SPE7LX21R0060 - Justification_Approval.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX21R0060

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

The use of the authority cited is based on:

[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.

For NSN 2510014732309, the Engineering Support Activity (ESA) has updated the Technical Data Package (TDP) and added Ashley Industrial Molding as an approved source. The source control drawing now identifies only AM General (34623) Ashley Industrial Molding (5LRZ6) as approved sources for this NSN. This item must be acquired from the approved sources despite the item being determined commercial. The referenced hood is considered of-a-type customarily used by the general public for non-governmental purposes. DCMA has indicated that there are many aftermarket equivalents available to the general public for the HMMWV and HUMMER owners and enthusiasts. For both Military and Commercial use, the form and fit will be specific to the end item; however, the function remains unchanged. Reality is that any supplier can still seek source approval through the [U.S. Army Tank-automotive and Armaments Command] TACOM Competition Management Office and can be added to the drawings once approved.

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

• A sources sought notice was issued on January 14, 2021 on beta.SAM.gov for a period of five business days.

• The acquisition was synopsized on February 8, 2021 on beta.SAM.gov, for a period of 15 days.

• Solicitation will be posted on Fed Biz Ops and the DLA Internet Bid Board System (DIBBS) for a period of 30 days.

6. I hereby determine that the anticipated cost to the Government will be fair and reasonable. It is the Contracting Officer’s determination that this item falls under the commercial item definition at FAR 2.101 (1)(i)- Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes and has been sold, leased, or licensed to the general public. Cost and Pricing Data is not required per FAR 15.402-1 (b) (3) as this item will be solicited in accordance with FAR 12—Acquisition of Commercial Items. The Contracting Officer will use historical prices, market prices (i.e. comparison based on marketplace or offers/pricing to other customers), market research, and/or pricing information provided by offerors. The buyer will also use commercially available prices (i.e. Internet pricing and/or sales invoices) as applicable to aide in fair and reasonable determination.

7. Market Research/Efforts to Obtain Competition:

Similar Acquisition Efforts: This NSN was originally on the HMMWV small business set aside project

CL19116001. At solicitation closure, there were three offers received from Brighton Cromwell, Janel’s Industries, and JML Logistics. These companies all withdrew their offers when unable to supply the cost or pricing data requirements from Ashley Molding. JML Logistics responded that Ashley Molding would no longer supplier the engine hood parts to anyone other than AM General. This issue was addressed on a similar engine hood part under solicitation SPE7LX19R0181. The Contracting Officer notified Ashley Molding and their previous distributor, Janel’s Industries, that DLA could not confirm their assertion that the tooling in Ashley's facility is Government-owned.

Sources Sought: A sources sought notice with a market questionnaire was issued on beta.SAM.gov on January 14, 2021, for a period of five days. There was a total of four responses to this notice:

o Blankenship Enterprises of Pinellas County Inc. (dba Exacta Tool and Engineering (6US04) responded the same day and said they are interested in getting added as a potential supplier. The Contracting Officer responded that the drawings will be posted once the solicitation is issued and that an AMSC of B means this item is source-controlled item and any alternate offers cannot be evaluated by this office. DLAD Procurement Note L22 applies to Source Controlled Items. Offerors who are interested in qualifying their product for purposes of future acquisitions must contact the design control activity on the source control drawing for evaluation. The Contracting Officer sent them the website for the source approval request (SAR) information and said they will be notified once the solicitation is released.

o AM General (34623) responded to this notice with a complete market questionnaire and showed interest in quoting this NSN directly to the Government. They identified this as a commercial item.

o JML Logistics (6NRE7) responded on January 4, 2021, said in email “Ashley Industrial Molding is only quoting AM General for the hoods now, so we have nothing to offer.”

o Janel’s Industries (3B8L1) responded on January 22, 2021, with an email from Ashley Molding that confirms they will not quote this item to Janel.

Commercial Research: During market research, AM General asserted a commerciality claim for the subject

NSN. The base truck HMMWV is considered commercial and many of the parts on the bill of material (BOM) for this base truck have been sold to the public or are offered for sale to the general public. Many consumers purchase military surplus Army HMMWVs and convert them for personal use or buy used Hummer H1’s. There remains a large community of military and automotive enthusiasts that own and continually restore, maintain, and upgrade Humvees. This has sustained a thriving market for new, refurbished, redesigned, and surplus Humvee parts. AM General has continued to sell and support aftermarket parts for these vehicles.

A similar engine hood NSN 2510016283889, was recently reviewed by the DCMA Commercial Item Group (CIG) and determined commercial under solicitation SPE7LX19R0181. The similar NSN was considered of-a-type customarily used by the general public for non-governmental purposes. The form and fit will be specific to the end item; however, the function remains unchanged.

The Contracting Officer has determined NSN 2510014732309 is commercial under FAR 2.101 (1)(i)- Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes and has been sold, leased, or licensed to the general public. A NSN search revealed multiple part numbers and suppliers in the commercial marketplace. The Contracting Officer has determined this solicitation will be issued under FAR 12- Acquisition of Commercial Items.

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

Based upon the technical certification by DLA Land and Maritime – SAPD dated December 14, 2020, acquisition of this part is restricted to source (s) specified on a Source Control and, Altered Item or A Selected Item drawings/documents. All means to obtain a technical data package adequate for manufacture of the item has been exhausted. The Product Specialist has stated that portions of the design of this item are proprietary and are not included in the Technical Data package (TDP).

In other words, this TDP is not complete, and DLA cannot get all of the necessary technical data to permit full and open competition. An alternate source must qualify in accordance with the design control activity’s procedures, as approved by the cognizant Government engineering activity. During the technical review the DLA Land and Maritime SAPD Product Specialist certified this NSN’s AMC/AMSC and verified the approved source(s). There are no pending 339’s with the Engineering Support Activity (ESA) for this NSN.

9. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state):

AM General (34623) showed interest in quoting directly to the Government. Exacta Tool and Engineering (6US04) showed interest in reviewing the drawings and becoming a potential supplier. Janel’s Industries (3B8L1) and JML Logistics (6NRE7) showed interest in acquisition but cannot get a quote from the approved source at this time.

10. Due to the AMSC B coding of the item, the solicitation will contain the following Procurement Note:

[X] L22 RESTRICTION OF ALTERNATE OFFERS FOR SOURCE CONTROLLED ITEMS

12. The buyer searched the previous awards listed in the contract history in Records Management in E-Procurement for previous J&A’s, as required by DFARS PGI 206.304, and was unable to locate any of these documents. Previous acquisitions were conducted under full and open procedures or simplified procedures and did not require a J&A.

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.

BRANDY WARNER, Contracting Officer

APPROVAL/CERTIFICATION

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

Competition Advocate Signature

WARNER.BRANDY.D

ANIELLE.1251897880

Digitally signed by

WARNER.BRANDY.DAN ELLE.125189

Date: 2021.04 05 09:53 38 -04'00'

SHEARER.MARY.E

.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.04.16 07:22:26 -04'00'