SPE7MX-20-R-0156 - reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

[ 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.

Meritor Industrial Products, LLC (CAGE 3D6E9) and Meritor Heavy Vehicle Systems, LLC (CAGE 78500) are uniquely qualified because they are the only known sources with the data or rights to the data necessary to manufacture the item. Product Specialist certified that the supporting data, including the AMC/AMSC codes and approved sources, are accurate and complete. He also indicated that it has been determined that it is uneconomical for the Government to purchase the data rights and that all means to obtain a technical data package for manufacture of this NSN have been exhausted. The Product Specialist’s certification is Attachment #2.

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

a. The acquisition was synopsized on 06/21/2020 for a period of 15 days.

b. The manufacturers listed above will be solicited.

c. At the conclusion of the synopsized period the solicitation will be posted to the DLA Internet Bid Board System (DIBBS) for a period of 15 days.

7. The cost to the government is anticipated to be fair and reasonable. The Certified Cost or Pricing Data clause will not be in the solicitation because the contract award amount is less than the TINA Threshold, $2 million in accordance to FAR 15.403-4. A price analysis will be conducted using historical government pricing, the Producer Price Index (PPI) and learning curve analysis. Based upon the above techniques, the Contracting Officer hereby determines that the anticipated cost to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

a. The acquisition is synopsized on 06/21/2020 for a period of 15 days.

The results of the market surveys are detailed below. A Sources Sought notice was posted on the Beta SAM website on 05/21/2020 and no one responded.

Types of information requested on the Market Survey:

• Is there a Published Catalogs/Price Listed?

• Is the company willing to do a Long Term Contract?

• Can the company hold its prices for the Base Period?

• Does the company prefer Economic Price Adjustment (EPA based on the Producer Price Index (PPI)?

• What are the components/raw materials primary drivers in pricing the items?

• What is the industry standard contract term for long-term agreements/contracts for these items and/or the raw material?

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

• If required, is the contractor capable of preparing certified Cost or Pricing Data?

• Does the company require a Minimum Dollar Amount?

• Will a higher Guaranteed Minimum percentage affect the contractor's pricing?

On 03/12/2020 an email was sent to nine suppliers requesting them to respond to the market survey. The nine suppliers are: HDT Vehicle Components Sales, Inc. (1SER6), FBC Enterprises LLC (5ZD19), Meritor Industries Products, LLC (3D6E9), Longhorn Regional Service Center (4GK47), Baker Associates, Inc.

(5S670), Brighton Cromwell LLC (3NNX8), CBT Corporation (4N361), Science Applications International (79343), and Meritor Heavy Vehicles Systems LLC (78500). On the same day, a representative with Brighton responded that they are unable to provide a quote for this item.

A second request for market survey was sent to the same suppliers listed above on 05/21/2020. On the same day, a representative from Brighton responded again that they are not able to supply this item. Also, a representative with SAIC stated her company has no history of providing this item.

After two attempts the five suppliers never responded to the market survey they are; FBC Enterprises LLC (5ZD19), Meritor Industries Products, LLC (3D6E9), Baker Associates, Inc. (5S670), CBT Corporation (4N361, and Meritor Heavy Vehicles Systems LLC (78500).

HDT Vehicle Components (1SERG) is a small business with seven employees. HDT is a distributor for Meritor H.V.S. (78500) a large manufacturer. HDT is willing to perform a Long Term Contract (LTC) for five (5) years. This NSN is not a commercial item and there is not a published price list. This supplier requires no quantity break and does not require providing a subcontracting plan. HDT cannot provide certified cost or pricing data. This supplier does not have production limitations and minimum delivery order quantities. Therefore, the Government has received interest from one supplier for this requirement.

A market survey was sent to Longhorn Regional Service Center (4GK47), responded.

used the same market survey sent to Longhorn and stated she is with the Kyrish Government Group offering an alternate source of supply. Kyrish is a distributor for the manufacturer, Axle Tech International LLC (3DE69). states the alternate item is commercial but did not provide documentation to prove it.

Kyrish is a small business with 25 employees, a HUBZone, Woman Owned, and Veteran Owned Small Business. The supplier for this OEM will be encouraged to submit a SAR Package for future procurements.

The product specialist provided a copy of distributors listed on Meritor’s letter head as a source list. They are: HDT Vehicle Components Sales (1SERG), Cline Truck aka CBT (4N361), Direct Line Inc – dba Drive Line, Inc. (0GE52), Penn Detroit Diesel (5H3F1), Navistar Defense (338X5), and Wheeler Bros., Inc.

(55683).

The Contracting Officer suggested the buyer prepare the solicitation now to ensure this procurement stays on schedule.

Commerciality:

Per FAR 2.101 (b) the item in this solicitation has been determined to be non- commercial. The following factors that have led to these conclusions are:

a. A search of the internet was done and there is no evidence that this item is sold to other than the military.

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

b. Item is not commercially price listed.

c. A Sources Sought was posted on May 21, 2020 and there were no responses from any company indicating an interest in becoming an approved source for this NSN.

d. The sources contacted during market research indicated that the item is not commercial.

e. There are no known commercial applications.

f. NSN is not coded with an AMSC code of “Z”.

g. The Acquisition Specialist checked the GSA Schedule for this NSN and no information was found. See Attachment # 1 entitled GSA Advantage.

Therefore, it is the determination of the contracting officer that this item is not commercial and this solicitation will be under FAR Part 15.

The current contract SPE7L3-20-D-60AE is with Longhorn Regional Service Center (4GK47).

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 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: A copy of the solicitation will be sent to HDT Vehicle Components (1SERG) and Longhorn Regional Service Center (4GK47) who has the alternate source.

11. To overcome barriers to competition before any subsequent acquisition or recertification of class determination these items are subject to the following methods of locating 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

12. No J&As were found in any the previous procurements. These purchases did not require a J&A because they all were below SAT.

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

SHEARER.MARY.E.12507

02449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.11.10 14:46:27 -05'00'

BUNNELL.SHAU

N.T.1242831663

Digitally signed by

BUNNELL.SHAUN.T.1242831663

Date: 2020.11.10 07:20:10 -05'00' November 10, 2020

DLA Land & Maritime Justification for Other Than Full & Open Competition (May 2018)

APPROVAL REQUIREMENTS

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

ATTACHMENT #1 Data Pull # 2 Product Specialist’s Certification