JA6.302-1SPE7LX22RX020 2.pdf

CUI

SPE7LX-22-R-X020

Source Selection Information – See FAR 2.101 and 3.104 / CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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 Subpart 13.5 procedures are being used in accordance with 41 U.S.C. 1901.

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

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one (1) three-year base period and two (2) one-year option periods The subject solicitation is for a Multi-NSN successor project to the following auto-IDC(s):

CLIN NSN AIDC Active AIDC Expiration

0001 2520-01-498-0785 SPE7L321D60DR N 10/19/2020

0002 2530-01-293-6812 SPE7LX20D60AM N 06/22/2020

0003 2530-01-556-7155 SPE7L120D60UL N 09/25/2020

0004 2530-01-556-7156 SPE7L320D61NU N 07/06/2020

0005 2530-01-598-5981 SPE7L220D60ES N 07/29/2020

0006 2530-01-598-5983 SPE7L320D61UM N 07/24/2020

0007 2530-01-599-0035 SPE7L320D61ZZ N 07/30/2020

0008 3040-01-570-6659 SPE7L321D61DQ Y 04/26/2022

The eight (8) NSNs included on CL21112001 are brake and axle components utilized by the US Military on various US Military applications including Cat 1 & 2 Mine Resistant Ambush Protected (MRAP) vehicles and the Family of Medium and Light Tactical Vehicles (FMTV). The chart below reflects the project NSNs along with their ADQ, AMC/AMSC, and estimated values.

ICP NSN DESCRIPTION

EST.

YEARLY

QUANTITY

(ADQ)

EST. ANNUAL

VALUE

(ADV)

EST. TOTAL

CONTRACT

VALUE

(3 YR Base+2

Options)

CONTRACT

MAXIMUM

VALUE

AMC

AMSC

DSCC 2520-01-498-0785 DIFFERENTIAL GEAR 34 3/D

DSCC 2530-01-293-6812 TIE ROD, STEERING 146 3/D

DSCC 2530-01-556-7155 BRAKE, SEGMENTED 126 3/D

DSCC 2530-01-556-7156 BRAKE, SEGMENTED 112 3/D

DSCC 2530-01-598-5981 BRAKE LINING KIT 88 3/C

DSCC 2530-01-598-5983 BRAKE LINING KIT 86 3/C

DSCC 2530-01-599-0035

HUB, WHEEL,

VEHICULAR 27 3/C

DSCC 3040-01-570-6659 HUB, BODY 22 3/C

Totals

Controlled by: DLA Land and Maritime

Controlled by: SAPD-ZBB CUI Category: Source Selection

Distribution/Dissemination Control: FED ONLY POC: Scott.Knowles@dla.mil c010877 Cross-Out c010877 Cross-Out

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Source Selection Information – See FAR 2.101 and 3.104 / CUI

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:

Meritor Heavy Vehicle Systems (78500) and the approved part #s listed in the chart below are currently the only ESA approved materials / sources for these NSNs listed in Section #3 above.

NSN CAGE COMPANY NAME PART #

2520-01-498-0785 78500 Meritor Heavy Vehicle Systems A4-3200-Y-1871390 2530-01-293-6812 78500 Meritor Heavy Vehicle Systems A1-3102-Z-3874 2530-01-556-7155 78500 Meritor Heavy Vehicle Systems RDA1550-886 2530-01-556-7156 78500 Meritor Heavy Vehicle Systems RDA1550-885 2530-01-598-5981 78500 Meritor Heavy Vehicle Systems RDH1550-912 2530-01-598-5983 78500 Meritor Heavy Vehicle Systems RDH1550-911 2530-01-599-0035 78500 Meritor Heavy Vehicle Systems A6-333-F-4582 3040-01-570-6659 78500 Meritor Heavy Vehicle Systems A9-333-A-4317

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

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

The use of the authority cited 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.

(x) AMSC D. The data needed to acquire this part competitively is not physically available, 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. AMCS 3, 4, or 5 are valid.

The NSNs listed in Section #3 above are available only from the coded manufacturer Meritor Heavy Vehicle Systems (78500) under the ESA approved part#s listed in Section #5. Meritor Heavy Vehicles solely owns the technical data rights to these items. 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. These class IX items were determined “of a type” commercially available by the Contracting Officer with no additional known manufacturing sources for these heavy vehicle braking and axle components.

