SPE7LX-20-D-0096 - JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7LX-20-R-0031

Project# CL19079001

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 an other than full and open competition basis.

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

CLIN BRIEF DESCRIPTION NSN Part Number ADQ ADV AMC/

AMSC

0001 Battery, Storage 6140-01-458-4863 0WY95/ 9750S0746 500 3/D 0002 Battery, Storage 6140-01-467-9576 0WY95/ 0770-2007 80 3/D 0003 Battery, Storage 6140-01-484-5343 0WY95/ 0769-4010 8 3/D 0004 Battery, Storage 6140-01-484-5349 0WY95/ 0766-4015 317 3/D 0005 Battery, Storage 6140-01-484-5373 0WY95/ 0771-4010 43 3/D 0006 Battery, Storage 6140-01-492-0227 0WY95/ 9750S0788 728 3/C 0007 Battery, Storage 6140-01-501-5933 0WY95/ 0774-3003 36 3/B 0008 Battery Assembly 6140-01-520-6830 0WY95/ F0777-3023 103 3/C 0009 Battery, Storage 6140-01-520-7112 0WY95/ 0790-2510 538 3/C 0010 Battery, Storage 6140-01-527-4592 0WY95/ F0773-3007 16 3/D

TOTAL ADV:

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

NSN End Item

6140-01-458-4863 AIRCRAFT, F-16

6140-01-467-9576 OHIO CLASS SSBN (TRIDENT)

6140-01-484-5343 SEAWOLF CLASS SSN

6140-01-484-5349 TICONDEROGA CLASS CG (47)

6140-01-484-5373 CARGO SYSTEM, 463L

6140-01-492-0227 AIRCRAFT, EAGLE F-15

6140-01-501-5933 ARLEIGH BURKE CLASS DDG

6140-01-520-6830 AIRCRAFT, STRATOFORTRESS B-52

6140-01-520-7112

THIS WILL BE THE PARENT WSDC FOR ALL ARMY

MRAP WSDCS

6140-01-527-4592 KIOWA AND BLACKHAWK

ESTIMATED 3-YR BASE VALUE: (ADV x 3) ESTIMATED 5-YR CONTRACT VALUE: x 5) MAXIMUM CONTRACT VALUE: x 7.5)

DLA Land and Maritime intends to enter into a Firm- Fixed Price (FFP) long-term Indefinite Delivery, Indefinite Quantity (IDIQ) Contract, not to exceed five (5) years, which consists of a three-year base period and the potential for two (2) one-year options. In addition to the items specified in Section B of the solicitation, the scope of this contract includes the purchase of part numbered items for which EnerSys Energy Products, Inc. (0WY95) is the only approved source. DLAD Procurement Note L27 will be included in this procurement to allow for additions and/or deletions of items, if applicable.

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. These NSNs have Acquisition Method Code(s)/ Acquisition Method Suffix Code(s) (AMC/AMSC) of 3/B, 3/C, and 3/D, respectively. As noted in the paragraph above, EnerSys is the only approved source for these items and the only known firm that possesses the technical data, drawings, and specifications necessary to fulfill the Government’s requirements and no other responsible sources can supply the items to satisfy agency needs.

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

EnerSys Energy Products, Inc. (0WY95)

The use of the authority cited below:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

[X] 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.

[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.

[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.

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

[X] A Combined Synopsis/ Solicitation will be posted on DIBSS for a minimum of 30 days.

[X] Sources Sought notices were posted to FBO from March 20, 2019, to March 27, 2019, and from September 6, 2019, to September 13, 2019. No responses were received.

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

All NSNs on this acquisition are commercial items and, thus, exempt from the requirement for certified cost or pricing data. However, the buyer expects to receive manufacturer/dealer competition and will conduct price analysis using competition, continued market research, and procurement history.

8. Market Research/Efforts to Obtain Competition:

Market surveys were sent on March 20, 2019, to 10 vendors, four of which responded (see Attachment #2, Market Survey Results). Two Sources Sought notices were posted on FBO.gov in March 2019 and September 2019 and yielded no responses.

An analysis was performed of the information in Haystack to review the procurement history and whether any similar items may be available for comparison for the price analysis or to allow for enhanced competition. The information in Haystack indicated that these items have only one or a limited number of responsible sources, as indicated above. Procurement history shows that the items have been procured almost exclusively from EnerSys via long-term contracts and/or spot buys.

