SPE7LX-17-R-0084_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7LX-17-R-0084

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

(AUG 2016)

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of an item of supply on other than a full and open competition basis.

This DLA Land and Maritime acquisition is for a Federal Acquisition Regulation (FAR) Part 12, Indefinite Quantity Contract (IQC) for DLA-managed consumables identified in Section B of the solicitation and contains nine National Stock Numbers (NSNs). This acquisition is being pursued to provide continued and/or improved supply availability, to preclude backorders, reduce administrative and production lead times (ALT and PLT), decrease potential contract administration actions, and obtain reduced and stable unit pricing.

DLA Land and Maritime intends to enter into a Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract (IQC) issued under FAR Part 12 with a 3-year BASE period and two “1-year” option periods that may be exercised at the discretion of the Government, for a total contract period of five years, if both options are exercised.

3. The supplies required to meet the using activity's needs are described as follows:

BRIEF DESCRIPTION NSN/PN QUANTITY EST.VALUE AMSC

CLIN NSN Item Description Annual Demand Quantity

Acquisition Method Code

Acquisition Method Suffix

Code

0001 4710013132222 TUBE ASSEMBLY,METAL 1,259 1 R

0002 2530013676668 PARTS KIT,BRAKE CHA 1,210 1 P

0003 2530014729720 BRAKE CHAMBER,LH 127 1 P

0004 2530014729723 CHAMBER,AIR BRAKE 159 1 P

0005 2530014745773 BRAKE CHAMBER,JETLH 319 1 P

0006 2530014745776 BRAKE CHAMBER,JETRH 236 1 P

0007 4730014786466 CLAMP AND MENDER KI 760 1 Q

0008 2530014791949 BOOT,VEHICULAR COMP 7 1 P

0009 2530015393253 CHAMBER,AIR BRAKE 456 1 Q

See Attachment 1, for the complete detailed NSN Listing.

This solicitation is necessary in order for Defense Logistics Agency (DLA) to support the multiple variants of the Medium Tactical Vehicle Replacement (MTVR) weapon system used by the U.S.

military.

Estimated Annual Demand Value ADV Estimated 3 year BASE period ADV * 3 Estimated Total Contract Value with 3-year BASE and 2 Option Years (5 Year)

ADV * 5

Contract Maximum ADV * 6 Contract Minimum ADV * .01

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.

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

(AUG 2016)

5. If restricted to the only source(s) of supply, include source(s) and Commercial and Government Entity (CAGE) code: Oshkosh Defense, LLC (CAGE 75Q65) and MGM Brakes Inc (CAGE 4B100) are the only approved sources for the items being solicited.

See Attachment 2, Source Listing for the complete NSN Listing, which identifies the type of vehicle and the approved source of supply specific to each NSN. In addition, Attachment 2, includes a column titled, “Date Cleared all Tech Issues,” which states the specific date the AMSC code for each individual NSN was reviewed and cleared of all technical issues by the DLA Land and Maritime SAPD technical support team. The approved sources listed in the attachment are uniquely qualified to provide these items.

The use of the authority cited is based on:

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

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

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.

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.

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.

The identified sources are the only ones that own the data or are the only ones capable of manufacturing the item to meet critical operational and reliability requirements.

a. CLINs 0002, 0003, 0004, 0005, 0006, and 0008 contain an AMSC Code P, meaning rights to data is not owned by the Government and cannot be purchased, developed or otherwise obtained, DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

and for these items, the approved sources listed on Attachment 2, are the only sources that own or possess the data.

b. CLINs 0007 and 0009 contain an AMSC Code Q, meaning the Government does not have the complete technical data, and for these items, the approved sources listed on Attachment 2, are the only sources that own or possess the data.

c. CLIN 0001 contains an AMSC Code R, meaning the Government does not own the data rights needed to purchase the item from another source, and for this item, the approved source listed on Attachment 2, is the only source that own or possess the data.

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

(X) The acquisition will be synopsized on or about 6/30/2017.

