Justification_ _Approval_-_Posted_to_FBO.pdf

DEFENSE LOGISTICS AGENCY

DLA Land and Maritime

POST OFFICE BOX 3990

COLUMBUS, OH 43216-5000

MEMORANDUM FOR RECORD

SUBJECT: Justification for Acquisition by Means Other than Full and Open Competition under Authority of 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements and FAR 6.302-2 Unusual and Compelling Urgency for NSN 2620-01-536-6926

Summary/Introduction (10 U.S.C. 2304 (c) (1) and (10 U.S.C. 2304 (c) (2) : The purpose of this justification and approval is to support the Only One Responsible Source and the Unusual and Compelling Urgency determination made to support NSN 2620-01-536-6926. A single source urgent award was made to Michelin North America, Inc. to ensure uninterrupted support of the US Air Force requirements for this tire as it is a component of the F-16 landing gear. In order to expedite administration of this new contract action SPE7LX-15-D-0028 will be modified to include a new Contract Line Item to implement this urgent requirement.

Furthermore, Michelin has agreed to use pricing from CLIN 0032 from the contract for this new requirement. SPE7LX-15-D-0028 is a Hybrid Indefinite Delivery Indefinite Quantity and Requirements with Economic Price Adjustment (EPA) contract and was originally awarded at DLA Land and Maritime to Michelin North America, Inc. (Michelin) (OA1K8) on November 14, 2014, with a two-year base period and two, one-year option periods. The estimated annual demand value of the contract including the two one-year options is . The estimated maximum value of the contract is . The items covered under the contract were solicited and awarded under FAR Part 12. This long term contract (LTC) provides supply support to the Tires Successor Initiative (TSI) Contract on contracts SPM7LX-11-D- 0157, SPE7Ll-I4-D-0005 and SPE7Ll-16-D-0006, pursuant to FAR Part 51 Authority, and may also provide direct supply support to the Government. The contract provides coverage for CONUS, OCONUS and FMS shipments with orders placed by the TSI Contractor for military customers.

This particular action is being created for the purchase of Michelin part number M00808 which is supplied under National Stock Number (NSN) 2620-01-536-6926 Tire, Pneumatic, Aircraft.

This part number is used worldwide by the United States Air Force (USAF) for the F-16 aircraft's main landing gear. This NSN was originally awarded to Michelin on a 70/30 split with Michelin receiving 30% of all orders. However, since that time, the Air Force has determined there is a new and separate requirement for the Michelin part number M00808

Justification and Approval for SPE?LX-15-0-0028 P00004

This new requirement for Michelin part number M00808 is due to the Air Force's preliminary determination that landing gear retraction incidents are associated with the for NSN 2620-01-536-6926.

It is important to note that the DR investigations were performed on tires that were removed from the MLG wheels and not under the conditions that existed when the retraction interference incidents occurred.

Description of Agency's Need (10 U.S.C. 2304 (f)(3)(A): This new requirement was unforeseeable and immediate action was required to continue support and avoid any interruption in supply for F-16 aircraft landing gear

Additionally, as the result of the USAF's approved sourcing limitation placed on critical mission locations, is the Government's only source of supply for NSN 2620-01-536-6926.

Justification and Approval for SPE7LX-15-D-0028 P00004

Whenever an aircraft is unable to retract landing gear, that pilot is required to follow emergency procedures in the flight manual. The procedures

Aircraft have two major types of weight limits: the maximum takeoff weight and the maximum structural landing weight, with the maximum structural landing weight almost always being the lower of the two. This allows an aircraft on a normal, routine flight to take off at the higher weight, consume fuel in route, and arrive at a lower weight. If the pilot does not reduce the gross weight and lands "heavy" there is an increased chance of runway departure and fire. This could result in loss of life and aircraft.

Additional flight safety concerns that occur from landing gear retraction issues include gear damage, damage in the bay or gear not extending.

By executing this new contract action as proposed, This new contract action will provide flexibility in meeting changing requirements and it is in the Government's best interest to award is with a Period of Performance of March 23, 2016 through March 22, 201 7.

The Government estimates a minimum of Michelin tires per month for NSN 2620-01-5 3 6- 6926 will be ordered based upon existing requirements and the new requirements resulting from the

A single source award action is necessary to avoid any interruption in supply for F-16 support in critical mission locations. The estimated value ofthis contract is for a period of performance not to exceed one year. This figure was calculated by talcing the current price of NSN 2620-01-536-6926 on contract SPE?LX-15-D-0028 and multiplying it by the expected demand of tires for the 12-month period between March 2016 and February 2017.

