CM19031007_J&A_-_Redacted.pdf

FOR OFFICIAL USE ONLY

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

IDC PROJECT CM19031007; SOLICITATION SPE7MX-19-R-X099

May 3, 2019

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

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 an Other than Full and Open competition basis.

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

This solicitation is for eleven (11) National Stock Numbers (NSNs):

The Annual Demand Quantity (ADQ) and Annual Demand Value (ADV) for each of the NSNs is shown in the chart below:

This solicitation will be conducted under the policies of FAR Subpart 13.5 “Simplified Procedures for Certain Commercial Items”. Per FAR 13.501(a)(1): Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. Also, per DLAD 13.500(4), “A Justification and Approval (J&A) is required only for sole source acquisitions.”

The Federal Stock Group (FSG) codes for these NSNs include:

o 30 Mechanical Power Transmission Equipment o 43 Pumps and Compressors o 47 Pipe, Tubing, Hose, and Fittings o 48 Valves o 49 Maintenance and Repair Shop Equipment

CLIN NSN Item Approved Source CAGE P/N(s) U/I AMC AMSC PIC QCC NAICS NAICS Size Standard WSDC PLT

0001 3040-01-431-6697 Shaft, Shouldered W. S. Darley Co. 15852 5000904 EA 3 R 2 CAA 333613 750 EZN 100 0002 4320-01-431-2527 Housing, Liquid Pump W. S. Darley Co. 15852 2050807; 3407000; B229 REP NO. 8 EA 3 C 2 DAA 333996 1,250 EZN 81 0003 4320-01-432-0330 Impeller, Pump, Centrifugal W. S. Darley Co. 15852 2907300 EA 3 C 2 DAA 333996 1,250 EZN 105 0004 4320-01-432-0616 Housing, Liquid Pump W. S. Darley Co. 15852 2801207 EA 3 C 2 DAA 333996 1,250 EZN 91 0005 4320-01-457-0267 Thread Protector W. S. Darley Co. 15852 1001900 EA 3 L 2 DAA 333911 500 EZN 54 0006 4320-01-470-5515 Pump Unit, Centrifuge W. S. Darley Co. 15852 2BE6.5HCG; KP00100 EA 3 Z 2 CAA 333996 1,250 None 159 0007 4730-01-432-0615 Adapter, Straight, Pipe to Hose W. S. Darley Co. 15852 1603600 EA 3 L 2 DAA 332996 500 EZN 87 0008 4730-01-462-4023 Hose Exhaust Clamp W. S. Darley Co. 15852 4402311 EA 3 D 2 DAA 332996 500 EZN 56 0009 4820-01-463-7243 Base Assembly W. S. Darley Co. 15852 AF00602; 1683000 EA 3 L 2 DAA 336310 1,000 EZN 75 0010 4820-01-463-7642 Valve Assembly W. S. Darley Co. 15852 AP01001 EA 3 D 2 DAA 332911 750 EZN 111 0011 4910-01-457-0181 Thread Protector W. S. Darley Co. 15852 1001600 EA 3 L 2 CAA 333613 750 EZN 66

CLIN NSN Item ADQ ADV (Base Year) ADV (5 Year) Maximum

(ADV * 6)

Minimum

(ADV * 0.01)

0001 3040-01-431-6697 Shaft, Shouldered 132 0002 4320-01-431-2527 Housing, Liquid Pump 117 0003 4320-01-432-0330 Impeller, Pump, Centrifugal 142 0004 4320-01-432-0616 Housing, Liquid Pump 102 0005 4320-01-457-0267 Thread Protector 223 0006 4320-01-470-5515 Pump Unit, Centrifuge 144 0007 4730-01-432-0615 Adapter, Straight, Pipe to Hose 123 0008 4730-01-462-4023 Hose Exhaust Clamp 61 0009 4820-01-463-7243 Base Assembly 2 0010 4820-01-463-7642 Valve Assembly 59 0011 4910-01-457-0181 Thread Protector 198

Totals

The Acquisition Method Code/Acquisition Method Suffix Code (AMC/AMSC) for these items is one of the following (see chart above): 3C, 3D, 3L, 3R and 3Z.

