JA-FBO.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPE7MX20R0023

MAXIMUM CONTRACT VALUE:

4. Authority Cited:

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.

5. Reason for Authority Cited:

Only GDLS, as the OEM of these items, has the technical data, data rights, and manufacturing knowledge necessary to manufacture this group of sole source NSNs. The technical information was validated by the appropriate Product Specialists during the project review completed July 9, 2019.

These 607 NSNs have Acquisition Method Suffix Codes (AMSC) of C, D, L, P, Q, and R.

These codes signify that the items fall within one of the following categories. Each individual NSN’s AMSC code is listed in Attachment 1.

AMSC C – 53 NSNs

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.

AMSC D – 390 NSNs

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.

AMSC L – 78 NSNs*

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.

*APPLIES TO LTCs - An Item identified by AMSC A, H, or 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 AMSC A, H, or 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 that 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 P – 25 NSNs

The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data.

AMSC Q – 20 NSNs

The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in DFARS PGI 217.7506 Part 2-203(b). DLA Land and Maritime has agreed to review these AMSC Q items per the time fames cited in DFARS PGI 217.7506 Part 2-203(b). Should a breakout to competition occur during the life of the contract as a result of these reviews, the item may be deleted from the contract and resolicited to obtain benefits of increased competition.

AMSC R – 41 NSNs

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.

In accordance with FAR 6.302-1(c)(1)(ii)(B) and FAR 6.303-2(b)(5), the following provides a demonstration of GDLS’s unique qualifications to justify the use of 10 USC 2304(c)(1).

AMSC C: For this AMSC, the manufacturing source(s) must be approved by the design control activity in order to maintain the quality of the part. For these items, the sources identified by NSN in Attachment 1, are the only sources currently approved by the design control activity. They are the only known source to possess the requisite data or data rights necessary to manufacture these items to ensure quality.

AMSC D, P, Q, and R: The Government does not have the data or rights to the data and it is not economical for the Government to obtain or otherwise develop the data.

The sources identified by NSN in Attachment 1 for these AMSCs are determined the only sources known to own or possess the technical data necessary to manufacture these items.

For AMSC L*: The Government does not physically have in its possession sufficient, accurate, or legible data to purchase this item from other than by reference to the part number of the identified source. The approved sources listed for the items with an AMSC of L in Attachment 1 have been evaluated by the military services’ Engineering Support Activity and are the only known sources capable of supplying this part to satisfy the military customers’ requirements and needs.

As detailed above with the AMSC descriptions, the Government does not have complete and adequate data or data rights for these NSNs. Only GDLS has the technical data, data rights, manufacturing knowledge and capability necessary to manufacture these NSNs. These items are replacement parts in higher level military assemblies for which GDLS was the designer and OEM; thus, it is essential that this group of items be obtained from GDLS to assure there is a configuration control of the higher level military system.

The Government will evaluate all future add ons and verify that the each NSN has a limited sourcing AMSC and has GDLS as the sole source of supply. Only items where GDLS is determined to be the sole source of supply will be added in accordance with the procedures outlined in Attachment 5.

6. Efforts to Obtain Competition:

A Sources Sought notice was posted August 7, 2019 with a closing date of August 27, 2019.

The acquisition was synopsized on FEDBIZOPPS on November 5, 2019.

The acquisition will be posted on the DLA Internet Bid Board System (DIBBS).

GDLS will be solicited.

7. Fair and Reasonable Cost Determination:

The Contracting Officer hereby determines that the anticipated cost to the Government for this contract action will be fair and reasonable.

Certified Cost or pricing data in accordance with FAR 15.403-4 will be requested by the Contracting Officer if necessary and not otherwise waived.

Please note per DFARS 215.403-1(c)(4)(C), the DoD has waived the requirement for submission of certified cost or pricing data for the Canadian Commercial Corporation (CCC) and its subcontractors. This is likely to apply because the only offer the Government expects for this action will be from CCC with GDLS as its subcontractor.

GDLS Canada’s pricing will be certified as fair and reasonable by Public Services and Procurement Canada (PSPC) and endorsed by CCC. The Government may request additional other than certified cost or pricing data should the Contracting Officer determine it necessary.

In addition to any audits completed or CCC certifications received, the Contracting Officer will use price analysis and past Government purchase history to aid in the determination that the contract award prices are fair and reasonable. Negotiations will be conducted if necessary.

8. Market Research:

Various market research methods were utilized including a Sources Sought notice, targeted market survey, and Contracting Officer internet research.

There were no responses received to the above-mentioned Sources Sought notice.

There has been no response to date to the Synopsis posted to FBO November 5, 2019.

