SPE7LX17R0113_-_Redacted.pdf

SPE7LX17R0113

For Official Use Only See FAR 2.101 & 3.104 Page 1

MEMORANDUM FOR RECORD

SUBJECT: Justification for Other than Full and Open Competition for acquisition of six NSNs under authority of 10 U.S.C. 2304(c) (1)

SOLICITATION: SPE7LX17R0113

1. Summary/introduction:

a. Field activity/agency: The purchasing activity for this acquisition is the Defense Logistics Agency (DLA), Land and Maritime.

b. Items being purchased: This requirement is for the acquisition of six NSNs that will be used on the Mine Resistant Ambush Protected (MRAP) Vehicles. The source and part number information is listed below and includes the Reference Number Category Code (RNCC), a code that designates the relationship of the part number to an item of supply, as well as the Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying, or is for information only. The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC code describes to the contracting officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC code provides the contracting officer and other Government personnel with engineering, manufacturing, and technical information.

NSN PART NUMBER RNCC RNVC AMC AMSC CAGE NAME

2540015981395 6001-100-001 3 2 3 C 1SC69 Ibis Tek, Inc.

2541015801324 2116-400-001 3 2 3 D 1SC69 Ibis Tek, Inc.

6150015619730 006-0026-002 3 2 3 C 1SC69 Ibis Tek, Inc.

6220015619706 2202-900-003 3 2 3 D 1SC69 Ibis Tek, Inc.

6220015883002 2210-200-018971 3 2 3 C 1SC69 Ibis Tek, Inc.

6220015883044 2502-900-001 3 2 3 D 1SC69 Ibis Tek, Inc.

RNCC

Code:

RNCC 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.

RNVC

Code:

RNVC 2 - A design control reference or other reference number that is an item-identifying number for an item of production, or is either 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.

AMC Code AMC 3 – Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC Code

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.

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.

c. Estimated value and contract duration: The proposed action is for the solicitation and award of a

For Official Use Only See FAR 2.101 & 3.104 Page 2 five-year, Firm-Fixed-Price, Indefinite Quantity Contract (IQC) type contract. The five-year period is inclusive of a three-year base period and two one-year option periods. The contract values are listed below.

National Stock Numbers on

Solicitation (NSN) Estimated Annual

Demand Value (ADV) Contract Maximum

(ADV x 6.5 ) Contract Minimum

(ADV x 1% )

2. Description of agency’s need (10 U.S.C. 2304(f)(3)(A))

a. Origin of the procurement: The proposed solicitation will provide parts for Mine Resistant

Ambush Protected (MRAP) Vehicles. The annual demand is listed below.

NSN Item Name ADQ*

2540015981395 COVER,FITTED,VEHICU 128

2541015801324 ASSEMBLY,COVER 458

6150015619730 WIRING HARNESS 14

6220015619706 CONTROL,ELECTRIC LI 17

6220015883002 SEARCHLIGHT 23

6220015883044 LIGHT,UTILITY,VEHIC 69

* ADQ = The ADQ above is calculated by taking the forecasted monthly ate times 12, for a forecasted

ADQ.

** ADV = The ADV above is calculated by taking the ADQ listed times the standard price for the forecasted ADV.

b. Description of the supplies needed: The six NSNs being procured will be used on Mine Resistant Ambush Protected (MRAP) Vehicles. Each of the NSNs being procured have one approved source, Ibis Tek, Inc. (CAGE 1SC69). A description of the Federal Supply Group’s (FSG) and the Federal Supply Class’s (FSC) are listed below. The FSG is represented by the first two digits of the NSN and identifies, by title, the commodity area covered by classes within the group. The FSC is represented by the first four digits of the NSN and the code covers a relatively homogeneous area of commodities, in respect to their physical or performance characteristics, or in the respect that the items included therein are such as are usually requisitioned or issued together, or constitute a related grouping for supply management purposes.

FSG 25: Vehicle Equipment Components FSG 61: Electric Wire, and Power and Distribution Equipment

FSG 62: Lighting Fixtures and Lamps FSC 2540: Vehicular Furniture and Accessories Includes Automobile Seat Covers; Shock Absorbers; Bumpers; Windshield Wipers; Bumper Guards;

Mirrors, Rear View and Side View; Vehicle Heaters.

FSC 2541: Weapons Systems Specific Vehicular Accessories Includes:

Accessory Kits and Boxes, Parts Kits, and individual components used in the repair and/or modification of Weapons System type Vehicles such as

Tanks, Personnel Carriers, Mobile Howitzers, and the like.

FSC 6150: Miscellaneous Electric Power and Distribution Equipment

Includes Appliance and Extension Cords; Electric Power and Distribution Cable with Attachments, Multi-application; Common Components of Electrical

Rotating Equipment, such as End Bells and Frames.

