J and A for SPE7MX-19-R-0148.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7MX-19-R-0148__

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

(April 2014)

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 an item of supply on other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Quantity Contract (IQC) for a Storage Battery for the High Mobility Multipurpose Wheeled Vehicle (HMMWV).

The proposed acquisition is for DLA-managed item with one approved source: Optima Batteries (CAGE 0UJ55). The acquisition includes a single NSN.

DLA Land and Maritime intends to enter into a fixed unit price, IQC consisting of a three-year base period and 2 option years.

3. The item of supply required to meet the using activity's needs is described in the table below.

CLIN ITEM NSN ADQ ADV AMSC

0001 STORAGE BATTERY 6140014414272 14,815 Z

Identify end item, weapon system, or class of item: The highest end item being supported is 80A (HMMWV).

ESTIMATED BASE YEAR ONE VALUE_

ESTIMATED TOTAL VALUE (3 YEAR BASE) _

MAXIMUM CONTRACT VALUE _

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING ___________________

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:

Optima Batteries (CAGE 0UJ55)

The use of the authority cited is based on:

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

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

[X] AMSC Z. This part is a commercial/nondevelopmental/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 (When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or appears on a commercial cross reference list, this constitutes full and open competition and a J&A is not necessary).

NSN 6140-01-441-4272 is available only from the coded source Optima Batteries (0UJ55) under part # 8014-045.

At this time only Optima Batteries has been identified as having the data necessary to manufacturer this item and have the technical data and manufacturing knowledge necessary to ensure the battery supports the military vehicle.

Technical review on the NSN was completed on 1/29/19 and certification received confirming the AMSC coding and the fact that all means to obtain a technical data package adequate for manufacture of the item had been exhausted.

This acquisition will satisfy currently forecasted customer requirements and ensure DLA is able to support in a timely manner. Acquisition Specialist must rely on the AMC/AMSC coding (3Z) and approved source information for this NSN in proceeding with this procurement. As salient characteristics were available on line, Acquisition Specialist transmitted a technical referral on 6/2/19 regarding reviewing NSN as a possible candidate for Brand Name or Equal (BNOE). A response was returned by VEB (Reverse Engineering) on 8/13/19. NSN was researched and is not a good candidate for BNOE or reverse engineering. This battery uses a unique (patented) “gel cell:” technology that is different from other batteries. This technology provides some different characteristics – it is spill proof, handles vibration better, it allows deeper discharge cycles, has lower self-discharge rates and faster recharge times. All of these make this battery unique and different from anything else on the market.

VEB representative indicated in speaking with the battery expert within V and she confirmed that the battery technology is unique and patented. The Government is not allowed to reverse engineer patented items. The patents also mean that other companies cannot provide a battery with the same salient characteristics.

The approved source information for this NSN is as follows:

NSN Item Approved CAGE Company Name Part Number 6140-01-441-4272 Storage Battery 0UJ55 Optima Batteries 8014-045

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

(X) The acquisition will be synopsized 15 days prior to solicitation issuance.

( ) Manufacturers of similar products identified in the market research will be solicited.

( ) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies (explain).

(X) Other (Explain) a sources sought was posted on FEDBIZOPPS on 6/6/19 with a return response of 6/13/19. No responses were received as a result of the sources sought that was posted.

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

Cost or pricing data in accordance with FAR 15.403-4 will not be required as NSN has been determined commercial. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. Comparison will be made with web pricing and GSA schedule pricing. By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a three-year base period and two option years.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Market research questions were emailed to the approved source of supply on 6/4/19 with answers to questions posed returned on 6/5/19.

A sources sought was posted on FEDBIZOPPS on 6/6/19 with a response date of 6/13/19. The sources sought resulted in no companies showing interest in proposing on the requirement.

Market Survey [10 U.S.C. 2304(f) (3) (D)]:

A market survey was conducted on/during June 5, 2019 through June 13, 2019 by the Acquisition Specialist.

Total number of vendors contacted: 1

Names of vendors contacted and responding: Vendors contacted were: Optima Batteries

(0UJ55).

Techniques used to conduct survey: Email and posting a sources sought on FEDBIZOPPS.

Types of information requested: Company was asked of its continued interest in proposing on item based on long term contract, quantity range information, estimated delivery timeframe, correct part number designation, its business size, whether item is hazardous or not and whether they keep any stock.

Summary of information received:

Optima Batteries (0UJ55): Company responded by email with its market research information on 6/5/19. Company is a large business concern. They have continued interest in proposing on NSN on a solicitation for a long term contract.

. All Optima products are Commercial- Off- the- Shelf (COTS).

Through previous market research conducted company had indicated they are the manufacture of the item and

Information received regarding the commerciality of the item(s): Solicitation resulting in current LTC for NSN was solicited based on FAR Part 12 procedures. Optima Batteries indicates its battery is commercial. Item is on GSA schedule and shows being offered on the web by 12 companies including: A-1 Racing Products, Advanced Auto Parts, Big Time Battery and Ecklers Automotive. The commercial field in EBS shows “Y” for NSN.

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 technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

J&A was prepared for previous solicitation involving NSN of SPE7MX-17-R-0063. J&A indicates that solicitation was synopsized and included procurement notes L04 Offers for Part Numbered Items and M06 Evaluation of Offers for PN items. Refer to attachment #1.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Optima Batteries (0UJ55)._

11. The following actions are being taken to identify additional sources:

(X) The solicitation contains DLA Procurement Notes L04, Offers for Part Numbered Items and M06, Evaluation of Offers for Part Numbered Items.

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items.

The DLA Land and Maritime Value Management Unit continually seeks out sole source, limited competition over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact information for both the DLA Value Engineering program and the DoD Value Engineering Program.

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 $700,000, this signature serves as the approval.

Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

Head of the Contracting Activity (HCA) Signature

APPROVAL REQUIREMENTS

[X] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

HAYDEN.ESTHE

R.A.1206755578

Digitally signed by

HAYDEN.ESTHER.A.120675557

Date: 2019.08.23 08:14:35 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.09.04 13:14:43 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2019.09.10 12:52:52 -04'00'