JA6.3021CSPE7LX24R0030.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX24R0030

Controlled by: DLA Land and Maritime Controlled by: SAPD (ZBC)

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC: anna.douglass@dla.mil

DLA Land & Maritime Justification for Other Than Full & Open Competition (March 2023)

[X] ORIGINAL

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

2. The action being approved is the acquisition of supplies/services on other than a full and open competition basis.

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

CLIN BRIEF DESCRIPTION NSN

EST. ANNUAL

DEMAND QUANTITY

(ADQ)

EST. ANNUAL

DEMAND VALUE

(ADV) AMSC

0001 CONTROL, CRANE OVERLOAD 2590013556638 22 1C

0002 HOSE ASSEMBLY, NONMETALLIC 4720016335171 75 1R

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

The identified weapon systems associated with these items are Palletized Loading System (YEA) and Heavy Expanded Mobility Tactical Truck (HEMTT) (72A)

ESTIMATED 3 YEAR BASE VALUE:

ESTIMATED TOTAL VALUE (3 YEAR BASE + 2 OPTION YEARS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING

SOLICITATION SPE7LX24R0030

DLA Land & Maritime Justification for Other Than Full & Open Competition

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

[X] 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.

Brief narrative supporting the situation and weapon system:

Technical certification dated November 21, 2023, was provided by a SAPD Technician. The certification states that these parts require engineering source approval by the design control activity in order to maintain 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 (CLIN 0001). For CLIN 0002, the data or the rights to use the data needed to purchase this part from additional sources are not owned by the Government and it has been determined that it is uneconomical to purchase them. DLA does not possess adequate data, lacks rights to data, and/or has no record of an alternate Design Control Activity approved source. The data presently available reflects the minimum needs of the Government. These items are to be procured from the approved manufacturers (See Attachment 1 – Technical Certification). Grove U.S. LLC and Oshkosh Defense, LLC are the only companies known by the Government to possess the technical data necessary to manufacture these items.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

CLIN Contractor CAGE Part Number 0001 Grove U.S. LLC 12361 7-486-002687

Oshkosh Defense, LLC 75Q65 3620307

0002 Grove U.S. LLC 12361 2-198-6-00059 Oshkosh Defense, LLC 75Q65 2CT121

Grove U.S. LLC and Oshkosh Defense, LLC are the only sources that have been identified as having the proper complete technical data and manufacturing expertise to supply these items to DLA and the using military services.

These items are spare parts that support several different end items, including Palletized Loading System (YEA) and Heavy Expanded Mobility Tactical Truck (HEMTT) (72A).

The approved CAGEs and part numbers were confirmed by checking the Procurement Item Description (PID) and the Product Master. The Product Specialist reviewed the technical information and recommended for LTC on November 21, 2023. The technical data has indicated that these items are limited to Grove U.S. LLC and Oshkosh Defense, LLC as the approved sources.

SOLICITATION SPE7LX24R0030

DLA Land & Maritime Justification for Other Than Full & Open Competition

The use of the authority cited below:

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

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. (CLIN 0001)

[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. (CLIN 0002)

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

[X] The acquisition will be synopsized on or about January 4, 2024 for 15 days prior to the solicitation opening.

At the completion of the synopsis period, this PR will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS).

[X] The approved manufacturers will be solicited.

[X] Dealers of the manufacturers will be solicited.

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

a. Certified Cost or Pricing data is required. The contract maximum exceeds $2M; therefore, cost and pricing data will be required per FAR 15.403-4(a) (1). None of the exceptions apply. Cost or pricing clauses/provisions will be incorporated into the solicitation. In the event, that competitive offers are received, an amendment will be issued to remove the Cost or pricing clauses/provisions. These items will be solicited as other than full and open competition. The buyer only intends to award the NSNs if a fair and reasonable price determination can be made.

b. I hereby determine that the anticipated cost to the Government will be fair and reasonable based on cost data, price analysis, Producer Price Index (PPI), and/or learning curve analysis.

SOLICITATION SPE7LX24R0030

DLA Land & Maritime Justification for Other Than Full & Open Competition

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.SAM.gov. In addition to the publishing of a Sources Sought notice, the Market Survey team contacted the approved sources and past provider from the procurement history.

Sources Sought Notice:

The Sources Sought Notice was posted to www.SAM.gov on November 21, 2023 and closed on November 30, 2023. No responses were received.

Market Survey [10 U.S.C. 3204(e)(2)(D)]:

[X] A market survey was conducted on/during September 27, 2023.

Total number of vendors contacted: 9.

Names of vendors contacted and responding: Ruta Supplies (0NJT4), Triman Industries Inc. (0ZBE8), Kirby- Smith Machinery Inc. (0BAH3), Southern Automotive Wholesalers Inc. (1Y875), Brighton Cromwell (3NNX8), Melton Sales and Service (4X8W5), Cavanaugh Government Group (5UY76), Oshkosh Defense, LLC (75Q65), and Grove U.S. LLC (12361). A positive response was received from Ruta Supplies. A negative response was received from Triman Industries Inc. (0ZBE8) and Kirby-Smith Machinery Inc. (0BAH3).

Techniques used to conduct survey: Email.

Types of information requested: Commerciality, Length of Contract, FOB, Delivery & General information questions.

SOLICITATION SPE7LX24R0030

DLA Land & Maritime Justification for Other Than Full & Open Competition

Summary of information received:

Ruta Supplies (0NJT4) – Small Business

Small Business dealer/distributor for CAGE 75Q65 Stated that they agree to 3 year base

Indicated that this item was not commercial

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

The Market Survey respondent indicated that these items are not commercial. The buyer was not able to locate these items online. Previous acquisitions were solicited utilizing FAR Part 15 procedures. Based on previous acquisitions in accordance with DFARS 212.102(a)(ii) and the buyer’s additional Internet research, the Contracting Officer has determined that all items are non-commercial.

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

[X] Based upon the attached technical certification, 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: (If none, so state) Ruta Supplies (0NJT4)

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] Other (Explain) The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competitive. Per PGI 206.304, the requirement states, “the justification shall include a copy of the previous justification to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed”. Based on a review of the contract history, CLIN 0001 is currently on IDC SPE7L323D60QK.

A Justification and Approval (J&A) for Other Than Full and Open Competition was not required for this acquisition.

SOLICITATION SPE7LX24R0030

DLA Land & Maritime Justification for Other Than Full & Open Competition

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.

Patrick J. Laugherty, Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

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

[ ] Over $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] Over $100,000,000 Senior Procurement Executive (SPE)

Attachment:

1 – Technical Certification

LAUGHERTY.PATR

ICK.J.1250703704

Digitally signed by

LAUGHERTY.PATRICK.J.12507

03704 Date: 2023.12.14 08:02:15 -05'00'

DAPO.DOUGLA

S.A.1230220014

Digitally signed by

DAPO.DOUGLAS.A.1230220014

Date: 2024.01.05 14:15:59 -05'00'