JA_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-17-R-0003

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 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

VALUE

AMC AMSC

FILTER, FLUID 2910-013649843 2344 3 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 Indefinite Quantity type contract. 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 four weapon systems and used for MBN (Consolidated Ground Support Equipment), TAA (Target Acquisition AN/TSQ-179), WUA (Generator, 5KW, TQG (Tactical Quiet Family), and C7A (Navy Expeditionary Programs). WSIC code of T, which has a definition of ‘level C – failure will render end item inoperable’. NSN to be procured from the sources approved to supply it to maintain weapon system functionality.

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.

5. Acquisition is restricted only to the following source(s) of supply for all items: 33457 CUMMINS

FILTRATION INC.

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. Limiting the acquisition to the approved source, as they are identified on the source controlled drawing and either have the data necessary to manufacture the item and/or rights to use the data when the Government does not have such data and/or data rights. 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

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 2 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.

[X] Other: Per the approved manufacturer part list available for this NSN in SAP, only Cummins Filtration Inc.

has been identified by the Government as having the complete technical dataset and appropriate manufacturing expertise to supply this NSN to DLA and the using military service. It is designated as a critical application item, and its weapon system indicator code is T (level C, failure will render the end item inoperable). As such, acquisition from the currently approved source is required to maintain the quality of the part. Per acquisition specialist review of the source-controlled drawing for this NSN, only Cummins Filtration, Inc. is identified as the source of supply to be used per the drawing. Last technical review of this item was conducted on 03/02/2015 and no additional sources beyond the sole approved source in the AMPL were identified at that time. In addition, SAPD product specialist review conducted 01/07/2016 did not disclose any additional sources.

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

[X] The acquisition will be synopsized on or about 10/12/2016.

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 indefinite quantity type contract. 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 anticipates receiving more than one offer, and adequate price competition is expected to exist at time of evaluation of proposals.

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 January 6, 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 January 13, 2016. As of January 13, 2016, no additional responses were received.

Market Research Conclusion:

A market survey was conducted on: January 6, 2016– March 23, 2016.

Total number of vendors contacted: 9 Names of vendors contacted and responding: Nine sources were contacted including OEM CAGE 33457, and CAGEs 19151, 48CG9, 3NNX8, 0LE70, 019W6, 4R699, 3B0Y2, and 04MP1.

One small business dealer source (CAGE 19151) Lynn Electronics and one large business dealer (CAGE 15434) Cummins Mid South returned market surveys.

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

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

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 3

Summary of information received:

a) A summary of market research was provided along with the project package on 02/17/16 by the Sourcing

Strategy Branch ZAA. Nine sources were contacted including OEM CAGE 33457, and CAGEs 19151, 48CG9, 3NNX8, 0LE70, 019W6, 4R699, 3B0Y2, and 04MP1.

Lynn Electronics, CAGE (19151), Small Distributor/Dealer/Reseller and Cummins Mid South, CAGE (04MP1), Large Distributor/Dealer/Reseller returned market surveys. Sources Sought notice posted January 2016 produced no additional inquiries. The results of the surveys are documented below.

1. CAGE 19151 / Lynn Electronics indicated the following in their completed market survey.

i.

ii. Distributor/Dealer/Reseller

iii. Small Business

iv. Employees 50

v. Parent Company is Lynn Electronics

vi. Have EDI capability

2. CAGE 04MP1/ Cummins Mid-South indicated the following in their returned market survey.

i. Distributor/Dealer/Reseller ii.

iii. Large Business

iv. EMPLOYEES 600

v. Yes, there is a parent company

1. Cummins, Inc. 30,000

vi. Yes, have EDI capability

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b) Previous LTC project canceled received three dealer offers indicating current market interest in

Information received regarding the commerciality of the item(s): MM03 COTS field is N for the NSN, indicating the technical community has recommended we determine the item non-commercial. None of the sources providing completed market surveys considered the item to be commercial. This particular NSN is not listed on any GSA Federal Supply Schedules. Lastly, all Google results for this NSN were tied to Government information sources. Item is therefore determined to not 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.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) CAGE 19151 / Lynn Electronics- responded;

CAGE 04MP1/ Cummins Mid South– responded.

CAGE 33457 / Cummins Filtration – interest party, based on email correspondence advising they missed the previous RFP being available.

11. This item is subject to the following methods of locating additional sources:

[X] The solicitation will contain the Procurement Note M04 entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items.

[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.

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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.

Carol M. Bucher Date Contracting Officer

This justification has been reviewed for legal sufficiency:

DLA Land and Maritime Counsel Date

APPROVAL REQUIREMENTS

[ x ] Up to $700,000 Contracting Officer

10/07/2016Digitally signed by

BUCHER.CAROL.M.1267565690

Date: 2016.10.07 10:49:46 -04'00'

5 Date: 2016.10.14 11:32:57 -04'00'