J&A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L518R0014

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

Nozzle, Fuel Injection 2910-01-336-8213 521 1C

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

Subject NSN is described as a spring loaded nozzle designed to meter and inject fuel at specific pressure(s) to engine fuel combustion chambers.

The Department of the Army is the primary customer for this fuel injection nozzle. This nozzle is used in the engines of a Heavy Expanded Mobility Tactical Truck (HEMTT). The HEMTT is an eight-wheel drive, diesel-powered, 10-short-ton (9,100 kg), tactical truck with an objective to provide heavy transport capabilities for supply and re-supply of combat vehicles and weapons systems

ESTIMATED BASE VALUE ___________ __________ ___________

ESTIMATED TOTAL VALUE (BASE + 100% 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:

MTU America Inc. DBA 72582 P/N 5234775

OSHKOSH DEFENSE, LLC 75Q65 P/N 2GE889

The use of the authority cited below:

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

https://en.wikipedia.org/wiki/Eight-wheel_drive https://en.wikipedia.org/wiki/Diesel_fuel

[ x ] 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. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

Per the Approved Manufacturer Parts List available for this NSN, only MTU America Inc. DBA 72582 P/N

5234775 and OSHKOSH DEFENSE, LLC 75Q65 P/N 2GE889 has been identified by the Government as having the complete technical data set and appropriate manufacturing expertise to supply this NSN to DLA and the using military service. As such, acquisition from the currently approved source is required to maintain the quality of this armor. Product Specialist conducted the last technical review of this item on October 30, 2017. No additional sources beyond those listed in the AMPL were identified and the AMC/AMSC of 1C 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 as the technical data and manufacturing expertise to successfully manufacture this item for the

Government and using military service.

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

[ x ] The acquisition will be synopsized on or about ___December 6, 2017_____.

[ x ] Request for Proposal will be posted on DLA’s Internet Bid Board System (DIBBS) for a period of 30 days to allow any offeror the opportunity to submit a Proposal for the product of Oshkosh Defense or MTU America.

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 521 each with a 100% option.

Multiple/Split awards will not be considered, as this item is being procured on an All or None basis.

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 ___10/27/17 – 11/3/17_______.

Total number of vendors contacted: _____4______________________.

Names of vendors contacted and responding:

CAGE 75Q65 – Unresponsive CAGE 72582 – Responded on November 1, 2017 CAGE 0PJT5 – Responded on October 27, 2017 CAGE 62860 – Unresponsive

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:

On October 27, 2017 CAGE 0PJT5 responded to the market survey. from Central Power Systems indicated their company is a small business dealer for MTU America.

stated this item is commercial with commercial of the shelf history but a catalog/price list is not available.

from OEM CAGE 72582 responded to the Markey Survey request on November 1, 2017. CAGE

72582 stated they are a large business and the actual manufacture of the nozzle who prefer to quote the

Government through dealers.

made the below statement regarding the commerciality of the nozzle:

“MTU part number: 0523475 (NSN: 2910013368213 ) is an Injector assembly for an 8V92, 2-cycle Detroit Diesel engine. This engine was designed and sold for use in many markets including: construction, mining, pleasure craft, on-highway and government. All design, development, engineering and production costs were and continue to be assumed by MTU America Inc.. As defined by FAR 2.101(1) – of a type customarily used by the general public or non-governmental entities for purposes other than governmental purposes, and FAR 2.101(8) – A nondevelopmental item … developed exclusively at private expense; Detroit Diesel 2-cycle engines and their associated service replacement parts are commercial items. MTU America Inc. considers all engineering and production information as proprietary.”

Additionally, stated a catalog/pricing list existed but was not available to supply a copy to the

Government. When questioned about the catalog/price list availability, Mr. Urwiller responded “MTU America

Inc. has 18 authorized North American distributors with approximately 173 sales and service locations to support customers in the United States and Canada. With over 200,000 actively priced parts and more than 900,000 parts in our system the only practical method of providing pricing to our distributors is through a secure electronic file. Below is a screen shot from our system showing the ) of Injector Assembly, DDEC

GEN V, PN: 05234775, (NSN:2910-013368213) for a Detroit Diesel, Series 92, 2-cycle engine.”

Previous history for this item shows 2 large purchases for this item in 2017. One Contract SPE7L417C0079 to

CAGE 62860 and SPE7L418C0012 to CAGE 0PJT5. Previous to this was a long term contract with CAGE

4V314. However, review of previous large purchase reveals CAGE 4V314 no longer supplies this item. Most recent contract SPE7L418C0012 reveals no alternate offers were received. Four proposals were received from dealers offering the product of MTU America.

Although CAGE 0PJT5 indicated the item is only available as a remanufactured number, DLA Product Specialist verified with MTU America on November 6, 2017 that the PN 5234775 is still procurable.

A sources sought was posted to FedBizOpps October 27, 2017 – November 01, 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:

Market research did not yield any readily available published catalog price lists, schedules or other form of commercial pricing that are regularly maintained and updated by a manufacturer or vendor that are available to the general public for inspection nor is there evidence of sale prices at which sales were made to a significant number of buyers constituting the general public. General public is interpreted as individuals using such parts in a non-governmental or military capacity.

MTU America responded to the market survey this item is commercial and a price list was available. After further discussion MTU America provided a list of their dealers with these price lists. A request for information regarding the commerciality was sent to MTU America dealers. from W. W. Williams responded to the information request on December 20, 2017. indicated the part is a commercial part. However, the price list is visible only to MTU distributors. Therefore, not available to the public.

An internet search was conducted for the part numbers of the approved sources, but the item could not be found.

Per FAR 12.205, a review of the item shows that there is no existing product literature generally available in the industry to determine its adequacy for purposes of evaluation.

AMC/AMSC of 1C, blank SAP COTS status, O results found on the GSA Advantage site, and Product Specialist indicated item is for military purposes only.

NSN 2910-01-336-8213, in accordance with FAR 2.101, is considered non-commercial.

[ 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)