SPE7LX19R0085 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-19-R-0085

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 1

[X] ORIGINAL

[ ] 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/services on other than a full and open competition basis.

3. The supplies/services 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

SLING, SMALL ARMS 1005-01-604-0627 47,631 1 Z

3-year estimated base value -

5-year estimated total value = Contract maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one three-year base period and two separately priced one-year option periods. The 3-year base period estimated value is

, and the base period plus two option years’ estimated value is (ADV x5).

The contract maximum is same as the 5-year value. Estimated values were recommended by the Strategic Sourcing Specialist on the data pull dated 11/15/2018. Historical and forecast usage data was used to establish referenced total. Records indicate the current contracts, SPE7LX-16-D-0077 & SPE7LX-16-D-0078, expire on March 2021. However, demands are high for this is a SuperKID/Core item and referenced contracts will potentially max-out by mid-2020. The Contracting Officer determined these values suitable for this acquisition. Refer to the NSN Data Pull for additional details including the AMC/AMSC, NAICS, Approved Sources, etc. **A Tech Ops Review took place on 5/19/2019. The AMC/AMSC codes changed from 1 P to 1 Z.

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

The NSN is tied to weapon system 8OM, which is identified as Rifle, 5.56 Millimeter and is used by the US Marine Corps. This rifle is the M27 infantry automatic rifle (IAR) that uses 5.56 mm caliber ammunition, and its primary uses are for highly accurate single shot fire (out to 800m), along with close grouping automatic rapid fire to simulate the actions of a belt-fed machine gun.

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:

CAGE 00PX1 / Raine, Inc.; CAGE 3X9S8 / Blue Force Gear, Inc.

The use of the authority cited below:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

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The use of the authority cited is based on:

[X] AMSC Z. This part is a commercial/non-developmental/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. If at least two sources are available, AMCs 1 or 2 are valid.

[X] Other: (Explain) The Government has reserved the right to approve sources. Per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CAGEs 00PX1 and 3X9S8 have been identified as having the technical data rights and manufacturing expertise to supply the items to DLA and the using military service.

In addition, the Product Specialist of record /FLDA, stated as follows –

This Sling, Small Arms has been tested and only two sources have been approved by the Marine Corps System Command. The Marine Corps System Command has performed multiple stress and operational tests on various slings submitted to them for acceptance and only two commercial versions have been approved for use in combat situations. Prior to the testing being more restricted the Marines were having multiple failures of the sling not staying locked in position for the soldier. There were buckle issues and sling material dimensional problems. One of my team members was actually a soldier who had to deal with the faulty Slings.

This item is to remain restricted to (CAGEs 00PX1 and 3X9S8) the only two sources approved by the Marine Corps System Command for use by our Military Soldiers. Even though both companies also sell their approved Slings as a commercial item does not mean they are of the same low quality of other manufacturers. Any new vendor who wants to be added as a source for this item must contact the Marine Corps System Command (USMC ESA) and provide the Marines with a SAR package and multiple exhibits to be tested by the Marine Corps System Command. DSCC will not accept additional sources without prior Marine Corps System Command testing and approval.

Therefore, competition must be limited to offers of the product of CAGEs 00PX1 and 3X9S8. Most recent technical reviews were conducted 5/19/2019 for the NSN (per SAP) and no additional sources were identified at that time. Formerly a technical review in support of a potential LTC was performed on 8/3/2018. The NSN was determined to be suitable for an LTC at that time.

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

[X] The acquisition was synopsized on or about 3/13/2019.

[X] Dealers of the manufacturers were solicited.

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

This will be a five-year, firm fixed price, indefinite delivery indefinite quantity type contract. 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. Based on the results of market research, the buyer anticipates receiving more than one offer, and adequate price competition is expected to exist at time of evaluation of proposals.

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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:

On 9/19/2018, a Sources Sought notice was posted to www.fbo.gov, which also contained an attached market survey. The date of return referenced on the sources sought notice was 9/25/2018.

No responses were received or additional sources are currently being evaluated.

