4.0 CM21152002 JA Addendum SPE7MX21R0126 CA EFILE.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7MX21R0126

DLA Land & Maritime Justification for Other Than Full & Open Competition (October 2020)

[ ] ORIGINAL

[ X ] ADDENDUM (attach copy of original J&A for add-ons or revisions) Changes are highlighted in yellow

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN Cage / P/N ADQ ADV AMC/AMSC Filter Subassembly 5915-01-614-5226 (7LLB9) 1327-113 253 $ 188,211.76 3 / C Governor, Diesel 2910-01-571-1364 (7LLB9) 8270-1096 30 $ 38,827.80 3 / D

The Federal Supply Code (FSC) for NSN 5915-01-614-5226 is 59 (Electric and Electronic Equipment

Components), the commodity class of this item. This item used on several weapon systems for Combat ships – Littoral, Ticonderoga, Arleigh Burke Class DDG, WASP Class LHD and Tarawa Class LHA.

The Federal Supply Code (FSC) for NSN 2910-01-571-1364 is 29 (Engine Accessories) the commodity class of this item. This item is part of Weapon System Code C7N – Navy Expeditionary Programs. This Navy Program supports the U.S. Navy fleet by developing, delivering, and sustaining affordable, lethal combat capability. They also support the fleet in all efforts relating to documenting capability requirements, keeping abreast of enabling technologies, developing sustainable materiel solutions to address capability gaps, developing acquisition plans to close gaps, while delivering total life cycle systems management. There are seven primary programs: Expeditionary Basing, Tactical Vehicles, Mobile Mission Support, Construction Equipment, and Industrial Production & Handling.

The proposed action is for the solicitation and award of a firm fixed price Indefinite Delivery Contract (IDC) consisting of a two-year base period and no option periods . Each NSN will be evaluated and awarded separately, meaning this solicitation may result in two contracts – one for each NSN. Based on market research and each NSN’s estimated value, CLIN 0002 for NSN 2910-01-571-1364 is set-aside for small business.

The estimated contract values are listed below:

Total Annual Demand Value (ADV) $ 227,039.56 3-year value (No Options) $ 681,118.68 Maximum Contract Value $ 1,134,605.08 Minimum Contract Value $ 2,270.40

4. The statutory authority permitting other than full and open competition is:

[X] 10 U.S.C. 2304(c)(1) - Available from only one or a limited number of sources.

The supplies needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

c013059 Highlight

NSN 5915-01-614-5226 Woodward (7LLB9) P/N 1327-113 NSN 2910-01-571-1364 Woodward (7LLB9) P/N 8270-1096

NSN 5915-01-614-5226 has an AMC/AMSC code of 3/C.

NSN 2910-01-571-1364 has an AMC/AMSC code of 3/D.

The use of the authority cited below:

AMC 3 - Acquire, for the second or subsequent time, directly from the manufacturer.

The use of the authority cited is based on:

AMSC 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. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

A review of the document availability code reveals that the drawings for this item cannot be made available to the public and manufacturer Woodward (7LLB9), a large business, is uniquely qualified to manufacture this item because they are the only owners of the technical drawings and data.

AMSC D - The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid.

For this NSN, Woodward is the only source that has the data to manufacture this product.

Past contracts have been awarded to either the approved source, Woodward, Inc., or dealers. The nineteen recent contracts have been awarded using the Government PACE system.

On April 4/2021, the Product Specialist certified the AMSC/AMC codes for both NSNs, stated that there are no pending 339s, and had exhausted all means to obtain a technical data package to manufacture either of these items.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

The acquisition will be synopsized 15 days before the solicitation is posted. The solicitation will be posted for 30 days.

A Sources Sought notice was posted on betaSAM.org from 4/22/2021 to 4/28/2021 with no response received from an interested vendor(s).

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable. This will be a two (2) year, firm fixed price commercial Indefinite Delivery Contract (IDC). Competition between dealers is expected. Certified Cost or pricing data will not be required since this is under the TINA threshold IAW FAR 15.403-4. A subcontracting plan will be required if a large business provides an offer IAW FAR 19.704(a)(9).

