SPE7L019R0018_-_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L019R0018

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 proposed action is for the acquisition of an Actuator, Mechanical for XEA Family of Medium and Light Tactical Vehicles (FMTV). Approved sources for this item are Nutzfahrzeuge Oesterreich cage code 2172N part number 115200340051 and Kiekert AG cage code C1583 part number 1488A. This part is suitable for competitive acquisition for the second or subsequent time. Due to the criticality of the item, procurement is restricted to source(s) specified on "Source Control" drawing. The Government will be using other than full and open competition by restricting manufacturing sources to the only two sources 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

Actuator, Mechanical 3040-01-375-7321 2007 1/B

ESTIMATES:

3 YEAR (BASE) ESTIMATED VALUE:

5 YEAR (TOTAL) ESTIMATED VALUE:

MAXIMUM CONTRACT VALUE:

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

XEA— Family of Medium and Light Tactical Vehicles (FMTV) 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:

a. 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 1: Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

ii. 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.

iii. Review of technical information: 3040-01-375-7321. This project has been technically scrubbed prior to release by the product specialist of record. The scrub was completed on 12/14/2018. Item has an AMC/AMSC of 1/B. The approved sources are the only known sources capable of making this item. The Government does not have the drawings; the approved sources are the only known sources to possess the required drawings required to make this item. The steel is one of the essential features of this item.

The end item is a chassis (base frame) truck. The steel is important for the framework of this item.

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

Nutzfahrzeuge Oesterreich cage code 2172N part number 115200340051 and Kiekert AG cage code C1583 part number 1488A.

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 the 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. Cost or Pricing data in accordance with FAR 15.403-1(c)(1)(ii) will not be required. Subsection (c)(1) of FAR 15.403-1 references there was a reasonable expectation, based on market research or other assessment, that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation’s expressed requirement. 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 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. The item is only available from two approved sources as identified above.

However, the approved sources only quote through their distributors. Market research in accordance with FAR Subpart 12.1 was conducted to determine the commerciality of this item. The ESA stated this was a commercial item via internal notes from 2015. Therefore, the buyer reached out to the product specialist asking them for additional information to support this items commerciality. 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 was unable provide substantial documentation to support the ESA’s statement regarding this item being commercial. A review of the DLA Product Master indicated that this is not a Commercial- Off-The-Shelf item. Searches on the internet yielded no useful information on the P/N or pricing information.

Likewise, the contractor indicated this was not commercial and did not provide any information to support this items commerciality. 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

SPE7L318P7170 B 6NRE7 JML Logistics, LLC 770.000 EA 110.03000 USD 1 6/5/2018 1 BG 8505561312 SPE7L318P6069P00001 B 6NRE7 JML Logistics, LLC 700.000 EA 110.03000 USD 1 4/24/2018 1 BB 8505425559 SPE7L318P5222P00001 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 2,600.000 EA 115.48000 USD 1 4/4/2018 1 BG 8505336821 SPE7L018V4202P00001 B 6NRE7 JML Logistics, LLC 850.000 EA 110.03000 USD 1 3/15/2018 1 BJ 8505303526 SPE7L318P3556 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 150.000 EA 121.56000 USD 1 2/3/2018 1 BG 8505163962 SPE7L318P2206 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 503.000 EA 117.37000 USD 1 12/12/2017 1 BJ 8505019246 SPE7L317P9070P00001 A K 076M6 BAE SYSTEMS LAND ARMAMENTS L. 494.000 EA 53.73000 USD 1 9/25/2017 1 BB 8504783791 SPE7L317P7579 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 150.000 EA 53.27000 USD 1 8/4/2017 1 BB 8504629826 SPE7L317P6672 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 300.000 EA 50.62000 USD 1 6/29/2017 1 BG 8504534339 SPE7L317V6307 B 19151 Lynn Electronics Corp. 871.000 EA 61.99000 USD 1 4/21/2017 1 XG 8504331946 SPE7L316M6669 B 19151 Lynn Electronics Corp. 420.000 EA 58.40000 USD 1 6/28/2016 1 BG 8503382318 SPE7L316M1853 B 19151 Lynn Electronics Corp. 531.000 EA 58.40000 USD 1 12/10/2015 1 BI 8502755909 SPE7L315M7196 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 372.000 EA 45.21000 USD 1 7/14/2015 1 BA 8502294606 SPE7L315M6285 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 625.000 EA 46.21000 USD 1 6/3/2015 1 BG 8502173810 SPE7L315M0621 B 19151 Lynn Electronics Corp. 669.000 EA 88.90000 USD 1 10/23/2014 1 BI 8501487039 SPE7L314M7054 A 076M6 BAE SYSTEMS LAND ARMAMENTS L. 347.000 EA 46.90000 USD 1 6/10/2014 1 BI 8501042076 SPM7MC12M6379P0000A 0FW39 BAE Systems Tactical Vehicle 500.000 EA 31.58000 USD 1 7/23/2012 D BG 4521895461 X SPM7MC11M0803 A 4X136 Applied Industrial Technologies, 1,624.000 EA 28.00000 USD 1 11/15/2010 2 BI 4516146115 X SPM7MC10M4640 A 4X136 Applied Industrial Technologies, 2,176.000 EA 25.77000 USD 1 5/20/2010 2 BA 4514383906 X

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: 3 o Names of Vendors Contacted: Augusta Engine Parts. (Cage 1JQ26), BAE Systems (Cage 076M6), and Lynn Electronics (Cage 19151).

o Names of vendors and summary of information Received:

Augusta Engine Parts The survey request was sent to A Representative, for Augusta Engine Parts, Inc. The vendor indicated they are an independent dealer/distributor and a Veteran-Owned Small Business. 2) The vendor is interested in pursuing a long-term contract for this NSN. 3) They are a small business capable of performing on any subsequent contract.

8) Augusta stated this item was not commercial by checking no on the market survey for the commerciality question.

BAE Systems Received a survey response from , A Representative, for BAE Systems (076M6) on 12 January 2019. The response stated, . They further stated this was not a NSN they would bid on a IDIQ type contract.

Lynn Electronics Did not respond to survey request.

Buyer researched SAP and the material master and coordinated with the product specialist. They confirmed this item is not commercial.

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 Nutzfahrzeuge Oesterreich cage code 2172N and Kiekert AG cage code C1583 part number 1488A.and they are the only approved source for this item.

Nutzfahrzeuge Oesterreich and Kiekert AG are the only known sources 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:

Augusta Engine Parts

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 DLAD Proc Note L22 Restriction of Alternate Offers for Source Controlled Items.

Any offer received for a product other than the approved source, will be directed/encouraged to contact the cognizant design activity in accordance with DLAD Proc Note L22.

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.TIFFAN

I.R.1255230200

Digitally signed by

HARRIS.TIFFANI.R.1255230200

Date: 2019.03.13 12:44:52 -04'00'

SHEARER.MARY.E.1250

702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.13 14:07:27 -04'00'