SPE7LX-17-R-0098_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-17-R-0098

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 15, Indefinite Quantity Contract (IQC) for DLA-managed consumables identified in Section B of the solicitation and contains six National Stock Numbers (NSNs). This solicitation will be issued as a 100% Small Business Set-Aside utilizing the contract-specific (individual) Waiver to the Non-Manufacturing Rule (NMR).

DLA Land and Maritime intends to enter into a Fixed-Price with Annual Price Adjustments, Indefinite Quantity Contract (IQC) issued under FAR Part 15 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

*If too numerous, attach list of NSNs and AMSC codes.

CLIN NSN Item Description Annual Demand Quantity

Acquisition Method Code

Acquisition Method Suffix

Code

0001 2520014802396 PROPELLER SHAFT WIT 95 1 Q

0002 2510015334674 WINDOW,ASSEMBLY,LH 28 1 P

0003 2540015334742 WINDSHIELD ASSEMBLY 56 1 P

0004 2510015340854 PLATE,REAR BOTTOM,A 6 1 R

0005 2510015357373 WINDSHIELD,FRAME 3 1 P

0006 2510015357756 PLATE,FIREWALL 12 1 P

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.

5. If restricted to the only source(s) of supply, include source(s) and Commercial and Government Entity (CAGE) code: BAE Systems Survivability Systems (CAGE 6W728), GKN Driveline North America, DLA Land & Maritime Justification for Other Than Full & Open Competition

(AUG 2016)

Inc (CAGE 62826), Plasan NA, Inc (CAGE 535V1) and Oshkosh Defense, LLC (CAGE 75Q65) are the only approved sources for the items being solicited.

See Attachment 2, Source Listing for the complete detailed 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 sources that own the data needed to manufacture these items.

a. CLINs 0002, 0003, 0005, and 0006 contain an AMSC Code P, meaning rights to data is not owned by the Government and cannot be purchased, developed or otherwise obtained, and for these items, the approved sources listed on Attachment 2, are the only sources that own or possess the data.

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

(AUG 2016)

b. CLIN 0001 contains an AMSC Code Q, meaning the Government does not have the complete technical data, and for this item, the approved sources listed on Attachment 2, are the only sources that own or possess the data.

c. CLIN 0004 contains an AMSC Code R, meaning the Government does not own the data rights needed to purchase this item from another source, and for this item, the approved sources listed on Attachment 2, are the only sources 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 8/7/2017.

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

(X) Dealers of the manufacturers 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 August 3, 2016. An updated Sources Sought Notice was prepared and posted on FedBizOps on December 19, 2016 with a response date of January 6, 2017. The Minstral, Inc, acting for Oran Safety Glass, Inc (CAGE 4M0Z0) as a small business dealer for Plasan NA (CAGE 535V1) expressed interest in this procurement on January 30, 2017.

Oran Safety Glass, Inc (CAGE 4M0Z0) will be added to the bidder list, when the solicitation is issued. As of July 17, 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 advanced of the project being assigned to a Strategic Acquisition Procurement Directorate (SAPD) buyer to provide recommendation concerning small business participation for the 86 MTVR - NSNs under CL16214003 in August of 2016. No response was received 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 for all NSNs with history in Record Management (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-0098. As a result, one potential small business dealer was discovered. Below is the additional small business dealer that was found:

Records Management Research Results CAGE Company Name Business Type Previous Interest

61125 JGB Enterprises, Inc Small Business Dealer CLIN 0004 & CLIN 0006 -offering (535V1)

During the extensive RM review of the entire 158 NSN - MTVR population, seven additional small business dealers were found for several of the large business manufacturing sources.

Below are the additional potential small business dealers found:

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

(AUG 2016)

Potential Dealers/Distributors for OEMs on Current Project found in Records Management CAGE Company Name Business Type Previous OEM Interest 6YUL4 Jet Link, Inc Veteran Owned Small Business (VOSB) Dealer Offered on (75Q65) 0NJT4 Ruta Supplies, Inc Small Business Dealer Offered on (75Q65) 46PU2 WB Parts, Inc Small Business Dealer Offered on (535V1) 7N929 Pride Electronics, Inc Small Business Dealer Offered on (535V1) 0VW10 AM-MAC Incorporated Small Business Dealer Offered for (75Q65) 47176 Minstral, Inc Small Business Dealer Offered on (535V1) 61125 JGB Enterprises, Inc Small Business Dealer Offered on (535V1) & (75Q65)

