SPE7LX-17-R-0054_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX17R0054

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

(April 2014)

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/PN QUANTITY EST.VALUE AMSC

*See Attachment #1 for a full listing of all Fixed Price (FP) items.

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

Multiple variants of MRAP, Combat Vehicles, Armament and other Vehicles

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

DLA Land and Maritime, Land Supply Chain, proposes to enter into a new successor LTC to procure parts for which BAE Systems is the only approved source. This solicitation is for a Corporate Indefinite Quantity Contract (IQC) with a three (3) year base and two (2) one-year option periods. The overall project covers one hundred and forty six (146) National Stock Numbers (NSNs) with a base period (3 years) estimated dollar value of a contract maximum value of A listing of NSNs with the Acquisition Method Code (AMC) / Acquisition Method Suffix Code (AMSC) is attached in attachment 1. These NSNs support various Naval weapon systems, HMMWV, land based weapon systems, armament, and Family of Medium and Light Tactical Vehicles (FMTV). These items will be procured on an “all or none” basis per NSN. The scope of this acquisition includes sole source items coded to BAE Systems CAGE codes under Federal Acquisition Regulation (FAR) Part 15

– Contracting by Negotiation. Additional items within the scope of this acquisition that meet the requirements of 10 U.S.C. 2304 (c)(1) may be added to this solicitation or any resulting contract(s) at a later date.

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. The items needed for this acquisition are available from only one or a limited number of responsible sources and no other type of items will satisfy the Agency needs. BAE Systems and affiliated CAGE codes is the only approved source of supply for these NSNs.

If restricted to the only source(s) of supply, include source(s) and CAGE code:

BAE Systems and affiliated BAE CAGEs (05386, 06085, 064S4, 54786, 6W728, 80212, 076M6, 44114, 80212, and 0FW39) is the approved source of supply for all NSNs. Adequate data for the evaluation of alternate offers is not available at the procurement agency. BAE Systems is the only company that has gone through the source approval process. If a product different from the approved part is offered by the contractor, the contractor must get their part numbers approved by submitting a source approval package to the Engineering Support Activity (ESA). BAE is the only uniquely qualified source of supply that owns the technical rights for all the NSNs/items. In order for competition to be present, the owners (such as the U.S. Army or U.S. Navy) of the weapons systems would need to buy the technical rights from BAE, who is the Original Equipment Manufacturer (OEM), then re-code all the items so that other companies could offer proposals. For this project though, BAE again is the only source of supply that owns the technical rights to supply these parts. There is no other way to promote competition.

The use of the authority cited is based on:

( X ) AMC 1. Suitable for competitive acquisition for the second or subsequent time ( X ) AMC 2. Suitable for competitive acquisition for the first time.

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

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

( X ) AMC 5. Acquire directly from the sole source contractor, who is not the manufacturer.

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

[ 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 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 ] 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.

[ 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. AMCS 3, 4, or 5 are valid.

[ 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.

This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. 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 ] AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. 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.

[ X ] AMSC Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). 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 ] 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.

[ X ] AMSC Z. This part is a commercial/nondevelopmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

*APPLIES TO LTCs - An Item identified by AMSC A, H, or L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by AMSC A, H, or L on Long Term Contracts, are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items to ensure that an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC. Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement.

Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

*Additional note, there are twenty-one (21) items coded with an AMSC of ‘L’ and have been reviewed by a Technical Quality specialist for accuracy and if they could be updated. Based on the fact that their ADV threshold is under $10K, they remain coded as ‘L’. The buyer has checked with all available databases to ensure that the items do not have any other sources of supply listed other than BAE Systems.

Note that all items were reviewed by a Product Specialist either on or before 10/30/16 to ensure that the assigned AMC/AMSC coding was current and correct.

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

(X ) The acquisition will be synopsized on or about 27 Feb 2017.

( ) Manufacturers of similar products identified in the market research will be solicited.

( ) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies. (explain) ( ) Other (Explain): In an effort to encourage participation by manufacturers in the acquisition process and to help decrease barriers for companies looking to become sources of supply, DLA Land & Maritime hosts supplier forums, bringing in industry leaders for particular commodities or weapon systems. DLA depending on budget allowance also holds supplier conferences.

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

It is anticipated that Cost or Pricing data IAW FAR 15.403-4 will be required. This requirement is over the threshold of $750,000. Price analysis will also be conducted on comparison of the offer received with the past acquisition history, movement of the producer price index, and comparisons to similar items. Based upon the above techniques to be used, the Contracting Officer hereby anticipates costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

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

A market survey was conducted on/during 03/23/2016.

