J A_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-16-X-0037

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

P a g e | 1

(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:

BRIEF DESCRIPTION NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST.

ANNUAL

DEMAND AMC AMSC

PARTS KIT, BALL JOINT 2530-01-188-3685 14,277(est.) 1 B

3 Year Base Estimated Value =$ 5 Year Total Estimated Value = Contract Maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Purchase Order. The five-year period is inclusive of one three-year base period and two separately priced one-year option periods. The 3-year base period estimated value is and the base period plus two option years' estimated value is The contract maximum is

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

The NSN is tied to weapon systems 80A (Truck, Vehicle System, 1 1/4 Ton (HMMWV)), and 7HM (Boat, CMT Recon Craft). The HMMWV is used by the US Army and US Marine Corps, and the Boat, CMT Recon Craft is used by the US Marine Corps. This ball joint parts kits is used to replace the upper and lower ball joints in the suspension systems for the HMMWV and Recon Craft due to the wear and tear experienced upon significant usage.

4. The statutory authority permitting other than full and open competition is:

(X) 10 U.S.C. 2304(c)( l ) - Available from only one or a limited number of sources.

5. Acquisition is restricted only to the following source(s) of supply for all items:

CAGE 63477 / Federal Mogul Motorparts; CAGE 4WJN6 / Affinia Products Group.

The use of the authority cited below:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

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

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

P a g e | 2 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.

[X] Other: (Explain) The Government has reserved the right to approve sources and only CAGEs 63477 and 4WJN6 have been approved. In addition, per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CAGEs 63477 and 4WJN6 have been identified as having the proper complete technical data and manufacturing expertise to supply the items to DLA and the using military services. Therefore, competition must be limited to offers of the product of CAGEs 63477 and 4WN6. Most recent technical reviews were conducted in October 2015 (per SAP) for the NSN and no additional sources were identified at that time. In addition, a technical review in support of a potential LTC was performed in October 2015 as well. The NSN was determined to be suitable for an LTC at that time.

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

[X] The acquisition will be synopsized on or about 06/15/2016.

[X] Dealers of the manufacturers will be solicited.

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

This will be a five-year, firm fixed price, indefinite delivery purchase order. The five year period is inclusive of one three-year base period, and two separately priced one-year option periods. As such, the price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes. Based on the results of market research, the buyer does not anticipate receiving more than one offer, and adequate price competition is not expected to exist at time of evaluation of proposals. However, as the acquisition will conducted under FAR Part 13.5 Test Program for Certain Commercial Items terms and conditions, requesting certified cost/price data is prohibited. The buyer will request other than certified cost/price data from the offeror if deemed necessary at time of proposal evaluation.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.fbo.gov. In addition to the publishing of a Sources Sought notice, the Sourcing Strategy team's Contract Specialist also researched the procurement history for the item on the proposed solicitation and emailed each of the suppliers that still had a valid registered

CAGE.

Sources Sought Notice:

On 01/07/2016, a Sources Sought notice was posted to www.fbo.gov, which also contained an attached market survey. The date of return referenced on the sources sought notice was 01/13/2016. As of 05/ 12/2016, no additional sources responded to the notice.

Market Research Conclusion:

A market survey was conducted on: 09/2015-03/2016.

Total number of vendors contacted: 2 Names of vendors contacted and responding:

CAGE 3B8Ll / Janel's Industries, Inc. - responded;

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

P a g e | 3

CAGE 5AAR8 / Praetorian Manufacturing, Inc. - did not respond.

Techniques used to conduct survey: E-mail and Sources Sought notice.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

Two sources were contacted - (CAGE) 3B8LI / Janel's Industries, Inc.; and 5AAR8 / Praetorian Manufacturing, Inc. The two approved sources were not contacted as they do not have any kind of registration in www.sam.gov, so no points of contact were available to the sourcing strategy team's acquisition specialist. The results of the surveys are documented below.

1. CAGE 3B8L1 / Janel's Industries, Inc. indicated the following in their returned market survey.

i. Interested in a Long Term Contract

ii. Item is commercial

iv. Small Service-Disabled Veteran-owned Small Business Dealer/ Employees = 10

v. No parent company

2. CAGE 5AAR8 / Praetorian Manufacturing, Inc. did not respond to the market survey.

Information received regarding the commerciality of the item(s): This particular NSN is not listed on any GSA Federal Supply Schedules. MM03 COTS field has an entry of 'No' for the NSN, indicating the technical community has made the recommendation to determine the item non-commercial. That recommendation was made based on the ESA imposition of FAT requirements per the product specialist of record. One manufacturer is waived for first article testing. The dealer providing a completed market survey considered the item to be commercial. The previous LTC was issued subject to FAR Part 12 terms and conditions based on the information provided by the awardee and the approved manufacturer during negotiations - this documentation was a commerciality assertion signed by the manufacturer, along with a statement of equivalency between the Government’s part and the commercially available part. Lastly, the Bing results for this NSN and its corresponding part numbers were tied to both Government information sources and various aftermarket parts Internet-based suppliers. Based on the availability of the part through Internet retailers (particularly www.napaonline.com), the general public can purchase this item directly from the retailers. It thus meets the definition of a commercial item per FAR 2.101 (“Commercial Item” (1)(ii)). The contracting officer has therefore determined the item to be commercial.

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

[X] 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.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

P a g e | 4

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Janel's Industries, Inc. / CAGE 3B8Ll.

11. The following actions are being taken to identify additional sources before any subsequent acquisitions are made: (If none, so state and explain why not.)

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. The previous acquisition, SPE7MX-15-D-0117, did not have a justification and approval for other than full and open competition available for inclusion and review.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

P a g e | 5

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.

Matthew M. Kirk, Contracting Officer

APPROVAL / CERTIFICATION

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

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

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

KIRK.MATTHEW.M.10733

78261

Digitally signed by KIRK.MATTHEW.M.1073378261 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=KIRK.MATTHEW.M.1073378261 Date: 2016.06.07 08:27:52 -04'00'

6/10/2016