The proposed action is for the solicitation and award of a five (5) year, firm fixed price, Indefinite Delivery Contract (IDC), to include five (5) base years, with no option years.

The estimated solicitation values for this acquisition are shown below:

o Annual Demand Value (ADV):

o 5-Year Contract Value (ADV * 5):

o Contract Maximum Value (ADV * 6) o Minimum Contract Value (ADV * 0.01)

There is one OEM/approved source shown for these items:

o W.S. Darley Company; CAGE 15852

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)(1) o (c) The head of an agency may use procedures other than competitive procedures only when— o (1) the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

The Government requires spare parts that are form, fit and functionally interchangeable with those currently used on the supported weapon system. The only manufacturing source approved by the design control activity, with the comprehensive knowledge and expertise needed to manufacture these tire is the W.S. Darley Company.

There are no known pending source approval requests with Engineering Support Activities (ESA).

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

o W.S. Darley & Co; CAGE 15852; individual part numbers shown in chart above.

The use of the authority cited is based on:

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

AMSC C: (CLINs 0002, 0003, 0004) 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. W.S. Darley Co. is the only approved source, as they are the only known source to possess the technical data necessary to manufacture these items.

AMSC D: (CLINs 0008, 0010) 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. The Government does not have the data, or the rights to the data, and it is not economical for the Government to obtain or otherwise develop the data. For the NSNs listed abo e, W.S. Darley is the only approved source for these items.

AMSC L: (CLINs 0005, 0007, 0009, 0011) The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. W.S. Darley has been evaluated by the military services' Engineering Support Activity (ESA) and is the only company known to have the capability to manufacture these items.

o Applies to Long Term Contracts (LTC) - An Item identified by AMSC L has been subjected to limited screening. The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than the identified source. Items identified by L on Long Term Contracts are subject to annual review for possible assignment of a different or permanent AMSC. DLA Land and Maritime agrees to maintain a continual review of these items, to ensure an annual review at a minimum, in part to determine if new technical data is available to allow for assignment of a more permanent AMSC.

Any item determined to be competitively available during the solicitation evaluation phase will be removed from the acquisition requirement. Any item determined after contract award to be competitively available may be deleted from the contract and resolicited.

AMSC R: (CLIN 0001) 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. For the NSN listed above, the Government does not have the data, or the rights to the data, and it is not economical for the Government to obtain or otherwise develop the data.

AMSC Z: (CLIN 0006) This part is a commercial/non-developmental/off-the-shelf item.

Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid.

o NOTE: Only CLIN 0009 (4320-01-470-5515 Pump Unit) is classified with an AMSC of Z. The Commercial Off-the-Shelf field for this item is blank in the Item Master file. As shown in the market research section below, there are two versions of this pump available on GSA Advantage, one of which includes minor modifications made for the Coast Guard. As such, the pump being acquired in this solicitation can be considered as Commercial of a Type, rather than Commercial Off-the-Shelf.

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

This acquisition will be solicited under FAR Subpart 13.5 – Simplified Procedures for Certain Commercial Items procedures. A synopsis was posted on FedBizOps from 2/5/19 to 2/11/19, with no response received. The solicitation will be posted on the internet, via the DLA Internet Bid Board System (DIBBS), and a synopsis will be posted on FedBizOps. The solicitation and synopsis will run concurrently, for a period of 15 days.

The OEM/approved source for these NSNs, W.S. Darley Co. (CAGE 15852) will be sent a copy of the solicitation by e-mail, at the time of its posting on DIBBS.

Prior awardees and dealers for W.S. Darley will also be included on the bidders list and will receive a copy of the solicitation.

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include a clause in this solicitation that provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

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

This will be a five (5) year, firm fixed price, Indefinite Delivery Contract (IDC). The five-year time frame consists of five (5) base years, with no option years.

