6868.2_SPRBL1-16-R-0019_Redacted_(complete).pdf

SOLICITATION: SPRBL1-16-R-0019

For Official Use Only Source Selection Information – See FAR 2.101 & 3.104 Page 3

7. Fair and Reasonable Cost:

As the Contracting Officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable, based on distributor competition, comparison of proposed prices with an Independent Government Estimate, and other price/cost analysis. Certified cost and pricing data is not required for procurements solicited under FAR Part 13.5 procedures. Data other than certified cost and pricing data will be obtained as needed to support a fair and reasonable price determination.

8. Market Research:

The market research that was conducted consisted of a search in WebFLIS and Haystack, review of the previous contracts, and a market survey. The search of WebFLIS revealed that Cummins owns the specifications and top level drawings. On March 26, 2014, technical experts within the Army Communications Electronics Research Development and Engineering Center, Product Realization Directorate published a Sources Sought Announcement (SSA) on the Federal Business Opportunities (FedBizOpps) page seeking potential sources for the required items. The following contractors responded to the customer Sources Sought:

Manufacturer CAGE Business Size Cummins Crosspoint, LLC 4R699 Large Herndon Products 3G1W3 Small Melton Sales & Services, Inc. 4X8W5 Small Cummins Power Systems, LLC

1CS43 Small

Mastery Engines Center 0AK42 Small

The Contract Specialist released a follow-up Sources Sought on October 6, 2015. The following contractors responded to the Contract Specialist’s Sources Sought:

Manufacturer CAGE Business Size Melton Sales & Services, Inc.

4X8W5 Small

Federal Contracts Corp 3VCK4 Small

The Contract Specialist sent a follow-up to each of the interested vendors to further clarify their interest in the procurement. of Cummins Crosspoint confirmed via the telephone on October 20, 2015 that his organization will not be bidding against this procurement. of Melton Sales & Services (Melton) confirmed via e-mail on October 20, 2015 that Melton is an approved dealer for Cummins but they are not an approved distributor. He stated that Melton would not be submitting a bid against this procurement. of Federal Contracts Corp (FCC) stated via e-mail on October 19, 2015 that FCC is not an authorized distributor of Cummins and will not be quoting on this requirement. stated via the telephone on October 20, 2015 that

SOLICITATION: SPRBL1-16-R-0019

For Official Use Only Source Selection Information – See FAR 2.101 & 3.104 Page 5

3. Melton Sales & Services, Inc.

Cage: 4X8W5 511 Elbow Lane Burlington NJ 08016

4. Cummins Power Systems LLC Cage: 1CS43 8051 Allentown Blvd.

Harrisburg, PA 17112

5. Federal Contracts Corp Cage: 3VCKF 12918 N Nebraska Ave Tampa, FL 33612

6. Mastery Engines Center, LLC Cage: 0AK42 2801 Anvil Street North Saint Petersburg, FL 33710

11. Actions to Increase Competition:

The Army Communications-Electronics Command (CECOM) previously purchased the 15 kW modified diesel engine from Cummins Power Systems under contract SPRBL1-12-P- 0027. The contract was awarded to Cummins Power Systems using other than full and open competition in accordance with FAR 6.302-1 sole source authority-exemption to full and open competition. The previous contract’s J&A documented that the Government would be auditing the configuration drawings within the year in an effort to increase competition. The audits, however, resulted in confirmation the Cummins Power Generation, Cage Code 44940, is the only approved manufacturer of the required engines.

The current market research confirmed that using other than full and option competition is an appropriate strategy as the basic engine still remains a Cummins part. Therefore, the sources for this procurement are authorized Cummins dealers who can provide the Government required modifications. The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future requirements to be obtained using full and open competition.