SPE7LX21R0076 _Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-21-R-0076

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

(April 2014) o (c) The head of an agency may use procedures other than competitive procedures only when -o (I) the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. If restricted to the only sources of supply, include sources and CAGE code:

NIIN CAGE PART

NUMBER

CAGE NAME

015795981 54905 19263-01 AMEREX CORPORATION

015795981 75Q65 3830265 OSHKOSH DEFENSE, LLC.

The use of the authority cited:

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

AMSC C. 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, and 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.

On February 17, 2021, the quality assurance specialist, certified that the technical information, including the NSN, the AMC/AMSC, and approved source(s) as identified in the J&A, is accurate and complete and have no pending DLA Form 339’s (See Attachment 1).

The Government has retained the right to approve manufacturing sources for this item due to their weapon systems criticality. For CLIN 0001, Amerex Corporation (54905) and Oshkosh Defense (75Q65) are the only sources approved to manufacture this item. The identified approved sources retain the data rights, manufacturing knowledge, and technical data and this information is not economically available to the Government. Amerex Corporation and Oshkosh Defense are the only sources to have part numbers approved. This item has been coded by the military services with a Weapon System Indicator Code (WSIC) “F” which means a failure will render the vehicle inoperable. Because of the criticality of this item, Amerex Corporation (54905) and Oshkosh are the only sources trusted and approved by the military services. The item provided by these two approved sources, meets the technical and quality standards identified by the military services. Therefore, Amerex Corporation (54905) and Oshkosh Defense (75Q65) are uniquely qualified to supply this item.

There are no known pending source approval requests with ESA.

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

(April 2014)

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

A Sources Sought notice was posted on Beta-SAM from February 17, 2021 to February 26, with no responses received.

The acquisition will be synopsized on or around April 16, 2021 and will run for 30 days. At the completion of the synopsis period, the Request for Proposal (RFP) will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

The OEM/approved sources and dealers for this part will be solicited.

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

Relevant pricing issues: The solicitation will utilize FAR Part 12 and 15 procedures with other than certified cost or pricing clauses.

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 item, the Producer Price index (PPI) and learning curve analysis.

This is a five-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity Contract (IDIQ). 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) forecasts. The Global Insights PPI forecast provides timely, accurate price 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.

Comparison to commercial catalogs and part numbers available on the internet, and/or informal cost breakdown will be used to make a price reasonableness determination.

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:

Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for the items.

o Researching/gathering information regarding commerciality of the items.

o Vendor size and business status information.

o Delivery estimates.

o Possibility for Economic Price Adjustment of Option Years.

o Base year and option years; optimal lengths, possible price/cost advantages.

o Distributor involvement.

DLA Land and Maritime conducted various forms of market research in advance of this solicitation. A Sources Sought notice, with a copy of the market survey attached, was posted on Beta-SAM from February 17, 2021 through February 26, 2021, with no responses received. In addition, the acquisition specialist contacted the only OEM/approved sources and previous awardees, shown below, the Government.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Oshkosh Defense, LLC. (75Q65).

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 Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include DLA Procurement Notes L04 Offers for Part Numbered Items and DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items. The Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

Previous J&A SPE7MX-16-R-0018 is attached (Attachment 2).

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.

Tracy L. Holmes Contracting Officer

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

MARY E. SHEARER

Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $750,000 Contracting Officer

(X) $750,000 to $15,000,000 Competition Advocate

( ) $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

HOLMES.TRAC

Y.L.1251897499

Digitally signed by

HOLMES.TRACY.L.1251897499

Date: 2021.04.28 15:21:51 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.05.04 13:10:16 -04'00'

Attachment 1: Tech Certificate CL21019002 Attachment 2: Previous JA SPE7MX-16-R-0018