SPE7MX18R0007_-_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-18-R-0007

[X] 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 full and open competition basis. The NSN is for the item name, shown below with the following FSG and FSC:

FSG 25 – Vehicular Equipment Components FSC 2530 – Vehicular Brake, Steering, Axel, Wheel and Track Components

3. Weapon System Description Code (WSDC) Weapon System

72A HEMTT

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

ESTIMATED ANNUAL VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

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.

5. The statutoryauthority 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.

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

NSN 2530-01-458-8017: Pecofacet (Oklahoma) DBA Facet (87405) Part Number SS623FB

NSN 2530-01-458-8017: Beta Fueling Systems, LLC (51744) Part Number SO-623VA

The use of the authority cited below:

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

The use of the authority cited is based on:

[X] AMSC R. The Government does not own the data or rights to the data needed to purchase this part from another source and it has been determined not to be economically feasible to procure the data or rights to the data. Due to the criticality of the item(s), procurement is restricted to approved source(s). Pecofacet (Oklahoma) DBA Facet (87405) and Beta Fueling Systems, LLC (51744) are the only approved sources listed for this item identified as AMSC R.

Pecofacet (Oklahoma) DBA Facet (87405) and Beta Fueling Systems, LLC (51744) are the only known sources with the data necessary to manufacture the NSN under this AMSC and because both companies are the only sources uniquely qualified to manufacture this item; 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.

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

[X] The acquisition was synopsized on 9/27/2017.

CCLIN NNSN Item Name UM AMC AMSC Price SStandard ADQ ADV

0001 2530014588017

FILTER

CANISTER,SEP

EA 1 R 5,636

[X] Dealers of the manufacturers will be solicited.

[X] Other. 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.

8. I hereby determine that the anticipated cost to the Government will be fair and reasonable. Cost and Pricing Data is not required per FAR 15.402-1(b)(3). The item will be solicited i/a/w FAR 12 – Acquisition of Commercial Items. In accordance with FAR Part 12.209, while the Contracting Officer must establish price reasonableness in accordance with 13.106-3, 14.408-2, or Subpart 15.4, as applicable, the Contracting Officer should be aware of customary commercial terms and conditions when pricing commercial items. Commercial item prices are affected by factors that include, but are not limited to, speed of delivery, length and extent of warranty, limitations of seller’s liability, quantities ordered, length of the performance period, and specific performance requirements. The Contracting Officer will determine that the contract award prices are fair and reasonable in accordance with FAR Subpart 15.4. Price analysis will be done to determine price reasonableness by comparing proposed and past history pricing with comparable quantity adjusted by the Producer Price Index. The buyer may request information other than cost or price data to support price reasonableness if necessary.

9. Market Research: A Sources Sought notice was published 5/10/2017, for seven days via the internet (at https://www.fbo.gov/). The purpose of sources sought was to provide an opportunity to other potential sources to manufacture this NSN in order to promote competition and allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition. No response was received. A Pre-Solicitation Notice was published on 9/27/2017, via the internet (at https://www.fbo.gov/). No responses were received.

A Market Survey was conducted by the sourcing Strategy Branch, ZAA. The survey was sent to the following company with no response. ZAA Sourcing Strategy Specialist Mike Hart stated via email on 12/18/2017 that this company was contacted because they previously provided an offer on solicitation SPE7LX-15-R-0076 under this cage code.

Parker-Hannifan Corp. (13573). The point of contact is Email

@PARKER.COM

The survey was sent to large business manufacturer Pecofacet (Oklahoma LLC DBA Facet (87405). The Point of Contact is . Phone

The buyer conducted additional market research to obtain additional information on the commerciality of the item.

The following response was received:

Manufactures the item Deals directly with the Government Large business Has 150 employees Has a parent company named Clarcor with 6,500 employees Does have a commercial distribution network

Item is commercial o Provided commercial sales invoices shown being re-sold to U.S. Government o Provided commercial sales invoices of an alike part that is different from part being procured o Was unable to provide documentation to show the technical characteristics of both items.

On 9/21/2017 the buyer emailed at Pecofacet and stated the invoice provided is of a like part. It is not the exact part DLA is procuring so DLA Tech has to review documentation to show the technical characteristics of both items. DLA Tech also needs to review need documentation to show what drives the difference in price for both items in order to help make a commerciality determination. The buyer looked at contract SPE7LX15D0186 and a commerciality determination could not be made and it was procured under FAR Part 15 procedures. Pecofacet said part justified commerciality on the solicitation for contract SPE7LX15D0186 just as they are doing now with solicitation SPE7MX18R0007. The buyer on the previous procurement procured the item under FAR Part 15 procedures. The buyer informed that if Pecofact is unable to provide documentation to support commerciality the Government will solicit this NSN with Part 15 procedures. Mr.

never responded. The buyer also asked if Pecofacet can provide certified cost or pricing data for this item, but the buyer received no response.

On 9/26/2017, the buyer sent a request to the Defense Contract Management Agency Commercial Item Group (DCMA CIG) to ask for assistance with whether the item being procured is a commercial item. On 11/14/2017, DLA Land and Maritime Price Analyst sent the buyer a copy of the report from DCMA along with a summarized report of the findings. DCMA and DLA Price Analyst concur that this item is commercial and included reasoning in the reports. The Contracting Officer agrees with the report findings;

therefore, the solicitation will be issued under FAR Part 12- Acquisition of Commercial Items. A copy of the DCMA report on commerciality and the summarized report from DLA Price Analyst will be included in the contract file.

Market Research was conducted by Acquisition Specialist with the following company.

• Beta Fueling Systems (51744) On 9/21/2017, the buyer emailed market survey questions to at Beta Fueling Systems (51744) using the email address provided by the Sourcing Strategy Branch, ZAA at at Beta Fueling responded to the email stating Beta Fueling would love to quote for military research.

10.Additional facts supporting other than full and open competitionare:

[X] Based upon the technical certification on file in DLA Land and Maritime – VEP technical data is not complete and cannot be developed to permit full and open competition. However, the item provided must meet the requirements of the cited technical data in addition to the requirements of the part numbered item listed on the solicitation.

[X] A standard technical data review was completed by the SAPD product specialist group and strategic sourcing specialist on 5/23/2017. During the review the Acquisition Method and Acquisition Method Suffix Codes were reviewed and verified for the included NSN. Confirmation of sources for the NSN was also completed and determined to be acceptable. No other sources or adequate technical data could be identified.

12. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Pecofacet (Oklahoma LLC DBA Facet (87405) and Beta Fueling Systems (51744)

13. This item is subject to the following methods of locating additional sources:

[X] The solicitation contains Procurement Note M06, Evaluation of Offers for Part Numbered Items, and Procurement Note L04, Offers for Part Numbered Items, as these are the provisions contained in the actual solicitation.

14. The buyer searched the previous awards listed in the contract history in Records Management in EProcurement for previous J&A’s and was unable to locate a J&A on any of the contracts as required by DFARS PGI 206.304.

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.

Lori A. Archibald Contracting Officer & Date of Approval

APPROVAL/CERTIFICATION

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

Competition Advocate Signature & Date of Approval

COUTURE.MARY.

E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2017.12.18 17:01:23 -05'00'

ARCHIBALD.LO

RI.A.1230193190

Digitally signed by

ARCHIBALD.LORI.A.1230193190

Date: 2017.12.18 14:45:29 -05'00'