J&A6.302-1SPE7LX18R0177.pdf

SPE7LX-18-R-0177

Source Selection Information – See FAR 2.101 and 3.104

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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 being approved is the acquisition of supplies on other than a full and open competition basis.

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

The subject solicitation is for a Single-NSN 5-year IDC project for DLA Land & Maritime CORE NSN 4910-01-620-3116 (MAINTENANCE KIT) with an ADQ of 627. This item is a general maintenance tool kit of a type sold commercially. The kit has multiple assigned weapon systems and only its end applications make the kit military in nature. The AMC/AMSC is 3/Z with estimated values as shown below.

ICP: DLA Land & Maritime

ESTIMATED ADV:

ESTIMATED TOTAL VALUE (Base Year+ 4 Options):

MAXIMUM CONTRACT VALUE:

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 CAGE code:

Snap-on Industrial (55719) part# STMIL0286 is currently the only ESA approved source for the NSN listed in Section #3 above.

The use of the authority cited in other than 10. U.S.C. 2304(c)(1) above:

(x) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

(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 NSN listed in Section #3 above is available only from the coded source Snap-on Industrial (55719) under part# STMIL0286.

At this time, only IDSC Holdings / Snap-on Industrial (55719) has been identified as having the proper complete technical data and manufacturing expertise to supply this maintenance kit to DLA and the using military services (per the approved manufacturer part list for this NSN in SAP, supplied by the Defense Logistics Information Service). This maintenance kit is used on military specific vehicles, facilities and equipment designed to satisfy the needs of the warfighter. This item was determined commercial of a type and met part one of the commercial item definition in FAR 2.101. IDSC Holdings / Snap-on Industrial (55719) has successfully provided these kits to DLA going back to 2013 and is the only source currently verified to have the technical data and manufacturing knowledge necessary to ensure these tools/parts properly support the military’s maintenance efforts. It is therefore prudent to limit competition to Snap-on (55719) part# STMIL0286.

The Acquisition Specialist requested the available salient characteristics for NSN 4910-01-620-3116 from SAPD Product Specialist provided a general overview of the kit and the break-down of the kit’s individual parts. He also indicated that the NSN is coded as a critical weapons item and all potential sources must submit a SAR package to be evaluated by the ESA. To date, no SAR package has been submitted by any interested sources. also reviewed the technical information and has certified it as complete and accurate including approved source, item description, tech/quality and AMC/AMSC coding.

DLA Value Engineering issued a DLA Form 339 (DSCC-FL-19-13988) to the Engineering Support Activity (ESA) for salient characteristics for competitive solicitation. The ESA responded that “a DFP could be created for this tool set to be used in competitive contracts however, this effort would require an estimated 160 hours to conduct market research and provide a final description for purchase including all technical requirements for the set. This equates to a total of $17,600, however our entire DLA budget is $40,000 for the year, Request DLA provide agreement to proceed with further engineering support to create the technical data package for the Maintenance Kit”. At this time there is no DLA agreement.

This acquisition will satisfy currently forecasted customer requirements, ensuring DLA is able to support in a timely manner. As the information on salient characteristics is not available at this time from local technical experts, DLA Land & Maritime-ZBB must rely on the AMC/AMSC coding (3/Z) for this NSN and proceed with this procurement while ESA makes attempts to 100% breakout this item for further competition. While breakout is ideal, the current course of action ensures our customer’s readiness while ESA pursues a breakout for future procurements.

The approved source information for this NSN is as follows:

NSN ITEM APPROVED

CAGE COMPANY NAME APPROVED

PART#

4910-01-620-3116 Maintenance Kit 55719 IDSC Holdings DBA Snap-on STMIL0286

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

(x) The acquisition will be synopsized prior to solicitation issue.

(x) Dealers of the manufacturer will be solicited.

(x) Other. (Explain) ZBB issued a Sources Sought Notice to FedBizOps on 01/10/2019 and closed 01/21/2019 with no responses.

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

Per FAR 2.101 and DLAD 12.102, NSN 4910-01-620-3116 was determined to be an item “of a type” commercially available and are available through Snap-on’s network of dealer / distributors. IDSC Holdings / Snap-on Industrial provided documentation to support commerciality and for a similar commercial kit they offer. The basis for the Government’s fair and reasonable price determination is anticipated to be PPI based price analysis and/or the analysis of other than cost or price data such as informal cost break-downs and/or material invoices with final negotiated pricing reviewed in comparison with recent past buy history and publically available commercial pricing.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

Other market research efforts include: A review of the purchase history, coordination with the DLA Land and Maritime Small Business Office. A Sources Sought Notice was posted to www.fbo.gov on 1/10/19-1/21/19 with no new manufacturers sources identified. DLA ZAA & ZBB Branch conducted formal market research and survey with approved manufacturer Snap-on (55719).