FSC 6220: Electric Vehicular Lights and Fixtures Includes Automotive, Marine, Railroad, and Aircraft Lights and Fixtures.

c. Specific need of use for the items: As previously stated, the six NSNs being procured will be used on the MRAP Vehicles. A description of the MRAP is included below.

For Official Use Only See FAR 2.101 & 3.104 Page 3

The Mine Resistant Ambush Protected Vehicles The Mine Resistant Ambush Protected (MRAP) family of vehicles provides Soldiers with highly survivable multi-mission platforms capable of mitigating improvised explosive devices, rocket-propelled grenades, explosively formed penetrators, underbody mines and small arms fire threats which produce the greatest number of casualties in Overseas Contingency Operations.

Three variants comprise the Army MRAP enduring fleet: Mine Resistant Ambush Protected All- Terrain Vehicle (M-ATV), MaxxPro Dash with Independent Suspension System, and MaxxPro Long-Wheel-Based Ambulance. This versatile family of vehicles performs the mission roles of Armored Personnel Carrier, Weapons Carrier, Convoy Protection Platform, Key Leader Vehicle, Command Post and Armored Ambulance.

http://asc.army.mil/web/portfolio-item/cs-css-mine-resistant-ambush-protected-mrap-vehicle-mrap

3. Statutory Requirement - (10 U.S.C. 2304(f)(3)(B)):

The statutory authority permitting other than full and open competition is 10 U.S.C 2304(c)(1), the property or services needed by the agency are available from only a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the supported weapon systems. The only manufacturing source approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture these items is Ibis Tek, Inc. (CAGE 1SC69). The Government does not currently possess detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of these parts.

4. Price/cost considerations (10 U.S.C. 2304(f)(3)(C))

a. Relevant pricing issues: At the time of this document, there is no exception to the requirement to obtain certified cost or pricing data as outlined in FAR 15.403-1; therefore, the solicitation will require the submission of certified cost or pricing data for evaluation by the Contracting Officer.

(In the event offers are obtained from at least two sources, cost and pricing clauses would be deleted from the solicitation.)

b. Basis for determining that the anticipated price/cost will be fair and reasonable: The solicitation will require the submission of certified cost or pricing data for evaluation by the Contracting Officer in accordance with FAR 15.403-4. Additionally; a price analysis will be performed by comparing proposed prices to historical prices IAW FAR 15.404-1(b) (2) (ii). (In the event offers are obtained from at least two of the approved sources, competition would be the basis for determining the price/cost fair and reasonable.)

c. Length of contract, quantity, and other contract particulars bearing on the price/cost: As previously mentioned, this is a five-year, Firm-Fixed-Price, Indefinite Quantity type contract. The five-year period is inclusive of a three-year base period and two 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.

d. The Contracting Officer determines that the anticipated cost to the Government will be fair and reasonable.

5. Market research/efforts to obtain competition (10 U.S.C. 2304(f)(3)(D)&(E)

a. DLA Land and Maritime conducted various forms of market research including the publishing of a formal sources sought notice and market survey to the Government Point of Entry, www.fbo.gov. In addition to the publishing of a sources sought notice, the Contract Specialist also researched the

For Official Use Only See FAR 2.101 & 3.104 Page 4 procurement history and approved source of supply for each NSN on the proposed solicitation. The Strategic Sourcing Specialist and the Contract Specialist emailed the approved source of supply and potential interested parties, requesting market survey information. Furthermore, the contract specialist researched Reference Number Category Code (RNCC), the Reference Number Variation Code (RNVC), the Acquisition Method Code (AMC) and the Acquisition Method Suffix Code (AMSC) for each item on the proposed solicitation. The results of the market research are listed below.

Sources Sought Notice:

A sources sought notice was posted to the Government-wide Point of Entry (GPE) on 8/28/17 with a response date of 9/5/17. No responses were received on this notice from any additional, interested manufacturing sources. (The original sources sought notice was posted 9/12/16, with a response date of 9/23/16. No responses were received. This notice was posted by the Strategic Sourcing Specialist.) See Attachment 1.

Procurement History and Approved Sources:

The contract specialist researched the procurement history and the approved source of supply for the NSNs on the proposed solicitation; the procurement history indicates that only the approved source of supply, Ibis Tek, Inc. (CAGE 1SC69) has provided these items. The Strategic Sourcing Specialist contacted three of the sources listed below, Ibis Tek, Inc., Brighton Cromwell, and Oran Safety Glass in August 2016; only Ibis Tek responded with a completed market survey. The Contract Specialist contacted Ibis Tek, Inc., Brighton Cromwell, and Howco Distributing, in August, September, and November 2017, emailing market surveys and requesting updated information. A summary of the most recent responses received are listed below and a recap of the market research conducted by the Strategic Sourcing Specialist and the Contract Specialist is included as an attachment to this document. (See Attachment 2.)

Ibis Tek, Inc. (CAGE 1SC69): On the market survey returned in November 2017, Ibis Tek, Inc.

stated they were a Small Business manufacturer and that they were interested in an LTC for the subject NSNs.