DD Form 2579 was sent to and approved by the Small Business Office for the procurement to be solicited as unrestricted-other than full and open competition as there is no reasonable expectation that offers will be obtained from at least two small businesses offering the products of different business concerns, which is based on the AMC/AMSC codes (sole source items), as well as market research results, and procurement history.

Summary of Market Survey Information Sent:

Types of information requested: The market survey requested that companies provide answers to general questions regarding their company size and status, the existence of a parent company, and EDI capability. Long-Term Contract related questions asked included: whether the company is interested in an LTC, if a three-year base period with two one-year options is acceptable. The Market Survey requested whether the offerors would be able to provide Certified Cost or Pricing Data. Other questions asked included: whether it would be beneficial to combine NSNs, whether the products are commercial, whether prices were published, whether prices would be included for transportation charges if the items require FOB Destination, and whether the Government would see any savings.

Delivery questions were asked regarding phased delivery and maximum quantity.

Summary of Market Survey Information Received (see also Attachment#2):

EnerSys Energy Products, Inc. (0WY95): EnerSys responded to the market survey on March 29, 2019. They stated that they are interested in a long-term contract with the Government with a

EnerSys identified the items as commercial and available for purchase by the general public via their website (www.enersys.com).

Bogue Systems, Inc. (0BXF1): BSI responded to the market survey on March 28, 2019, and stated that they would be interested in a long-term contract . BSI, a woman-owned small business, stated that they are neither manufacturer nor distributor/ dealer and would be providing items manufactured by Hawker Energy Products, Ltd.* (0NGG5).

stated that items are commercial.

Information received regarding the commerciality of the item:

All items on this acquisition are determined by the Contracting Officer to be commercial. Previous long-term contracts (see attached procurement history) were issued using FAR part 12, Acquisition of Commercial Items, for CLINs 0001-0002, 0004, 0006-0008, and 0010 determining the items commercial. DLAD 12.102(S-97)(vi) states when acquisition personnel have previously determined that an item or service meets the commercial item definition, buying activities should consider this a potential indicator of commerciality. The preference is to accept a prior determination of commerciality, unless there is a reason not to; however buying activities must conduct market research, to the extent appropriate to the circumstances to determine if a prior commerciality designation is relevant to the current buy. CLINs 0003, 0005, and 0009 were not previously on long-term contracts; however, the sole source manufacturer, EnerSys (0WY95), confirmed that these items are commercial and being offered for sale to the general public via www.enersys.com.

Buyer made a technical referral on October 7, 2019, regarding the commerciality of the items. Product Specialist, , responded on October 15, 2019, confirming that all of the items on this acquisition are commercial items (see Attachment #3, PS Email).

Market research was conducted for this acquisition by sending market surveys to the items’ approved source(s) and distributors; EnerSys (approved source/manufacturer) stated that these items are commercial. Buyer also performed online searches to determine the commerciality of the items.

9. Additional facts supporting other than full and open competition are:

Based on the technical certification (see Attachment #6) dated March 27, 2019, by , Product Specialist, as well as an updated data pull dated October 29, 2019, it is confirmed that technical data is not available and cannot be developed to permit full and open competition. An alternate source must be approved by the Engineering Support Activity (ESA). The data presently available reflects the minimum needs of the Government.

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

(0WY95).

11. The following actions are being taken to identify additional sources:

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items

[signatures appear on the following page]

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of Contracting Activity Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

[ ] $700,000 to $13,500,000 Competition Advocate

[X] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

Attachments:

1. Unique specifications of EnerSys (Hawker/Genesis) batteries;

2. Market Survey Results;

3. Product Specialist Email;

4. Commerciality (online sources);

5. Online Brochures;

6. Technical Certification.

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.125070

Date: 2019.12.09 14:49:12 -05'00'

BROWN.MARK.

ALBERT.104117

Digitally signed by

BROWN.MARK.ALBERT.10

41175032 Date: 2019.12.09 15:24:51 -05'00'

12/2/2019

WATSON.CAR

OLINE.R.12993

72142

Digitally signed by

WATSON.CAROLINE.R.1

299372142 Date: 2019.11.15 13:34:48 -05'00'