J&A_redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L518Q0009

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/P/N QUANTITY EST. VALUE AMSC

INJECTOR ASSEMBLY,FUEL 2910-01-515-2975 1,200 3D

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

Subject NSN is described as a an item consisting of springs, O-rings, plungers and miscellaneous internal and external parts that provide atomized fuel at specific pressure(s) to engine combustion chambers.

The Department of the Army and Department of the Navy are the primary customer for this

Fuel Injector Assembly.

ESTIMATED BASE VALUE ___________ _________ ____________

ESTIMATED TOTAL VALUE (BASE + 75% OPTION)

MAXIMUM CONTRACT VALUE

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:

DAIMLER TRUCKS NORTH AMERICA LLC 64678 P/N DDE R5237045

The use of the authority cited below:

[ c ] AMC 3. Acquire, for the second or subsequent time, directly from the actual 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.

Per the Approved Manufacturer Parts List available for this NSN, only DAIMLER TRUCKS NORTH AMERICA

LLC 64678 P/N DDE R5237042GE889 has been identified by the Government as having the complete technical data set to supply this NSN to DLA and the using military service. Product Specialist conducted the last technical review of this item on October 26, 2017. No additional sources beyond those listed in the AMPL were identified and the AMC/AMSC of 3D was verified as correct. Currently, there are no 339's generated to the

ESA for this material. Based on technical review, only the approved source has the technical data to successfully manufacture this item for the Government and using military service. Mr. Wilson advised this is a commercial item.

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

[ x ] The acquisition will be synopsized on or about ___January 17, 2018_____.

[ x ] Request for Quote will be posted on DLA’s Internet Bid Board System (DIBBS) for a period of 10 days to allow any offeror the opportunity to submit a quote for the product of Daimler.

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

Past procurement history will be reviewed, and a PPI price analysis will be performed. Other than cost and pricing data will be requested and analyzed. Additionally, discussions may be held with offerors, if needed, to determine price fair and reasonable.

This is a definite quantity firm fixed price contract for a total quantity of 1,200 each with a 75% option.

Multiple/Split awards will not be considered, as this item is being procured under Simplified Acquisition

Procedures for commercial items.

8. Market Research/Efforts to Obtain Competition:

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

[ x ] A market survey was conducted on/during ___10/16/17 – 10/23/17_______.

Total number of vendors contacted: _____3______________________.

Names of vendors contacted and responding:

CAGE 72582 (MTU AMERICA INC.)

CAGE 0PJT5 (CENTRAL POWER SYSTEMS AND SERVICES, LLC)

CAGE 62860 (PENN DETROIT DIESEL ALLISON, LLC)

Techniques used to conduct survey: email

Types of information requested:

Size of business, type of business, commerciality, price listed/stock inventory status, willingness to offer proposal, delivery schedule, quantity sensitivity, Inspection/Acceptance points, and hazardous materials.

Summary of information received:

CAGE 72582

Then-approved Source CAGE 72582 responded to the Market Survey request on October 18, 2017. from MTU America stated the following:

“This injector that you need information on for this survey is ON-HIGHWAY equipment (Q75) and MTU America only quotes for OFF-HIGHWAY equipment. MTU is not able to fill out this form.”

The Product Specialist has since removed CAGE 72582 as an approved source since the market research was conducted.

, Product Specialist, stated during his October 2017 review of the material that MTU America’s part sales manager confirmed part number 5237045 is no longer their item. Since 2007 is has belonged to Daimler Trucks cage 64678. They own the rights to the item.

CAGE 62860

Previous Awardee CAGE 62860, Penn Detroit also responded to the request for market survey. PENN DETROIT DIESEL stated they are interested in a firm fixed priced contract and would submit an

The company is a dealer of Daimler Truck North America.

However, She stated the following about the commerciality about the item, “Please understand the commercial market is returning cores, whereas the DOD is NOT, therefore the commercial customer is only getting charged for the part itself. The DOD is getting charged the part + the core.” Additionally, Penn Detroit listed the following comment about the manufacture of the item. . “Please be advised MTU America, cage 72582 is NOT the manufacture of this item.

Years back Detroit Diesel separated from MTU America, they sold their 2cycle line to MTU America. At that time, Detroit Diesel kept their 4cycle line and opened under Daimler Trucks North America. This item is a 4cycle Detroit Diesel item and should be listed under cage 64678, pn DDE R5237045..”

CAGE 0PJT5

Additionally, previous awardee also responded to the market research survey Central Power Systems is a small business and a dealer for CAGE 64678. The company is interested in a firm fixed priced contract and would submit an offer.

. Central Power Systems stated the item is commercial with a price list available.

Previous history for this item shows 10 purchase orders since 2014 to three different suppliers. Review on most purchase order SPE7L117V7839 reveals no alternate offers were received. Several quotes from dealers were received quoting the product of both approved sources.

A sources sought was posted to FedBizOpps October 17, 2017 – October 23, 2017 with a market research request form attached, but no responses were received to date

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

Commercial Determination:

APPROVAL REQUIREMENTS

[ x ] Up to $700,000 Contracting Officer

[ ] $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)