Ibis Tek, Inc. stated on the most recent market survey that two of the items were commercial (6220015883002, 6220015883044); the remaining four NSNs were non-commercial.

No response was ever received from Ibis Tek concerning their claim of commerciality on the two NSNs. An internet search, including GSA Advantage, was conducted by the contract specialist, Mary Hansman, with no results found. The Commercial Off-The-Shelf block in the master file is unmarked for each of the NSNs on the subject procurement. Product Specialist, Jeff Schmidt confirmed during a technical review of each NSN in September 2017 that all six NSNs had “No commercial application . . . they are military only items.” As these items do not meet the definition of a commercial item, per FAR 2.101, it is determined to be non-commercial. The Contracting Officer’s signature on this document indicates concurrence with this decision.)

Brighton Cromwell LLC (CAGE 3NNX8): A market survey was sent on 8/25/16; no response was received. A market survey was sent on 8/28/17; no response was received.

For Official Use Only See FAR 2.101 & 3.104 Page 5

Howco Distributing Co. (CAGE 5E074): A market survey was sent to Howco on 8/28/17; no response was received. Howco had been an offeror on a prior requirement for one of the NSNs in February 2017.

Oran Safety Glass, Inc. (CAGE 4M0Z0): A market survey was sent on 8/25/16. No response was received.

Market Research Conclusion:

Based on the information supplied by Ibis Tek, Inc, and presented in the above market research section and in the market research attachment, Ibis Tek, Inc. has committed to submitting a proposal for the subject requirement when solicited. In an effort to increase competition, the bidders list will include Ibis Tek, Inc. and the other three companies listed above (CAGE codes 3NNX8, 5E074, 4M0Z0), who did not state they would not submit an offer. (See Attachment 2).

b. Synopsis, and other efforts made to publicize the requirement and generate competition:

In accordance with FAR 5.204 and 5.203(a), a pre-solicitation notice will be published to the Government Point of Entry at least 15 days before issuance of the solicitation. The Contracting Officer will allow at least a 30-day response time for receipt of proposals from the date of solicitation publication.

6. Actions Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(f) (3) (F)).

The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include a clause in this solicitation that provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

The technical and requirements personnel have reviewed and certified as accurate and complete all necessary data to support their recommendation for other than full and open competition. (Product Specialist Jeff Schmidt, certified the technical information for each NSN on 9/18/17, 9/19/17, and 9/20/17.)

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.

In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, these items are subject to the following methods of locating additional sources:

Per PGI 206.304, the requirement states that “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.” A review of the contract history revealed the J&A for LTC contract SPM7LX12D0090, which included NSNs 2541015801324 and 2540015981395 (an add-on NSN). The J&A for SPM7LX12D0090 stated the acquisition would be synopsized (Synopsis dated 8/1/11) with the solicitation opening on 9/14/11 and closing on 10/19/11 (after extension). The J&A stated the market research including contacting the OEM and dealers, and that the manufacturer dealers would be solicited (see Attachment 3). An addition LTC contract was researched, SPM7LX13D9005, which included NSNS 6220015619706 and 6150015619730. The J & A (see Attachment 4) for the contract stated that the planned actions to remove any barriers to competition were completed and included market research involving

For Official Use Only See FAR 2.101 & 3.104 Page 6

OEM Ibis Tek. The solicitation SPM7LX10R0107 was synopsized on FedBizOps for 15 days during March 2011 and then the solicitation posted to DIBBS for 30+ days. The contract history for the remaining two NSNs, 6220015883044 and 6220015883001 was reviewed and included small and SEPA buys, which did not require a J&A. Based on this information from the previous J & A’s, it is determined that the planned actions to remove any barriers to competition were completed. All six NSNs have AMC/AMSC of either 3C or 3D. The AMC/AMSC of 3C means that “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.” The AMC/AMSC of 3D means “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.” At this time, the requirement/guidance in PGI 206.304 has been fulfilled.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

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.

CARRIE KRAFFT SPAYDE Date Contracting Officer

Approval / Certification

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

MARY E. COUTURE Date Competition Advocate

03/01/18

KRAFFT

SPAYDE.CARRIE.L.129937

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2018.03.01 09:40:11 -05'00'

COUTURE.MARY.E.

1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.03.15 16:36:45 -04'00'

For Official Use Only See FAR 2.101 & 3.104 Page 7

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

(X) $700,000 - $13,500,000 Competition Advocate ( ) $13,500,000 - $93,000,000 Head of the Contracting Activity (HCA) ( ) over $93,000,000 Senior Procurement Executive (AQ)

Attachments:

1. Sources Sought Notice

2. Market Research Summary

3. Previous J&A For Other Than Full and Open Competition - SPM7LX12D0090

4. Previous J&A For Other Than Full and Open Competition - SPM7LX13D9005