SPE7MX17R0045_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION

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 other than a full and open competition basis.

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

LINE

ITEM NSN BRIEF

DESCRIPTION

PART

NUMBER AMC AMSC STANDARD

PRICE

ANNUAL

DEMAND

QUANTITY

ESTIMATED

1-YR.

ANNUAL

DEMAND

VALUE

0001 6130-01- 475-5321 Battery Power Supply (0VWE2)

TIMV3000GPU-24 3 D 87

This Battery Power Supply supports LIGHT ARMORED VEHICLES (TAMCN: E09507B).

ESTIMATED 1-YR. ADV:

ESTIMATED TOTAL VALUE (3-YR. BASE + OPTIONS):

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.

Brief narrative supporting the situation and weapon system:

DLA Land and Maritime requires this item for war fighter support. It is only available from Tesla Industries, Inc. (0VWE2), hereafter to be referred to as Tesla. The letters “MV” in the part number TIMV3000GPU designates this part is designed for military vehicles.

WebFLIS specifically reflects end item “Light Armored Vehicle TAMCN: E09507B.

Tesla refers to this item as a ground power unit. The item is used to provide power to vehicles and it has multipurpose uses by the military. Some examples are jump-starting vehicles, providing air conditioning in vehicles or for the running of turrets on tanks.

See attachments one (1) and two (2) of photographs of the Battery Power Supply and the end item vehicle that this NSN supports.

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

Tesla Industries, Inc. (0VWE2)

SOLICITATION

The Product Tech Specialist of record sent a December 12, 2016 email confirming the AMC/AMSC of “3D” is valid and accurate for NSN 6130-01-475-5321.

The use of the authority cited below:

AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS

3, 4, or 5 are valid.

At this point in time, Tesla Industries is the only source known that possesses the technical data, the rights and manufacturing knowledge required to make this item. This data is proprietary to the vendor. No other manufacturer has the technical information to produce this item. The Government does not have access to this data. At this point in time, Tesla is in the sole position of being uniquely qualified to manufacture this item to the Government.

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

Procurement history was examined to determine past awardees for this NSN. Tesla is reflected as the sole awardee going back to initial awards in 2001.Tesla and other vendors have shown interest in a 5-year long term contract. A Sources Sought notice ran on FedBizOpps (FBO) during the time period of October 12 through October 20, 2016. There were two (2) responses obtained. On October 14th, Smart Power Systems, Inc. (3B2M0) notified the Buyer by email of their intention to provide an alternate offer. The Buyer responded and explained that a “complete” Source Approval Request (SAR) technical data package would need to be submitted for evaluation. This explanation was sent to Mr. Sudhir Trivedi of Smart Power on three separate occasions: 10/14/16, 12/14/16 and 12/21/16. The other vendor, Tinitron, Inc. (3EMS1), contacted the Buyer of their interest to provide this item as a dealer. Both vendors will be included on the solicitation’s Bidder List.

There were 10 Offer Abstracts from recent solicitations examined for past responders. There has been very little interest by dealers to provide this item (most likely due to dealers’ inability to successfully compete on price against the OEM). The following three (3) dealers will be also be included on the Bidders List. They are Linmarr Associates (1GX03), Equs Logistics (5URY2) and Kurtek Logistics, Inc. (7KYC2).

Before the solicitation is issued for 30 days on the DLA Internet Bid Board System (DIBBS), a presolicitation synopsis will also be advertised on FedBizOpps (FBO) for 15 days. This action will take place around February 17, 2017. Email notification after posting of the solicitation will be sent to all vendors on the Bidders List. It has been determined the totality of these advertisements provide adequate notice and opportunity for any interested party to come in and submit a proposal.

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

The subject contact action will be for a firm-fixed price contract to be structured with a 3-year base period and two option years, that may or may not be exercised, and which will be determined by the discretion of the Government. Total contract length will be no longer than five (5) years. The item has been determined commercial by the Contracting Officer;

therefore, FAR Part 12 commercial acquisition procedures will be followed. Certified Cost or Pricing Data will be exempted for this procurement.

The Services has been purchasing this item since 2001. The most recent purchase took place in November of 2016 by DLA Land and Maritime. Determinations for fair and reasonable prices have been performed on all these past awards. Market research indicates Tesla will be submitting a proposal on the forthcoming solicitation. Past awards to Tesla have been determined fair and reasonable. Any other offeror would have to provide the Tesla part number and their price would have to be determined fair and reasonable. Any exception to providing the Tesla part number would be considered an alternate offer. It would be expected a fair and reasonable price determination would be attainable on an alternate offer that has proceeded through the evaluation process and is ultimately approved as a second source.

8. Market Research/Efforts to Obtain Competition:

FAR reference 10.002(b)(1) states, “the extent of market research will vary, depending on factors, such as urgency, estimated dollar value, complexity and past experience.

The Buyer conducted the market research for this procurement to identify capabilities within the market that would satisfy the agency’s needs. Below are some of the methods utilized and the results of those efforts.

