SPE7LX18RX061_-_reviewed_Redacted.pdf

DEFENSE LOGISTICS AGENCY

LAND AND MARITIME

P.O. BOX 3990

COLUMBUS, OHIO 43218-3990

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX18RX061

[X] ORIGINAL

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

1. The Defense Logistics Agency (DLA), DLA Land and Maritime (L&M), is the contracting activity.

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

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

Brief Description National Stock

Number (NSNs) Annual Demand Quantity (ADQ)

Annual Demand Value

(ADV)

Acquisition Method Code (AMC)

Acquisition Method Suffix Code (AMSC)

DISK,CLUTCH,VEHICUL 2520-01-128-5652 1692 3 B

BRAKE LINING KIT 2530-01-372-1915 127 3 Z

BRAKE LINING KIT 2530-01-566-6740 4779 3 D

CALIPER ASSEMBLY,DISK 3040-01-447-3034 111 3 C

ADV:

Estimated 3 Year Base Value:

Estimated Total Value (Base + Options):

Maximum Contract Value:

Minimum Contract Value:

Solicitation SPE7LX18RX061 will be used to establish an Indefinite Delivery Contract (IDC), Firm Fixed Price (FFP) utilizing the authority of FAR 13.5- Simplified Procedures for Certain Commercial Items. The Government intends to award up to a five-year (5-year) contract. This five-year (5-year) period is inclusive of one (1) three-year (3-year) base period and two (two) separately priced one-year (1-year) option periods. The three-year (3-year) estimated Base Value is and the estimated Total Value with option years is . The contract maximum is

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

Item Description NSN Weapon System Designator

Code (WSDC) Weapon System Description

DISK,CLUTCH,VEHICUL 2520-01-128-5652 36A TANK, ABRAMS M-1

BRAKE LINING KIT 2530-01-372-1915 93A TRUCK, FORKLIFT 1000M

BRAKE LINING KIT 2530-01-566-6740 80A TRUCK, VEHICLE SYSTEM, 1 1/4-TON (HMMWV)

CALIPER ASSEMBLY,DISK 3040-01-447-3034 JDN ARLEIGH BURKE CLASS DDG

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

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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:

The only approved source(s) for these items are:

CLIN NSN Item Name

Unit of Measure

Approved CAGE* Company Name

Approved Part Number

0001 2520-01-128-5652 DISK,CLUTCH,VEHICUL EA 7R1P5 CARLISLE BRAKE FRICTION, INC. MPC5834NS

0002 2530-01-372-1915 BRAKE LINING KIT KT 5UE65 CARLISLE INDUSTRIAL BRAKE KIT 10113SP

0003 2530-01-566-6740 BRAKE LINING KIT EA 5UE65 CARLISLE INDUSTRIAL BRAKE 328-7904

0004 3040-01-447-3034 CALIPER ASSEMBLY,DISK AY 5UE65 CARLISLE INDUSTRIAL BRAKE PD143351

*Carlisle Industrial Brake (5UE65) is the parent company to Carlisle Brake Friction (7R1P5).

The use of the authority cited above for NSN 2520-01-128-5652:

[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.

The Product Specialist (PS), on 4/19/18, confirmed technical data for NSN 2520-01-128-5652 was correct and up to date. Carlisle Brake & Friction is the only source approved to produce this item. This item must be procured from the source listed on the source controlled drawing and approved by the design control activity (TACOM). Carlisle Brake & Friction is uniquely qualified to manufacture this item because it has the data, data rights, or manufacturing knowledge necessary to manufacture this part to meet the military’s requirement. The AMC/AMSC code of 3 B, was confirmed by the Product Specialist, and that the only approved source is Carlisle Brake Friction (7R1P5) part number MPC5834NS. Although there is a drawing and a Quality Assurance Plan (QAP), the Government does not have sufficient or complete technical data to provide for full and open competition. Carlisle is the only company known to have the manufacturing capability to meet the services requirements.

