SPE7LX19R0139 - Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX19R0139

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

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. Other than full and open competition basis per FAR 6.302-1 and 10 U.S.C.

2304 (c) (1) will be utilized since after market research (FAR 10) was conducted and the DLA Land and Maritime technical data that was presented/reviewed indicates the NSNs are sourced to Otis Products Inc. DBA Otis (01VS3) (Otis). Otis is the only known provider of these items. We are limiting competition to the manufacturer’s items; not who can participate in solicitation, as we will openly welcome competition amongst dealers/distributors.

3. The supplies required to meet the using activity's needs are described on below. There is a current long-term contract, SPE7LX16D0008 that expires on 22 Oct 2020. This will be a long-term contract for a base period of three-years and two one-year option years, to be exercised at the Government’s discretion. This contract will serve as the successor to that contract and if pricing is better, the last year of the current contract may not be exercised.

NSN

Item

ADQ

ADV

AMC

AMSC

1005014242999 CLEANING KIT, GUN 23,066 3 Z

1005014488513 CLEANING KIT, GUN 21,145 3 D

1005015267354 CLEANING KIT, GUN 7,916 3 C

1005015287843 CLEANING KIT, GUN 3,555 3 D

1005015616181 CLEANING KIT, GUN 3,777 3 D

ADV

5-Yr

ADQ=Annual Demand Quantity (also Estimated Annual Quantity) ADV=Annual Demand Value

The approved part numbers are included below.

NSN Approved Source CAGE Part Number

1005014242999 OTIS PRODUCTS, INC. DBA OTIS 01VS3 MFG-224

1005014488513 OTIS PRODUCTS, INC. DBA OTIS 01VS3 MFG-223-2

1005015267354 OTIS PRODUCTS, INC. DBA OTIS 01VS3 MFG-85211-5

1005015287843 OTIS PRODUCTS, INC. DBA OTIS 01VS3 MFG-645-1

1005015287843 OTIS PRODUCTS, INC. DBA OTIS 01VS3 645-1

1005015616181 OTIS PRODUCTS, INC. DBA OTIS 01VS3 MFG-556-9MM

Identify end item, weapon system, or class of item: Maritime platforms included but not limited to: Navy Expeditionary Programs, Trident, Littoral Combat Ship, Destroyer, and Ford Class Carriers

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

ESTIMATED 3-YEAR BASE PERIOD VALUE:

MAXIMUM CONTRACT VALUE:

Procurement History is available – Attachment II

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

Based on the technical certification, dated 25 March 2019, that was provided by SAPD Technicians, the Government does not own the drawings for these items to allow for full open and competition. Based on technical review and certification, these items are to be procured from the sole source manufacturer, Otis. The technical certificate from SAPD Technician is attached to this document (Attachment III). Otis is the only company known by the Government to possess the technical data necessary to manufacture this item.

The cleaning kits and parts support a variety of weapon systems that soldiers are using in all branches of the Armed Forces. These custom-made kits and parts are essential for weapon systems to be properly cleaned and maintained and to avoid ammunition from getting lodged into the bore during critical situations. These kits are specifically designed to clean and maintain the C7, M16, M249 SAW, M4, Mod 46 and all other 5.56MM, 9MM and 40 mm variants. Each kit contains a solid blackened brass components and flexible cleaning rods to clean any barrel length. Within the kits are caliber patches and heavy duty bore brushes that can easily string the copper from bores. The flexible cleaning rods and swabs can quickly clean a receiver, chamber, neck and bore. Also within the kits are scrapers, picks, and brushes to clean the receiver, trigger group and bolt. All components are neatly backed in an 11oz., pocket size soft pack case. There is no other known source that can manufacture these items to meet the needs of the Government.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4:

As stated above, these items are used on various Maritime end items (platforms). The items are being deemed commercial as they are available to the public through various website. This determination will be further explained below. When the military provisioned the items, it was determined that the technical data would not be purchased or made available for anyone to produce the gun cleaning kit, hence the limiting of competition when it comes to the manufacturer of the items. There is no limit as to who can participate in the solicitation so any dealers/distributors of Otis are able to participate in the solicitation.

The product specialist reviewed the technical information and “has been reviewed and is recommended for LTC” on 25 Mar 19. The technical data has indicated that these gun cleaning kits are limited to Otis as the source. The kits, themselves, include various tools that can be used to clean the Government issued firearm. The kit includes tools, brushes, Q-tips, picks and other utensils that are used to the Government firearm.

The procurement item descriptions (PIDs) for each NSN are included as Attachment 1.

The use of the authority cited is based on:

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

AMSC C. NSN: 1005015267354 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.

AMSC D. NSNs: 1005014488513, 1005015287843, and 1005015616181 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.

AMSC Z. NSN: 1005014242999 This part is a commercial/no-developmental/off-the-shelf item.

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.