Other than certified cost or pricing data may be requested to determine price reasonableness. The Pricing office may be utilized to review pricing at time of evaluation.

8. Market Research/Efforts to Obtain Competition:

Market Survey [10 U.S.C. 2304(f)(3)(D)]:

A market survey was conducted between 3/30/2021 – 4/5/2021 and 4/22/21 - 4/27/21.

Total number of vendors contacted: 4 Names of vendors contacted:

Woodward, Inc. (7LLB9) Large business, sole approved source Kampi Components (7Z016) Small business dealer Peaker Services, Inc. (9L007) Small business dealer Drake Controls, LLC (3CVX9) Small business dealer

Techniques used to conduct survey:

Each vendor was emailed a market survey, spreadsheet, and information about cost data.

Types of information requested:

Size of business; # of employees; Dealer vs. Manufacturer; interest in a long-term contract – and the length of contract; commerciality of item(s); participation in providing cost data; any production limitations – i.e., minimum delivery quantities, phased delivery etc.

Buyer of record sent out follow up emails to the vendors that did not return the original market surveys sent out in March.

Summary of information received:

Kampi Components (7Z016) A Small business distributor/dealer of 50 employees and has provided this material in the past. Kampi is interested in a LTC for this NSN. Kampi stated that they are agreeable to the three-year base with single options years and did not have an “ideal/preferred base period”. Kampi indicated that they would be able to provide certified cost data and have provided it in the past. They would be able to provide data from their subcontractors and the actual manufacturer. Kampi indicated that these items are not commercial, there are no minimum delivery order quantity/dollar value for the NSNs and no known production limitations. Kampi did not return the spreadsheet.

Peaker Services (9L007) is a small business dealer/distributor of 75 employees, who has also provided this material in the past. Peaker is not interested in an LTC at this time, because of the current Covid situation- “The cost and delivery estimation at this time is unreliable at best”. They did not recommend an ideal time frame for an LTC, but stated that Woodward, the approved source, would not quote pricing for a 2-year time span. Peaker will only quote the one time buys or IQC contracts of one year or less. Peaker indicated that these items are commercial and provided invoices to their customers. Peaker indicated that there are no production limitations or minimum delivery orders. Peaker returned the spreadsheet with estimated delivery days for each

NSN.

Information received regarding the commerciality of the item(s):

An internet search did not reveal this NSN for sale on any GSA schedule. DLA Value Management Operations (VE) verified that there are currently no projects for this NSN.

The Contract Specialist and the Product Specialist could not find any evidence that these Woodward parts are available for purchase on any websites, indicating commercial off the shelf. The Product Specialist tried numerous times to contact Woodward to obtain information to establish commerciality but did not receive any response. With out information from the approved source, the Product Specialist could not find any similar items for comparison to determine either NSN “commercial of a type”. At this time both NSNs are non-commercial.

9. Additional facts supporting other than full and open competition are:

Based upon the technical certification on file in DLA Land and Maritime – VEP technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

10. A listing of sources, if any, indicating an interest in the acquisition is:

Kampi Components (7Z016) Small business distributor/dealer Peaker Services, Inc. (9L007) Small business distributor/dealer -

11. The following actions are being taken to identify additional sources:

Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items All previous contracts were under Simplified Acquisition Procedures (SAP) and a J&A was not required.

The Government will continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for this item to be competitive.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $750,000, this signature serves as the approval.

Brandy Warner / Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature

WARNER.BRA

NDY.DANIELL

E.1251897880

Digitally signed by

WARNER.BRANDY.D

ANIELLE.1251897880

Date: 2021.07.28 09:21:37 -04'00'

SHEARER.

MARY.E.12

50702449

Digitally signed by

SHEARER.MARY.E.

1250702449 Date: 2021.07.28 13:00:21 -04'00'

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[ X ] $750,000 to $15,000,000 Competition Advocate

Attachments:

#1 - tech certificate for NSN #2 – tech certificate for NSN