SPE7LX23RX012 Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX23RX012

DLA Land and Maritime J&A Other Than Full and Open Competition 1

ORIGINAL

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on an other-than full and open competition basis. FAR 13.5 procedures are being used for an Indefinite Delivery Contract with a 5-year base period and no option periods.

3. The supplies required to meet the using activity's needs are shown below.

NSN Covered: 2530014588017 Item Name: FILTER CANISTER, SEPARATOR

AMC-AMSC: 1-R

Estimated Annual Quantity: 5,406 Unit Price:

Approved Sources and Part Numbers:

Identify end item, weapon system, or class of item: Heavy Expanded Mobility Tactical Truck

(HEMTT)

ESTIMATED ANNUAL DOLLAR VALUE:

ESTIMATED BASE VALUE (5-Year Base Period):

MAXIMUM CONTRACT VALUE:

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

10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authorities cited in paragraph 4:

The approved sources own 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 also uneconomical to reverse engineer the part.

The diesel fuel water separator performs as an added line of defense for the engine, filtering water and any particulates from the fuel before reaching the fuel filter and engine… If it fails to function as required, the water in the fuel will wear the lubricants on the fuel injectors. The device, therefore, helps to remove these contaminants to help prevent engine clogging.

(https://brewminate.com/how-does-a-diesel-fuel-water-separator-work/)

Procuring the part from the approved sources is necessary to keep the HEMTT engine running properly. The approved source retains the technical data that is not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. The

DLA Land and Maritime J&A Other Than Full and Open Competition 2 approved separator filter canisters are the only ones that have been tested on, fits in, and works with the weapon system.

The Product Specialist certified that the technical information, including the approved source and AMC/AMSC codes, is complete and accurate on 3/29/2022. The PS also certified that DLA does not possess adequate data, lacks rights to data, and has no record of an alternate approved source.

The data presently available reflects the minimum needs of the Government.

The procurement item description (PID) is included as Attachment 1.

The use of the authority cited is based on:

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

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.

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

The acquisition will be synopsized on or about 11/16/2022 for about 31 days (through the closing date of the solicitation). On its Issue Date, on or about 11/17/2022, the solicitation will be posted to DIBBS for 30 days for other interested businesses to access.

A sources sought notice was posted on 10/19/2022 for 5 business days to locate sources interested in becoming approved sources and companies who wish to participate in this solicitation by providing the approved parts.

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

Cost or pricing data will not be required, since these items will be solicited using commercial procedures, which satisfies the exception for cost or pricing data listed at FAR 15.403-1 (b) (3).

However, other-than cost data (OTCD) has already been provided. Additional OTCD will be requested if needed. Per FAR 15.404-1(a)(2), a price analysis will be conducted. The price analysis will be performed using pricing from the current LTC, which was determined fair and reasonable. That pricing will be adjusted by Producer Price indexes (PPIs) and learning curve analysis, as necessary, for comparison with proposed prices for this procurement. Negotiations will be held if needed. The proposed prices will also be compared with current commercial invoices (invoices may be adjusted for time and quantity by PPIs and learning curves as necessary).

By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable.

DLA Land and Maritime J&A Other Than Full and Open Competition 3

8. Market Research/Efforts to Obtain Competition:

The sources-sought notice was posted on 10/19/2022 looking for sources interested in becoming approved sources and companies who wish to participate in this solicitation by providing the approved parts. The notice closed on 10/26/2022, and only one response was received from Aviarms, who provided a quote for 1 EA of Beta Fueling’s part number--unit price of

vs. the Facet LTC unit price of $ . They will be added to solicitation email list.

On 3/28/2022 market surveys were sent to 3 companies:

Beta Fueling Systems, LLC (51744): small, disadvantaged business, approved source (they are not interested in quoting because their pricing is not competitive with the OEM)

Facet (Oklahoma) LLC (87405): large business, approved source

One reply was received from Facet (Oklahoma) LLC (87405). They submitted a completed market survey and provided 4 recent commercial invoices (attached to Acquisition Plan) for this NSN. They provided the following information:

A

Commercial Determination:

Prior Commercial Determination - NSN 5920014348504 has a DCMA Commercial Item Determination for the current LTC, and the current LTC is commercial.

Commercial Invoices – Facet provided 4 recent commercial invoices.

Based on this information, the Contracting Officer determines the items being procured to be commercial, as defined in the FAR:

FAR 2.101

“Commercial Product” means

(1) Any item, other than real property, that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and-

(i) Has been sold, leased, or licensed to the general public; or

(ii) Has been offered for sale, lease, or license to the general public.

DLA Land and Maritime J&A Other Than Full and Open Competition 4

9. Additional facts supporting other than full and open competition are:

The Product Specialist certified (Attachment 2) that DLA does not possess adequate data, lacks rights to data, and has no record of an alternate approved source. The data presently available reflects the minimum needs of the Government.

10. A list of business sources indicating an interest in the acquisition:

Facet (Oklahoma) LLC (87405): large business, approved source

11. Actions being taken to overcome barriers to competition:

DLAD Procurement Notes L04, Offers for Part Numbered Items, will be included in the solicitation. Provision M06, Evaluation of Offers for Part Numbered Items, will also be included.

12. Attachment 3 is a copy of the J&A from the current LTC SPE7MX18D0081.

Attachments:

1 PID Pkg RX012 2 Tech Cert CL22087003 3 Prior J-A

DLA Land and Maritime J&A Other Than Full and Open Competition 5

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.

614-692-9252

REBECCA S. HALTEMAN Date Phone Contracting Officer

Approval/Certification

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

614-692-3760 MARY E. SHEARER Date Phone Competition Advocate

APPROVAL REQUIREMENTS

( ) Up to $750,000 Contracting Officer

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

( ) $15,000,00 –$100,000,000 Head of the Contracting Activity (HCA)

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

HALTEMAN.REBE

CCA.S.1273657475

Digitally signed by

HALTEMAN.REBECCA.S.127365

Date: 2022.11.18 11:19 54 -05'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2022.11 22 08:47:21 -05'00'