Authority for Other than Full and Open Competition (10 U.S.C. 2304 (t)(3)(B): The single source award will be issued under Other than Full and Open Competition authority for items in which a need exists for supplies

, full and open competition need not be provided for, pursuant to statutory authority 10.U.S.C. 2304 (c) (2) and FAR 6.302-2. The item supported on the long term contract has the following applicable acquisition method code (AMC) and acquisition method suffix code (AMSC) in accordance with DFARS PGI 217.7506 Part 2: AMC 1 and

AMSCT.

The definition for the AMC code is as follows:

1: suitable for competitive acquisition for the second or subsequent time.

The definition for the AMSC code is as follows:

T: Acquisition ofthis part is controlled by qualified products list (QPL) procedures.

Competition for this part is limited to sources which are listed on or are qualified for listing on the QPL at the time of award (see FAR Part 9 and DF ARS Part 209). AMCs 1 or 2 are valid.

Michelin is the only approved source on the QPL that can provide PIN M00808 which has been mandated by USAF for aircraft at certain locations. Michelin is a large manufacturer that has the production capabilities necessary to immediately meet the urgent demand requirements on the proposed sole source award.

Price/Cost Considerations (10 U.S.C. 2304(t)(3)(C): The single source award action will be executed using the same pricing structure as on contract SPE7LX-15-D-0028 with a period of performance not to exceed one year. The price of the tire included is determined to be fair and reasonable based on the fact that it is of a type of commercially available item and the price is comparable to past prices which were awarded on a competitive basis. This price will be subject to change according to the EPA which will take place in November 2016.

Additionally, the price of this tire was deemed fair and reasonable on contract SPE7LX-15-D- 0028 based on a comparison of competitive proposed prices in accordance with FAR 15.404- 1 (b )(2)(i). Two offers were received with all of the offered prices determined fair and reasonable based on adequate competition. The Government based the determination of best value through the application of a Lowest Price Technically Acceptable (LPTA) evaluation process. Awards were made to the offerors where split award pricing was found fair and reasonable based on the evaluation criteria in Section J of the solicitation. In addition to price, these factors were also evaluated on the basis of technical acceptability: Materiel Requirement Factor, Delivery Requirement Factor, Experience Requirement Factor, Work Experience Sub-Factor, Schedule Experience Sub-Factor, Compliance Requirement Factor, Technical/ Quality Control Plan Sub Factor, Information Technology Sub-Factor, Subcontracting Plan Requirement Factor, Surge and Sustainment Requirement Factor.

Market Research/Efforts to Obtain Competition {10 U.S.C. 2304{0(3)(D) and 10 U.S.C.

2304 (t)(3)(E):

Market research was done prior to awarding contract SPE7LX-15-D-0028. The Government reviewed the Qualified Products List (QPL) which indicated that competition was anticipated to be full and open. There were two sources listed on the QPL: Goodyear (04NP4) and Michelin (OA1K8). Also a Sources Sought Notice and Request for Information (RFI)/market survey were submitted to industry in preparation for the L TC successor acquisitions. RFI/market survey was posted on FedBizOps (14 days) on December 16, 2013 and closed on January 10, 2014. Since 2012, NSN 2620-01-536-6926 has been awarded via split award contracts to Michelin and Goodyear. The government has deemed only these two sources to be acceptable for this NSN.

Action Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(fl(3)(F):

NSN 2620-01-536-6926 is coded as AMC/AMSC 1/T, which means that it is controlled by the QPL procedures. The two sources listed on the QPL are Goodyear and Michelin. Per FAR 9.206-3(a) a review of the QPL reveals the number of sources is adequate for competition. The Government anticipates overcoming barriers to competition in the future by synopsizing the action on FedBizOps, and posting the solicitation on DIBBS as an additional measure to promote competltlon. This NSN was initially awarded via full and open competition.

There are other commercial sources for NSN 2620-01-536-6926 and the government has the expectation that future solicitations for this NSN will be made on a full and open competitive basis.

APPROVAL

Based upon the foregoing justification, I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

/':Jyif?: ..l-c___ f_b/,;.e./1,_ L~E. RODOCKER Date Contracting Officer Deputy Director, Strategic Acquisition Programs Directorate DLA Land and Maritime

MARYE. COUTURE

Competition Advocate DLA Land and Maritime

___ 2 August 2016 __ Date

APPROVAL REQUEST

( ) Up to $650,000

(X) $650,000 to $12,500,000 ( ) $13,000,000 to $78,500,000 ( ) Over $78,500,000

Contracting Officer Competition Advocate Commander Senior Procurement Executive (AQ)

Justification and Approval for SPE7LX-15-D-0028 P00004