SPE7LX-18-R-0168_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION - SPE7LX-18-R-0168

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

(April 2014)

SPE7LX-18-R-0168

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 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, Corporate Indefinite Quantity Contract (IQC) for DLA-managed Storage Batteries, consisting of four National Stock Numbers (NSNs) in Federal Stock Class (FSC) 6140. This IQC contains a fixed price 3-year base period. The approved source for these NSNs will be solicited along with any 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 three years (a three-year base period).

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

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 6140013788232 BATTERY,STORAGE

15,867

3 Z F

0002 6140014500141 BATTERY,STORAGE

3 Z T

0003 6140015262605 BATTERY,STORAGE

3 Z K

0004 6140015297226 BATTERY,STORAGE

10,809

3 B M

Contract Minimum = ADV * .03

Annual Demand Value

3 Year Value = ADV *3

Contract Maximum = ADV *6

The following are the relevant end items/weapon systems: NSN 6140013788232 supports all MRAP vehicles, Navy/Marine/USAF helicopters and aircraft, missile systems, navy ships, and support equipment.

NSN 6140014500141 supports landing craft utility, the Mobile Integrated Remains Collection System, and AN/TTC-56 – AN/TCC59 & AN/TTC-61 Systems. NSN 6140015262605 supports USN Littoral combat ships and landing craft utility. NSN 6140015297226 supports the Advanced Medium Mobile Power Systems (AMMPS), ground support equipment.

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:

SPE7LX-18-R-0168

Acquisition is restricted to a current sole source of supply. The current and complete listing of sources is below.

CLIN NSN Item Description CAGE Company Name Part Number

6140013788232 BATTERY,STORAGE 0UJ55 OPTIMA BATTERIES, INC. 8002-002/MDL.

NO. 34 or 800- U

0002 6140014500141 BATTERY,STORAGE 0UJ55 OPTIMA BATTERIES, INC. 8021-021/MDL.

NO. D34

0003 6140015262605 BATTERY,STORAGE 0UJ55 OPTIMA BATTERIES, INC. 8006-

006MDL.34M

0004 6140015297226 BATTERY,STORAGE 0UJ55 OPTIMA BATTERIES, INC. 8073-167/MDL.

NO. D51R

As listed in the chart on Page 1, CLINs 0001 – 0003 are listed as AMC 3/AMSC Z, and CLIN 0004 is listed as AMC 3/AMSC of B.

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 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. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

[X] AMSC Z. This part is a commercial/non-developmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid.

The AMC/AMSC code and source for each NSN was reviewed by the Product Specialist Supervisor on November 20, 2018. For CLIN 0004, which has the AMSC of B, Optima Batteries, Inc., is the only manufacturing source specified on the source control drawing and suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources. Although the Government has the drawing, it is source-controlled drawing. Because the Government does not have full rights to the drawing, the drawing cannot be used to provide full and open competition. Additionally, although this item is commercial, it is essential that the Government procure the item only from Optima Batteries, Inc., because the batteries support a specific military weapon system, the Advanced Medium Mobile Power Systems (AMMPS). It is necessary to procure only the item manufactured by Optima Batteries, Inc. because this is the only battery DLA can ensure will operate in the identified weapon system.

For CLINS 0001, 0002, and 0003, which have an AMSC of Z, Optima Batteries, Inc., is the only known source to possess the technical data and manufacturing capability to manufacture the items needed to meet

SPE7LX-18-R-0168

the requirements of the services. All four NSNs are batteries used directly on the end items detailed above and are the only batteries known to fit into the end items.

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

(X) The acquisition was synopsized on 11/30/2018.

(X) Dealers of the manufacturer will be solicited.

(X) SOURCES SOUGHT NOTICE: A Sources Sought Notice was posted to the Federal Business Opportunities website (FedBizOps) for the required NSNs on August 25, 2018 and requested responses by close of business (COB) September 4, 2018. No responses were received. 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 November 27, 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 all recent buys. All of the purchases in the procurement history were either Long Term Contract purchases, or under SAT purchases directly from the sole source manufacturer (0UJ55) Optima Batteries, Inc. A second source had been listed on CLIN 0002 (1EAE2) Van Air Manufacturing, but when research was completed by the Battery Product Specialist Supervisor, it was determined that Van Air manufactured generators, not batteries. They were not supposed to be listed as a source for CLIN 0002 and were removed.

Optima Batteries indicated during market research that they were planning to quote directly.

