SPE7LX18RX130_-_Redacted_J&A.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-RX-130

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

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(X) 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.

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

VALUE AMC AMSC

Battery, Storage 6140-01-417-3244 137 3 C 3 Year BASE Period Value = 5 Year (BASE + Options) = Contract Maximum (ADV x 6) =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a three-year, Firm-Fixed-Price, Indefinite Delivery Purchase Order and two separately priced one-year option periods.

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

The NSN is a Battery, Storage used on various Hawker Aircrafts used by the U.S. military.

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:

CAGE 0WY95 / EnerSys Energy Products, Inc.

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 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. 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.

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

[X] The acquisition will be synopsized on or about 08/02/2018.

[X] Dealers of the manufacturers will be solicited.

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

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

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This will be a firm fixed price, indefinite delivery contract subject to FAR Part 13.5, with a 3-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 Insight 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 OEM/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:

The DLA Land and Maritime Sourcing Strategy Specialist (SSS) initially prepared a Sources Sought Notice for NSN 6140- 01-417-3244 and posted on FedBizOps (for seven days) on October 11, 2017. The buyer of record issued an updated Sources Sought Notice and posted on FedBizOps on June 8, 2018 with a response date of June 15, 2018. Concorde Battery (63017) responded to the 2nd Sources sought notice on June 26, 2018. Concorde was a previously approved source for this item, but was removed as an approved source when the service life of their batteries lasted a little over a year, and the Air Force requirement was three years. According to Concorde, they have updated their item to allow it to last for the full service life.

Concorde is preparing an Alternate Source package to turn into the Competition Advocate for review. Concorde was informed to turn in a quote, as a current alternate offer, and the status of their alternate offer will be reviewed as will the state of their submission to the Competition Advocate. The length of time for review of the Alternate offer package will determine if Concorde will be considered for the current project.

Market Research Conclusion:

A market survey was conducted between October 6, 2017 and October 31, 2017, and again in June 2018. The contractors were contacted recently and remain interested in this acquisition.

Total number of vendors contacted: 2 Names of vendors contacted and responding:

EnerSys Energy Products, Inc (CAGE 0WY95) - responded;

Concorde Battery Corporation (CAGE 63017) – responded;

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:

Two sources were contacted as listed above and both provided positive interest. The results of the surveys are documented below.

1. CL17279001 – A market survey response was received from Concorde Battery Corporation (CAGE 63017) on October 17, 2017 indicating they are a SMALL business manufacturer and stated the item in NOT Commercial, are interested in a Long Term

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

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Contract with a

2. CL17279001 – A market survey response was received from EnerSys Energy Products, Inc (CAGE 0WY95) on October 31, 2017 indicating they are a LARGE business manufacturer, provided several documents in support of a Commercial Item Determination, are Electronic Data Interchange capable (preference for Electronic Communication), are interested in a Long Term Contract with a

Information received regarding the commerciality of the item(s): This NSN is not listed on any GSA Federal Supply Schedules. In support of a Government Commercial Item Determination, a request was prepared and sent to the DCMA – AQRT – utilizing the Commercial Item Recommendation Request Form, through Commercial@dcma.mil for NSN 6140-01- 417-3244 on June 1, 2018 with a response date of June 8, 2018. The DCMA Commercial Item Group, provided a positive response on June 15, 2018. Based on the DCMA review of 1- Evidence for Assertion of Commerciality – EnerSys P/N 9750S0833, 2 - EnerSys AGM Batteries Brochure, and 3 - DLA Strategic Acquisition Program Directorate (SAPD) Long Term Contract Market Research Questionaire (dated 6 October 2017), the CIG Price Analyst recommends the subject Battery, Storage meets the FAR 2.101 Commercial Item Definition (1)(i ) therefore, 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.

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) EnerSys Energy Products, Inc (CAGE 0WY95) and Concorde Battery Corporation (CAGE 63017)

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 Alternate offer package will be submitted by Concorde (63017) to see if they will qualify again as a source for this procurement, or future procurements.

12. Justifications and approvals for previous large acquisitions for this NSN is attached for review.

#1 – SPM7LX12R0016 for NSN 6140-01-417-3244

DLA Land & Maritime Justification forOther 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.

CARRIE KRAFFT SPAYDE, 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

KRAFFT

SPAYDE.CARRIE.L.1299372029

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2018.07.13 16:11:19 -04'00'

HOPSON.LILLI.A.123012

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2018.08.08 10:48:10 -04'00'