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

(X) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies. (explain) (X ) SOURCES SOUGHT NOTICE: A Sources Sought Notice was prepared and posted on FedBizOps (for seven days) on January 26, 2017. An updated Sources Sought Notice was prepared and posted on FedBizOps on May 25, 2017 with a response date of June 1, 2017.

Mack Defense, LLC (CAGE 6B8L4) expressed interest in the MTVR NSNs as a large business dealer, on February 7, 2017. The contractor will be added to the bidder list, when the solicitation is issued. As of June 19, 2017, no additional inquiries have been received as a result of the Sources Sought Notice.

The DLA Land and Maritime Sourcing Strategy Specialist initiated a request to the Small Business Office in advance of the project being assigned to the floor buyer to provide recommendation concerning small business participation for the MTVR NSNs in August of 2016, resulting in no response as of October 26, 2016. Although not expected, 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) reviews, and will be solicited when practicable.

(X) Other (Explain): In an attempt to enhance competition and promote small business participation, the buyer completed a random review of the three most recent abstracts with spot buys in Record Management (RM) for all NSNs with history in RM for a pool of potential small business dealers who may have offered in the past, but did not receive an award in an attempt to increase the number of potential small business offers for SPE7LX-17-R-0084. As a result, three potential small business dealers along with three large business dealers were found. A review of the Defense Contractor Review List (DCRL) was completed for the six contractors, revealing no unfavorable issues. Below are the six additional small/large business sources that were found:

Records Management Research Results CAGE Company Name Business Type Previous Interest

06YZ5 Badger Truck Center, Inc Small Business Dealer CLIN 0001 & CLIN 0002 – offering (4B100)

6ZU62 Baker and Associates Technologies, LLC Small Business Dealer CLIN 0001 – offering (4B100) 4GK47 Longhorn Regional Service Center, LLC Small Business Dealer CLIN 0001 & CLIN 0002 – offering (4B100) 3GMY8 Stewart and Stevenson Power Products, LLC Large Business Dealer CLIN 0001 – offering (4B100) 7S526 B.T.M.C. Corporation Large Business Dealer CLIN 0002 – offering (4B100) 62860 Penn Detroit Diesel Allison, LLC Large Business Dealer CLIN 0002 – offering (4B100)

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

(AUG 2016)

During the extensive RM review of the entire 158 NSN - MTVR population, two additional potential small business dealers were found for the large business manufacturing sources. A review of the Defense Contractor Review List (DCRL) was completed for the contractors, revealing no unfavorable issues. Below are the additional potential small business dealers found:

Potential Dealers/Distributors for OEMs on Current Project found in Records Management

CAGE Company Name Business Type Previous OEM Interest 0NJT4 Ruta Supplies, Inc Small Business Dealer Offered on (75Q65) 61125 JGB Enterprises, Inc Small Business Dealer Offered on (75Q65)

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

Cost or pricing data under FAR Part 12-Acquisition for Commercial Items in accordance with (IAW) FAR 15.403-4 will not be requested as the acquisition falls under the exception at 15.403-1(b)(3) and a commercial determination has been made. Proposed prices will be reviewed for fair, reasonable and realistic pricing in accordance with FAR 15.404-1(b)(2)(iv), comparison with competitive published price lists, published market prices of commodities, similar indexes and discount or rebate arrangements.

Price analysis will also be conducted by comparison of the offer received with the past acquisition history, movement of the producer’s price index and comparisons to similar items. If needed, other than cost and pricing data may be requested to provide additional pricing support to the contracting officer.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. A Market Research questionnaire was emailed to a combined total of eight different previous suppliers and Original Equipment Manufacturers (OEMs) between August 3, 2016 and June 5, 2017. Of the eight different contractors who received Market Surveys, six positive Market Surveys (three provided by the same contractor for different sets of NSNs) were received. A total of four different contractors responded favorably to the Market Research, indicating a desire to propose on this requirement.

All potential small/large business dealers and the large OEM who responded to the Market Research, small/large business dealers found in Records Management, and the large business dealer who responded to the Sources Sought Notice, along with the approved large business manufacturing sources and previous suppliers in good standing with the Government at this time will be included on the solicitation bidder list as potential sources.

