Redacted_J-A_SPE7LX16R0103.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX16R0103

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

ORIGINAL (previous J&A is Attachment 2)

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. Subject solicitation is for a Firm-Fixed Price Indefinite Quantity long-term contract (LTC) with the following scope: Items for which AM General, LLC (34623) is the only approved source.

3. The initial population of supplies required to meet the using activity's needs are described in the table below and are a subset of the scope of the solicitation and resulting contract. Technical and quality reviews were completed for these items on July 16, 2015.

NSN Item Milton ADV ADQ AMC AMSC CAGE PART NUMBER Other P/N

2510014232877 BAR,STABILIZER 1,848 3 D 34623 6005274B1 6005274-B1

2510015455887 DOOR,VEHICULAR 32 3 D 34623 6030574

2510015455890 DOOR,VEHICULAR 31 3 D 34623 6030573

2510015455893 DOOR,VEHICULAR 25 3 D 34623 6030576

2510015479739 PANEL,BODY,VEHICULA 20 3 D 34623 12480855

2510015634601 HINGE,DOOR,VEHICULA 299 3 D 34623 6038389

2510015634855 FRAME,WINDOW,VEHICU 52 3 D 34623 6031750

2510015702381 PANEL,BODY,VEHICULA 1,920 3 D 34623 6044790

2510015966592 REAR EVAP AIR FILTE 1,132 3 D 34623 6036440

2510016181087 PLATE,MOUNTING 1,074 3 D 34623 6042541

2530013336068 CALIPER ASSEMBLY,DI 2,113 3 B 34623 12342341

2530014614732 ROTOR,DISC BRAKE 4,970 3 B 34623 EX4857

2540015482550 DUCT ASSEMBLY,AIR C 562 3 D 34623 6019793

2540015545912 ARMOR,SUPPLEMENTAL, 3,707 3 D 34623 6041969T2

2540015702987 ARM,REARVIEW MIRROR 737 3 D 34623 6039466

2540015770082 MIRROR HEAD,VEHICUL 897 3 D 34623 6039504

2540016181000 ARMOR,SUPPLEMENTAL, 3,782 3 D 34623 6042181

2540016181872 BASE PLATE,BODY 2,634 3 C 34623 6042203

2540016181880 BASE PLATE,BODY 5,100 3 D 34623 6042089T2

2540016181891 BASE PLATE,BODY 1,602 3 D 34623 6043221

2540016181948 BASE PLATE,BODY 5,669 3 D 34623 6042085

2540016181950 BASE PLATE,BODY 1,994 3 D 34623 6042532

2540016181953 COVER,VENTILATORY 2,602 3 D 34623 6042146T2

2540016185779 ARMOR,SUPPLEMENTAL, 5,198 3 C 34623 6042084 6042084T2

2540016188279 ARMOR,SUPPLEMENTAL, 3,450 3 R 34623 6042091T2

2540016188810 ARMOR,SUPPLEMENTAL, 2,875 3 D 34623 6041968T2

2540016189589 ARMOR,SUPPLEMENTAL, 4,826 3 R 34623 6042211T2

2540016189610 ARMOR,SUPPLEMENTAL, 1,467 3 D 34623 6038358

2590015693285 BRACKET,VEHICULAR C 6,846 3 D 34623 6039447

2590015699469 BRACKET,VEHICULAR C 1,753 3 D 34623 6042026

2590015703038 BRACKET,VEHICULAR C 1,404 3 D 34623 6060139

2590015704707 BRACKET,VEHICULAR C 1,958 4 D 34623 6042025

2590016084513 BRACKET,VEHICULAR C 3,116 3 D 34623 6060140

2640014196205 VALVE STEM ASSEMBLY 1,868 3 B 34623 57K0297

2930014332547 SHROUD,FAN,RADIATOR 377 3 C 34623 RCSK17158

2950014398169 TURBOSUPERCHARGER,E 459 3 D 34623 5714646 GEP-12553949

5330015548341 SEAL,NONMETALLIC SP 28,628 3 D 34623 6033488

5340015546683 PLATE,MOUNTING 7,123 3 D 34623 6033438

5340015548280 STRAP,WEBBING 12,012 4 D 34623 6032122

5365015547830 SPACER,PLATE 51,865 3 D 34623 6032616

5365016182350 SPACER,SLEEVE 9,009 3 D 34623 6042156

5961015933791 SEMICONDUCTOR DEVIC 3,130 3 C 34623 13013962

5962014972519 MICROCIRCUIT,MEMORY 2,692 3 C 34623 5716029

5963015545406 ELECTRONIC MODULE,S 16 3 D 34623 6033649

Total

Estimated Annual Value Estimated 4-Year V Contract Maximum:

This requirement is in support, but not limited to the HMMWV (High Mobility Multipurpose Wheeled Vehicle). This initiative is for a Non-Commercial Indefinite Quantity Contract for a base period of one year and has three one-year option periods.

