SPE7LX-17-R-0088_-_J_and_A_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION - SPE7LX-17-R-0088

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

(April 2014)

SPE7LX-17-R-0088

ORIGINAL

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

2. The action being approved is the acquisition of items of supply on other than a full and open competition basis, per FAR 6.302-1(a).

This DLA Land and Maritime acquisition is for a Federal Acquisition Regulation (FAR) Part 12, Indefinite Quantity Contract (IQC) for DLA-managed, Power Supply and Storage Batteries, consisting of six National Stock Numbers (NSNs) in the Federal Stock Class (FSC) 6140. This IQC contains a fixed price 3-year BASE period and two potential option years for Customer Direct support. 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. The items needed for this acquisition is available from only one responsible source or a limited number of responsible sources and no other type of items will satisfy the Agency's needs. The approved source for these NSNs will be solicited along with its dealers. The Government will solicit these NSNs on an All or None basis per Contract Item Line Number (CLIN), pursuant to “UCF Section B, All or None.”

DLA Land and Maritime intends to enter into a Fixed-Price with Annual Price Adjustments, IQC issued under FAR Part 12 with a maximum contract period of five years (a three year base period and two option years).

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

This solicitation is necessary in order for DLA to support the Nimitz Class CVN, Arleigh Burke Class DDG, Avenger Class MCM, WASP Class LHD, among other Naval vessels used by the U.S. military.

CLIN NSN Item Description Annual Demand Quantity (ADQ)

DLA Price Unit Cost

Estimated Annual

Demand Value

(ADV)

Estimated 3 Year BASE Period

Acquisition Method

Code

(AMC)

Acquisition Method

Suffix Code

(AMSC)

Weapon System Code

(WSC)

0001 6140014814471 BATTERY,STORAGE 11 3 D F

0002 6140015015993 BATTERY,STORAGE 23 3 C F

0003 6140015129887 BATTERY,STORAGE 83 3 D F

0004 6140015628422 BATTERY,STORAGE 150 3 D F

0005 6140015654451 BATTERY,STORAGE 4 3 D F

0006 6140015764249 BATTERY,STORAGE 190 3 D F

Contract Minimum = ADV * .03

Annual Demand Value

5 Year Value = ADV *5

Contract Maximum = ADV *8

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

SPE7LX-17-R-0088

(X) 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. If restricted to the only source(s) of supply, include source(s) and Commercial and Government Entity (CAGE) code: All of the items are listed below and include the Reference Number Category Code (RNCC), which is a code that designates the relationship of the part number to an item of supply. The Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying, or is for information only.

RNCC Code: 3 - Design Control Reference. The primary number used to identify an item of production or a range of items of production, by the manufacturer which controls the design, characteristics, and production of the item by means of its engineering drawings, specification and inspection requirements.

RNCC Code: 5- Secondary Reference, which is, item identifying. For service application, sometimes referred to as the secondary buy.

RNCV Code: 2- A design control reference or other reference number that is an item-identifying number for an item of production, or is a source control reference, a specification or a standard part, type, or similar reference number that is an item-identifying number for an item of supply

The use of the authority cited is based on:

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

[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.

CLIN NSN Item Description CAGE Company Name Part Number RNCC/RNCV

0001 6140014814471 BATTERY,STORAGE 0ZAP8 POWERSTAR, INC. PSRBC7 3/2

0002 6140015015993 BATTERY,STORAGE 0ZAP8 POWERSTAR, INC. PSRBC11 3/2

0003 6140015129887 BATTERY,STORAGE 0ZAP8 POWERSTAR, INC. PSRBC8 3/2

0004 6140015628422 BATTERY,STORAGE 0ZAP8 POWERSTAR, INC. PSRBC55 5/2

0005 6140015654451 BATTERY,STORAGE 0ZAP8 POWERSTAR, INC. 600-2100 3/2

0006 6140015764249 BATTERY,STORAGE 0ZAP8 POWERSTAR, INC. PSRBC7H 3/2

SPE7LX-17-R-0088

The AMC/AMSC codes and source for each NSN was reviewed by the Product Specialist on May 31, 2017. Powerstar, Inc. retains the 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.

Powerstar, Inc. is the only known source to possess the technical data and manufacturing capability to manufacture the items needed to meet the requirements of the services.

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

(X) The acquisition will be synopsized on or about 02/26/2018.

( ) 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 posted to the Federal Business Opportunities website (FedBizOps) for the required NSNs on September 20, 2017 and requested responses by close of business (COB) September 27, 2017. Six different companies requested information about the NSNs after the FBO notice was released. All were sent the market research documents, and none were returned. All companies will receive notice that the solicitation is issued even though they did not respond with their market research. 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. As of January 11, 2018, no additional inquiries have been received as a result of the Sources Sought Notice.

