SPE7MX-19-R-X013_J_and_A__reviewed.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION __SPE7MX-19-R-X013_

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 an item of supply on other than a full and open competition basis. This DLA Land and Maritime acquisition is for an Indefinite Delivery Contract for spare parts for generators for various weapon systems including Mine Resistant Ambush Protected (MRAP) vehicles. The proposed acquisition is for a DLA-managed item with two approved sources: Deere Company (CAGE 66836) and Stanadyne (CAGE 84760). The acquisition includes a single NSN.

DLA Land and Maritime intends to enter into a fixed unit price, Indefinite Delivery Contract (IDC) consisting of a three-year base period and two option years.

3. The item of supply required to meet the using activity's needs is described as follows.

CLIN ITEM NSN ADQ ADV AMSC

0001 Pump Fuel Metering 2910-01-476-8971 268 C

Identify end item, weapon system, or class of item: The various weapon systems being supported is reflected in the table below.

Weapon System Name

17A 60 KW TQG GENERATOR

FAMILY

AZA MRAP NAVISTAR DASH W/ISS

KPM GENERATOR SET

MRA PARENT WSDC FOR ALL

ARMY MRAP

ESTIMATED BASE YEAR ONE VALUE

ESTIMATED TOTAL VALUE (3 YEAR BASE PLUS 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:

Deere Company (CAGE 66836) and Stanadyne (CAGE 84760).

The use of the authority cited is based on:

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

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

[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.

Deere Company and Stanadyne are the only sources that have the data rights, technical data and/or manufacturing capability to maintain the quality of the part. Technical validation of the AMSC was received on 6/25/18. Although this item has been determined commercial, they support military specific weapon systems designated in paragraph #3 above to satisfy the needs of the warfighter. As a repair or replacement part, it is essential that the Government procure only these part numbered items to ensure operability of the weapons systems. Additionally, companies providing the item have to replace the top cover security screws, PIN 22351, with hex head cap screws suitable for holding the cover in place during shipment and long term storage. Deere Company and Stanadyne are the only known sources with the technical data and manufacturing knowledge to ensure this part operates properly in the military weapon systems. Deere Company and Stanadyne are the only two companies who have gone through the approval process to get their products approved.

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

(X) The acquisition will be synopsized on or about 2/11/19.___.

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

( ) Dealers of the manufacturer will be solicited.

( ) A synopsis exception cited in FAR 5.202 (A) (4) applies.

(X) Other (Explain) a sources sought was posted on FEDBIZOPPS on 5/3/18 with a return response of 5/10/18. 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 has been determined commercial. A price analysis will be conducted using historical pricing, the Producer Price Index (PPI) and learning curve analysis. Comparison will be made to commercially available pricing found on the web. As there are two approved sources, competition is anticipated from dealers offering the product of independent manufacturers. 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 by the ZAA market research team on March 8, 2018. Market research questionnaires were emailed to one of the coded sources and four dealers. A sources sought was posted on FEDBIZOPPS on 5/3/18 with a response date of 5/10/18. The sources sought resulted in no companies showing interest in proposing on the requirement. Buyer supplemented market research from 11/20/18 through 11/30/18 to obtain information to support commerciality.

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

A market survey was conducted on/during March 8, 2018 through May 10, 2018 from the SAPD market research team. Buyer supplemented market research from 11/20/18 through 11/30/18.

Total number of vendors contacted: 5

Names of vendors contacted and responding: Vendors contacted were: Westside Tractor (02YK8), Southeast Power Systems (3L018), CK Power Products (3Z7L8), Diesel USA (9T239) and Stanadyne (84760). Southeast Power System was the only company responding with interest in proposing on the subject solicitation.

Techniques used to conduct survey: Email, posting a sources sought on FEDBIZOPPS and coordination with SAPD Product Specialist on the commercial aspect of the item.

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:

Southeast Power Systems (3L018): Company responded with market research questionnaire on 3/13/18. Company is a small business dealer and is interested in pursuing a Long Term Contract for the item.

Company indicated the item was commercial and they were willing and did provide information to back up commerciality aspect.

Information received regarding the commerciality of the item(s): Coordination with company, web searches, coordination with the SAPD Product Specialist (PS) and review of prior contract file assisted Contracting Officer in making a commerciality determination. Item has been determined commercial based on the commercial definition of FAR 2.101 (1) (i), has been sold, leased or licensed to the general public. Other than the requirement for replacing the existing screws for a safety screw, the item is otherwise sold to the public. The replacement of the safety screws is a change available to the commercial marketplace.

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.

J&A prepared for previous solicitation which resulted in the award of SPE7MX-15-D-0016 is provided as attachment #1. Previous acquisition was synopsized on FEDBIZOPPS and solicitation included provision for Conditions for Evaluation and Acceptance of Offers for Part Numbered items. In response to the solicitation, two dealers responded: DAR Enterprises and Southeast Power Systems.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Southeast Power Systems (3L018).__

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.

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)

SHEARER.MARY.E.125

0702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2019.02.12 14:49:06 -05'00' 2/12/2019

HAYDEN.ESTHE

R.A.1206755578

Digitally signed by

HAYDEN.ESTHER.A.120675557

Date: 2019.02.01 07:04:33 -05'00'