Redacted_JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-19-R-0075

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

AMC/A

MSC

Cylinder Assembly 3040-01-446-3620 62 1R

This requirement is for the acquisition of a CYLINDER ASSEMBLY utilized by the United States Military on the following weapons system: M-915 Truck Series. The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the referenced weapon systems. The only manufacturing sources currently approved are CRYSTEEL MANUFACTURING INC. (5X050) and DAIMLER TRUCKS NORTH AMERICA (64678).

ESTIMATED ANNUAL VALUE

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

MAXIMUM CONTRACT VALUE

This procurement is for an Indefinite Delivery Contract using FAR 15 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).

NIIN CAGE PART

NUMBER

CAGE NAME

014463620 5X050 403236 & 1643482

CRYSTEEL MANUFACTURING INC

014463620 64678 CMG403236

DAIMLER TRUCKS NORTH AMERICA

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

NSN: 3040-01-446-3620

(X) AMC 1. Suitable for competitive acquisition for the second or subsequent time.

(X) AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

A technical review in support of a potential LTC was performed on 03/20/2019 and it was found that this NSN is determined to be suitable for a long-term contract per the Product Specialists. The product specialist confirmed on 03/20/2019 that the AMC/AMSC Code of 1/R is accurate and that Crysteel Manufacturing Inc. (5X050) and Daimler Trucks North America (64678) are the only approved sources

In addition, per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CRYSTEEL MANUFACTURING INC. (5X050) and DAIMLER TRUCKS NORTH AMERICA (64678) have been identified as having the proper complete technical data and manufacturing expertise to supply this item to DLA and the using military services. Therefore, competition must be limited to offers of the product of CRYSTEEL MANUFACTURING INC. (5X050) and DAIMLER TRUCKS NORTH AMERICA (64678).

Cylinder Assembly is not available in the commercial market. A cylinder containing a piston and other component parts designed to develop linear motion required to operate a given object(s) with energy generated from either pneumatic or hydraulic pressure and is specific to the Truck, line haul tractor (M-915 Truck Series). The part itself is made of Chromium and the design characteristics is that it has a double acting single cylinder.

The government does not own the data for this part and CRYSTEEL MANUFACTURING INC.

(5X050) and DAIMLER TRUCKS NORTH AMERICA (64678) are the only approved part able to be used on the M-915 Truck Series.

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

(X) The acquisition was synopsis on 02/06/2019 with the solicitation being published soon after.

(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 15 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 using historical pricing determined fair and reasonable for the same or similar items, the Producer Price index (PPI) and learning curve analysis.

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) of PCU333613333613 – Mechanical Power Transmission Equipment and historical pricing. 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 02/04/2019, a sources sought notice was posted to FedBizOps, which also contained an attached market survey. No responses were received.

Commerciality:

Per FAR 2.101(b), the item in this solicitation have been determined by the Contracting Officer to be a non-commercial item. This determination is based upon the information obtained in the market survey and the NSN’s specification requirements. Buyer review of the COTS field in the Material Master of SAP indicates Non-commercial for the project NSN. Web searches were performed on the NSN and no commercial items were found on the internet. Furthermore, Triman Industries responded to the market survey stating this material was not commercial. The item is not maintained for stock by the dealer/manufacturer for sale to the general public. The item is not included on/in a catalog, commercial price list, or Internet Sales website. Therefore, it is the contracting officer’s determination that this item is not commercial, and FAR Part 15 practices will be applied.

Market Research Total number of vendors contacted: 3 Names of vendors contacted:

CRYSTEEL MANUFACTURING INC. (5X050) – No response DAIMLER TRUCKS NORTH AMERICA (64678) – Responded on 01/09/2019 and stated they would not quote directly to the Government.

TRIMAN INDUSTRIES (0ZBE8) - Responded on 01/29/2019

Techniques used to conduct survey: E-mail.

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

Triman Industries: A Market Survey was sent on to Triman Industries an authorized distributor for Crysteel Manufacturing (5X050) on January 16, 2019 and this company provided the basic information to our Market Research Survey. Triman is interested in providing pricing on any solicitation. They confirmed the following:

1. Triman is a Small Business, with approximately 35 employees and will be quoting on behalf of Crysteel Manufacturing (5X050), as an authorized distributor.

2. Part Number 1643482 is valid and procurable.

3. This item is not Commercially 4.

Additional facts supporting other than full and open competition are:

A technical review in support of a potential LTC was performed on 03/20/2019 and it was found that this NSN is determined to be suitable for a long-term.

9. TRIMAN INDUSTRIES is the only company that provided interest in quoting a long term acquisition and is providing the approved source CRYSTEEL MANUFACTURING INC. (5X050), Part number 403236.

10. 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 and L06.

Note: This is a not a new long-term contract requirement, NSN showed procurement history on the FASI contract and was provided by Lockheed Martin. No J&A could be found

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 Hanlon Date Contracting Officer

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

MARY E. SHEARER Date Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $700,000 Contracting Officer

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

HANLON.ELIZABETH.E

ASTON.1378372107

Digitally signed by

HANLON.ELIZABETH.EASTON.1378372107

Date: 2019.03.25 14:57:05 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.27 14:34:13 -04'00'