Market Research:

A summary of market research dated 11/14/2018 was provided along with the project package by the Sourcing Strategy Branch ZAA. Five sources were contacted – (CAGE) 3X9S8 / Blue Force Gear, Inc.; 00PX1 / Raine, Inc.; 3HN73 / Heckler & Koch Defense Inc.; 1CAY9 / Atlantic Diving Supply;

and 72B58 / Defense Venture Holdings, LLC. The results of the surveys are documented below.

1. CAGE 00PX1 RAINE INC

(a) Small manufacturer with a preference to do business with the government

(b) 14 employees

(c) Is willing to pursue an LTC with DLA L&M (d)

(g) Stated this item is commercial per FAR 2.101(b)

(h) As a small business this requirement is not too large for them to handle (i)

2. CAGE 1CAY9 ATLANTIC DIVING SUPPLY:

(a) Small dealer business with a preference to do business with the government

(b) 400 employees

(c) They are independent from the OEM: CAGE 3X9S8 Blue Force Gear

(d) Is willing to pursue an LTC with DLA L&M (e)

3. CAGE 72B58 DEFENSE VENTURE HOLDINGS, LLC:

(a) Small (SDVOSB) dealer business with a preference to do business with the government

(b) 12 employees

(c) They are independent from the OEM: CAGE 3X9S8 Blue Force Gear

(d) Is willing to pursue an LTC with DLA L&M (e) (f)

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4. 3HN73 / HECKLER & KOCH DEFENSE INC.:

Did not complete the survey, but indicated that a cheaper alternate source was previous proposed to DLA. Referenced source was not deemed acceptable and they do not see any future likelihood of making any successful offers going forward.

Additionally, a review of the GSA Schedule website showed that the NSN and corresponding part numbers were not listed. The NAICS code associated with this NSN is 332994, Small Arms Manufacturing. The large business size for this NAICS is 1,000 employees.

Techniques used to conduct survey: E-mail and Sources Sought notice.

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

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

A review of the previous long-term contract solicitation SPE7LX-16-R-0049 indicates a determination of commerciality was made by the Contracting Officer, 16R0049 Acquisition Plan which included that commerciality determination on Page 7 is included in Stack I. A review of the COTS field in the material master for this NSN in SAP shows an entry of ‘Yes’, indicating that the technical community has made a recommendation that the NSN be determined commercial by the contracting officer. While the field is marked as Yes for COTS, the Contracting Officer does not determine it to be COTS, as the item is not for sale from stores where it can be bought directly off the shelf. The item is for sale directly from the manufacturers website to the public, but is not something available off the shelf in every Home Depot or Wal-Mart. The item is determined to be commercial per Commercial Item definition 2.101(1)(i), item that has been sole, leased or licensed to the general public. Per the market surveys returned by 00PX1 / Raine, Inc.; 1CAY9 / Atlantic Diving Supply; and 72B58 / Defense Venture Holdings, they consider the item to be commercial in nature. Therefore, based on the publicly available information about this NSN and market research results, the Contracting Officer has determined that this NSN is 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, the rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. 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) 00PX1 / Raine, Inc.; 1CAY9 / Atlantic Diving Supply; and 72B58 / Defense Venture Holdings, LLC.

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

[X] The item being procured is already on LTC Contracts; previous J&A approved by the Competition Advocate on 12/18/2015 is included for reference, see Attachment #1.

[X] The solicitation contains DLA procurement notes L04 and M06, Conditions for Evaluation and Acceptance of Offers for Part Numbered Items [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.

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Attachments:

1) Previous J&A for Solicitation SPE7LX-16-R-0049

* NSN Data Pull, Market Research Summary, & 16R0049 Acquisition Plan are included the Stack I, Pre-Award – Miscellaneous Documentation.

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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 $750,000, this signature serves as the approval.

Carrie Krafft Spayde Contracting Officer Date

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] $750,000 to $13,500,000 Competition Advocate

08-08-19

SHEARER.MARY.E.125

0702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.08.13 08:40:37 -04'00' 8/13/2019

KRAFFT

SPAYDE.CARRIE.L

.1299372029

Digitally signed by KRAFFT

SPAYDE.CARRIE.L.1299372029

Date: 2019.08.08 14:19:46 -04'00'