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. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4: AM General (34623) is uniquely qualified to manufacture this item because they are the original equipment manufacturer of the HMMWV and the only approved source either in the Procurement Item Description or on the source control drawing. Further, AM General is the only company that possesses the technical data (and/or rights to the data) to make these items. For NSNs with AMSC C, AM General has specifically unique design capabilities and knowledge of the manufacturing processes, and the parts require engineering source approval from the design control (military) activity. For all AMSCs, AM General retains the rights to the technical data and manufacturing knowledge, and it is either not available to the Government, not economical to obtain, or not feasible or economical to reverse-engineer the parts to draft adequate specifications for competitive procurement. A copy of the complete Procurement Item Descriptions for each item is included as Attachment 1.

The use of the authority cited is based on:

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

AMC 4. Acquire, for the first time, directly from the manufacturer.

The following are the AMSC descriptions.

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. If at least two sources exist, AMCs 1 or 2 are valid.

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.

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.

AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

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

The acquisition will be synopsized on or about June 17, 2016.

A manufacturer of similar products identified by sources sought synopsis will be solicited.

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

This is a fixed-price LTC, and the prices will be determined fair and reasonable based on analysis of (certified) cost data, price analysis, and negotiations. Included in the price analysis will be a comparison of the proposed price increases from year to year with Bureau of Labor Statistics Producer Price Indexes.

8. Market Research/Efforts to Obtain Competition:

A sources-sought synopsis was issued April 5, 2016 and closed April 12, 2016, notifying potential offerors that if they are interested in becoming approved sources, they may submit the appropriate information outlined in DLAD 52.217-9002, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items. A response was received from Blacksand Metalworks, Inc (7J2V1), who submitted a capability statement. The buyer replied, encouraging the company to review DLAD provision 52.217-9002, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items and submit an alternate offer for one or more NSNs. The buyer told the representative that they will be contacted when the solicitation is issued.

The buyer did additional research on the 127 sole source NSNs which had been solicited for the existing LTC, SPE7LX15D0055, for which this solicitation is the successor. Out of that population of 127 NSNs, 35 now have a competitive ASMC of “G,” indicating technical data is available for full and open competition. Three other NSNs are now actively coded to a source other than AMG.

When the current LTC, SPE7LX15D0055, was in the midst of falling apart during negotiations, Mr. Lewis, the Head of the Contracting Activity, directed breakout action on key AMG sole source NSNs. The buyer contacted the Value Engineering Office of DLA Land and Maritime to see if there are any active source break-out projects for AMG sole source NSNs, but no response has been received. However, the NSNs mentioned above that have become fully competitive are a result of this effort.

Teleconferences were held with AM General to discuss which items are possible to price for the entire contract term. AM General stated that their suppliers can only hold pricing for multiple years on certain NSNs if there are guaranteed minimum quantities per year.

These NSNs are currently being purchased through individual spot buys on purchase orders and contracts either directly with AM General or with dealers for AM General, or the existing LTC with AM General, SPE7LX15D0055 (orders issued under price-pending terms of this contract have delivery order numbers beginning with SPE7LX15DP055). In the past there has been other LTCs with AM General and an LTC with a dealer. The J&A for SPE7LX15D0055 is attached (Attachment 2) and the procurement was conducted under other-than full and open competition.

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

Based upon the technical certification on file in DLA Land and Maritime-VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

10. A listing of sources, if any, indicating an interest in the acquisition: AM General, LLC (34623) and Blacksand Metalworks, Inc (7J2V1)

11. In order to overcome barriers to competition, the solicitation contains the provision entitled, “Conditions for Evaluation and Acceptance of Offers for Part Numbered Items.”

Attachments:

1 – Procurement Item Descriptions 2 – Past J&A