JA6.3021SPE7LX25RX001.pdf

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ARM, STEERING GEAR
Solicitation number
SPE7LX25RX001
Issued by

About this file

This document is a Justification for Other Than Full and Open Competition (J&A) for a Defense Logistics Agency (DLA) Land and Maritime contract. The solicitation SPE7LX-25-R-X001 is for two National Stock Numbers (NSNs) of steering components used on military Expanded Capacity Utility Trucks and Hummer H1 vehicles, specifically an arm and tie rod for steering systems.

The contract will be an Indefinite Delivery Contract (IDC) with a three-year base period and two one-year option periods. AM General (CAGE 34623) and Federal Mogul (CAGE 63477) are the only approved sources, justified by their exclusive technical data rights and manufacturing expertise. The total estimated contract value is $2,294,123.04, with annual quantities of 1,647 for the arm and 2,342 for the tie rod. The acquisition is being conducted using FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items, with the statutory authority of 10 U.S.C. 3204(a)(1) for limited sources.

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CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-25-R-X001

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104 / CUI

[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 an “other than full and open competition” basis.

The subject solicitation is to establish an Indefinite Delivery Contract (IDC) for two (2) NSNs listed below using FAR Subpart 13.5 (Simplified Procedures for Certain Commercial Items) procedures pursuant to 41 U.S.C 1901, see FAR 13.501(a)(1)(ii). The contract term shall consist of a 3-year Base Period and two 1-year Option Periods .

3. The supplies required to meet the using activity's needs are described as follows: The subject solicitation is a successor project to current LTC SPE7LX20D0222 (expiring 09/30/2025). The project NSNs are steering components utilized on various military vehicles including the Expanded Capacity Utility Truck Series (0QM) and found on commercial on / off-road vehicle steering systems for the Hummer H1. The chart below reflects the project NSNs along with their ADQ, AMC/AMSC, and estimated values.

SPE7LX25RX001 (LTC Project CL24219001)

NSN ITEM DESCRIPTION

EST.

ANNUAL

QUANTITY

(ADQ)

EST. ANNUAL

VALUE (ADV)

EST. TOTAL

CONTRACT

VALUE

(Base + Options)

CONTRACT

MAXIMUM VALUE

2530-01-420-5180

AMC/AMSC = 1/B ARM, STEERING GEAR 1647

2530-01-554-4728

AMC/AMSC = 1/B TIE ROD, STEERING 2342

ICP: DLA Land & Maritime Totals:

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.

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

Approved Sources

CLIN NSN APPROVED

CAGE

APPROVED

SOURCE NAME APPROVED PART #

0001 2530-01-420-5180 34623 AM General EC6004838B1

63477 Federal Mogul SE1579

0002 2530-01-554-4728 34623 AM General 12507026 63477 Federal Mogul 12507026

The use of the authority cited below:

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

Controlled by: DLA Land and Maritime Controlled by: SAPD-ZBB

CUI Category: Source Selection Distribution/Dissemination Control: FED ONLY

POC:

DBA0055

Cross-Out

DBA0055

Cross-Out c010877 Cross-Out

The use of the authority cited is based on:

[ X ] AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. 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.

Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

As indicated on the approved manufacturer parts list found on drawing (19207) 12460468 for NSN 2530-01- 420-5180 and drawing (19207) 12507026 for NSN 2530-01-554-4728 in SAP (as received from the Defense Logistics Information Service), CAGE(s) 34623 and 63477 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. AM General (34623) and Federal Mogul (63477) are the sole manufacturing sources specified on the source control drawing for these NSNs and possess the rights to the technical data/drawings and/or the data itself necessary to produce the required item.

DLA Land & Maritime SAPD Product Specialist reviewed the project NSNs on 08/12/2024 certifying the supporting data, including the AMC/AMSC codes and approved sources, are complete and accurate. The 08/24/2024 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 the solicitation opening. At the completion of the synopsis period, this Request for Proposal will be solicited on the internet for 30 days via the DLA Internet Bid Board System (DIBBS). All vendors may submit a quote, which shall be considered by the agency.

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

The items on this project have been determined to be commercial items of a type sold in the commercial marketplace and will therefore not require certified cost and price data. The basis for the government’s fair and reasonable price determination is anticipated to be PPI based price analysis and/or the analysis of other than cost or price data such as informal cost breakdowns and/or material invoices. Final negotiated pricing will be reviewed against recent past reasonable purchases (adjusted for passage of time and quantity sensitivity) and comparison to commercial market pricing for potentially similar/same items to support a reasonableness determination.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted to www.sam.gov on 10/07/2024 and closed 10/15/2024 with an “interest” email received from BHPE (9SWS7) who provided no quote or market survey response. On 10/28/2024 the Contracting Officer was advised by Eric Wilde of DLA Land & Maritime Value Management (VE) that there are no new approved sources or open VE projects for these NSNs.