The use of the authority cited above for NSN 2530-01-372-1915:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

[X] AMSC Z. This part is a commercial/nondevelopmental/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.

The PS, on 11/27/17, confirmed technical data for NSN 2530-01-372-1915 was correct and up to date. Carlisle Brake Friction is the only entity known to possess the requisite technical data and/or rights to that data. Because Carlisle is the only source that possess the complete technical data for this item listed, they are the only source uniquely qualified to manufacture this item, therefore, this acquisition will be solicited for other than full and open competition under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302.

The use of the authority cited above for NSN 2530-01-566-6740:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[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.

The PS, on 1/18/18, confirmed technical data for NSN 2530-01-566-6740 was correct and up to date. Carlisle Brake Friction is the only entity known to possess the requisite technical data and/or rights to that data.Because Carlisle is the only source that possess the complete technical data for this item listed, they are the only source uniquely qualified to manufacture this item, therefore, this acquisition will be solicited for other than full and open competition under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302. All means to obtain a technical data package adequate for manufacture of the item have been exhausted.

The use of the authority cited above for NSN 3040-01-447-3034:

[X] AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

[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 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. A review of the document availability code reveals that the drawings for this item cannot be made available to the general public and manufacturer CARLISLE INDUSTRIAL BRAKE (5UE65) is uniquely qualified to manufacture this item because they are the only owners of the technical drawings and data.

The PS, on 11/27/17, confirmed technical data for NSN 2530-01-372-1915 was correct and up to date. A review of the document availability code reveals that the drawings for this item

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

cannot be made available to the general public. The Original Equipment Manufacturer (OEM) and sole source CARLISLE INDUSTRIAL BRAKE (5UE65) is uniquely qualified to manufacture this item because they are the only owner of the technical drawings and data. The PS also explained that the listed source possesses proprietary knowledge that made them uniquely qualified to make this item.

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

On 9/5/17, the Government posted a Sources Sought on www.fbo.gov which also contained an attached market survey. Responses were requested by 9/12/17. No responses were received.

Market Surveys were sent to Carlisle Brake Friction, Inc. (7R1P5 & 5UE65), HDT Vehicle Component Sales, Inc. (1SER6), Pines Automotive, Inc. (3B0Y2), Trust One Components Inc.

(4EX55), CBT Corporation (4N631), WB Parts, Inc. (46PU2), Lockheed Martin Corp. (02769), and Wheeler Bros. (55683). As of 3/21/18, only Carlisle Brake, who indicated they are a manufacturer, and Pined Automotive, who indicted they are a dealer, submitted a completed survey.

The Government will solicit under the authority of FAR Part 13.5- Simplified Procedures for Certain Commercial Items. A combined synopsis/solicitation will be posted to FedBizOps and will run for a period of 30 days. The solicitation will open on or about 5/30/2018 on the DLA Internet Bid Board System (DIBBS).

The Government will include a clause in the solicitation that provides that the Government will not consider alternate offers, and that the alternate offers should submit a Source Approval Request (SAR) package that will be forwarded to the Engineering Support Activity (ESA). The current procurement cannot be delayed due to mission requirements, and to allow for sufficient time for the ESA to determine 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.

The proposed action will be for up to a five-year (5-year) FFP IDC. The five-year (5-year) period is inclusive of a three-year (three-year) base period and two (two) one-year (1-year) options. Certified Cost or Pricing Data is not required for commercial items pursuant to FAR 15.403-1(b)(3). Past Performance will be reviewed and price analysis will be performed and negotiations will be conducted if necessary to ensure reasonableness. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable. Adequate price competition is not expected.

8. Market Research/Efforts to Obtain Competition:

Sources Sought Notice was posted to FedBizOpps, in accordance with PGI 206.302-1, seeking to identify potential sources of supply for these items. The Sources Sought Notice was posted on 9/5/17, with a response date of 9/12/17. No response was received.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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

[X] A market survey was conducted on/during 8/30/17 Total number of vendors contacted: 8 Names of vendors contacted and responding:

Carlisle Brake Friction, Inc. (5UE65) Pines Automotive, Inc. (3B0Y2)

Techniques used to conduct survey: The market survey was conducted by e-mail.

