SPE7LX18R0104_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX18R0104

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) Source Selection Sensitive-FAR 2.1.1 and 3.104

ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

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

2. The action is for the approval of the acquisition of NSN 3020-01-491-2671 based on other than full and open competition.

3. A description of the subject item that meets the using activity's requirements is described below.

This solicitation is for the subject NSN with a Producer Price Index of - “WPIP11” in support of sustaining the item referenced below.

Description National Stock Numbers (NSN) Pulley, Groove 3020-01-491-2671

A pulley with one or more grooved faces or rims of the same diameter.

Weapon System:

Description

WPN SYS ID WPN SYS SVC WEAPON SYSTEM

0Q M Truck, Utility: Expanded Capacity Armt Carrier 14 F Cargo System, 463L 16 M Truck, Utility (Tamcn: D00227K) 80 A Truck, Vehicle System, 1 1/4-TON (Hmmwv)

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) Source Selection Sensitive-FAR 2.1.1 and 3.104

The proposed action is for the solicitation and award of a long-term firm fixed price contract. The award will include a three-year base with two one-year options. The estimated contract values are below:

Estimated Value:

Estimated Base Value: (ADQ-1,786 each) x Unit Estimated Base Value: Three-year Base (3 X Estimated Total Value: (Base + Options) (5 x

The Federal Stock Group code for this NSN is 3020 (Pulley), which represents the commodity class of the item.

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.

The Government requires spare parts that are form, fit, and functionally interchangeable with those currently used on the supported weapon systems. The only manufacturing source approved by the design control activity, with the comprehensive knowledge and expertise needed to manufacture these items is AM General Incorporated.

Review of previously approved Long Term Contract Justification and Approval document occurred concerning solicitation SPE7L4-16-R-0228.

5. The subject item is restricted to AM General LLC (CAGE: 34623) and Litens Automotive (CAGE:

L8732). The authority for the restriction of competition is FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements qualifications”. These contractors have developed the subject Pulley with unique technologies and capabilities. This meets the requirement of FAR 6.303-2(b) (5), unique qualifications or the nature of the acquisition requires use of the authority cited. Concerning Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) code 1B.

AM General LLC and Litens Automotive are the only companies known to possess the technical data and/or rights required to manufacturer this NSN. Additionally, a sources sought notice was posted on March 2, 2018 for seven days.

NSN AMC AMSC NOUN

North American Industry

Classification

(NAIC)

3020-01-491-2671 1 B Pulley 333612

The use of the authority cited is based on:

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

o (c) The head of an agency may use procedures other than competitive procedures only when – o 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.

The following is the AMC/ AMSC descriptions code:

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) Source Selection Sensitive-FAR 2.1.1 and 3.104

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

AMSC B: This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD- 100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained.

The Product Specialist ( ) validated the AMC/AMSC on February 20, 2018.

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

The acquisition will be synopsized on or about May 28, 2018. A solicitation will be issued in conjunction with the synopsis since the requirements are commercial. The solicitation will remain open for thirty days.

Sources Sought Posted (See Section 8 for more information concerning Sources Sought).

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

This will be a five (5) year, firm fixed price, Requirements Contract. The five-year period is inclusive of a three (3) year base period, and two (2) separately priced one (1) year option periods. Based on the results of market research, adequate price competition will not exist at the time of offer evaluation. It is anticipated that certified cost or pricing data IAW FAR 15.403-4 will not be required. This requirement is over $700,000; however, this item is commercial as defined by FAR 2.101. Price analysis will occur comparing the offer(s) received with past acquisition history, movement of the producer price index, and comparisons to similar items. Based upon the above techniques to be applied, the Contracting Officer anticipates costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

In an effort to obtain competition and satisfy FAR 10.001, the solicitation will be synopsized and a copy will be furnished to any vendor expressing interest. 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), and will be solicited when practicable. A technical review was completed to ensure the items on this initiative are restricted to the approved source. A Sources Sought notice was posted on Federal Business Opportunities (FedBizOps) March 2, 2018.