Market research has been conducted prior to solicitation: A formal market survey was initiated by DLA Land & Maritime-ZBB Branch Contracting Officer Scott D. Knowles with AM General (34623). A survey was also sent to BHPE (9SWS7) that expressed “interest” to the Sources Sought Notice. Only AM General returned a complete market survey. Other market research efforts included Contracting Officer review of the purchase history and internet market research. A review of GSAadvantage.gov was completed for active GSA contracts covering the project NSNs or their associated approved part numbers, but no active contracts were found. The information collected during the market survey is summarized as follows:

i. AM General (34623) – Large Business Distributor / Manufacturer

- Initial survey responses received from Leslie Hutchings at AM General who indicated interest in participating in this DLA LTC project.

- AM General is located in South Bend, Indiana and has 916 employees at this facility.

- AM General is part of PM General Purchaser (8XCB8).

- AM General is an approved source for both project NSNs and is a distributor for Federal Mogul

(63477).

- AM General indicated that it has previously and can for this project provide cost & price data.

CLIN NSN Current LTC Qty Range Final

Period Unit Prices

Delivery Days Expiration

0001 2530-01-420-5180

SPE7LX20D0222

76 - 3666 $69.11 400 in 203 days 9/30/2025

0002 2530-01-554-4728 177 - 8532 $123.14 1200 in 208 days

- AM General has provided these NSNs to DLA on delivery orders against LTC(s) and under stand-alone purchase orders since 2019. AM General provided CLIN 0001 under SPE7LX24F25BE on 09/27/2024 and CLIN 0002 on 09/27/2024 under SPE7LX24F25DW.

Commercial Determination: NSNs: 2530-01-420-5180 and 2530-01-554-4728 are steering components designated as Class IX spare parts utilized for vehicle directional movement/steering for military Expanded Capacity Utility Trucks (0QM) and on commercially available Hummer H1 on and off-road vehicles. The MM03 COTS field has an entry of ‘Yes’ for the NSNs, indicating the technical community has made the recommendation to determine the items to be commercial or commercial of-a-type. The items are being procured according to source-controlled drawing (19207) 12460468 for NSN 2530-01-420-5180 and drawing (19207) 12507026 for NSN 2530-01-554-4728 and the Contracting Officer’s market research indicated that AM General is providing part number(s) EC6004838B1 and 12507026 which have been found available online for sale to the public for commercial applications.

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 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 each NSN’s specification requirements. FAR Part 13.5 Simplified Procedures for Certain Commercial Items procedures will be used for 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 complete technical data for NSNs 2530-01-420-5180 and 2530-01- 554-4728 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:

34623 / AM General

9SWS7 / BHPE

11. These items are subject to the following methods of locating additional sources:

[X] The solicitation contains DLAD Procurement Note L22, Restriction of Alternate Offers for Source- Controlled Items.

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. The Contracting Officer searched the most recent previous awards in the contract history for NSNs 2530-01-

420-5180 and 2530-01-554-4728 in Records Management 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 able to locate the J&A for current LTC SPE7LX20D0222 covering these NSNs. The previous J&A is 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 cited on the previous justifications 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

SOLICITATION SPE7LX-25-R-X001

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.

SCOTT D. KNOWLES

Contracting Officer DLA Land & Maritime - ZBB

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is $2,294,123.04

COMPETITION ADVOCATE

DLA Land & Maritime

APPROVAL REQUIREMENTS

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

ATTACHMENT(S):

1 - Tech Certification

KNOWLES.SCOTT

.D.1251897480

Digitally signed by

KNOWLES.SCOTT.D.1251897480

Date: 2025.02.13 10:30:05 -05'00'

WIEBUSCH.JAMIE

.1251897324

Digitally signed by

WIEBUSCH.JAMIE.1251897324

Date: 2025.03.11 11:56:25 -04'00' c010877 Cross-Out

MEMORANDUM FOR RECORD

SUBJECT: Technical Data Supporting- Limited Sources for Solicitation/Project

This memorandum serves as the technical certification required by FAR 6.303-2(c) for the subject solicitation/project.

1. The approved source(s) and item of supply for NSN is/are CAGE Part number

_ Multi-NSN Evaluation (see attachment) 2 3 4 52. The item(s) has the following AMC Code(s): 1

3. The item(s) has the following AMSC(s):

CAGE

CAGE

Part number Part number

A The Government’s rights to use data in its possession are questionable.