As this is a commercial solicitation, Certified Cost or Pricing Data is not required. The price analysis of historical contracts, as well as current and future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast data is provided by the DLA Land and Maritime Pricing Support group, and provides timely, accurate price & cost analysis, allowing procurement professionals to understand supplier cost structure and better negotiate supplier proposals.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research. Market research was conducted to find the following:

o Researching items on-line via the internet for availability and features.

o Reviewing previous procurements of items and determining previous acquisition methods.

o Determining vendor interest in long-term contracting for the items.

o Researching/gathering information regarding commerciality of the items.

o Vendor size and business status information.

o Delivery estimates.

o Base year and option years, optimal lengths, possible price/cost advantages.

o Distributor/dealer involvement.

The Sourcing Strategy Specialist published a formal Sources Sought notice to the Government Point of Entry (GPE), Federal Business Opportunities (FedBizOps). The sources sought notice, which included a market survey, was posted to FedBizOps on 10/16/17, with a response date of 10/23/17. The market survey requested information regarding company size/status, if cost/pricing information could be provided, commerciality, FOB point, packing requirements, and estimated delivery information. A copy of the market survey was submitted to the suppliers listed below:

o SIT Corporation CAGE 1MBQ3 o Kampi Components CAGE 7Z016 o JGB Enterprises CAGE 61125 o Military Parts Exchange (MPXLLC) CAGE 55SD5 o Nestor Sales CAGE 1X015 o All-Safe CAGE 2X264

Only the OEM, W.S. Darley Co. returned a completed survey, which indicated an interest in submitting a quote for this solicitation.

This project was subsequently put on hold during the duration of 2018, due to work on priority tire LTCs for the Global Tire Program (GTP, as well as SuperKid projects. Work on the project resumed in January, 2019. Due to the amount of time which has passed since the initial market research, updated market research has been conducted.

A new Sources Sought notice was posted on FedBizOps from 2/5/19 through 2/11/19, with no response received. The OEM/approved source, W.S. Darley Co. (CAGE 15852), was e-mailed an updated market survey.

W.S Darley & Co. (CAGE 15852) is the OEM/approved source for these items. A request to complete an updated market survey was e-mailed to W.S. Darley & Co on 3/6/19. the National Sales Manager/Fire Pump Division of W.S Darley, returned a completed market survey on 2/11/19, and to a series of follow-up questions on 2/27/19. Key points from responses are as follows:

o W.S. Darley & Co. is a small manufacturing firm, with 280 employees.

o They would be interested in pursuing a long term contract with the Government for these parts.

o They would quote directly to the Government in this instance. They do have a dealer network for commercial sales, which includes: All-Safe Inc. (CAGE 2X264), Kampi Components (CAGE 7Z016), SIT Corporation (CAGE 1MQB3) and JGB Enterprises (CAGE 61125) o In regards to CLIN 0009, NSN 4320-01-470-5515 (Pump Unit), states that “The P6 pump is a COTS item that we have offered to the public for over 20 years”. The Pump Unit (Darley P/N 2BE 6.5H CGP6) is described in the Darley OEM Price Guide as “Medium Pressure, High Volume, Direct Drive, Engine Mounted. Choice of the U.S. Coast Guard.” The remaining items on the solicitation are all components of the main pump unit.

o A review of the sales history of the pump, provided by these commercial customers includes o provided links to 2 commercial online sources for the pump:

PumpBiz.com – unit price of $6,691.00 as of 3/11/19.

Firepenny.com – unit price of $5,295.00 as of 3/11/99

In addition to the commercial sources, 2 versions of the pump were found on GSA Advantage on 3/13/19:

o 2BE 6.5 HP Portable Pump (18L X 16W (IN), Engine: Honda 6.5HP, Discharge:

3" Camlock, Suction: 3" Camlock), at a unit price of $4,360.00.

o 2BE 6.5 HP USCG Portable Pump (18L X 16W (IN), Engine: Honda 6.5HP, Discharge: 3" Camlock, Suction: 3" Camlock. Coast Guard version complete with 15 feet of suction hose with strainer, 20 feet of discharge hose with camlock, fuel tank, spare starter rope, flashlight, instruction card, training video and manual.

Does not include container), at a unit price of $5,240.00.

