Final_Redacted_J_and_A_SPE7LX16R0195.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX16R0195

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

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:

Description NSNs Axle parts Reference Table below

This solicitation is for attached NSNs classified with a Producer Price Index of - 1412 “Motor Vehicle” in support of sustaining the items referenced below.

Weapon System:

The end items are axle parts supporting Mine Resistant Ambush Protected armored vehicles and various other utility vehicles.

Estimated Base Value: (ADQ/NSN x Moving Average Price) Estimated Total Value (Base + Options) (5 yrs. x Maximum Contract Value: (6 yrs. x

4. The subject items are restricted to AxleTech International LLC; CAGE 3D6E9. The authority for the restriction of competition is FAR 6.302-1(a) (2) (i) (A), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements qualifications”. This contractor has developed axle parts with unique technologies and capabilities. For items coded AMSC D and R, AxleTech International is the only source currently known to possess the technical data and/or data rights required to manufacture the items. AxleTech International is the only known source of the items coded AMSC L; the items have been screened for additional known sources but none has been identified. Additionally, a sources sought notice was posted on May 29, 2015 for eight days and no additional potential sources were identified.

NSN AMC AMSC NOUN NAIC

2520015110334 3 R HOUSING,AXLE ASSEMB 336350

2520015724416 4 D SHAFT,AXLE,AUTOMOTI 336350

2520015926566 3 C PROPELLER SHAFT WIT 336350

2520015929676 3 D PROPELLER SHAFT WIT 336350

2530012480340 3 R CHAMBER,AIR BRAKE 336340

2530014536901 3 D BRAKE,SINGLE DISK 336340

2530014538453 3 D HUB,WHEEL,VEHICULAR 336350

2530014588983 3 L TIE ROD END,STEERIN 336330

2530015195538 3 L PARTS KIT,STEERING 336330

2530015199144 3 D BRAKE DRUM 336340

2530015205692 3 L SENSOR,ANTI-LOCK BR 336340

2530015707470 3 C SENSOR,ANTI-LOCK BR 336390

2530015709007 3 D PARTS KIT,VEHICULAR 336390

2530015732857 3 D TIE ROD END,STEERIN 336330

2530015776954 3 D SPINDLE,WHEEL,DRIVI 336390

2530015776970 3 D BRAKE BOOSTER ASSEM 336340

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

NSN AMC AMSC NOUN NAIC

2530015777048 3 D TIE ROD END,STEERIN 336390

2530015778574 3 D ROTOR,DISC BRAKE 336340

2530015817226 3 D TIE ROD,STEERING 336330

2530015848692 3 C ROTOR,DISC BRAKE 336340

2530015853072 3 C CHAMBER,AIR BRAKE 336340

2530015892510 3 C CHAMBER,AIR BRAKE 336340

2530015894237 3 C DISK BRAKE SHOE 336340

2530015926560 3 C ARM,STEERING GEAR 336330

2530015926567 3 D KNUCKLE,STEERING 336390

2530015926570 3 D KNUCKLE,STEERING 336330

2590015926571 3 C BRACKET,VEHICULAR C 336390

2815015187219 3 L BREATHER 333618

3010014543528 3 D CARRIER,CLUTCH ASSE 333612

3010015099532 3 R CARRIER,GEAR ASSEMB 333612

3010015707671 3 D CARRIER,GEAR ASSEMB 336350

3010015727601 3 D ACTUATOR,HYDRAULIC- 336350

3020012915897 3 L GEAR,SPUR 333613

3020015475003 3 C GEAR,SPUR 333612

3020015926565 3 L GEAR,SPUR 333612

3040012936867 3 D CAP,LINEAR ACTUATIN 333613

3040014543531 3 C CYLINDER ASSEMBLY,A 333613

3040014543533 3 D CYLINDER ASSEMBLY,A 336211

3040015197000 3 R SHAFT,STRAIGHT 333613

3040015767800 3 D HUB,BODY 333613

3040015892511 3 C BALL JOINT 333613

3040016229847 3 D CYLINDER ASSEMBLY,A 333613

5330015499595 3 D SEAL,PLAIN ENCASED 339991

5340015926531 3 D PLATE,MOUNTING 332510

The use of the authority cited is based on:

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

(The following are the AMSC descriptions.

[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.

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

[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.

[X] 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.

[X] AMSC L. The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different

AMSC.

