SPE7LX-20-R-X031 - reviewed_Redacted...pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-X031

[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 on other than a full and open competition basis. The solicitation will be conducted under the policies of FAR Subpart 13.5 “Simplified Procedures for Certain Commercial Items.” Per FAR 13.501(a)(1): Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. Also, per DLAD 13.500(4), “A Justification and Approval (J&A) is required only for sole source acquisitions.” DLA Land and Maritime proposes to enter into a firm-fixed price, indefinite quantity contract. The solicitation will be for a total of three years, which includes one three-year base period.

3. The supplies required to meet the using activity’s needs are described as follows:

CLIN NSN UI ADQ ADV AMC AMSC

0001 2610-01-627-2267 EA 176 1 Q

ESTIMATED TOTAL VALUE:

MAXIMUM CONTRACT VALUE:

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:

CLIN: 0001

CAGE and Part Number: Pomp’s Tire Service, Inc. (1T1Z4) p/n B424976MIL CAGE and Part Number: JCB Inc. (0JKF0) p/n 347/20193

This tire is used on the High Mobility Engineer Excavator (HMEE-I) weapon system manufactured by JCB, Inc. (JCB).

The use of the authority cited in other than 10. U.S.C. 2304(c)(1) above:

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

The use of the authority cited is based on:

AMSC Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months.

Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b).

If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. The sources listed above are the only approved sources and they are the only known sources to own or possess the technical data necessary to manufacture this item.

Efforts to break out this item for competition are currently being reviewed by the Engineering Source Activity as of 2/28/2020. If the necessary information is obtained in order for this item to be competed

Justification for Other Than Full & Open Competition (December 2011) on a full and open basis, the coding will be appropriately changed and a new acquisition for this item will commence.

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

The acquisition will be synopsized in March of 2020.

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

Cost and Pricing Data is not required per FAR 15.403-1(b)(3) for the item listed above. This item is being solicited i/a/w Subpart 13.5 “Simplified Procedures for Certain Commercial Items. In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contracting Officer must ensure that contract terms, conditions, and prices are commensurate with the Government’s need. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR Subpart 15.4. The buyer may request information other than cost or price data to support price reasonableness if necessary.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought notice, with a copy of the market survey attached, was posted on beta.SAM.gov from 2/13/20, through 2/19/20, with no responses received.

The Contracting Officer asked Red River Army Depot what they were using the tires for specifically as they were identified as being the user of this tire with purchase requisitions that unexpectedly maxed out the previous contract. They indicated that they were using them for the HMEE-I, which is the High Mobility Engineer Excavator, and manufactured by JCB Inc. (JCB). A picture of the HMEE-I shows that the tire is made by Bridgestone. Bridgestone’s tire size is 445/80R25, part no. 424976. It is made for fire and rescue vehicles, military applications and high-speed cranes. A review of the tire for purchase on the commercial market shows that you can order it from otrusa.com for $3,295.00, and is listed for purchase on a dozen other websites as well, but you would have to call for a price.

Market research was also conducted to gather information regarding commerciality of this item.

, from Pomp’s Tire Service (Pomp’s), indicated that they could supply the estimated annual demand of 200-250 as they currently have 145 in stock. also indicated that for

The Contracting Officer asked if

Bridgestone was the only manufacturer for this tire and yes. He also stated Michelin makes a tire this size, but it is not approved for the HMEE-I; however, it is approved for another NSN along with the Bridgestone part number for this NSN. It was confirmed by the Product Specialist Supervisor, , that the Michelin part number is not approved for this

Justification for Other Than Full & Open Competition (December 2011)

NSN as the side wall strength of the Michelin tire is not strong enough for the lateral movements and off road applications of the HMEE-I.

The Contracting Officer contacted Bridgestone Americas Tire Operations, LLC (073A9) and spoke with . He indicated Bridgestone is a manufacturer for that tire, but they are not approved as the tire was approved through JCB for the weapon system and Bridgestone had not requested approval from his knowledge. He indicated that they had received awards in the past, but had also lost to Pomp’s. The Contracting Officer told what the delivery terms are, the ADQ and that the future requirement would be for the Global Tires Program (GTP) and if he was interested and he indicated that he was.

The Contracting Officer also contacted JCB (0JKF0) although they had never received any awards based on a review of the procurement history. Based on the initial exchange, JCB indicated that they were interested in pursuing this opportunity. The Contracting Officer responded to at JCB, provided further details about the opportunity to include delivery, and if they were still interested. The Contracting Officer tried multiple times to obtain answers to the questions provide to JCB, but responses were never received.

9. The confirmation of sources listed above was completed by the Product Specialist Supervisor,

y. However, based on the information received by Pomp’s and Bridgestone and the additional market research obtained by the Contracting Officer, the Contracting Officer requested have the actual Bridgestone CAGE and part number to be approved by the Engineering Support Activity and added to the Product Item Description (PID) on 2/20/20. On 2/20/20, the Contracting Officer emailed requesting that he provide the actual Bridgestone CAGE and part number. indicated that the new part number is 419303 and is manufactured by Bridgestone CAGE 22337 (his parent company). This was forwarded on to on 2/20/20.

10. Although JCB and Pomp’s are providing Bridgestone’s tire, Pomp’s has actually received the most recent awards. They have done so because they are such a large tire dealer and buy in bulk from Bridgestone (22337). Although not a manufacturer, they have had the ability as a dealer to compete against the manufacturer’s representative and win.

11. Based on the limited data the Government possesses, only Bridgestone can meet the Government’s minimum needs for this item. As stated earlier, the request to have Bridgestone (22337) listed as the approved source for future actions has been made. This cataloging action will not effect the procurement as JCB, Pomp’s and Bridgestone (073A9) all obtain these tires from Bridgestone (22337) for which other companies have the ability to as well.

12. 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 for this CLIN and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

13. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition before any subsequent acquisitions or recertification of class determination are made, these items are subject to the following methods of locating additional sources: The

Justification for Other Than Full & Open Competition (December 2011) solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items.

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. If not exceeding $700,000, this signature serves as the approval.

Charles E. Mielke II, Contracting Officer Date

APPROVAL/CERTIFICATION

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

Competition Advocate Date Signature

APPROVAL REQUIREMENTS

[ x ] $700,000 - $13,500,000 Competition Advocate

3/9/2020

2/28/20MIELKE.CHARLES.EVANS.II.1

253169750

Digitally signed by

MIELKE.CHARLES.EVANS.II.1253169750

Date: 2020.02.28 14:25:18 -05'00'

SHEARER.MARY.E.1250702

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.03.09 09:12:59 -04'00'