-Procurement history from sources SRM and Haystack were reviewed for past awardees.

The OEM, Tesla, has been the sole awardee on all past awards.

-Ten (10) offer abstracts from the most recent past solicitations were examined for past responders. There were only a few valid dealers that were reflected; which were: Linmarr

Associates (1GX03), Equs Logistics (5URY2) and Kurtek Logistics, Inc. (7KYC2).

-The Tesla representative was contacted by phone on May 10, 2016 to request their responses to market survey documents. Additionally, email communication took place with Tesla in May of 2016 to secure price lists, commercial sales invoices and Safety Data Sheets.

-As mentioned previously, a Sources Sought notice was posted to FBO during the time period of October 12 to October 20, 2016. A market survey spreadsheet and questionnaire were included as attachments to the Sources Sought notice. The notice requested that interested parties complete the documents and return to the Buyer.

There were two (2) responses to the Sources Sought. Tinitron Inc. responded with an email response and a partially completed market survey. Smart Power Systems did not return any market survey documents with their email response, but communicated that “they would apply for this survey of sources sought notice as a competitive supplier”. Queries conducted in Records Management resulted in the discovery that Smart Power Systems (3B2M0) quoted an alternate offer in 2010 in response to a solicitation on this subject NSN. The Smart Power System offer was eventually disapproved by the Tech Specialist due to the vendor’s failure to provide all the necessary information for source approval.

-In addition to the Sources Sought notice, market survey spreadsheet and questionnaire requests were sent on May 16, 2016 to Linmarr Associates (1GX03) and Equs Logistics (5URY2). Both of these small businesses had been reflected on offer abstracts from past solicitations. Neither vendor provided responses to the email requests. Smart Power Systems was sent a second request to complete the market survey documents on December 14, 2016.

Their completed documents were returned on December 20, 2016.

These market research documents consisted of general questions regarding the offeror’s company, as well as long term contract-related topics, such as: interest in a potential LTC, willingness to quote option years, pricing preferences, availability of certified cost or pricing data, commerciality, providing stock delivery, F.O.B. and packaging capabilities and existence of minimum and maximum quantity requirements. See below for a summary of the pertinent information received.

Tesla Industries (0VWE2) -Small business -Manufacturer; and ACTUAL manufacturer of this item -Will deal directly with the Government -Interested in a Long Term Contract with firm-fixed pricing

Tinitron Inc. (3EMS1) -Small business (SDB- Small Disadvantaged Business) -Will be performing as a Dealer -Will deal directly with the Government -Interested in a Long Term Contract with firm-fixed pricing

Smart Power Systems, Inc. (3B2M0) -Small business -Manufacturer; but intends to manufacture alternate item -Will deal directly with the Government -Interested in a Long Term Contract with firm-fixed pricing

Information regarding the commerciality of the item:

The Contracting Officer has determined this item to be commercial. Tesla provided a price sheet and commercial sales invoices. Additionally, it was discovered a past IQC (Indefinite Quantity Contract) award (#SPM7MX11D5012) on 2/28/2011, reflected that FAR Part 13.5 commercial procedures were utilized in the procurement.

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

Based on the technical certification on file in DLA Land and Maritime – VEP technical data is not available; therefore, these conditions do not allow for 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:

- Tesla Industries (0VWE2)

- Smart Power Systems, Inc. (3B2M0)

- Tinitron, Inc. (3EMS1)

All of the above vendors reflect active registration status in SAM with no active exclusion records.

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

[ X ] The solicitation contains the provision entitled Conditions for Evaluation and Acceptance of Offers for Part Numbered Items.

If an alternate offer is submitted, a complete Source Approval Request (SAR) technical data package would be required. If the savings threshold was met, the SAR would proceed through a

SOLICITATION

formal process of evaluation. Completed SAR packages would be forwarded for technical review to DLA Land and Maritime Value Engineering (VE). VE analysts will conduct the initial technical review and make the determination if the SAR package should be elevated to the Engineering Support Activity (ESA) for further technical evaluation, potential testing and approval.

[ X ] Other:

The Buyer cannot locate the last Justification and Approval document from the 2011 IDPO (Solicitation # SPM7MX-10-X-0087/PO# SPM7MX-11-D-5012). A thorough search was conducted in Records Management and the document was not found. Additionally, an advanced search through the FedBizOpps archives was conducted, but the J&A document did not come up.

Assistance from a FBO representative also resulted with no success in finding the document. It should be noted the contract has expired.

Attachments:

1) Photo of Battery Power Supply

2) Photo of Light Armored Vehicle

SOLICITATION

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

This justification has been reviewed for legal sufficiency:

DLA Land and Maritime Counsel Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

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

2/14/17

COUTURE.MARY.E.123

0253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.02.16 10:23:01 -05'00'

PETERSON.GEORG

E.D.1242831744

Digitally signed by

PETERSON.GEORGE.D.1242831744

Date: 2017.02.14 09:55:22 -05'00'

Date: 2017.02.14 13:26:51 -05'00'