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

Cost and pricing data is required as the contract value exceeds the $750,000 Truth in Negotiations Act (TINA) threshold. However, there is a reasonable expectation that two or more responsible offerors, competing independently, will submit priced offers in response to the solicitation requirements. If this occurs, cost and pricing data is exempt based on FAR 15.403-1(c)(1)(ii). Additionally, proposed prices will be reviewed for fairness and reasonableness using price analysis based on comparison of the offer received with the past buy history and movement of the Producer Price Index. If needed, other than cost and pricing data may be requested for pricing support. Based upon the above techniques, the contracting officer hereby anticipates that costs to the Government will be determined fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Describe the market research (MR) conducted and the results. This initiative will be solicited as a 100% Small Business Set-Aside (SBSA) using the contract-specific (individual) Waiver to the Non- Manufacturing Rule. In order to increase the competitive base, and in an effort to identify potential small business offers for SPE7LX-17-R-0098, the buyer conducted extensive internal Market Research, as detailed above in Paragraph 6, Section titled, “Other.”

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 conducted formal Market Research, which included a request for completion of a detailed Market Survey questionnaire and spreadsheet along with a request for UNREDACTED sale/invoices and a Contractor’s Commercial Catalog if available/applicable in support of a potential “commercial item determination,” as detailed below.

Based on the results of the Sources Sought Notices, the internal Market Research completed by the buyer and external Market Surveys issued/received, the approved large business manufacturing sources identified in attachment 2 remain the sole manufacturing sources capable of supplying these items. All small business dealers discovered by the buyer during the extensive Market Research process will be included on the bidder list as potential sources. Although the large OEMs will not be included directly on the bidders list when the solicitation is issued, they will have the opportunity to provide an offer for their specific code and part number utilizing their authorized dealers/distributors base.

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

A market survey was conducted on/during: August 3, 2016 through July 5, 2017

Total number of vendors contacted: ten

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

(AUG 2016)

Names of vendors contacted and responding: Detailed Market Surveys were issued to a combined total of ten different contractors (manufacturers /dealers) as follows:

Oshkosh Defense, LLC (CAGE 75Q65)(multiple surveys issued for different sets of NSNs) BAE Systems Land Armaments L.P. (CAGE 076M6) BAE Systems Tactical Vehicle (CAGE 0FW39) JGB Enterprises, Inc (CAGE 61125) Ruta Supplies, Inc (CAGE 0NJT4) Plasan, NA (CAGE 535V1)(multiple surveys issued for different sets of NSNs) Oshkosh Corporation (CAGE 45152) BAE Systems Survivability Systems (CAGE 6W728) (email returned for invalid address) GKN Driveline (CAGE 62826) Driveline (CAGE 0GE52)

Of the ten different contractors who received Market Surveys, six positive Market Surveys (three were provided by the same contractor(s) for different sets of NSNs) and two negative were received. A total of three 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: A total of three different contractors responded favorably to the Market Research, indicating a desire to propose on this requirement. See attachment 3 for the detailed Market Research Chronology received.

Information received regarding the commerciality of the item(s): The contracting officer has made the determination that the NSN(s) being solicited are not commercial for the following reasons:

1. In the market survey, the potential offerors were asked if they considered the items to be commercial, and most provided a negative response. While Oshkosh Defense, LLC, stated the items were commercial, NO actual documents supporting a Commercial Item Determination were provided by Oshkosh Defense, LLC for the NSNs.

2. A technical/quality review was completed for all NSNs, and no internal comments state the items are commercial.

3. Commercial invoices, price lists, and brochures, are not available. These items are for military specific use only.

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

(AUG 2016)

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)

Oshkosh Defense, LLC (CAGE 75Q65) (Large OEM will not be solicited directly due to 100% SBSA) Ruta Supplies, Inc (CAGE 0NJT4) Plasan, NA (CAGE 535V1) (Large OEM will not be solicited directly due to 100% SBSA)

All large OEMs will not be included directly on the bidders list when the solicitation is issued, however, will have the opportunity to provide an offer for their specific code and part number utilizing their authorized dealers/distributors base.

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: 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.

( ) 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. The majority of 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, with only one NSN 2540-01-533-4742 with a contract award value exceeding the SAT threshold. The buyer was unable to locate any 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 historical J & A’s could be located.

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

(AUG 2016)

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: 2017.08.03 06:49:42 -04'00'

COUTURE.MARY.E.

