J&A6.302-1-SPE7MX19RX001.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7MX-19-R-X001

DLA Land & Maritime Justification for Other Than Full & Open Competition

(May 2018)

ORIGINAL J&A

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:

a. This solicitation is issued in accordance with FAR 13.5 – Simplified Acquisition Procedures in accordance with 41 U.S.C. 1901.

b. This solicitation is being issued to establish an Indefinite-Delivery Contract (IDC) for a 5-Base Year Period, no options.

CLIN

NSN

Brief Description

AMC/AMCS

ADQ

Estimated

Annual Demand Value (ADV)

0001 6105015679429 MOTOR, DIRECT CURRENT 1/Z 607

End Item description and Weapon System:

CLIN NSN WSDC End Item 0001 6105015679429 XEA Family of Medium Tactical Vehicles (FMTV)

This item is a Direct Current Powered (Battery) Hydraulic Motor Kit and used on the Family of Medium Tactical Vehicles (FMTV). This motor powers a self-contained hydraulic system that enables the truck cab tilt function for the trucks. The motor is battery operated in case other power supplies have failed (i.e.

truck main drive motor). The motor works in conjunction with a piston pump from the Parker Oildyne miniature five piston pump product line. The motor will power the hydraulic piston pump to perform these functions: 1) cab lift; 2) lowering spare tire; 3) kneeling. When access is required under the cab of the vehicle, the motor drives a hydraulic piston to lift and lower the cab of the MMPV in and out of position. The size and weight of the spare tire requires mechanical aid to lower it from behind the cab of the vehicle. The motor is used to power the spare tire crane to drop the tire down from behind the cab for use by the warfighter. The motor and pump are also used to ' kneel' the vehicle to allow it to board transport aircraft by compressing the suspension and thus reducing the overall height of the vehicle, thus reducing the height of the vehicle to enter the cargo compartment of the aircraft.

The estimated base value is ________, with an estimated total value (5 Base Year Period) of ___________, and a maximum contract value of __________.

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.

The item needed for this acquisition is available from only one or a limited number of responsible sources and no other type of items will satisfy the Agency needs.

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

The responsible sources listed below are the only approved sources of supply for this NSN:

NSN Company CAGE Part Number

6105015679429

PARKER-HANNIFIN CORPORATION DBA OILDYNE

DIV HYDRAULIC PUMP AND POWER DIVISION

05448

776210

The item needed for this acquisition are available from only one or a limited number of responsible sources and no other type of items will satisfy the Agency needs. Parker-Hannifin (05448) is the only approved source of supply for this NSN. Adequate data for the evaluation of alternate offers is not available at the procurement agency. The company listed above is the only company that have gone through the source approval process. If a product different from the approved part is offered by the contractor, the contractor must get their part numbers approved by submitting a source approval package to the Engineering Support Activity (ESA).

The DCMA technical analyst indicated that according to Parker-Hannifin, part number 776210 is a kit composed of the following part numbers and quantities:

776210 Kit Motor Assembly Component Part Number Component Description Quantity

400775 SHCS 10-24x.75 DS 2

405673 O-RING 132-70 BUNA 1

413792 COUPLING 865 1

416114 MOTOR 24DC STRAIN RELIEF 1

416156 KIT INSTR SHT 775210 1

The motor is based on a standard commercial motor but modified to meet the requirement as needed to fit the special constraints of the MMPV. The DC Motor used on this power unit itself is P/N 416114 and sold only in the assembly kit, and not available to the public. However, commercial versions of 24 Volt DC Motors were found during market research, and are readily available for various applications from man lifts, scissor lifts, wheelchair lifts, and boat lifts. Specifications for the motor power unit were not available; however Parker's 550 Series Hydraulic Power Units range from 0.5 to 3 Horse Power, have 7 pump sizes for flows, have an external adjustable relief valve a variety of reservoirs, and up to 3000 psi capability. Commercial Hydraulic Power Units can be found commercially in 12 or 24 Volt configurations, with similar capabilities as the Parker item. Similar items is the NorTrac 12 Volt DC Hydraulic Power Unit and the Concentric commercial unit, PIN 1560052, offers a 24 Volt DC Hydraulic Power Unit, that provides up to 3000 psi, and flows 3.5 gallons per minute perform the same functions as the Parker in that a hydraulic piston pump is actuated by a DC Motor, and the hydraulics function to lift, pull, or compress an object. The Concentric Power Unit was found on the Grainger.com web site. No drawings or others specifications were made available for direct comparisons; however, the market research indicates the functionality provided by the known commercial items to be the same. As a result, DCMA CIG recommends the subject DC motor and associated replacement kit be considered commercial in accordance with definition (3)(i) of PAR 2.101 "Commercial item." See attachment# 1.

Although commercial, it is essential that the Government procure Parker Hannifin’s product only because this item has been modified to meet specific military requirements and is the only known item that can satisfy the Government’s requirement. In particular, it has been modified to fit the special constraints of military tactical vehicles and to address the weight of the vehicles’ spare tire to be manageable by the warfighter. Additionally, this kit provides instructions and piece parts for replacement of the motor by the warfighter in the field.”

