SPE7LX18R0069_-_redacted_J&A.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

LONG-TERM CONTRACT (LTC) PROJECT CLI 7254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

ORIGINAL

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

2. The action being approved is the acquisition of supplies on an Other than Full and Open competition basis.

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

• The scope of this solicitation and resulting contract(s) is to support the Global Tires

Program (GTP) and, if needed, the Tire Successor Initiative (TSI) and the Government supply of Code and Part Number items coded to Bridgestone Americas Tires (22337). This solicitation is being issued under the authority of 10 U.S.C. §2304(c)(l) and FAR 6.302-1 and contemplates award of contracts for items of supply that are available from only one or a limited number of responsible sources. This project will allow for the Government to pursue one or more long-term, Indefinite Quantity Contracts (IQC) for eight (8) National Stock Numbers (NSN), all with the nomenclature "Tire, Pneumatic, Vehicular".

• A contract resulting from this solicitation will provide supply support to the GTPfTSI Contractor pursuant to FAR Part 51, and may provide direct supply support to the Government, specifically those items sourced to Bridgestone (22337).

• The Federal Stock Group code for these NSNs is 26 (Tires and Tubes), which represents the commodity class of the item.

• The AMC/ AMSC code for these 8 NSNs is 3D. AMC of three (3) means items are acquired, for the second or subsequent time, directly from the actual manufacturer. AMSC of D means the data needed to acquire these items 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.

• The proposed action is for the solicitation and award of a three (3) year, Firm Fixed Price (FFP) long-term contract. The contract would consist of three (3) base years, with no options. The estimated contract values are below:

o Annual Demand Value {ADV):

o 3-YearValue (ADV* 3):

o Maximum Contract Value (ADV * 5):

o Minimum Contract Value (ADV* 0.01)

$ 1,209,034.53 $ 3,627,103.59 $ 6,045,172.65 $ 12,090.35

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

• 10 U.S.C. 2304(c){l) o (c) The head of an agency may use procedures other than competitive procedures onlywhen-o (1) The property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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LONG-TERM CONTRACT (L TC) PROJECT CLl 7254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

• The Government requires tires that are form, fit and functionally interchangeable with those currently used on the supported vehicles. These tires require engineering source approval by the design control activity in order to maintain the quality of the part.

• Such tires can only be purchased from the sole approved source, Bridgestone (22337).

• AMC 3. Means items are acquired, for the second or subsequent time, directly from the actual manufacturer.

• 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.

• Bridgestone is the only known source with the data or data rights necessary to manufacture these tires to meet the military customers' requirement and ensure form, fit and function interchange with the tires currently on the supported vehicles.

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

• A Sources Sought notice, with included a copy of the market survey attached, was posted on FedBizOpps from 09/01/17 through 09/29/17 and was also posted on the GTP web site.

During the same time frame, the market survey was e-mailed lo 31 suppliers, including known tire manufacturers & dealers, prior awardees for tire contracts, and suppliers who have submitted proposals for previous tire solicitations. The market survey included a listing of all 375 tire NSNs that are expected to be solicited, by tire program type, on multiple L TCs. This list included the 8 NSNs from Bridgestone.

• This acquisition will be solicited using Federal Acquisition Regulation (FAR) Part 12 procedures. The synopsis will be posted on FedBizOps on or about 04/02/18, and will run for a period of 30 days. The solicitation will be posted concurrently on the internet, via the DLA Internet Bid Board System (DIBBS).

• The Government will continue to conduct market research, to see 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 detennine whether to approve the alternate offer, the SAR package will be considered for future awards.

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

• This will be a long-term, Indefinite Quantity Contract (IQC). The time frame consists of a three-year base period, with no options. Contracts awarded from this solicitation will be Finn Fixed Price. Each year of the contract will be price out.

• As this is a commercial solicitation, Certified Cost or Pricing Data is not required. The price analysis of historical contracts, as well as current and future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast data is provided by the DLA Land and Maritime Pricing Support group, and provides

SOURCE SELECTION INFORMATION - SEE FAR 2.10 I AND 3.104

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LONG-TERM CONTRACT (LTC) PROJECT CL17254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

timely, accurate price & cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

8. Market Research/Efforts to Obtain Competition:

• Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for some portion of, or aU of, the tire NSNs.

o Researching/gathering information regarding commerciality of the items.

o Vendor size and business status information.

o Delivery estimates.

o Possibility for Economic Price Adjustment of the 2nd and yd years of a contract.

o Distributor/dealer involvement.

