SPE7MX-20-R-0042 - reviewed_Redacted.pdf

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Attached to
Remote Switch Control Federal contract opportunity
Solicitation number
SPE7LX-21-R-0100
Issued by
Defense Logistics Agency Land and Maritime

About this file

This document contains a justification for other than full and open competition and details of a related sole-source federal contract award. The Defense Logistics Agency Land and Maritime issued a sole-source contract to Nartron for remote control switches with an estimated value of $14 million over five years. The justification cited 10 U.S. Code 2304(c)(1) allowing sole-source procurement from a limited number of sources. The agency determined technical data was unavailable for full and open competition due to a lack of government data rights. The justification described market research contacting three vendors and a sources sought notice with no other sources identified for the military-specific remote switches used in utility vehicles and HMMWVs.

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-20-R-0042

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. This acquisition is to establish a firm fixed-priced, indefinite quantity contract for a base period of 3 years and 2 one-year option periods. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. This acquisition is to establish a firm, fixed-price contract for the following supplies. The supplies required to meet the using activity’s needs are:

BRIEF DESCRIPTION NSN/P/N QUANTITY EST.5 YR

VALUE

AMC/AMSC

CONTROL, REMOTE SWI 6110015427901 12,723 1/B

These items procured being are in support of utility trucks and the Highly Mobile Multi-Wheeled Vehicle(HMMWV) vehicle, Weapon System Codes- 1CM; 80A.

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

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.

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

AM General (34623) GHSP Inc. DBA KDS Controls (09HP0) UUSI LLC DBA Nartron (32498)

The use of the authority cited below:

[X] AMC 1. Suitable for adequate competition

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. The AMC/AMSC codes were verified by Product Specialist on July 3, 2018. The AMC/AMSC code of 1/B for CLIN 0001 was verified by Product Specialist on October 8, 2019.

The item being solicited is a Remote Switching Control used to support the HMMWV and various utility trucks. The Government currently does not have the data available to acquire these parts competitively. AM General, GHSP Inc., and UUSI LLC are the only known sources that have the complete data. A Sources Sought notice was posted on FedBizOpps on January 23, 2020 and closed on January 30, 2020 with no responses received. As of this date, there are no other known sources for these items. The Remote Switching Control is used in diesel engines to regulate and control the glow plugs. The glow plugs in turn are used to heat incoming fuel and air to encourage efficient fuel combustion in a diesel engine which is required to start the engine. If the plugs are not functioning properly, there could be a misfire in ignition. It is essential that the Government procure this item from the manufacturers listed in the source controlled drawings as they have the technical data that satisfy the military-specific requirements for this item.

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

[X] The acquisition will be synopsized on or about March 29, 2020.

[ ] Dealers of the manufacturers will be solicited.

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

a. Certified Cost and Pricing data is required I/A/W FAR 15.403-1(b)(3), as this acquisition will be procured utilizing FAR Part 15 procedures and is over the TINA threshold of $2m and competition is not expected. This item will be solicited as Unrestricted Other Than Full and Open Competition.

The buyer only intends to award the NSN if fair and reasonable price determinations can be made.

7. Market Research/Efforts to Obtain Competition:

Total Number of Vendors Contacted: 2

Names of Vendors Contacted:

o AM General (CAGE 34623) o UUSI LLC DBA Nartron (CAGE 32498) o GHSP (09HP0) was not contacted or sent a market survey as they have not supplied this item since 2013. Additionally, a check of the System for Award Management (SAM) found GHSP’s representations and certifications expired in 2018.

Names of Vendors that responded in writing to the Market Survey and expressed interest in proposing on requirement:

o No written responses were initially received. Market surveys were initially sent to vendors listed above by the Strategic Sourcing team on June 25, 2019. No written responses were received at the time. The buyer followed up with survey requests on December 5, 2019, January 23, 2020, and February 18, 2020 all via email. Finally, the buyer made contact via telephone with of Nartron on May 12, 2020 regarding the commerciality of this item.

informed the buyer that this is not a commercial item that has ever been for sale to the general public and is used exclusively on military vehicles. Additionally, indicated that Nartron would be submitting a proposal for this solicitation.

Types of information requested: The following includes some of the information requested on the Market Survey: Interest in Long Term Contract and number of years preferred, commerciality per FAR 2.101(b), business type (large, small, SDVOSB, WOSB), would an offeror be willing to provide Cost and Pricing Data, estimated delivery, whether an item is quantity sensitive, among other questions.

A Sources Sought notice was posted on January 23, 2020 and closed on January 30, 2020.

There were no responses received.

Information received regarding the commerciality of the item: This item is used exclusively by the military on utility trucks and HMMWVs. of Nartron has indicated that this item is not and never has been available for sale to the general public.

The buyer checked the Commercial-off-the-shelf field on the MM03 screen in SRM and it was blank. The buyer also searched the DCMA commercial database with no results. This item was determined to be non-commercial by the previous Contracting Officer for these reasons as well (see Attachment #1).

Based on these facts, the Contracting Officer has determined this is not a commercial item.

This item has a history of competition between Nartron and KDS Controls so competition is expected.

8. 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.

9. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

Nartron Inc.

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

[ ] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [ ] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] Reverse Engineering

A prior J & A was found and is included as Attachment #1.

Attachments:

1. SPE7LX-15-D-0015 J & A

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 $700,000, this signature serves as the approval.

Megan Saylor Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

Head of Contracting Activity Signature Date

APPROVAL REQUIREMENTS

[X] Up to $700,000 Contracting Officer

[ X] $700,000 to $13,500,000 Competition Advocate

[X ] $13,500,000 to $93,000,000 Head of the Contracting Activity (HCA)

SAYLOR.MEGAN.M.1

364088848

Digitally signed by

SAYLOR.MEGAN.M.1364088848

Date: 2020.09.18 13:51:37 -04'00'

SHEARER.MARY.E.1250702

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.09.21 14:58:14 -04'00'

BROWN.MARK.ALBER

T.1041175032

Digitally signed by

BROWN.MARK.ALBERT.1041175032

Date: 2020.09.21 15:04:18 -04'00'

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