J&A_SPE7MX-18-R-0006_(FOIA).pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-18-R-0006

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: 6110015789150

Description: Regulator Assembly

ADQ: 51

Est. Values: ADV)

3-Year Base Period) 5-Year Total) (Contract Maximum)

AMC/AMSC: 3B

WSDC: X2M

Weapon System: Amphibious Assault Vehicle Command-7A1 (AAVC7A1) Source Controlled Drawing Approved Source Name (CAGE): C. E. Niehoff Co. (76761)

NSN: 6115015789084

Description: Generator, Alternating Current

ADQ: 47

Est. Values: ADV)

(3-Year Base Period) (5-Year Total) (Contract Maximum)

AMC/AMSC: 3B

WSDC: X2M

Weapon System: Amphibious Assault Vehicle Command-7A1 (AAVC7A1) Source Controlled Drawing Approved Source Name (CAGE): C. E. Niehoff Co. (76761)

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 NSNs are a regulator assembly and generator used on the Amphibious Assault Vehicle Command-7A1 (AAVC7A1). Both items are purchased in accordance with source controlled drawings. C. E. Niehoff Co. (76761) is currently the only source cited on the drawings that has been approved. Both NSNs are critical application items.

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:

C. E. Niehoff Co. is the only approved manufacturing source cited on the source controlled drawings and currently the only source with the complete data necessary to manufacture these items. 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:

C. E. Niehoff Co. (76761)

The use of the authority cited is based on:

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

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.

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

The acquisition will be synopsized on or about October 18, 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.

Certified cost or pricing data may be required and audit performed by the cognizant DCMA to determine the reasonableness of the proposed cost elements. Additional price analysis will be performed to compare proposed unit prices to those of previously awarded acquisitions. Award will only be made for those items that are determined fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

Market surveys were sent small business manufacturer C. E. Niehoff Co., as well as to five other small business dealers found in the procurement history for the included items. 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 March 21, 2017 with a response date of March 28, 2017. No additional responses were received.

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

A market survey was conducted during 3/20/2017 – 5/6/2017.

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

S I T Corporation (1MQB3) D W Diesel, Inc. (1S9F5) Southern Automotive Wholesalers (1Y875) Southeast Power Systems (3L018) Cavanaugh Government Group, LLC (5UY76) C. E. Niehoff Co. (76761)

Names of vendors responding:

Southern Automotive Wholesalers (1Y875) Southeast Power Systems (3L018) C. E. Niehoff Co. (76761)

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:

Southern Automotive Wholesalers indicated they would decline to quote on the solicitation and did not provide any additional information.

Southeast Power Systems indicating they are unable to participate in this acquisition as C. E.

Niehoff Co. informed them that the parts are “no bid items.”

C. E. Niehoff Co. (CEN) is a small business manufacturer and the only source cited as approved on the source controlled drawings. CEN indicated interest in pursuing a long-term contract for the included NSNs.

The vendor indicated the items are not considered commercial.

Information received regarding the commerciality of the item(s): CEN indicated the included items are not considered commercial. The included items are manufactured specifically for use on a military vehicle and have no application in the commercial marketplace. A search of the product numbers on CEN’s websites resulted only in NSN specific information. An Internet search of the CEN product numbers returned only results for military specific applications and no sources for commercial purchase of these items.

The Justification for Other Than Full and Open Competition for past buy SPE7LX15D0190 is included as an attachment to this document. Delivery orders issued against this IQC are the most recent awards for the included NSNs. All other past buys were below the simplified acquisition threshold and justifications were not required.

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 NSNs.

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

C. E. Niehoff Co. (76761)

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

The acquisition will be synopsized on the Federal Business Opportunities website and the solicitation will be posted and available on DIBBS to provide as much visibility as possible to potential suppliers. However, this acquisition is restricted to materials manufactured by the source listed on the source control drawings and that source has indicated they will not provide the technical data to the Government; therefore, DLA will not allow for evaluation or approval of alternate offers for this acquisition. Language will be provided in the solicitation instructing potential sources that are interested in qualifying their product for purposes of future acquisitions to contact the cognizant design activities specified on the source control drawings.

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.

2-8352 ADAM D. SPEERT Phone Contracting Officer

Approval/Certification

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

SPEERT.ADA

M.D.12301719

Digitally signed by

SPEERT.ADAM.D.1230

171960 Date: 2017.09.14 14:58:01 -04'00'

Competition Advocate Phone

Attachment:

SPE7LX15D0190 Justification for Other than Full and Open Competition

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230

253613 Date: 2017.09.25 17:49:29 -04'00'