SPE7L118R0026_-_reviewed_Redacted.pdf

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Attached to: Tires - Ground
Solicitation number: SPE7L118R0026
Issued by: Defense Logistics Agency Land and Maritime

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LONG-TERM CONTRACT (LTC) PROJECT CL17255002

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

ORIGINAL

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

2. The action being approved is the acquisition of supplies on an Other than Full and Open competition basis.

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

This project will allow for continued support to the Tire Successor Initiative (TSI), if needed, and to the successor Global Tire Program (GTP). The scope of this solicitation and resulting contract(s) is TSI/GTP Contractor and Government supply support for part-numbered ground-vehicle tires.

This solicitation is being issued under the authority of 10 U.S.C. §2304 (c)(1) and FAR

6.302 -1(a)(2) and contemplates the award of a contract for items of supply that are available from only one or a limited number of responsible sources. The Government will pursue a long-term, Indefinite Quantity Contract (IQC) for Thirteen (13) National Stock Numbers (NSN), with the nomenclature of “Tire, Pneumatic and a Requirements Contract for Twelve (12) NSNs. (See Attachment 1). If an award is made containing both the “All or None per NSN” and the “Requirements Contract” NSNs, a hybrid contract that contains both IQC/Requirement terms and conditions will be awarded.

A contract resulting from this solicitation will provide supply support to the GTP/TSI Contractor pursuant to FAR Part 51, and may provide direct supply support to the Government.

The Federal Stock Group (FSG) code for these NSNs is 26 (Tires and Tubes), which represents the commodity class of the item.

The Acquisition Method Code/Acquisition Method Suffix Code (AMC/AMSC) code for these NSNs is either 3D (1 CLIN), 3B (1 CLIN), 1C (16 CLINs), 2C (2 CLINs) or 3C(5 CLINs).

The proposed action is for the solicitation and award of a three (3) year, Firm Fixed Price (FFP) Long Term Contract (LTC). The contract would consist of three (3) base years, with no options. The estimated contract values are below:

o Annual Demand Value (ADV):

o 3-Year Value (ADV * 3):

o Total Overall Contract Value (Contract maximum for the IQC NSNS of plus the Three-year base value for the Requirement NSNs of o Minimum Contract Value (ADV * 0.01) $

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

10 U.S.C. 2304(c)(1)

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

o (c) The head of an agency may use procedures other than competitive procedures only when— o (1) The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

The Government requires tires that are form, fit and functionally interchangeable with those currently used on the supported vehicles. These tires require engineering source approval by the design control activity in order to maintain the quality of the part.

The tires can only be purchased from the OEM/approved sources-See attachment 2 for approved sources, The approved sources are the only known sources with the data or data rights necessary to manufacture these tires to meet the military customer requirements, and ensure form, fit and function interchange with the tires currently on the supported vehicles.

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

AMC 2: Suitable for competitive acquisition for the first time.

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

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.

AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part.

An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application.

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.

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

A Sources Sought notice, which included a market survey, was posted on FedBizOpps from 09/01/17 through 09/29/17, and was also posted on the GTP web site. During the

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

same time frame, the market survey was e-mailed to 31 suppliers, including known tire manufacturers & dealers, prior awardees for tire contracts, and suppliers who have submitted proposals for previous tire solicitations. The market survey included a listing of all 375 tire NSNs from the GTP solicitation. These 375 NSN are expected to be solicited in smaller groups, by tire program type, on multiple LTCs. Interested parties were asked to return a completed copy of the survey to the Contracting Officer, Kenneth A. Cotton.

This acquisition will be solicited using Federal Acquisition Regulation (FAR) Part 12 procedures. The synopsis will be posted on FedBizOps on or about 05/04/18, and will run for a period of 30 days. The solicitation will be posted concurrently on the internet, via the DLA Internet Bid Board System (DIBBS).

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include a clause in this solicitation that provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements, and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

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

This will be a three (3) year, Firm Fixed Price, long-term, Indefinite Quantity Contract (IQC). The time frame consists of three (3) base years, with no options. Each year of the contract will be priced out.

As this is a commercial solicitation, Certified Cost or Pricing Data is not required.

The price analysis of historical contracts, as well as current and future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast data is provided by the DLA Land and Maritime Pricing Support group, and provides timely, accurate price & cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

7. Market Research/Efforts to Obtain Competition:

Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for the some portion of, or all of, the 25 tire NSNs.

o Researching/gathering information regarding commerciality of the items.

o Vendor size and business status information.

o Delivery estimates.

o Possibility for Economic Price Adjustment of the 2nd and 3rd years of a contract.

o Distributor/dealer involvement.

