25K0030_LSJ NSCW IHD DBS Final _Redacted.pdf

industries LLC Multiple Award Schedule (MAS) Schedule, 47QSWA20D002D (ultimate contract end date Dec 15,2039), in accordance with FAR 8.405-6(a)(1)(i)(B), Only One Source is Capable.

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEED (INCLUDING THE ESTIMATED VALUE):

Dibutyl Sebacate (DBS) is an organic chemical, a dibutyl ester of sebacic acid. Its main use is as a plasticizer in production of plastics, namely cellulose acetate butyrate, cellulose acetate propionate, ethyl cellulose, polyvinyl butyral, polyvinyl chloride, polystyrene, and many synthetic rubbers (especially nitrile rubber and neoprene) and other plastics. The Naval Surface Warfare Center Indian Head Division (NSWC IHD) modified this chemical in accordance with the Military Specification MIL-DTL-82669B(OS).

MIL-DTL-82669B(OS) is a specific protocol that is a comprehensive military detail specification that involves the material going through several cycles of bleaching as opposed to standard commercial DBS processing. The DBS will be used as a plasticizer additive to produce mission critical fuel essential for maintaining the operational readiness of the Navy's fleet.

4. THE AUTHORITY AND SUPPORTING RATIONALE (SEE 8.405-6(a)(1)(i) AND

(b)(1)) AND, IF APPLICABLE, A DEMONSTRATION OF THE PROPOSED

CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE THE

REQUIRED SUPPLY OR SERVICE:

This acquisition will be conducted under the authority of the Multiple Award Schedule (MAS) Program, FAR 8.4. The primary statutory authorities for MAS are Title III of the Federal Property and Administrative Services Act of 1949 (41 USC 251 ET SEQ), and Title 40 U.S.C.

501, Services for Executive Agencies.

Morning Star Industries is the sole distributor of the required DBS chemical manufactured by Aurorium LLC dba Vertellus Specialties Inc. on Schedule. Morning Star Industries sells the required DBS under their MAS contract (47QSWA20D002D). Per Morning Star Industries distributor’s agreement with Aurorium LLC (dba Vertellus LLC), they can resell DBS chemicals and modify to the government specifications in accordance with MIL-DTL-82669B(OS). Since SBA has not granted a waiver for the preponderant NAICS (325199/332510C) and since there are not two or more small businesses who sell the required chemical on their MAS contract, this requirement is not being set-aside for small business. Therefore, the required can only be sourced through Morning Star Industries Schedule contract.

This acquisition will be procured against the MAS Program, GSA Special Item Number (SIN)/Category 332510C, titled: Hardware Store, Home Improvement Center, Industrial or

General Supply Store, or Industrial Maintenance Repair and Operations (MRO) Distributor. FAR 8.405-6(a)(1)(i)(B) applies when only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. Therefore, given the requirements specified in accordance with MIL-DTL- 82669B(OS). Authorities cited in FAR 8.405-6(a)(1)(i)(B), procuring these items from one source is justified. In accordance with FAR 8.405-6(a)(2)(i), this LSJ will be posted to SAM.gov within fourteen (14) days of award for a minimum of thirty (30) days.

5. DETERMINATION BY THE ORDERING ACTIVITY CONTRACTING

OFFICER THAT THE ORDER REPRESENTS THE BEST VALUE

CONSISTENT WITH FAR 8.404(d):

A best value determination will be conducted and documented prior to award. Additionally, prior to awarding the delivery order, the Contracting Officer will seek price reductions from Morning Star Industries under their MAS contract 47QSWA20D002D, in accordance with FAR 8.405-4.

Any quote submitted by Morning Star Industries will be reviewed to ensure pricing and terms are in accordance with their MAS contract.

In accordance with FAR 8.404(d) Pricing, GSA has already determined the prices of the supplies and fixed-price services under Schedule contracts to be fair and reasonable. However, the Department of Defense (DoD) has issued Class Deviation 2014-00011, dated March 13, 2014, whereby the Contracting Officer (CO) is responsible for making a determination of fair and reasonable pricing for orders and/or BPAs using the proposal analysis techniques outlined in FAR 15.404-1. The Government will be utilizing at least two (2) methods by which to determine pricing submitted by Morning Star Industries to be fair and reasonable. These techniques include, but are not limited to the following:

● Requesting recent commercial and Government sales history

● Direct competitive pricing comparisons

● Making indirect pricing comparisons to:

o the same or similar items in the marketplace, o competitive published price lists, and o Independent Government Estimates.

6. A DESCRIPTION OF MARKET RESEARCH CONDUCTED AMONG

SCHEDULE HOLDERS AND THE RESULTS OR A STATEMENT OF THE

REASON MARKET RESEARCH WAS NOT CONDUCTED:

The market research conducted by the Contracting Officer and information submitted by the client for review indicates that only one (1) source is available. A Request for Information (RFI) was issued on GSA Ebuy on 3/26/25 to identify potential sources with the expertise, capabilities, and experience to provide the chemical modification the client has requested. The RFI closed on 4/2/25 with only one response from Morning Star Industries LLC, who is the authorized distributor for the manufacturer Aurorium. Morning Star Industries LLC, currently holds a 10 year contract, 47QSWA20D002D.

Utilizing the MAS contract is advantageous over going open market because the MAS contract streamlines the procurement process, saving time and resources. Additionally, agencies can easily find and purchase a wide range of products and services from pre-vetted vendors. Further, the products and services on MAS contracts are pre-negotiated which ensure agencies receive fair and reasonable prices. Aurorium has been approved by the client and has gone through the lengthy pre-qualification process of meeting MIL-DTL-82669B standards. Further, market research indicates this requirement has historically been acquired through a sole-source procurement due to the specific MIL-DTL Standards necessary for processing this chemical into propellant. No other distributors of Dibutyl Sebacate (DBS) found on schedule meet the required MIL-DTL standards. This acquisition will require a Notice of proposed Contract Action (NOCA) IAW FAR 5.201(b)(1)(i) that shall be issued 15 days prior to solicitation.

7. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION

None.

8. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE

RESTRICTED CONSIDERATION BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES IS MADE:

Morning Star Industries is currently the only source capable of meeting the Government’s needs.

Prior to any subsequent procurement, the Government will once again review the market using various methods to assess whether any other qualified sources are available and are able to meet the Government’s requirements.

TECHNICAL/REQUIREMENTS CERTIFICATION:

On behalf of the Requiring Agency, the undersigned Client Agency Technical Representative hereby certifies that the sole source award to Morning Star industries LLC is the only source capable of providing the required components that will meet the minimum needs of the Government and the basis for the justification is complete and accurate to the best of my knowledge. Further, I understand the facts I have presented will be solely relied upon to make the determination to limit competition and sources for this procurement.

I certify that the supporting data under my cognizance, which is included in this justification, is accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER CERTIFICATION AND APPROVAL:

The contracting officer has determined that the appropriate actions taken under this acquisition meet the conditions described in FAR 8.405-6(a)(1)(i)(B). The information contained in this justification is accurate and complete to the best of the Contracting Officer’s knowledge and belief.

APPROVALS:

HEAD OF CONTRACTING ACTIVITY CERTIFICATION:

I, the approving authority, determine that the circumstances identified in this document are accurate; therefore, limiting competition to one source under 8.405-6(a)(1)(i)(B) is justified. The signature below also represents approval of this Limited Source Justification.