The following statement appears in Internal Guidance Notes: “AFTER TECHNICAL

REVIEW, THIS ITEM MEETS THE DEFINITION OF COMMERICAL ITEM AS

FOUND AT FAR PART 2.101”. However, as the Coast Guard version of the pump differs from the generic version, it is not commercial off-the-shelf, but is instead considered to be commercial of a type, with minor modifications being made for the military. The fuel pump is the only one of the 11 NSNs being solicited that can be found on GSA Advantage, or in a Google search for commercial online suppliers.

Information received regarding the commerciality of the item:

o In accordance with FAR 10.002(b) and FAR 2.101, Definitions, a review has been conducted of the item description(s) to determine if commercial items or non-developmental items are available to meet the Government’s needs or could be modified to meet the Government’s needs. These items are generally considered commercial or commercial of-a-type. In their market survey, W.S. Darley Co., indicated that these items are commercial. , a Product Specialist in SAPD, responded to a request for commerciality information about these parts, stating that “These items might not be Commercial off the Shelf (COTS), but with a minimum amount to no modification be used in a military application”.

o In February of 2018, a request for a commercial review of the NSNs was submitted to the DLA Land and Maritime Pricing Group. On 2/26/18, BPA Report 18-153 was returned to the buyer. The report came to the following conclusion: “The opinion of the Analyst is that these NSNs appear to be commercial based on the commerciality of the higher level pump unit of which they are components. This opinion is based upon confirmation of the availability of this pump in the commercial market place as well as Darley’s assessment of the items as being commercial.” (See Attachment 1) o As noted above, only the fuel pump itself, and not the individual components can be found on GSA Advantage, and through an online search of commercial suppliers.

o The 11 items in this acquisition are determined to be commercial, based upon the market research above.

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.

10. The confirmation of sources listed above was completed by the DLA L&M Product Specialist, , during the technical evaluation of this project on 2/15/18. Based on the limited data the Government possesses, only the approved source can meet the Government’s minimum needs for these items. If new sources are approved prior to award, the solicitation will be reissued allowing for the new source(s) a chance to compete for this acquisition.

In addition, after evaluation by DLA L&M Product Specialist , the AMSC code for NSN 4820-01-463-7642 was changed from “L” to “D”.

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

W.S. Darley Company; CAGE 15852

12. In addition to the specific actions being taken by Technical Support personnel to overcome barriers to competition, before any subsequent acquisitions or recertification of class determination are made, this item is subject to the following methods of locating additional sources:

The Contract History (See Attachment 2) for these NSNs, provided with the data pull, consists only of awards below the Simplified Acquisition Threshold (SAT), with the exception of one large contract (SPE7M8-15-C-0023) for NSN 4320-01-470-5515. This contract was awarded based upon solicitation SPE7M1-15-T-N989.

A review of the J&A (See Attachment 3) for solicitation SPE7M1-15-T-N989 reveals that it was originally thought to be an acquisition under SAT. Consequently, market research was not completed and a Sources Sought Notice was not posted to FedBizOps.

A solicitation was run on DIBBS from 05/22/15 to 06/01/15, resulting in 3 quotes and an award to the OEM/Approved Source, W.S. Darley Co.

This solicitation contains the DLAD Procurement Note entitled Offers for Part Numbered Items (L04).

A sources sought notice for project CM19031007 was run on FedBizOps from 2/5/19 to 2/11/19, with no responses received.

The solicitation for project CM19031007 will be posted on the DLA Internet Bid Board System (DIBBS) for a period of 15 days. The synopsis will be posted to FedBizOps and will run concurrently with the solicitation.

At this time, the requirement/guidance in PGI 206.304 has been fulfilled.

Attachment:

1. DLA Land and Maritime Pricing BPA Report 18-153

2. Contract History for the 11 NSNs, taken from the Project Data Pull

3. J&A for solicitation SPE7M1-15-T-N989

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.

Contracting Officer

Charles E. Mielke II ______ Typed name of Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate

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 the Contracting Activity (HCA) ( ) Over $93,000,000 Senior Procurement Executive (AQ)

MIELKE.CHARLES.E

VANS.II.1253169750

Digitally signed by

MIELKE.CHARLES.EVANS.II.125

3169750 Date: 2019.06.03 14:53:02 -04'00'

SHEARER.MAR

Y.E.1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.06.12 08:43:42 -04'00'