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

Summary of market research:

o In addition to a copy of the market survey being made available with the Sources

Sought posting on FedBizOps and the GTP web site, the market survey was e-mailed in September, 2017, to the suppliers listed below:

September, 2017, to the suppliers listed below:

Company CAGE Business Size/Status Anthony Balser 5CAZ4 Small Dealer B and S Transport 1BS99 Small Dealer Brackett Aircraft 56833 Small MFG Bridgestone America - GCR Tire 073A9 Large Dealer Bridgestone Americas Tire 22337 Large MFG Camso USA Inc. 0YGF3 Small MFG CAP 360 6PTPO Small Dealer Carlisle Tire and Rubber Co 71496 Large MFG Clark Equipment 1QK63 Large MFG CNH Industrial Amrica LLC 10988 Large MFG Colony Tire Corporation 3JME8 Small Dealer Continental Tire 73808 Large MFG Critical Solutions International 1N5S7 Large MFG Deval 11201 Small MFG Fast Global Solutions, Inc. 5T389 Small MFG Goodyear Tire and Rubber Co. - Air 04NP4 Large MFG Goodyear Tire and Rubber Co.- Ground 04NP3 Large MFG Hankook Tire America Corp. 5FAD7 Large MFG Hutchinson Industries, Inc. 62161 Large MFG Hydraulics International, Inc. 56529 Small MFG Kampi Components 7Z016 Small Dealer Michelin North America 0A1K8 Large MFG Michelin North America 12195 Large MFG Pioneer Industries, Inc. 66200 Small Dealer Pomp's Tire Service 1T1Z4 Large Dealer Sigma Technologies 6VFM4 Small Dealer Southern Tire Mart 3RRT3 Small Dealer Specialty Tires of America, Inc. 66798 Small MFG Titan Tire Corp 08SN2 Large MFG Tug Technologies, Corp. 4TVG2 Large MFG Wheeler Brothers 55683 Small Dealer

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

Supplier responses to the key market survey questions are summarized in the chart below (also included as Attachment 3):

Based upon the information received on the completed market surveys, along with the purchase history of these NSNs from the past 3 years, the following is a listing of the sources showing a probable interest in submitting a proposal in response to the solicitation for Michelin tires:

Company Name CAGE Business Size Business Type B&S Transport 1BS99 Small Disadvantage Dealer Specialty Tires of America 66798 Small Manufacturer Titan Tire Corp 08SN2 Large Manufacturer Michelin North America 12195 Large Manufacturer Goodyear Tire and Rubber 04NP3 Large Manufacturer Pomp’s Tire Service 1T1Z4 Large Dealer Bridgestone Americas Tire 22337 Large Manufacturer Anthony Balser 5CAZ4 Small Dealer Bridgestone Americas Tire Operation 073A9 Large Dealer Colony Tire Corporation 3JME8 Small Dealer Wheeler Brothers 55683 Small Dealer Kampi Components 7Z016 Small Dealer

Information received regarding the commerciality of the item:

o Commerciality was investigated using several different techniques. Items on this solicitation are tires used on various land vehicles. While commercial tires may be manufactured to different specifications, there is no evidence that those

B&S Transport

Bridgestone Americas

CAP 360 Colony Tire Goodyear Air Goodyear Ground

Jamison Trans.

Michelin NA Ground

Pomp's Tire Service

Southern Tire Mart

TDG

Resources

CAGE Number 1BS99 073A9 6PTP0 7W3F5 04NP4 04NP3 04NP3 12195 1T1Z4 3RRT3 548G2

Business Size

Small Disadvantaged Large WOSB Small Large Large

Small Disadvantaged Large Large

Small (NAICS 326211 only)

Service Disabled

Veteran Owned Business Type (MFG or Dealer) Dealer Dealer Dealer Dealer MFG MFG Dealer MFG Dealer Dealer Dealer

Number of employees 8 500 1 480 66,000 66,000 5 20,000 1,800 2,500 5 to 10 If MFG, quote direct to Government or through dealer?

N/A N/A N/A N/A Direct Both N/A No Response N/A N/A N/A

Interested in quoting for 3-Year base contract?

Able to provide Certified Cost & Pricing Data, if applicable?

Percentage of tires sales/commercial vs.

Government?

Where is inventory stocked?

Where are manufacturing facilities located?

What discounts offered to favored commercial customers?

Able to provide traceability documentation?

Completed spreadsheet for tires capable of supplying?

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

specification differences are so substantial as to render the military version unsuitable and unavailable for commercial purposes. The definition of Commercial, as found in FAR Subpart 2.101, states "Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purpose." Clearly, a tire used by the military is "of a type" as a tire used commercially. The difference may simply be the size, or perhaps a more stringent specification, but nevertheless, these NSNs meet the definition of commercial.

In addition to independent research, the Contracting Officer conducted market research analysis I/A/W FAR 12.1 by submitting a market survey to industry (tire manufacturers and distributors). Industry was asked whether each NSN constituted a commercial item, as defined in FAR 2.101. In their market survey responses, all of the vendors indicated that all of the products listed for this proposed solicitation are commercial. The manufacturers make both commercial and non-commercial tires, thus further solidifying the “of a type” application herein. Accordingly, the acquisition specialist is able to conclude that the tires subject to this requirement fall under the FAR commerciality definition “of a type” language, referenced above. Therefore, this acquisition will proceed in accordance with FAR Part 12-Acquisition of Commercial Items procedures.

8. 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.

The NSNs included on this solicitation were reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase.

No additional sources were identified during that review.