(X) Other (Explain): In order to enhance competition and promote small business participation, the buyer completed a review of recent procurement history for these NSNs, researching the Abstracts in Record Management (RM) for recent spot buys. All of the purchases in the procurement history were under Micro purchase orders, as these all are Customer Directs orders that go directly to Naval Customers. The awards have been made either to the manufacturer Powerstar (0ZAP8), or dealers of theirs’ including: Kampi (7Z016), SC Aero (4XUX5) and other dealers. These dealers will be included in the Bidders List.

There are no previous J&A’s for these NSNs.

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

Cost or pricing data in accordance with (IAW) FAR 15.403-4 will not be required as the items are deemed to be commercial. The contracting officer hereby anticipates that price to the Government will be determined fair and reasonable after reviewing and evaluation of the contract price history, and the comparison of the pricing to commercially posted prices.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Market Research was conducted by the DLA Land and Maritime Sourcing Strategy Specialists (SSS) Branch ZAA in May 2017 and finished by the Contracting Officer in September 2017. Market Surveys, including a market research questionnaire and

SPE7LX-17-R-0088

spreadsheet, were sent to the approved source of supply: Powerstar (0ZAP8) and to dealers of Powerstar, including past awardees of the NSNs. As a result, three responses were received, Powerstar indicated that they would not be providing a proposal, but would prefer we go through their dealers.

Even though they did not want to provide a direct proposal, they did submit information on commerciality, . JGB(61125) indicated they could not provide a proposal on Powerstar items, while Kampi (7Z016) indicated they would be able to propose. Kampi indicated that they are a small Business dealer and would prefer a

A Sources Sought Notice was posted on FedBizOps (for 7 days) on September 20, 2017. Five different companies inquired about the project, but none returned the market surveys. The companies indicating interest in the project were as follows: Bayside Enterprises, LLC, Power Edge, Electrical Systems Management, LLC., Stationary Power Systems, and GC Electrical Solutions, LLC. These companies will be sent the solicitation when it opens, or included in the bidders list. The solicitation will be synopsized and posted on the DLA Internet Bid Board System (DIBBS) website for interested offerors.

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

A market survey was conducted on/during: August thru October 2017.

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

Types of information requested: The Market Survey incorporated a request for contractors 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 questions.

Summary of information received: See the paragraph above for market research results from Powerstar and Kampi.

Based on the Market Research received, this requirement will be solicited utilizing FAR Part 12 “Acquisition of Commercial Items” as a Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract with a 3-year BASE period. None of the NSNs fall under the First Destination Transportation (FDT) program, but all will be solicited as F.O.B. Origin because of the following: the directive dated May 2, 2016, the Navy eliminated the use of Consolidation Points and Intermodal Hubs for customer direct shipments. Supplies acquired for Navy ships are now shipped directly to wherever the ships are located.

Since a ship's location is unknown until time of delivery, customer direct requirements for Navy ships should only be solicited/awarded FOB Origin (see FAR 47.305-5). The Inspection/Acceptance will be Destination for the 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 NSNs will be solicited using FAR Part 12 “Acquisition of Commercial Items” and it may be necessary to conduct discussions with the offeror about their proposal. The Government will hold discussions as if they are determined necessary. The contracting officer has made the determination that the NSNs being solicited are commercial for the following reasons:

1. In the market survey, the potential offerors were asked if they considered the items to be commercial, and they provided a positive response.

2. Commercial pricing is available on Powerstar’s website. The items are available for commercial purchase.

3. The synopsis will be issued stating, “Based upon Market Research, the Government is using the policies contained in FAR Part 12, Acquisition of Commercial items, in its solicitation for the described supplies and services.

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 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 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 the Department of Defense (DoD) 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) (7Z016) Kampi, Bayside Enterprises, LLC, Power Edge, Electrical Systems Management, LLC., Stationary Power Systems, and GC Electrical Solutions, LLC. Not all CAGE codes were provided by interested parties, but a copy of the solicitation will be emailed to them when it has opened.

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

(X) The solicitation contains the DLAD Procurement Notes M06-Evaluation of Offers for Part Numbered Items and L04-Offers for Part Numbered Items ( ) VE Bailment Program

(X) Source Development Review ( ) Reverse Engineering ( ) Actions under the previous solicitation were accomplished during the term of the Long Term Contract: items have not been on a previous long-term contract

12. Attachments: No Attachments

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.

Carrie L Krafft Spayde Phone Date Contracting Officer

Approval/Certification

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

MARY E. COUTURE Phone 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

2-7568 2/27/18

KRAFFT

SPAYDE.CARRIE.L.1299372

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2018.02.27 09:11:22 -05'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.03.06 17:39:19 -05'00'