4.1_J&A_SPE7L319R0017_-_reviewed_Redacted_~_0852.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L3-19-R-0017

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 a Clutch Fan, Engine, for Light Tactical Vehicles (FMTV). Approved source for this item are BorgWarner Thermal Systems, Inc. CAGE 51377 part number 1090-09000-01. 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 specified on "Source Control" drawing. The Government will be using other than full and open competition by restricting manufacturing sources to the only one source approved by the engineering support activity to manufacture the item.

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

Identify end item, weapon system, or class of item: FMTV

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 is based on:

Product Specialist confirmed the AMC/AMSC coding of 3/B is correct for this item; on 01/23/19

AMC 3. Acquire, for the second or subsequent time, directly from the 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, BRIEF DESCRIPTION NSN ANNUAL

DEMAND QTY

ESTIMATED ANNUAL

VALUE

AMC /

AMSC

Clutch Fan, Engine 2930-01-399-0852 584 3 / B

ESTIMATES:

3 YEAR (BASE) ESTIMATED VALUE:

5 YEAR (TOTAL) ESTIMATED VALUE:

MAXIMUM CONTRACT VALUE:

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.

A review of the document availibility code reveals that the drawings for this items cannot be made available to the gereral public and manufacturer Borgwarner Thermal Systems Inc. (51377) are uniquely qualified to manufacture this item because they are the only owner of the technical drawings and data at this time.

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

Borgwarner Thermal Systems Inc. (51377) P/N: 1090-09000-01 the only known source for this item.

There are no pending source request with the ESA.

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

The acquisition will be synopsized for 15 days on DIBBS.

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 based on acquisition threshold. 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:

A Sources Sought Notice was posted on FedBizOpps, in accordance with PGI 206.302-1, seeking to identify potential sources of supply for NSN 2930-01-399-0852. The Sources Sought Notice was posted on 1/22/19, with a response date of 1/28/19. No response were received.

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 in accordance with FAR Subpart 12.1 was conducted to determine the commerciality of this item.

DLA Land and Maritime’s product specialist indicated this was not a commercial item. A review of the DLA Product Master indicated that this is not a Commercial-Off-The-Shelf item. The item is only available from one approved source as identified above. However, the approved source only quote through their distributors. Searches on the internet yielded no useful information on the P/N or pricing information.

Procurement history:

Smart Number (PIIN) Source Type

TIC Vendor

CAGE

Code

Vendor Name Quantity Unit Net Price Award Date Incoterms Prc Reas

SPE7L518V1589 B 1S9F5 D W DIESEL, INC. 770.000 EA 231.98000 5/17/2018 1 BB

SPE7L518V0754 B 4F083 Ross Equipment Inc DBA Ross Air 270.000 EA 232.32000 1/25/2018 1 BB SPE7L517V1580 B 4F083 Ross Equipment Inc DBA Ross Air 338.000 EA 232.46000 8/16/2017 1 BG SPE7L517V1003 W 8S377 Fuel Systems, Incorporated 220.000 EA 233.30000 4/24/2017 1 BB SPE7L517V0354 W 8S377 Fuel Systems, Incorporated 322.000 EA 233.51000 1/5/2017 1 BB SPE7L517V0100 B 4F083 Ross Equipment Inc DBA Ross Air 177.000 EA 234.48000 10/31/2016 1 BB SPE7L516V2167 B 4F083 Ross Equipment Inc DBA Ross Air 236.000 EA 234.56000 6/14/2016 1 BB SPE7L116V2059 W 8S377 Fuel Systems, Incorporated 337.000 EA 238.60000 5/4/2016 1 BB SPE7L516V1374 W 8S377 Fuel Systems, Incorporated 145.000 EA 240.50000 2/19/2016 1 BB SPE7L516V0583 B 4F083 Ross Equipment Inc DBA Ross Air 126.000 EA 242.00000 11/25/2015 1 BB SPE7L516V0120 B 4F083 Ross Equipment Inc DBA Ross Air 108.000 EA 242.70000 10/9/2015 1 BB SPE7L515V2142 A 7BGB9 RUSH TRUCK CENTERS OF INDIANA, 173.000 EA 244.40000 9/2/2015 1 BB SPE7L515V1367 B 4F083 Ross Equipment Inc DBA Ross Air 126.000 EA 248.00000 5/19/2015 1 BB SPE7L515M0575 W 1GX03 Linmarr Associates, Inc. 285.000 EA 244.50000 12/9/2014 1 BB

SPE7L514V0387 A 55683 WHEELER BROS., INC. 94.000 EA 239.11000 11/16/2013 1 XG

SPE7L513V0289 B 4F083 Ross Equipment Inc DBA Ross Air 62.000 EA 242.18000 9/26/2013 D XG

SPE7L513V0099 A 55683 WHEELER BROS., INC. 117.000 EA 242.31000 9/5/2013 D XG

SPM7L413V3934 B 4F083 Ross Equipment Inc DBA Ross Air 17.000 EA 256.00000 7/31/2013 D BB SPM7L513V2102 B 4F083 Ross Equipment Inc DBA Ross Air 17.000 EA 258.25000 5/23/2013 D XG

SPM7L513V1912 A 55683 WHEELER BROS., INC. 28.000 EA 261.90000 4/25/2013 D XG

SPM7L513V1887 B 8S377 Fuel Systems, Incorporated 21.000 EA 262.38000 4/22/2013 D XG SPM7L510M2074 B 4F083 Ross Equipment Inc DBA Ross Air 10.000 EA 269.77000 4/23/2010 D BB

