SPE7LX22RX003 - Redacted.pdf

Other than Full and Open Competition

SPE7LX22RX003

(SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104)

(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. FAR 13.5 procedures were used in accordance with 41 U.S.C. 1901.” This is required by FAR 13.501.

3. The supplies required to meet the using activity's needs as follows:

CLINs BRIEF

DESCRIPTION NSN ADQ

ESTIMATED

ANNUAL

DEMAND

AMC AMSC

0001 Fuel Injection Nozzle 2910-013368213 719 1 C 1 Year Estimated Value =

3 Year Base Estimated Value = 3 Year Base + Options Estimated Value =

5 Year Max Value =

Estimated value and contract duration: The proposed action is for the solicitation and award of a three-year base, plus two option years, Firm-Fixed-Price, Indefinite Delivery Contract (IDC).

Identify end item, weapon system, or class of item: Patriot Missile, Heavy Expanded Mobility Tactical Truck, P-22 Fire Truck and M1070 Heavy Equipment Truck

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)( l )- Available from only one or a limited number of sources.

5. Acquisition is restricted only to the following source(s) of supply for the CLINs below:

CLINs CAGE CAGE NAME PART NUMBER

0001 72582 Rolls-Royce Solutions America Inc. 5234775

0001 75Q65 Oshkosh Defense, LLC 2GE889

I

SPE7LX-22-R-X003

CLIN 0001 is for a repair and replacement part that is incorporated into a military end item, and this is the only known repair/replacement part that the Government can ensure will enable the military end item to function properly in accordance with military requirements.

The Fuel Injection Nozzle is considered commercial in nature and is a fine sprayer through which fuel is injected into an engine. The top of the injector nozzle has a lot of holes to deliver a spray of diesel fuel into the cylinder. The fuel is sprayed through an injector nozzle, typically at high pressure, to improve the mixing of fuel with air.

a. CLIN 0001: Rolls-Royce Solutions America Inc.

(72582) and Oshkosh Defense, LLC (75Q65) are uniquely qualified because they are the only known sources with the data or rights to the data necessary to manufacture the item. Therefore, the data is not physically available to the Government, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation.

b. Tech Certification: On June 6, 2021, Product Specialist certified that the technical information, including the AMC/AMSC codes and approved source, is accurate and complete. also certified that all means to obtain a technical data package adequate for manufacture of the item have been exhausted.

The use of the authority cited below:

[X] AMC 1 –Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited below is based on:

[ X ] 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, or 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.

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

[X] Sources Sought notice and market research survey to www.sam.gov from August 31, 2021, through September 10, 2021.

[X] The acquisition will be synopsized on or about October 7, 2021, for a minimum of 1 day, via sam.beta.gov. At the completion of the synopsis period, this PR will be solicited on the internet for a minimum of 30 days via the DLA Internet Bid Board System (DIBBS).

[X] Any and all companies who expressed an interest in the project during the market survey period will be sent a copy of the solicitation as soon as it has opened on

DIBBS.

[X] Alternate items will be evaluated for this procurement if they are offered.

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

This will be a five-year, firm fixed price, Indefinite Delivery Contract (IDC) subject to FAR Subpart 13.5. The five-year period is inclusive of a three-year base period, and two separately priced, one-year option periods. Based on the results of market research, the buyer anticipates receiving four offers from Dealers quoting the product of Rolls-Royce Solutions America Inc. (72582). Other potential offers could provide the product of Oshkosh Defense, LLC (75Q65). It is anticipated that Cost or Pricing data IAW FAR 15.403-4 will not be required. While this requirement is valued over the threshold of $2,000,000, the NSN is deemed commercial in nature. Therefore, Certified Cost or Pricing Data is not required. 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 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. Additionally, Price analysis, "should cost" negotiations, learning curve analysis, 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.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a Sources Sought notice and market research survey to www.sam.gov from August 31, 2021, through September 10, 2021. One response to the Sources Sought was received from MTP Drivetrain (3WXD8) expressing an interest in providing a proposal.

The solicitation will be posted on DIBBS on or around October 7, 2021, to allow any interested parties to submit a proposal. In addition to the publishing of a Sources Sought notice and synopsis posted on DIBBS, the Contract Specialist also researched the procurement history for the item, dating back to 2017. Available history shows this part been provide by the following Dealers: Central Power Systems Inc (0PJT5), Penn Power Group (62860) and WW Williams (1B318) and all provided the product of Rolls-Royce Solutions America Inc. (72582). All three dealers were sent copies of the market research along with the 2 approved sources Rolls-Royce Solutions America Inc. (72582) and Oshkosh Defense, LLC (75Q65).

Market Survey A market survey was conducted between: June 6 to June 14, 2021, with Buyer following up on August 31 to Septembe17.

