J_and_A_SPE7MX-18-R-X029_-_reviewed_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7MX-18-R-X029_____

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

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 items of supply on other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Delivery type contract for Air Brake Actuator Assemblies. The proposed acquisition is for DLA-managed items with one approved source: Meritor Heavy Vehicle Systems (CAGE 78500). The acquisition includes two (2) National Stock Numbers (NSNs).

DLA Land and Maritime intends to enter into a fixed unit price, long-term contract (LTC) consisting of a three-year base period and two option years.

3. The supplies required to meet the using activity's needs is described as follows:

CLIN ITEM NSN ADQ ADV AMSC

0001 Actuator Assembly, Air Brake 2530015153346 604 R

0002 Actuator Assembly, Air 2530015153347 600 R

Identify end item, weapon system, or class of item: MRA: Parent WSDC for all Army Mine Resistant Ambush Protected (MRAP)

ESTIMATED BASE YEAR ONE VALUE_

ESTIMATED TOTAL VALUE (BASE + OPTIONS)_

MAXIMUM CONTRACT VALUE _

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING ___________________

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 (CAGE 78500).

The use of the authority cited is based on:

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

(The following are the AMSC descriptions. The full text is available in DFARS PGI 217.7506 Part 2).

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

[X] 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.

Meritor is the only known source that owns the data rights needed to manufacture these items.

A re-validation of the AMSC and approved source was received from the SAPD Product Specialist on 3/21/18.

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

(X) The acquisition will be synopsized on or about April 16, 2018.

(X ) 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) A sources sought was posted on FEDBIZOPPS on 7/27/17 with a return response of 8/3/17. No responses were received as a result of the sources sought that was posted.

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

Cost or pricing data in accordance with FAR 15.403-4 will not be required as NSN have been determined commercial “of a type”. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. Comparison will be made of the historical prices for the similar items. By using the above techniques, the Contracting Officer anticipates that the cost to the Government will be fair and reasonable. Requirement is being solicited with a three-year base period and two option years.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results. Initial market research was started on July 13, 2017. Market research questionnaires were emailed to the coded source and dealers showing in history. A sources sought was posted on FEDBIZOPPS on 7/27/17 with a response date of 8/3/17. The sources sought resulted in no companies showing interest in proposing on the requirement. Buyer supplemented market research from 2/20/18 through 3/12/18 to obtain information to support commerciality. During market research, Axletech International was identified as manufacturing similar items. Company will be added to the “bidder’s list” and will be emailed a copy of the RFQ once the solicitation is issued.

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

A market survey was conducted on/during July 13, 2017 through August 3, 2017 from the SAPD market research team. Buyer supplemented market research from January 30, 2018 through March 12, 2018.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

Total number of vendors contacted: 7

Names of vendors contacted and responding: Vendors contacted were: Badger Truck (CAGE 06YZ5), CBT (CAGE 4N361), HDT Vehicle Components (CAGE 1SER6), Meritor (CAGE 78500), Oshkosh (CAGE 75Q65), Penn Detroit Diesel Allison (CAGE 62860) and Wheeler Brothers (CAGE 55683). Penn Detroit Diesel Allison and Wheeler Brothers were the only companies responding with interest in proposing on subject solicitation. Meritor indicated by emailed dated 7/13/17 they would not quote direct or ship to DLA stock locations.

Techniques used to conduct survey: Email and posting a sources sought on FEDBIZOPPS.

Types of information requested: Companies were asked to respond to areas regarding their independence from the manufacturer if they were a dealer/distributor, inventory capability, their opinions as to quantity sensitivity of the item, their willingness to propose option years, questions to assist Contracting Officer in determining/not determining whether the item was commercial, preference to FOB point and its impact on price, if inspection and acceptance at origin was acceptable, preference as to zone pricing, packaging capability and EDI capability.

Summary of information received:

Penn Detroit Diesel Allison (62860): Company responded with market research questionnaire on 7/25/17. Company is a large business dealer/distributor and is interested in pursuing a Long Term Contract for these items.

Company indicated the items were commercial.

Wheeler Brothers (55683): Company responded with market research questionnaire on 7/18/17.

Company is a large business dealer/distributor and is interested in pursuing a Long Term Contract for these items.

Company indicated the items were not commercial.

Information received regarding the commerciality of the item(s): Even though Meritor will not quote direct to the Government, they provided information to assist the Contracting Officer in

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014) making a commerciality determination. The SAPD product specialist also agreed that while these items themselves are not commercial they are “of a type”. Neither item is on the GSA schedule.

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.

There is no previous J&A for the items as all history was under the simplified acquisition threshold.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Penn DDA (CAGE 62860) and Wheeler Brothers (CAGE 55683). _________________

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

(X) The solicitation contains DLA Procurement Notes L04, Offers for Part Numbered Items and M06, Evaluation of Offers for Part Numbered Items.

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: Forecast information is available to all potential sources for both sole source and competitive items. The DLA Supplier Requirements Visibility Application (SRVA) is a database that is available via the DLA Internet Bid board System (DIBBS). SRVA provides potential sources the opportunity to search for information on DLA’s anticipated requirements based on updated monthly forecasts. Essentially it provides 24 months of sole source and competitive projected purchase order quantities. Potential alternate sources for current sole source items can easily see DLA’s forecasted procurements and can contact the Value Management Unit to become approved sources for sole source and code and part number items.

The DLA Land and Maritime Value Management Unit continually seeks out sole source, limited competition over-priced, low reliability and hard to buy items to improve their value and support posture. The DLA Land & Maritime internet website contains information for all potential sources on how to challenge prices, how to submit a Value Engineering Change proposal, a link to DoD’s Value Engineering program and the necessary contact information for both the DLA Value Engineering program and the DoD Value Engineering Program.

DLA Land and Maritime Justification & Approval for Other than Full and Open Competition (J&A) (April 2014)

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.

Contracting Officer Date

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[X] 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)

HAYDEN.ESTHE

R.A.1206755578

Digitally signed by

HAYDEN.ESTHER.A.120675557

Date: 2018.04.09 09:21:49 -04'00'

COUTURE.MAR

Y.E.1230253613

Digitally signed by

COUTURE.MARY.E.1230253613

Date: 2018.04.20 14:46:01 -04'00'