Parker-Hannifin is the only uniquely qualified source of supply that own the technical rights for the NSN/item. In order for competition to be present, the owners (such as the U.S. Army or U.S. Navy) of the weapons systems would need to buy the technical rights from the company, who are the Original Equipment Manufacturer (OEM), then re-code the item so that other companies could offer proposals. For this project though, Parker-Hannifin (05448) again is the only source of supply that own the technical rights to supply this part. There is no other way to promote competition at this time.

The use of the authority cited below:

AMC 1. Suitable for competitive acquisition for the second or subsequent time.

The use of the authority cited is based on:

AMSC Z. 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.

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

a. The acquisition will be synopsized on or about March 15, 2019, and will run for 15 days. At the completion of the synopsis period, the RFP will be solicited on the internet for 30 days, via the DLA Internet Bid Board System (DIBBS).

b. Alternate items will be evaluated for this procurement.

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 to include the analysis of other than cost or pricing data which may take the form of invoices of commercial sales, pricelists or should-cost analysis.

8. Market Research/Efforts to Obtain Competition:

a. The product specialist reviewed this NSN for the project during project creation, and no new sources were found. Two Sources Sought notice was posted on September 7, 2018 and on February 19, 2019, in FedBizOpps for 10 calendar days to find potential sources for this NSN and no company indicated an interest to become a manufacturer.

b. A market survey was conducted on/during 2/16/18 – 9/17/2018.

c. Total number of vendors contacted: 5

d. Names of vendors contacted:

i. Scott Industrial Systems, Inc. (22841)

ii. Eagle Equipment Corporation (3B905)

iii. Mitten Management Incorporation (1ZH06)

iv. Parker-Hannifin (05548)

v. Triad Technologies, LLC (53R17)

e. Total number and names of vendors that responded to market survey: 3

i. Scott Industrial Systems, Inc. (22841)

ii. Eagle Equipment Corporation (3B905)

iii. Parker-Hannifin (05548)

f. Techniques used to conduct survey: emails, FedBizOpps, Market survey questionnaire and attachment and follow-up phone calls.

g. Types of information requested: # of base years, # of option years, priced option years versus EPA, FOB origin or destination, quantity breaks, commerciality, commercial sales invoices, Understanding of cost/price data.

h. Summary of information received: See below.

i. The Strategic Sourcing Specialists attempted to conduct market research with the following companies to assess their interest and capability to perform: Scott Industrial Systems, Inc.

(22841), Eagle Equipment Corporation (3B905), Mitten Management Incorporation (1ZH06), Parker-Hannifin (05548), and Triad Technologies, LLC (53R17).

Company Name

CAGE

CODE

Business Size

KTR Interested in an LTC

KTR Agrees to a 3-Yr.

Base and 2- Option Yrs.

w/Annual

Price Adjustment

KTR Prefers a Firm

Fixed Price Contract

KTR Will Provide Cost &

Price Data if Required

Phased Delivery

Comm. Item

Scott Industrial Systems, Inc. 22841 Small Business Eagle Equipment Corporation 3B905 Small Business

Mitten Management Incorporation 1ZH06 Small Business Parker-Hannifin 05548 Large Business

Triad Technologies 53R17 Small Business

j. Information received regarding the commerciality of the item(s): See attachment# 2.

In accordance with the BPA Report# 18-229 Parker-Hannifin stated “these types of motors are in the commercial market place and has been sold, leased, or licensed to the general public; or has been offered for sale, lease, or license to the general public; but for modifications of a type that are customarily available in the commercial market place” Neither the DCMA Commercial Item Group (CIG) Analyst or DCMA Engineer disagreed with Parker’s assertion.

The Technical Engineering Analyst from DCMA recommended the NSN be considered commercial of-a-type with modifications customarily available in the commercial marketplace IAW definition 3(i) FAR 2.101 Commercial Item.

Parker-Hannifin did not provide any technical characteristics or drawings but they stated that the motor is based on a standard commercial motor and modified to meet the requirements needed to fit the special constraint of the MMPV”. See attachment# 1

k. Based on the market research results - past history, market surveys, internet search, and part lists -this item is determined to be a commercial. In accordance with FAR Subpart 2.101(b)(2) Commercial item – means (3)(i) Any item, other than real property, that is of a type customarily used by the general public or by non-governmental purposes. Therefore, there is a limitation in competition on this item. See attachment# 2.

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

a. 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.

b. A technical review was completed by the SAPD product specialist group for this NSN. The subject NSN has been identified as sole/limited source item. No other sources or adequate technical data could be identified or located for competitive procurement. 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.

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

Eagle Equipment Corporation (3B905) was the only company that responded to the market survey and expressed an interest in the acquisition providing Parker-Hannifin part. As such, this company will be in the solicitation mailing list.

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

a. The solicitation will contain procurement note L04– Offers for Part Numbered Items SEP 2016 and M06 - Evaluation of Offers for Part Numbered Items (SEP 2016).

b. The buyer was not able to locate a copy of a previous J&A’s statement in the SRM Records Management database and no statement of actions was planned to remove or overcome any barriers for competition.

c. Planned actions for the future to overcome any barriers to competitions will be periodic market research and sources sought.

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.

SCHAFRATH.CLETUS.M.1081024606

Contracting Officer/Date

Digitally signed by

SCHAFRATH.CLETUS.M.1081024606

Date: 2019.03.07 14:23:19 -05'00'

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

SHEARER.MARY.E.1250

702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.03.12 15:22:51 -04'00'

Competition Advocate Signature/Date

APPROVAL REQUIREMENTS

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