Total number of vendors contacted: 6 Total number of vendors identified: 6 Responses Received: 5

Rolls-Royce Solutions America Inc. (72582) stated they would not quote directly to the Government but would deal directly with the Dealers. Central Power Systems Inc (0PJT5), Penn Power Group (62860) and WW Williams (1B318) stated they would be interested in providing an offer. MTP Drivetrain via the source sought notice responded that they would be interested in providing an offer.

Smith Power Products, Inc. and Oshkosh Defense, LLC (75Q65) were unresponsive to the market survey.

Techniques used to conduct survey: E-mail and Sources Sought.

Types of information requested: The survey consists of approximately 20 general questions.

Majority of questions involved check boxes and (yes or no) answers, miscellaneous questions and final comment section at the very end of the questionnaire. The market survey sought and gathered information regarding shipping costs, option periods (pricing and desirability). Information sought on the market survey also included business size, quantity sensitivity of the item, if the items are carried in the inventory, if a dealer/distributor network exists, the anticipated unit price and delivery of the item, if the items are commercial, FOB Origin & I/A Destination is acceptable, if the OEM, recognized part numbers, and if the contractor is EDI & Military Packaging.

Summary of information received:

Rolls-Royce Solutions America Inc. (72582)

a. Rolls-Royce Solutions America Inc. (72582) stated they would not be dealing directly with the Government but would go through distributors and provided a listing of some of their approved distributors that have the capability to do the mil-spec packaging if required for this NSNs. Rolls-Royce Solutions America Inc. stated there may be others, not on list- but these are the ones she was aware of.

Central Power Systems Inc (0PJT5)

a. Central Power Systems Inc. is considered a small business dealer.

b.

d. Central Power Systems Inc. indicated that NSN: 2910-013368213 is commercial in nature but did not provide any form of commercial documentation.

e.

MTP Drivetrain Services (3WXD8)

g. MTP Drivetrain Services is considered a small business dealer.

h.

j. MPT Drivetrain Services indicated that NSN: 2910-013368213 is commercial in nature but did not provide any form of commercial documentation.

k.

Pen Power Group (62860)

a. Pen Power Group is considered a large business dealer.

d. Pen Power Group indicated that NSN: 2910-013368213 is commercial in nature but did not provide any form of commercial documentation.

W.W. Williams (43RF7)

a. W.W. Williams is considered a large business dealer.

d. W.W. Williams indicated that NSN: 2910-013368213 is commercial in nature but did not provide any form of commercial documentation.

Information received regarding the commerciality of the item(s): The required NSN was determined to meet the definition of Commercial-of-a-Type. Product Specialist, completed his review and designation as commercial of a type. Minor modification could be as simple as color/design, size, configuration, output, etc. to meet DoD requirements. To be considered minor, a modification may not significantly alter the product’s nongovernmental function or essential physical characteristics. In determining whether a modification is minor, consider the value and size of the modification and the comparative value and size of the final product. This item is a 1/C (ESA

Controlled) item with no data, so there are not specific characteristics listed that make this item unique compared to other injectors that could be found. The special features listed on the TIR show that it is weapon system essential, 9.0MM Stroke. The stroke is referring to the distance within engine cylinders that each of the pistons travel to produce power. Since the end item are Government specific and is mostly used on HEMTT and HET M-Series Vehicles. The Heavy Expanded Mobility Tactical Truck (HEMTT) is an eight-wheel drive, diesel-powered, 10-short-ton (9,100 kg) tactical truck. The HEMTT's objective is to provide heavy transport capabilities for supply and re-supply of combat vehicles and weapons systems. In accordance with DFARS PGI 212.102(a)(i) General guidance on making a commercial item determination, the Contracting Office has determined NSN:

2910-013368213 commercial in nature.

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

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 & 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 info for both the DLA Value Engineering program and the DoD Value Engineering program.

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

WW Williams (1B318), Pen Power Group (62860), Central Power Systems (0PJT5) and MPT Drivetrain (3WXD8) indicated interest in submitting a quote for this acquisition. All will be providing the product of approved source Rolls-Royce Solutions America Inc.

11. The following actions are being taken to identify additional sources before any subsequent acquisitions are made: (If none, so state and explain why not.)

[X] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

Justification and approval for previous acquisition was not required as all previous procurements were under the $750,000 threshold or used Simplified Acquisition Procedures.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. The estimated total value of the J&A is

Elizabeth Hanlon Date:

Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

MARY E. SHEARER Date:

Competition Advocate Signature

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)

[ ] over $100,000,000 Senior Procurement Executive (AQ)

Attachments:

1 – Tech Certification 2 – Commercial Internet Listing

HANLON.ELIZABE

TH.EASTON.13783

72107

Digitally signed by

HANLON.ELIZABETH.EASTON.

1378372107 Date: 2021.10.06 11:44:02 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2021.10.07 07:21:54 -04'00'