Redacted_J&A_SPRAL117R0066_-_reviewed.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPRAL1-17-R-0066

1 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION# SPRAL1-17-R-0066 - SOURCE SELECTION INFORMATION (SEE FAR

2.101 & 3.104)

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 an Engine, Diesel for the following NSNs 2815-01- 470-3108 and 2815-01-508-4076. Other than full and open competition basis per FAR 6.302-1 and 10 U.S.C. 2304

(c) (1) will be utilized since after market research (FAR 10) and Marine Corp. technical data it was determined current NSNs are sole source to Cummins Inc. (15434).

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

CLIN BRIEF DESCRIPTION NSN/PN QUANTITY EST.VALUE AMSC

0001 Engine, Diesel 2815-01-470-3108 36 EA B 0002 Engine, Diesel 2815-01-508-4076 8 EA B

This is an Engine, Diesel that is a reciprocating internal combustion engine in which the power necessary to produce motion of the mechanism is obtained by igniting a compressed fuel and air mixture within the cylinder or cylinders by extreme heat resulting from compression. The engine consists of a cylinder block assembly complete with cylinder head(s) and oil pan(s). It may include attachments or accessories, such as starter motor, transmission for auxiliary equipment, clutch, oil filter, flywheel, flywheel housing or battery charging generator. A fuel tank is not included.

Identify end item, weapon system, or class of item: DLR item from Albany, GA- TAMCN: A7420

Procurement history is available for these NSNs.

*Price Reasonable Code unknown; procured by U.S. Army

TACOM ESTIMATED VALUE:

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.

Based on the technical certification that was provided by LOGCOM, SYSCOM does not own the drawings for this item to allow for full open and competition to exist. Based on SYSCOM’s technical review and certification, this item is to be procured from the sole source manufacturer, Cummins Inc. The technical certificate from SYSCOM is attached to this document. Cummins Inc. is the only company known by the Government to possess the technical data necessary to manufacture these items.

Marine Corp has a simple print with the dimensions of the engine something that is available to any customer of the V903 engine group. All prints are annotated with Cummins, Inc. Confidential. The last print provided to the Marine Corp was from the late 1990's and has been updated numerous times since.

Cummins, Inc. is the sole owner of the Technical Data Package and the engine was originally developed exclusively with private funds. While several different versions have been partially funded by the Government to increase horsepower they all utilized FAR Part 12 procurements. As such, Cummins, Inc.

is the only provider for the V903 engine. It is a sole source item.

Cummins, Inc. VT-525 engine is the only one qualified and tested to be installed in the Assault Amphibious Vehicle. The drawings that the Marine Corp. have are not production drawings but only for

Company Contract# NSN Date Quantity Unit Price

Price Reasonableness

Code Cummins Inc. (15434) W56HZV04D0145/0018 2815-01-470-3108 10/17/08 161 EA $83,348.00 *

Cummins Inc. (15434) W56HZV04D0145/0018 2815-01-508-4076 10/17/08 10 EA $85,181.30 *

2 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION# SPRAL1-17-R-0066 - SOURCE SELECTION INFORMATION (SEE FAR

2.101 & 3.104) rebuild, repair, and procurement. Cummins, Inc. stated there are thousands of technical specifications (types of materials, tolerances, etc.) and additional drawings that are not included in the level of drawing packages that they have. Marine Corp. normally only get that kind of data-rights when they collaborate with a company on a program from design to production, for this procurement the Marine Corp. are buying a modified commercial item designed specifically for our AAVs.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code: NSN is sole source to Cummins Inc. (15434) per DLR tech data from Albany, GA.

The use of the authority cited is based on:

(X) AMC 3. Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

(X) AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application.

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

(X) The acquisition was synopsized on July 20, 2017.

(X) Other (Explain): Based on the technical certification that was provided by LOGCOM, SYSCOM does not own the drawings for this item to allow for full open and competition to exist. However, the Engine, Diesel need to be procured from the sole source manufacturer based on thetech data. The technical certificate from SYSCOM is attached to this document (Attachment #1).

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

The current requirement is sole source to Cummins Inc. (15434) and will be solicited for 30 days. Cost and Pricing data will not be required because the item is deemed commercial per FAR 15.403(b)(3). In addition, the buyer will use previous award (W56HZV04D0145/0018) for the price analysis to establish Government targets. The price analysis will utilize a 95% learning curve for the high target price and a 99% learning curve for the low target price. The contracting specialist will also review commercial documentation/pricing when doing the price analysis.

8. Market Research/Efforts to Obtain Competition:

Describe the market research conducted and the results.

