J&A-SPE7LX18RX029_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-X029

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

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(X) 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:

BRIEF DESCRIPTION NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST.

ANNUAL

DEMAND AMC AMSC

Control Assembly, Transmission 2520-01-579-1379 1,524 3 D Control Assembly, Transmission 2520-01-579-2302 3,377 3 C

1 Year Base Estimated Value 3 Year Total Estimated Value Contract Maximum

Estimated value and contract duration:

The proposed action is for the solicitation and award of a three-year, Firm-Fixed-Price, Indefinite Delivery Contract (formerly called IDPO). The three-year period is inclusive of one one-year base period and two separately priced one-year option periods. The 1-year base period estimated value is , and the base period plus two option years' estimated value . The contract maximum is

Identify end item, weapon system, or class of item:

The NSNs are tied to weapon systems 80A (Truck, Vehicle System, 1 1/4 Ton (HMMWV)), 1AM (Truck, Utility); 1CM (Truck, Utility), C1M (NOTM Staff Vehicle Kit (SV Kit)), and FYM (Drone System). The HMMWV is used by the US Army and US Marine Corps, and the Utility Truck is used by the US Marine Corps. These transmission control assemblies are used to operate the transmissions in the HMMWV and Utility Trucks and are frequently replaced due to the wear and tear experienced upon significant usage.

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

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

5. Acquisition is restricted only to the following source(s) of supply for all items:

CAGE 4WR67 / Powertrain Control Solutions.

The use of the authority cited below:

[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 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

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

P a g e | 2 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.

[X] 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.

[X] Other: (Explain) The Government has reserved the right to approve sources and only CAGE 4WR67 has been approved. In addition, per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only CAGE 4WR67 has been identified as having the proper complete technical data and manufacturing expertise to supply the items to DLA and the using military services.

Therefore, competition must be limited to offers of the product of CAGE 4WR67. Most recent technical reviews were conducted in January 2018 and November 2017 respectively (per SAP) for the NSNs and no additional sources were identified at that time. In addition, a technical review in support of a potential LTC was performed in February 2018 as well. The NSNs were determined to be suitable for an LTC at that time.

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

[X] The acquisition will be synopsized on or about 03/06/2018.

[X] Dealers of the manufacturers will be solicited.

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

This will be a three-year, firm fixed price, indefinite delivery contract subject to FAR Part 13.5. The three year period is inclusive of one one-year base period, and two separately priced 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. Based on the results of market research, the buyer anticipates receiving more than one offer, and adequate price competition between dealers is expected to exist at time of evaluation of offers. The buyer will request other than certified cost/price data from offerors if deemed necessary at time of offer evaluation.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.fbo.gov. In addition to the publishing of a Sources Sought notice, the Sourcing Strategy team's Contract Specialist also researched the procurement history for the item on the proposed solicitation and emailed each of the suppliers that still had a valid registered CAGE.

Sources Sought Notice:

On 02/01/2017, a Sources Sought notice was posted to www.fbo.gov, which also contained an attached market survey. The date of return referenced on the sources sought notice was 02/06/2017. As of 02/22/2018, no additional sources responded to the notice. The buyer posted an updated sources sought notice on 02/27/2018 with a close date of 03/06/2018. As of 03/07/2018 no additional responses were received.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

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Market Research Conclusion:

A market survey was conducted on: 01/2017 – 02/2018. The buyer contacted the three firms expressing interest in the acquisition in 2017 via email to reconfirm their interest. The three sources did reconfirm their interest.

