J&A_for_FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX19R0079

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 determined non-commercial, for an Indefinite Quantity Contract (IQC) on other than a full and open competition basis. This is necessary because the Government either lacks complete technical data required to manufacture the supplies or must restrict sources due to the criticality of the part. The rationale specific to this item is detailed by its Acquisition Method Suffix Code (AMSC) as stated below in paragraph 4.

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

NSN ITEM

UNIT ADQ UNIT

PRICE ADV AMC/AMSC

2940016273977 KIT SERVICE

10KW EA 210 3/C

ESTIMATED BASE (3 YEAR) VALUE:

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTIONS):

MAXIMUM CONTRACT VALUE:

The item is used on the Medium Mobile Power Sources (AMMPS) units that supply power to troops in the field.

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. At this time, there is only one approved manufacturing source: CAGE 44940 Cummins Power Generation, Inc.

The use of the authority cited above is supported by the following Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) of the NSN, which were confirmed as complete and accurate by the Strategic Acquisitions Program Directorate (SAPD) Product Specialist on 2/19/19 during the technical review of the NSN for placement on this long-term contract initiative.

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

AMSC D: The Government physically does not have in its possession sufficient, accurate or legible data to purchase this part from other than current source(s).

5. The source listed in the table below, confirmed by the SAPD Product Specialist 2/19/19 during the technical review of the NSN for placement on this long-term contract initiative, is currently the only source with the necessary qualifications, ability, and approval to manufacture the item. This is due to the following:

The listed sources is the only source that possess the complete technical data, rights to the data, and capability necessary to manufacture the item for the required form, fit, function, and quality.

The information stated in the item’s applicable AMSC of D.

Source:

NSN CAGE PART NUMBER CAGE NAME

2940016273977 44940 A045Y127 CUMMINS POWER GENERATION INC.

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

The acquisition will be synopsized in Federal Business Opportunities at least 15 days prior to issuance of solicitation.

The solicitation will be posted to DIBBS.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. A price analysis will be conducted using historical pricing, the Producer’s Price Index (PPI), and a learning curve analysis. Offerors may also be required to submit information other than certified cost or pricing data if deemed necessary by the Contracting Officer in order to determine prices fair and reasonable. Based on the above techniques, the Contracting Officer anticipates the costs to the Government will be fair and reasonable.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought Notice was posted for seven days to www.fbo.gov on 1/29/19. Vendors were requested to provide the name, location, and points of contact for any sources able to manufacture the item to the acquisition specialist listed in the announcement. In addition, a market survey was attached to the Sources Sought Notice for interested vendors to complete and return.

Potential sources would be added to the solicitation mailing list. No responses were received from the notice.

Market surveys were sent to the manufacturer and two dealers appearing in the procurement history by the SAPD Market Research Team in September 2017 when the NSN was initially being considered for inclusion on a long-term contract project. The manufacturer, Cummins Power Generation, and dealer 0LE70 Cummins NPower LLC did not respond to the market survey. Dealer 66P83 HLMF Logistics did respond and stated that it was not able to support a long-term contract.

Market surveys were sent out again by the Acquisition Specialist on 1/30/19 to the manufacturer and two different dealers appearing in the procurement history. The manufacturer initially did not respond, dealer 7SLP5 Cummins, Inc. never responded, and dealer 1MQB3 SIT Corp. responded that it was not interested in a long-term contract because long-term prices from the OEM were not available. The Acquisition Specialist attempted throughout February and March 2019 to obtain market survey/research information from the manufacturer. The only information the manufacturer provided was that it would participate in a long-term contract for up to 5 years and provided a brochure of its kits.

Additional research was also conducted by the acquisition specialist as indicated in the bullets below.

Researching item on-line via the internet for commercial availability. The item was not found for sale on the internet and no commercial information was found. The item was not found on any GSA contracts when researching the GSA web site.

Reviewing previous procurements of the item for delivery and acquisition information.

Previous procurements were automated small purchases with quotes from dealers and had deliveries ranging from 45 – 200 days. There was a previous long-term small purchase (under SAT) Indefinite Delivery Purchase Order (IDPO) for the item. The IDPO was awarded for a 1-year base period, had two available 1-year option periods and contained competitive quotes between two dealers. The awarded delivery was for quantities up to 77 each to be delivered in 132 days. Participants in this previous IDPO did not respond to the market survey for the IQC initiative or replied with no interest in an IQC.

Based on the above research, there is not sufficient information or data to indicate the NSN is a commercial item per FAR 2.101; therefore, the item will be procured under FAR Part 15 procedures.

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 and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

During the project development stage, the NSN included on this solicitation was provided to the DLA Land & Maritime Value Management (VM) Unit and the Strategic Acquisition Programs Directorate (SAPD) Product Specialist for review; no additional sources were identified during those reviews.

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

44940 Cummins Power Generation, Inc.

11. This item is subject to the following methods of locating additional sources in an effort to overcome barriers to competition:

The solicitation will contain DLAD Procurement Notes: L04-Offers for Part Numbered Items and M06-Evaluation of Offers for Part Numbered Items.

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 & 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 info for both the DLA Value Engineering program and the DoD Value Engineering program.

12. There are no prior J&As available. Previous procurements were below SAT and did not require a J&A.

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.

Contracting Officer Signature & Date

APPROVAL/CERTIFICATION:

I have reviewed and approve this justification:

Competition Advocate Signature & Date

APPROVAL REQUIREMENTS:

( ) Up to $700,000 Contracting Officer

(X ) $700,000 to $13,500,000 Competition Advocate

ROBERTS.TRACY.S.

1230171781

Digitally signed by

ROBERTS.TRACY.S.1230171781

Date: 2019.04.29 09:34:32 -04'00'

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.05.02 09:07:51 -04'00'