VARIOUS TYPES OF GENERAL FREIGHT CONTAINERS

Waiver Rationale Summary

The rationale and findings for a waiver issued by the Defense Logistics Agency Troop Support, under the authority of DFARS 225.103(b)(i), allowing the acquisition of various types of general freight containers that contain more than 5% foreign steel components and/or are manufactured in a foreign country. The waiver is applicable for a period of two years from the date of approval by the head of the contracting agency (HCA) in situations where no domestic offers are available, and the proposed award is for a nonqualifying country end product. Key points include: Agency Identification: Defense Logistics Agency – Troop Support, specifically under the Construction & Equipment Directorate, Move & Store Division - FCDB. Item Description and Importance: The procurement focuses on general freight containers (NSNs listed) necessary for protecting and transporting vital items such as food, clothes, medicine, equipment, etc. These containers are essential for the logistical needs of the warfighter. Market Research and Solicitation: Over the past year, ongoing market research has failed to identify domestic manufacturers that can meet the government's needs for these containers. Despite efforts, including solicitations and requests for information (RFIs) on SAM.gov, responses indicated that domestic steel is cost-prohibitive, and the manufacturing timeframes do not meet the government’s requirements. Economic and Procurement Impact: The document highlights the challenges posed by the cost of domestic steel and the lack of competitive domestic offers for the containers due to manufacturing limitations. It notes that offers for domestic end products ceased after regulatory changes that increased domestic steel requirements. Waiver Rationale and Duration: The waiver is issued due to the nonavailability of domestic end products that meet the government’s specifications and the prohibitive costs and lead times of domestic steel. This waiver aims to streamline the procurement process by reducing individual waiver processing times, thus supporting the DLA Troop Support’s missions more efficiently. Value and Procurement Strategy: The estimated annual amount anticipated under this waiver is $7,500,000.00, with procurements processed using simplified acquisition procedures. All requirements will be solicited as a Total Small Business Set Aside, ensuring that small and/or disadvantaged businesses are considered. In summary, the waiver facilitates the acquisition of necessary freight containers from nonqualifying countries due to the absence of viable domestic options, aiming to ensure the efficient procurement of essential equipment for military logistics within specified regulatory frameworks.