Supreme Gear Company (CAGE 1J035) requested information concerning becoming a qualified source to manufacture the Pulley. There were no other responses to the notice. The main purpose of posting a Sources Sought notice is to provide an opportunity to other potential sources to manufacture the subject NSN in order to promote competition. All interested parties will be added to the source list to be solicited.

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

A market survey occurred on 3/2/2018.

Total number of contractors contacted: 3 Names of vendors contacted and responding: Contractors Contacted: AM General LLC (Cage 3D6E9), DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) Source Selection Sensitive-FAR 2.1.1 and 3.104

Litens Automotive (Cage L8732).

Vendors that responded: Equs Logistics, LLC DBA Altum Aerospace (CAGE 5URY2)

Litens Automotive stated by email that they would not be interested in submitting a proposal. AM General LLC provided limited information in response to the questionnaire and stated they would be interested in submitting a proposal.

Vendor Eques Logistics stated they are not interested in providing a proposal.

Techniques used to conduct survey: Market Surveys sent via email, phone calls, internet research.

Types of information requested: The market survey sought information on contractors’ capabilities, vendor size and business status information, distributor involvement, researching/information gathering on commerciality of the items, delivery information, interest in Economic Price Adjustments (EPA), Base year and option years; optimal lengths, possible price/cost advantages, and interest in a multi-year contract and the duration of such a contract.

Summary of information received:

AM General LLC LLC (CAGE 3D6E9):

Large Business Manufacturer States items are commercial

Litens Automotive (CAGE L8732):

Contractor did not respond to the market survey Contractor stated in 2015 market survey the item is commercial

Equs Logistics, LLC DBA Altum Aerospace (CAGE 5URY2)

Dealer received awards for this item in 2013. The contractor provided an email stating they would not be interested in providing a proposal.

Information received regarding the commerciality of the item: Market research performed assisted in the determination the item contained in this initiative is commercial. Litens Automotive provided certification on 8/10/17 stating the item is commercial (Reference Attachment 2). A market research questionnaire completed by AM General dated 12/12/17 states the item is commercial. In addition, similar parts are available on commercial websites.

Based upon the above information, this item meets FAR 2.101(1) (ii) definition of a commercial item, which states that the item must have been “offered for sale, lease or license to the general public.” For the reasons stated above the Contracting Officer determines the item in this initiative to be commercial.

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

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) Source Selection Sensitive-FAR 2.1.1 and 3.104

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 NSN included with this solicitation was 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.

10. A listing of sources if any, indicating an interest in the acquisition is:

AM General LLC (CAGE: 34623)

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, these items are subject to the following methods of locating additional sources:

(X) The solicitation contains Procurement Notes: (1) Offers for Part Number Items (L04) and

(2) Evaluation of Part Numbered Items (M06).

(X) Source Development Review and a Sources Sought notice was posted on FEDBIZOPPS on March 2, 2018 for seven days. No responses were received in response to the posting other than Supreme Gear Company.

(X) The solicitation will be posted on the DLA Internet Bid Board System (DIBBS} for 30 days.

DFARS PGI 206.304 requires documentation for a non-competitive follow-on to a previous award for the same supply or service supported by a justification for other than full and open competition citing the authority at FAR 6.302-1. The previous J & A issued with solicitation SPE7LX-16-R- 0228, Attachment 1, did not include any directives to assist toward increasing competition.

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.

_____________________________ _29833__________05/22/2018_ Contracting Officer Phone Date Michael Shirley

SHIRLEY.MICHA

EL.L.1230150806

Digitally signed by

SHIRLEY.MICHAEL.L.1230150806

Date: 2018.05.22 15:37:45 -04'00'

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) Source Selection Sensitive-FAR 2.1.1 and 3.104

Approval/Certification

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

MARY E. COUTURE Date Competition Advocate Signature

Attachment 1: SPE7L4-16-R-0228-J & A Attachment 2: Litens Commercial Certification

APPROVAL REQUIREMENTS

(X) $700,000 to $13,500,000 Competition Advocate

COUTURE.MARY.E.

1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.05.30 10:17:42 -04'00'