The J&A from solicitation SPE7LX-15-R-0021 from the previous LTC for these NSNs is attached.

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-off-the-shelf, according to FAR Part 2.101. The contracting officer hereby anticipates that the price to the Government will be deemed fair and reasonable after reviewing and evaluation of contract price history, and the comparison to commercially posted pricing.

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 and the Contract Specialist from February 2018 through September 2018. Market Surveys, including a market research questionnaire and spreadsheet, were sent to the approved source of supply: Optima Batteries, Inc. (0UJ55) as well as other possible sources, Enersys (0WY95), Entwhistle (20722) and Van Air Manufacturing (1EAE2). As a result, one response was received indicating a desire and ability to propose: Optima Batteries, Inc. (0UJ55).

Optima Batteries, Inc. indicated that they are a Large Business manufacturer and would

Optima Batteries

SPE7LX-18-R-0168

indicated the items were commercial, and Optima provided commercial invoices and a price list for all four NSNs.

Estimated delivery time for the items were given on market research, and were compared to the current long-term contract to come up with the Government required delivery for the solicitation.

Enersys (0WY95) indicated they were not a manufacturer of any of these items, nor did they have any alternate offer for any CLIN. Entwhistle (20722) stated that they did not manufacture any of these items either. Van Air Manufacturing (1EAE2) was at first listed as an approved source on CLIN 0002, but when contacted by the Battery Team Product Specialists, indicated that they manufactured generators, not batteries. They were removed as an approved source.

A Sources Sought Notice was posted on FedBizOps (for 7 days) on August 25, 2018 . No responses were received. The solicitation was synopsized and posted on the DLA Internet Bid Board System (DIBBS) website for any interested offerors.

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

A market survey was conducted on/during: February through September 2018.

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 Optima Batteries, Inc.

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. These NSNs are not under the First Destination Transportation (FDT) program, and as a result the F.O.B. will be at Destination. 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”. The contracting officer has made the determination that the NSNs are commercial-off-the-shelf pursuant to the definition in FAR

2.101 for the following reasons:

1. In the market survey, the approved source was asked if they considered all four items to be commercial, and they provided a positive response for all four items;

2. A technical/quality review was completed for the NSNs, and there are product specialist opined that the items are commercial;

SPE7LX-18-R-0168

3. Commercial invoices and price lists were provided. The commercial invoices and price lists were reviewed, found to be valid, and indicated all four items have been sold to the public; and

4. The Contracting Officer searched websites to determine the availability of the items in the commercial marketplace. CLIN 0001 was offered for sale at Advance Auto Parts, Big Time Battery, Pep Boys, and Summit Racing. CLIN 0002 was available at Advance Auto Parts, Wal-Mart, Big Time Battery, and Pep Boys. CLIN 0003 was available to Autozone. CLIN 0004 was available at 4 Wheel Parts, Blazen Auto, and Courant.

The synopsis was 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.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) (0UJ55) Optima Batteries, Inc.

11. Thes 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

(X) Source Development Review

(X) Actions under the previous solicitation were accomplished during the term of the Long Term Contract: The previous solicitation contained the provision entitled Conditions for Evaluation and Acceptance of offers for Part Numbered items. No alternate offers have been received.

(X) Breakout request as sent to Value Engineering

(X) A formal 339 request has been sent to the ESA requesting salient features

Additionally, in an attempt to overcome the barriers to competition, the buyer requested salient features from Tech/Quality for the purpose of breakout under a Brand Name or Equal Specification for these items.

Complete salient characteristics were not available at this time. Consequently, on March 31, 2019 the Battery Team Product Specialist Supervisor sent a breakout request to Value Engineering and a 339 to the Engineering Support Activity requesting salient features of these items in an effort to breakout the items under a Brand Name or Equal Specification for future acquisitions of these items.

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

SPE7LX-18-R-0168

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.

12. Attachment: J/A from previous LTC (SPE7LX15R0021).

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

Competition Advocate Signature Date

Head of the Contracting Activity (HCA) Date Signature

APPROVAL REQUIREMENTS

(X) Up to $700,000 Contracting Officer

2-7568 4/10/19

4/12/19

5/2/19

KRAFFT

SPAYDE.CARRIE.L

.1299372029

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2019.04.10 13:55:48 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.04.12 12:00:12 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.05.02 09:15:13 -04'00'

SPE7LX-18-R-0168

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

(X) $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

Attachment

1. J/A SPE7LX-15-R-0021