PR__0065811204redacted_JA_SPE7L717Q0168_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7L7-17-Q-0168

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

[ 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:

This solicitation is for a Customer Direct FMS requirement for PR 0065811204.

Requirement is for 300 each (EA) and 600 (EA) with a 100% option, NSN 2610-01-603- 9820, Tire, Pneumatic, Vehicle.

This is a DLA Managed Item that cannot be identified to a specific Army Weapons Systems. However, the product specialist stated the end item is for NSN 2320-01-272-5029 M-915A5 Tire for a Truck Tractor.

The AMC/AMSC code for this item is 3/D.

The solicitation has an estimated base value of and with a 100% option.

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.

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

There is one (1) source of supply:

Michelin North America, Inc. (Cage 12195) P/N 77510 AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

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.

The FLCA Product Specialist stated that the material is made in accordance with a part number, and they confirmed that the only approved source of supply is Michelin North America, Inc (Cage 12195) P/N 77510. Michelin North America is the only source that is uniquely qualified to manufacturer this item. Technical data is not available and cannot be developed to permit full and open competition at this time. Michelin is the only known source who possess the technical data needed to procure this item.

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

The acquisition has been determined to be commercially available and the Government is using the policies and procedures outlined in FAR Subpart 13.5 –Simplified Procedures for Certain Commercial items. The acquisition will be synopsized for 15 days on FedBizOpps and the acquisition will be solicited on the internet for 15 days via the DLA Internet Bid Board System (DIBBS) to encourage competition.

The approved source of supply Michelin North America, Inc. (Cage 12195) will be solicited.

Likewise, dealers of the approved source of supply which include, Colony Tire Corporation (Cage 3JME8), and Pomp’s Tire Service (Cage 1T1Z4) will be solicited. GCR Tire and Service a Division of Bridgestone America Tire Operations (Cage 073A9) and Complete Packaging & Shipping (Cage1URK6) will be added to the source list and solicited, although they are planning to quote an alternate product. A review of the contract history indicates the previous five awards were made to one of Michelin’s authorized dealers Pomp’s Tire.

A Sources Sought notice was posted to FedBizOpps on 10/25/2016 and closed on 10/31/2016.

GCR Tire and Service a Division of Bridgestone America Tire Operations (Cage 073A9) and Complete Packaging & Shipping (Cage 1URK6) contacted the buyer expressing an interest in quoting an alternate product. Buyer advised both companies that if they would like to become an approved source for this NSN they would have to submit a SAR package. Buyer emailed the SAR package to GCR Tire and Service a Division of Bridgestone America on January 3, 2017 and to Complete Packaging & Shipping on January 31, 2017.

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. PPI code being used for analysis is PCU326211326211, tire manufacturing, except retreading. It is anticipated that the award will be determined fair and reasonable, based upon a buyer price analysis and comparison to contract history.

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. The approved source Michelin, DLA Land and Maritime’s product specialist , and authorized dealers of the approved source indicated this was a commercial item. Invoices were also provided to further support this items commerciality. A review of the DLA Material Master indicated that this is not a Commercial-Off-The-Shelf item. However, as stated above it was determined that this item is commercially available. The item is only available from one identified source: Michelin North America, Inc. Searches on the internet yielded no useful information on the P/N or pricing information. DLA anticipates obtaining quantity price discounts due to the potential large quantity being procured.

8. Market Research/Efforts to Obtain Competition:

Market survey was emailed on October 25, 2016.

Total number of vendors contacted: 5 Sources Sought Notice was posted to FedBizOps (FBO) on October 25, 2016. GCR Tire and Service a Division of Bridgestone America Tire Operations (Cage 073A9) and Complete Packaging & Shipping (Cage 1URK6) contacted the buyer expressing an interest in quoting on this acquisition. They both indicated they plan on quoting an alternate product.

Names of vendors contacted and responding to Market Survey: Michelin North America, Inc. (Cage 12195), Colony Tire Corporation (Cage 3JME8), Pomp’s Tire Service (Cage

1T1Z4), GCR Tire and Service a Division of Bridgestone America Tire Operations (Cage 073A9), and Complete Packaging & Shipping (Cage 1URK6).

Techniques used to conduct survey: Market Survey was emailed to Michelin North America, Inc. (Cage 12195), Colony Tire Corporation (Cage 3JME8), Pomp’s Tire Service (Cage 1T1Z4), GCR Tire and Service a Division of Bridgestone America Tire Operations (Cage 073A9), and Complete Packaging & Shipping (Cage 1URK6).

Types of information requested:

o Manufacturer or dealer o Business size o Commerciality o Estimated delivery o Quantity sensitivity

Summary of information received:

Colony Tire Corporation (Cage 3JME8) is a small business dealer. Material is considered commercial. Colony Tire Corporation is interested in this procurement

Pomp’s Tire Service, Inc. (Cage 1T1Z4), is a large business dealer. Material is considered commercial. Pomp’s Tire is interested in this procurement.

GCR Tire and Service a Division of Bridgestone America Tire Operations (Cage 073A9) is a large business dealer. Material is considered commercial. GCR Tire and Service is interested in this procurement.

Complete Packaging & Shipping (Cage 1URK6), is a small business distributor. They stated material is not considered commercial. Complete Packaging & Shipping is interested in this procurement.

Michelin North America, Inc. (Cage 12195) was emailed a market survey but they did not respond. They did state in an e-mail to the buyer that item was a commercial product.

• Per FAR 2.101, this item does meet the definition of a commercial item and has been determined to be commercial. DLA Land and Maritime’s Product Specialist also confirmed that NSN 2610-01-603- 9820 is commercial. (See Commerciality Determination Memorandum for Record with attachments 1- 4).

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.

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.” All previous orders for subject NSN were under the simplified acquisition threshold (SAT). Therefore, a J&A was not required and is not available for review. At this time, the requirement/guidance in PGI 206.304 has been fulfilled.

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

Colony Tire Corporation (3JME8), Pomp’s Tire Service (1T1Z4), GCR Tire and Service a Division of Bridgestone America Tire Operations (073A9), and Complete Packaging & Shipping (1URK6) all expressed an interest in quoting on this requirement.

11. 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 item is subject to the following methods of locating additional sources:

Requirement will be synopsized for 15 days and solicitation will be posted to DIBBS for a period of 15 days.

The solicitation contains provisions L04 Offers for Part Numbered Items and M06 Evaluation of Offers for Part Numbered Item. However, alternate offers will only be evaluated for future procurements based on existing need to expedite award.

Efforts to qualify additional suppliers for future procurements include the following: Any new vendor who decides to pursue source approval will be directed to the Competition Advocate's Source Approval Program. The Competition Management Office (CMO) would encourage interested parties to submit Source Approval Request (SAR) for this item if it should later be determined that future buys of subject NSN are in the best interest of the Government.

ATTACHMENT:

Commerciality Determination Memorandum for Record with attachments 1-4.

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 Harris Contracting Officer Office Phone: 614-692-8150

APPROVAL REQUIREMENTS

[ X ] Up to $700,000 Contracting Officer

HARRIS.TIFFAN

I.R.1255230200

Digitally signed by

HARRIS.TIFFANI.R.1255230200

Date: 2017.07.24 15:58:09 -04'00'