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Thus, it is essential that the Government obtain only Meritor part numbered items for these replacement parts to assure there is a configuration control; operability; and safety of the higher-level military assemblies these items are used as repair spares on the Mine Resistant Ambush Protected (MRAP) and the Family of Medium and Light Tactical Vehicles (FMTV).

DLA Land and Maritime SAPD Product Specialist reviewed the project NSNs on 08/19/2021 and certified that the supporting data, including the AMC/AMSC codes and approved source, is complete and accurate. On 03/10/2022 re-confirmed the AMC/AMSC codes and sourcing information while also advising the Contracting Officer that the data needed to acquire these parts competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the materials for a competitive solicitation enabling a “Brand Name or Equal” full and open solicitation per FAR 52.211-6. The Product Specialist updated the item descriptions and provided his recommendation that these items fall under the definition commercial “of a type” provided in FAR Part 2 and not COTS. The SAPD Technical Certification is included as J&A Attachment #1.

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

(x) The acquisition will be synopsized on sam.gov prior to solicitation opening. At the completion of the synopsis period, this Request for Proposal will be solicited on the internet for 15 days via the DLA Internet Bid Board System (DIBBS). All vendors may submit a proposal, which shall be considered by the agency.

(x) The item contained in this procurement is limited to approved code and part numbered items, award is not limited to the manufacturer, and dealers can also receive the award.

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

The basis for the Government’s fair and reasonable price determination is anticipated to be PPI based price analysis including the analysis of other than cost or price data such as informal cost break-downs and/or material invoices with final negotiated pricing reviewed in comparison with recent past reasonable purchases (adjusted for passage of time and quantity sensitivity), in addition to comparison to commercial market prices for potentially similar items, to support a reasonableness determination.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted to www.sam.gov on 08/23/2021 and closed 08/31/2021 with no responses received.

Formal market survey was initiated by DLA Land & Maritime ZAA Branch Sourcing Specialists on 04/22/2021 and additional surveys and follow-up sent by DLA Land & Maritime ZBB Branch from 08/20/2021 through 11/3/2021 with responses detailed in the market survey responses contained in the CL21112001 project file. ZAA Branch market survey with Cal Pacific Truck Center (8TCT2) was withdrawn by the vendor on 3/8/2022. Both Wheeler Fleet (55683) and SAIC (79343) rejected the survey. Below is a brief summary of the current survey results. Other market research efforts included Contracting Officer review of the purchase history, coordination with DLA Land and Maritime Small Business Office, and internet market research.

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(1) Longhorn Regional Service (4GK47) – Small Distributor of (CAGE 78500)

- 25 Employees located in Killeen, TX

- States items are commercial

- Longhorn held previous AIDC SPE7L320D61NU (Expired 07/06/2020)

(2) CBT / Cline Truck (4N361) – Small Distributor of (CAGE 78500)

- 5 Employees located in Blue Springs, MO

- States items are commercial

(3) MTP Drivetrain (3WXD8) – Small Distributor of (CAGE 78500)

- 58 Employees located in Many, LA

- States items are not commercial and does not sell to public

(4) HDT Vehicle Components (1SER6) – Small Distributor of (CAGE 78500)

- 6 Employees located in Houston, TX

- States items are commercial of a type sold to public

- HDT held previous AIDC SPE7L321D60DR (Expired 10/19/2020) $5204.75 each.

- HDT held previous AIDC SPE7LX20D60AM (Expired 06/22/2020) $408.85 each.

- HDT held previous AIDC SPE7L120D60UL (Expired 09/25/2020) $1004.50 each

- HDT held previous AIDC SPE7L220D60ES (Expired 07/29/2020) $ 815.77 each

- HDT held previous AIDC SPE7L320D61UM (Expired 07/24/2020) $812.77 each

(5) Meritor Heavy Vehicle Systems (78500) – Large Manufacturer

- Located in Troy, MI

- Does not wish to participate in this solicitation and is providing information to aid in the Government’s solicitation market research only. Proposal will be provided by one of their distributors.

- Stated all project items are commercial of a type sold to public

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- 97% of their business is commercial and sell through network of distributors

- Provided redacted commercial invoices for the project NSNs. Redacted to protect customer names which is claimed proprietary, but confirmed none of them are Government Customers and provided part#s and prices on invoices.