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

A market survey was conducted on/during: August 3, 2016 and June 5, 2017 Total number of vendors contacted: eight

Names of vendors contacted and responding: A combined total of eight different contractors (manufacturers /dealers) were issued Market Surveys between August 3, 2016 and June 5, 2017 to:

Oshkosh Defense, LLC (CAGE 75Q65)(multiple surveys issued for different sets of NSNs) MGM Brakes Inc (CAGE 4B100) Coordinated Defense Supply (4DEY3) CBT Corporation (4N361) HDT Vehicle Component Sales, Inc (1SER6)

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

(AUG 2016)

Pines Automotive, Inc (3B0Y2) Driveline, Inc (0GE52) Wheeler Brothers, Inc (55683)

Of the eight different contractors who received Market Surveys, six positive Market Surveys (three provided by the same contractor for different sets of NSNs) were received. A total of four different contractors responded favorably to the Market Research, indicating a desire to propose on this requirement.

Techniques used to conduct survey: Email, phone calls, posting Sources Sought notices on FedBizOps, and research of past procurements in Records Management.

Types of information requested: The Market Survey incorporated a request for the contractor to consider a 3-year BASE period in lieu of the one-year base and were asked questions regarding business size and type of business (manufacturer vs dealer), Electronic Data Interchange (EDI) capability, option years (pricing and desirability), cost or pricing data, commerciality, Freight on Board (F.O.B.)

preferences, packaging, and delivery.

Summary of information received: In support of our Military customers, during the preliminary stage of project development the DLA Land and Maritime Sourcing Strategy Specialists (SSS) Branch ZAA and the buyer of record issued formal Market Research between August 3, 2016 and June 5, 2017. Six positive Market Surveys responses (three provided by the same contractor for different sets of NSNs) were received. A total of four different sources of supply responded favorably.

See attachment 3 for the detailed Market Research Chronology received.

Based on the Market Research received, this requirement will be solicited utilizing FAR Part 12 as a Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract with a 3-year BASE period and two “1-year” option periods that may be exercised at the discretion of the Government, for a total contract period of five years, if both options are exercised. All NSNs are now under the First Destination Transportation (FDT) program, and as a result the F.O.B. will be at Origin (Government managed freight) and no zone pricing. The Inspection/Acceptance will be Destination for all NSNs in this initiative. The vendors(s) are to be EDI or electronic mail capable.

Information received regarding the commerciality of the item(s): The items in this initiative have been determined to be commercial and will be solicited utilizing FAR Part 12 “Commercial Items.”

Commercial documentation was requested when the Market Research was initially issued. During Market Research, the buyer of record requested two UNREDACTED sale/invoices on January 30, 2017 and again on June 5, 2017 in support of Oshkosh Defense, LLC’s assertions the items in this initiative are commercial. Both included a request showing past sales to customers other than the Government and preferably within the past year, as well as a copy of their company’s PUBLISHED Catalog/Price List with available pricing indicated or an on-line version in support of their commercial determination for this initiative. Below is a review of the supporting commercial documentation received on this initiative:

Under MR CL16214009 Oshkosh Defense, LLC provided 42 Internet pages titled as, “Other than Cost or Pricing Data, on September 23, 2016. Review of the 42 Internet pages reveals, 12 pages (supporting eight NSNs) can be used to support a Commercial Item Determination.

CLIN 0001 - 4710013132222 - other than C/P data containing one page with similar MGM P/N CLIN 0002 - 2530013676668- other than C/P data containing one page with Actual MGM P/N and one page with similar MGM P/N CLIN 0003 -2530014729720 – other than C/P data containing one page with Actual MGM P/N and one page with similar MGM P/N

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

(AUG 2016)

CLIN 0004– 2530014729723 - other than C/P data containing similar MGM P/N of a type CLIN 0005 – 2530014745773 - other than C/P data containing similar MGM P/N of a type CLIN 0006 – 2530014745776 - other than C/P data containing one page Actual Oshkosh P/N and one page with similar MGM P/N of a type CLIN 0008 – 2530014791949 - other than C/P data containing similar MGM P/N of a type CLIN 0009 – 2530015393253 - containing one page with Actual MGM P/N and one page with similar MGM P/N of a type.