Total number of vendors contacted: 12 Names of vendors contacted and responding:

CAGE 3B8Ll / Janel's Industries, Inc. - responded;

CAGE 66200 / Pioneer Industries, Inc. – responded;

CAGE 55683 / Wheeler Brothers – responded;

CAGE 4WR67 / Powertrain Control Solutions – responded;

CAGE 1N8T8 / JGILS, Inc. – responded;

CAGE 5WRH4 / JBL System Solutions – responded;

CAGE 1SHN6 / Clarke Power Services – responded;

CAGE 5PAL3 / Genesis J.I.T. Inc. – responded;

CAGE 0VW10 / AM-MAC, Inc. – did not respond;

CAGE 1XLG2 / T & L Sales – did not respond;

CAGE 3WGD1 / Statz Corp. – did not respond; and CAGE 4LF36 / Phoenix Trading – did not respond.

Techniques used to conduct survey: E-mail and Sources Sought notice.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

Summary of information received:

Twelve sources were contacted as listed above. Four sources did not respond. Four sources responded that they are not interested in this acquisition. Those CAGEs were 1N8T8, 5WRH4, 1SHN6, and 5PAL3. CAGE 4WR67, the approved manufacturer, responded that their Government spares sales are handled by Pioneer Industries / CAGE 66200. Wheeler Brothers / CAGE 55683, Pioneer Industries / CAGE 66200, and Janel's Industries, Inc. / CAGE 3B8L1 returned completed surveys. The results of the surveys are documented below.

1. CAGE 55683 / Wheeler Bros. indicated the following in their returned market survey.

i. Large distributor with a preference to do business with the government

ii. 250 employees

iii. Parent Company is VSE Corp. with 1900 employees iv.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

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2. CAGE 66200 /Pioneer Industries responded with the following:

i. Small distributor with a preference to do business with the government

ii. 25 employees

iii. They do not have a Parent Company,

3. CAGE 3B8L1 / Janel's Industries, Inc. indicated the following in their returned market survey.

i. Small distributor with a preference to do business with the government

ii. 11 employees

iii. They do not have a Parent Company, Information received regarding the commerciality of the item(s): These NSNs are not listed on any GSA Federal Supply Schedules. The dealer identified by the manufacturer as their distributor for Government spares, Pioneer Industries, indicated that they consider the item to be commercial in nature. A review of the manufacturer’s website, www.powertraincontrolsolutions.com, shows part number TCM2100 as having been replaced by their part number TCM2800. TCM2800 is available through their distribution system, as listed at www.powertraincontrolsolutions.com/Performance_Aftermarket/Dealers/. Lastly, the Bing results for these NSNs and their corresponding part numbers were tied to both Government information sources and various aftermarket parts Internet-based suppliers. Based on the availability of the replacement part through Internet retailers (particularly www.paceperformance.com), the general public can purchase the replacement item directly from the distributors. It thus meets the definition of a commercial item per FAR 2.101 (“Commercial Item” (1)(ii)). The contracting officer has therefore determined the item to be commercial.

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

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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: (If none, so state) Janel's Industries, Inc. / CAGE 3B8Ll; Wheeler Bros / CAGE 55683; and Pioneer Industries, Inc. / CAGE 66200.

11. The following actions are being taken to identify additional sources before any subsequent acquisitions are made: (If none, so state and explain why not.)

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

[X] The solicitation contains the procurement notes L04 and M06, entitled Offers for Part Numbered Items, and Conditions for Evaluation and Acceptance of Offers for Part Numbered Items

12. Justifications and approvals for previous large acquisitions for both NSNs are attached for review.

#1 – SPE7L4-18-C-0035 for NSN 2520-01-579-1379 #2 – SPE4A6-15-C-0090 for NSN 2520-01-579-2302

DLA Land & Maritime Justification for Other Than Full & Open Competition (March | 2014)

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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.

John W. Hutcheson, Contracting Officer

APPROVAL / CERTIFICATION

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

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[X] $700,000 to $13,500,000 Competition Advocate

COUTURE.MARY.E.12302

53613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.03.16 15:17:17 -04'00'

HUTCHESON.JOHN.W.1073

665759

Digitally signed by

HUTCHESON.JOHN.W.1073665759

Date: 2018.03.07 08:22:03 -05'00'