J&A_SPE7MX17R0116_(FOIA).pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-17-R-0116

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 required to meet the using activity's needs are described as follows:

NSN: 4330012149303

ADQ: 1,782

AMC/AMSC: 1C

WSDC: 29A

Weapon System: Carrier, Personnel M-113A1, M-113A2, M-113A3 Approved Sources Name (CAGE): Allison Transmission, Inc. (73342)

Purolator Facet, Inc. (90005)

ESTIMATED ANNUAL VALUE:

ESTIMATED BASE PERIOD VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING: N/A

The included NSN is a fluid filter parts kit used on M-113A1, M-113A2, and M-113A3 armored personnel carriers. Allison Transmission, Inc. (73342) and Purolator Facet, Inc. (90005) are currently the only approved sources. NSN 4330012149303 is a critical application item.

The subject solicitation is for the establishment of a fixed-price Indefinite Quantity Contract (IQC) with a three-year base period and two available one-year options. This acquisition will be unrestricted.

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.

5. A demonstration that the proposed contractors’ unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4:

Allison Transmission, Inc. and Purolator Facet, Inc. are currently the only sources with part numbers approved by the design control activities. The approved sources retain the data rights or technical data that are not available to the Government. Therefore, this acquisition will be solicited with other than full and open competition under the authority of 10 U.S.C 2304(c)(1), as implemented by FAR 6.302.

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

Allison Transmission, Inc. (73342) Purolator Facet, Inc. (90005)

The use of the authority cited is based on:

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

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.

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

The acquisition will be synopsized on or about June 15, 2017.

The solicitation will be posted and available on the DLA Internet Bid Board System (DIBBS), a web-based application that allows vendors to search and review RFPs.

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

This acquisition will include a three-year base period and two available one-year options. Quantity ranges will be included to allow offerors the opportunity to provide quantity price breaks. Price analysis will be performed to compare proposed unit prices to those of previously awarded acquisitions as well as the prices paid in the commercial marketplace. Certified cost or pricing data will not be required; however, additional pricing support data, such as commercial sales invoices, may be required if determined necessary. Award will only be made if prices are determined fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

Market surveys were sent to Allison Transmission and Purolator, as well as to woman-owned small business dealer Gigli Enterprises, Inc. (1CU83), service disabled veteran-owned small business dealer Statz Corporation (3WGD1), large business dealer Penn Detroit Diesel Allison LLC (62860), and service disabled veteran-owned small business dealer Warfighter Focused Logistics Inc. (6V4L8). Internet searches were performed to gather information regarding commerciality. In an effort to identify additional manufacturing a Sources Sought notice was posted to the FedBizOpps website on January 19, 2017 with a response date of January 26, 2017.

No additional responses were received.

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A market survey was conducted during 1/13/2017 – 1/26/2017.

Total number of vendors contacted: 6 Names of vendors contacted:

Gigli Enterprises, Inc. (1CU83) Statz Corporation (3WGD1) Penn Detroit Diesel Allison LLC (62860) Warfighter Focused Logistics Inc. (6V4L8) Allison Transmission, Inc. (73342) Purolator Facet, Inc. (90005)

Names of vendors responding:

Penn Detroit Diesel Allison LLC (62860) Purolator Facet, Inc. (90005)

Techniques used to conduct survey: A questionnaire and item detail spreadsheet was sent to vendors via email by the Sourcing Strategy Brach (SAPD-ZAA) and posted as an attachment to the Sources Sought notice posted to the FedBizOpps website.

Types of information requested: The market survey requested detailed company information, willingness to participate in a long-term arrangement, ability to supply cost or pricing data, item commerciality, inventory maintenance, applicable quantity price breaks, minimum requirements, materials used to manufacture the items, contract term, option periods and option year pricing adjustments.

Summary of information received:

Penn Detroit Diesel Allison indicated this item is only therefore, the vendor would be unable to quote on an

Indefinite Quantity Contract for the included NSN.

Purolator Facet is a large business manufacturer and is interested in pursuing a long-term contract for the included NSN; however, they plan to quote and provide the item through their authorized distributor Gigli Enterprises.

Purolator Facet indicated this item is considered commercial and included in published price lists and the vendor is willing to provide documents to support commercial pricing.

Information received regarding the commerciality of the item(s): Purolator Facet indicated they classify the approved part number as a commercial product as it is a typical liquid filtration product similar to other commercial filtration products manufactured by Purolator and sold for industrial, aerospace, and military applications. This kit is a dual filter application where two filter elements are joined together and secured using a perforated steel wrapper. The overall configuration and construction is typical for industry standard filtration products. An Internet search reveals that Purolator Facet provides filtration products in numerous commercial markets.

Purolator filter products are available from several automotive parts and general merchandise retailers, including Walmart. Commercial pricing information is also available from various online sources.

The Justification for Other Than Full and Open Competition for past buy SPE7M314C0009 is included as an attachment to this document. This award is the most recent large purchase for the included NSN with the J&A available in Records Management. The Contracting Officer searched Records Management for the J&A on the most recent past buy; however, it was not available.

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

Based upon the technical certification on file in DLA Land and Maritime-VEP technical data is not available to permit full and open competition. The data presently available reflects the minimum needs of the Government. A technical and quality review was initiated by the SAPD Strategic Sourcing Specialists during the project development stage for this acquisition. During the review the Acquisition Method and Acquisition Method Suffix Codes were reviewed and verified for the included NSN.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Purolator Facet, Inc. (90005) through their authorized distributor Gigli Enterprises, Inc.

(1CU83)

11. In addition to the specific pre-solicitation actions taken by SAPD-ZAA and the Contracting Officer to overcome barriers to competition, this item is subject to the following method(s) of locating additional sources:

The solicitation allows for submission and evaluation of alternate offers.

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. If not exceeding $700,000, this signature serves as the approval.

2-8352 ADAM D. SPEERT Phone Date Contracting Officer

Approval/Certification

I have reviewed and approve this justification. The estimated total value of the J&A is

Competition Advocate Phone Date

5/18/2017

SPEERT.AD

AM.D.12301

71960

Digitally signed by

SPEERT.ADAM.D.12

30171960 Date: 2017.05.18 15:11:08 -04'00'

COUTURE.M

ARY.E.12302

53613

Digitally signed by

COUTURE.MARY.E.12

30253613 Date: 2017.05.22 10:46:31 -04'00'