SP075004D6A640001 B 55683 WHEELER BROS., INC. 14.000 EA 285.00000 2/29/2004 2 XG

SP075003D5H260006 B 55683 WHEELER BROS., INC. 81.000 EA 278.50000 11/12/2003 2 XG

SP075003D5H260005 B 55683 WHEELER BROS., INC. 89.000 EA 278.50000 11/3/2003 2 XG

SP075003D5H260004 B 55683 WHEELER BROS., INC. 87.000 EA 278.50000 8/30/2003 2 XG

SP075003D5H260003 B 55683 WHEELER BROS., INC. 18.000 EA 302.21000 8/13/2003 2 XG

SP075003D5H260002 B 55683 WHEELER BROS., INC. 25.000 EA 290.36000 8/2/2003 2 XG

SP075003D5H260001 B 55683 WHEELER BROS., INC. 30.000 EA 290.36000 7/14/2003 2 XG

SP075003MT119 A 34623 AM General LLC 11.000 EA 631.87000 5/12/2003 D BG

SP075003VN038 B 55683 WHEELER BROS., INC. 20.000 EA 314.43000 5/10/2003 2 XB

SP075003VK394 B 55683 WHEELER BROS., INC. 20.000 EA 339.48000 4/22/2003 2 XB

SP075003ML296 B 06YZ5 BADGER TRUCK CENTER, INC 1.000 EA 375.00000 4/11/2003 D BG

SP075003M3540 B 06YZ5 BADGER TRUCK CENTER, INC 27.000 EA 343.00000 3/28/2003 2 BB

SP075003ME979 B 06YZ5 BADGER TRUCK CENTER, INC 1.000 EA 343.00000 3/25/2003 D BG

SP075001D97080198 B 06YZ5 BADGER TRUCK CENTER, INC 3.000 EA 359.61000 1/8/2003 D CF SP075001D97080192 B 06YZ5 BADGER TRUCK CENTER, INC 19.000 EA 359.61000 11/20/2002 D CF SP075002M4576 B 8S377 Fuel Systems, Incorporated 36.000 EA 284.15000 4/5/2002 2 BB SP075001VD124 B 8S377 Fuel Systems, Incorporated 19.000 EA 289.74000 6/29/2001 D XB SP075001V2179 A 4P714 WEBER'S WHITE TRUCKS INC 14.000 EA 239.98000 12/11/2000 D XB SP075000V9716 B 4F083 Ross Equipment Inc DBA Ross Air 15.000 EA 228.75000 7/20/2000 2 XX SP075000V2682 B 8S377 Fuel Systems, Incorporated 15.000 EA 224.48000 12/20/1999 D XX SP075099M5174 B 4F083 Ross Equipment Inc DBA Ross Air 17.000 EA 248.50000 6/25/1999 D BB SP075099M6547 B 8S377 Fuel Systems, Incorporated 19.000 EA 258.99000 2/18/1999 D BB SP075099M6016 B 5Z018 AREA DIESEL SERVICE, INC. 13.000 EA 262.07000 10/15/1998 D BB SP075098MA739 A 34623 AM General LLC 1.000 EA 291.32000 3/20/1998 D BI SP077098MLZ27 B 4F083 Ross Equipment Inc DBA Ross Air 1.000 EA 304.00000 2/27/1998 D BB SP075098V0913 B 8S377 Fuel Systems, Incorporated 1.000 EA 310.21000 2/27/1998 D XX SP075098V0638 B 8S377 Fuel Systems, Incorporated 1.000 EA 310.21000 2/2/1998 D XX SP070098MA203 B 8S377 Fuel Systems, Incorporated 1.000 EA 284.62000 11/13/1997 D BB SP070097M9999 B 7Z016 KAMPI COMPONENTS CO., INC. 1.000 EA 292.21000 3/14/1997 D BB

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

A market survey was conducted on/during 1/22/19 – 1/28/19

Total number of vendors contacted: 3.

Names of vendors contacted: D.W Diesel Inc. (1S9F5), Ross Equipment Inc. (4F083), and Fuel Systems Incorported (8S377). The approved source was not conducted due to they don’t have a SAMs or VPH.

Techniques used to conduct survey: Emailed survey form to dealer of the Approved Source and phone call.

Types of information requested: Business size, delivery, commerciality, hazardous material, FOB, Inspection, minimum quantity, available cost and pricing data.

Summary of information received: No market surveys were received but contractor provided information via phone.

Names of vendors and summary of information Received:

D.W Diesel They stated they are interested but did not fill out the market survey; they are a distributor, not a manufacturer. The government Sales rep called on January 22, 2019, stating that they are interested in this and would send the market survey along with the commercial information, which they did not send. The also stated they are interested in providing a proposal

Ross Equipment Did not respond to survey request

Fuel Systems 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 BorgWarner Thermal Systems, Inc. CAGE 51377 part number 1090-09000-01. They are the only approved source for this item.

BorgWarner Thermal Systems, Inc. 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:

D.W Diesel

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.

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.

Tiffani R Harris - Contracting Officer Date

APPROVAL REQUIREMENTS

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

HARRIS.TIFFANI.R.12

55230200

Digitally signed by

HARRIS.TIFFANI.R.1255230200

Date: 2019.03.11 13:23:22 -04'00'