• Summary of market research:

o In addition to a copy of the market survey being made available with the·sources

Sought posting on FedBizOps and the GTP web site, the market survey was e mailed in September, 2017, to the suppliers listed below:

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.104

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LON~ TERM CONTRACT (L TC) PROJECT CLl 7254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

s b 2017 eotem er. , • to t e suoo11ers 1ste e ow: b r r db I Comnanv CAGE Business Size/Status Anthony Balser 5CAZ4 Small Dealer B and S Transport 1BS99 Small Dealer Brackett Aircraft 56833 Small MFG Bridgestone Arnerea - GCR Tire 073A9 Lame Dealer Bridgestone Arnereas Tire 22337 large MFG Camso USA Inc. 0YGF3 Small MFG CAP 360 6PTPO Small Dealer Carlisle Tire and Rubber Co 71496 ~eMFG Clark Eauiornent 1QK63 large MFG CNH Industrial Amrra LLC 10988 large MFG Colony Tire Corporation 3JME8 Small Dealer Continental Tire 73808 Larae MFG Critical Solutions lntematimal 1N5S7 large MFG Deval 11201 Small MFG Fast Global Solutioru;, Inc. 5T389 Small MFG Goodyear Tire and Rubber Co. - Air 04NP4 Large MFG Goodyear Tire and Rubber Co.- Ground 04NP3 Large MFG Hankook Tire Arnerea Com. 5FAD7 ~eMFG Hutchinson Industries, Inc. 62161 Large MFG Hvdraulics International Inc. 56529 Small MFG Kam,i Comoonents 72016 Small Dealer Michelin North America 0A1K8 large MFG Michelin North America 12195 large MFG Pimeer Industries, Inc. 66200 Small Dealer Ponm's Tire Service lTIZA large Dealer Simm Technoloeies 6VFM4 Small Dealer Southern Tire Mart 3RRT3 Small Dealer Specialtv Tires of America, Inc. 66798 Small MFG Titan Tire Com 08SN2 large MFG TW!: Technoloeies, Corp. 4TVG2 Large MFG Wheeler Brothers 55683 Small Dealer

Supplier responses to the key market survey questions are summarized in the chart below (also included as Attachment 1):

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.104

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LONG-TERM CONTRACT (L TC) PROJECT CL17254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

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Based upon the sources sought notice, responses to the market survey, and purchase history from the past 3 years, the following is a listing of the sources showing a probable interest in submitting a proposal in response to this sole source Bridgestone solicitation:

Business Com1;1an~ Name CAGE Business Size ~

Bridgestone Americas 073A9 Large Dealer

Colony Tire Corporation 7W3FS Small Dealer

Small

Jamison Transportation 7DPA8 Disadvantage Dealer

Pomp's Tire Service 1Tl24 Large Dealer

Southern Tire Mart 3RRT3 Small Dealer

• Information received regarding the commerciality of the item:

o Commerciality was investigated using several different techniques. Items on this solicitation are tires used on various land vehicles. While commercial tires may be manufactured to different specifications, there is no evidence that those specification differences are so substantial to render the military version unsuitable and unavailable for commercial purposes. The definition of Commercial, as found in FAR Subpart 2.101, states "Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purpose." Clearly, a tire used by the military is "of a type" as a tire used commercially. The difference may simply be the size or

SOURCE SELECTION INFORMATION - SEE FAR 2.10 I AND 3.104

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SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

perhaps a more stringent specification but nevertheless, these NSNs meet the definition of commercial.

In addition to independent research, the Contracting Officer conducted market research analysis VAIW FAR 12.1 by submitting a market survey to industry (tire manufacturers and distributors). Industry was asked whether each NSN constituted a commercial item, as defined in FAR 2.101. All of the vendors indicated, in their market survey responses, that all of products listed for this proposed solicitation are commercial. The manufacturers make both commercial and non-commercial tires, thus further solidifying the "of a type" application herein. Accordingly, the acquisition specialist is able to conclude that the tires subject to this requirement fall under the FAR commerciality definition "of a type" language, referenced above. Therefore, this acquisition will proceed in accordance with FAR Part 12- Acquisition of Commercial Items procedures.

