SPE7LX22RX029 -REDACTED.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-22-RX029

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

[ 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.

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

CLIN NSN

Item

Description

Acquisition Method

Code

(AMC)

Acquisition Method Suffix Code

(AMSC)

Annual Demand Quantity

(ADQ)

Base Year One

Estimated Value

2 Option Years

Estimated Value

3-Year Estimated

Value

(BASE &

OPTION

Years) Contract

Maximum*

0001 6140-01-596-1366 Battery Parts Kit 3 C 876 KT

*A multiplier factor of 3.90 was used to calculate the Contract Maximum in order to provide a buffer for a potential surge in demand.

Identify end item, weapon system, or class of item:

The Weapon System Designator Code (WSDC) is MRA. MRA is the parent WSDC for all Army MRAP WSDCs.

This includes MRAP MaxxPro vehicle variants.

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:

The sole approved source is Kidde Technologies Inc. There are two Kidde Technologies’ CAGEs for this item; which are CAGEs 05BU0 and 61423. It should be noted the Approved Manufacturer Parts List (AMPL) reflects CAGE 05BU0 as the primary source and CAGE 61423 as the secondary source. Both CAGEs are valid for quotes.

The use of the authority cited below:

[ 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 ] Other: The Government has reserved the right to approve sources and the Kidde Technologies’ CAGEs 05BU0 and 61423 are the only CAGEs approved for NSN 6140-01-596-1366. As per the Approved Manufacturer Parts List (AMPL) for this NSN in SAP (as received from the Defense Logistics Information Service), only these two CAGEs have been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and to the applicable military service. Therefore, competition must be limited to offers of the these two CAGEs. The most recent technical review in support of a potential LTC on this NSN was performed on 04 MAY 2022. The NSN was determined to be suitable for an LTC at that time. This technical certificate is attached to this justification (see Attachment #1). The Product Specialist certified that the technical information, including the AMC/AMSC codes and approved CAGEs, are complete and accurate.

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

[X ] A combined synopsis and solicitation will take place. The acquisition will be synopsized on SAM.gov on or about 27 JUN 2022. The RFQ (Request for Quote) will be issued one day later and will run for 30 days.

[X] Dealers of the manufacturers will be solicited.

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

This procurement will be solicited for a three-year, firm-fixed price, Simplified Indefinite-Delivery Contract (SIDC), conducted under FAR subpart 13.5, Simplified Acquisition Procedures, in accordance with 41 U.S.C.

1901. The contract will be structured with a 1-year base and two 1-year option periods. There will be multiple quantity ranges included that will allow for price break opportunities. Offeror proposed escalation percentages will be negotiated for years two and three. The Producer Price Indices (PPI) from the Bureau of Labor Statistics;

as well as Global Insight Data from IHS Markit will be utilized in the price analysis of the offers. The price analysis will provide Government targets that will be used in negotiations. Adequate price competition will not exist since there is only one approved source.

Additionally, based on market research, dealer participation is expected to be limited. There was no dealer interest shown by virtue of lack of dealer response to the Sources Sought Notice and market survey inquiries sent directly to dealers. The only response reflecting interest in participating in the procurement has come from the approved source, Kidde Technologies. Certified Cost or Pricing Data clauses will not be included in the solicitation due to the commercial exception (IAW FAR 15.403-1(b)(3); but other than cost or pricing data may be requested if needed to determine the prices fair and reasonable. Based on the negotiation with Government targets and the ability to request other than cost or pricing data, as well as performing a comparison to past award prices that have been determined fair and reasonable, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable for this procurement. This current procurement represents a successor action to the existing 3-year SIDC # SPE7LX-20-D-5017, which expires on 04 MAR 2023.

8. Market Research/Efforts to Obtain Competition:

DLA Land & Maritime conducted various forms of market research, including the publishing to the SAM.gov website, a formal Sources Sought Notice with attached market survey documents. Additionally, the Sourcing Strategy Specialist (SSS) researched procurement history and selected responders from past solicitations to inquire about their interest in a potential solicitation and to obtain market research information. The SSS contacted seven companies by email on 4 APR 2022. Those companies were: AM-MAC Inc. (0VW10), Linmarr Associates (1GX03), Dreamfind Inc. (1V4T7), T&L Sales, LLC (1XLG2), Kidde Technologies (05BU0 and 61423), Lynn Electronics (19151) and Pioneer Industries Inc. (66200). There were no responses to these inquiries. The Acquisition Specialist found these same companies from searches in Records Management; as well as in the review of the list of awardees in procurement history.

Sources Sought Notice:

A Sources Sought Notice was posted to the SAM.gov website which ran from 20 APR 2022 to 04 MAY 2022.

