J&A6.302-1cSPE7MX18RX020.pdf

SPE7MX-18-R-X020

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

ORIGINAL

ADDENDUM (attach copy of original J & A for add-ons or revisions)

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:

The subject solicitation is a 5-year IQC project. These items are considered commercial and are all manufactured by Meritor Heavy Vehicle Systems CAGE 78500.

NSN 2520-00-388-4197 is a “SPIDER UNIVERSAL JOINT” that is used is used on many different weapon systems such as the Patriot Missile, High Mobility rocket launcher, and Family of Medium and Light Tactical Vehicles (FMTVs).

NSN 2520-01-361-5204 is a “DIFFERENTIAL DRIVIN” that also is used on the Patriot Missile and the FMTVs.

NSN 2520-01-545-0390 is a “PROPELLER SHAFT” that is also used on the FMTVs, High Mobility Rocket Launchers, and MRAPs.

The only item on an LTC is 2520-00-388-4197 which was on the FASI contract.

ESTIMATED (3-Year) BASE VALUE:

ESTIMATED TOTAL VALUE (3-year BASE + OPTIONS):

MAXIMUM CONTRACT VALUE:

4. The statutory authority 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.

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

MERITOR HEAVY VEHICLE SYSTEMS LLC. CAGE 78500

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

The use of the authority cited is based on:

[X ] 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

ICP NSN AMC/AMSC Est. ADV DLA Land & Maritime 2520-00-388-4197 3/C DLA Land & Maritime 2520-01-361-5204 3/D DLA Land & Maritime 2520-01-545-0390 3/B 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.

[ X ] 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.

[X ] 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.

Only Meritor Heavy Vehicle systems LLC CAGE 78500 possesses the necessary data and legal rights to the data to manufacture the NSNs listed on this project. A technical review was completed on 02/27/2018 and all AMC/AMSC codes and approved sources were verified and were accurate.

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

(x) The acquisition will be synopsized.

( ) Manufacturers of similar products identified in the market research will be solicited.

(x ) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 applies. (explain)

(x) Other. (Explain) Sources Sought Notice posted to FedBizOps on 03/05/18 with a closing of

03/12/18 with no responses received.

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

The basis for the Government’s fair and reasonable price determination is anticipated to be price analysis. Based on the results of market research, it appears that adequate price competition will not exist at time of offer evaluation. The Large/OEM sole source manufacturer has indicated they are interested in submitting an offer. Previous procurement history was reviewed during the market research phase and may be used in price analysis. The DCMA CIG reviewed these items for a commercial item recommendation and pricing support. The buyer will use the information provided by the DCMA to assist in the determination of a fair and reasonable price. Further, the contract length will be 5 years based on the information obtained during market research.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

Other market research efforts include: A review of the purchase history, coordination with the DLA Land and Maritime Small Business Office, and a review of the project data by DLA Land and Maritime-ZCA.

One NSN has a previous J&A that was located (2520-00-388-4197) and the previous J&A is attached.

This NSN is currently on a LTC that will expire in September 2018. The other NSNs are currently procured by spot buys.

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

A market survey was conducted on/during: 03/05/18-03/15/18 Total number of vendors contacted: __1___ Names of vendors contacted and responding:

CAGE 78500-Meritor Heavy Vehicle Systems-not interested in submitting an offer directly but will work with their approved dealers to submit an offer.

Techniques used to conduct survey: _______Email, and telephone market survey .

Types of information requested: __________See page 4 for Survey Results_______________.

Summary of information received: See page 4 for Survey Results .

Information received regarding the commerciality of the item(s): See page 4 for Survey Results

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

(x) Based upon the technical certification on file in DLA Land and Maritime-VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government. DLA Land and Maritime-VE was contacted on 04/09/18 by email. Jeff Carpenter responded on 04/09/18 and stated “there are no engineering projects on any of these NSNs at this time.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

APPROVED DEALERS OF MERITOR HEAVY VEHICLE SYSTEMS CAGE 78500

11. The following actions are being taken to identify additional sources before any subsequent acquisitions are made:

[ x ] The solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [ ] Other (Explain)_____________________________________________________________________________

Market Research / Survey Summary Market Survey Results: Informal market survey information was obtained by email and telephone. Meritor Heavy Vehicle Systems responded with interest in this solicitation. The results of the survey are as follows:

Meritor Heavy Vehicle Systems LLC CAGE 78500 An informal market survey was conducted with . The vendor’s survey responses and follow-on emails were completed and yielded the following data: Meritor is a Large Business manufacturer and has indicated an interest in participating in a long-term contract with DLA.

indicated that these items are commercial items. This is a sole source item with Meritor as the manufacturer. These NSNs are various items that mostly work with FMTVs and Missile systems. The DCMA CIG reviewed these items and recommended that they could be determined commercial. The Product Specialist and Value Engineering also reviewed these items and also stated that they appear to be commercial.

stated Meritor would be interested in participating in a

NSN 2520-00-388-4197 is on the FASI contract. The other NSNs are not currently on a LTC.

Certified data is not required on this item as the Contracting Officer has determined that these items are commercial based on the information provided by the DCMA.

NSN: See Pg 1

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.

Lori Archibald Date Contracting Officer

Approval/Certification

I have reviewed $3,502,333.00

Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

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

[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

ARCHIBALD.LO

RI.A.1230193190

Digitally signed by

ARCHIBALD.LORI.A.1230193190

Date: 2018.05.14 14:37:56 -04'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.05.17 14:27:43 -04'00'