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

A sources sought notification was completed and posted on the FBO website and was posted for 8 days. There were no responses to the sources sought notification. FAR 12 policies and procedures will be utilized.

solicitation will be available for a period of 0 days.

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

Certified cost and/or pricing data will not be required for these items. These items are being deemed commercial and are available to purchase by the public through various internet website to include www.amazon.com; www.brownells.com; and www.opticsplanet.com. These items are currently on a long-term contract. The proposed pricing will be evaluated by using a price analysis technique where the proposed unit price is compared to the historical price that is inflated by using the producer price index (PPI) to ensure the price is adjusted to the current market and then two learning curves will be applied. Those learning curves will be 95 and 99 percent. In addition to the price analysis, a comparison will be conducted between the proposed price and the commercially available unit price for each item. The Government will use a combination of the commercial marketplace pricing and the price analysis to determine its low and high target objectives. If the targets and proposed pricing have a significant gap between them, then the Government may seek to ask for an informal cost breakdown from the offers to ensure that price is fair and reasonable. Based on the above techniques, it is anticipated that the prices will be deemed fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

As mentioned above, a sources sought was posted on FBO prior to the project being assigned.

The notice was published on 16 January 2019 with a response date of 23 January 2019. That sources sought notice was available for 8 days and included a market survey attachment along with the proposed NSNs. According to the file documentation, there were no responses received from the sources sought notice.

When the project was assigned, additional market research was conducted which included internet searches to validate the Otis part numbers. When those internet searches were conducted, several sites appeared that have the items available. The websites that were used that were not www.otistec.com included www.amazon.com, www.brownells.com, and www.opticsplantet.com. Attachment IV includes the commercial internet searches and their pricing available as of Jun 2019.

In accordance with FAR 2.101, the Contracting Officer has determined this item to be commercial because it is of a type customarily used by the general public and it is offered for sale to the general public.

The market survey was also sent to Otis, who indicated that all part numbers were valid and they supplied their pricing sheet that listed all their part numbers and pricing on 17 January 2019 and then validated that January information in June 2019.

Otis is a small business with less than 200 employees. Their market survey references looking to add additional items to the package but upon review, it would seem that those items are not able to be added to the current package.

Market research was also conducted to show that there were other companies that have provided the item in the past but those companies only ever provided one of the five items and the history shows that those awards were from 10 years or so ago. Given the length of time, the fact that the awards were automated or conducted a manual procurement under the simplified acquisition threshold at the time, and that only one of the five items had history available, those companies were not contacted to answer/participate in the market research.

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

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 for these items. 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:

Otis Products Inc. DBA Otis / 01VS3

11. Actions being taken to overcome barriers to competition:

Procurement Notes, L04 and M06 Evaluation of Offers for Part Numbered Items, will be included in the solicitation. The provision explains how offerors can submit technical documentation to have their item reviewed as an alternate part number.

DLA Land and Maritime, specifically the Land technicians and the engineers have been communicating with the Engineering Support Activity (ESA) for the services to determine if brand name of equal acquisitions strategy can be pursued for these items in the future based off of readily available salient characteristics. DLA Land’s technician has submitted a 339 for each NSN to have the services provide their recommendation. Once that recommendation is received, DLA Engineering directorate may assist in breaking out the gun kits to allow for full and open competition if possible based on the findings from the ESA. The timeframes that have been provided by both the land technicians and the engineers equate to about 24 months and therefore, the acquisition will move forward. If the result of the 339 and DLA Engineering efforts conclude in creating a brand name or equal description before contract award, then an evaluation will be done to re-solicit or cancel the project. In the event that the 339 and DLA Engineering efforts are completed after the award, option years may not be exercised.

12. There was not a J&A in the e-contract file for contract SPE7LX16D0008; the contract that is loaded into Records Management (RM) under SPE7LX16D0008 does not have the same contract number. It appears that the contract number used to load the documents are not for SPE7LX16D0008. The basic contract administrator looked in the physical contract file, and the Contract File Content List did have Tab 4.

Attachments:

I PID-PKG

II Procurement History III Technical Certificate from SAPD – Technician IV Commercial Determination

V SPE7LX16D0008 J&A

VI SPE7LX19R0139 Tech Email Clarification

DLA Land and Maritime Justification and Approval for Other than Full and Open Competition (J&A) (April 2014)

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.

Contracting Officer

Approval/Certification

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

614-692-3670

MARY E. SHEARER

Competition Advocate

Date Phone

MARK A. BROWN, SES

Head of the Contracting Activity (HCA) Date

APPROVAL REQUIREMENTS

(X) $13,500,00 –$93,000,000 Head of the Contracting Activity (HCA)

JULIE M. MILLER

Date 614 692 4841

Phone y g

JULIE M. MILLER

SHEARER.MARY.E.125070

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.09.18 11:24:15 -04'00'

BROWN.MARK.ALBERT.10

41175032

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2019.09.18 11:41:06 -04'00'