JA_CM21312001_SPE7MX23R0021_Legal reviewed-redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX23R0021

DLA Land & Maritime Justification for Other Than Full & Open Competition (December 2021)

CUI

[X] 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 for a firm-fixed-price 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:

ITEM NSN ITEM

ESTIMATED

ANNUAL

VALUE

UNIT

PRICE ADQ UNIT AMC AMSC

1 4820013715738

VALVE

ASSEMBLY,

MANIFOLD $192,405.40 $230.15 836 EA 1 R

ESTIMATED BASE (3 YEAR) VALUE: $577,216.20

ESTIMATED TOTAL (5 YEAR) VALUE (BASE + 2 ONE YEAR OPTIONS): $965,027.00

MAXIMUM CONTRACT VALUE: $1,447,540.50

The item is used on the following Weapon System Designator Code (WSDC) platform:

NSN WSDC LONG NAME

4820013715738 VQA HEAVY EQUIPMENT TRUCK TRACTOR, M1070

4820013715738 YEA PALLETIZED LOADING SYSTEM

4. The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(2) – Available from only one or a limited number of sources. The following are currently the only approved manufacturing sources for the NSN item:

NSN CAGE COMPANY NAME PART

NUMBER

4820013715738 0N0J4 CM AUTOMOTIVE SYSTEMS INC 50004120

4820013715738 1FPR2 ALLIED SERVICES AND SPARES INC 50004120

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 was confirmed as complete and accurate by the Strategic Acquisitions Program Directorate (SAPD) Product Specialist on 10/04/2022 in the Technical Certification attached to this memorandum.

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

SOLICITATION SPE7MX23R0021

DLA Land & Maritime Justification for Other Than Full & Open Competition (December 2021)

CUI

AMSC R: 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.

5. The approved sources listed in the table above in paragraph 4, confirmed by the SAPD Product

Specialist during the technical review of the NSN for placement on this long-term contract initiative, are currently the only sources approved by the design control activity to manufacture the item and are also the only sources 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.

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

The acquisition will be synopsized 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:

Three businesses responded to the market research survey:

R&M Government Services Inc. (CAGE: 6FN58), Small Business (SDVOSB, HUBZone, EDWOSB, Hispanic Owned)

PQI-Pines Quality, Inc. (CAGE: 3B0Y2), Small Business JAG Components, LLC (CAGE: 7YJE4), Small Business (SDVOSB)

One additional business responded to the Sources Sought notice:

Kampi Components Co., Inc. (7Z016), Small Business

R&M Government Services Inc. CAGE 6FN58 (DEALER) reported being a small business with 17 employees. They stated there is no minimum or maximum order quantity. There is an estimated delivery range of 110-150 days. Reported quantity price break ranges are 100, 500, and 1500. CM Automotive (0N0J4) is the manufacturer. R&M states this item is commercial, but they were unable to provide additional information about commerciality to support a determination. There is a 5-year LTC preference.

PQI-Pines Quality CAGE 3B0Y2 (DEALER) reported being a small business with 10 employees.

There is no minimum or maximum order quantity. There is an estimated delivery time of 90 days.

There is no reported quantity price break range. CM Automotive (0N0J4) is the manufacturer. Pines

CUI

Quality states this item is commercial, but they have not sold it commercially. There is a 5-year LTC preference.

JAG Components, LLC CAGE 7YJE4 (DEALER) report being a small business (SDVOSB) with 3 employees. Could/would not provide any data about the manufacturer, CM Automotive (0N0J4).

There is a 3-year LTC plus option year(s) preference.

Kampi Components Co., Inc CAGE 7Z016 (DEALER) reported being a small business with 65 employees. – Still waiting on reply from manufacturer but are interested in submitting an offer. CM Automotive (0N0J4) is the manufacturer. Kampi states this item is commercial. Stated a preference for a 1 year base but waiting on additional information.

Eleven businesses were contacted for this project:

R&M Government Services Inc. 6FN58 Pines Quality Inc. 3B0Y2 JAG Components, LLC 7YJE4 Kampi Components Co., Inc 7Z016 CM Automotive Systems Inc 0N0J4 (Did not respond) Coordinated Defense Supply Systems 4DEY3 (Did not respond) Hooks Industrial, Inc. 4Z6H7 (Did not respond) OEM Parts Network Inc 6SXC1 (Did not respond) SR Defense Services and Spares 7C721 (Did not respond) Talon Air Services 58CE0 (Did not respond) Standbuy Distributors, INC. 634U1 (Did not respond)

A Sources Sought Notice was issued on 11OCT2022 and closed on 18OCT2022. Kampi Components Co., Inc. responded to the Sources Sought Notice.

Market research did not find additional information where this item is commercially available. The COTS field in MM03 is blank. Past buys show this is not commercial, despite vendors saying otherwise. The previous LTC in 2007 was not determined commercial. Based on all factors, 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, CUI and all means to obtain a technical data package adequate for manufacture of the items has been exhausted.

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

R&M Government Services Inc. (CAGE: 6FN58), Small Business (SDVOSB, HUBZone, EDWOSB, Hispanic Owned)

PQI-Pines Quality, Inc. (CAGE: 3B0Y2), Small Business JAG Components, LLC (CAGE: 7YJE4), Small Business (SDVOSB) Kampi Components Co., Inc. (7Z016)

11. The 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. Offers for alternate products may be submitted in response to the solicitation and may be considered for the current or future procurements.

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. Recent procurements of the item were conducted under SAT procedures and did not require justification for other than full and open competition.

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 $750,000, this signature serves as the approval.

Contracting Officer Signature

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[ ] $750,000 to $15,000,000 Competition Advocate

ROBERTS.TRACY.S.12

30171781

Digitally signed by

ROBERTS.TRACY.S.1230171781

Date: 2023.01.05 09:15:00 -05'00'

SHEARER.MARY.E.125

0702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2023.01.09 08:15:27 -05'00'