The items AMC/AMSCs were validated by the Product Specialist and by Value Engineering on November 9, 2016

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

The acquisition was synopsized December 21, 2016. Due to the time delay of issuing the solicitation, the synopsis will be amended to update the projected date for issuance of the solicitation. A solicitation will be issued on or about August 8, 2017. The solicitation will remain open for thirty days. In addition to notifying the manufacturer of the Request for Proposal (RFP), dealers of the manufacturer will be solicited.

Sources Sought Posted (See Section 8 for more information concerning Sources Sought).

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

This will be a five (5} year, firm fixed price, Indefinite Quantity Contract (IQC}. The five year period is inclusive of a three (3) year base period, and two (2) separately priced, one (1) year option periods. Based on the results of market research, it is unclear if adequate price competition will exist at the time of offer evaluation. It is anticipated that Cost or pricing data IAW FAR 15.403-4 will not be required. This requirement is over $700,000; however, these items are determined commercial. Price analysis will occur comparing the offer(s) received with past acquisition history, movement of the producer price index, and comparisons to similar items. Based upon the above techniques to be applied, the Contracting Officer anticipates costs to the Government will be fair and reasonable.

The NSNs in this initiative are determined to be commercial as defined by FAR 2.101.

8. Market Research/Efforts to Obtain Competition:

A technical review was completed to ensure the items on this initiative are restricted to the approved source.

, VEE, verified November 8, 2016 the items in the subject project are restricted to AxleTech

International. A Sources Sought notice was posted on Federal Business Opportunities (FedBizOps) on May 29, 2015. The notice was open for eight days. There were no additional sources of supply identified during the period of the sources sought notice.

Market Survey [10 U.S.C. 2304(f) (3) (D)]:

A market survey occurred on 2/24/2015 and 9/14/2016.

Total number of contractors contacted: 4 Names of vendors contacted and responding: Contractors Contacted: AxleTech International LLC (Cage 3D6E9), Oshkosh Defense (Cage 75Q65), HDT Vehicle Component Sales (Cage 1SER6) and SAIC (CAGE 79343) Vendors that responded: The one approved source and three dealers provided a response to the questionnaire.

Techniques used to conduct survey: Market Surveys sent via email, phone calls, internet research.

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

Types of information requested: The market survey sought information on contractors’ capabilities, vendor size and business status information, distributor involvement, researching/information gathering on commerciality of the items, delivery information, interest in Economic Price Adjustments (EPA), Base year and option years; optimal lengths, possible price/cost advantages, and interest in a multi-year contract and the duration of such a contract.

Summary of information received:

AxleTech International LLC (CAGE 3D6E9):

Large Business Manufacturer States items are commercial

Oshkosh Defense (CAGE 75Q65):

Large Business Distributor/Dealer States items are commercial

HDT Vehicle Component Sales Incorporated (CAGE 1SER6):

Small Business Distributor/Dealer States items are commercial

Science Applications International Corporation (CAGE 79343)

Large Business Distributor/Dealer Contractor stated they no longer provide AxleTech International LLC. parts

Information received regarding the commerciality of the item(s): Market research performed assisted in the determination the items contained in this initiative are commercial. In addition, similar parts are available on commercial websites.

Based upon the above information, this item meets FAR 2.101(1) (ii) definition of a commercial item which states that the item must have been “offered for sale, lease or license to the general public.” For the reasons stated above the Contracting Officer determines the item in this initiative to be commercial.

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

Oshkosh Defense and HDT Vehicle Components Sales stated in their submission of the market survey their proposals will be based on providing AxleTech International parts.

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 NSNs included on this solicitation were reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase. No additional sources were identified during that review.

Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA internet Bid Board System (DIBBS.) SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially, it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items. The DLA Land & Maritime Value Management Unit continually seeks out sole source, limited competition, over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact info for both the DLA Value Engineering program and the DoD Value Engineering program.

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

AxleTech International LLC. (3D6E9) Oshkosh Defense (75Q65) HDT Vehicle Component Sales Incorporated (1SER6)

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, these items are subject to the following methods of locating additional sources:

(X) The solicitation contains Procurement Notes: (1) Offers for Part Number Items (L04) and (2) Evaluation of Part Numbered Items (M06).

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.

Contracting Officer Phone Date Julie M. Miller edge and belief.

cting Officer

614 692 4841 02 Aug 2017

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

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is $

MARY E. COUTURE Phone Date Competition Advocate Signature

APPROVAL REQUIREMENTS

(X) $700,000 to $13,500,000 Competition Advocate

HOPSON.LILLI.A.123

0127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2017.08.07 14:18:04 -04'00'