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

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

program, and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

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

10. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition, before any subsequent acquisitions or recertification of class determination are made, this solicitation is subject to the following methods of locating additional sources:

Procurement History: For 24 of these NSNs, the Contract History showing in E- Procurement for these items consists only of delivery orders to Science Applications International Corporation (SAIC), awarded against one of the following long-term base contracts: SPE7L1-16-D-0006 or SPE7L1-17-D-0013. (Note: SPE7L1-17-D-0013 was issued for administrative purposes to facilitate continued contract performance, due to system errors with contract SPE7L1-16-D-0006 and contract SPE7L1-14-D-0005, which was issued due to depletion of DO numbers for contract SPM7LX-11-D-0157 (original).

Contract number SPM7LX-11-D-0157 contains original all terms and conditions.

These 24 NSNs were last purchased on one of the following LTCs or IDPOs:

Solicitation Number Contract Number Awardee SPE7L1-16-X-0116 SPE7L1-17-D-5003 Titan Tire (CAGE 08SN2) SPE7LX-17-X-0005 SPE7L1-17-D-5014 B&S Transport, Inc. (CAGE 1BS99) SPE7L1-14-R-0005 SPE7L1-17-D-5011 Pomp’s Tire Service (CAGE 1T1Z4) SPE7L1-14-R-0005 SPE7L1-15-D-0006 Goodyear Tire and Rubber Co. (CAGE 04NP3) SPE7L1-14-R-0005 SPE7L1-15-D-0007 Michelin North America (CAGE 12195) SPE7L1-14-R-0005 SPE7L1-15-D-0008 Pomp's Tire Service (1T1Z4) SPE7L1-14-R-0005 SPE7L1-15-D-0009 Specialty Tires of America (66798)

No past buy history for NSN 2610-01-658-1299.

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

A review of the J&A (See Attachment 4) for solicitation SPE7L1-14-R-0005 reveals that a Request for Information (RFI) ran from 12/16/13 to 01/10/14. Market research had been conducted in 2014 for 52 tire NSNs. At that time, market surveys were sent to 36 manufacturers and dealers. Solicitation SPE7L1-14-R-000 was synopsized on FedBizOps and posted to DIBBS concurrently, running from 05/15/14 to 06/10/14. The solicitation was later amended, to extend the closing date to 06/30/14. This solicitation was generated in support of the TSI award SPM7LX-11-D-0157. As a result of the solicitation, a total of 4 contracts were subsequently awarded, including SPE7L1-15-D-0006,SPE7L1-15-D-0007, SPE7L1-15-D-0008, SPE7L1-15- D-0009.

This solicitation contains the DLAD Procurement Note entitled Offers for Part Numbered Items (L04).

A sources sought notice was run on FedBizOps from 09/01/17 to 09/29/17, and included a market survey.

A market survey was also e-mailed to 31 known tire manufacturers and dealers, in September of 2017.

A synopsis will be posted on FedBizOps for 30 days The solicitation will be posted on the DLA Internet Bid Board System (DIBBS) for 30 days, and will run concurrently with the synopsis.

At this time, the requirement/guidance in DFARS PGI 206.304 has been fulfilled.

Attachments:

1. Listing of NSNs

2. OEM-Approved sources

3. Summary of Market Survey Responses

4. J&A for Solicitation 14-R-0005

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.

Contracting Officer

Kenneth A. Cotton ____ Typed name of Contracting Officer

COTTON.KENNETH.A

.1230151268

Digitally signed by

COTTON.KENNETH.A.1230151268

Date: 2018.05.07 06:58:50 -04'00'

SOLICITATION SPE7L1-18-R-0026

April 23, 2018

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate

Head of the Contracting Activity

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate

(X) $13,500,000 to $93,000,000 Head of the Contracting Activity (HCA) ( ) Over $93,000,000 Senior Procurement Executive (AQ)

HOPSON.LILLI.A.1230

127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.05.07 08:34:03 -04'00'

BROWN.MARK.ALBE

RT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2018.05.14 14:41:36 -04'00'

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O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es

P3 G

O O

A R

R U

C O

N Y, T H

H A

, I N

O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es

P3 G

O O

A R

R U

C O

N Y, T H

H A

, I N

O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es ff ic ia l U se O nl y

So ur ce S el ec tio n

In fo rm at io n

Se e

.1 a nd

Fo r O ff ic ia l U se O nl y

So ur ce S el ec tio n

In fo rm at io n

Se e

.1 a nd

P3 G

O O

A R

R U

C O

N Y, T H

N A

A R

O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es

P3 G

O O

A R

R U

C O

N Y, T H

H A

, I N

O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es

P3 G

O O

A R

R U

C O

N Y, T H

H A

, I N

O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es

N O

A M

A , I

N C.

P3 G

O O

A R

R U

C O

N Y, T H

H A

, I N

O nl y kn ow n so ur ce s w ith th e da ta o r d at a rig ht s ne ce ss ar y to m an uf ac tu re th es e tir es to m ee t t he m ili ta ry c us to m er s’ re qu ire m en t an d en su re fo rm

, f it an d fu nc tio n in te rc ha ng e w ith th e tir es c ur re e su pp or te d ve hi cl es

File details come from the government source that posted it.