Under MR CL16319001a Oshkosh Defense, LLC provided 19 Internet pages titled as, “Other Than Cost or Pricing Data, on February 7, 2017. Review of the 19 Internet pages reveals, 11 pages (supporting eight NSNs) can be used to support a commercial item determination.

CLIN 0001 – 4710013132222 - other than C/P data containing similar P/N of a type CLIN 0002 – 2530013676668 - other than C/P data containing similar P/N of a type (2 pages) CLIN 0003 - 2530014729720 - other than C/P data containing similar P/N of a type (2 pages) CLIN 0004 – 2530014729723 - other than C/P data containing similar P/N of a type (2 pages) CLIN 0005 - 2530014745773 - other than C/P data containing similar P/N of a type CLIN 0006 - 2530014745776 –other than C/P data containing similar P/N of a type CLIN 0008 - 2530014791949 - other than C/P data containing similar P/N of a type CLIN 0009 – 2530015393253 - other than C/P data containing similar P/N of a type

Under 9001a Oshkosh Defense, LLC provided eight Internet pages titled as, “Other than Cost or Pricing Data, on June 12, 2017. Review of the eight Internet pages reveals, all eight pages (supporting eight NSNs) can be used to support a Commercial Item Determination.

CLIN 0001 - 4710013132222 - other than C/P data containing one page with Actual MGM P/N CLIN 0002 – 2530013676668 - other than C/P data containing one page with Actual MGM P/N CLIN 0003 - 2530014729720 - other than C/P data containing one page with Actual MGM P/N CLIN 0004– 2530014729723 - other than C/P data containing one page with Actual MGM P/N CLIN 0005 – 2530014745773 - other than C/P data containing one page with Actual MGM P/N CLIN 0006 – 2530014745776 - other than C/P data containing one page with Actual MGM P/N CLIN 0008 – 2530014791949 - other than C/P data containing one page with Actual MGM P/N CLIN 0009 – 2530015393253 - other than C/P data containing one page with Actual MGM P/N

Oshkosh Price List Evaluation Results: Oshkosh Defense, LLC provided an PRICED EXCEL spreadsheet copy of their COMMERCIAL Price list Catalog titled, “Oshkosh Corporation Price List November 2016.xlsx” identifying 9488 Part Numbers, with individual Item Descriptions, and the List Price, to the DLA Land and Maritime SAPD Strategic Sourcing Specialist, r, SAPD – ZBB, Contract Specialist, on December 2, 2016. A complete copy of the PRICED EXCEL Commercial Price list Catalog was provided on the Q drive to the buyer of record on January 18, 2017 to be utilized in support of a Government Commercial Item Determination. An extensive review of the PRICED “Oshkosh Corporation Price List November 2016” version on January 27, 2017 reveals unit pricing is present for six NSNs. For the three NSNs that does not contain “actual unit pricing,” Other Than Cost or Pricing Data documentation has been received and determined to be acceptable in support of a Commercial Item Determination.

The nine NSNs in this initiative are MTVR spare parts; tube assemblies, brake part kits, brake chambers, and clamps, which are typical truck items and readily available for sale to the general public. Oshkosh Defense, LLC and MGM Brakes, Inc are known worldwide as suppliers in the commercial market place as well as the Government. The buyer completed research of the NSNs on PartTarget.com and all NSNs are readily available for sale to the general public. All NSNs were clearly defined and available for sale in the commercial market place.

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

(AUG 2016)

In support of a Government Commercial Item Determination, the buyer requested and received a combined total of 31 Internet pages (identifying actual P/Ns and/or similar P/Ns of a type) for eight of the nine NSNs. At the conclusion of the review, the Contracting Officer made the determination the 31 Internet pages are acceptable and can be used to support a Commercial Item Determination along with the unit price information provided in the PRICED “Oshkosh Corporation Price List November 2016” version for solicitation SPE7LX-17-R-0084. Based on the information above, the Contracting Officer made the determination these items meet the Commercial Item Definition in FAR 2.101 and determines these items to be commercial. As a result, the items in this initiative will be solicited utilizing FAR Part 12 “Commercial Items.”