A sources sought was conducted on FedBizOps from July 20, 2017 through July 31, 2017. There were no responses received to the sources sought notice that was published for ten calendar days. A market survey was submitted to Cummins Inc. The market survey (consists of approximately 24 general questions). The results of the market survey will be discussed in detail under “Type of information requested”. In addition, there was information available from Google, Amazon, GSA or EBay to support commerciality. The items can be located at the following websites:

http://www.parttarget.com/Cummins-Inc_nsn-parts_903-525PVSS0_D103007CX03DND.html https://www.wbparts.com/rfq/2815-01-508-4076.html http://www.parttarget.com/Cummins-Inc_nsn-parts_6BTA5-9M-3-SO20104-SO81368_903- 525P00S1.html https://nationalstocknumber.info/part-number/903525P00S1_014703108 http://fsg-28-engines-turbines.parttarget.com/diesel-engines-components-90261_9061421201.html http://www.parttarget.com/2815-01-470-3108_2815014703108_VTA933-T525.html https://www.wbparts.com/rfq/2815-01-470-3108.html

3 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION# SPRAL1-17-R-0066 - SOURCE SELECTION INFORMATION (SEE FAR

2.101 & 3.104)

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

A market survey was conducted on/during: market surveys were submitted two ways. The first way was via the source sought (July 20, 2017 through July 31, 2017) which included the market survey as an attachment and allowed for non-approved sources to submit a SAR. The second way market research was conducted via the market survey that was submitted to Cummins Inc. (15434/sole source): July 20, 2017 through July 31, 2017.

Total number of vendors contacted: 1 (one).

Names of vendors contacted and responding: Cummins Inc. (15434) (OEM).

Techniques used to conduct survey: Email (communication) and written survey format technique.

Types of information requested:

Source sought:

A sources sought was posted in FedBizOps onJuly 20, 2017 with a response day of July 31, 2017. The main purpose of source of sought was to provide an opportunity to other potential sources to manufacture theseNSNs in order to promote competition. Sources that are not approved for this NSN were required to submit a Source Approval Request (SAR) to DLA Land and Maritime. Since DLA Land and Maritime does not manage this item, the SAR package would need to be submitted to LOGCOM, who manages the NSN. LOGCOM would then take the SAR information and submit it to SYSCOM since they manage the technical piece of the NSN.

While the approval of the SAR would not necessarily occur for this procurement, it could be reviewed for future procurements. For this procurement, there were no SAR packages submitted. As part of the sources sought, a market survey was included to allow potential offerors an opportunity to provide feedback on the current marketplace for this acquisition. The market survey included information about if the item was available in the commercial marketplace, EDI & MIL-STD-129 capable, company sizes, FOB & I/A information, P/N, quantity, delivery and OEM information, etc.

Types of information requested: Market Survey was sent to Cummins Inc. via email in order to tailor our current acquisition situation under the following NSNs – 2815-01-470-3108 and 2815-01-508-4076. Survey consists of approximately 24 general questions. Majority of questions involved check boxes and (yes or no) answers. The market survey included information about if the item was available in the commercial marketplace, if the contractor preferred to do business direct with the Government or via a distributor, if FOB Destination and FOB Origin would be acceptable, if the part number provided by the Marines was active and procurable and if the price supplied by the Marines was close to the current unit price. It also, included questions concerning delivery, quantity breaks, and inspection and acceptance points and if dealers quoted, and if the contractor is EDI & MIL-STD-129 markings capable.

Summary of information received:

Sources sought:

The sources sought closed without receiving any responses for vendors submitting either SAR or market survey information for this requirement. Therefore, based on the technical certificate from SYSCOM Cummins Inc. is sole source for these NSNs.

Cummins Inc. (15434) This procurement is a code and part number (903-525POOS0 & 903-525PVSS0) buy to Cummins Inc.

Cummins Inc. is a large business per there SAM registration and their completed market survey. They are sole approved source for these NSNs. . Cummins Inc. stated the item is commercial. Most of the provisions selected by contractor were: “Yes” or “No” answers. P/N and estimated unit price were confirmed with Tom Terkhorn (.

Information received regarding the commerciality of the item(s): Based on Cummins Inc. (sole source) complete market survey and FAR 2.101 item is considered commercial. Cummins Inc. stated the item is

4 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION# SPRAL1-17-R-0066 - SOURCE SELECTION INFORMATION (SEE FAR

2.101 & 3.104) available from their published price list at (www.cummins.com), which is available to the public. Cummins Inc.

provided unredacted invoice and the items were on a Long Term Contract (LTC) with U.S. Army TACOM under FAR 12 procedures. In addition, there was information available from Google, Amazon, or EBay to support commerciality at the websites listed above. The item is being deemed commercial and therefore FAR 12 procedures will be utilized.

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

(X) Based upon the technical certification on file via the technical certification from SYSCOM 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. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Cummins Inc. (15434)

11. These items are subject to the following methods of locating additional sources:

(X) The solicitation contains the DLAD Procurement Note L04, Offers for Part Numbered Items.

( ) VE Bailment Program ( ) Source Development Review ( ) Reverse Engineering

(X) Other: The Marine Corp. does not intend to procure the technical data necessary to foster competition.

A source sought was posted in FedBizOps for 10 calendar days without receiving any responses for vendors submitting either SAR or market survey information for this requirement.

Attachment:

1. DLR tech data certification.

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 $700,000, this signature serves as the approval.

Contracting Officer Phone Date

Competition Advocate Phone Date Signature

APPROVAL REQUIREMENTS

wledge and belief. If not excee

Contracting Officerr

614 692 4841 07 Nov 2017

Date

Phone

Julie M. Miller Typed name of Contracting Officer

Approval/Certification

I have reviewed and approved this justificaattiioonn.. TThhee esesttiimmatateedd total value of the J&A is ____ __________________________________________________________________________.SSSSSSSSSSSS

5 JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION# SPRAL1-17-R-0066 - SOURCE SELECTION INFORMATION (SEE FAR

2.101 & 3.104)

(X) $700,000 to $13,500,000 Competition Advocate