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

A market survey was conducted on/during: 02/2/2018 to 02/28/2018.

Total number of vendors contacted: ___1_____.

Names of vendors contacted: IDSC Holdings / Snap-on Industrial (55719) Names of vendors providing survey responses: IDSC Holdings / Snap-on Industrial (55719) Techniques used to conduct survey: _______Formal Market Survey, email and telephone.

Types of information requested: __________See Survey Results included_______________.

Summary of information received: See Survey Results included.

Information received regarding the commerciality of the item(s): See Survey Results

(*) The subject solicitation shall be for the establishment of a FAR 12 Fixed Price IDIQ Contract with a one-year (1) Base Period and four (4) one-year Option Years. The Option Years may be executed at the discretion of the Government and should the ESA’s efforts to 100% breakout this NSN for full competition be successful, the Government may determine to not exercise the Option Years of this agreement.

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: IDSC Holdings / Snap-on Industrial (55719)

11. The following actions are being taken to identify additional sources:

(x) The solicitation contains DLAD Procurement Notes L04, “Offers for Part Numbered Items” and M06, “Evaluation of Offers for Part Numbered Items".

(x) The contracting office has taken action to overcome barriers to competition via DLA form 339 (DSCC-FL-19-13988) to the Engineering Support Activity (ESA), referral to DLA Land & Maritime Value Engineering for salient characteristics, referral to SAPD Product Specialists, and additional communications with the ESA Engineer for possible NSN “breakout” to improve competition. The ESA is pursuing development of a Technical Data Package (TDP) for 100% breakout; however, any results of this action are not guaranteed.

(x) On 01/15/2019 the Contracting Officer was advised by Jeff Culbertson of DLA Land & Maritime Value Management (VEE) that they have no open projects at this time for this NSN.

(x) I/A/W the recent DFARS/DFARS PGI 206.303-2 changes dated 4/20/2015 concerning “Additional J&A requirements for noncompetitive follow-on acquisitions”, the recent procurements covering this material did not utilize a J&A and therefore a copy cannot be provided to assist the approval authority.

Market Research / Survey Summary

Market Survey Results: The market research for this project was conducted by the Acquisition Specialist with ZAA & ZBB Branch. Formal market survey was conducted with approved source IDSC Holdings / Snap-on Industrial (55719) with response received 2/28/2018 and ZBB follow-up discussions / clarifications concluded on 8/29/2018 and summarized as follows.

1. IDSC Holdings d.b.a. Snap-on Industrial (Snap-on)(55719 is a manufacturing division of IDSC Holdings LLC d.b.a Snap-on Industrial located in Kenosha, Wisconsin with 600 employees. IDSC Holdings LLC is under parent company Snap-on Tools which has over 11,000 employees worldwide with manufacturing facilities in the US and across the globe. Initial survey response was received from Snap-on’s Military Program Manager on 02/8/2018. As their survey responses were incomplete when assigned to ZBB Branch, ZBB conducted follow-up and clarification discussions with These discussions were completed on 08/29/2018 indicating the following key information.

i. Interested in a Long Term Contract

ii. NSN 4910-01-620-3116 is tied to Snap-on part#

STMIL0286 which Snap-on Industrial sells to the military exclusively, however they sell a similar maintenance kit, KMC18GMTK, commercially where the only difference is that it does not come with UID Tag, Hand Receipt/BOM, and includes a different COTS 12 FT Measuring Tape the commercial customers prefer. Both military and commercially similar kit contain the same commercial-off-the-shelf component tools with the exception of the tape measure found in Snap-on Tools catalogs and websites.

iii. Snap-on Industrial is a manufacturing division of a large parent corporation, Snap-on Tools, which has 11000+ employees worldwide.

iv.

vi. Snap-on Industrial Employs = 600

vii. IDSC Holdings LLC d.b.a Snap-on Industrial handles all

Government Sales of Snap-on products and is under parent company Snap-on Tools.

viii.

x.

NSN: 4910-01-620-3116

CONTRACTING OFFICER CERTIFICATION

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

__________________________________________ 2-8029____________3/1 /2019__ Contracting Officer Phone Date

Elizabeth E. Hanlon_____________________________ Typed name of Contracting Officer

Approval/Certification

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

Mary E. Shearer Date DLA Land & Maritime - Competition Advocate

APPROVAL REQUIREMENTS

( x ) Up to $700,000 Contracting Officer ( x ) $700,000 to $13,500,000 Competition Advocate

HANLON.ELIZABETH.

EASTON.1378372107

Digitally signed by

HANLON.ELIZABETH.EASTON.137837210

Date: 2019.03.19 14:40:56 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.19 16:19:22 -04'00'

3/19/2019