1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.08.09 16:44:12 -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 SPE7LX17R0098 - 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)

Z NORM 1 Q 2 DAA EA 1 35 110 DOC9 333613 750 110

Z NORM 1 P 2 DAA EA 1 75 120 DOC9 332999 750 120

Z NORM 1 P 2 DAA EA 1 74 108 DOC9 336390 1000 108

Z NORM 1 R 2 DAA EA 1 34 121 DOC9 336390 1000 121

Z NORM 1 P 2 DAA EA 1 90 120 DOC9 332999 750 85

Z NORM 1 P 2 DAA EA 1 34 120 DOC9 332999 750 120

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

Source Listing 3

For Official Use Only Source Selection Information See FAR 2.101 and 3.104 SPE7LX17R0098 - J and A Attachment # 2

Description Key:

Acquisition Method Code (AMC) 1 - Suitable for competitive acquisition for the second or subsequent time

Acquisition Method Code Suffix (AMSC)

P - Rights to data is not owned by Government and cannot be purchased, developed or otherwise obtained

CLIN NSN FSC NIIN Supports Type of Vehicle Item Description Contractor CAGE Part Number Acquisition

Method Code

(AMC)

Acquisition Method Suffix Code (AMSC)

DATE

Cleared all

TECH

ISSUES

Reference Number Category

Code (RNCC)

Reference Number

Variation Code

(RNVC)

North America Industry

Classification System

(NAICS)

Small Business Size (Per

NAICS)

0001 2520014802396 2520 014802396 No WSDC Data PROPELLER SHAFT

WIT

OSHKOSH DEFENSE,

LLC 75Q65 3173479 1 Q 10/5/2016 3 2 333613 750

2520014802396 2520 014802396 PROPELLER SHAFT

WIT

GKN DRIVELINE NORTH

AMERICA INC. 62826 299 0156 1 Q 5 2 333613 750

0002 2510015334674 2510 015334674 No WSDC Data WINDOW,ASSEMBLY,L H

OSHKOSH DEFENSE,

LLC 75Q65 9KK674 1 P 10/20/2016 3 2 332999 750

2510015334674 2510 015334674 WINDOW,ASSEMBLY,L

H

BAE SYSTEMS

SURVIVABILITY

SYSTEMS

6W728 0259040021-00LH 1 P 5 2 332999 750

0003 2540015334742 2540 015334742 No WSDC Data WINDSHIELD

ASSEMBLY

OSHKOSH DEFENSE,

LLC 75Q65 18KP334 1 P 1/13/2017 3 2 336390 1000

2540015334742 2540 015334742 WINDSHIELD

ASSEMBLY

PLASAN NORTH

AMERICA, INC. 535V1 0259020050-00 1 P 5 2 336390 1000

0004 2510015340854 2510 015340854

TRUCK, ARMORED, DUMP

(TAMCN:D00)

TRUCK, CARGO

TRUCK TRACTOR, ARM

TRUCK, ARMORED, XLWB

TRUCK, WRECKER, AR

TRUCK, DUMP, 7 TON WI

TRUCK, RTAA, CARGO, 7T

PLATE,REAR

BOTTOM,A

OSHKOSH DEFENSE,

LLC 75Q65 1KP223 1 R 9/16/2016 3 2 336390 1000

2510015340854 2510 015340854 PLATE,REAR

BOTTOM,A

PLASAN NORTH

AMERICA, INC. 535V1 0259060017-00 1 R 5 2 336390 1000

0005 2510015357373 2510 015357373 No WSDC Data WINDSHIELD,FRAME OSHKOSH DEFENSE, LLC 75Q65 2KP363 1 P 1/13/2017 3 2 332999 750

2510015357373 2510 015357373 WINDSHIELD,FRAME PLASAN NORTH

AMERICA, INC. 535V1 0259022206-00 1 P 5 2 332999 750

0006 2510015357756 2510 015357756 No WSDC Data PLATE,FIREWALL OSHKOSH DEFENSE, LLC 75Q65 1KP186 1 P 1/13/2017 3 2 332999 750

2510015357756 2510 015357756 PLATE,FIREWALL PLASAN NORTH

AMERICA, INC. 535V1 0259020839-00 1 P 5 2 332999 750

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

R - Government does not own the data rights needed to purchase this part from another source and it has been determined not to be economically feasible to procure the data or rights to the data