Redacted_-_JA.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-19-R-X011

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

LUBRICANT,RUNFLAT 2640-01-419-6200 27,903 3B

This requirement is for the acquisition of a LUBRICANT, RUNFLAT utilized by the United States Military on the following weapons systems. See attachment 1 for a complete list of end items for this item. 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 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).

NIIN CAGE PART

NUMBER

CAGE NAME

014196200 62161 D528235-H1

HUTCHINSON INDUSTRIES, INC.

DBA

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

NSN: 2640-01-419-6200

(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 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.

In addition, per the approved manufacturer parts list for this NSN 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 this item to DLA and the using military services.

Therefore, competition must be limited to offers of the product of HUTCHINSON

INDUSTRIES, INC. DBA.

Wheel bearing lubricants are available in the commercial market. The title of the article, “Top 12 Wheel Bearing Greases,” (Attachment 3) indicates there are many commercial greases available. This article also lists 4 different wheel bearing grease properties (Lubricating, Sticky, Anti-Friction, and Stability), indicating that each lubricant can vary within at least these four different properties.

Another article describes lubricant properties needed for a heavy-duty truck (Attachment 4), Attachment 5 is an article that explains considerations for lubricants and bearings in extreme temperature situations. The information that these two articles have in common is that the original equipment manufacturer (OEM) needs to specify the grease with the necessary properties for proper operation of the vehicle, etc.

Because there are so many lubricants available in the commercial market with many varying properties, it is not feasible to choose a product from the commercial market to purchase for the lubrication of the runflat wheels. The OEM (or in the case of the runflat lubricant, the ESA) must determine the proper lubricant for the operation of the vehicle. Therefore, commercial providers of lubricants must contact the ESA in order to become an approved source. Potential offerors will be notified of this in the solicitation.

The DLA Land and Maritime Product Specialist listed performance requirements for the Runflat system, which includes RIM AND BOLT ASSEMBLY – 1246017, RIM - 12460178, TIRE – 12342644, RUNFLAT 123426, SPACER – 12342911, and RUNFLAT LUBRICANT – 12460308. The runflat system must conform to the vehicle’s runflat performance requirement of at least 30 miles over the vehicle’s mission profile, specified by ATPD 2099C, dated 21 June 94, Mission Profile, paragraph 3. The runflat static load shall be able to hold 3,400 pounds at a minimum during operation.

The ambient temperature shall be 70-125 degrees Fahrenheit. Tire Beads and Runflat spacers shall not become dislodged from the wheel. The procedure shall be conducted with two deflated tires on one side of the vehicle, and the runflat system must allow the tire to meet or exceed requirements of SAE J2014, sections 3.4.1, 3.4.4, 3.4.5, and 3.4.6.

It is necessary to procure the lubricant intended for use on the runflat system to meet the performance requirements and best ensure the safety of the soldiers using the vehicle.

Though the lubricant is sold commercially, it is only available from Hutchinson Industries. There is no evidence that a standard, similar commercial lubricant can support these military specific vehicles.

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

(X) The acquisition will be synopsis was posted on or about 11/14/2018 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 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. 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) of PPI3251 Basic Chemical Manufacturing forecasts and the commercial market place 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 10/29/2018, a sources sought notice was posted to FedBizOps, which also contained an attached market survey. When the sources sought notice was originally posted, it included multiple approved sources. No responses were received. After the notice closed, it was determined that there was only one valid source. No responses were received from the notice (Attachment 6).

Market Research Total number of vendors contacted: 4 Names of vendors contacted:

DELA TECHNOLOGIES CORPORATION – RESPONDED - NO BID

HUTCHINSON INDUSTRIES, INC. DBA (62161) – RESPONDED 10/30/2018

AM GENERAL LLC (34623) – NO RESPONSE

GERERAL DYNAMICS LAND SYSTEMS 56161 – NO RESPONSE

Techniques used to conduct survey: E-mail.

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

HUTCHINSON INDUSTRIES: A Market Survey was sent on to HUTCHINSON INDUSTRIES on 10/26/2018, the company responded on 10/30/2018 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 and

They also confirmed that this is available commercially. An invoice was submitted by Hutchinson Inc. for the sale of this P/N to

This item is determined to be commercial of a type customarily available in the commercial market or commercial of a type with minor modifications to meet military

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

A technical review in support of a potential LTC was performed on 11/6/2018 and this NSN is determined to be suitable for a long-term contract. The Product Specialists reviewed the technical information and have certified it as complete and accurate.

10. Hutchinson Industries Inc. CAGE 62161 is interest in a long-term acquisition and is 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 L22, Restriction of Alternate Offers for Source Controlled Items. It states that offerors who are interested in qualifying their product for purposes of future acquisitions must contact the design control activity specified on the source control drawing.

Note: This is a not a new long-term contract requirement, the last LTC was solicited with multiple approved sources, so there is no past J&A to attach. After the solicitation closed with only one offer, DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A)

(April 2014) the invalid sources were removed.

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.

614-692-9252 11/ /2018

REBECCA H. HARTGE 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

Attachments:

Attachment 1 – End items Attachment 2 – commerciality memo and invoices from Hutchinson Inc on the past procurement.

Attachment 3 – Top 12 Wheel Bearing Greases Attachment 4 – Lubricants for Heavy Trucks Attachment 5 – Extreme Temps

HARTGE.REBE

CCA.H.1273657

Digitally signed by

HARTGE.REBECCA.H.127

3657475 Date: 2018.11.20 13:25:09 -05'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702

Date: 2018.11.26 00:51:58 -05'00'

614-692-3760 11/26/18