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. Forecast information is available to all potential sources for the 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 and 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 information 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: (If none, so state) Oshkosh Defense, LLC (CAGE 75Q65) Wheeler Bros, Inc (CAGE 55683) Pines Automotive, Inc (CAGE 3B0Y2) Drive Line, Inc (CAGE 0GE52)

11. These items are subject to the following methods of locating additional sources:

(X) The solicitation contains the procurement Note L04, “Offers for Part Number Items.”

( ) VE Bailment Program

(X) Source Development Review ( ) Reverse Engineering

(X) Several attempts were made to locate historical J & A(s) researching FedBizOps and

Records Management (RM) for previous acquisitions for all NSNs in this initiative to make a determination if actions under previous procurements were accomplished during the term of the acquisition. All awards found historically have been procured as manual procurements under the Simplified Acquisition Threshold (SAT), large purchases, or using the Procurement Automated Contract Evaluation (PACE) system. The buyer was unable to locate historical redacted copies of J & As for the NSNs in FedBizOps after several inquiries. No physical hard copy contract files were found. After an extensive research in FedBizOps and RM, no additional historical J & A’s could be located.

(X) The buyer researched the Abstracts in Record Management for spot buys with history in Record Management (RM) for a pool of potential small/large business dealers who may have offered in the past, but did not receive an award in an attempt to increase competition for all NSNs in this initiative.

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

(AUG 2016)

A combined total of eight potential small/large business dealers in good standing were found. As a result, the Contracting Officer made the decision to include them as possible sources on the solicitation bidder list.

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.

KAREN E. BOYLES Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

MARY E. COUTURE Date DLA Land and Maritime Competition Advocate

APPROVAL REQUIREMENTS

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

Attachments:

1 – NSN Listing 2 – Source Listing 3 – Detailed Market Research Chronology

BOYLES.KAREN.E.

1230204264

Digitally signed by

BOYLES.KAREN.E.1230204264

Date: 2017 06.26 16:24:16 -04'00'

COUTURE.MARY.E.12

30253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.07.03 10:56:49 -04'00'

For Official Use Only Source Selection Information See FAR 2.101 and 3.104

NSN Listing 2

For Official Use Only Source Selection Information See FAR 2.101 and 3.104 SPE7LX17R0084 - J and A Attachment # 1

Acquisition Advice Code

(AAC)

Item Category Group (ICG)

Acquisition Method Code

(AMC)

Acquisition Method Suffix Code (AMSC)

Place of Inspection

(PIC)

Quality Control Code (QCC)

Base Unit

Order Unit

Conversion Factor

Administration Lead Time (ALT)

Production Lead Time

(PLT)

Defense Prioities and Allocation

System

(DPAS)

Rating

North America Industry

Classification System (NAICS)

Small Business Size (Per

NAICS)

Critical Part Indicator

(CPI)

PLT for Solicitation utilizing (PLT of Record)

D NORM 1 R 2 DAA EA PG 2 28 35 DOC9 332996 500 X 35

D NORM 1 P 2 DAA EA KT 1 22 38 DOA4 336340 1250 X 38

Z NORM 1 P 2 DAA EA 1 77 101 DOC9 336330 1000 57

Z NORM 1 P 2 DAA EA 1 77 101 DOC9 336330 1000 64

Z NORM 1 P 2 DAA EA 1 77 101 DOC9 336330 1000 64

Z NORM 1 P 2 DAA EA 1 77 101 DOC9 336330 1000 64

Z NORM 1 Q 2 DAA EA 1 85 118 DOC9 326122 1000 50

Z NORM 1 P 2 DAA KT 1 33 101 DOC9 336330 1000 101

Z NORM 1 Q 2 DAA EA 1 77 101 DOC9 336330 1000 57