15R0288.pdf

CMO Control Number: [Completed by Comp. Mgt. Office]

DEFENSE LOGISTICS AGENCY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

1. Contracting Activity: The Defense Logistics Agency – Warren (DLA Land – Warren) is the procuring activity for this action.

2. Description of Action: Offers to provide the required item will be solicited under Request For

Proposals (RFP): SPRDL115R0288. Award is projected for 18 September 2015, and AWCF will be used. An acquisition plan is not required because this action does not meet the dollar threshold for an acquisition plan.

3. DLA Land - Warren proposes to negotiate a firm-fixed-price contract with the following source:

Lee Precision Machine Shop, Inc.

Cage Code 9N498

26182 US HWY 72

Athens, AL 35613-7819

Rationale for Solicitation of the above Source(s): ( ) they are currently in production; () they are the only source to have previously supplied the item; ( ) they are the prime contractor for the vehicle system/end item that this item supports; (X) they provided a competitive quote on a previous procurement for this item (X) other; FAT waiver was approved and Lee was the contractor for the previous award. Previous awards were made to Pennsylvania Gear (0BYG7) and Marvin Land (064H2). PA Gear is no longer a valid contractor and the exclusion summary in SAM shows they are ineligible for award. Marvin Land was asked to submit a FAT waiver for this urgent buy. They responded that they could not provide a competitive bid for this NSN, so a waiver request was not submitted.

4. Description of Supplies/Services:

a. NOUN: Drive Unit, Angle

b. QUANTITY: 400 EA

OPTION QUANTITY: 0 EA

c. NSN: 3010-01-318-5670

d. ARMY PN: 12349762-1/19207

e. VEHICLE SYSTEM: M113 FOV

f. Acquisition Method Code: 1 - Suitable for competitive acquisition for the second or subsequent time.

g. Acquisition Method Suffix Code: C - 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.

h. ESTIMATED UNIT PRICE: $839.80

i. ESTIMATED VALUE: $335,920.00

ESTIMATED OPTION VALUE: $0.00

ESTIMATED TOTAL VALUE: $335,920.00

j. PRON NUMBER: EH56E137EH

5. Authority Cited: The statutory authority permitting other than full and open competition is 10

U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, "Unusual and Compelling Urgency."

6. Reason for Authority Cited: This item falls under the Reset program, as described below, and the class statement of urgency, for the following reasons:

a. Pursuant to FAR 6.302-2, procurement by other than full and open competition is necessary since U.S. Army troops are on heightened alert and in sustained combat, deployed to Afghanistan as part of ongoing Overseas Contingency Operations (OCOs). U.S. forces in combat zones, with the associated increase in mission readiness, have adopted an operational tempo for use, maintenance, and repair of deployed/deploying ground systems, water craft, water and petroleum systems, armament, small arms, and other TACOM-managed equipment, in excess of normal peacetime requirements. Requisitions for spare and repair parts and other supply items from this theater of operation are designated as urgent, and must be filled immediately to maintain readiness.

b. Headquarters, Department of Army (HQDA) Operational Order (OPORD) 04-01, dated November 24, 2003, cites the necessity for the Army to reset/reconstitute units to meet global commitments and contingencies. This is to ensure worldwide troop readiness for expeditious redeployment in current and future operations. The reset repair program restores TACOM-managed equipment returning from Southwest Asia to pre-combat operational capability (TM – 10/20 standards to have units returned, in a short timeframe, to combat condition prior to re-deployment. Reset places demands on the Sustainment (wholesale) supply system for necessary parts to begin repairs when equipment arrives. Since TACOM-managed equipment repaired under reset is likely to re-deploy in the near future, the expediency of this effort is critical to the success of OCOs.

(1) The OPORD states, “For deployed unit equipment requiring further repair upon return to home station, all repair sources will be considered to bring equipment to TM-10/20 standards, such as field units, contract maintenance, National Guard facilities, organic industrial base, depots and arsenals, and the private industrial base." With such a range of repair sites/facilities and the anticipated workload, any disruptions in the supply pipeline for critical repair parts/components will adversely impact unit Reset efforts.

c. For the purpose of this Class Statement of Urgency, reset requirements consist of both immediate needs and sustainment that exceeds existing assets. OEF requirements are the added quantity to support the density of systems fielded, deployed, or identified to deploy in the operation for up to one year, due to increased operational tempo and environmental factors, which could not be procured to support theater operations in a timely manner under normal acquisition procedures. Reset sustainment requirements are the added quantity to support repairs of equipment returning from Southwest Asia which could not be procured to support repair operations in a timely manner under normal acquisition procedures.

d. Diverting existing assets to support OCOs and reset can result in further urgent requirements in worldwide theaters of operation other than Afghanistan, causing non-mission capable systems or line stopper situations for on-going repairs. When this happens, the reset requirement will include such added requirements, since they stemmed from OCO drawdown. These other worldwide urgent requirements will consist of priority 01-03 demands for backorders and anticipated requirements, that the wholesale system cannot satisfy through normal acquisition procedures, which could result in dead-lined weapons/systems, reduced readiness, and impact unit reset timelines and/or line stoppers.

e. Reset purchase requests (PRs) will be issued if, and only if, the required items to execute and sustain the operation are not available in the Defense wholesale supply system.

