SPRBL118R0044_JandA_for_sec-PAO_review.pdf

SOLICITATION: SPRBL1-18-R-0044

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Requirements."

5. Reason for Authority Cited: The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the 100 kW MEP-807A TQG. The only manufacturing source approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture this item is Caterpillar Inc., CAGE: 11083, the Original Equipment Manufacturer (OEM). The Government does not currently possess detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of these parts.

The AMC/AMSC is 3B, the 3 denotes acquire directly from the manufacturer and the B denotes acquisition of this part is restricted to sources specified on “source control”, “altered item” or “selected item” drawings/documents. Caterpillar Defense Inc. is able to meet the Government’s delivery requirements and only company listed on the source control drawing.

Caterpillar informed the Government by email that all drawings, specifications, etc. are proprietary to Caterpillar and are not for sale or general release; therefore the drawings is unavailable to the Government for purchase. Any other source would need to undergo extensive review and testing, incurring cost and time. It is anticipated that this would result in duplication of costs and corresponding delays that are not anticipated to be recovered through competition.

6. Efforts to Obtain Competition: Market research was conducted as described below in the market research section of this document. There is no competition anticipated for this acquisition. In efforts to obtain competition, in accordance with FAR 5.201, the solicitation will be synopsized on the FedBizOpps page.

The previous Justification and Approval stated continued research would take place to ascertain if changes in the market place allowed for full and open competition. These actions to remove barriers to competition that were contained in the previous J&A were completed. Efforts to remove barriers to competition included extensive market research via phone calls and emails to locate manufacturers and distributors of this NSN and part number. The market research yielded no additional potential manufacturing sources that could meet the requirement. Dealers, however were identified and competition among dealers is anticipated for this acquisition as the OEM uses multiple distributors to sell these parts.

7. Actions to Increase Competition: The Government will continue to conduct market research to determine if there are changes in the market place that would enable future requirements to be obtained using full and open competition.

8. Market Research: On April 2017, 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. No companies expressed interest except for Caterpillar Defense Inc., which has demonstrated the ability to provide the required configuration in the past.

Internet searches have been conducted on an ongoing basis by the engineer from

CECOM LRC-P&E, and no additional sources have been identified that could meet the requirements. Caterpillar is the original equipment developer and is currently producing and sustaining the Caterpillar parts used in the Army’s fleet of 100 KW TQG systems, and is therefore uniquely positioned to satisfy the Government's requirements. Based on this market research, the engineer have determined Caterpillar as the only manufacturing source of supply for the aforementioned spare part.

Caterpillar has indicated through telephone conversation with the Engineer that they will not sell these items directly to the Government and will utilize their broad network of distributors to fulfill this requirement. In addition, the contracting officer contacted Caterpillar.

Caterpillar notified the contracting specialist that the part is only available through distributors of Caterpillar, the sole source manufacturer. The contracting specialist contacted Caterpillar Distributors via email and phone, Aero https://aerobasegroup.com/nsn/2990-01-521-8000 and WBParts https://www.wbparts.com/rfq/2990-01-521-8000.html, to request pricing. To date no responses. I2LoG has listed as Caterpillar Inc., and DRS Consolidated, a distributor of Caterpillar, Inc., as the only 2 suppliers.

9. Other Supporting Factors:

a. Procurement History:

Contract Number Award Date Contractor Competitive/Sole Source

(FAR exception) SPRBL1-13-D-0005 12/20/2012 Caterpillar Defense

Inc.

Sole Source

Contract Number

Award Date

Awardee

CAGE

Part Number

Value Extent Competed/ Authority

W15P7T-08- D-A010 08/08/2008 1VQT8* 198-9252 $1,400,000.00 Sole Source

(FAR 6.302-1)

SPRBL1-11-

P-0046 09/12/2011 1VQT8* 198-9252 $139,999.50 Sole Source

(FAR 6.302-1)

*The above CAGE codes represent the CAGE codes of Caterpillar distributors

b. Acquisition Data Availability: Caterpillar is the only approved manufacturer on the SCD for the 3216B model engine and they have stated, that the drawings are not for resale or general release.

( ) $12,500,000-$93,000,000 Head of Contracting Activity ( ) Over $93,000,000 Senior Procurement Executive