A market survey questionnaire and spreadsheet were attached to the Sources Sought for interested parties to complete and to send to the Acquisition Specialist. There were no responses from the Sources Sought.

The Acquisition Specialist made several attempts to receive market research information from the approved source, Kidde Technologies. Emails were sent to Kidde Technologies on 20 APR 22, 27 APR 22 and 04 MAY

22. Voice messages were left several times, but there was no call returns. This “non-response situation” was escalated on 5 MAY 22 to the immediate SAPD Supervisor, . Finally, there was an email response from Kidde Technologies on 11 MAY 2022 with an attached market survey questionnaire completed.

Techniques used to conduct survey: Email transmission and Sources Sought Notice.

Types of information requested: Contact information, business size, type of business, interest in a multiple year contract and its contract structure, commerciality, minimum and maximum order quantities, quantity sensitivity/price break availability and estimated delivery times.

Summary of information received: Kidde Technologies was the only contractor to show interest in the LTC procurement action. See responses in table below.

Survey Topics Kidde Technologies – CAGES 05BU0 & 61423

Business Size Large Business

Manufacturer or Dealer Manufacturer

Interested in LTC Yes;

Base Term

Options

Commercial Yes

Price Breaks

Minimum DO Qty

Maximum DO Qty

Delivery Estimates Did not provide a delivery estimate.

Information received regarding the commerciality of the item(s):

Kidde Technologies has asserted in their market survey questionnaire that the item is commercial. The existing SIDC #SPE7LX-20-D-5017 was solicited under commercial procedures under RFQ # SPE7LX-19-R-X084.

Information from the MRCDM (Market Research for Commerciality Determination Memorandum) of that contract action was utilized in the MRCDM of this procurement. The subject NSN is a kit that includes two batteries and other items to replace the battery in the MRAP vehicles. The battery, the Power-Sonic PS-1229, can be found on the Internet with commercial prices posted. Several other parts in the kit have been previously found online on sale to the general public also, as all of these parts serve the purpose of connecting car batteries to engines, similar to the commercially available items. There are minor modifications between what is sold commercially versus to the Government, that is designed to meet military specifications. The minor modifications for the Government kit is that they are more robust and include more extinguishers, sensors and controller monitoring. The Government kit also contains CARC paint per customer requirements and provides the added feature of 60 minutes of system power after the vehicle’s main power is shut off.

Other prior solicitations have been issued under commercial procedures. IDPO solicitation # SPE7MX-14-X0025 was issued on 12 AUG 2014 under commercial procedures and resulted in contract # SPE7MX-14-D5008. It should be noted that once an item is purchased commercial, regardless of supporting documentation, it is commercial until the HCA (Head of Contracting Activity) decides otherwise.

The Industrial Support tab in SAP reflects the commercial-off-the-shelf field as coded Y; but this item is not a commercial-off-the-shelf item. The Product Specialist provided a 27 APR 2022 email transmission explaining that this particular field check means only that the item has been determined commercial. The STO in the POT can provide the type of commerciality. The PID for this item reflects the STO ZD074 which indicates the item is identified as a commercial item, which includes commercial-of-a-type.

The most recent J&A #SPE7LX-19-RX084 (see Attachment #2), reflects a determination of “commercial of a type with minor modifications” under subparagraph (3)(ii) of the commercial item definition in FAR 2.101.

Based on the totality of the above information, the Contracting Officer has determined this kit is commercial of a type with minor modifications under subparagraph (3)(ii) of the commercial item definition in FAR 2.101.

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 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.

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

Kidde Technologies, Inc. CAGE 05BU0 Kidde Technologies, Inc. CAGE 61423

11. The following actions are being taken to identify additional sources:

[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] Dealers will be included in the Bidders Listing which will create a direct notification to these contractors and provide maximum opportunity for participation.

12. J&A #SPE7LX-19-RX084 from the most recent LTC procurement on the subject NSN is found at Attachment #2.

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.

Jane Bennett Contracting Officer

APPROVAL/CERTIFICATION

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

Mary E. Shearer Competition Advocate Signature

BENNETT.JAN

E.L.1380799355

Digitally signed by

BENNETT JANE.L.1380799

Date: 2022.06.30 13:54:55 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER MARY E.12507024

Date: 2022.06.30 14:48:42 -04'00'

APPROVAL REQUIREMENTS

[X] $750,000 to $15,000,000 Competition Advocate

ATTACHMENTS: NOTE: The attachments are located in the Attachment section of this PDF.

Click on the paper clip to the left to access attachments.

1) Tech Cert

2) Prior J&A (# SPE7LX-19-R-X084)