- Meritor provides catalog and technical information at www.meritor.com and sells their items direct on the Meritor Parts internet website located at www.meritorpartsxpress.com

Commercial Determination: Original Equipment Manufacturer and approved sole source Meritor Heavy Vehicle Systems (78500) responding to the market survey indicated to the Government that the DLA approved part numbers are not commercial-off-the-shelf (COTS) items, however they are “of a type” commercially sold by Meritor for use on various commercial and military on and off-road heavy vehicles. Meritor provided the Government with redacted commercial sales invoices for each item noting the part#s and unit pricing, but customer names were redacted as they consider the information proprietary. Meritor also indicated that they manufacture all items on the same production line using the same materials, testing, and quality standards the only differences being paint and size modifications for end item applications. A review of the COTS field in the material master for the project NSNs are marked “Y”, indicating that the technical community has made a recommendation to determine the items commercial in nature. The COTS field was updated for each NSN by the SAPD product specialist on 03/10/2022 after confirming their opinion these items are of a type sold commercially. Review of the GSAadvatage.gov internet website found current GSA schedule for CLIN 0002 NSN 2530-01-293-6812 on open GSA Schedule GS30F029BA (expiring 5/26/24) for $757.04 each with 35 Day delivery from KPAUL Properties. The Contracting Officer researched these items using Google, many similar items were available from various resellers and these specific items were being offered by “bid services” doing business with the Government. Meritor provides catalog and technical information at www.meritor.com and sells their items direct on the Meritor Parts internet website located at www.meritorpartsxpress.com and through a network of authorized distributors.

In accordance with FAR 2.101 and DLAD 12.102 the NSNs included on this project has been determined by the Contracting Officer to be commercial items or items “of a type” commercially available. This determination is based upon the information obtained in the market survey, market research, Contracting Officer’s internet research, and the NSN’s specification requirements. FAR Part 13.5, Acquisition of Certain Commercial Items, will be applied to this acquisition.

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

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10. A listing of sources, if any, indicating an interest in the acquisition is: HDT Vehicle Components (1SER6), MTP Drivetrain (3WXD8), CBT / Cline Truck (4N361), Longhorn Regional Service (4GK47).

11. The following actions are being taken to identify additional sources: The solicitation contains DLAD Procurement Notes L04 - Offers for Part Numbered Items and M06 - Evaluation of Offers for Part Numbered Items, which increases competition by permitting the consideration of alternate offers. If alternate offers or capability statements are provided in response to the synopsis, DLA will consider the offeror’s proposal for award after technical approval of the engineering support activity.

12. The Contracting Officer searched the previous awards listed in the contract history in Records Management in E-Procurement for previous Justifications for other than full and open competition (J&A) as required by Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.304, and was not able to locate any J&As as the procurements were all made below the Simplified Acquisition Threshold where J&As were not required. Therefore, applicable past J&A documents could not be included for the approving authority.

In accordance with DFARS PGI 206.304(a)(S-70)(i), the following planned actions to remove any barriers to competition have been completed:

In the past, DLA Land and Maritime has hosted Captains of Industries to bring in industry leaders for particular commodities or weapon systems to help decrease barriers for companies looking to become sources of supply.

A Sources Sought Notice has been issued on www.sam.gov for a minimum period of five business days.

Buyers continue to conduct market research to ascertain if changes have occurred in the marketplace that would enable items to become competitive.

Solicitations will be posted on www.sam.gov The solicitation will include the provision entitled “Conditions for Evaluation and

Acceptance of Offers and Part Numbered Items” (currently Procurement Note L04) and “Evaluation of Offers for Part Number Items” (currently Procurement Note M06).

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Source Selection Information – See FAR 2.101 and 3.104 / CUI

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 $750,000, this signature serves as the approval.

SCOTT D. KNOWLES Date Contracting Officer, ZBB

Approval/Certification

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

MARY E. SHEARER Date DLA Land & Maritime - Competition Advocate

ATTACHMENTS:

1. TECHNICAL CERTIFICATION

And COMMERCIAL DATA

KNOWLES.SCOTT.

D.1251897480

Digitally signed by

KNOWLES.SCOTT.D.1251897480

Date: 2022.03.18 15:26:57 -04'00'

SHEARER.MARY.E.

1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.03.23 09:33:41 -04'00' c010877 Cross-Out