J&A_SPE7MX18RX014_(FOIA).pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX-18-R-X014

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: 4720014532027

Item Description: Hose Assembly, Nonmetallic

ADQ: 3,890

AMC/AMSC: 3R

WSDC: 30M

Weapon System: Transfer Unit, Crypt (TAMCN: A80727) Approved Source Name (CAGE): Dana Commercial Vehicle (9R200) Approved Part Number: 673997 Estimated Annual Value:

NSN: 4820015229935

Item Description: Valve, Regulating, System Pressure

ADQ: 399

AMC/AMSC: 3B

WSDC: 39A

Weapon System: Missile, Patriot Approved Source Name (CAGE): Dana Commercial Vehicle (9R200) Approved Part Number: 676485 Estimated Annual Value:

ESTIMATED ANNUAL VALUE: $

ESTIMATED BASE PERIOD

ESTIMATED TOTAL VALUE (BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

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

The included NSNs are a hose assembly used on a cryptographic transfer unit (older unit shown below) and a pressure regulating valve used within the Patriot Missile program. Dana Commercial Vehicle (9R200) is currently the only approved source for each of the NSNs. NSN 4720014532027 is a critical application item, but neither of the included NSNs are critical safety items.

The subject solicitation is for the establishment of a firm fixed-price Indefinite Delivery Contract (IDC) with a three-year base period and two available one-year options. This acquisition will be unrestricted and solicited using the procedures in FAR Subpart 13.5, Simplified Procedures for Certain Commercial Items, in accordance with 41 U.S.C. 1901, Simplified Acquisition Procedures.

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 contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited in paragraph 4:

Dana Commercial Vehicle is the only source with part numbers approved by the design control activities. The Government does not own the data or the rights to the data needed to purchase NSN 4720014532027 from additional sources. Dana Commercial Vehicle is uniquely qualified as they are the only known source to possess the data. NSN 4820015229935 must be acquired from the source(s) specified on the source control drawing. Dana Commercial Vehicle is uniquely qualified as they are the only source listed on the drawing. 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:

Dana Commercial Vehicle (9R200)

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.

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.

The AMC/AMSC codes for the included NSNs were reviewed and verified by Danny Carroll, Quality Assurance Specialist (QAS), DLA Land and Maritime SAPD. The QAS also indicated the included NSNs are suitable for a LTC and all means to obtain a technical data package adequate for manufacture of the item have been exhausted.

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

The acquisition will be synopsized on or about March 19, 2018.

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 RFQs.

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. The included items have been determined commercial items by the Contracting Officer. 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 Dana Commercial Vehicle, as well as to small business dealers Ruta Supplies, Inc. (0NJT4), Pines Automotive, Inc. (3B0Y2), and Kyrish Government Group (4GK47).

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 July 26, 2017 with a response date of August 2, 2017. No additional responses were received.

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

A market survey was conducted during 7/12/2017 – 1/8/2018.

Total number of vendors contacted: 4 Names of vendors contacted:

Ruta Supplies, Inc. (0NJT4) Pines Automotive, Inc. (3B0Y2) Kyrish Government Group (4GK47) Dana Commercial Vehicle (9R200)

Names of vendors responding:

Pines Automotive, Inc. (3B0Y2) Kyrish Government Group (4GK47)

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:

Pines Automotive, Inc. is a small business dealer located in Fort Lauderdale, FL and has previously provided NSN 4820015229935 to DLA. The vendor indicated interested in pursuing a long-term contract for the included NSNs and

Kyrish Government Group is a small business dealer and responded to the market survey by indicating they would decline to participate because the included items are not competitive.

Information received regarding the commerciality of the item(s): Pine Automotive did not provide a response on the market survey or provide any information regarding commerciality of the included items, so the Contracting Officer contacted the vendor for more information. The vendor stated they consider the items commercial but did not provide any supporting documentation.

Internet searches reveal that the approved part numbers are available, with pricing, for purchase from various commercial retail websites.

The Justification for Other Than Full and Open Competition (J&A) for past buy SPE7M418C0014 is included as an attachment to this document. This award is the most recent large purchase for the included NSN 4720014532027. A J&A was not available for NSN 4820015229935 as all of the past buys are below the Simplified Acquisition Threshold.

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:

Pines Automotive, Inc. (3B0Y2)

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. The solicitation also 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

Attachment:

J&A - SPE7M418C0014

3/22/2108

SPEERT.ADAM

.D.1230171960

Digitally signed by

SPEERT.ADAM.D.1230171960

Date: 2018.03.22 09:10:56 -04'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.03.27 12:35:21 -04'00'