B Acquisition of this part is restricted to source (s) specified on a Source Control and, Altered Item or A Selected Item drawings/documents.

C This part requires 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.

D The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).

L The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s)

K This part must be produced from class 1A castings (e.g., class 1 of MIL-C-6021) and similar type forging(s). The part must be procured only from sources which use castings or forging(s) obtained from approved (controlled) source(s).

M Master or coordinated tooling is required to produce this part. This tooling is not owned by the Government or, where owned, cannot be made available to other sources.

N This part requires special test and/or inspection facilities to determine and maintain ultra-precision quality for its function or system integrity. Substantiation and inspection of the precision or quality cannot be accomplished without such specialized test or inspection facilities.

P The rights to use the data needed to purchase this part from additional sources are not owned by the Government and cannot be purchased.

Q The Government does not have adequate data, lacks rights to data, or both, needed to purchase this part from additional sources.

R 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.

U The cost to the Government to breakout this part and acquire it competitively has been determined to exceed the projected savings over the life span of the part.

V This part has been designated a high reliability part under a formal reliability Probability of failure would be unacceptable from the standpoint of safety of personnel and/or equipment. The cognizant engineering activity has determined that data to define and control reliability limits cannot be obtained nor is it possible to draft adequate specifications for this purpose.

Y The design of this part is unstable. Engineering, manufacturing, or performance characteristics indicate that the required design objectives have not been achieved. Major changes are contemplated because the part has a low process yield or has demonstrated marginal performance during tests or service use. These changes will render the present part obsolete and unusable in its present configuration. Limited acquisition from the present source is anticipated pending configuration changes.

Z This is a Commercial/non-developmental (off-the-shelf item). When one or a limited number of sources are available, then a J&A is required. When an item is coded with AMSC “Z” and is listed on an interchange catalog or competition and a J&A is not necessary.

CL24219001

multiple NSN appears on a commercial cross reference list, this constitutes full and open c010877 Cross-Out

Technical Data Supporting - Limited Sources for Solicitation/Project _______________________

4. Availability of data packages or additional sourcing (Check all that are applicable as of the date of this certification):

I hereby certify to the best of my knowledge and belief the information contained in this memorandum for record is accurate and complete.

Product Specialist Date

A) The Government is pursuing means to obtain a technical data package(s); however, it is uncertain as to when or if the data will be available for procurement.

B) 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.

C) There is no outstanding DLA Form 339 request for additional sources.

D) Item(s) has been forwarded to engineering to evaluate for reverse engineering or Brand Name or Equal characteristics: however, it is uncertain when or if the data will be available for procurement.

Attachment(s):

8/12/2024

CL24219001

ROBERTS.ASHLEY.

NICOLE.1077376557

Digitally signed by

ROBERTS.ASHLEY.NICOLE.1077376557

Date: 2024.08.12 15:54:19 -04'00' c010877 Cross-Out

Nomenclature FSC NIIN CAGE Part Number AMC AMSC 4A 4B 4C 4D

ARM,STEERING GEAR 2530 014205180 34623 EC6004838B1 1 B X

63477 SE1579

TIE ROD,STEERING 2530 015544728 34623 12507026 1 B X

63477 12507026

MFR Multi-NSN Evaluation Attachment For Solicitation XYZ c010877 Cross-Out

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN HIGHWAY

FT. BELVOIR, VIRGINIA 22060-6221

WARNER.BRANDY.D

ANIELLE.1251897880

Digitally signed by

WARNER.BRANDY.DANIELLE.12

51897880 Date: 2019.07.18 16:13:13 -04'00'

SWEAT.KATHERI

NE.D.1286928613

Digitally signed by

SWEAT.KATHERINE.D.12869286

Date: 2019.07.23 10:34:01 -04'00'

HOPSON.LILLI.A.

1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2019.07.18 17:04:55 -04'00'

BROWN.MARK.AL

BERT.1041175032

Digitally signed by

BROWN.MARK.ALBERT.1041175

Date: 2019.07.23 17:39:17 -04'00'

STEVENSON.SAMUEL.

THOMSON.1068760867

Digitally signed by

STEVENSON.SAMUEL.THOMSON

.1068760867 Date: 2019.07.26 08:45:34 -04'00'

BANKS.ROXANNE.JA

RAMILLO.1156004908

Digitally signed by

BANKS.ROXANNE.JARAMILLO.11

56004908 Date: 2019.08.26 16:29:00 -04'00'

BEEBE.MATTHEW.RI

CHARD.1012725473

Digitally signed by

BEEBE.MATTHEW.RICHARD.101

2725473 Date: 2019.08.27 19:57:42 -04'00'

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