JA CL23009004 reviewed_Redacted.pdf

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Attached to
25 – Air Spring, Vehicular Federal contract opportunity
Solicitation number
SPE7LX23D5061
Issued by
Defense Logistics Agency Land and Maritime

About this file

This document is a justification for other than full and open competition for solicitation SPE7LX-23-R-X054 issued by the Defense Logistics Agency Land and Maritime. The solicitation is for a five-year indefinite delivery contract for vehicular air springs designated as National Stock Number 2510015584138. The government does not own the technical data package or rights to the data required to purchase this part from additional sources. Market research identified SAF-Holland and Oshkosh Defense as the only approved sources that possess the required data to manufacture the item. Efforts to ensure offers are solicited from as many sources as practicable included a sources sought notice, market research survey, and synopsis on the DLA Internet Bid Board System. Pricing will be determined fair and reasonable based on a price analysis using the Global Insights Producer Price Index forecasts.

The justification also cites that a complete technical data package cannot be developed to permit full and open competition as no data is available to the government. VSE Corporation indicated interest as a large business distributor. The previous justification and market research summary, sources sought notice, technical certification, and copy of the previous justification are provided as attachments.

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CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-23-R-X054

Source Selection Information-- See FAR 2.101 and 3.104

The use of the authority cited below is based on:

[X] AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid.

On January 12, 2023, Product Specialist (PS) , certified that for NSN 2510015584138, SAF-Holland (74410) and Oshkosh Defense LLC (75Q65) are the only approved sources known to possess the required data, the AMC/AMSC coding, list of approved sources, and justification for limiting competition are current and accurate. On April 7, 2023, updated the coding of the NSN to make it “Commercial of a Type” due to new market research. Additionally, this NSN has a Weapon System Indicator Code (WSIC) of F which indicates that failure of the part will render the end item inoperable. For this NSN, the Government does not possess the data to allow for full and open competition and has not purchased the data to do so.

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 March 2, 2023 through May 31, 2023.

[X] The acquisition was synopsized on April 28, 2023, and will be Solicited for 15 days via the DLA Internet Bid Board System (DIBBS).

[X] Dealers of the manufacturers, if any, will be solicited.

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 in accordance with 41 USC 3305. The five-year period is inclusive of a 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 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. Based on the results of market research, the buyer may only receive one offer from a distributor of one of the manufacturers. Comparison of offered prices to past prices deemed fair and reasonable will be used for determination of fair and reasonableness. The value of this procurement meets the TINA threshold requiring certified cost and pricing data. However, since the item has been determined to be commercial, certified cost and pricing is not required. Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

Grand Industries Inc. and Lockheed Martin Corporation being the primary awardees. Other awardees were STATZ Corporation, Wheeler Fleet Solutions, Longhorn Regional Service Center (4GK47), Drive Line Inc (0GE52), Fontaine Trailer Company (5H8D0), Badger Truck Center, Inc. (06YZ5), FYDA Freightliner Columbus, Inc. (1B791), Stewart & Stevenson FDDA LLC (4MP55), and Pines Quality Inc. (3B0Y2). Of this group, only STATZ and Wheeler Fleet have received an award since 2012.

A search of the internet found this NSN available to the public on several different websites including www.DPEquip.net and www.FindItParts.com. A review of the SRM MM03 for this NSN shows the Commercial Off the Shelf (COTS) field as “yes.” The market research surveys indicated the items are non-commercial. There have been no prior commercial acquisitions of these items in the purchase history. Despite no past procurements using commercial procedures and the market research surveys indicating non-commercial, the internet results found by the buyer and product specialist were able to verify the commerciality of this item.

This Vehicle Air Spring is a rubber cylindrical shaped item containing air pressure. It is used in conjunction with valves, height control, and brake protection. The air spring is designed to be mounted between the axle and frame to provide cushioning stability and soft ride for heavy suspension systems commonly found on tractor trailers. Therefore, the Contracting Officer hereby determines that the NSN is commercial of a type, and FAR 13.5 procedures will be utilized.

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. No data is available to 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, overpriced, 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) VSE Corporation (31902), a large business distributor.

Attachments:

1 – Market Research Summary 2 – Copy of Sources Sought Notice 3 – Tech Certification 4 – Previous J&A

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