A market survey was sent to GDLS-Canada (56161). GDLS indicated in its market survey response that it is interested in this project. GDLS stated this project’s NSNs are not commercial items. GDLS also indicated it intends to supply an offer directly to the Government. Additionally GDLS confirmed GDLS does not intend to supply pricing to dealers or any other potential offerors for this action. GDLS stated it would participate in a 5-year contract. GDLS stated its preference for a contract with a 3-year base period plus two one-year option periods. GDLS stated its offer would be submitted through CCC. GDLS stated all of its Long Term Contracts include the Price Redetermination clause (FAR 52.216-6) which allows for new certified and endorsed pricing on a yearly basis (Base and Option years).

GDLS does not provide out year pricing. GDLS stated its pricing is certified as fair and reasonable by PSPC and endorsed by CCC. Additionally GDLS stated all Freight, Packaging, and G&A rates are certified by the Canadian Government – PSPC.

The Contracting Officer performed internet research on a sampling of 40 of this project’s NSNs. The Contracting Officer chose the 40 NSNs for sampling by selecting the top 30 NSNs in Annual Demand Value and then randomly sampling 10 additional NSNs. The Contracting Officer’s internet research consisted of reviewing the GSA website to determine if GSA schedule pricing is available for the sampled NSNs. Additionally, the Contracting Officer searched the internet to determine if commercial pricing or suppliers are available for the sampled NSNs. The Contracting Officer’s research revealed no GSA pricing is available for the sampled NSNs. In addition, the Contracting Officer’s internet research did not reveal commercial pricing or suppliers available for the sampled NSNs.

9. Commerciality:

It is the Contracting Officer’s determination that the items in this solicitation are not commercial and will be solicited in accordance with FAR Part 15.

GDLS, the sole manufacturer of this project’s parts, stated these items are not commercial items.

The Contracting Officer conduced internet research on the sampling of NSNs described above.

The Contracting Officer’s research revealed no GSA pricing is available for the sampled NSNs. In addition, the Contracting Officer’s internet research did not reveal commercial pricing or suppliers available for the sampled NSNs.

Further, all project NSNs support military vehicles produced by GDLS, which does not produce commercial vehicles.

In addition, there no project NSNs with the commercial AMSC of “Z”.

10. Interested Sources:

A listing of sources, if any, indicating an interest in the acquisition is: GDLS-Canada (56161).

11. Actions to Increase Competition:

Although this procurement will be restricted to the approved source listed on the NSN Schedule of Supplies, every effort will be made to encourage offers of other sources via synopsis through the FBO.gov. In addition, the solicitation contains the DLAD procurement notes L04 – Offers for Part Numbered Items and M06 – Evaluation of Offers for Part Numbered Items for all other NSNs, which permits offers of alternate product for consideration.

12. J&As From Previous Procurements:

The Contracts listed in Chart A required J&As because they were over the Simplified Acquisition Threshold (SAT). The Contracting Officer searched Records Management and was unable to locate the previous J&A for Contract SPE7LX16D0076. The previous J&A for

Contracts SPE7MX16D0100 and SPE7LX16D0019 are found in Attachment 4. There were no J&As for Contracts SPE7M818P2785 and SPE7M519P8255 because although they were over the SAT, they were awarded using Special Emergency Procurement Authority (SEPA).

Chart A Contract Number NSN J&A Status

SPE7MX16D0100 Multiple Attached

SPE7LX16D0019 Multiple Attached

SPE7LX16D0076 Multiple Unavailable

SPE7M818P2785 5930015774145 No J&A - SEPA

SPE7M519P8255 5998015390403 No J&A - SEPA

13. Approval Certifications:

As the Contracting Officer, I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer/Date

GRIFFIN.BR

ET.J.125189

Digitally signed by

GRIFFIN.BRET.J.125

1897782 Date: 2020.01.16 09:39:59 -05'00'

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate/Date

Head of the Contracting Activity (HCA)/Date

APPROVAL REQUIREMENTS

[ ] Up to $700,000 Contracting Officer

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

[ X ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ)

Attachments:

1. Schedule of Supplies

2. Approved Source Listing

3. Items That Are Within Scope, But Not Awarded

4. Prior J&As

5. Add-On Procedures

SHEARER.MA

RY.E.1250702

Digitally signed by

SHEARER.MARY.E.125

0702449 Date: 2020.01.23 15:32:02 -05'00'

BROWN.MA

RK.ALBERT.

1041175032

Digitally signed by

BROWN.MARK.ALB

ERT.1041175032

Date: 2020.01.23 16:53:20 -05'00'