Types of Information Requested: The market survey requested the vendor to provide information including business type, business size, interest in LTC and length of contract, commerciality of these items and supporting documentation, approximate price and delivery, inspection and packaging compliance, foreign or domestically manufactured, and ability to provide Certified Cost & Price data.

Summary of information received:

Carlisle Brake Friction, Inc.’s market survey information yielded the following information:

-Carlisle Brake is a large business manufacturer with approximately 235 employees at Cage 7R1P5.

-Carlisle Brake has a parent company (Carlisle Corporation) with approximately 13,000 employees.

- Vendor is interested in pursuing an LTC for these items.

-Carlisle has an existing commercial distribution network.

Pines Automotive, Inc.’s for market survey information yielded the following information:

-Pines Auto is a small business dealer with approximately 10 employees and no parent company.

- Vendor is interested in pursuing an LTC for these items.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

-Vendor did not provide any information regarding commerciality.

Information received regarding the commerciality of the item(s):

Prior Determination of Commerciality: NSNs: 3040-01-447-3034 & 2530-01-566-6740

The buyer reviewed prior contract history for these NSNs and found that DLA L&M has previously determined both NSN 3040-01-447-3034 and NSN 2530-01-566-6740 to be commercial items.

Solicitation SPE7L317Q0519 for NSN 3040-01-447-3034 was issued utilizing FAR 13.5 authority. A Commercial Item Pre-Solicitation Memo (Attachment 1) was approved by the Contracting Officer establishing a determination of commerciality for this NSN. Solicitation SPE7L318Q0370 for NSN 2530-01-566-6740 was also issued utilizing FAR 13.5 authority. A Commercial Item Pre-Solicitation Memo (Attachment 2), which made the determination of commerciality for this item was approved by the Contracting Officer. Per DFARS 212.102(a) (ii) (A), “the contracting officer may presume that a prior commercial item determination made by a military department, a defense agency, or another component of DoD shall serve as a determination for subsequent procurements of such item”. DLAD Subpart 12.102(S-97) (vi) further supports the guidance for accepting prior commercial determinations. Additionally, the buyer reviewed the circumstances of these prior determinations and the similarities to the current acquisition. There has been no change in the items being procured or substantial change in market conditions; thereby, making these prior determination suitable for use as a determination of commerciality for the current procurement.

Determination of Commerciality: NSN 2530-01-372-1915

NSN 2530-01-372-1915 has an AMC/AMSC code of 3Z. Additionally, SAP MM03 (Attachment 3) and the Product Master (Attachment 3) both indicate that this item is a Commercial Off the Shelf (COTS) item. Per DAG 12.102(d), when the COTS field indicates that an item is commercial, a review of the item has been conducted by the DLA L&M technical community who has made the determination that an item is commercial. A technical review of this item was performed on 11/21/2017 by the Product Specialist, who indicated that the technical information was up to date and suitable for procurement.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

The approved part number for this NSN is KIT 10113. A search of GSA found part number KIT 10113, manufactured by Carlisle, listed for commercial sale (Attachment 3) for a unit price of $259.97 EA. Additionally, Carlisle provided their 2018 commercial price list, which lists part number KIT 10113 for a unit price of $114.65 EA. Based on the above information, NSN 2530-01-372-1915 is determined to meet the definition of a commercial item per FAR 2.101.Carlisle Brake indicated that this NSN is a KIT that contains three part numbers that are sold commercially as part of other commercial KITs (Attachment 3). These three part numbers are packaged together and sold as a KIT exclusively to DLA, however Carlisle provided commercial sales invoices for these three part numbers showing sales of these items to non-government entities for non-government use. Based on the above information NSN 2530-01-372-1915 is determined to meet the definition of a commercial item per FAR 2.101.