(1) Failure to execute such requirements as quickly as possible will reduce the ability of TACOM-managed weapons/systems to perform their intended missions in a potential combat area. We cannot tolerate the resulting increase in the risk of damage to and loss of American property or combat effectiveness that might compromise combat mission success. Thus, all requisitions supporting OCOs and reset have the utmost urgency, and must be expedited at every stage of the requirement generation and contract award processes.

(2) Failure to provide forecasted sustainment for OCOs and reset will directly result in dead-lined weapons/systems and reduced readiness, and imposes a direct threat to continued support of operations. There are no assets on hand for sustainment, and RESET. There is no LTC in place for sustainment. All quantities are in support Reset.

f. OEF/reset PRs are distinguished from other PRs via the following factors:

(1) Processing Priority (PPRI) 01 or 02;

(2) The phrase Reset– Expedite IAW ILSC Class SOU” in the “Available for Local Procurement Use” area of the PWD;

g. To expedite processing of OCO and reset PRs, the contracting center should use this Class Statement of Urgency for all such PRs in lieu of requesting individual Statements of Urgency on an item-by-item basis. The Director, TACOM ILSC, certifies that all PRs issued by ILSC bearing these designators identified in paragraph 5f above, fall under the Class Statement of Urgency and may be processed accordingly.

h. OCO and reset urgent requirements have been calculated and identified in the attached worksheet for this urgent noncompetitive procurement. This item is currently under investigation, there is a need for a new procurement to fill current requirements. There is an IPT to scrub the Mandatory replacement parts, currently the cost to repair is higher than the cost to buy new (based on last procurement in 1998.) This item has critical demands at 15%.

The Government cannot afford to wait for these items. Therefore expedited delivery is necessary as there are multiple backorders as well as programs that this item will support.

Although the spreadsheet below identifies a requirement of 1,043, only 762 are required for this urgent procurement. The current procurement of 762 will satisfy reset requirements.

Statement of Urgency Worksheet

7. Efforts to Obtain Competition: Consistent with the urgency of reset, we will seek competition to the maximum extent practicable. We intend to solicit the only past producer of the item rather than synopsize this procurement in Federal Business Opportunities, to avoid the delay of synopsis publication. The contract file will contain a justification for non-synopsis.

a. The Urgent requirement, qty. 400, will be used for reset requirements (see embedded spreadsheet).

b. Reset requirements were identified by using actual reset forecasts submitted during Material requirements planning.

c. Sustainment requirements were calculated by extrapolating a conservative estimate from the end item, average monthly demand (AMD), along with the necessary quantity to accommodate ALT – FAT - initial delivery.

d. Effective competition. 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.

e. Subcontracting competition. Due to the dollar value of this procurement, a subcontracting plan will be required. The subcontracting plan must state all small business goals for this effort. Any goals not meeting the Government’s requirements will be challenged by the Contracting Officer.

8. Actions to Increase Competition: As this acquisition is being made under the condition of

“Unusual and Compelling Urgency,” we will not take specific actions to increase competition.

9. Market Research: Due to the urgent nature of OEF/reset requirements, as outlined in Paragraph 6, we have done limited market research to confirm that the identified source(s) can best meet the Government’s needs.

10. Interested Sources: To date, no other sources have written to express an interest in this procurement. As we will not synopsize the requirement, per the exception at FAR 5.202(a)(2), we don’t anticipate additional interested sources.

11. Other Facts: Urgency buy is one-time buy only; no option.

12. Technical Certification: Not applicable

13. Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Typed Name: Date: __09 June 2015_______________ Title: Signature:

Typed Name: Date: _________________

Title: Signature: ________________

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date: _Marlene J. Scheele______________ Title: Signature: ____/s/_______________

15. Legal Concurrence

Concur:

Date: __07/14/2015______________

PART VI - Approval Authority for Acquisitions Equal to or Greater Than $650,000

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Drive Unit, Angle

b. NSN: 3010-01-318-5670

c. Basic Quantity: 400

d. Basic Estimated Value: $335,920.00

e. Option Percent: N/A

f. Quantity with Option: N/A

g. Estimated Value with Option: $335,920.00

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 2304(c)(1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

Date: