J&-18RX128-Redacted_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION – SPE7LX-18-R-X128

X ORIGINAL

ADDENDUM

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

2. The action approved is for the acquisition of supplies on an other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Quantity Firm- Fixed Price type contract for ground vehicle tires. Contracts awarded because of this solicitation will provide the Tires Successor Initiative (TSI) Contractor (selected by award SPE7L1-14-D-0005,) with government-mandated sources of supply for the subject tires.

The acquisition will include 26 National Stock Numbers belonging to Federal Supply Classes 2610 – Tires/Tubes Pneumatic. Solicitation will utilize FAR 13.5 procedures.

3. Thee supplies required to meet the using activity's needs are described in Attachment 1 titled, NSN Information.

There are a total of 26 NSNs on solicitation SPE7LX-18-R-X128. The number of approved sources per NSNs varies from one approved sources to several approved sources.

Attachment 2, titled, Approved Sources, lists the approved sources and part numbers for each NSN. Per FAR 13.5, FAR Part 6 procedures are exempt except for a sole source situation. Also per DLAD 13.5, "A Justification and Approval (J&A) is required only for sole source acquisitions". Because solicitation will be issued utilizing FAR Part 13.5 procedures, a Justification and Approval (J&A) is only required for those items with a single source of supply. The NSNs identified as requiring a J&A are highlighted in Attachment 2.

Identify end item, weapon system, or class of item. Item is used on the following weapon systems:

Items are used on various weapon systems. The highest weapon system for each item is provided on Attachment 1 title, NSN information.

This solicitation is necessary in order for DLA to continue to support the above mentioned weapon system which is specifically designed to counter the battle field tactics of the enemy, to save lives and to increase the mission effectiveness of combat troops.

ESTIMATED BASE VALUE:

The estimated annual demand value (ADV) is The ADV is calculated by multiplying the estimated annual demand quantity (ADQ) for each NSN by the most recent past buy price and then summing all ADVs to create a total Annual Demand Value (ADV).

Since the contract will expire October 2018, the estimated base value is equal to four months of the total ADV or . The estimated base value was calculated by dividing the ADV by 12 to establish a monthly value ( and then multiplying the monthly value by four to create the estimated base value.

MAXIMUM CONTRACT VALUE:

The contract maximum is calculated in order to provide adequate coverage of these items should demands increase; the contract maximum will be six times the estimated monthly 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.

Items are available from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

-Approved sources, CAGE Codes and part numbers are provided on Attachment 2 titled, Approved Sources

The use of the authority cited is based on:

- AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

(The following are the AMSC descriptions. The full text is available in DFARS PGI

217.7506 Part 2).

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

For CLINS/NSNs coded with an AMC/AMSC of D, the Government does not have technical data for these items and cannot obtain the technical data economically. For these items, the identified approved sources are the only known source that own or possess the technical data.

Therefore, these items coded with an AMC/AMSC 3D are unique only to the approved sources.

The process of developing a long-term contracting (LTC) project requires a review and determination by the Product Specialist that the technical data is correct, including the AMC and AMSC codes, and that the technical data reflects the minimum requirements for the item.

Because of the amount of time between project development (November 2017) and solicitation, buyer requested an updated data pull to verify the AMC/AMSC did not change.

As of May 28, 2018, the AMC/AMSC remained the same.

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

(X) The acquisition will be synopsized consecutively with the solicitation opening date.

(X) Manufacturer of exact products identified in the market research will be solicited.

(X) Dealers of manufacturer will be solicited

(X) The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive.

The Government will include a DLA Land and Maritime procurement note that provides that the Government will consider alternate offers, and that alternate offers should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements and to allow sufficient time for the engineering activity 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 andreasonable.

Prices will be determined fair and reasonable through price analysis based upon the application of the Producers’ Price Index (PPI) to the past acquisition. Also, competition is expected, therefore, proposed prices will be compared among all offers to determine if price competition exists. Because items are commercial, proposed prices will be compared to prices of similar commercial items available to the public.

8. Market Research/Efforts to Obtain Competition:

Buyer reviewed buy history for potential sources. Purchases were delivery orders issued off basic contract SPE7M1-15-D-0017 awarded to Pomp’s Tire Service (1T1Z4) in support of Tires Successor Initiative (TSI) contract SPM7LX-11-D-0157. Buyer researched the availability of the Justification and Approval (J&A) memo for contract SPE7M1-15-D-0017. A J&A memo was not available in Records Management.

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

A market survey was conducted on/during: April 26, 2018 – May 7, 2018.

Total number of vendors contacted: 2.

Name of vendor contacted and responding:

Bridgestone Americas Tire Operations dba GCR Tires and Services (073A9) and Pomp’s Tire Service (1T1Z4).

Techniques used to conduct survey: Sources Sought Notice, market survey questionnaires, review of buy history, and internet search.

Types of information requested: Information included business type, business size, interest in LTC and length of contract, commerciality of the item, approximate price and delivery, inspection and packaging compliance, and ability to provide Certified Cost & Price data.

Summary of information from received:

GCR and Pomp’s are dealers and large businesses A firm-fixed price LTC is acceptable.

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

Items are tires used on vehicles such as trailers, over-the-road trucks, dozers, forklifts, and off-the-road graders. These military vehicles are similar to the same type of vehicles used commercially. It is reasonable to believe that tires for military and commercial vehicles are likely to have more similarities than differences. But, because the military vehicle may have unique requirements, it is a prudent conclusion that the military version of the tire is at least “of a type” customarily used by the general public. Therefore, this item meets the definition of “Commercial Item” as defined in FAR 2.101.

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.

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:

Bridgestone Americas Tire Operations dba GCR Tires and Services (073A9) and Pomp’s Tire Service (1T1Z4).

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, this item is subject to the following methods of locating additional sources:

(X) Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items

(X) The solicitation contains the procurement notes which addresses the evaluation and acceptance of offers for part numbered items.

(X) Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part

Numbered Items

(X) A synopsis will be posted on FedBizOps for 10 days.

(X) The solicitation will be posted to DIBBS for 10 days.

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.

TRACY L. HOLMES 2.7780

Contracting Officer Phone

HOLMES.TRACY.L.125

1897499

Digitally signed by

HOLMES.TRACY.L.1251897499

Date: 2018.07.26 11:43:01 -04'00'

Approval/Certification

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

Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

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

COUTURE.MARY.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.07.26 15:46:03 -04'00'