Determination of Commerciality: NSN 2520-01-128-5652

NSN 2520-01-128-5652 is determined to be meet the definition of a commercial item per FAR 2.101(3)(i) as it is an item of a type customarily used by and sold to the general public and non-government entities for other than government use but for modifications customarily available in the commercial marketplace. This item has been identified as a “Disk, Clutch, Vehicular” which is used as part of a disk brake assembly on the M1 Abrams tank. Carlisle stated that while 2520-01-128-5652 is not used in a commercial application, this item is manufactured using the same deign and materials as comparable purely commercial parts. The approved part number for this NSN is MPC5834NS. Carlisle provided a drawing for this part number (Attachment 4) and also provided a drawing for part number MPC10972 (Attachment 4), which is a commercially sold disk brake assembly used in Caterpillar heavy equipment. The PS reviewed the drawings for these items and determined that while there are minor differences in dimension, these items are manufactured from the same materials and with the same processes. Whether a disk brake assembly is used for a commercial or military application, the design follows function; dimensions and configurations all fall within the same continuum. Based on this information, the Product Specialist recommended that this item be determined commercial “of a type” (Attachment 4).

Carlisle provided a commercial sales invoice (Attachment 4) for part umber MPC10972 showing that this item is regularly sold to Caterpillar.

Additionally, the items that Carlisle sells to Caterpillar are more easily forecastable, allowing Carlisle to leverage significant discounts with their suppliers. While NSN 2520-01-128-5652 is only used in a military application, any differences between commercial brake assemblies and military brake assemblies are modifications that Carlisle customarily makes to fit specific applications in the

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

commercial marketplace. Therefore, this item is determined to be commercial of a type in accordance with the definition of a commercial item per FAR 2.101(3) (i).

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

[X] Based upon the technical certification on file in DLA L&P – Value Engineering Program (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. A technical and quality review was initiated by the SAPD SSS during the project development stage for this acquisition.

During the review the AMCs and AMSCS were reviewed and verified.

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

Carlisle Brake Friction, Inc. (5UE65) Pines Automotive, Inc. (3B0Y2)

11. This item is subject to the following methods of locating additional sources:

[X] The solicitation contains the provision entitled Procurement Note M06, Evaluation of Offers for Part Numbered Items, and Procurement Note L04, Offers for Part Numbered Items which will be applicable to NSNs 2530-01-372-1915, 2530-01-566-6740, and 3040-01-447-3034.

[X] The solicitation contains the provision entitled L&M PROC NOTE 217-9023 RESTRICTION OF ALTERNATE OFFERS FOR SOURCE CONTROLLED ITEMS (APR 2017). This provision restricts the acquisition to material manufactured by the source(s) listed on the source control drawing, as indicated by AMSC code B. Additionally, this provision instructs offerors who are interested in qualifying their product for purposes of future acquisitions to contact the cognizant design activity specified on the source control drawing. This provision is applicable to NSN 2520-01-128-5652.

[X] Other: A sources sought notice was posted to FedBizOpps on 9/5/17 with a response date of 9/12/17. No responses were received.

[X] Other: Solicitation will be synopsized in FedBizOpps and will be available in DIBBs on or about 5/30/18.

Attachment:

#1: NSN 3040014473034 SPE7L317Q0519 Pre-Solicitation Commerciality MFR Attachment 1 #2: NSN 2530015666740 SPE7L318Q0370 Pre-Solicitation Commerciality MFR Attachment 2 #3: NSN 2350013721915 Commercial Support Documentation Attachment 3 #4: NSN 2520011285652 Commercial Support Documentation Attachment 4 #5: J&A for solicitation SPE7L317R0060: NSN 2520011285652 #6: J&A for solicitation SPE7L317Q0519: NSN 3040014473034

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

FOR OFFICIAL USE ONLY

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.

Julie M. Miller Contracting Officer Date

Approval/Certification

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

Competition Advocate – Mary E. Couture Phone Date

APPROVAL REQUIREMENTS

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

Julie M. Miller

15 May 2018

Date