Redacted_JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-18-R-X147

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

ORIGNAL

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/PN ADQ EST.MAX VALUE AMSC

WHEEL,PNEUMATIC TIRE 2530-01-569-5909 197 3B

LUBRICANT,RUNFLAT 2640-01-457-5552 2145 3B

PARTS KIT,CHECK VALVE 4820-01-587-4620 483 3C

This requirement is for the acquisition of a WHEEL,PNEUMATIC TIRE; LUBRICANT, RUNFLAT, and PARTS KIT,CHECK VALVE utilized by the United States Military on the following weapons systems. See attachment 1 for a complete list of end items for these parts. The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the previous referenced weapon systems. The only manufacturing source currently approved is HUTCHINSON INDUSTRIES, INC. DBA (62161).

ESTIMATED ANNUAL VALUE

ESTIMATED TOTAL (5-YR) VALUE (BASE + OPTIONS)

MAXIMUM CONTRACT VALUE

This procurement is for an Indefinite Delivery Contract using FAR 13.5 procedures with a 3-year base period and 2 one-year options.

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 sources of supply, include sources and CAGE code:

This procurement is being solicited as an unrestricted acquisition with other than full and open competition under the authority of 10 USC 2304(c)(1). The complete Procurement Item Descriptions are included in attachment 3.

NIIN CAGE PART

NUMBER

CAGE NAME

014575552 62161 D528235-B HUTCHINSON INDUSTRIES, INC. DBA

015695909 62161 AS-0326 HUTCHINSON INDUSTRIES, INC. DBA

015874620 62161 60300 HUTCHINSON INDUSTRIES, INC. DBA

The use of the authority cited is based on the following:

NSN: 2530-01-569-5909 and 2640-01-457-5552

(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

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014) 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.

NSN: 2530-01-569-5909

(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.

In addition, per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only and HUTCHINSON INDUSTRIES, INC. DBA (62161) have been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and the using military services. Therefore, competition must be limited to offers of the product of

HUTCHINSON INDUSTRIES, INC. DBA.

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

(X) The acquisition was synopsized on 09/04/2018. A second synopsis will be posted on 10/10/2018 with the solicitation.

(X) Dealers of the manufacturers will be solicited.

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

a. Relevant pricing issues: The solicitation will utilize FAR 13.5 procedures without the cost or pricing clauses.

b. Basis for determining that the anticipated price/cost will be fair and reasonable: Per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be conducted using historical pricing determined fair and reasonable for the same or similar items, the Producer Price index (PPI) and learning curve analysis.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

Commercial price documentation has already been obtained and will be incorporated into the fair and reasonable determination.

c. This is a five-year, Firm-Fixed-Price, Indefinite Delivery Contract (IDC). The five-year period is inclusive of one three-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.

d. By using the above techniques, the Contracting Officer anticipates that the prices to the Government will be fair and reasonable

8. Market Research/Efforts to Obtain Competition: See information below:

Sources Sought Notice:

On January 25, 2017, a sources sought notice was posted to FedBizOps, which also contained an attached market survey. On October 2, 2018 a second sources sought notice was posted with no responses.

Market Research Total number of vendors contacted: 1 Names of vendors contacted:

HUTCHINSON INDUSTRIES, INC. DBA (62161)

Techniques used to conduct survey: E-mail.

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

Market Research Conclusion:

(1) A Market Survey was sent on to HUTCHINSON INDUSTRIES on 10/20/2017, the company responded on 11/14/2017 to the survey. On the returned survey, Hutchinson indicated they were interested in a Long-Term Contract and will quote on this NSN. They indicated their business size was a Large Business Manufacturer

They sent invoices to commercial suppliers to show that all three NSNs are commercial (see attachment 2).

(2) Phone interview was conducted on 09/19/2018 and the company confirmed interest and will quote the Solicitation when it is available. They also stated that these items are commercial and verified they would provide further documentation if needed for the commerciality determination.

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

Per the approved manufacturer parts list for these NSNs in SAP (as received from the Defense Logistics Information Service), only HUTCHINSON INC. CAGE 62161 has been identified as having the proper complete technical data and manufacturing expertise to supply these items to

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

DLA and the using military services. Although these items have been determined commercial, these items are used on military specific vehicles designed to satisfy the needs of the warfighter. These items were determined commercial of a type customarily available in the commercial market or commercial of a type with minor modifications to meet military specific needs due to similar items being available in the commercial marketplace. There is no evidence that standard, similar commercial parts can support these military specific vehicles. It is therefore essential to limit competition to HUTCHINSON INC. (CAGE 62161) part number items. A technical review in support of a potential LTC was performed on 09/12/2018 and all NSNs were determined to be suitable for a long-term contract. The Product Specialists reviewed the technical information and have certified it as complete and accurate.

Hutchinson Industries provided invoices for a three NSN’s to show they are available and sold to the commercial market however they are not commercial off the shelf products. They are commercial of a type. Findings are as follows:

NSN 2530-01-569-5909, P/N AS-0326, is “commercial of a type” and is found for sale on the internet. . This NSN also has a similar commercial part (part number of AS-1354) that is sold in the commercial market.

NSN 2640-01-457-5552, P/N’s D528235-B and 12460308-1, has a similar commercial part (part number D52823H1) that is sold in the commercial market. An invoice was submitted by Hutchinson Inc. for the sale of this P/N to

NSN 4820-01-587-4620, P/N 60300, has a similar commercial part (part number of 60263) that is sold in the commercial market. An invoice was submitted by Hutchinson Inc. for the sale for this part number to

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014) the mounting arrangement and air orifice size dictated by the geometry of the wheel face and

Based on the market research conducted, items will be solicited as commercial items with the definition of commercial of a type.

10. Hutchinson Industries Inc. CAGE 62161 is interest in a long term acquisition and are the only approved source.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. The solicitation will incorporate DLAD Procurement Notes L04, Offers for Part Numbered Items, and M06, Evaluation of Offers for Part Numbered Items. These notes give instructions on how contractors are to submit alternate offers and explain how and when DLA will evaluate alternate offers for this award.

Note: This is a new long-term contract. A previous J&A is not attached, since the previous procurements were simplified acquisitions.

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.

ELIZABETH E. HANLON Phone Date Contracting Officer

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

MARY E. SHEARER Phone Date Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

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

HANLON.ELIZABETH.EAST

ON.1378372107

Digitally signed by

HANLON.ELIZABETH.EASTON.1378372107

Date: 2018.10.03 14:07:28 -04'00'

SHEARER.MARY.E.12507024

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2018.10.11 15:28:56 -04'00'

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014)

Attachments:

Attachment 1 – End items Attachment 2 – commerciality letters and invoices from Hutchinson Inc.

Attachment 3 – Procurement Item Descriptions