I have reviewed and approve this justification:

MARY E. SHEARER – COMPETITION ADVOCATE

APPROVAL REQUIREMENTS

[X ] Up to $700,000 Contracting Officer

[X ] $700,000 to $13,500,000 Competition Advocate

[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

HARRIS.TIFFANI.R.1255

230200

Digitally signed by

HARRIS.TIFFANI.R.1255230200

Date: 2019.03.14 18:32:02 -04'00'

SHEARER.MARY.E.1250

702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.15 15:14:45 -04'00'