Total number of vendors contacted: 1.

Names of vendors contacted and responding: BAE Systems and Brighton Cromwell (responded to the ‘sources sought’ notice in FBO), see info below in paragraph.

Techniques used to conduct survey: Email.

Types of information requested: The market survey sought information on contractor’s interest in long term contract & number of years preferred, commerciality per FAR 2.101(b), FOB and zone preference, business type (large, small, SDVOSB, WOSB), and willingness to provide cost or pricing data. Additionally, a ‘Sources Sought’ notice was posted on FedBizOps on 03/26/16 until 04/03/16 with one company responding or showing interest in the project, Brighton Cromwell. They were not aware that the items were sole source to BAE. Currently Brighton Cromwell is not a distributor for BAE Systems or any of the items.

Summary of information received: The information that BAE provided this time does not match what they have provided in the past to other surveys. The buyer has spoken on the phone with a representative from BAE who has confirmed that once the solicitation is issued, they will indeed provide a proposal on the items they can support from the list of NSNs. This is their current response: “We don't have details on file to accurately answer most of these questions and it is not worth the administrative effort to contact our suppliers for answers when the listing is well over 350 NSN's and we are only at the survey stage with no guarantee what so ever that we will ever recognize a return on our efforts. We've been asked to respond to surveys for opportunities that were later released as 100% set asides. I understand that is not likely to be the case here but details like minimums, price breaks and delivery can only accurately be provided by obtaining current quotes from our supplier. Some questions like what is our business classification and would be consider an LTC with DLA should not have to be asked and other questions like who are suppliers are is proprietary information that we are not likely to provide answers to for survey purposes.”

Information received regarding the commerciality of the item(s): NSNs to be acquired on this solicitation/contract were not determined commercial in accordance with FAR 2.101. They will be procured under FAR Part 15. The market research that was performed determined that the items contained in this initiative are not commercial off the shelf (non-developmental items).

The agency’s need for the acquisition of these items is to sustain critical weapon systems and their supporting equipment. Market research found these are not found in a commercial price list. The parts are not sold in substantial quantities in the commercial market. Per the market research none of the parts sampled were sold to the public. It is the Contracting Officer’s determination these items are noncommercial.

9. Additional facts supporting other than full and open competition are: Additionally, in an effort to obtain competition and satisfy FAR 10.001 the solicitation will be synopsized and a copy will be furnished to any vendor expressing interest. Additional sources may be identified by the DLA Land and Maritime – Office of Small Business Programs (DU) and Small Business Administration – Procurement Center Representative (SBA-PCR), and will be solicited when practicable. A technical review was completed to ensure all items on this initiative are sole source. At this time, the requirement remains sole source. All interested parties will be added to the source list to be solicited.

( 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.

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:

BAE Systems and affiliated BAE CAGEs (05386, 06085, 064S4, 54786, 076M6, 44114, 80212, 6W728, 80212 and 0FW39); and Brighton Cromwell (3NNX8) who replied to the sources sought notice, but is not an approved source of supply or a distributor to BAE who is the only approved source of supply.

The Buyer located the J&As from the previous acquisition SPM7LX13D9004 in Records Management. It is attached to this J&A as a reference.

11. To overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, this item is subject to the following methods of locating additional sources:

(X ) The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items

(X ) Source Development Review

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. If not exceeding $700,000, this signature serves as the approval.

Contracting Officer

MATTHEW M. KIRK

Typed name of Contracting Officer

Approval/Certification

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

Competition Advocate

MARY E. COUTURE

Head of the Contracting Activity (HCA) Signature

APPROVAL REQUIREMENTS

(X ) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

Attachments:

Attachment #1 – Spreadsheet containing all NSNs on this project.

Attachment #2 – Prior J&A approved on current contract SPM7LX13D9004

KIRK.MATTHEW.M

.1073378261

Digitally signed by

KIRK.MATTHEW.M.1073378261

Date: 2017.05.16 08:06:47 -04'00'

COUTURE.MARY.

E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.05.25 10:57:27 -04'00'

BANKS.ROXANNE.JA

RAMILLO.1156004908

Digitally signed by

BANKS.ROXANNE.JARAMILLO.1156

004908 Date: 2017.05.26 12:05:21 -04'00'