9. Additional facts supporting other than full and open competition are:

• Based upon the technical certification on file in DLA Land and Maritime-YEP 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.

• The NSNs included on this solicitation were reviewed by the Strategic Acquisition Programs Directorate (SAPD) Product Specialist during the project development phase.

No additional sources were identified during that review.

• 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.

SOURCE SELECTION INFORMATION-SEE FAR2.101 AND 3.104

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LONG-TERM CONTRACT (LTC) PROJECTCL17254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

10. Sources indicating an interest in this acquisition are:

• Bridgestone Americas/OBA GCR Tires & Service; CAGE 073A9

• Colony Tire Corporation; CAGE 7W3F5

• Jamison Transportation; CAGE 7DPA8

• Pomp's Tire Service; CAGE 1TlZ4

• Southern Tire Mart; CAGE 3RRT3

11. 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, this item is subject to the following methods oflocating additional sources:

• The Contract History in E-Procurement consists only of delivery orders to Science Applications International Corporation (SAIC), awarded against long-term contract SPE7Ll-16-D-0006 and SPE7Ll-14-D-0005. Contract SPE7Ll-14-D-0005 was issued due to depletion of DO numbers for contract SPM7LX-11-D-O 157 ( original). Contract SPE7Ll-16-D-0006 was issued for administrative purposes to facilitate continued contract performance due to system errors with previous contract SPE7Ll-14-D-0005.

This administrative contract was issued in accordance with FAR 4.1601 and DFARS 204.1601.

The NSNs on this acquisition were last purchased on one of the following long-term contracts, and against the noted solicitation:

Contract Number/ Solicitation Number

SPE7MI-15-D-0017/ SPE7LX14R0181

SPE7MX-16-D-5010/ SPE7MX16X0013

The Justification and Approval (J&A) of each contract is attached. The J&A of SPE7Ml l 5-D-0017 shows the Government posted a Request for Information (RFI) and a market survey on FedBizOps from December 16, 2013 to January 10, 2014. Additionally, a market survey was sent to thirtyfour (34) manufacturers and dealers, from which seven (7) replied.

No sources expressed interest in becoming an approved source for any of the eight tires in this procurement. Consequently, the solicitation was unrestricted.

Contract SPE7MX-16-D-5010 is only for item 2610-01-579-5930. The J&A ofSPE7MX- 16-D-5010 used the same RFI and market research from the previous contract. as it was part of the same initiative. No sources expressed interest in becoming an approved source for any of the eight tires in this procurement. Consequently, the solicitation was unrestricted.

• This solicitation contains the DLAD Procurement Note entitled Offers for Part Numbered Items (L04).

SOURCE SELECTION INFORMATION- SEE FAR 2.101 AND 3.104

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SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

• A sources sought notice on FedBizOps was run from 09/01/17 to 09/29/17, with no responses received.

• A synopsis will be posted concurrently with the solicitation on FedBizOps on or around 04/02/2018 for 15 days.

• The solicitation will be posted on the DLA Internet Bid Board System (DIBBS) for 30 days, and will run concurrently with the synopsis.

• At this time, the requirement/guidance in DF ARS PGI 206.304 has been fulfilled.

Attachments:

1. Tire L TC Market Survey Summary

2. J&A for Solicitation SPE7LX14R0181

3. J&A for Solicitation SPE7MX16X0013

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.

COTTON.KENNETH. Dlgita'ly signed by

COTTON.KENNETH.A.1230151268 614 692 3218 04/18/2018 A.1230151268 Date: 2018.04.18 11:49:23-04'00' - -

Contracting Officer

Kenneth A. Cotton Typed name of Contracting Officer

Phone

SOURCE SELECTION INFORMATION-SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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Date

LONG-TERM CONTRACT (LTC) PROJECT CLI 7254005

SOLICITATION SPE7LX-18-R-0069

MARCH 23, 2018

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

COUTURE.MARY.E.1 Digita' ly signed by

COUTURE.MARY,E.1230253613

230253613 Date: 2018.04.20 17:10:53 -04'00'

Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 ( X) $700,000 to $13,500,000

Phone

Contracting Officer Competition Advocate

SOURCE SELECTION INFORMATION - SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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Date